Case Study on Operations Research Paper Example | Topics and Well Written Essays - 1250 words

Case Study on Operations - Research Paper Example Entrepreneurship generally entails the process where individuals with high aptitude undertake to pioneer change thus producing, improving, and increasing wealth. Such individuals are usually discouraged and held back by the uncertainties and risks that are involved with pioneering change. In this case, insurance companies come in handy to bear the risks involved with pioneering change at a reasonable premium and thus influencing entrepreneurial attitude, innovation, and investment. Establishment of businesses with new ideas is risky to businesses, since it involves pioneering investments into unknown ventures that may turn out to be either a gain or loss. Although there are outstanding entrepreneurs in the society that can bring about huge economic advancements, entrepreneurial capability exists among all human beings and it would therefore collectively build the economy, provided insurance services are availed for the unlimited risks that exist in the business world (Tiwari, 2007, p .171). Entrepreneurs undertake to insure themselves against risks involved with their ventures through entering into insurance contracts where they service the insurance with periodic premiums. Through insurance, entrepreneurs can venture into investment with a positive attitude and pioneer innovations irrespective of the risks involved. Innovation is the process of creating products, services, and technology in new and creative ways, which contributes towards solving business problems (Jolly, 2003, p.6; Bessant and Tidd, 2007, p.19). Although all human beings have entrepreneurial skills depending on the society and the environment in which they are brought up, very few individuals get to venture into entrepreneurships due to the fear of risks involved. Risk avoidance largely contributes to economic underdevelopment and thus insurance companies play a key role in fostering economic development through insuring entrepreneurs against business risks. Through insurance companies, entrep reneurs have the opportunity of transferring the risks the face through insurance policies that cover losses incurs by entrepreneurs incase of risk occurrence. However, more to insurance policies businesses have opportunities of transferring risks to other business participants such as the suppliers, customers, and even landlords. Businesses often face the risk of customers returning goods previously sold, to transfer this risk, the business may restrict return of goods thus avoiding costs of returned merchandise (Ramsey and Windhaus, 2009, p.134). Insurance companies generally influence investment and economic development, considering that good ideas for new companies can come from anyone who seeks solutions to existing problems faced and does not have to bear business risks involved (Read et al. 2011. p.12) Q2. Casualty and property insurance and life insurance largely contribute to the stability of consumption among citizens since they have confidence in future consumption risks. Consumers who fully insure themselves against unforeseen future financial challenges that may arise have the tendency to consume more in the present and thus, the economy of the country as a whole is stabilized. This is in consideration of the

Strategic management Essay Example | Topics and Well Written Essays - 750 words

Strategic management - Essay Example Thus, it has become imperative for airliners to re-engineer their operations to fit the requirements of strategies like low-cost and differentiation. According to the Porter’s five forces model, the industry situation has led to a decline in the attractiveness of the industry for new entrants. These new entrants would come up with some sort of an edge to beat the entrenched airlines of the industry. The industry is also overseeing a period in which the bargaining power of suppliers and customers both are high. Customers are demanding additional benefits at low cost, whereas suppliers like Oil companies are seeking high prices for fuel. The dynamics of the industry are such that the rivalry amongst competitors is high. Since the customer base has shrink as a result of the world recession, therefore airlines are competing to attract customers towards them by offering differentiated services. Moreover, recent investment by the government on the infrastructure of railways and road network has lead to a situation in which threat of substitute is high for this industry. The results of these two strategic analysis tools show that the airline industry is overseeing a period of unprecedented level of competition and operating environment. Therefore, each airliner needs to come up with operational excellence that allows it to run low cost operations, which has become imperative for the industry participants. How the Airlines are maintaining low cost operations: Airlines, which have adopted a low cost operational mode, have been very stringent when it comes to spending their resources. They have expanded their operations in to new regions only when they were confident that they had the resource to support this initiative. These carriers never go into a head-to-head battle with long distance carriers. Moreover, these airlines try to keep their debt position very strong by not taking too much debt to fund their fleet operations. These airlines have designed an operat ional method that allows them to be short haul, high frequency, and low fare and point-point carriers. In addition, these air carriers have identified a market niche that is a best fit to their style of operations, which enables these airlines to serve them efficiently and economically. Most importantly, these airlines have ripped away the costs associated with extravagant customer servicing. Such costs are associated with frills, lunch and ticketing material. All such costs have been taken away from the operations of these airlines. Conclusion: Harsh economic conditions coupled by rising cost of fuel have made it imperative upon airlines to streamline their operations. Airlines have to come up with a cost structure that is effective and efficient. This cost structure should be incorporated in the operational design of these airlines so that the airline can generate profits from its operations. In this regards many airlines have adopted a low cost strategy under which they have take n certain actions that have been discussed above. Strategic Evaluation of the Strategic Options for Future Growth for the EAI Companies: Recent economic crisis have led airliners in a messy situation. These airliners are now facing a situation in which they have revenues declining at an exponential rate. Moreover,