Light and colour

Are cardinal in the manner we Light and coloring materials have the ability to hold a profound consequence on the we perceive and synergistic with our environment, set uping us holistically, in head, organic structure, and spirit. Changing the manner we experience infinite, altering our perceptual experience of spacial definition and proportion. Light and color service as mediums for communicating and information. They aid orientation and influence motion ; differentiate infinite, set up hierarchy and indicate map ; conveys symbolic messages ; they are an look of the Zeitgeist and link us to the universe in which we live. Light and coloring materials have major impacts on our psychologically act uponing our emotion, feeling and making associations, physiologically impacting on our wellbeing on both a ocular and non ocular footing.Piturity secretory organ etc. ?One would normally tie in the above entirely with the sense of sight but both light and color induce synaesthesia, arousing associations with senses such as gustatory sensation, odor, kinaesthesia, temperature and harmonizing to some even consequence our perceptual experience of clip. The manner we comprehend and experience visible radiation and color it more complex than a simple optical stimulation. Our perceptual experience is a consequence of interplay of both physiological and the psychological factors in the witting and subconscious. We have many prepossessions and prepossessions and visible radiation and coloring material which can be formed through personal experience, be a consequence of cultural influences and/or eduction or be portion of familial make up, developed over 1000000s of twelvemonth of development. There are six basic interdependent factors which combine to give us are perceptual experience of visible radiation and coloring material, biological reactions ; the corporate unconscious ; witting symbolism and association ; cultural and idiosyncrasies ; tendencies, manners and manners ; and personal relationships and factorsBiological Chemical reactionOur biological reactions occurs non merely as a consequence of the ocular tract. Light and therefore color aslo consequence us a through nervous tract or ‘energitic ‘ tract. Through the energietic tract visible radiation and coloring material stiumli are carried straight to the encephalon and onto the pineal and putrity secretory organs, which control the production of endocrines. This in bend can consequence the likes of, metamorphosis, blood force per unit area, emphasis and aggression.The Collective Unconsciousthe corporate unconscious refers to perceptual experience which is non rationalised by our witting ideas or our ain personal experiences. Harmonizing to Jungian psycholgy â€Å" the corporate unconscious is the portion of our psche that has nil to make with witting or unconscious reaction based on personal experience amessed during our life clip † The corporate unconscious consists of architypes, aboriginal and latent images, feelings and associations, in our gentic do up. Sensitivities devloped thorugh 1000000s of old ages development and the development of our species and do us to construe the environment in same manner our predecessor The writers Hall and Nordby depict it as: â€Å" the corporate unconscious is a reservoir of latent images, normally called aboriginal images by Jung. Aboriginal mean the ‘first ‘ or the ‘original ‘ therefore the aboriginal image refer to the earliest development of the mind. Man inherits these images from his hereditary yesteryear, a past that includes all of human ascendants every bit good as his prehuman or carnal ascendants. † add more?Conscious SymbolismFunadmental associations and feelings made in the witting. There are many associations to certain coloring material with are universally, and are read the same no affair the civilization or eduction, for illustration xanthous with light, bluish with the Sun and green with nature. The symbolism of the visible radiation and coloring material can be particulary important in the field of architecture due to there connects to arousing temper and feeling. Light and color suggest heat or imperturbability, alter one perceptual experience of whether a room is friendly, etcCultural influencesAlthough there are many coloring materials associations which are cosmopolitan, we must besides see how different civilization have different associations for some colorss. For illustration Japanese civilization tends to be more antiphonal to softer colorss, prehaps this relates to a greater grasp of materiality. Indian civilization on the other manus has a greater affinity to loud, bright and graphic color. There are besides certain colorss which gain greater significance in a certain coloring material. An illustration of this is the spiritual importance of green in Islam.Tendencies Fashion and StyleOur reading and perfernces of coloring material can impact by what is in trend at a peculiar clip. Tendencies in the reinforced environment tend to alter on a less regular footing than in other. Although responsing to tendencies in designer and interior design may non ensue in making the most good environmets as different enviroments have different demands, tendencies can be of import in bring forthing a sense of zeigheist. Such as?Personal Relationships and FactorsOur relationship to infinite is extremely influenced by personal and subjective factors such as personal dispostion and specific personal experience, for illustration one would normally tie in blue with imperturbability but if burnt by a bluish object may bring on an connexion to heat. Other personal factors can alter perceptual e xperiences of light coloring materials include sensitiveness, age, character and disposition and are physical and psychological brand up. Colour psychological science can be separated in to interlinked subdivisions, applied color psychological science and ‘depth color psychological science ‘ applied color psychological science is the 1 that by and large applies to architecture. It deals with the execution of the preset psychological effects to make a spacial atmosphere to bring forth psychical benefits therefore physiological benefits, or to convey a specific imagination. More?Symbolism and imagination of visible radiation and coloring material.â€Å" For it is through symbols that adult male finds his manner out of his peculiar state of affairs and ‘opens himself ‘ to the general and the universal. Symbols awaken an single experience and transmit into a religious act, into a metaphysical comprehension of the universe † – Mircea Eliade For 1000s of old ages natural visible radiation has been used for its powerful associations, for early adult male light held more significance than possibly any other clip, it was the giver of life and revered to the extent of idolizing the Sun. Its significance nevertheless has diminished particularly since the invasion of unreal visible radiation Light can be regarded as metaphorical in raising ideas of another topographic point or impression. It can be symbolic, stand foring something else frequently that which immaterial such as eternity, and frequently symbolic of that which we do non to the full comprehend. Light has the quality to bring forth a power passing province of being.For nexus to times season Zeitgeist?Dark is besides of import in this experience non merely as a contrast excessively dark but in its ain symbolism and representations, and the provinces of head it creates, the deficiency of light suppress the ocular, rising the other senses. Strong darkness presents the unknown taking to provinces of apprehensiveness, malaise and even to phobia. The interplay of light and dark can take to the the creative activity of contemplative or theatrical visible radiation. Luis Barragan advocates the usage of what he calls half-light â€Å" designers are burying the human demand for half-light the kind of visible radiation that imposes a tranquility, in their life suites every bit good as their sleeping rooms†¦ we should seek to retrieve mental and religious easiness and to relieve anxiousness, the outstanding feature of these agitated times, and the pleasances of thought, working, discoursing are heightened by the absence of glowering visible radiation † One of the few civilizations in which the design of such environments is prevailing is in Nipponese traditions. Quotation mark for in congratulations of shadows and illustration? Another manner to make topographic points of contemplation is to utilize diffuse or baffled light, bring forthing a degree of uniformity â€Å" contemplation is nourished by the deficiency of distractions †Metaphorical LightMetaphorical visible radiation extends the function of light beyond that of merely of disclosure, it denotes light that is used to raise a visions of a different vicinity, for illustration its can be used to as a representation of nature, film overing boundaries giving one the feeling that they are non in a interior scene. The usage of metaphorical lighting is vivid in the plants of artist Edward Hopper. In his painting New York Movie, Hopper uses contrasts in visible radiation to distinguish between the fanstay universe of the theater and the world in which the Ussher carries on with her mundane life. Steven Holl? Symbolic visible radiation is used as a representation of the immaterial and the discorporate, beyond that which is portrayed by the metaphorical, complex impressions such as life and decease. An powerful illustration of this is the Vietnam War commemoration in Washington D.C. The names of the dead are inscribed in the mirrorlike granite surface of the wall. The ever-changing contemplations of visible radiation and the environing remind us of our topographic point and temporal natural in this universe and therefore our mortality. For 1000s of old ages light has been associated with the religious aspects and seen as the manifestation of deity and the ethereal. Since prehistoric adult male visible radiation, the Sun have been connected to the scared, prehistoric worshipped the Sun physique memorials align to its summer solstice to honor it, as this was when its was its most powerful. Tombs were besides built with mention to the Sun, frequently align to confront the Sun rise on the summer solstice. The visible radiation of a new twenty-four hours and the lifting Sun gave hope of an after life â€Å" the natural linguistic communication of light and dark is a powerful one with which to show architectural significance † Specific coloring material besides hold symbolic associations. Many of these are reasonably obvious, nevertheless these initial associations over clip have lead subsequent associations or can take on bring on different connexions. The corporate findings from a figure of experiments have shown that many are cosmopolitan nevertheless there may be little fluctuations in different civilizations and faiths. Associations have from human experience, traveling all the manner back to early adult male. As discussed above aboriginal images etc have been stored in the human genome yesteryear on from coevals to coevals and contribute to our color perceptual experience. Eckart Heimendahl suggests that our color perceptual experience develops from three types of symbolism: ritual symbolism, traditional symbolism and aesthetic-emotional ( psychological ) degree symbolism, which fuse to give us our experience of coloring material â€Å" one of the most dramatic characteristics of the consequences refering perference, intension and colour-mood associatations is the consistancy from one person to another, from group to group and cross-culturally. There has been a great figure of cross-cultural surveies comparing topics in America, Lebanon, Kenya, Botswana, Greece to advert a few. Monkeies have been compared to Man, work forces to adult females, kids to grownups, layperson to designers. As another writer concludes, it would bespeak either that our heritage is such that we learn right responses, or that there is some unconditioned temper reaction to different colourss † ( Kuller 1981 p.164 ) The message a color conveys and therefore it psychological consequence is dependent on colorss chromaticity and the environment in which it sits. Even the slightest alteration it a hue nicety can change its significance. The materiality of the coloring material besides plays a important function in this procedure, which will be discussed subsequently. The followers will give and over the imagination and messages that the outstanding chromaticities are affiliated to. Red is a warm, exciting coloring material with both positive and negative associations. It positive intensions include the aforesaid heat due to its connexion to fire, every bit good as passion, strength, activity and love. Its more negative associations include fury and aggression, fierceness, although these have served a intent throughout history. An illustration of this in military, where red was used to alter head sets and convey a aggression. Red besides represent blood, which to some may portray an unfavorable message, can besides stand for life. This is possibly linked to early adult male who may hold concluded that blood gave life after seeing blood leave the organic structure a slaughtered quarry.Love?Red is the dominant and attending catching coloring material as its focal point point is behind the retina which give the feeling that it is stick outingpink?orange is a mostly positive coloring material and is by and large considered to hold really few negative intensions. Although less self-asserting than ruddy its is still vivacious and energetic, with lighter tone being heartening. Orange besides has connexions to nature reminding us of fall and sundowns. Brown is a darker tone of orange which once more has strong connexions to nature, motivating ideas of the Earth. As it is earthly is suggest security and stableness. However certain shadiness of brown may be less pleasant and drab and even depressing. Yellow is considered to be the ‘happiest ‘ coloring materials due to it aglow and beaming nature and therefore it tends to raise 1s liquors. Possibly its is most powerful and religious association with the Sun, and hence with visible radiation and life. Yellow was besides the coloring material of quicksilver in, best known for being the courier of the God, but was the God of commercialism and net income, every bit good as the God of the traveler, therefore xanthous can stand for religious enlightenment. Green focal point exactly on the retina and therefore is the easiest coloring material on the oculus. As a consequence viridity is loosen uping and reviewing. One of green major associations is nature and vigorous growing. Early rites were based around the exuberant viridity of flora and therefore is a symbol of nutrient and life, and as a sequel in Christianity represents hope and immortality. Green besides has important spiritual value in Islam where it is regarded as a holy coloring material. In blunt contrast certain fluctuations of green can convey a message of mold and decay and as a consequence decease. Depending on its place between xanthous and bluish viridity has different consequence, a green closer to yellow will look to be more stimulating where as blue green appear ice chest and more tranquil Blue like green is loosen uping and retiring, but appear cooler than green although darker tones appear to experience heater. Materialtiy besides affects its comparative heat, a dark blue, thick rug will non arouse a cold feeling. Blue induces feelings of composure and as a consequence contemplation and due to its obvious connexion to H2O bluish gives expresses cleanliness. However if non used right bluish can be cold and dejecting every bit refered to in the phrase â€Å" I have the blues † . Bluess symbolism has a figure of cultural fluctuations. In Rome blue was the coloring material of a philosopher robe and reflected wisdom. In China bluish symbolises immortality and sanctity to Hebrews.purple/violetwhite symbolises many positive things, architecture it prompts a sense of openness and freedom, a white infinite will ever experience more expensive, nevertheless if the part of white is to greater it gives a sense of emptiness. From a multi-discipline position, white conjures images of cleanliness, pureness, artlessness and peace. In Asia white is the coloring material of mourning but in a positive manner, as the believe that decease on this Earth is the beginning of a better life.blackGreyOver and under stimulation In footings of of both physiological and psychological factors the balance of stimulation is of import in supplying the right environment. Both over-stimulation and under-stimulation can hold inauspicious affects on our wellbeing and the overall feeling of a infinite. For an environment to be most good a balanced assortment should be kind. â€Å" Balance is the securing of integrity thick assortment. Both assortment and integrity are required to prolong involvement, and these opposing forces must be balanced. Assortment is necessary to pull and elicit involvement ; integrity is indispensable to make a favorable feeling and desires. Variety overdone is confounding and unpleasant. Unity overdone is humdrum. The grade of coloring material agreement is cognizing where to halt between these extremes † Exposure to an excessively complex visually helter-skelter environment or highly monotony, whether it be through coloring material, form or contrast can consequence us physiologically by triping alterations in rates of external respiration, blood force per unit area and pulsation, therefore lead to increased emphasis degrees Over stimulation can bring on an addition in musculus tenseness and is believed to increase 1s susceptibleness to infection which can take to ulcers and coronary disease. Surprisingly dull under-stimulating environments can do additions in bosom rate. With no external stimulation one becomes more cognizant of there interior ego. Capable to persons mentally and nature if their idea, this can take to fear, anxiousness and hurt. On a psychological degree an under stimulating and therefore centripetal lack scene is known to take to a deficiency of concentration, restlessness and crossness. Under stimulation can besides take to perceptual experience upsets. â€Å" It can non be stressed plenty that the balance between integrity and complexness is the first and most of import regulation in the design in good environments † However in certain state of affairs it can be the interior decorator nonsubjective to make infinite which are under exciting. It infinite may be design as a religious and brooding infinite which encourages one to look inside themselves for enlightenment†¦ To understand the extent of visible radiation and colorss consequence, we must see it on its ain every bit good as the how it reacts and relates to its environment. Our knowledge of visible radiation and coloring material can be mostly influenced by how they contrast with there surroudings. There a figure of different contrast relationships which alter the manner perceive and distinguish:Light-Dark ContrastIn its simplest footings this is the contrast between light and shadow. But can besides mention the to difference between elation of colorss, but the contrast is most outstanding in the neutral i.e. when no chromaticity is involved. Light dark contrast can be utile for distinguishing infinite. However excessively great a contrast will do ocular weariness and strain.Chromatic-Achromatic contrast.Uniting the chromatic with the neutral will change the sensed strength and brightness of the chromatic coloring material. White and gray niceties weaken a colors brightness and therefore can be used to neutralize. On the other manus black addition a colours brightness.Complementary ContrastComplementary contrast occurs between two coloring material whic h are every bit different as possible, location straight face-to-face on a coloring material wheel. Each complementary contrast has its ain alone characteristic. For illustration a contrast between orange and bluish gives the greatest warm-cool definition and a yellow-violet contrast give the most intense light-dark contrast. Effect/importanceIntensity contrastDescribes the contrast between colorss of the different impregnation. Intensity contrast is best used when a when little sum of pure coloring material are used as an speech pattern amongst muted colorss, which give a peculiar characteristic accents while keeping the complete atmosphere of the infinite.Measure ContrastQuantity contrast is the relative relationship between the colorss in a infinite. The proportion of a peculiar coloring material dramas major function in set uping spacial definition and feelingFlicker Contrastlicker is a over stimulating contrast, happening when intense colors with similar elation or darkness are combined is a infinite. This type of contrast shows that the color has non been considered suitably, spark contrasts should be avoid. There are two other physiological contrast which besides need to be taken into history when measuring the impact of coloring material, consecutive contrast and coincident contrast. Coincident contrast is the phenomenon where by a coloring material will be perceived otherwise with a different foreground, background or environment. For illustration if a impersonal Grey is place on a environing coloring material background the Grey will look to hold a intimation of the complementary coloring material of the background coloring material. The perceive alteration is non world but is a consequence of 1s ‘colour esthesis ‘ . Coincident contrast does non merely impact chromaticity and impregnation but besides brightness. For illustration Grey will look lighter against a darker background Consecutive contrast is a phenomenon where by if one is subjected to a coloring material stimulation for an inordinate sum of clip an ‘after image ‘ of its complementary coloring material will happen. For illustration if one stares at a ruddy surface for a drawn-out period of clip so look at a white surface, the white surface will look to be bluish green. This ‘after-image ‘ is believed to be the consequence of weariness. The affect is impermanent but nevertheless can be upseting. e.g. ? â€Å" The physiological world is that the oculus requires any given give coloring material to be balanced by its complementary, and will bring forth it if it is non present. Complementary colorss besides provide psychological balance to warmth and imperturbability of coloring material. † The after image is a physiological consequence which indicates than utilize us of complementary colorss the the most effectual manner of making a harmonious infiniteSynesthesiaSynesthesia ( Greek, syn= together + aisthesis= perceptual experience ) is a neurological status in which the stimulation of one centripetal mode evokes a experience in another mode, or the crossing of two or more sense. Light and color non merely excite the sense of sight but arouses esthesiss in many other of the other senses through ocular and non ocular agencies.Percept of weightas a general regulation darker and more concentrated colors will look to be heavier and more dense than lighter and less concentrated colors. Warmer colors will besides look heavier than the ice chest ice chests if the same chromaticityPercept of volume and distanceThe lighter a infinite is the more unfastened it will be perceived to be therefore a infinite will look to hold a larger volume than a dark infinite. Within a infinite ig niter colorss, ice chest colorss and little forms will look to withdraw. With darker or more concentrated looking the protrude therefore doing distances seem shorter.Percept of temperatureit is widely believed that visually, coloring materials can change our perceptual experience of whether a room is warm or cool. Since the formation of the hypothesis several experiments have been observed which seem to turn out what was thought. One such illustration is described by Johannes Itten in his book The Elementss of Colour, is experiment illustrates a important difference in the temperature at an single felt cold in different colored room â€Å" Residents of the bluish green felt that 59 grades Fahrenheit was cold, where as the temperature had to fall to 52 grades Fahrenheit in the reddish-orange room before the topics felt cold † grounds from a corresponding Norse survey drew a similar decision, in which subjects set a thermostat four grades lower in a ruddy room compared to a bluish room. However trial besides showed that the consequence where merely impermanent and after a period of clip the effects begin to decrease.Percept of Taste and OdoursCertain colorss can arouse associations with gustatory sensations or odors. Colorss such as lavender, pale yellow and pink have pleasant associations with odor and colorss such as coral, soft yellow and visible radiation viridities are associated with pleasant gustatory sensations. These associations can be utile in industrial state of affairs to assist better unpleasant environmentsPercept of SoundGestalt psychologists such as Heinz Warner, Krakov, Allen and Schwartz have produced grounds that strong smell and gustatory sensation can change our perceptual experience of coloring material. It is suggested that strong gustatory sensation and smells make us more less sensitive to ruddy and more to green. On a similar note through coloring material association can be used to countervail loud environments. For illustration one may mentally link extremely concentrated warm coloring material with being loud, cool and low saturated coloring material holding the opposite consequence, therefore cool or low saturated coloring material can be used to assist countervail noisy environments â€Å" a noisy ambiance will be experienced subjectively as nosier or more annoying if pigment with glowering yellows or reds. Shrill and high pitched sounds may be offset by olive viridity †Percept of TimeSome research workers believe that visible radiation, coloring material and form can change our appraisal of clip. One theory is that subdued, humdrum infinites cause one to overestimated clip. Possibly this is related to boredom and under-stimulation. It is a common construct that clip passes more rapidly when 1 is basking themselves.Light, coloring material and our perceptual experience of infinite.â€Å" Space remains in limbo without light. Light ‘s shadows and sunglassess, its different beginnings, its opacity, transparence, translucence and conditions of contemplation and refraction intertwine to specify or redefine infinite. Light topics infinite to uncertainness, organizing a sort of probationary span through Fieldss of experience † – Steven Holl The manner we use and perceive a infinite is greatly influence by visible radiation and coloring material along with the factors described. Above the have the ability to specify boundaries and differentiate infinites. They provide orientation and consciously and unconsciously impact how we move through a edifice. Furthermore due to the synaesthetic esthesiss they induce as described above, visible radiation and coloring material alter the sensed dimensioning of a infinite. â€Å" Space, as we experience it in architectural scenes is a consequence of our full perceptual system. One sees the environment non with the eyes but with eyes-in-the-head-on-the-body-resting-on-the-ground † As we have found out light and shadow can be a powerful tool with which to uncover significance. However they besides play a major function in specifying our sense of infinite, if we manipulate light we alter our perceptual experience of architectural infinite. Before construction, walls, ceiling and floor, it was light which estbalished boundaries. At dark a ‘room ‘ for early adult male was defined by visible radiation admitted by fire, the appendage of which came when visible radiation faded into darkness.

Rapport created in Chicago speech by Barack Obama Essay

In this study I will be analysing the speech of Barack Obama in two different contexts. The first speech is his victory speech in Chicago on the 4th November 2008. The second is his campaigning speech in Iowa. These speeches depict Obama in both a formal and less formal situation. It is important that we realise that his strategies have changed. Barack Obama creates rapport with the audience during his victory acceptance speech in many ways. He creates an immediate bond with the audience as he begins his speech by saying, â€Å"Hello Chicago!† He then pauses for a minute in order for the citizens of America to welcome him as the USA’s president. Then he addresses the people who had not voted for him because they thought he was not capable of leading America and then thanking the thousands of voters that gave him his victory. The effective line â€Å"tonight is your answer†, uses personal pronouns to engage the audience and involve them in his success. Obama thanks his â€Å"partner†, this shows the close friendship between himself and his colleagues before thanking his own family. This shows the gratefulness towards the Americans for making him president. The president begins to talk about his own life, â€Å"the love of my life†, allowing the citizens into his own world. This shows him as being very humble and creates rapport as it shows that there were lots of people behind his own success and in order for America to be a success, the citizens will be there for her. In the victory speech, Obama refers to situations that allow a connection between himself and the audience as he uses phrases such as â€Å"on the train home† proving that he too is an ordinary man like the rest of them. However he also refers the patriotic past of the United States of America. Barack Obama often uses powerful visual imagery and metaphors in his victory speech. Earlier on he uses contrast and personal pronouns to rely on him. â€Å"We are not enemies but friends†. This allows the American population to feel involved and make them feel as if they do have a say in the way the country is run. He also talks of Ann Nixon Cooper who at the point that this speech was told was 106 years old. Like himself, she was a black woman who saw the changes in the running of USA, making it personal. He also talks about many famous women and men who had changed history for example, â€Å"a man {who} touched down on the moon†, â€Å"a preacher from Atlanta†. It is evident that he wishes to be remembered throughout history not only as America’s first black president but as someone who made â€Å"America †¦ change†. This short sentence emphasises the fact that he would be a great president. An antithesis is used to show that he can make a difference, â€Å"the heartache and the hope†, although this is contrast and alliteration, the soft sounds of the â€Å"h† sanctions the words to roll on the tongue to put their confidence in their new president. The constant repetition of the phrase â€Å"Yes we can†, creates rapport with the audience as it goes through their mind that the president on the stage will unite everyone and change everything for the better. The citizens then begin to chant along with Barack Obama. It is evident that the citizens have trusted the man to improve the quality of life in America. Obama attended this speech with formal attire, a black suit and a red tie to represent as he has transcended in politics, he no longer represents just the Democratic party but everyone so he has chosen to wear a patriotic colour that symbolises the whole of USA. It also shows him to be a powerful and bold man. His hair is short, clean shaven and perfect yet it looks natural allowing the population to see him more seriously. In the background there are waving American flags, a patriotic sign there is also a stage separating him from the population proving that he is more powerful and has to look down at them, priority. Barack Obama did not slouch in this speech, he did not lean against the podium however he does stand straight to look more focused and makes many hand gestures although they are restricted when he is trying to put a point across as well as having a clenched fist when he wants to look serious and emphasise a point that he has made seeming confident. An interesting point is that during this speech Obama does not hesitate at all as if he has had faith in him winning therefore he has practised it many times in order to ensure that it was perfect. However it was not the same in his campaigning speech in Iowa closer to the time of the election. We know this because he is extremely exhausted and tired. Here there is a small audience in the gym who are trying to decide who to vote for in the coming election (2008).He makes this speech to persuade them to vote for him. Although the president (a senator at this point) wears a suit with a red tie he seems to be more uncomfortable as he is shown to be scratching his face and unbuttoning his shirt as it may have been slightly putrid in there as it is a gym. He turns around often as he is in an uncomfortable position, he is in the centre of a circle where it is difficult for him to make eye contact with the audience. Obama tries to create rapport with the audience as he takes the opportunity to make a joke however when no one laughs he accredits it to his wife, Michelle Obama. He hesitates and makes lots of pauses often. The reason for this may be that he had forgotten what he was meant to say, he had not rehearsed anything or that he was tired. Barack Obama does create rapport by using an anecdote to allow the audience to enter his personal life, â€Å"we were still living in a condo. â€Å"It was a little bit too small for the kids† showing that he does understand the lives of many American citizens. He realises that the audience in the gym are middle aged, adults with a young child. As he addresses the fact that he did not know how there were going to get money â€Å"for college for the girls† as well as â€Å"save for †¦ retirement†. This proves that he has done his research and knows his audience well as he talks about their concerns. Obama does not show himself to have confidence and faith in himself as he says, â€Å"I think that if you trust me then I think I’ll deliver for you.† He appears very colloquial as he has abbreviated the words ‘I will’ to â€Å"I’ll†. It is not effective as he tells the spectators that he â€Å"think[‘s]† that he will be a good president.

Case Study, Amazon: From Book Seller to Service Provider Essay

Niklas Zennstrom stated: â€Å"When we look at investing, we always think about ‘how defensible is this, how likely is it that somebody is going to copy this. ‘ E-commerce tends to be something easy to copy because it’s execution. † Amazon is the world’s largest online retailer since the company opened in the garage of Jeff Bezos’, and its yearly are over 10 billion dollars. Many companies subsequently have copied Amazon and now compete for e-commerce profits; therefore companies like Google and Microsoft become an issue for Amazon. This has instigated Amazon to develop products for other e-commerce businesses, and now Amazon offers business- to -business e-commerce. This paper will discuss whether Amazon is moving away from its core competency of a leading online retailer, and if this is a wise strategy. A brief description of the Amazon database, how Amazon uses each component, and what data management issues may be encountered by Amazon, the relationship between data, information, and how Amazon tackles each will be included in this paper. To survive the invasion of companies like Google, Amazon has resolved to supply a series of computing, storage and other services that make its infrastructure available to businesses and people to assist them administer the technological and logistical parts of their company. Amazon only uses 10 percent of its processing capability, and offering these additional services will not impair other segments of the online retailer. This is a move away from its core expertise; however, this is a shrewd decision on the part of the Amazon Company. This strategy allows the company to boost earnings by using resources already on hand. This is similar to a landlord deciding to rent out the empty apartment as a storage unit, because it was not used by a family. The space was already there the landlord just found a new use for the vacant space. The Amazon database is made up of the Simple Storage Service (S3), the Elastic Compute Cloud (EC2), and the Mechanical Turk. These services programs are an attempt by Amazon to be a principal competitor in the next development of the Internet. The Simple Storage Service allows businesses to warehouse data and applications on Amazon disk drives at 15 cents per gigabyte per month. For 10 cents an hour Amazon offers processing power on the Elastic Compute Cloud which is the same as one rudimentary server. The Mechanical Turk is the most complex of the three Amazon database components, and is commission based. Rainer, Turban wrote in the: Introduction to Information Systems: Supporting and Transforming Business, 2nd Edition, that the: â€Å"Mechanical Turk service combines processing power with networks of real people who are paid to do the kind of work that machines cannot do well, such as recognizing inappropriate content in images or transcribing audio. Companies post pieces of work onto the Mechanical Turk and pay people online, for which Amazon receives a 10 percent commission. † The data management issue that might be encountered by Amazon is how much space they can rent out before it takes away space and time from the online retailer system. A second issue would be what Amazon must do when Google and Microsoft start to copy and develop similar products at a lower price. Amazon concentrate on declining sales by increasing its productivity to ensure investors will see the profit growth they expected form the online retailer. Amazon decided to offer services that no other online retailer provided and this is how they tackled all their current issues. Amazon is helping thousands of companies store and debug their data information, therefore all three programs can be used together by a client to store e-mails after they check them for malware, and see what keywords draw prospective consumers to their sites. I think Amazon will succeed goal to revolutionize retailing as long as they understand how to adapt quickly in business.

Importance of Management in Civil Engineering Essay - 1

Importance of Management in Civil Engineering - Essay Example Management is a leading science domain and routine in managing building companies. It is one of the oldest human activities; it activates human abilities on building investment objects in order to assure necessity for civil engineering purposes. It is good enough reason to take place in management development in civil engineering. As there are too many definitions of management depending on an author, only the most important are offered, namely the most acceptable in civil engineering domain. Remarkable attention is given to managing tasks in civil engineering as well to their correlationsIf we speak about management in civil engineering then the total quality management must be proposed. Total quality management is a business philosophy and accessible way of modern companies around the whole world. It is the most contemporary idea of developing and advancing in all life and work domains. The growing urge of efficient use of the earth's resources such as land, air, water and raw mate rials as well as concentration on efficient design, analysis and maintenance of civil structures requires a better insight in the spatial and temporal patterns of resources and activities (Bean, A.L., 2007). In view of the fact that the parameters of civil engineering today are not only confined to design and construction of structures but due to globalization and privatization of civil engineering organizations now civil engineering emerges as a study, which not only pay attention on construction.

Article Reviews for Theory and Practice of Mediation

Reviews for Theory and Practice of Mediation - Article Example They also gave their insights on its effectiveness & their views on the future of the Cape Cod National Seashore. The strength of this article is how organized it is. The paper has headings and subheadings for each aspect they talked about. Even a person new to the process of mediation will be able to understand this article. The simplicity of the vocabularies used also helped in this regard. The only problem I see in the article is how lengthy it is. Certainly, the descriptions and organization in the writing helped in understanding it. However, because the whole article, excluding the annexes & bibliography, is 15 pages long, a reader may lose interest in the middle of, maybe, A Historical Perspective. Personally, I don’t think this part is even helpful in explaining the value of conflict assessment to stakeholders. This article also presents the results of a research. However, unlike the first one which centered on the process of negotiation, this paper focuses on the parties involved in the conflict. Attention is focused on how the level of information mediator’s have on the issue affects the disputants’ perceptions & behaviors. Instead of an actual situation, this research is based on experiments with variations on the mediator’s recommendations and the information given to disputants representing how much mediators knew about the disputants’ needs and interests. The introduction explains: a) the mediation process, b) the relation between the mediator’s credibility & their level of insight on the dispute, and c) the hypotheses to be tested. It goes on to describe the different elements of the experiment & the results. The paper also gives the writer’s recommendations on similar future researches. For the discussion and concluding part, the article ex plains why peer mediation, such as someone in the company

English Essay Example | Topics and Well Written Essays - 250 words - 45

English - Essay Example The dyadic personality is the main concept that defines the first century personality. A dyadic person functions based on honor and shame, which are both related to what other people are thinking. During the first century, being common and conforming to the norm is the important and proper character. One possible reason why the first century people detest uniqueness is based on the example that every person is a representative of his or her particular group, either family or community, thus needed to be giving the right impression at all times due to the lack of ways of international communication that can introduce people to other parts of the world. This is contrary to the 21st century attitude which promotes individuality and uniqueness. In the modern world, each person’s character is important, one example is that manufacturers of different products want to get to know individuals to produce that they want. There are significant differences between the first century people represented by the dyadic Mediterraneans and the 21st century people represented by the Americans. The primary character is the high value of conformity or being common in the first century person and the high value of individuality and independence in the 21st century person. Authoritarian attitude is also the main leadership trait in first century person world while democracy is more popular for the 21st century person. A first century person perceive attitude as a rule and segregation factor thus he or she would not dare mingle with people of different status. On the other hand, the 21st century person does not believe that status should define a person; people are still people no matter the status. In the first century, honor is defined based on 3 factors that are considered to define the whole social construct during that time namely power, gender status and religion. Honor is a claim or an access so a level of worth in the society. Like wealth it can be achieved

Law Enforcement Investigators (Traditionalist vs. Revisionist) Assignment

Law Enforcement Investigators (Traditionalist vs. Revisionist) - Assignment Example The traditionalists, on the other hand, have dismissed revisionists as using dubious means to undo the work of revolution. Both schools of thought, ideologies can be useful in the implementation of the law. When analyzed, they can tell how investigation officers who ascribe to either of the two paradigms have portrayed these ideologies in solving criminal cases. The traditionalist school of thought is important for various factors. One is that it helps to appreciate the knowledge of previous generations. By using this approach, law enforcement agents can find a way to finding a solution to a criminal situation. Another advantage is that traditionalists appreciate that even though people from previous generations were not as technologically advanced as those in the present generation, progression patterns can be seen. This is because even though inferior to the present generation, they were superior to those that came before them. This approach helps in analyzing details so as not to miss the point that was missed in previous events. This approach can, however, be detrimental because the circumstances that were there in the past could be different in present cases. Another disadvantage is that with improved technology, the way to solve problems today is through the use of better technological tools to help analyze present cases. This theory is advantageous in that it puts into place the facts and circumstances of the time. The benefit of this is that all scenarios will be considered before taking a certain direction during criminal investigations. Another advantage is that it looks at a particular even not as though it was inevitable due to past occurrences, but as one that happened due to circumstances just prior to the event. It is necessary to look at a particular instance, independent of other historical chains of events, but overlooking such matters can be detrimental during investigations. There could be different sides of the story.  

TOXICOLOGY Essay Example | Topics and Well Written Essays - 2000 words

TOXICOLOGY - Essay Example These compounds are notorious for their health hazards. Most of the health effects are due to inhibition of cholinesterases (Kamanyire and Karalliedde, 2004). Other than this, inhibition of other enzymes and individual susceptibility also play a role. The compounds are highly lipid-soluble and can be absorbed from any route like skin, conjunctiva, mucus membranes, gastrointestinal tract and respiratory tract. The onset of illness, severity and duration of each phase of illness depends not only on the type of the OP compounds to which the individual has been exposed to, but also the dosage of exposure, route of exposure, characteristics of the cholinesterase enzyme, rate of metabolism in the body and the physico-chemical properties of the compound. Cholinesterase plays an important role in the cell-to-cell communication and is present in several parts of the body like blood, nerves, neuromuscular tissue and glandular tissues. Inactivation of acetyl cholinesterase causes accumulation of acetyl choline in ganglia and synapses leading to various clinical problems (Kamanyire and Karalliedde, 2004). Exposure to these OP compounds leads to triphasic illness in human beings. The first phase is the cholinergic phase. In most of the exposed individuals, only the cholinergic phase may be observed. This is followed by an intermediate phase in 20 percent of the cases, followed by a final phase. The initial 2 phases are associated with mortality and morbidity, while the final phase is not associated with mortality and may not be preceded by the initial 2 phases (Kamanyire and Karalliedde, 2004). In the acute cholinergic phase, accumulation of acetyl choline in the muscarinic sites leads to bronchoconstriction, increased bronchial secretions, increased gastrointestinal motility, vomiting, bradycardia and blurring of vision due to miosis. Accumulation in nicotinic sites like the neuromuscular junction results in flaccid

Homeland Security Assignment Example | Topics and Well Written Essays - 500 words - 1

Homeland Security - Assignment Example The need for enhanced air security was discussed and the result was the passing of the Aviation and Transport Security Act. This was passed to create transportation security administration. This outsourced to the private stakeholders in the field and it was aimed at ensuring that there was a synchronized security system that would not be beaten by terrorists. Passenger and luggage screening was enhanced and made more thorough at the airports to ensure that no weapon goes through unnoticed. Another notable change was in the government as many organizations sprouted while others reorganized themselves after the scare to be able to handle such cases better in the future. The passing of the Patriot Act was seen as a move to ensure that the people were living harmoniously and therefore preventing a repeat of the attack. In the immigration and tourism sector, a notable change was detected especially with the limiting of Visas given to citizens of various countries. Looking at the changes, it is evident that the attack enhanced the tightening of security in the various dockets that can be used to harbor criminals or let them into the United States. The security of a countries borders is very important when it comes to the safety of the citizens. It’s through the porous borders that criminals or counterfeit products and illegal goods are smuggled into the country. While dealing or discussing the issue of security it is important to look at the role of technology in ensuring that the borders are not porous and criminals are kept at bay. One of the important things to note is that the borders also act as important economic gateways between the retailers in the neighboring countries. Looking at the United States, the shared border with Canada and Mexico alone is about seven hundred miles.

Police Pursuits Essay Example | Topics and Well Written Essays - 500 words

Police Pursuits - Essay Example It has also come into light Police Pursuit driving is about a thousand times more risk-prone than normal driving, which is why it is being perceived as quite hazardous to both, the public and the police officers, themselves. In Ontario, Canada, a separate law exists for prescribing the code of conduct, as well as the rules and regulations for Police Pursuits. This has been done to get the whole concept of Police Pursuit in the right spirit and to use it as a tool to safeguard the lives of fellow road-users and not vice verse! An instance to support the fact that police pursuits need to be regulated and made safe can be cited at this point. A police officer chased a driver who violated rules, collided into a truck carrying explosives. He, therefore, exposed the lives of numerous fellow travellers to risk, apart from his own life. Such incidents need to be avoided at any cost. Firstly, it is prescribed that police officers need to use sirens and other flash lights to alert the public about the pursuit and to help them avoid danger or collisions of any sort, especially in 'hazardous' pursuits. Secondly, numerous recommendations hav

Knowing Your Audience & Communication Release Assignment

Knowing Your Audience & Communication Release - Assignment Example In the case of the mining accident, it is clear that the families of the victims would be suffering from acute emotional trauma. They want as much information as they can but are afraid of receiving any devastating information. When writing for the families of victims, the journalist should stick to the pertinent details and should provide as much accurate information as he can. Also the writer should not mention any gory details that would further disturb the families at this time. The tone should be emphatic and the language needs to be simple and clear. Another kind of audience in the case of the mining accident is the employees that work in the mine. These employees have to be notified since they have a right to know about the accident and are losing confidence in the organization’s safety measures. In this case, the writer should strive for honesty. The facts should be accurately presented and employees should be aware of the reasons behind the accident. They also have to be reassured that accidents happen in most organization s and often even the best safety measures fail. The tone of the message should be neutral and honest. Since the employees are aware of the technical terms, jargons could be used. Following a cave-in of the San Josà © copper mine located in northern Chile on August 5, 33 workers have been trapped in the mine. The owner of the mine Minera San Esteban along with the government have immediately opened rescue attempts through drilling holes in the mine, located 300 meters underground. On account of the immediate rescue attempts being installed, it has been expected that the trapped workers will be rescued within the shortest period of time. In this moment of pain, the President and the entire community of Chile wishes to extend support and sympathy to the family. It is understandable that the

Stages of Ego Development Essay Example for Free

Stages of Ego Development Essay The first phase of Jane Loevinger’s ego development is called the Impulsive stage. Though this is the known period for toddlers, individuals can be in this phase for a great deal longer, and in reality a certain amount of individuals stay in this impulsive point the their whole life. At this point a person’s ego maintains to be centered on physical emotions, central desires, and direct wants. The second phase is called the Self-Protective stage. This phase is commonly associated with a person’s middle childhood. The self-protective ego is more cognitively refined than the impulsive ego, although they are still using a better consciousness of reason and result, of regulations and penalties, to acquire what that person may want from others. As a result, are more inclined to be oppressive, scheming, and self-indulgent. The third phase is called the Conformist stage. The Conformist ego is extremely devoted in fit in to and gaining the appraisal of significant groupings, such as peer groups seen in most schools. This stage is normally associated to the age group of individuals going into school. These people tend to see and assess who they are based on exterior matters like looks and status. The fourth phase is called the Conscientious/Conformist stage. This is the phase where most United States adults fall into. The conscientious/conformist ego illustrates an amplified but still incomplete understanding of profounder matters and the internal life of whom they are and who other people are. The fifth phase is called the Conscientious stage. At this stage, the inclination in the direction of self-assessment and self-analysis carry on. The sixth phase is called Individualistic stage. This stage is where â€Å"the ego develops a greater tolerance for the individuality of others and a greater awareness of the conflict between heightened individuality and increased emotional dependence.† (Pinel, J.P.J. 2008. p. 377). The seventh phase is called  Autonomous stage. â€Å"The autonomous (I-5) stage of ego development emerges with the capacity to cope adequately with the conflicts of the individualistic level. The person at this level reveals tolerance for ambiguity and high cognitive complexity.† (Pinel, J.P.J. 2008. p. 377). The eighth and final phase is called the Integrated stage. It is said that this stage is the hardest to achieve. During this stage, self-actualization manifests. The individual has genuinely developed and come to terms with their own identity. References McAdams, D. P. (2006). The person: A new introduction to personality psychology. (4th ed.). Hoboken, NJ: Wiley.

Tourist Beach Resort For Extreme Sports Tourism Essay

Tourist Beach Resort For Extreme Sports Tourism Essay Architecture now days have become very utility oriented due to constraints of the current times. Practicing and producing functional architecture is not at all wrong but the word function itself is very involuntary. Just like machines which are proficient to do and achieve tasks for which they are programmed for but those performed tasks are impassive. One cannot develop any sense of belonging to a space or architecture unless there is something more than function involved into it which provokes the human senses and is capable of fluctuating human emotions and feelings. This thesis is conscious attempts to create functional architecture while keeping in mind the human emotions and sensory intensification. The basic objective is to create spaces which are not categorized by its volume and magnitude rather they should be acknowledged by their spatial experience. These types of experiences are critical particularly for such kind of building program involving leisure of tourism and extre mity of action sports. Incorporating human sensorial characteristic will not only augment the user experience but it will also increase the architectural character of spaces. INTRODUCTION http://2bawards.us/wp-content/uploads/2010/12/extreme-sports.jpg Man is a social animal. This is a clichà © but explains most of the social requirements and demands of human race. Socializing is not just about human interaction with each other but it is also about how a person interacts with and relates to his or her environment. For most of the people an environments starts to become suffocating if they happen to experience the same thing over and over again. Man needs change. It may not be a unvarying or permanent change but the human psychology demands change for some time at least. This type of design project and building typology is most suitable to explore the impacts of architecture on human emotions and moods and then apply it on spaces and over all architecture. As a tourist resort is a kind of a place where people actually come to relax, rehabilitate their energy, enjoy and experience something different. On the other hand extreme games also involve a lot of human emotions like anger, anxiety, fear etc. So for application of the respective research, in my opinion, this building typology is one of the most suitable. Man has managed to come up with many ways to cater to his needs of changing and environment. He called it recreation and leisure. There are two types of leisure: Passive leisure (minimal physical involvement) Active leisure ( optimal physical involvement) Both type of leisure facilities will be a part of program. The facility will incorporate the following: Water sports Extreme games Beach resort Others 1.1-Architecture and psychology: In day to day life we experience different type of situation causing different types of mood swings in us. These experiences come as a surprise to us most of the time. When we get out of our routine and go to an exhilarating activity like some excursion or some stimulating sports we tend to pre determine our moods. We try to be happy and feel happy along with many other positive emotions like thrill, excitement, positive anxiety etc. This can be translated into architecture by incorporating an over lapping field of neurology and studying impact of architecture on human beings. In my understanding architecture and building can be perceived in two ways: Interactive architecture. Interactive architecture is very much program dependant. The practical aspects of the buildings are fulfilled and users movement and functions are catered then its an interactive building. At the most five human senses are considered while designing. Active architecture Every form, space, color, space quality has certain impact on human brain when it interacts with 5 senses.-this is where interactive architecture ends. So we can say every space , form, color has an action on a user . A person reacts to it and hence EXPERIENCES THE TRUE SPIRIT OF THE SPACE. 1.2-Objectives and aims: To enhance architectural experience through sensory fluctuations (Anxiety, Calmness etc) in user using spaces, space formation, colors, textures, heights and other architectural elements. To translate the dynamics of extreme sports in the building form. To provide a platform to people to enjoy and experience such activities for the first time in Pakistan. 1.3-Need Of the project: Help in catering and improving the tourism infrastructure of the country. Studies show that if such spaces and activities are not provided to the youngsters they can indulge themselves in negative activities.(explained further in the next heading) Required in the urban fabric infrastructure of the second only city of Pakistan which is being master planned and this type of activity place has already been marked by the development authorities. Why do people play extreme sports? To get the answer to this question two qualified psychiatrists from CMH were interviewed namely D.Sana Naimat and Dr.Imtiaz Mubasshir.According to them people who are bored of life usually need a kick though everybody has a different genetic structure. They tend to have a reckless behavior if they require a change and they dont get it. Endorphins (hormones which actually makes a person feel good about his own self) are released at a certain heart rate after a person gets a kick according to his or her own genetic structure but usually the kick is in the form of an extreme behavior ,be it ecstasy, suicidal behavior or extreme sports. People tend to deal stress in different patterns usually by changing their environment. Sometimes these patterns are adaptive and sometimes these are maladaptive. So it can be concluded that extreme activities on the whole are a part of human nature and many human beings have the urge to do it in order to act normal and stay calm in daily life. Clients brief: For this project the client is The Ministry of Sports and Culture , Government of Pakistan along with a multinational company. At present Red bull in collaboration with Yamaha and Caterpillar showed interest in the project and presented a feasibility report to TIE. Project Supervision: This project is to be executed in the 3rd phase development of Gwadar which will take place around year 2030. Currently the first phase is almost complete in which the road and other infrastructure of the city is laid out. In 2nd phase utility oriented facilities are to be planned and constructed and in 3rd phase recreation and large scale institutional projects are to be developed and constructed. The client is Ministry of Sports and Culture and it wishes to create a platform for action sports in Pakistan where main and major extreme sports can be played and experienced on one platform under one roof. The project would be under the supervision of GDA(Gwadar development authority). The client wants to execute this project in Gwadar because multinational companies find the projects adequate for the city because of its thriving and hopeful future prospects. USER: The target user for this project is the youth and tourist of the country who enjoys scenic views, nature, and adventure, and likes to deal with challenging situations. Social Objectives: The intent of this project is not only to promote this new form of sports but also to promote and facilitate the tourism of the country. Gwadar has deep sea port and when it will be properly and fully functional it will eventually attract tourist from all over the world and this type of project fits and compliments the urban fabric of the city. It will also become a social spot for the city and the locality. The site falls in the tourism zone (according to the master plan of Gwadar) of the city and this area will become a focal point of tourism and recreational attraction not only for the citizens of Gwadar but also for people coming from other areas and countries. The main aim is to summon the youth under a roof to experience thrilling sporting activities in safe and monitored environment under proper supervision. By providing safe environment accidents can be avoided which happen because of the reckless behavior of youngsters seeking thrill on roads. Different level zones are provided for amateurs and professioals so that every adult and child can enjoy the facility according to his or her potential. The thrill seekers will not have travel to different places to enjoy the thrills of rock climbing on mountains or to the sea shores to enjoy water sports, people no more need to go to urban centers to enjoy the street sports like skate boarding and bmx stunts. This facility has it all under one emblem. Other than generating tourism and sports activities it will also help in strengthening local economy. These sporting events bring all sorts of people together and hence it helps developing some cultural trends and it also helps in promoting a countrys image in this age where world is now a global village. Site Location: Site is location on the Shore of Gwadar Sea in the tourism development zone. Site is towards the west of Koh-e-Batil and on the south of Pishukan road which leads towards the pishukan town towards padi zar. Feasibility: In the current scenario the trend in the world and specifically in Pakistan is to develop lavish real estates. A project like this are part of overall development and compliments the current trends of real estate development. In the pursuit of profitable development, leisure and entertainment has to be catered for. There is a high need of development of places for healthy communal activities for the public, specifically the youth of Pakistan to bring out their full potential. Scope of work: Developing a master plan. Experimenting with different type of spaces in order to facilitate different emotional and sensory experiences of a person. Other than the feasibility of the project according to the social context, this project is also a live project and is a part of the master plan of Gwadar developed under the supervision of GDA (Gwadar development authority) . Gawadr , A broader perspective Gawadar is said to be the next mega polis of Asia .Its warm waters and other potentials are reason for its hardcore progress. Gwadar is spread over an area of aprox.1.52 million hectares or 15,216 square kilometers. Gwadar is surrounded on the north by Kech and Awaran districts, on the east by Awaran and Lasbela districts, on the south by the Arabian Sea, and on the west by Iran. Geographical position of Gwadar has major standing in the global trade routes. Sea routes leading to Gulf estates and eastern hemisphere of the world passes along Gwadar. Gwadar has all the distinct elements required for this project. It has a very massive water front which is a fatal requirement of this project. It also has scenic views all around it which can be very nicely incorporated into a tourist resort. 8.3-Land Use, Master Plan Phase-I GDA Description Land Allocation Land for Residential Projects 90,500 Acres(Extendable) Land for Commercial Projects 2100 Acres (Extendable) Land for Recreational Projects 13,500 Acres(Extendable) Land for Industrial, desalination plants, Airport, Railway Linkages, and Urban facilities.45,000Acres(Extendable) *Source: GDA As it can be seen in the master plan that the area selected for the project is near to the area allocated for tourism development. It is an advantage which will be fruitful for the facility. In their report about Gadar SMEDA (Small and Medium Enterprises Development Authority) states: District Gwadar as a coastal area has rich marine life and present viable opportunity for ecotourism. The district has untouched clear beaches which can be an attractive place for tourism. Kund Malir, Daraan, Asthola Island, beaches of Jewani, Guns and Ormara are some of the most beautiful tourist beaches. Asthola Island is located at a distance of 150 kilometer from Gwadar tehsil. It is an internationally recognized wetland and has numerous species of aquatic creatures. Hingol National Park is the largest natural forest of Asia, coastal highway run for 55 kilometers in the scenic mountains of this natural forest. Hingol National Park is also one beautiful tourist sight Wild life creatures like tigers, Ibex, goats and monkeys are found in this sight. At present, 6 hotels and resorts are operating in Gwadar, a major break through in hotel and tourism industry is the construction of a 5 start Zaver Pearl Continental Hotel at Koh-e- Batill, opposite to Singhar Housing Scheme in Gwadar. Potential exists for development of tourist resort and motels, seafood restaurants, country parks and beach sports recreation facilities. Ecotourism sector can be developed to its potential in Gwadar district as the number of tourist from Islamabad, Karachi and Lahore has remarkably increased due to the construction of coastal highway. There exist a very good opportunity for setting up country parks and other recreational facilities at Gwadar, there is great gap of amusement facilities in Gwadar, and the population requires recreational facilities, easy to mobilize large number of visitors to the facility and spending capability of people of the area. 8.4-Road Network: The creation of the Gwadar deep-sea port is now one part of a larger growth plan which includes construction of a system of road and rail network linking Gwadar with the rest of Pakistan, like the 650 km Coastal Highway to Karachi and the Gwadar-Turbat road (188 km). This system of roads links with China via the Indus Highway. 8.5-Development Projects Oman Oman has proposed $100 million support for the growth of community and infrastructure amenities in Balochistan. From that $100 million, Oman has given $7 million for the runway at Gwadar Airport, building of jetties, constructionof Gwadar Hospital, stipulation of 100 engines to fishermen and for building a power house. Oman is also sponsoring infrastructure of Gwadar-Hoshab Road. 8.6-Air Port: Gwadar has a huge airport for commercial airlines. There is a need for the extension of the airport and improvement of its landing strip to accommodate the landing of larger commercial aircrafts. 8.8-Strategic Importance of Gwadar: C:UsersAdministrator.Admin-PC.001Desktopthesissite1.JPG

History and Analysis of Singapore International Airlines

History and Analysis of Singapore International Airlines Introduction SIA traced its roots to an organization called Malayan Airways that offered its first commercial passenger service in May 1947. Today, SIA is Singapores best-known company, and rated consistently as Asias most admired company(Asian Business, 1997,p. 24). Its smiling, willowy cabin attendant, outfitted in tight batik sarong kebaya designed by renowned fashion house Pierre Balmain, and marketed as the Singapore Girl, is now a well-known international service icon. In 1994, the year she celebrated her 21st birthday, the Singapore Girl became the first commercial figure to be displayed at the famed Madame Tussauds Museum in London. Madame Tussauds had unveiled the waxwork of the SIAs global marketing icon that year to reflect the ever-growing popularity of international travel. SIA is widely reckoned by those in the airline industry, travellers as well as its competitors, as one of the very best airlines in the world, judging from the numerous industry awards it has won. According to the Business Traveller Asia Pacific, SIA has become the standard by which all other international airlines are judged (Business Traveller Asia Pacific, 1997a, p. 3). SIA also consistently leads the industry in profitability and rides through rough and turbulent times much better than most of its rivals. It has had an impressive and continuous profit streak since it took to the skies some 25 years ago; a track record almost unheard of in the brutally cyclical airline industry (Asian Business Review, 1996, p. 34). On 1 May 1997, SIA turned 50 and celebrated its Golden Jubilee Anniversary in grand style. It was a far cry from its humble beginnings in 1947 when it started life as part of Malayan Airways. The International Airline Industry The airline industry had traditionally remained fragmented primarily due to the limiting effects of national and international regulations. Enforced in the form of landing rights and associated competitive constraints, even large airline companies had only been able to develop dominance over their own regional markets at best. With the exception of the United States, dominant national flag carriers, typically owned by the national governments, had remained the only international representatives of their countries. However, the competitive dynamics in this industry had started to change dramatically in recent years. Deregulation, privatization, and the advent of new technologies have started to reshape the industry on a global level. The United States deregulated its airlines in 1978 and had since witnessed heightened competition and aggressive jockeying for market position. Europe entered the throes of a similar escalation of competition following the creation of the European Union a nd the disbanding of country-specific barriers to free market competition among air carriers. In Asia, deregulation occurred in fits and starts with some major regions allowing greater access to foreign carriers. For example, India, a regional market of some significance, announced that it would privatize its state-owned airline company. It had already allowed its traditionally domestic airline to compete against its international air carrier in many of the regional markets comprising neighboring countries. Japan made major strides in deregulation after selling off its shares in the then state-owned Japan Airlines and permitted All Nippon Airways to serve international markets. In Latin America, many of the smaller national flag carriers were privatized. Countries such as Mexico and Argentina infused significant levels of market competition in their airline industries by removing anti-competitive barriers and privatizing their national airlines Mexicana and Aerolineas Argentinas. The trend seemed certain to gain further momentum and open skies might be closer to reality than ever before. The major European nations were already in discussions with the United States to implement an open Trans-Atlantic market area where landing rights would be determined by free market forces rather than regulatory policy. Open skies agreements are bilateral agreements between countries that agree to provide landing and take-off facilities for air carriers originating in any of the partner countries. Such an agreement does not have the typical restrictions related to landing rights that are determined on a city-pair basis. For example, Singapore and the U.S. had signed an open skies agreement under which a Singapore carrier could travel to any destinati on city in the U.S. and vice versa. The twin trends of privatization and deregulation resulted in an increasingly global approach to strategic positioning in this industry. Although most large carriers still retained their regional dominance, many forged alliances with other leading carriers to offer seamless services across wider geographic areas. These alliances made most of the larger airline companies de facto global organizations. With increasing geographic reach and decreasing regulatory barriers, many of the regions were witnessing acute competition often in the form of fare wars. Consumers in general became much more price sensitive than ever before. In attempting to keep up with the competition, many carriers upgraded their service offerings contributing to declining yields in a price-conscious market. Chronic excess capacity worldwide only exacerbated this situation. Not surprisingly, there was a decline in passenger revenue yield in all geographic regions and the airlines were fighting an uphill battle to ex tract higher levels of efficiencies from their operating structures. For example, passenger yield dropped by 1.9% and 2.5% in 1998 and 1999, respectively, in Europe and 0.8% and 1.5% in North America during the same period. The drop was far more geographic region-wise summary of key trends in passenger traffic, growth potential, and major players follows. (Source: Annual Reports and HSBC Research.) Asia-Pacific Region By 1999, traffic in the Asian region had become quite important to the overall success of the air transportation industry. Collectively, this region represented 24% of worldwide revenue passenger kilometers. The ICAO estimated that the Asia-Pacific region had grown annually by 9.7% over the last ten years. This upward trend was expected to continue albeit at slightly lower levels, moderating between 6%-7% until 2001. Trans-Pacific traffic was expected to grow at 6.6% and intra-Asia-Pacific traffic by 5%. Some analysts predicted that Asia would play a key role in over half of the top twenty international markets ranked in terms of revenue passenger miles by 2002 The aviation market in Asia, while similar to Europe of the pre-EU era, did indeed have some dominant players. Japan Airlines and Singapore Airlines were the clear leaders and together accounted for 40% of the market share. The second tier included Cathay Pacific, Thai, and Korean Air, which comprised 33% of the market. Asian carriers in general had significantly lower operating costs compared to their American and European counterparts. For example, in 1998, according to Warburg, Dillon Read, personnel costs for North American carriers accounted for approximately 32% of total revenues. For European carriers, it was 21%. However, for the Asia-Pacific carriers, it was only 17%. Most of the Asian carriers also had much higher labor productivity levels and lower unit labor costs than airlines in North America or Europe. This location-specific advantage was a primary reason why carriers from other regions were setting up significant hub operations in the Asia-Pacific region. While the y ields for many carriers such as China Airlines, Korean Air, Thai, and Malaysian, the second and third tier competitors, were much lower than international levels, the top tier carriers such as Japan Airlines, and Singapore Airlines had yields consistent with their North American and European counterparts. The avenues for differentiating airline services in this region were shrinking. The elite carriers who had built a reputation for superlative service such as Singapore Airlines were now facing stiff competition from carriers such as Thai Airways and Cathay Pacific who had geared to deliver similar services. Thus, differentiation was becoming much more demanding and difficult to sustain Singapore International Airlines: Country and Company History and Culture of Singapore Singapore had witnessed bountiful growth and become the envy of many neighboring countries as it entered the new 21st century. Its per capita GNP increased by a phenomenal 75% between 1990 and 1999 and currently stood at S$39,724. This meteoric rise could be directly traced to Mr. Lee Kuan Yew, the most powerful Prime Minister in Singapores history. He was able to tap the patriotic spirit of his people when he announced his intent to develop Singapore to rival Switzerland in terms of standard of living. His emphasis on superior education standards, a controlled labor environment, significant outlays for training and development, all helped to enhance the quality of human capital. At the end of 1999, Singapore boasted a literacy rate of 93%, among the highest in the region. Singapores Confucian work ethic dovetailed very well with his ambitions. It emphasized responsibilities over rights and placed enormous value on attributes such as hospitality, caring and service. As a result of th ese efforts, Singapore, today ranked among the best countries in terms of human capital and was often rated among the worlds friendliest places to do business. Rising standards of living meant higher wages .Coupled with the small size of the local population and a very low unemployment rate (3.2% in 1998), the availability of labor was seen as a potential stumbling block in the drive toward further growth. Many of the larger companies already depended on a sizable number of expatriates from neighboring countries as well as the West to staff positions. A staunch believer in free trade and internally driven growth, Mr. Yew made it clear from the start that the world does not owe Singapore a living. For example, in the air transportation sector, Mr. Yews government declared that SIA, although the national carrier, would not receive any subsidies, protection, financial assistance, or economic benefits from the government. It would have to sink or swim based on its own resources and ingenuity. Singapore literally adopted a free skies approach whereby foreign flag carriers from other countries were welcome to serve the city-state without any restrictions. This meant heightened competition for SIA right from the start. However, the free market philosophy also resulted in sharper rates of market growth. For example, roughly 35% of the equity base of Singapore was foreign in origin, and foreign investors owned 17% of all companies in the country, both testaments to the successful programs that attracted foreign capital and commerce to the island nation. The tourism industry played a very significant role in the overall development of the country. Handicapped by the small size and the lack of natural resources, Singapore had to rely on service industries such as tourism and finance to generate growth. It had always enjoyed an enviable status as an important geographic hub dating back to the pre-British Colonization era. During its history as a British colony, Singapore provided an important stop-off point for travelers from Europe and Britain to the outlying colonies of Australia and New Zealand. Building on this historical reputation, Singapore evolved into an important Asian tourist hub The common origin and shared history of SIA and MAS In 1947, Malayan Airways was established and operated services between Kuala Lumpur, Singapore, Ipoh and Penang, using its fleet of twin-engined Airspeed Consuls. In May that year, when Malayan Airways first took to the skies, there were only five passengers onboard its twin-engined Airspeed Consul. With the flight crew having to attend to the flying of the plane, passengers had to help themselves with the only refreshment available onboard then a flask of iced water. In 1963, it was renamed Malaysian Airways Limited. In 1966, both the Malaysian and Singapore Governments acquired joint majority control. The following year, it was renamed Malaysia-Singapore Airlines (MSA) Limited. On 26 January 1971, both the Malaysian and Singapore Governments agreed to set up separate national airlines, and on 1 October 1972, Malaysia-Singapore Airlines ceased operations. In its place, Singapore Airlines (SIA) and Malaysian Airlines System (MAS) took to the skies. SIAs initial growth and expansion The split of MSA on 1 October 1972 saw MAS taking over all the domestic routes while SIA took over the international network and all the Boeing jets in the MSA fleet .SIA was government-owned, and the Singapore Government viewed the airline as an investment in a portfolio held by the republic. Although SIA was a state-owned enterprise, it paid taxes, like any other company in Singapore, and was expected to be competitive and profitable. Without any domestic routes to monopolise, SIA had to strategise to survive. Soon after the split, SIA embarked on an aggressive growth and aircraft and equipment acquisition programme. It acquired Boeing 747 Jumbo Jets, which went into service in 1973. In that same year, subsidiary Singapore Airport Terminal Services Ltd (SATS) was set up to provide ground services. In 1977, in conjunction with BA, it introduced the supersonic Concorde on the London- Bahrain-Singapore route. The maiden flight was on 10 December 1977. After three flights, however, disputes over airspace delayed regular Concorde service until early 1979. On 1 November 1980, the SIA/BA joint Concorde service between Singapore, Bahrain and London was, however, terminated. SIA began cargo service from Singapore to San Francisco via Hong Kong, Guam and Honolulu in 1978. Passenger service on the route commenced the following year. In 1979, SIA took the unprecedented action of trading in the B-747s purchased just a few years earlier for more advanced, fuel-efficient versions of the same aircraft while simultaneously expanding the fleet in a record-setting S$2.1 billion order with Boeing Aircraft. By 1979, it became the ninth largest airline in the world, up from the 57th position prior to the parting of ways with MAS, achieved on the back of a continuous average annual growth rate of 46 percent over its initial seven-year period (Harvard Business School, 1989b). SIA shares were listed on the Singapore Stock Exchange on 18 December 1985, and a new corporate identity was unveiled on 28 April 1987. On 14 December 1989, SIA concluded a major world-wide alliance with SwissAir and Delta Airlines, covering wide-ranging co-operation and eventual exchange of equity. An MOU with Cathay Pacific Airways and Malaysia Airlines was signed on 22 December 1992 to form a joint venture to develop and operate a frequent flyer programme. Passages,the frequent flyer programme, was officially launched on 1 July 1993. On 22 June 1994, SIA placed a US$10.3 billion order for 22 Megatop 747s and 30 Airbus 340-300E aircraft. The following year, on 14 November 1995, it ordered 77 B777 aircraft powered by Rolls-Royce Trent engines worth US$12.7 billion, including spares and spare engines. SIA turned 50 on 1 May 1997. It had by then grown into a diversified group, totally transformed from its humble beginnings 50 years ago. On 7 May 1997, less than a week following its 50th birthday, it took delivery of its first Jubilee B777-200, which touched down at Changi Airport. Symbolically, this ushered in another new and challenging era for SIA. The power of an idea: a most successful product/service differentiation strategy Within a year of the launch of SIA following the split of MSA on 1 October 1972, SIA began looking for new ways to differentiate itself. In 1973, SIA had in its service, some of the worlds most modern aircraft. Its maintenance operations were generally recognised to be on a par with those of the worlds major airlines. All its pilots and engineers were proficient and experienced, as there were no restraints from the unions on hiring Western crew members if SIA thought they were better. The product/service differentiation strategy that SIA finally decided upon was based on in-flight service. The strategy, as summarised by its then SIAs advertising manager, who later became its manager of in-flight services, was: What we needed was a unique selling proposition. Happily, we found it. Or perhaps I should say we found her, because the Singapore Girl has become synonymous with Singapore Airlines. SIA is an Asian airline, and Asia has a long tradition of gentle, courteous service. The Asian woman does not feel she is demeaning herself by fulfilling the role of the gracious, charming and helpful hostess. What we hope to do is translate that tradition of service into an in-flight reality (Harvard Business School, 1989b). SIA was thus strategically positioned in the premium service, quality and value market segment of the international airline industry. SIA capitalised on Oriental charm with stewardesses of Chinese, Malay, Indian, and Eurasian ethnic backgrounds. By 1997, this resource pool within Singapore had, however, expanded to include Malaysia, Indonesia, India, Taiwan, China, Japan and Korea. In 1997, a third of its 5,800-strong cabin crew were non- Singaporeans (The Sunday Times, 1997a, p. 3) SIA stewardesses were costumed in a specially designed version of the graceful Malay sarong kebaya, designed by renowned fashion house, Pierre Balmain. Passengers were treated to some of the best food on any airline, which is served with lots of warm smiles, warm towels, and attention to details. It provided first-class, business-class and economy-class passengers with cocktails, fine wines, and in-flight motion pictures at no extra charge. Since its inception, SIA has always subscribed to a policy that once a passenger pays for his or her ticket, there should be no more charges on the aeroplane. SIA now spend S$20 million a year on wines, with about 60 to 80 bottles of wine consumed per flight. International consultants who specialise in French, American and Australian wines are contracted to do wine-tasting twice a year for SIA, and they advise the airline on what to buy for its first, business and economy class passengers (Straits Times, 1997a, p. 22). According to SIA, the airlin e even receives letters from passengers asking for the names of wines that they took on SIA flights, with some asking where they can buy them (Straits Times, 1997a, p. 22). Service became the raison detre for SIA, and at the heart of its service reputation was the Singapore Girl. Slogans like A standard of service that even other airlines talk about and SIA: you are a great way to fly were used regularly in its marketing. SIA has always been of the view that the key to its success was its value or quality for the money. SIAs corporate philosophy of the airline industry since the late 1980s is best summed up by: The airline industry is, by its very nature, a service industry. In a free market, the success or failure of an individual airline is largely dictated by the quality of the service it provides (Joseph Pillay, Chairman SIA, Harvard Business School, 1989b). Most had to confront the apparent contradiction between cutting costs and prices, on the one hand, and maintaining customer focus and delivering customer service, on the other. It was a challenge many found most difficult. Into the 1990s SIA had developed a very strong market position. While keeping an eye on costs, its quality and service-enhancement strategy allowed it to command a relative market price premium position through premium service, value and quality. Its enviable position can be summed up as follows: If others resort to cutting fares, we can certainly do the same and we have a far better financial strength to cut fares and last longer than anyone else. But we ask ourselves first whether it is necessary to do that . . . So far, we have no need to do that (S. Dhanabalan, Chairman SIA, 1997, The Sunday Times, 1997b, p. 32). On competition, S. Dhanabalan reiterated SIAs long-standing strategy: Strong competition is not new to SIA. Every now and then, some airline, in an attempt to gain market share, will resort to senseless heavy discounting. It is a short term phenomenon. We take such competition in our stride (The Sunday Times, 1997b, p. 32) The Singapore Girl, the idealised version of the SIA cabin attendant, was the centrepiece in SIAs marketing strategy. Very high-quality photography was used in SIAs advertisements, and the Singapore Girl was always the central feature of the advertisements. The advertisements portrayed her in a number of settings and used a variety of themes to good effect. The Singapore Girl strategy proved to be a powerful idea and turned out to be a phenomenal success. International Research Associates (INRA), a firm which conducted surveys (covering the area of advertising recall) in the Asia Pacific area triennially, found that SIAs advertising enjoyed steady increases in unaided recall in the three successive INRA surveys in advertisement recall it conducted in 1973, 1976 and 1979. The SIA advertisement recall was 21 percent in 1973. It rose up to 32 percent in 1976, and shot up to 50 percent in.The average advertising recall of about 40 airlines studied over the same time period was only 9.6 percent (Harvard Business School, 1989b). SIAs market research up to 1997 continues to attest to this: Around the world the Singapore Girl remains a very positive marketing icon. She evokes the very best in Asian charm and hospitality (Director, Market Research, SIA, The Sunday Times, 1997a, p. 3). Although there were initial protests in some Western quarters in what was perceived to be sexist overtones in the advertisements, not everyone took offence at the advertising image. In a 1979 Fortune magazine article, Flying high with the Singapore Girls, it was noted that far from being repelled by the notion of becoming a `girl, about 7,000 young Singaporean women applied last year for 347 openings in the hostess ranks of SIA (Harvard Business School, 1989b). In the West, its acceptability in recent years had changed quite appreciably. In 1997, it was noted that: Her popularity in the West is such that it would be quite risky for SIA to attempt to change the image at a time when people there are getting used to her (Analyst, Goldman Sachs, The Sunday Times, 1997a, p. 3). Customer focus, innovation, creative service and service excellence On an SIA flight in 1996, a Chinese couple travelling in first-class with their children and nanny had refused the food served. When asked, the man of the family replied: We are just not used to these and would prefer a bowl of instant noodles. Since then, every SIA flight carries a supply of instant noodles for those customers who find in-flight cuisine not quite to their taste (Asian Business, 1996, p. 40). In addition, first-class and business-class passengers flying out of Singapore can now pre-order certain Singapore local fare prior to their flight to be served to them onboard. These are just some examples that illustrate the constant drive by SIA to introduce new ideas to improve customer service, in its customer focus to win customer satisfaction and even delight. There is of course nothing high-tech or sophisticated about instant noodles nor Singapore local fare, but these examples highlight the creative customer service even in simple things that has won SIA wide praise (Asian Business,1996, p. 40). This has become a hallmark of SIAs service excellence. In 1972, SIA was the first airline to introduce free food and alcoholic drinks on its flights. SIA has recognised that in this highly competitive market, any advantage gained by one airline over others will be short-lived, and ideas that are new will become commonplace in a matter of months. However, it noted that the important thing is to always stay in the forefront both in service and in technology (Asian Business, 1996, p. 40). This strategy of SIA focuses primarily not on reducing costs, but on enhancing quality or service and preventing customer problems from arising. SIA has succeeded most uniquely with this type of strategy in the airline industry, a strategy commonly employed in service businesses that command premium prices with high margins, businesses in which there is a high degree of repeat business, with word-of-mouth praise by customers as a most important marketing channel. It has been argued by some that an organisation should be conservative in its promises regarding service excellence to prevent customer expectations becoming too high. High expectations, so that argument goes, increase the potential for customer dissatisfaction. Such prescriptions, however, serve only companies with modest ambitions. In SIAs case, it was very different. It had a bold strategic vision and aspiration of being a top airline, not just any ordinary good airline. Through its careful market positioning and delivering its service promise, SIA could be said to be the very first airline in the international airline industry to have succeeded in developing such a powerful and enduring image of quality service that has resulted in its acquiring a sustainable competitive advantage. Its ability to sustain this advantage, even as its competitors seek to develop comparable service capability, had been buttressed by the fact that it was the first to earn and attain the quality-servic e position and image in the market and in customers minds. High service quality standards need to be developed systematically over time. Although sustaining a competitive advantage based on service quality is possible, this requires unrelenting effort on the part of an organisation to continually improve its service. This was achieved in SIAs case. As part of SIAs strategy to differentiate itself on the basis of superior customer service, it was able successfully to generate a vision of service excellence throughout the organisation. Such an organisation-wide energizing vision of service excellence is a powerful source of competitive advantage in top class service organisations. Such strength can be the bedrock of a quality and service-based sustainable competitive advantage. A service organisation that does not have such a shared vision and culture of service excellence will have a tough task acquiring it, as it cannot be bought. It must be built, as in SIAs case. In SIAs case, setting exceptionally high customer service standards generated a positive spirit and culture that had many follow-on results. Customer servicewent beyond the mechanics involved in efficiently providing a service onboard. Pride, zeal, and motivation were some of the positive service hallmarks that flowed from the shared vision and culture of service excellence, and the results were impressive. Unlike robots or machines, where differences in performance are largely rooted in technical specifications, human beings are subject to major performance variation. The SIAs vision and culture that hold exceptionally high customer service standards as a strategic objective to be attained were a most important factor accounting for its exceptional performance. To support this service excellence strategy, SIA adopts a most rigorous quality control system and process for staff recruitment and selection, as well as a rigorous training and service policy (Asian Business Review, 1996, p. 34). For example, SIA has one flight attendant for every 22 seats, the highest in the world and well above the industry average. Cabin crew must be under 26 and are employed on a five-year contract after making it through a very selective three-stage interview process that includes a social function Previously, all cabin crew would complete a six-month training course before they could be allowed to serve a customer. However, this has now been compressed into an intensive four-month course, which is still considered to be the longest and most comprehensive programme of any major airline. In comparison, Cathay Pacific, for instance, conducts only a seven-week intensive training programme on technical, safety and interpersonal skills. The aim of SIAs training is to provide gracious service reflecting warmth and friendliness, while maintaining an image of authority and confidence in the passengers minds. Each month, thousands of young ladies would apply for the airlines rigorous course that emphasizes safety training and encompasses beauty tips, discussions of gourmet food and fine wines, and the art of conversation. SIA is also at the forefront of service innovation through technology. For instance, it introduced Electronic Ticketing for flights from Singapore to Kuala Lumpur and Penang (and vice versa) on 1 October 1997. About two weeks earlier, on a flight from Singapore to Tokyo on 15 September 1997, it had launched a revolutionary innovation in in-flight entertainment with the introduction of the WISEMEN system, offering passengers full control over their viewing and listening options. With WISEMEN, passengers will be able to choose from 15 movies, 20 short features and about 50 CDs. This is over and above the current SIAs in-flight entertainment system, Krisworld, which already had 22 video channels, 12 audio channels and ten games channels. Internet check-in for First Class, Raffles Class and PPS Club Members flying out of Singapore was introduced on 20 November 1996. SIAs profitability track record Just as well-known as its product/service differentiation strategy, as well as its creative service and service excellence, but certainly less familiar, is SIAs profitability track record. Since its inception in 1972 some 25 years ago, SIA has had an uninterrupted profit track record. Asian Business Review, in an article piece on Asias Great Companies, noted that its financial track record is almost unheard of in the brutally cyclical airline industry, and touted it as the Worlds most profitable airline (Asian Business Review, 1996, p. 34). Its profitability track record is even more astounding considering that it is the national airline of a small country that is essentially just a city, of only 647 square kilometres and 3.6 million populations, with no domestic routes to monopolise. Yet, despite this it has managed to consistently deliver profits in one of the worlds most cyclical industries. SIA has an established practice of keeping its fleet young and modern (Singapore Airlines, 1997b, p. 5). This, made possible by the airlines strong cash flow position, has allowed it to maintain a fuel-efficient fleet that averages just over five years of age without resorting to heavy borrowing or costly leasing deals. The fleets of most other international carriers are more than twice as old as SIAs. SIAs fleet is in fact the youngest in the world, not taking into account the couple of small regional airlines that have just started up. For SIA, this strategy which entails heavy capital costs, however, translates to significant savings through minimising aircraft downtime and minimizing maintenance costs. Newer aircraft are also faster and more fuel efficient, and are perceived by passengers to be safer. For instance, the B747-400 is 10 percent more fuel efficient than its predecessor. For SIA, this means a significant saving as about 15 percent of the companys expenditure is on fuel (Asian Business Review, 1996, p. 34). Most airlines use a combination of different financing schemes for their aircraft with the core fleet usually on long-term leases to minimise interest costs. SIA History and Analysis of Singapore International Airlines History and Analysis of Singapore International Airlines Introduction SIA traced its roots to an organization called Malayan Airways that offered its first commercial passenger service in May 1947. Today, SIA is Singapores best-known company, and rated consistently as Asias most admired company(Asian Business, 1997,p. 24). Its smiling, willowy cabin attendant, outfitted in tight batik sarong kebaya designed by renowned fashion house Pierre Balmain, and marketed as the Singapore Girl, is now a well-known international service icon. In 1994, the year she celebrated her 21st birthday, the Singapore Girl became the first commercial figure to be displayed at the famed Madame Tussauds Museum in London. Madame Tussauds had unveiled the waxwork of the SIAs global marketing icon that year to reflect the ever-growing popularity of international travel. SIA is widely reckoned by those in the airline industry, travellers as well as its competitors, as one of the very best airlines in the world, judging from the numerous industry awards it has won. According to the Business Traveller Asia Pacific, SIA has become the standard by which all other international airlines are judged (Business Traveller Asia Pacific, 1997a, p. 3). SIA also consistently leads the industry in profitability and rides through rough and turbulent times much better than most of its rivals. It has had an impressive and continuous profit streak since it took to the skies some 25 years ago; a track record almost unheard of in the brutally cyclical airline industry (Asian Business Review, 1996, p. 34). On 1 May 1997, SIA turned 50 and celebrated its Golden Jubilee Anniversary in grand style. It was a far cry from its humble beginnings in 1947 when it started life as part of Malayan Airways. The International Airline Industry The airline industry had traditionally remained fragmented primarily due to the limiting effects of national and international regulations. Enforced in the form of landing rights and associated competitive constraints, even large airline companies had only been able to develop dominance over their own regional markets at best. With the exception of the United States, dominant national flag carriers, typically owned by the national governments, had remained the only international representatives of their countries. However, the competitive dynamics in this industry had started to change dramatically in recent years. Deregulation, privatization, and the advent of new technologies have started to reshape the industry on a global level. The United States deregulated its airlines in 1978 and had since witnessed heightened competition and aggressive jockeying for market position. Europe entered the throes of a similar escalation of competition following the creation of the European Union a nd the disbanding of country-specific barriers to free market competition among air carriers. In Asia, deregulation occurred in fits and starts with some major regions allowing greater access to foreign carriers. For example, India, a regional market of some significance, announced that it would privatize its state-owned airline company. It had already allowed its traditionally domestic airline to compete against its international air carrier in many of the regional markets comprising neighboring countries. Japan made major strides in deregulation after selling off its shares in the then state-owned Japan Airlines and permitted All Nippon Airways to serve international markets. In Latin America, many of the smaller national flag carriers were privatized. Countries such as Mexico and Argentina infused significant levels of market competition in their airline industries by removing anti-competitive barriers and privatizing their national airlines Mexicana and Aerolineas Argentinas. The trend seemed certain to gain further momentum and open skies might be closer to reality than ever before. The major European nations were already in discussions with the United States to implement an open Trans-Atlantic market area where landing rights would be determined by free market forces rather than regulatory policy. Open skies agreements are bilateral agreements between countries that agree to provide landing and take-off facilities for air carriers originating in any of the partner countries. Such an agreement does not have the typical restrictions related to landing rights that are determined on a city-pair basis. For example, Singapore and the U.S. had signed an open skies agreement under which a Singapore carrier could travel to any destinati on city in the U.S. and vice versa. The twin trends of privatization and deregulation resulted in an increasingly global approach to strategic positioning in this industry. Although most large carriers still retained their regional dominance, many forged alliances with other leading carriers to offer seamless services across wider geographic areas. These alliances made most of the larger airline companies de facto global organizations. With increasing geographic reach and decreasing regulatory barriers, many of the regions were witnessing acute competition often in the form of fare wars. Consumers in general became much more price sensitive than ever before. In attempting to keep up with the competition, many carriers upgraded their service offerings contributing to declining yields in a price-conscious market. Chronic excess capacity worldwide only exacerbated this situation. Not surprisingly, there was a decline in passenger revenue yield in all geographic regions and the airlines were fighting an uphill battle to ex tract higher levels of efficiencies from their operating structures. For example, passenger yield dropped by 1.9% and 2.5% in 1998 and 1999, respectively, in Europe and 0.8% and 1.5% in North America during the same period. The drop was far more geographic region-wise summary of key trends in passenger traffic, growth potential, and major players follows. (Source: Annual Reports and HSBC Research.) Asia-Pacific Region By 1999, traffic in the Asian region had become quite important to the overall success of the air transportation industry. Collectively, this region represented 24% of worldwide revenue passenger kilometers. The ICAO estimated that the Asia-Pacific region had grown annually by 9.7% over the last ten years. This upward trend was expected to continue albeit at slightly lower levels, moderating between 6%-7% until 2001. Trans-Pacific traffic was expected to grow at 6.6% and intra-Asia-Pacific traffic by 5%. Some analysts predicted that Asia would play a key role in over half of the top twenty international markets ranked in terms of revenue passenger miles by 2002 The aviation market in Asia, while similar to Europe of the pre-EU era, did indeed have some dominant players. Japan Airlines and Singapore Airlines were the clear leaders and together accounted for 40% of the market share. The second tier included Cathay Pacific, Thai, and Korean Air, which comprised 33% of the market. Asian carriers in general had significantly lower operating costs compared to their American and European counterparts. For example, in 1998, according to Warburg, Dillon Read, personnel costs for North American carriers accounted for approximately 32% of total revenues. For European carriers, it was 21%. However, for the Asia-Pacific carriers, it was only 17%. Most of the Asian carriers also had much higher labor productivity levels and lower unit labor costs than airlines in North America or Europe. This location-specific advantage was a primary reason why carriers from other regions were setting up significant hub operations in the Asia-Pacific region. While the y ields for many carriers such as China Airlines, Korean Air, Thai, and Malaysian, the second and third tier competitors, were much lower than international levels, the top tier carriers such as Japan Airlines, and Singapore Airlines had yields consistent with their North American and European counterparts. The avenues for differentiating airline services in this region were shrinking. The elite carriers who had built a reputation for superlative service such as Singapore Airlines were now facing stiff competition from carriers such as Thai Airways and Cathay Pacific who had geared to deliver similar services. Thus, differentiation was becoming much more demanding and difficult to sustain Singapore International Airlines: Country and Company History and Culture of Singapore Singapore had witnessed bountiful growth and become the envy of many neighboring countries as it entered the new 21st century. Its per capita GNP increased by a phenomenal 75% between 1990 and 1999 and currently stood at S$39,724. This meteoric rise could be directly traced to Mr. Lee Kuan Yew, the most powerful Prime Minister in Singapores history. He was able to tap the patriotic spirit of his people when he announced his intent to develop Singapore to rival Switzerland in terms of standard of living. His emphasis on superior education standards, a controlled labor environment, significant outlays for training and development, all helped to enhance the quality of human capital. At the end of 1999, Singapore boasted a literacy rate of 93%, among the highest in the region. Singapores Confucian work ethic dovetailed very well with his ambitions. It emphasized responsibilities over rights and placed enormous value on attributes such as hospitality, caring and service. As a result of th ese efforts, Singapore, today ranked among the best countries in terms of human capital and was often rated among the worlds friendliest places to do business. Rising standards of living meant higher wages .Coupled with the small size of the local population and a very low unemployment rate (3.2% in 1998), the availability of labor was seen as a potential stumbling block in the drive toward further growth. Many of the larger companies already depended on a sizable number of expatriates from neighboring countries as well as the West to staff positions. A staunch believer in free trade and internally driven growth, Mr. Yew made it clear from the start that the world does not owe Singapore a living. For example, in the air transportation sector, Mr. Yews government declared that SIA, although the national carrier, would not receive any subsidies, protection, financial assistance, or economic benefits from the government. It would have to sink or swim based on its own resources and ingenuity. Singapore literally adopted a free skies approach whereby foreign flag carriers from other countries were welcome to serve the city-state without any restrictions. This meant heightened competition for SIA right from the start. However, the free market philosophy also resulted in sharper rates of market growth. For example, roughly 35% of the equity base of Singapore was foreign in origin, and foreign investors owned 17% of all companies in the country, both testaments to the successful programs that attracted foreign capital and commerce to the island nation. The tourism industry played a very significant role in the overall development of the country. Handicapped by the small size and the lack of natural resources, Singapore had to rely on service industries such as tourism and finance to generate growth. It had always enjoyed an enviable status as an important geographic hub dating back to the pre-British Colonization era. During its history as a British colony, Singapore provided an important stop-off point for travelers from Europe and Britain to the outlying colonies of Australia and New Zealand. Building on this historical reputation, Singapore evolved into an important Asian tourist hub The common origin and shared history of SIA and MAS In 1947, Malayan Airways was established and operated services between Kuala Lumpur, Singapore, Ipoh and Penang, using its fleet of twin-engined Airspeed Consuls. In May that year, when Malayan Airways first took to the skies, there were only five passengers onboard its twin-engined Airspeed Consul. With the flight crew having to attend to the flying of the plane, passengers had to help themselves with the only refreshment available onboard then a flask of iced water. In 1963, it was renamed Malaysian Airways Limited. In 1966, both the Malaysian and Singapore Governments acquired joint majority control. The following year, it was renamed Malaysia-Singapore Airlines (MSA) Limited. On 26 January 1971, both the Malaysian and Singapore Governments agreed to set up separate national airlines, and on 1 October 1972, Malaysia-Singapore Airlines ceased operations. In its place, Singapore Airlines (SIA) and Malaysian Airlines System (MAS) took to the skies. SIAs initial growth and expansion The split of MSA on 1 October 1972 saw MAS taking over all the domestic routes while SIA took over the international network and all the Boeing jets in the MSA fleet .SIA was government-owned, and the Singapore Government viewed the airline as an investment in a portfolio held by the republic. Although SIA was a state-owned enterprise, it paid taxes, like any other company in Singapore, and was expected to be competitive and profitable. Without any domestic routes to monopolise, SIA had to strategise to survive. Soon after the split, SIA embarked on an aggressive growth and aircraft and equipment acquisition programme. It acquired Boeing 747 Jumbo Jets, which went into service in 1973. In that same year, subsidiary Singapore Airport Terminal Services Ltd (SATS) was set up to provide ground services. In 1977, in conjunction with BA, it introduced the supersonic Concorde on the London- Bahrain-Singapore route. The maiden flight was on 10 December 1977. After three flights, however, disputes over airspace delayed regular Concorde service until early 1979. On 1 November 1980, the SIA/BA joint Concorde service between Singapore, Bahrain and London was, however, terminated. SIA began cargo service from Singapore to San Francisco via Hong Kong, Guam and Honolulu in 1978. Passenger service on the route commenced the following year. In 1979, SIA took the unprecedented action of trading in the B-747s purchased just a few years earlier for more advanced, fuel-efficient versions of the same aircraft while simultaneously expanding the fleet in a record-setting S$2.1 billion order with Boeing Aircraft. By 1979, it became the ninth largest airline in the world, up from the 57th position prior to the parting of ways with MAS, achieved on the back of a continuous average annual growth rate of 46 percent over its initial seven-year period (Harvard Business School, 1989b). SIA shares were listed on the Singapore Stock Exchange on 18 December 1985, and a new corporate identity was unveiled on 28 April 1987. On 14 December 1989, SIA concluded a major world-wide alliance with SwissAir and Delta Airlines, covering wide-ranging co-operation and eventual exchange of equity. An MOU with Cathay Pacific Airways and Malaysia Airlines was signed on 22 December 1992 to form a joint venture to develop and operate a frequent flyer programme. Passages,the frequent flyer programme, was officially launched on 1 July 1993. On 22 June 1994, SIA placed a US$10.3 billion order for 22 Megatop 747s and 30 Airbus 340-300E aircraft. The following year, on 14 November 1995, it ordered 77 B777 aircraft powered by Rolls-Royce Trent engines worth US$12.7 billion, including spares and spare engines. SIA turned 50 on 1 May 1997. It had by then grown into a diversified group, totally transformed from its humble beginnings 50 years ago. On 7 May 1997, less than a week following its 50th birthday, it took delivery of its first Jubilee B777-200, which touched down at Changi Airport. Symbolically, this ushered in another new and challenging era for SIA. The power of an idea: a most successful product/service differentiation strategy Within a year of the launch of SIA following the split of MSA on 1 October 1972, SIA began looking for new ways to differentiate itself. In 1973, SIA had in its service, some of the worlds most modern aircraft. Its maintenance operations were generally recognised to be on a par with those of the worlds major airlines. All its pilots and engineers were proficient and experienced, as there were no restraints from the unions on hiring Western crew members if SIA thought they were better. The product/service differentiation strategy that SIA finally decided upon was based on in-flight service. The strategy, as summarised by its then SIAs advertising manager, who later became its manager of in-flight services, was: What we needed was a unique selling proposition. Happily, we found it. Or perhaps I should say we found her, because the Singapore Girl has become synonymous with Singapore Airlines. SIA is an Asian airline, and Asia has a long tradition of gentle, courteous service. The Asian woman does not feel she is demeaning herself by fulfilling the role of the gracious, charming and helpful hostess. What we hope to do is translate that tradition of service into an in-flight reality (Harvard Business School, 1989b). SIA was thus strategically positioned in the premium service, quality and value market segment of the international airline industry. SIA capitalised on Oriental charm with stewardesses of Chinese, Malay, Indian, and Eurasian ethnic backgrounds. By 1997, this resource pool within Singapore had, however, expanded to include Malaysia, Indonesia, India, Taiwan, China, Japan and Korea. In 1997, a third of its 5,800-strong cabin crew were non- Singaporeans (The Sunday Times, 1997a, p. 3) SIA stewardesses were costumed in a specially designed version of the graceful Malay sarong kebaya, designed by renowned fashion house, Pierre Balmain. Passengers were treated to some of the best food on any airline, which is served with lots of warm smiles, warm towels, and attention to details. It provided first-class, business-class and economy-class passengers with cocktails, fine wines, and in-flight motion pictures at no extra charge. Since its inception, SIA has always subscribed to a policy that once a passenger pays for his or her ticket, there should be no more charges on the aeroplane. SIA now spend S$20 million a year on wines, with about 60 to 80 bottles of wine consumed per flight. International consultants who specialise in French, American and Australian wines are contracted to do wine-tasting twice a year for SIA, and they advise the airline on what to buy for its first, business and economy class passengers (Straits Times, 1997a, p. 22). According to SIA, the airlin e even receives letters from passengers asking for the names of wines that they took on SIA flights, with some asking where they can buy them (Straits Times, 1997a, p. 22). Service became the raison detre for SIA, and at the heart of its service reputation was the Singapore Girl. Slogans like A standard of service that even other airlines talk about and SIA: you are a great way to fly were used regularly in its marketing. SIA has always been of the view that the key to its success was its value or quality for the money. SIAs corporate philosophy of the airline industry since the late 1980s is best summed up by: The airline industry is, by its very nature, a service industry. In a free market, the success or failure of an individual airline is largely dictated by the quality of the service it provides (Joseph Pillay, Chairman SIA, Harvard Business School, 1989b). Most had to confront the apparent contradiction between cutting costs and prices, on the one hand, and maintaining customer focus and delivering customer service, on the other. It was a challenge many found most difficult. Into the 1990s SIA had developed a very strong market position. While keeping an eye on costs, its quality and service-enhancement strategy allowed it to command a relative market price premium position through premium service, value and quality. Its enviable position can be summed up as follows: If others resort to cutting fares, we can certainly do the same and we have a far better financial strength to cut fares and last longer than anyone else. But we ask ourselves first whether it is necessary to do that . . . So far, we have no need to do that (S. Dhanabalan, Chairman SIA, 1997, The Sunday Times, 1997b, p. 32). On competition, S. Dhanabalan reiterated SIAs long-standing strategy: Strong competition is not new to SIA. Every now and then, some airline, in an attempt to gain market share, will resort to senseless heavy discounting. It is a short term phenomenon. We take such competition in our stride (The Sunday Times, 1997b, p. 32) The Singapore Girl, the idealised version of the SIA cabin attendant, was the centrepiece in SIAs marketing strategy. Very high-quality photography was used in SIAs advertisements, and the Singapore Girl was always the central feature of the advertisements. The advertisements portrayed her in a number of settings and used a variety of themes to good effect. The Singapore Girl strategy proved to be a powerful idea and turned out to be a phenomenal success. International Research Associates (INRA), a firm which conducted surveys (covering the area of advertising recall) in the Asia Pacific area triennially, found that SIAs advertising enjoyed steady increases in unaided recall in the three successive INRA surveys in advertisement recall it conducted in 1973, 1976 and 1979. The SIA advertisement recall was 21 percent in 1973. It rose up to 32 percent in 1976, and shot up to 50 percent in.The average advertising recall of about 40 airlines studied over the same time period was only 9.6 percent (Harvard Business School, 1989b). SIAs market research up to 1997 continues to attest to this: Around the world the Singapore Girl remains a very positive marketing icon. She evokes the very best in Asian charm and hospitality (Director, Market Research, SIA, The Sunday Times, 1997a, p. 3). Although there were initial protests in some Western quarters in what was perceived to be sexist overtones in the advertisements, not everyone took offence at the advertising image. In a 1979 Fortune magazine article, Flying high with the Singapore Girls, it was noted that far from being repelled by the notion of becoming a `girl, about 7,000 young Singaporean women applied last year for 347 openings in the hostess ranks of SIA (Harvard Business School, 1989b). In the West, its acceptability in recent years had changed quite appreciably. In 1997, it was noted that: Her popularity in the West is such that it would be quite risky for SIA to attempt to change the image at a time when people there are getting used to her (Analyst, Goldman Sachs, The Sunday Times, 1997a, p. 3). Customer focus, innovation, creative service and service excellence On an SIA flight in 1996, a Chinese couple travelling in first-class with their children and nanny had refused the food served. When asked, the man of the family replied: We are just not used to these and would prefer a bowl of instant noodles. Since then, every SIA flight carries a supply of instant noodles for those customers who find in-flight cuisine not quite to their taste (Asian Business, 1996, p. 40). In addition, first-class and business-class passengers flying out of Singapore can now pre-order certain Singapore local fare prior to their flight to be served to them onboard. These are just some examples that illustrate the constant drive by SIA to introduce new ideas to improve customer service, in its customer focus to win customer satisfaction and even delight. There is of course nothing high-tech or sophisticated about instant noodles nor Singapore local fare, but these examples highlight the creative customer service even in simple things that has won SIA wide praise (Asian Business,1996, p. 40). This has become a hallmark of SIAs service excellence. In 1972, SIA was the first airline to introduce free food and alcoholic drinks on its flights. SIA has recognised that in this highly competitive market, any advantage gained by one airline over others will be short-lived, and ideas that are new will become commonplace in a matter of months. However, it noted that the important thing is to always stay in the forefront both in service and in technology (Asian Business, 1996, p. 40). This strategy of SIA focuses primarily not on reducing costs, but on enhancing quality or service and preventing customer problems from arising. SIA has succeeded most uniquely with this type of strategy in the airline industry, a strategy commonly employed in service businesses that command premium prices with high margins, businesses in which there is a high degree of repeat business, with word-of-mouth praise by customers as a most important marketing channel. It has been argued by some that an organisation should be conservative in its promises regarding service excellence to prevent customer expectations becoming too high. High expectations, so that argument goes, increase the potential for customer dissatisfaction. Such prescriptions, however, serve only companies with modest ambitions. In SIAs case, it was very different. It had a bold strategic vision and aspiration of being a top airline, not just any ordinary good airline. Through its careful market positioning and delivering its service promise, SIA could be said to be the very first airline in the international airline industry to have succeeded in developing such a powerful and enduring image of quality service that has resulted in its acquiring a sustainable competitive advantage. Its ability to sustain this advantage, even as its competitors seek to develop comparable service capability, had been buttressed by the fact that it was the first to earn and attain the quality-servic e position and image in the market and in customers minds. High service quality standards need to be developed systematically over time. Although sustaining a competitive advantage based on service quality is possible, this requires unrelenting effort on the part of an organisation to continually improve its service. This was achieved in SIAs case. As part of SIAs strategy to differentiate itself on the basis of superior customer service, it was able successfully to generate a vision of service excellence throughout the organisation. Such an organisation-wide energizing vision of service excellence is a powerful source of competitive advantage in top class service organisations. Such strength can be the bedrock of a quality and service-based sustainable competitive advantage. A service organisation that does not have such a shared vision and culture of service excellence will have a tough task acquiring it, as it cannot be bought. It must be built, as in SIAs case. In SIAs case, setting exceptionally high customer service standards generated a positive spirit and culture that had many follow-on results. Customer servicewent beyond the mechanics involved in efficiently providing a service onboard. Pride, zeal, and motivation were some of the positive service hallmarks that flowed from the shared vision and culture of service excellence, and the results were impressive. Unlike robots or machines, where differences in performance are largely rooted in technical specifications, human beings are subject to major performance variation. The SIAs vision and culture that hold exceptionally high customer service standards as a strategic objective to be attained were a most important factor accounting for its exceptional performance. To support this service excellence strategy, SIA adopts a most rigorous quality control system and process for staff recruitment and selection, as well as a rigorous training and service policy (Asian Business Review, 1996, p. 34). For example, SIA has one flight attendant for every 22 seats, the highest in the world and well above the industry average. Cabin crew must be under 26 and are employed on a five-year contract after making it through a very selective three-stage interview process that includes a social function Previously, all cabin crew would complete a six-month training course before they could be allowed to serve a customer. However, this has now been compressed into an intensive four-month course, which is still considered to be the longest and most comprehensive programme of any major airline. In comparison, Cathay Pacific, for instance, conducts only a seven-week intensive training programme on technical, safety and interpersonal skills. The aim of SIAs training is to provide gracious service reflecting warmth and friendliness, while maintaining an image of authority and confidence in the passengers minds. Each month, thousands of young ladies would apply for the airlines rigorous course that emphasizes safety training and encompasses beauty tips, discussions of gourmet food and fine wines, and the art of conversation. SIA is also at the forefront of service innovation through technology. For instance, it introduced Electronic Ticketing for flights from Singapore to Kuala Lumpur and Penang (and vice versa) on 1 October 1997. About two weeks earlier, on a flight from Singapore to Tokyo on 15 September 1997, it had launched a revolutionary innovation in in-flight entertainment with the introduction of the WISEMEN system, offering passengers full control over their viewing and listening options. With WISEMEN, passengers will be able to choose from 15 movies, 20 short features and about 50 CDs. This is over and above the current SIAs in-flight entertainment system, Krisworld, which already had 22 video channels, 12 audio channels and ten games channels. Internet check-in for First Class, Raffles Class and PPS Club Members flying out of Singapore was introduced on 20 November 1996. SIAs profitability track record Just as well-known as its product/service differentiation strategy, as well as its creative service and service excellence, but certainly less familiar, is SIAs profitability track record. Since its inception in 1972 some 25 years ago, SIA has had an uninterrupted profit track record. Asian Business Review, in an article piece on Asias Great Companies, noted that its financial track record is almost unheard of in the brutally cyclical airline industry, and touted it as the Worlds most profitable airline (Asian Business Review, 1996, p. 34). Its profitability track record is even more astounding considering that it is the national airline of a small country that is essentially just a city, of only 647 square kilometres and 3.6 million populations, with no domestic routes to monopolise. Yet, despite this it has managed to consistently deliver profits in one of the worlds most cyclical industries. SIA has an established practice of keeping its fleet young and modern (Singapore Airlines, 1997b, p. 5). This, made possible by the airlines strong cash flow position, has allowed it to maintain a fuel-efficient fleet that averages just over five years of age without resorting to heavy borrowing or costly leasing deals. The fleets of most other international carriers are more than twice as old as SIAs. SIAs fleet is in fact the youngest in the world, not taking into account the couple of small regional airlines that have just started up. For SIA, this strategy which entails heavy capital costs, however, translates to significant savings through minimising aircraft downtime and minimizing maintenance costs. Newer aircraft are also faster and more fuel efficient, and are perceived by passengers to be safer. For instance, the B747-400 is 10 percent more fuel efficient than its predecessor. For SIA, this means a significant saving as about 15 percent of the companys expenditure is on fuel (Asian Business Review, 1996, p. 34). Most airlines use a combination of different financing schemes for their aircraft with the core fleet usually on long-term leases to minimise interest costs. SIA