Tourism system Essay Example | Topics and Well Written Essays - 2000 words

Tourism system - Essay Example A large amount national income comes from the tourism industry. Such vast amounts of information and data have to be stored and processed and should be distributed to the customers as efficiently as possible. Information technology plays a very important role in the tourism industry because through the use of information technology, several devices can be implemented which are used to store large amounts of information. Tourism industry was never a very renowned industry and people were not very interested in tourism industry. IT was only recently due to the technical advancements in technology. The advancements in Information Technology resulted in both the quantitative and the qualitative aspects of the economy of a nation and also advancements in the tourism department consequently fueling and sustaining an impressive growth rate over the years (Franke, 2003). This brings into focus the role of IT in tourism education geared at nurturing the necessary skills in potential managers in the industry to make the industry influential and effective. The benefits of implementing Information Technology in tourism industry can only be observed through the development in the tourism industry all over the world. Information Technology when applied to tourism industry, it takes the level of the tourism industry to a whole new level where touris... ome into play while implementing Information Technology in tourism - the information about the tourist places, the kind of places people would like to live in, the type of technology to be used and many such factors (Baggio, 2006). Each one has an important role to play in tourism. Tourism is characterized into three different components: Transport Sector Accommodation Sector Attraction Sector Transport Sector Transport is a major contributor to the development of the tourism industry. Transport helps link the origin and the destination areas through some means of transport. This means of transport could be any moving vehicle. Transport includes many entities such as holiday makers, business travelers, relatives, travelers, and other such entities. Transport facilitates the movement of these entities from one place to another. Before setting out on a journey of any kind, every traveler makes sure which Transport Company has a good safety record (Vich-I-Martorell, 2002). To this effect, airplanes coaches and even taxis are equipped with good communication equipment. An airplane requires highly sophisticated and highly advanced technical instruments to ensure passenger safety. Today's airplane has this highly advanced technical instruments and flies with the help of modern information technology equipment. A deep understanding and detailed weather information, altitude information and other such small but important information is provided by Information Technology. This information is given to the pilot. Using this information the pilot can communicate with the ground control during emergencies. With information technology in place, it is easy for airplanes to communicate to any airport during emergencies. In-flight entertainment is also a product of information

A Look At Three Types Of Price Searchers Economics Essay

A Look At Three Types Of Price Searchers Economics Essay A monopoly is a firm producing a commodity for which there is no close substitute. There are usually some forms of barriers of entry. It is difficult to define a pure monopoly as close substitutes are difficult to define. For example, there are no close substitutes for cigarettes, but there are many substitutes for Marlboro. 1.1 Characteristics à ¢Ã¢â€š ¬Ã‚ ¢ Features (a) Only one seller. (b) Restricted entry by barriers. (c) Market information is not free and perfect. à ¢Ã¢â€š ¬Ã‚ ¢ Barriers to entry (a) Legal barriers create legal monopolies. (i) Public franchise: exclusive right to run a business, e.g. TVB. (ii) Government licence: exclusive right to entry into a business, e.g. taxi licence. (iii) Patent: exclusive right to use an invention, e.g. right to produce a drug. (b) Natural barriers create natural monopolies. (i) The average cost falls over a large volume of output before it rises. LRAC would be lower if an industry were under monopoly than if it was shared between two or more competitors. (ii) Control the supply of an essential raw material, e.g. most diamond mines in the world are controlled by De Beers Ltd. (iii) Economies of scale: The large fixed cost of production requires a large output to pull down the average cost, e.g. electricity generated by China Light Power Ltd. 1.2 Output And Price Decisions Definition A single-price monopoly is one that charges the same price for every unit of output it sells. The monopoly must decide how much to produce and what price to charge. It is a price-searcher. Definition A price searcher is a seller with sufficient market power to set its price by adjusting supply. Since there is only one firm in the industry, the demand curve of the firm is also the demand curve of the industry, and the seller faces a downward sloping demand curve. Table 1 illustrates the demand function of a petrol station. The marginal revenue is less than and falls faster than the price charged. The price is also equal to average revenue (AR). Table 1: Demand and marginal revenue Price (P, $/Litre) Quantity Demanded (Q) Total Revenue (TR = P x Q, $) Marginal Revenue (MR = ΆTR = ΆQ) ($/Extra Litre) 18 0 0 16 1 16 16 14 2 28 12 12 3 36 8 10 4 40 4 The monopoly maximises its profit by producing the level of output to MR = MC. Given the total cost as in Table 2, we can find that the best output level to maximise profit is at three litres, where both MC and MR are equal. The price charged is $12. Table 2: Demand and marginal cost Price (P, $/Litre) Quantity Demanded (Q) Total Revenue (TR=P x Q, $) Marginal revenue (MR = ΆTR / ΆQ, $/Extra Litre) Total Cost (TC, $) Marginal Cost ($/Extra Liter) 18 0 0 15 16 1 16 16 18 3 14 2 28 12 22 4 12 3 36 8 30 8 10 4 40 4 41 11 Graphically, the same conclusion can be derived in Figure 1. Figure 1 A monopolys output and price The price is determined by demand curve corresponding to the equilibrium quantity at which the MR equals to MC. The profit or loss is again determined by the ATC with reference to the quantity sold and the price charged. Owing to barriers to entry, economic profits will not be eliminated away in the long run. The only difference between short-run and long-run equilibrium is that in the long run, the firm will produce where MR = LRMC. 1.3 Single-price Monopoly Versus Perfect Competition A monopoly and perfect competition are two completely different market structures leading to different price and output decisions. We can summarise their differences as follows: Perfect Competition Monopoly à ¢Ã¢â€š ¬Ã‚ ¢ Price-taker à ¢Ã¢â€š ¬Ã‚ ¢ Monopoly influences its price à ¢Ã¢â€š ¬Ã‚ ¢ Produce where MR = MC à ¢Ã¢â€š ¬Ã‚ ¢ Produce where MR = MC à ¢Ã¢â€š ¬Ã‚ ¢ P = MR = MC à ¢Ã¢â€š ¬Ã‚ ¢ P > MC; P > MR à ¢Ã¢â€š ¬Ã‚ ¢ No barriers to entry à ¢Ã¢â€š ¬Ã‚ ¢ Restricts output, charges a higher price In terms of output, a monopoly is always accused of restricting output in order to push the price above the marginal cost. This is known as allocative inefficiency, leading to loss in social welfare. In Figure 2, PM and QM are the price and output decisions of a monopoly, which are less than the corresponding output and price decisions in perfect competition. We can see that the PC and PM for perfect competition are set at P = AR = MR = MC. Figure 2 Price and output decisions in a monopoly and in perfect competition Similarly, the output level is reduced from QC to QM, which will hurt both consumers and producers in terms of loss in consumer surplus and producer surplus. The sum of such loss is known as deadweight loss. Definition A deadweight loss is a loss to society that cannot be recovered. Figure 3 Inefficiency of a monopoly In Figure 3, some of the losses of consumers have been captured by the producer as monopoly gain. However, there is still deadweight loss as illustrated by the area of the triangle. In this respect, a monopoly reduces the potential gain to society in term of social welfare. 1.4 Shortcomings Of A Monopoly A monopoly has the following shortcomings: à ¢Ã¢â€š ¬Ã‚ ¢ Higher price and lower output than under perfect competition in both short run and long run. à ¢Ã¢â€š ¬Ã‚ ¢ Possibility of higher cost due to lack of competition. à ¢Ã¢â€š ¬Ã‚ ¢ Unequal distribution of income as income concentrates on monopolies. à ¢Ã¢â€š ¬Ã‚ ¢ Lack of incentive in invention and innovation. 1.5 Advantages Of A Monopoly A monopoly has the following advantages: à ¢Ã¢â€š ¬Ã‚ ¢ Economies of scale. à ¢Ã¢â€š ¬Ã‚ ¢ Possibility of lower cost curve due to more research and development and more incentives. à ¢Ã¢â€š ¬Ã‚ ¢ I nnovation and new products. 2. Monopolistic Competition The second type of price-searcher is monopolistic competition. Definition Monopolistic competition consists of features of perfect competition and monopoly. A firm in such a market structure is also referred to as open market price-searcher as it is not protected by barriers. 2.1 Characteristics à ¢Ã¢â€š ¬Ã‚ ¢ Large number of sellers (a) Each firm has a small market share. (b) This implies independence of firms. à ¢Ã¢â€š ¬Ã‚ ¢ Freedom of entry à ¢Ã¢â€š ¬Ã‚ ¢ Product differentiation Each firm has some market power over its loyal customer. à ¢Ã¢â€š ¬Ã‚ ¢ Each sellers product is a close substitute for many other sellers products (a) Products are made slightly different from others, i.e. differentiation. Definition In differentiation, products are made slightly different from others by brand, packaging, sales location and services. (b) Non-price competition is common. 2.2 Demand Curve Because of product differentiation, a firm can raise its price without losing all its customers. Therefore, the demand curve is downward sloping because a price rise results in the loss of some, but not all customers. The demand curve is relatively elastic because of substitutes from other firms. However, the actual elasticity depends on the degree of product differentiation. Generally, the less differentiated the product is, the more elastic the demand will be, and vice versa. 2.3 Price And Output Determination 2.3.1 Short run A firm in monopolistic competition faces a downward sloping demand curve. The marginal revenue (MR) curve of the firm in monopolistic competition is downward sloping. The profit is maximised where marginal revenue equals marginal cost. The profit-maximising output level is determined by the intersection of MR and MC curves. The profit-maximising price is determined by the demand curve. The firm can make a normal profit, an economic profit or a loss, depending on the difference between the price and the average total cost. Since each firm is small and has market power, no single firm can effectively influence what other firms do. If one firm changes its price, this action has no effect on the actions of the other firms. Figure 4 Monopolistic competition in the short run 2.3.2 Long run Economic profits in the short run will attract new entrants. When new firms enter, they share the market demand. The existing firms demand curve shifts inwards, representing less demand. This process continues until all economic profits are exhausted. When only normal profits remain, there is no incentive for new entrants. In Figure 5, the price and quantity are $140 and 60 units respectively. As the price is just equal to ATC, there is no economic profit. Figure 5 Monopolistic competition in the long run The long-run equilibrium will be a position where the downward sloping demand curve is tangent to the LRAC curve. However, the demand curve will never be tangent to the bottom of LRAC because it is downward sloping. The profit-maximising output is 60 units and price is $140. The firm in monopolistic competition has excess capacity as it does not produce at the optimum level of output where the LRAC is the lowest. Figure 6 Excess capacity in monopolistic competition 2.4 Shortcomings Monopolistic competition has the following disadvantages: à ¢Ã¢â€š ¬Ã‚ ¢ Owing to monopoly power, long-run equilibrium brings a higher price and lower output than perfect competition. à ¢Ã¢â€š ¬Ã‚ ¢ Owing to downward sloping demand curve, the firms demand curve will never be tangent to the bottom of the LRAC curve, implying that it will not produce at the least-cost point. Therefore, product differentiation in monopolistic competition creates excess capacity (i.e. creates inefficiency). à ¢Ã¢â€š ¬Ã‚ ¢ Less scope for economies of scale as share among many sellers. à ¢Ã¢â€š ¬Ã‚ ¢ Lack of economic profits in the long run for research and development. 2.5 Advantages Monopolistic competition has the following advantages: à ¢Ã¢â€š ¬Ã‚ ¢ Demand curve is highly elastic due to the large number of substitutes. à ¢Ã¢â€š ¬Ã‚ ¢ Diversity of products is available. (However, it has been argued that the cost of diversity is excess capacity which is a type of inefficiency.) à ¢Ã¢â€š ¬Ã‚ ¢ Greater freedom of entry when compared with monopoly. à ¢Ã¢â€š ¬Ã‚ ¢ Absence of economic profits in the long run helps to keep prices down for consumers. 3. Oligopoly Definition An oligopoly occurs when only a few firms share a large proportion of the industry. 3.1 Characteristics à ¢Ã¢â€š ¬Ã‚ ¢ Few number of sellers Competition among a few, e.g. two to 20. à ¢Ã¢â€š ¬Ã‚ ¢ Products may be identical or differentiated à ¢Ã¢â€š ¬Ã‚ ¢ Barriers to entry Entry may be relatively difficult or impossible (e.g. petroleum). à ¢Ã¢â€š ¬Ã‚ ¢ Interdependence of firms Oligopolists react to the pricing policy of rivals. The outcome is that there is no single generally accepted theory of oligopoly. Firms may react differently and unpredictably. A firms policy will depend on how it thinks its competitors will react to its move and the consequence depends on how its competitors really react. 3.2 Collusion And Competition The interdependence of firms in an oligopoly drives firms into one of the following two incompatible policies: à ¢Ã¢â€š ¬Ã‚ ¢ Collusive oligopoly: Oligopolists have formal or tacit agreement to limit competition among themselves to reduce uncertainty. For example, they may set output quotas, fix prices and limit product promotion. The typical collusive oligopoly is a cartel price leadership. à ¢Ã¢â€š ¬Ã‚ ¢ Non-collusive oligopoly: There is no formal agreement among oligopolists. Firms compete for bigger shares of industry profits. 3.3 Collusive Oligopoly A typical collusive oligopoly has these features: à ¢Ã¢â€š ¬Ã‚ ¢ Cartel Firms acts like a monopoly to maximise industry profits. (a) Cartel by non-price competition: Market price is set by joint profit maximisation and each firm observes that price. However, they compete for customers in the form of non-price competition. (b) Cartel by quotas: Another way is to set the price by joint profit maximisation. Each firm observes that price, but each firm will take its share or quota of the total quantity demanded at the controlled price. Thus, both cases require adherence to the price-setting by joint profit-maximisation among oligopolists. The only difference is whether the quantity demanded at the controlled price is competed among the firms in the form of non-price competition or is divided among themselves in the form of quotas. à ¢Ã¢â€š ¬Ã‚ ¢ Price leadership The demand curve of price leader represents the market share of the leader. The leader first maximises its profits at the point where leaders MC = MR. The corresponding price of leaders demand curve becomes the market price which every other firm has to follow. The leader supplies at its equilibrium quantity and the followers supply the rest representing the difference between market demand and leaders supply. 3.4 Kinked Demand Curve Model There are many theories to explain different kinds of phenomena in oligopoly. One such theory, the kinked demand curve, is put forward by Paul M. Sweezy to explain the price rigidity or sticky price in an oligopoly industry. Assumptions: à ¢Ã¢â€š ¬Ã‚ ¢ If a firm raises its price, others will not follow. Thus, the demand curve will be more elastic in this range. à ¢Ã¢â€š ¬Ã‚ ¢ If a firm cuts its price, so will the other firms. The demand curve in this range will be less elastic. These assumptions result in the kinked demand curve. In Figure 7, because the demand curve has kinked, the MR has broken as is illustrated by the gap between a and b on the graph. And the output and price would be the same even though the MC rises due to the same level by the equality of MR and MC. Thus, the price will be sticky when the cost increases within a certain range. Figure 7 The kinked demand curve 3.5 Shortcomings An oligopoly has the following disadvantages: à ¢Ã¢â€š ¬Ã‚ ¢ Shares all the same disadvantages of monopoly, as discussed earlier in this chapter. à ¢Ã¢â€š ¬Ã‚ ¢ Less scope for economies of scale than monopoly. à ¢Ã¢â€š ¬Ã‚ ¢ More extensive advertising than monopoly, e.g. non-price competition. 3.6 Advantages An oligopoly has the following advantages: à ¢Ã¢â€š ¬Ã‚ ¢ Economic profits: returns for research and development. à ¢Ã¢â€š ¬Ã‚ ¢ Incentive for innovation: for capturing larger market share. à ¢Ã¢â€š ¬Ã‚ ¢ Greater choice: non-price competition through product differentiation. 4. FACTOR MARKET For the production of goods and services, a firm has to acquire factors of production. The markets for factors of production are similar to those of the product market, as they can be categorised into perfect or imperfect markets. The demand for a factor of production is dependent upon the demand of goods that use the factor. Hence, the demand for factors of production is a derived demand. Definition Derived demand is demand for a productive resource that results from the demand for the goods and services produced by the resource. Figure 8 Illustration of the factor and product markets Factor payment is the income for the owner of the factor of production for use of the factor over a period of time. The factor income for labour, land, capital and entrepreneurship are wages, rent, interest and normal profit respectively. In a perfectly competitive factor market, the factor payment is determined by the forces of demand and supply. Figure 9 Demand and supply in the factor market 5. MARGINAL PRODUCTIVITY THEORY This theory explains that the demand for a factor depends on the marginal revenue product (MRP) of the factor. Definition Marginal revenue product (MRP) is the additional sales revenue resulting from employing an additional worker. Marginal product (MP) is the extra output produced by the additional worker. The MP curve is downward sloping because of the law of diminishing returns. MRP = MP (factor) x MR (goods) The MRP curve is downward sloping from left to right. It is identical in shape to the MP curve because MR (i.e. price of a good) is constant under perfect competition in the product market. Figure 10 Marginal product for labour and marginal revenue product 6. DEMAND FOR A FACTOR Marginal cost (MC) is the extra cost of employing an additional unit of factor of production. In a perfectly competitive factor market, a firms MC graph for a factor is horizontal because the firm is facing a perfectly elastic supply of the factor. Therefore, MC = Price of the factor (i.e. MC of labour = Wages) 6.1 Profit Maximisation The firm maximises profits when: Marginal cost of hiring an extra unit of labour = Marginal revenue from the labours output to the firm In equilibrium, MC (labour) / Wages (factor price) = MRP Hence, the firms demand curve for labour is identical to its MRP curve. Figure 11 Demand for labour The market demand curve for labour is the sum of quantities of labour demanded by all firms at each wage rate. Chapter Review à ¢Ã¢â€š ¬Ã‚ ¢ A monopoly is a price-searcher who is a seller with sufficient market power to set his price by adjusting supply. à ¢Ã¢â€š ¬Ã‚ ¢ The monopoly maximises its profit by producing the level of output to MR = MC. à ¢Ã¢â€š ¬Ã‚ ¢ A monopoly restricts output in order to push price above the marginal cost. Such allocative inefficiency leads to a loss in social welfare. à ¢Ã¢â€š ¬Ã‚ ¢ Because of product differentiation, a firm in monopolistic competition can raise its price without losing all its customers. à ¢Ã¢â€š ¬Ã‚ ¢ The firm in monopolistic competition has excess capacity as it does not produce at the optimum level of output where the LRAC is the lowest. à ¢Ã¢â€š ¬Ã‚ ¢ Due to the interdependence of firms, oligopolists react to the pricing policy of their rivals. à ¢Ã¢â€š ¬Ã‚ ¢ The kinked demand curve explains that the price will be sticky when the cost increases within a certain range. à ¢Ã¢â€š ¬Ã‚ ¢ A firm will maximise profits when the marginal cost of hiring an extra unit of labour = the marginal revenue from the labours output to the firm What You Need To Know à ¢Ã¢â€š ¬Ã‚ ¢ Monopoly: A firm producing a commodity for which there is no close substitute. à ¢Ã¢â€š ¬Ã‚ ¢ Deadweight loss: Loss to society that cannot be recovered. à ¢Ã¢â€š ¬Ã‚ ¢ Single-price monopoly: Monopoly that charges the same price for every unit of output it sells. à ¢Ã¢â€š ¬Ã‚ ¢ Monopolistic competition: This market structure consists of features of perfect competition and monopoly. à ¢Ã¢â€š ¬Ã‚ ¢ Differentiation: Products are made slightly different from others by brand, packaging, sales location and services. à ¢Ã¢â€š ¬Ã‚ ¢ Oligopoly: Only a few firms share a large proportion of the industry. à ¢Ã¢â€š ¬Ã‚ ¢ Derived demand: Demand for a productive resource that results from the demand for the goods and services produced by the resource. Work Them Out 1. Which of the following is NOT a characteristic of a monopoly? A The monopolist faces an inelastic demand for its product B There is only one seller in the market C Barriers of entry exist D The monopolist can influence the price 2. Which of the following statements is NOT true? A As an oligopolist responds to competitors actions, it can be considered a perfectly competitive firm. B Products in an oligopoly may be differentiated. C A cartel is like a monopolist with power to maximise industry profit. D Oligopoly is a market structure favourable to collusion. 3. The characteristic of a monopoly is A its large scale of production B the existence of barriers to entry C the huge initial investment D the necessity for a large market 4. A natural monopoly exists when A a franchise is granted to a firm B economies of scale are necessary C a firm can prevent the entry of competitors D a firm specialises in natural resources extraction 5. The monopolist can make economic profits because A entry is prevented B it charges a high product price C it has low promotion costs D it has a large market share 6. Economic profits earned by a monopolist are most likely due to A barriers of entry B an unexpected rise in the price of its product C good luck D the rate of return allowed by the government 7. Which of the following is NOT a feature of oligopoly? A Only a few firms dominate the industry. B There are no barriers to entry into the industry. C The product may be either homogeneous or differentiated. D Firms in an oligopoly face downward-sloping demand curves. 8. Which of the following is NOT a characteristic of monopolistic competition? A A single price exists for similar goods. B Only normal profit exists in the long run. C Products are differentiated. D Excess capacity exists in the long run. 9. Which of the following statements is NOT true? A There are numerous sellers in perfect competition. B Products are differentiated in monopolistic competition. C Firms in perfect competition maximise profits. D Information is perfect in monopolistic competition. 10. What is the likely market structure of coffee shops in Hong Kong? A Monopoly B Oligopoly C Monopolistic competition D Perfect competition SHORT QUESTIONS What factor(s) enable(s) a monopoly to earn economic profits in the long run? Why do perfectly competitive firms maximise their profits by producing so that their marginal cost equals the price, but monopolists maximise their profits by setting a price that is greater than marginal costs? What are the characteristics of a market that allows a monopolist to successfully price discriminate between groups? Explain how a firm in an oligopoly can differentiate its product. ESSAY QUESTIONS 1. Peters Toy Factory, a single-price monopoly, has the following demand schedule and total cost for luxury toys: Quantity (Toys) Price ($/Toy) Total Cost ($) 0 10 1 1 8 3 2 6 7 3 4 13 4 2 21 5 0 31 Calculate Peters total revenue schedule. Calculate Peters marginal revenue schedule. Calculate Peters profit-maximising levels of : (i) output (ii) price (iii) marginal cost (iv) marginal revenue (v) profit 2. Mr Ma started a recycling business in Hong Kong this month. He employs students to sort and collect bottles, paying 10 cents for each bottle collected. The students can sort the following number of bottles in an hour. Number Of Students Number Of Bottles 1 200 2 450 3 750 4 1,150 5 1,450 6 1,700 7 1,900 8 2,050 9 2,150 (a) Why does the students marginal product decline? (b) If all other firms pay the students $25 an hour to collect bottles, how many students will Mr Ma hire? If the fee for each collected bottle rises to 12.5 cents and the students wages increases to $37.50 an hour, (c) Calculate and show the changes to the students marginal revenue product in a table. (d) How many students will Mr Ma hire?

Observing the Human Condition :: essays research papers

Human’s, according to the bible, will always be evil because of one action; the action of biting the apple. Films like Fargo, Magnolia, and Pleasantville portray human nature constantly â€Å"biting the apple.† These films seem to share many views on how human nature is portrayed with the Bible. Betrayal and forgiveness are two prominent themes in the Bible as well as all three of these films. In particular, the film Magnolia seems to have almost every character commit betrayal of some kind. The one character that is true to Bonhoeffer’s â€Å"true discipleship† is Officer Jim Kurring. He values the lives he saves more than his own life, he is truly unselfish.   Ã‚  Ã‚  Ã‚  Ã‚  The movie Pleasantville is a clear parable to the Bible’s description of the Garden of Eden. Pleasantville portrays complete innocence amongst its population. Complete innocence that is, until David Wagner betrays the TV repairman (God) and begins to change the world of Pleasantville along with his sister Jennifer. Like the film, the Bible portrays humans as sinners by consequence. The movie also brings out the question of whether or not there is one true â€Å"garden of Eden† for everyone, or if we must learn to create our own paradise in order to truly be happy. Does God have our destiny created for us or must we create our own? When it comes to reconciliation and forgiveness, the movie does not seem to be a parable to the passages of the Bible. The Hebrew god brings chaos when he is betrayed by the sinners of the earth, like the flood. The movie has a much unrealistic view of how forgiving God is.   Ã‚  Ã‚  Ã‚  Ã‚     Ã‚  Ã‚  Ã‚  Ã‚  The story of Cain and Abel can be paralleled to the movie Fargo. Jerry Lundenguard sacrifices his family for his own gain in much of the movie. The kidnapping of his wife depicts his total lack of clarity towards the safety of his wife. Even his own son seems unimportant to him, he is asked how his son is holding up and he has a moment of realization that he has not even thought about his son’s well being. Even the betrayal of the two killers at the end of the movie can be paralleled towards Jerry betraying his wife. Backstabbing is an essential part of this movie when compared to the Bible whether the betrayal involves evil vs. evil, or evil vs. good.

Ethical Business Practices

Today we will evaluate the PepsiCo past performance marketing their product using the six pillars of the marketing code of ethics—honesty, responsibility, caring, respect, fairness, and citizenship. I will also outline how PepsiCo could make further progress as a good corporate citizen when it comes to consumption of its products, such as green initiatives and philanthropic commitments. Code of Ethics According to â€Å"World’s Most Ethical Companies† (2011), PepsiCo made the list for most ethical company’s in the world. So you may be asking yourself were can there be room for improvement. Let me be the first to fill you in on a little secret, no matter how good you are room for improvement will always be there. The PepsiCo include soft drink brands include Pepsi, Mountain Dew, and Mug. Cola is not the company's only beverage: Pepsi sells Tropicana orange juice brands, Gatorade sports drink, SoBe tea, and Aquafina water. The company also owns Frito-Lay, the world's #1 snack maker with offerings such as Lay's, Ruffles, Doritos, and Fritos. Its Quaker Foods unit offers breakfast cereals (Life, Quaker Oats), rice (Rice-A-Roni), and side dishes (Near East). Pepsi's products are available in more than 200 countries. In 2010 the company acquired its two largest bottlers: Pepsi Bottling Group and PepsiAmericas. Responsibly and Caring PepsiCo takes pride in their quest of providing more food and beverage choices made with wholesome ingredients that contribute to healthier eating and drinking. This means increasing the amount of whole grains, fruit, vegetables, nuts, seeds and low-fat dairy in our global product portfolio. It also means reducing the average amount of sodium per serving in key global food brands, in key countries, by 25 percent by 2015 reducing the average amount of saturated fat per serving in key global food brands, in key countries, by 15 percent by 2020) reducing the average amount of added sugar per serving in key global beverage brands, in key countries, by 25 percent by 2020 (â€Å"Human Sustainability†, 2012). Honesty According to â€Å"Nutritional Labeling† (2012), PepsiCo is committed to providing safe products and to protecting equity in our brands, trademarks and goodwill. In addition, we're working to ensure that by 2012, basic nutritional information is available to consumers on packages (where feasible to print on the packaging and where permissible by local regulations) for all of our food and beverage products in key markets. In countries where we've already met this standard, we're also working toward an additional goal displaying calorie or energy counts on the fronts of packages. We have already implemented front-of-pack labeling on many products in the U. K. and many other European countries, as well as in Australia. And we are rapidly expanding implementation in a number of countries around the globe, including the U. S. , Canada, Mexico and Brazil (â€Å"Nutritional Labeling†, 2012). Improvements PepsiCo could make a few changes to improve their ethical ranking with the people and media. The first improvement would be triple checking are product for quality and safeness. Nothing worst then having case of sodas sitting in the warehouse with rats around dropping waste everywhere. Or giving you kid oatmeal and it has a dead bug on the inside that kind of stuff will change a person life. I know you can’t catch everything, but they need to minimize to the fullest. The second improvement would be lower some of the sugar levels in a lot of their products. With America youth being obese parents would take notice that this company is stepping the proper steps to help with their kid’s future. I’m sure America’s youth consumer over a billions sodas year and with the lack of working out kids are getting obese it is not just because they drink soda, however soda doesn’t help. While we all know it hard having a good reputation it’s even harder trying to maintain it. PepsiCo has been during ok for many years and I’m sure that will not change for some time to come. The code of ethics is just a stepping stone for companies to follow it is total up to them to go above and beyond the call of their ethical duties to improve the quality of their employees and consumers alike. So in closing I feel PepsiCo has room for improvement and I’m sure they will close that window soon enough.

Open Source Software Essay

Free and Open Source Software has been around for quite some time. Free software has always been a controversy. This time someone is trying to take a stance against it. More than just someone but a major software company namely Microsoft. The whole issue is coming against software patents. Patents are there to protect the make, use, and selling of an invention but in this case would deal with software. Microsoft is not keen on the idea of software being readily available especially to businesses at little to no cost. In the business world this is unheard of. To let companies take control and create custom software with almost no cost is being attacked. Microsoft is quoted in a CNN Money article: â€Å"Microsoft takes on the free world† as saying, â€Å"We live in a world where we honor, and support the honoring of, intellectual property,† They were quoted as calling this a matter of principle. I can understand principle and I’m definitely not against making money. I believe that enough is enough. Free and Open Source Software is there to benefit the public. In suggesting that business owners need only buy licensed software or that business owners are only obligated to purchase said software is irrational. Putting aside costs, theoretically let’s say there is a software developer that is hired by a company to create custom software. This company favors Linux rather than Windows not to say that Windows isn’t a great operating system but to say that someone does not have the freedom to create is ridiculous. To limit this company because of some alleged patent laws is preposterous. Eben Moglen, longtime counsel to the Free Software Foundation and head of the Software Freedom Law Center, says that, â€Å"software is a mathematical algorithm and, as such, not patentable. † This statement is critical because of the seeming less attack on inventors and software developers. Software has always been improved and with the strict patent laws associated with Microsoft there is no inventing unless it’s specifically for Microsoft. There needs to be a line drawn and some slack given as to what is actually infringing on patents and what is hindering creativity and innovation. There are current lawsuits with Microsoft versus FOSS (Free and Open Source Software). This has been referred to as a cold war. One side saying they will sue if the other continues to produce and the other saying that if you sue we will be forced to sue back. FOSS has always been under attack since it began. Specifically attacked is Linux. In PCWorld: Microsoft Vs. Open Source: Now It’s Political, â€Å"Once you leave the shores of the U. S. the question would be not if but where is Linux being used† in government, said Matthew Szulik, chief executive officer of Linux software maker Red Hat. The industry is in agreement that government use of open-source software particularly is growing amongst popularity. As much as I would like this to mostly be about freedom of invention and creativity the bottom line is that at the end of the day it’s all about money. No one sees the need to be forced to buy ongoing licensing to use software that most believe the costs are becoming unreasonable. Of course the government is not about spending. (Right? ) As quoted in the article Microsoft Vs.  Open Source, â€Å"Price aside, government officials around the world are also looking for ways to increase use of local software and curb the export of IT funds to major U. S. companies. That is the case in a number of countries in the Asia-Pacific region. † Money makes the world go round. The whole fear that Microsoft has is that it will hurt the pockets of Microsoft. â€Å"Windows still powers roughly 9 out of 10 traditional desktops, with the rest going to Mac and Linux. Linux’s failure to capture desktop share is disappointing to many,† Zemlin admitted. But â€Å"the good news is the traditional PC desktop is becoming less important, and areas where Linux is very strong in terms of client computing are becoming more important. † as expressed in an article of Network Wold: Bashing Microsoft ‘like kicking a puppy,’ says Linux Foundation chief. We could argue that Microsoft is just some big heartless corporation that wants to make money. That is true they are and honestly if anyone expected them to respond in any way different was severely delusional. The act does need to be reformed to show exactly that which is crossing the line in creating software and tying the hands of developers. The debate surrounds the open source code that exists and who should have access to this code. From a business perspective giving out that information obviously would be detrimental to the success of the company. While Microsoft is currently the most dominant software in the business world I doubt that business would be ready to just make a leap to Open Source Software. In the technical world not everyone is a computer geek. Microsoft still has the support to help customers. The shift will take a while and to take down a giant such as Microsoft is not impossible but not something that will happen overnight. The large factor in this is the ignorance of other Operating Systems on a general knowledgebase. Companies and governments that choose to use this FOSS should have the choice. A need for a revision of patent rights and software development need attention.