The twelve year return-on-equity data for the Tobacco Industry of 27.9% is substantially above the all-industry average of 14.1% given in the Business Week data. Examining Porters five forces reveals the keys to the Tobacco industries superior profit performance. The price customers are willing to pay for a product depends‚ in part‚ on the availability of substitutes. The absence of close substitutes in the case of cigarettes means that consumers are comparatively insensitive to price increases
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TUI Travel PLC Market overview 2 business models: individualization and commoditization (best serve to changing needs). But How Does a Service Become a Commodity? Traditionally‚ services cannot be commoditized‚ as there are numerous variables that account for differences between the type and level of service offered by each provider. The commoditization of hotels started many years ago with the first rating systems. Companies like the American Automobile Association (AAA) and Mobil (now Forbes)
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LAW OF AGENCY The law relating to agency in Kenya is contained in the Factors Act 1889 and the common law as modified by the doctrines of equity. Agency may be defined as a legal relationship that exists between a person called the agent is considered by law to represent another known as the principal in such a way as to affect the principal’s legal position in relation to 3rd parties. It has also been defined as a relationship where a party expressly or implied consents that the other should
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FDI in multi-brand retail will benefit farmers‚ says Bhupinder Singh Hooda GURGAON: Haryana Chief Minister Bhupinder Singh Hooda today said he was in favour of FDI in multi-brand retail from the very beginning. "FDI in retail will help farmers. They will get right prices of their produce because companies will purchase directly from them‚" Hooda told reporters here after the inauguration of Rapid Metro’s trial run. Consumers would also get quality products at comparatively cheaper rates
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Law of Agency WHAT IS AN AGENCY? Sec 135 of Contract Act‚ agency is the relationships which subsists between the principal and the agent who has been authorized to act for him or represent him in dealings with others. WHO CAN BECAME A PRINCIPAL OR AGENT? Any person who is 18 years old and above and who is of sound mind may be principal. As between the principal and third persons‚ any person can became an agent. BUT persons of unsound mind and who are below 18 years are not liable towards their
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compared to Qantas and are therefore able to achieve greater margins even when charging lower prices for flights. Virgin Blue flights are also considered no frills‚ meaning there are no on board meals‚ the headphones must be hired‚ there is only economy travel and there are no special waiting rooms or frequent flyer programmes. The biggest challenge facing the market is the introduction of Jetstar‚ as having two discount airlines will offer the consumer greater choice and cheaper options when they are deciding
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Unit 304 – Principles of marketing for travel and tourism Definition of Marketing: Marketing is a type of management tool and is responsible for meeting customer requirements; marketing is about getting the right products to the right people in the right place at the right time at the right price using the right promotion; for example airline companies such as easy jet and ryanair will try and invest their time and money by finding out what different type of customers want from the companies by
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travel agents aand its effectiveness CONCEPT OF TOURISM INTRODUCTION AND BACKGROUND OF TOURISM Tourism‚ as an industry has emerged as an instrument for employment generation‚ poverty alleviation and sustainable human development. Tourism promotes international understanding and gives support to local handicrafts and cultural activities. It is an important segment of the country’s economy‚ especially in terms of its contribution towards foreign exchange earnings‚ generation of additional income
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Rivalry Among Competitors In 2005 Saudi Arabia became a member of WTO and opened up the Saudi Telecommunications market to foreign competitors. The Saudi Arabian Telecommunication market has become increasingly competitive. In addition to competing on prices all the major competitors are striving to offer differentiated products and services aimed at increasing their market shares. The competition is apparent in the decline in STC’s income despite higher revenues. Table 1 – Level of Competition
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Agency Costs of Free Cash Flow‚ Corporate Finance‚ and Takeovers Michael C. Jensen Harvard Business School MJensen@hbs.edu Abstract The interests and incentives of managers and shareholders conflict over such issues as the optimal size of the firm and the payment of cash to shareholders. These conflicts are especially severe in firms with large free cash flows—more cash than profitable investment opportunities. The theory developed here explains 1) the benefits of debt in reducing agency
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