Best Business Tips

When producing minutes for a business meeting it is required that formal language is used. This is because minutes are records that are stored for business use. Minutes could be later used by an employee, as evidence to show a meeting has taken place or used in another discussion with other professionals. Formal language makes minutes of a meeting clear and make sense. The tone required for meeting minutes must be serious and formal. They do not need to be persuasive or intriguing, as they are a set record of the discussion within a meeting so they just need to be clear and understandable. The image of a set of minutes should include in the organisations set logo, colours and themes. This is so that it is easily recognisable as the organisations document. The presentation of a set of minutes must be structured into different agenda items, which may be in a table or just simple paragraphs so that the document is clear and people can easily navigate the parts they need to read.When writing an email, the language should be formal. This only tends to vary when the audience changes. For example, if an employee was to email another colleague, they may be friendlier and slightly informal. Formal language should be used to internal and external business people, so that it gives a good impression of the sender as an individual and shows professionalism of the company they work for. The tone required for emails are dependent on the recipients. For instance, when writing a sales email, a more persuasive tone will be used. When writing a complaint response, a more sympathetic and helpful tone will be used. However, a professional tone should be maintained in emails to keep up an organisations reputation and professionalism. The image of an email should have the organisations particular style of font and email signature to make it easily identifiable by other companies. It also makes the email look more professional to make people take the company seriously. The presentation of an email is required to be structured into paragraphs with a professional greeting and closing message. When integrating images into documents it's important to use the format and theme to use that is the same as the businesses. It is important to think about what the business needs to accomplish and what impression needs to be given to the reader. Whilst creating the image of the document that we want to reflect well on the business, it is also important to make sure copyright laws are not being breached. Therefore images and themes should be checked to make sure it is not that of another brand or business. A good image has to be unique and professional as it will be used often for all kinds of documents being sent to external customers and internal workers.An image can be inserted into a word document or PowerPoint by attaching an image saved onto the computer by clicking on the insert tab and pressing pictures. To easily locate the desired picture it is best to save it somewhere and name it something memorable. Another way of integrating images into documents is to copy and paste them by right clicking on the image and pressing the copy function, then right clicking where the image needs to be copied to and pressing paste. This is the quickest option however sometimes it doesn't always work and we have to save images to the computer instead. Corporate identity allows documents to have their own trademark. Corporate identity makes a businesses documents look professional, draws in more customers and makes them easily recognisable. This includes the company's logo, header and footer styles, theme colours, personalised document templates and font choice. When this is changed and updated it could affect previous documents with the outdated corporate identity by making them not recognisable as that company. It is important the corporate identity is only amended slightly and still maintains it's unique theme so it is always recognisable. It's also important to notify all staff members of these changes so that everyone is using the same corporate identity to avoid confusion. To avoid breaking copy right laws, a company must ensure they have their own corporate identity that is not the same as another company. To avoid breaking copy right laws, a company must ensure they have their own corporate identity that is not the same as another company. When designing or creating a document you must follow corporate identity by using the businesses fonts, logos and themes etc. If another businesses fonts, logos or themes are used in your businesses documents, it could appear as though your business is stealing another businesses identity. This looks like your business is trying to commit fraud or frame another business. In regards to the Data Protection Act, it is important that a persons personal information isn't included in letters or emails unless permission is given by that person. Data stored on documents about a person must be stored safely and securely and only accessed by permitted persons. Documents including data with someones personal information must not be shared with any one other than permitted persons and must be kept strictly confidential, else this is a breach of the act. To avoid breaching the Copyright laws, a company must not use images, ideas, or work etc. that is copyright protected. A document producer must check this before integrating images or information on to their documents. The same goes for intellectual property. Any original idea owned by someone or a company cannot be used by another person when protected by copyright.Intellectual property is something unique created by an individual or a group. To avoid breaching intellectual property legislations when producing business documents, it is important to make sure other peoples creations, e.g. names or brands are not included in the documents. This means documents must be strictly the creation of the company itself and not copied from another company's. Version control is when changes that are made to a file are traced with the details of who changed them, when they traced them, why they did and any problems enhanced or resolved when the change was made. Organisations do this to ensure that previous versions of a document are accessible as well as current ones to follow up problems occurring or to compare them. Organisational procedures for version control are that employees must always record their name, the date and what changes they have made to a document so that other employees are aware. This is crucial for tracing back to old documents and comparing them to recent versions. Other organisational procedures for version control is that old documents must be maintained in case newer versions may contain errors or having missing information. Security requirements for documents are having set passwords to gain access into a file so that only particular people have access to it. Other requirements are read only settings so that the author only has permissions to make changes to the document so that other people cannot edit and make unwanted changes to it. A document created for external use needs to have the recipient checked if any personal data is included within it to prevent breaching the data protection act if the email was to be sent to the wrong recipient. If personal data included on a document is being sent by mail, it is important the mail is stamped with ‘private and confidential' on the front to ensure safe delivery.

F&B Revenue Management

INSTITUTE OF HOTEL MANAGEMENT, AURANGABAD Synopsis – Food and Beverage Revenue Management: Implementation at „The Westin Hyderabad Mindspace? Kussh Raathi (H – 16045) â€Å"Submitted in Fulfilment of the Requirement for B. A. (Hons) in Hotel Management† THE UNIVERSITY OF HUDDERSFIELD, UNITED KINGDOM July 2010 food & beverage revenue management: implementation at ‘the westin hyderabad mindspace’ july 2010 DISCLAIMER This is an academic endeavour does not necessarily reflect the view of IHM – A and/or hotel chains discussed herein and are not binding on the Institute and/or the companies in any manner.This report is the intellectual property of the author and/or IHM – A and the same or any part thereof may not be used in any manner whatsoever, without express permission of the author in writing. The assignment does not aim to reveal any information confidential to the hotel companies discussed. No one provided significant profession al or personal review assistance to the person signing this disclaimer and report. This is all authors‘ work and does not necessarily represent the views of either IHM – A, India, or University of Huddersfield, United Kingdom, or any other party.Kussh Raathi (Year 3, H – 16045, Hotel Management, Institute of Hotel Management – Aurangabad) July 31, 2010 raathi, k. (h – 16045) page 2 of 16 understudy project food & beverage revenue management: implementation at ‘the westin hyderabad mindspace’ july 2010 ACKNOWLEDGEMENT As the author sums up the draft of this assignment, he reminisces appreciatively the contribution and extends his heartfelt gratitude to the following persons lacking whose support and help, this report could not have taken its present form: Mr.Anand Iyengar, Understudy Project Mentor and Academic Registrar, Institute of Hotel Management, Aurangabad (IHM–A), for providing me with the opportunity to work on an interes ting project like this, for his continuous support, feedback and guidance. A special thanks to Mr. Rahul Upmanyu, Revenue Manager, The Westin Hyderabad Mindspace, who is the most responsible for helping me in the compilation of this project report as well as the challenging research that lies behind it. Without his encouragement and constant guidance, I could not have finished this report.He was always there to meet and talk about my ideas, to proofread and mark up my papers and chapters, and to ask me good questions to help me think through my problems (whether philosophical, analytical or computational). Sincere thanks to the entire executive committee at The Westin Hyderabad Mindspace for their unconditional support, encouragement and guidance. Kussh Raathi July 31, 2010 raathi, k. (h – 16045) page 3 of 16 understudy project food & beverage revenue management: implementation at ‘the westin hyderabad mindspace’ uly 2010 ABSTRACT / EXECUTIVE SUMMARY Purpose â₠¬â€œ This paper aims to suggest the efficacy of revenue-management levers to improve a restaurants‘ revenue through process control for customer profitability through literature review and Seasonal Tastes as an excellent study site in south-India‘s largest luxury hotel. Design / methodology / approach – The research finds its basing upon a popular/busy coffee shop called Seasonal Tastes at The Westin Hyderabad Mindspace, Andhra Pradesh, India.The study presents the state-of-the-art of the literature review related to restaurant revenue management and a case study of a restaurant with high operational complexity and an extensive customer product and commercial service line. The literature review demonstrates the few empirical studies that have actually addressed the application of revenue management systems in the food and beverage industry. Much of this section comes from the article by Kimes, S. (2004). Findings – Seeking to augment revenue and also to imp rove customer service, the restaurant analyzed its operations and customers‘ characteristics.It found that its table-mix (mostly 6tops) was inappropriate for its customer base (mostly singletons, couples and groups of three/four). It also found that it could tighten up its post-meal procedures, particularly those involving settlement. The findings of the study show that the measurement of cost-to-serve provides specific and detailed customer information that enables a more comprehensive customer profitability analysis than the classical paradigm. Research limitations/implications – The result would lead to an increase in revenue (from higher occupancy) that paid for the increased capital costs in one year.The revenue improvement in this instance was to guests‘ advantage, since menu prices were not changed as part of this revenue management implementation. Originality/value – The paper includes a comprehensive review of literature and the empirical case stud ies by Kimes (2004), Thompson (2009, 2003, 2002), Kimes et al (2007), offers additional insights in food and beverage revenue management and analysis. Paper type – Research Project raathi, k. (h – 16045) page 4 of 16 understudy project food & beverage revenue management: implementation at ‘the westin hyderabad mindspace’ uly 2010 1. Introduction C efficiency. ross (1997), defines the concept as, ? the art and science of predicting real-time customer demand at the micro-market level and optimizing the price and availability of products‘. Conceptually, revenue management is a micro-economic concept about how to manage the relationship between supply and demand to maximize revenue potential. Simplified it means – selling the right product to the right customer at the right time for the right price on the right distribution channel with the best commission Revenue Management ReviewThe era has ended when revenue management can stand alone as a tact ical approach to rooms management, with technological and management support, revenue management must be and is being integrated into all aspects of hotel management marketing and operating strategies. Going beyond its role of managing room inventory, revenue management will consider total revenue contributions, including group business and its ancillary revenues. Because prices are essentially transparent, hotels will need to consider customer price elasticity and not simply match competitors‘ prices, with a goal of ptimizing prices. Beyond that, revenue management can be used to manage all of the hotel‘s revenue streams, in part by considering the interaction of room sales and food and beverage sales. While revenue per available room (RevPAR) has been a good measure of performance, a revenue generation index, which compares competitors‘ RevPARs, is even more useful. Even more sophisticated is a revenue opportunity model, which monitors the effectiveness of invent ory controls and analyzes the effects of revenue management decisions.Perhaps most promising is a customer-focused approach that tracks customers‘ purchases and targets promotions based on an understanding of customers‘ responses to prior offers. Hotels can benefit by increasing revenues and profitability through revenue management by optimally matching demand to available supply (rooms) to accommodate the most profitable mix of customers at each property. In the lodging industry, revenue management is the process of selectively accepting and rejecting customers by rate, length of stay and arrival date to maximise revenues.The process of revenue management generates incremental revenues (Kimes 1999; Cross 1997). raathi, k. (h – 16045) page 5 of 16 understudy project food & beverage revenue management: implementation at ‘the westin hyderabad mindspace’ july 2010 2. Theoretical Framework / Literature Review From its origin in the airline industry nearly sixty years ago, revenue management has expanded to other hospitality industries, notably lodging and rental cars. More recently, ? nontraditional? ervice industries, such as restaurants, golf courses, and casinos, have begun to adapt and apply revenue management principles. Need for a holistic approach towards RM Revenue management of hotel inventory has long been the practice for hoteliers worldwide, both large and small, chain and independent. Hotel operators understand and accept the need to forecast customer demand at some level of detail and recommend product availability conditions that will deliver the maximum revenue based on that demand.However, for the most part, traditional hotel revenue management is focused purely on maximizing sleeping room revenue with no regard for any other revenue associated with the hotel guest. Many companies are now realizing that there is a strong need to adopt a more holistic approach to revenue management across the enterprise. This involve s two distinct components. First, there is a need to capture and track all revenue associated with hotel guests in order to segment customers more discretely based on their value—this can come from food and beverage, spa, event venues or, in the case of a casino/hotel, gaming.Second, and equally important, operators need to begin to apply the same principles of revenue management employed at the hotel to each discrete revenue source—there has been a strong push for revenue management in restaurants, spas, event venues and even on the casino floor. (HSMAI Article, published on March 10, 2010) While many hotel companies have implemented loyalty programs, the real opportunity lies in the ability to capture data about the customer beyond the hotel in order to truly capture the guest‘s profitability, not the room revenue generated.There has been a lot of altercation lately about the move from REVPAR to GOPPAR, TOTALPAR or some other such acronym; this is where those c ompanies who practice Total Hotel Revenue Management will win, in realizing it is not about the room, it is all about the guest. raathi, k. (h – 16045) page 6 of 16 understudy project food & beverage revenue management: implementation at ‘the westin hyderabad mindspace’ july 2010 Restaurant Revenue Management (RRM) Revenue-management tools can be used by restaurant managers to analyze the ffects of process-control changes. A dinner house seeking to shift demand and to achieve greater facility utilization during busy times analyzed the factors that caused delays in the service process—and thus increased the guest queue. Although the restaurant was able to hasten the actual dining time, much of the slack was found in the processes that occurred before and after the actual dining period. Moreover, the restaurant managers were able to analyze customer-arrival and market-mix data in relation to the restaurant‘s table mix.Seat occupancy was improved by mat ching the table arrangement to the customer mix, and table turns were increased by improving the kitchen operations so that front-of-the-house functions could be tightened up. In particular, end-of-meal steps were speeded up. As a result of its process improvements, the restaurant enjoyed revenue growth greater than that of comparable restaurants. (Bertsimas and Shioda, 2003) The challenge of a floor manager is to decide when and where to seat each arriving customer.If there are only tables of four available and a party of two enters, does he seat the party at the larger table or reserve it for a larger, more revenue-producing party? In addition, if the restaurant takes reservations, he needs to further decide how to seat walk-in customers so that they would not take tables away from the reservation customers while considering the possibility of no-shows. These are important practical issues for restaurant managers, where in some cases a good floor manager can make the difference of couple of hundred dollars per night (Kimes, 1999).Thus, a tool that can help floor managers better make these decisions would be of significant value to a restaurant. Genesis / Background Nestled amidst the emerging central business district of Cyberabad-Madhapur, the fastest growing commercial destination of Hyderabad, also known as the ? new Silicon Valley of India? , The Westin Hyderabad Mindspace (TWHM) identifies myriad possible aspects that can offer a sense of wellness to business travellers when they stay at the hotel. The author captures the unique ? wellness‘ service approach that the hotel has on offer. The 428-room property is the largest one in Hyderabad.Opened in December 2009, the property managed an average occupancy of 50 per cent until March end. The revenue share raathi, k. (h – 16045) page 7 of 16 understudy project food & beverage revenue management: implementation at ‘the westin hyderabad mindspace’ july 2010 of the hotel is 70:30 for room/F&B and banquet/conferences, respectively. Effectively, it is being positioned as the benchmark that the brand wants to set in India and that it is known for internationally. Nancy London, Vice President – Global Brand Leader, Westin, explains, â€Å"The idea is to preserve wellness in travel.Customers from various facets could derive this wellness factor where they interact in our hotel as our guest. So, each and every aspect has to offer that very essence of wellness that Westin stands for. † 3. Approach / Methodology: A Case Restaurant operators can manipulate two main strategic levers to manage revenue: price and meal duration. Price is a fairly obvious target for manipulation, and many operators already offer price-related promotions to augment or shift peak-period demand (e. g. , early bird specials, special menu promotions).More-sophisticated manipulations of price include daypart pricing, day-of-week pricing, and price premiums or discounts based on party or table size. Managing meal duration (i. e. , speeding table turns) is a bit more complicated, as discussed ahead. For example, meal duration depends in part on the efficiency of the restaurant‘s service cycle, as well as on the foible of customer arrival patterns and diners‘ deciding to linger (or not) after the meal. However, as explained further, duration control has great potential in a revenue-management strategy.To develop an RRM program, managers should (1) establish the baseline of performance, (2) understand the drivers of that performance, (3) develop a revenue management strategy, (4) implement that strategy, and (5) monitor the strategy‘s outcomes. This paper discusses and illustrates how to establish the baseline and understand its drivers, and how to develop a revenue-management strategy. The article starts off with a brief introduction to revenue management, followed by a description of the restaurant that provided data for this study. In so oing, the author analyzes the restaurant‘s baseline performance, including seat occupancy, revenue per available seat hour (RevPASH), party size/mix, and dining duration. The author also analyzes/examines the possible causes of performance. After reviewing the revenue management strategies for duration control the author talks about how managers could implement those strategies. The article concludes with an evaluation of the said restaurant‘s revenue-management strategy and recommendations for how other restaurateurs can implement revenue management. raathi, k. (h – 16045) page 8 of 16 understudy project ood & beverage revenue management: implementation at ‘the westin hyderabad mindspace’ july 2010 With all the data that are collected by the POS software, a revenue-maximizing seating policy can be utilized. The present paper stems from the belief that restaurants can increase their revenue by optimizing their nesting decisions, i. e. , when to save tables in anticipation for larger parties, even when there are smaller parties currently in queue. To control duration, managers can use either internal means (i. e. , those that do not involve customers) or external means (that do involve customers).The chief internal duration-control methods involve regulating and redesigning service processes (including speeding up service to promote customer turnover and providing an optimal table mix), forecasting customer arrivals (i. e. , forecasting the timing and party-size mix of arriving customers), and implementing inventory controls (usually through overbooking, if a restaurant takes reservations). External methods include booking fees or guarantees (e. g. , having guests guarantee reservations on a credit card) and such behavioural approaches as restricting the length of time that customers can use the table.Not surprisingly, most firms have chosen to manage duration internally, so as not to risk dissatisfied customers. The Study Site As part of the research the author developed an RRM system for an extensive, casual coffee shop in Mindspace, Hyderabad. Seasonal Tastes, a 208-seat restaurant, serves regional Indian and international favourites, and also features a live show kitchen concept that has Chefs actually interacting with guests while serving. The oriental theme show kitchen here takes authenticity to new heights while the centre piece bread oven bakes freshness into every slice. Its average check is approximately $18 (INR 840/-).The Japanese Sushi counter, the cold plate dessert counter, the SuperFoodsTM offering for breakfast and the Spa cuisine make the a-la-carte options here as appetizing, the roasted beef and goat cheese gateaux, the fishand-chips, the roasted lamb chops and the mango cheese cake are signature dishes. The restaurant is open 24 x 7 and has a manager always on duty. The next section describes the type of data and analysis necessary to establish a baseline, the tools that can be used to under stand actual service-cycle performance and operational tactics that are part of a revenue-management strategy.The researcher uses his experience at Seasonal Tastes to illustrate the discussion. raathi, k. (h – 16045) page 9 of 16 understudy project food & beverage revenue management: implementation at ‘the westin hyderabad mindspace’ july 2010 4. The Five-step Revenue Management Approach The managers and the author used the five-step process explained here to develop a revenue management strategy for the restaurant. Rather than attempt price-related promotions, the focus was on internal revenue management, specifically related to the duration of the dining experience.Although the data presented here are specific to Seasonal Tastes, the process and analyses described can be applied to any restaurant. Step 1: Establish a Baseline The first step in the process was to establish the restaurant‘s baseline performance. Baseline statistics were drawn from five sets of four-week periods of point-of-sale (POS) data and detailed time studies over the same time-frame. Using these data, an analysis of average check per person, RevPASH, seat occupancy, meal duration (from both the POS data and the time studies), and the party-size mix by day of week and hour of day was done.The POS data showed that the average check per person for the 208-seat main dining room was approximately near about INR 840/- (refer Exhibit D). Calculated by day of week and hour of day, average check ranged from INR 505/- at breakfast to INR 1,324/- at brunches on Sundays (Considering only the main meal periods, viz. Breakfast, lunch and dinner). The highest check averages occurred on Friday and Sunday afternoons, while the lowest checks occurred for lunch on Wednesdays. (Since breakfast is a part of the room plan its APC generally remains the lowest) RevPASH provides a good estimate of seat occupancy combined with the average check.This statistic is useful in two ways, the f irst being the important matter of how much revenue the restaurant is realizing in each time period. RevPASH was calculated by first determining the total hourly revenue from the main dining room for each day of the week and then dividing the hourly revenue by the 208 covers, as shown in Exhibit E. RevPASH ranged from INR 207/- on Mondays at Breakfast to INR 3,208/- on Fridays at Lunch. The highest RevPASH of INR 5,959/- was recorded on Sundays between 11:00 to 16:00 hours and on Fridays from noon to 15:00 hours.The lowest RevPASH was experienced mid-week postbreakfast, before noon and late-night. raathi, k. (h – 16045) page 10 of 16 understudy project food & beverage revenue management: implementation at ‘the westin hyderabad mindspace’ july 2010 SEASONAL TASTES? BASELINE The first thing done to determine the baseline at ? Seasonal Tastes‘ was collection of data from the POS system. The resulting data were analyzed to develop hourly arrival rates, meal tim es, and RevPASH. All results presented in this paper are from January 2010 – May 2010.The data was extracted on the date, the check number, the transaction time, the party size, and the transaction amount. Each party at the restaurant usually had multiple transactions for their meal-including when the check was opened, when orders were entered, and when the check was closed. (In a few cases there were just two transactions: when the check was opened with the entire order and when it was closed at the end of the meal. Any voided checks were excluded from the study. ) The usable data was then transferred to Microsoft Excel, where the multiple transactions were condensed into a single record for each party.Each record contained information on the date, the check number, the starting time, the closing time, the party size, and the check amount for each party. Data analysis to find the number of hourly arrivals, the mean and standard deviation of meal duration, and the hourly RevP ASH was performed using Microsoft Excel. SUMMARY OF FINDINGS It was not at all surprising to find that Sunday brunches and Wednesday – Thursday nights were busy and profitable, but the low RevPASH and head counts that we recorded for the other nights and all lunch periods were unexpected.The average meal time of almost an hour and a quarter seemed right, but we were alarmed at the high standard deviation of the meal time. Armed with this knowledge and the results of the time study, the author decided to proceed to the next step and study the possible causes of the aforesaid findings. Step 2: Understand the Causes A variety of tools can be used to help managers understand the underlying causes behind operational problems, including service blueprints, process analysis, and fishbone diagrams. Those techniques are fairly simple to implement and have been widely used in total-qualitymanagement programs.Service blueprints can be used to graphically illustrate a service process. Th e steps in the process are mapped and the connections between steps are identified. One of the key strengths of the service blueprint is the identification of potential delays and failure points. raathi, k. (h – 16045) page 11 of 16 understudy project food & beverage revenue management: implementation at ‘the westin hyderabad mindspace’ july 2010 THE CAUSES AT SEASONAL TASTES A blueprint for Seasonal Tastes was developed so as to identify potential sources of failure.It was noticed that the biggest problem at Seasonal Tastes was the length and variability of dining time. Reducing the mean dining time would be difficult without first reducing the standard deviation of the meal time. The consensus reached upon was that if variation could be reduced, the average meal time could also be reduced. Possible Causes Low seat occupancy Equipment Table mix Methods Personnel Customers Hard to find Reneging Materials Wait list Meal duration and variation Point-of-sale termina ls Credit-card authorization Service stations Restaurant layoutBussing Training Hosting Number Communication Commitment Compensation Management Hosting Training Seating Greeting Food and beverage delivery Cooking Check processing Pre-bussing Check drop Check pick-up Check processing Folder drop Management Pre-bussing Communication Hosting Number Commitment Compensation Management Choose to linger Unsure how to behave Party size Trays Payment and Credit-card folders departure authorization Point of sale terminal Training Number Commitment Compensation Training Number Commitment Compensation ManagementChoose to linger Unsure how to behave Uncomfortable Check folders Bussing Folder pick-up Stacking space Service Stations Bucket, trays Cleaning supplies New place settings The Problem: High standard deviation of meal duration Figure K: Possible Causes of Poor Performance at Seasonal Tastes raathi, k. (h – 16045) page 12 of 16 understudy project food & beverage revenue management: implementation at ‘the westin hyderabad mindspace’ july 2010 Step 3: Developing a Revenue-management Strategy The busy (hot) and slow (cold) periods by day of week and meal-period were first identified.Hot periods were defined as times when guests were waiting to be seated, and the remaining periods were cold. The restaurant had ten hot hours per week, which became the focus of the revenue management program. The two major goals were to reduce dining duration by ten minutes and to increase seat occupancy by 10 percent during the hot periods. An ancillary goal was to reduce the standard deviation of total dining time by 30 percent. It was expected by these changes to increase revenue by at least 5 percent during the ten hot hours, as explained further.The goal of increased seat occupancy could be achieved by attracting more customers, providing a better table mix so more customers could be accommodated, and reducing the dining duration so more customers could be served. The restaurant already had excess demand on Sunday Brunches and Friday Lunches (as indicated by the waiting lines). More worrisome, because the restaurant‘s current table mix and dining duration would not allow the restaurant to serve additional customers, the manager‘s focus was on improving the table mix and reducing dining duration.THE FIVE PERCENT (5 %) SOLUTION To assess the revenue effects of increased occupancy and decreased dining duration, we first calculated the annual revenue for the hot periods. To review, during the ten hot hours each week, the main dining room had an average seat occupancy of 63 percent, an average check of $18 (INR 840/- approx. ), and an average dining time of seventy-five minutes. Annual sales for the restaurant in January – May 2010 totalled (INR 20,699,517/-). The restaurant took in about one-fourth (INR 5,000,000/- approx. ) of its monthly revenue during its ten hot hours.If hot seat occupancy increased from 50 percent to 60 pe rcent, even if dining duration remained the same, monthly revenue would potentially increase by 7. 3 percent (INR 1,511,065/-). Beyond that, if dining duration could be decreased from seventy-five minutes to sixty-five minutes, even if seat occupancy remained the same, the annual revenue potential would increase by 3. 8 percent (INR 786,582/-). If both factors could be changed (i. e. , seat occupancy increased and dining duration decreased at the same time), the annual revenue potential would increase by 11. 9 percent (INR 2,463,243/-).Even if only half of the revenue raathi, k. (h – 16045) page 13 of 16 understudy project food & beverage revenue management: implementation at ‘the westin hyderabad mindspace’ july 2010 potential could be achieved, the restaurant could nevertheless achieve better than a 5 percent increase in annual revenue. Step 4: Possible / Probable Implementation Once the strategy was developed, the hard work of implementation begins. In keeping with the strategy, implementation should focus on training staff, convalescing table mix and on improving the efficiency of service delivery.TABLE MIX An optimal table mix, one that matches party-size mix as closely as possible, would allow this restaurant to serve an increased number of customers with no increase in the number of seats, thereby boosting seat occupancy during busy periods. UNCERTAINTY OF DURATION A restaurant who has dealt with the arrival-time issue must be able to predict meal-length, because this controls the number of tables available. With this information, restaurants can decide which reservation requests to accept, and restaurants with a large walk-in trade will be better able to provide accurate estimates of waiting time for guests in the queue.In addition, a reduction in meal duration during busy periods can increase seat occupancy and table turnover and thus can lead to increased revenue. As stated at the outset, one of the difficulties of implementing re venue management in restaurants is the fact that their explicit unit of sale is a meal (or an event) rather than an amount of time, although one can also argue that the true measure of the restaurant‘s product is time. While the likely length of a meal can be estimated, its actual duration is not firmly set. Reduced dining times can have considerable revenue potential during high-demand periods.Here, Seasonal Tastes, a restaurant with 208 covers, an approx. $20 average check, an average one-hour twenty minutes dining time, and a busy period of three hours per day. During busy periods, defined as those when customers are waiting for a table, a decrease in dining time can increase the number of customers served and the associated revenue. Under the example, the restaurant could theoretically serve approximately 400 covers during its three-hour busy time, assuming all 208 covers were occupied two times for exactly eighty minutes each time.That would result in revenue of $8000. If the average dining time could be raathi, k. (h – 16045) page 14 of 16 understudy project food & beverage revenue management: implementation at ‘the westin hyderabad mindspace’ july 2010 reduced to 50 minutes, the potential number of customers served would increase to 750, and the potential revenue would increase to $15,000, an increase of 18%. The question of how customers would react to such changes, however, causes restaurant operators to approach time decreases with caution. Step 5: Monitor OutcomesAs with much business practice, the success of revenue management cannot be assessed without measuring changes. After establishing the baseline and implementing revenue management, operators must develop a system to measure financial, operational, and customer-satisfaction performance. 5. Summary and Conclusion By implementing revenue management tactics, Seasonal Tastes, would be able to increase revenue by approximately 5 percent. The improved table-mix, the chang es in the service delivery, and the improved training led to the improvement in the restaurant‘s performance.Seat occupancy and RevPASH would increase, at the same time leading to a decrease in dining duration and variability, and thus an increase in revenue. Other restaurant could realize similar results by carefully analyzing their current performance, determining the causes of that performance, and developing appropriate strategies to improve it. Changes in table-mix and problematic service-delivery processes hold particular promise, but only with proper implementation that emphasizes training, employee buy-in, and enhanced management. 6. References o o o Anderson, C. and Xie, X. (2010), ?Improving hospitality industry sales: twenty-five years of revenue management? , Cornell Hospitality Quarterly, Vol. : 51, No. : 1, pg. : 53 – 69 Bertsimas, D. and Shioda, R. (2003), ? Restaurant revenue management? , Operations Research, Vo. : 51, No. : 3, pp. : 472 – 486 Bh ar, S. (2010), ? Creating a culture of wellness? , Express Hospitality, June 15 – 30, 2010 Issue, Section: Spotlight, Management Article, online available at: raathi, k. (h – 16045) page 15 of 16 understudy project food & beverage revenue management: implementation at ‘the westin hyderabad mindspace’ july 2010 etrieved on June 16, 2010 at 11:15 hours o o Cross, R. (1997), ? Revenue Management? , London: Broadway Books HSMAI Online article, Anon. (2010), ? The need for a more holistic approach to revenue management? , published on March 10, 2010, available at retrieved on June 12, 2010 at 11:01 hours o o o o o o o o o o o o o o o Hwang, J. (2008) ? Restaurant table management to reduce customer waiting times? , Journal of Foodservice Business Research, Vol. : 11, No. : 4, pp. : 334 — 351 Kimes, S. and McGuire, K. , (2001), ? Function-space revenue management? , Cornell Hotel and Restaurant Administration Quarterly, Vol. 42, No. : 33, pg. : 33  œ 47 Kimes, S. and Robson, S. (2004), ? The impact of restaurant table characteristics on meal duration and spending? , Cornell Hotel and Restaurant Administration Quarterly, Vol. : 45, No. : 4, pg. : 333 – 348 Kimes, S. and Thompson G. (2004), ? Restaurant revenue management at Chevys: determining the best table mix? , Decision Sciences, Vol. : 35, No. : 3, pg. : 371 – 392 Kimes, S. Barrash, D. and Alexander, J. , (1999), ? Developing a restaurant revenue-management strategy? , Cornell Hotel and Restaurant Administration Quarterly, Vol. : 40, No. : 5, pg. 18 – 31 Kimes, S. , (1999), ? Implementing restaurant revenue management: a five-step approach? , Cornell Hotel and Restaurant Administration Quarterly, Vol. : 40, No. : 3, pg. : 1 – 7 Kimes, S. , (2003), ? Revenue management: a retrospective? , Cornell Hotel and Restaurant Administration Quarterly, Vol. : 44, pg. : 131 – 139 Kimes, S. , (2004), ? Restaurant revenue management: implementation at Chevys Arrowhead? , Cornell Hotel and Restaurant Administration Quarterly, Vol. : 45, No. : 1, pg. : 52 – 69 Kimes, S. , (2004), ? Restaurant revenue management? , CHR Reports, Vol. : 4, No. 2, pg. : 1 – 36 Noone, B. Kimes, S. Mattila, A. and Wirtz, J. , (2007), ? The effect of meal pace on customer satisfaction? , Cornell Hotel and Restaurant Administration Quarterly, Vol. : 48, No. : 3, pg. : 231 – 246 Sill, B. and Decker, R. (1999), ? Applying capacity-management science: the case of Browns restaurant? , Cornell Hotel and Restaurant Administration Quarterly, Vol. : 40, No. : 3, pg. : 22 – 32 Thompson, G. (2002), ? Optimizing a restaurant‘s seating capacity: use dedicated or combinable tables Cornell Hotel and Restaurant Administration Quarterly, Vol. : 43, pg. 48 – 59 Thompson, G. (2003), ? Optimizing restaurant-table configurations: specifying combinable tables? , Cornell Hotel and Restaurant Administration Quarterly, Vol. : 44, pg. : 53 – 61 Thompson, G. and Kwortnik, R. Jr. (2008), ? Pooling restaurant reservations to increase service efficiency? , Journal of Service Research, Vol. : 10, No. : 04, pg. : 335 – 348 Thompson, G. and Sohn, H. (2009), ? Time-and capacity-based measurement of restaurant revenue? , Cornell Hospitality Quarterly, Vol. : 50, No. : 04, pg. : 520 – 539 raathi, k. (h – 16045) page 16 of 16 understudy project

A written project on the theme of one selected characteristic/attribute associated with the Business Entrepreneur and researched in the context of one noteworthy entrepreneur

Methodology: This study was based on the integration of the secondary research. Practical evidence demonstrates the main secondary evidence in relation to the Facebook case study. Findings: The main findings demonstrate that innovation is not necessarily sourced from a discipline. To a large extent, it requires creative thinking and environment. Furthermore, it has been found that the process of innovation is not always structured. This suggests that in some cases, there are elements of experimentation and accident. Introduction This paper looks at the investigation of innovation in the contemporary business world. In details, this paper includes exploration of the actual concept of innovation within the context of entrepreneurship. This research will focus on the examination of Facebook and its founder, Mark Zuckerberg. This would serve as the practical evidence of the innovative product and/or service that has formed the contemporary social media business. Rogers, (1998, p.6) has defined innovation â€Å"as the process of introducing the new ideas to the firm which result in increased firm performance† . Within the context of this paper, innovation is attributed to the new social media product that has been invented and, therefore, resulted in the startup and further success of Facebook as a company. This has been a transformational innovation since it resulted in the transformation of the interactive, social media platform. This paper will discuss the actual process of this transformation. This implies that the majority of individuals have been reluctant to adopt the innovation, after its initial introduction (Rogers, 1998). At the moment, Facebook has already around 1 billion subscribers worldwide, who update their statuses, on a daily basis. Mark Zuckerberg, the founder of Facebook, is one of the greatest entrepreneurs of the modern times. Facebook employs around 3,200 employees and is known worldwide. The company’s market value is $ 75 billion-$ 100 billion (Hoovers, 2012). This study will investigate the main factors that innovation should possess, and the reasons behind its success among the consumers. The main critical analysis is going to be presented in the literature review. This will lay the foundation for further investigation. Practical evidence will demonstrate the case study in relation to the researched theories. Finally, the findings from the literature review and practical evidence are going to be juxtaposed in the analysis section. Literature Review Recent research suggests that innovation is an outcome of creativity. This implies that innovation may occur, when a person realizes stimulating and new ideas, which he or she, has (Austin, Devin and Sullivan, 2012). Some companies tend to shape the work environment in order to produce the conditions that work well in terms ofthe development of the creative ideas. This is primarily associated with the integration of the particular practices, which allow the person to relax, and, therefore, generate ideas. Hopkins, (2010) suggests that innovation is a discipline. This implies that management of innovation may be compared with management of quality, where each detail is essential. This also implies that, after generation of the idea, it is important to focus on the efficient development of production, supply chain, distribution and marketing. The process of innovation development is also interlinked to the production of business model. It is especially intensified in the context of entrepreneurship. Drucker, (2002), suggests that innovation is sourced from the knowledge and hard work. This suggests that in order for innovation to be successful, it is necessaryto monitor the market, to interact and seek out opportunities to seize. As a result,, there is a small chance for accidental innovation that might emerge (Austin, Devin and Sullivan, 2012). However, given the conditions of contemporary market and situation, this chance is slim. This is correlated to the evolutionary theory, which suggests that the process of innovation production is interlinked with the dynamism of the environment and acquired knowledge and skills. Furthermore, it was added that the success of innovation is sourced from the learning abilities and behavioural traits of the entrepreneur. This implies that the values, cognition and the aims of the individual directly impact the process of innovation development (Metcalfe, 1998; Dosi, 1997). According to complexity theory, Anderson, (1999) states that the creative ideas are sourced from the environmental changes. This suggests that individuals and companies tend to take into account the environmental dynamism, thus shifting their perceptions, according to the global and/or domestic changes. This is further interlinked with the evaluation of the information, which is sourced from these dynamical changes. This, in turn, results in the development of the innovations. This theory is based on the estimation that the innovation should evolve, as part of the constant environmental dynamics. Contrary to this, Brown and Eisenhardt, (1998) suggest that innovation is driven by experimentation rather than evolution. This implies that the individual should always experiment, in order to create some innovative solutions. This is attributed to the â€Å"trial and error† pathway. This pathway is regarded to be quite effective as demonstrated in the recent research. It is primarily interlinked with the hard work and discipline, which is noted in the study by Hopkins, (2010). Damanpour, (1992) disagrees and states that there is no definite practice that would allow efficient production and management of the innovative products and/or services. This suggests that there are four main factors that affect the possible success of the innovation. These factors are attributed to the type of innovation, stage of innovation, scope of innovation and organization. Given the technology industry, the scope of innovation is not easy to define at the startup stage of innovation. It has been identified by Rothwell and Dodgson, (1995) that there is a small difference between the development of innovation in small companies and large corporations. It has been estimated that the process of innovation development in small companies tend to be of a behavioural nature, whereas in large corporations – of a materialistic nature. Additionally, it has been added that the process of the development of innovation in the smaller companies tends to be dependent on the industry. It is assumed that, in the technology industry, the degree of innovation’s success is increased, due to the large pool of opportunities. However, as Hopkins, (2010) has pointed out, it does require a discipline. Freeman and Soete, (1997) agree that the innovative products and services depend on the scope of RD activities. This suggests that there is a greater chance for larger corporations to implement the innovation, due to the large available funds. However, as the recent research demonstrates, there are a lot of entrepreneurs, who have been successful in production of innovation with limited investments (e.g. Mark Zuckerberg; Steve Jobs). Littler, Leverick and Bruce, (2003) argue that the innovative product development is associated with high risk, which is dispensed across the production and Research and Development areas. As the result, it has been proposed in the same source that increased collaboration is required in order to achieve the objectives, in relation to the innovative solutions product. These scholars have also added that the main factors that affect the increase of the risk degree is attributed to the utilization of the new technology. Practical Evidence This section focuses on the presentation of the practical evidence of the key theories that have been analysed in the literature review section. This section is based on the integration of the case study about Facebook and its founder, Mark Zuckerberg. Mark Zuckerberg, 28 is the founder of the world’s largest social networking website, Facebook. It was launched back in 2004, in the dorm room of Harvard University (CrunchBase, 2012). Prior to this, Mark Zuckerberg has tried to launch another two programs, namely a music recommendation program, Synapse and peer-to-peer client, Wirehog. However, he left them at the startup point (TechCrunch, 2012). Along with that, Mark Zuckerberg also launched Coursematch and Facemash programs during his studies at Harvard University. Facebook was originally developed for students to interact, however it has been further extended to a global scale. As a result, Facebook has become a success internationally (New Yorker, 2010). Prior to the development of Facebook, Mark Zuckerberg studied computer science, however, he has another degree in psychology. This suggests that he understands both the computer technology and human behaviour (New Yorker, 2012). With regard to the personal characteristics, Mark Zuckerberg has been described as quiet, unassuming gentleman, who focuses on hard work and achievement of the objectives. This shows that he doesn’t take anything for granted, thus focusing intensively on further development of Facebook operations. To date, Facebook has generated $1.26 billion, however, it has reported a recent loss, which is associated with the inability to develop the mobile advertising sector (CNCWorld, 2012; Information Week, 2012). The primary source of income is attributed to the advertising since Facebook is free to subscribe. This implies that there is still room for improvement in the mobile advertising area, whereas the main competitors already enjoy the generated profits fr om this sector. The mobile advertising area has been overlooked by Mark Zuckerberg, given the recent rise in the access to the Internet from mobile phones (New Media Trends, 2012). This implies that the modern consumers tend to utilize the mobile applications more, which is supported by the recent data that states that the number of mobile Internet users has doubled. Information Week, (2012) demonstrates that there have been 75 % of social networking users, who have accessed Facebook via their Android-supported mobile devices in U.S.A, in March, 2012. Facebook management agrees that there is still a room for development however, the main problem is attributed to the inability to provide high resolution advertisements on small mobile screens (Information Week, 2012). This is assumed to be surprising, in the light of Mark Zuckerberg’s ability to develop the new social media platform, during the rise of the Internet. This implies that Mark Zuckerberg tends to seize the opportunities, once they arise. The main aim of Facebook, to date, is regarded to be a willingness to make the globe a more open place, by means of social interactions (New Yorker, 2010). However, contrary to this, Mark Zuckerberg, himself, is characterized as being private, thus not sharing a lot of information about himself. This is supported by the fact that he does not give a lot of interviews and/or make public appearances (CrunchBase, 2012). With regards to the work environment, that is managed in Facebook headquarters, it has been estimated in the recent research that the workers are driven to educate themselves while working. This is interconnected with the fact that Facebook was founded at the University so, Mark Zuckerberg is trying to transform the workplace into the educational institution in order to drive the creativity’s emergence. The design of the Facebook offices promotes openness as the key feature of Facebook program (Business Insider, 2009). This implies that employees are not limited by the cubicles’ boundaries. Additionally, the working hours are flexible. This suggests that the employees may choose their own hours in order to deliver the best product solutions possible. Furthermore, Mark Zuckerberg tends to promote openess in interaction, suggesting that the employees are able to walk around the headquarters, thus interacting with others (Business Insider, 2009). The main aim of this is t o promote the development of the creative ideas, which would be applicable to the Facebook (Business Insider, 2009). Along with that, the main negative comments have only been attributed to the distant location of the Facebook headquarters. Additionally, some employees have stated that it is difficult to concentrate while working in the open areas. Therefore, the promoted openess does not work for everybody (Business Insider, 2009). Analysis This section is based on the production of the links between the main theories and the key findings, derived from the practical evidence. It had been estimated that Facebook was developed, during the period, when internet, as a communication channel was starting to gain the popularity amongst the public (New Media Trends, 2012). This shows that Mark Zuckerberg had been following the evolutionary theory related to the innovative development and given his specialized knowledge and learning abilities, he scanned the environment for opportunities and dynamic changes (Anderson, 1999). In 2004, there was a limited amount of social networking platforms, presented on the market that would allow enjoyable social interaction. As a result, he developed Facebook in order to meet the educational needs, with the limited resources available. It was based purely on the knowledge and skills he had obtained. One of the main benefits was that he could combine his technology-related knowledge with the education degree he received in psychology (Time, 2012). This has allowed the development of the social networking platform that would sui t the needs of consumers. Furthermore, the theoretical frameworks suggest that there is supposed to be a creative and relaxing environment in order to produce the innovative idea. At that time, Mark Zuckerberg has been studying in the university, which suggests that he was associated with the young and educated people with a lot of aspirations (New Yorker, 2010). Normally, in this environment, the most innovative ideas are born, so, this supports the theoretical evidence. Evolutionary theory is also supported by the fact that Mark Zuckerberg also tried to integrate other social media products but he failed to succeed with some of them. This demonstrates a certain degree of learning, integrated in the process of the innovation development. This implies that after the failure of his previous innovations , he has advanced the process of innovative solutions production, based on the mistakes he had made (CrunchBase, 2012). Additionally, the process of innovation production has been supported by the acquired and/or natural behavioural traits of the entrepreneur. This suggests that Mark Zuckerberg has always been a hard worker whilst eliminating the need â€Å"to take everything for granted† (Time, 2012). Therefore, he has always been focused on the achievement of his objectives. The elements of the accidental innovation may be followed once Facebook had become popular outside the university. This shows that, despite the primary educational objectives related to the Facebook platform, Mark Zuckerberg accidentally met the needs of a wider international audience (Austin, Devin and Sullivan, 2012). This was the starting point of Facebook’s success. At the moment, being a large corporation, Facebook constantly updates the website with new applications, as a result of the evaluation of the consumer needs and environment. However, some subscribers tend to be confused with the constant changes that Facebook integrates (Guardian, 2010). In this case, the aspects of experimentation are demonstrated. These can be traced inthe theory of â€Å"trial and error†, which suggests the evaluation of the most profitable products and services based on experimentation (Brown and Eisenhardt, 1998). This is proved to be effective, however it also drives a large degr ee of confusion amongst the subscribers. Another critical aspect is attributed to the problem with the mobile advertising, which has resulted in the decrease of the revenues of Facebook, recently (Business Insider, 2012). This suggests that management of the company failed to scan the environment in order to integrate the necessary solutions with regards to the emergence of the new trend. As the result, this has negatively resulted in the poor company’s performance (Business Insider, 2012). This is said to be especially surprising, given the ability of Mark Zuckerberg to seize the opportunities and the scope of the modern Facebook corporation. This is supported by the literature review findings, which suggest that it is much easier for larger corporations to integrate innovative solutions due to the large funding available for Research and Development activities (Freeman and Soete, 1997). In this case, at the moment, Facebook failed to do that. Recent data demonstrates that another reason behind this, is attributed to the lack of clear strategic vision. This implies that Mark Zuckerberg aims at the delivery of accidental innovations rather than the result of a clear strategic vision (Business Insider, 2009). He expects the innovation to appear as a result of the management of the creative environment. It has been estimated in the literature review that it is necessary to promote the discipline during the process of innovation development (Hopkins, 2010). However, with regards to Facebook’s work conditions, it is not necessarily applicable. This implies that the company aims to integrate open interactions and flexible working hours. This is said to be appealing for the majority of employees. However there are some employees, who state that it is hard to concentrate while working in this sort of environment. As a result, Facebook aims to promote the casual and relaxing environment, which would allow development of creative solutions. Conclusion This paper was aimed at discussing research on innovation within the entrepreneurship context. It focused on the exploration of the Facebook case and its founder, Mark Zuckerberg. The main theories have indicated that there are several patterns of innovation development, namely accidental innovation production, evolutionary, experimental and complexity theories. The Literature review has also demonstrated that environment also plays a large role in the process of innovation development. Other scholars suggest that the success of innovation depends on the entrepreneur’s personal characteristic and actual characteristics attributed to the innovation. The main findings, based on the analysis of one of the greatest entrepreneurs, have demonstrated that the innovation’s production process incorporates elements of accidental process and both experimental and evolutionary processes. Additionally, it has been estimated that the dynamics of the environment and personal characte ristics of the entrepreneur tend to play a large role in relation to the worldwide success of the innovation. However, it is essential to further update the innovations in order to stay on the market. This, in turn, may also incorporate the elements of the experimentation. However, one of the main factors is related to the ability to seize the opportunities. References: Anderson, P. (1999). Complexity theory and organization science. Organization Science, 10, 3, 216 – 232 Austin, R., L. Devin, and E. Sullivan. (2012). Accidental Innovation: Supporting Valuable Unpredictability in the Creative Process. Organization Science, 23, 5, 1505-1522. Brown, S. L. and K. Eisenhardt (1998). Competing on the Edge – Strategy as Structured Chaos. Harvard Business School Press: USA Business Insider, (2012). From $0 To $1 Billion In Two Quarters – Facebook’s Mobile Ad Business Is Suddenly Huge. Available from: http://www.businessinsider.com/starting-from-0-facebook-has-created-a-1-billion-mobile-ad-business-in-just-two-quarters-2012-10 (Accessed on 13/11/2012) Business Insider , (2012). What Is It Like Working At Facebook?. Available from: http://www.businessinsider.com/what-is-it-like-working-at-facebook-2009-12?op=1 (Accessed on 13/11/2012) CNC World, (2012). Facebook ADs revenue rises. Available from: http://www.cncworld.tv/news/v_show/28730_Facebook_ADs_revenue_rises.shtml (Accessed on 13/11/2012) Crunch Base, (2012). Mark Zuckerberg. Available from: http://www.crunchbase.com/person/mark-zuckerberg (Accessed on 13/11/2012) Damanpour, F. (1992). Organization size and innovation. Organization Studies, 13, 3, 375 – 402 Dosi, G. (1997). Opportunities, Incentives and the Collective Patterns of Technological Change. The Economic Journal, 107, September Drucker, P.F. (2002). The discipline of innovation. Harvard Business Review, 80, 8, 95-102 Freeman, C. and L. Soete (1997). The Economics of Industrial Innovation. Third Ed., London: Pinter Guardian, (2010). How to Confuse a Facebook User. Available from: http://www.guardian.co.uk/technology/blog/2010/feb/11/facebook-readwriteweb (Accessed on 13/11/2012) Hoovers, (2012). Facebook Company Information. Available from: http://www.hoovers.com/company-information/cs/company-profile.Facebook_Inc.f1fe73cc6a208e18.html (Accessed on 13/11/2012) Hopkins M. (2010). Innovation Isn’t ‘Creativity,’ It’s a Discipline You Manage. MitSloan Management Review, February Information Week, (2012). Facebook Hits 1 Billion Users: Now The Hard Part. Available from: http://www.informationweek.com/thebrainyard/news/social_networking_consumer/240008527/facebook-hits-1-billion-users-now-the-hard-part (Accessed on 13/11/2012) Littler, D., Leverick, F., Bruce, M., (2003). Factors affecting the process of collaborative product development: a study of UK manufacturers of information and communications technology products. Journal of Product Innovation Management, 12, 1, 16-32 Metcalfe, J. (1998). Cognitive optimism: Self-deception or memory based processing heuristics?. Personality Social Psychology Review, 2, 100-110 New Media Trend Watch, (2012), Available from: http://www.newmediatrendwatch.com/ (Accessed on 13/11/2012) New Yorker, (2010).The Face of Facebook. Available from: http://www.newyorker.com/reporting/2010/09/20/100920fa_fact_vargas (Accessed on 13/11/2012) Rogers, M (1998). The Definition and Measurement of Innovation. Melbourne Institute of Applied Economic and Social Research, p.6, The University of Melbourne: Australia Rothwell R. and M. Dodgson (1995), Innovation and Size of Firm, in Dodgson, M. and Rothwell, R., eds., The Handbook of Industrial Innovation, Aldershot: Edward Elgar, 310-324 Tech Crunch, (2012). Mark Zuckerberg: Our Biggest Mistake Was Betting Too Much On HTML5. Available from: http://techcrunch.com/2012/09/11/mark-zuckerberg-our-biggest-mistake-with-mobile-was-betting-too-much-on-html5/ (Accessed on 13/11/2012) Time, (2012). Is It Time for Facebook’s Mark Zuckerberg to Step Aside as CEO?. Available from: http://business.time.com/2012/08/01/is-it-time-for-facebooks-mark-zuckerberg-to-step-aside-as-ceo/ (Accessed on 13/11/2012)

High Yield Junk Bonds Business Research Paper Example | Topics and Well Written Essays - 3750 words

High Yield Junk Bonds Business - Research Paper Example The corporate bonds with good or highly favorable rating grades are classified as â€Å"investment-grade bonds† while those with low ratings are called â€Å"low-grade† or â€Å"speculative† bonds or by their less formal term, â€Å"junk bonds† (Becketti, 1990). In other words, based on Becketti (1990), junk bonds, low-grade bonds, and speculative bonds are synonyms. According to Becketti (1990), a bond may be classified as a junk bond for three reasons. First, the outlook for the company may be highly unfavorable. Second, the issuing company for the bonds may have large or significant debts. Finally or third, is that the company’s legal claim on another firm’s assets which is in default or has serious risks of default may be behind the legal claims of other companies. However, Taggart pointed out that despite their low-investment grade status, junk bonds are nevertheless classified as â€Å"high yield bonds† by â€Å"those wishing to avoid pejorative connotations.† It is very important to state, however, that although junk bonds experience more default, they also tend to have higher returns. More recent data are not immediately available. However, for 1974-1985, the default on junk bonds stood at 1.53% compared to 0.09% for all bonds. The 1.53% may be high compared to 0.09% but certainly 1.53% seems low enough. Further, various reports also suggest that annual return for junk bonds was 12.4% compared to 9.7% for all long-term government bonds. (Taggart, 1987, p. 12). In the 1990s, many economic observers have attributed the country’s economic ills to junk bonds (Becketti, 1990, p. 46). Many observers believed that junk bonds and economic ills simultaneously emerged in the 1980s (Becketti, 1990). However, on the observation, th e appropriate interpretation is that the market for junk bonds actually became only popular in the 1970s and 1980s but they have been in the US economy for some time (Becketti, 1990). In 1977, new issues of junk bonds in the United States were close to zero but they steadily climbed up to around US$33 billion in 1986 and to around US$30 billion in 1989 (Becketti, 1990). Becketti (1990, p. 48) argued that despite their size in the US economy for close to two decades, â€Å"junk bonds are too small a part of the debt market to account for the growth in corporate debt.† Further, Becketti (1990, p. 48) also argued that although junk bonds are riskier than investment-grade bonds, they are â€Å"less risky than equities.† Becketti (1990, p. 48) also clarified that â€Å"junk bond returns lie between those of investment-grade bonds and equities.† In addition, â€Å"junk bonds are more liquid than bank loans and private placements but less liquid than equities† ( Becketti, 1990, p. 48). Junk bonds can also provide investors â€Å"more control over corporate management† than investment-grade bonds but less control than many financial instruments like equities (Becketti, 1990, p. 48). If one examines the descriptions of Becketti (1990), it should be easy to conclude that junk bonds aren’t too bad after all. Based on the literature that will be examined by this work on the nature of junk bonds and issues related to the acquisition of junk bonds, there is a genuine case for investing in junk bonds as well as improving the situation of the junk bonds market. Junk bonds are risky investments but they can be part of one’s investment strategy for increased wealth. Further, contrary to the view that our

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Modern business environment - Essay Example Diversity has thus to be absorbed within the areas of recruitment , legislation and brand equity. Many academics and business professionals have insisted that many that many organizations fail to perceive the relationship between diversity and performance and diversity issues should now be incorporated into the employee training routine. The advantages of diversity cannot be emphasised upon enough because a well planned diversity initiative can bring many positive results to an organization like improved recruiting and retention. A well planned diversity initiative will focus on the core competencies which should underline the diversity initiative. Diversity management thus has to focus upon gaining the knowledge and abilities through its labour force to enable the organization to meet its long time objectives. Diversity would thus also ensure that instead of a bored "affirmative action" plan there is an emphasis on recruitment of the most qualified people, and continuing professional development of the current employees. 2-The text talks about how the Internet has "revolutionized recruitment practice" (Cascio, 2006). Discuss some of the advantages the Internet has provided regarding recruiting. Next, turn to the darker side of the Internet's impact on recruiting and discuss some of the disadvantages/problems with using the Internet as a primary tool in recruiting (20 pts). Internet is famously known as "the network of networks" and has enormously impacted every facet of the society particularly the perception of job applications and work performance. The modern employee is no longer bound to apply through newspaper Advertisements and Xerox a bundle of documents for each application. The modern recruiter has his cell phone, lap top, palm pilot, and of course the Internet and email at his disposal to look for the best. Recruitment Services use on-line screening, and web-based hiring initiatives like the popular Monster Job search and Bright Spyre.This has led to a heavy reliance on online recruitment and manual systems are already out of the way as Recruiters are able to post job openings and job seekers can apply with electronic copies of their resumes. This is very advantageous because Applicants can be screened quickly and efficiently for their skills, abilities and work history Internet will allow the recruiter to conduct key-word searches and quickly cross reference resume information with their specific requirements. The modern candidate is able to apply from the comfort of his own house and find out about his chances of employment in good time. Online recruiting has its cost effectiveness as it cuts down postage fees for the applicant as well as the costs of the recruiter. Newspaper based advertisements can be very expensive and can not be available for more than a few days. The internet gives a chance for global/universal access to people from all walks of life and diverse and a chance to access jobs and resources beyond geographical boundaries with electronic applications. Online recruiting

Advantages and disadvantages of using mail surveys Essay

Advantages and disadvantages of using mail surveys - Essay Example The respondents also have an interest in the subject of the survey (Mail Surveys, 2005). The person administering the survey should also possess beforehand a mailing list of the respondents (Mail Surveys, 2005). Mail survey is practical to use because the researcher need not consume a lot of time setting an appointment with the respondent for a personal interview or dialing each of the telephone numbers for a phone interview. In a phone interview, there is a possibility that the respondent cannot be contacted due to a number of reasons (e.g. sudden important appointment of respondent, emergency meeting). In a mail survey, once all the letters are delivered to the post office, the burden of delivery is shifted to the postal network (Mail Surveys, 2005). Mailing cost is cheaper (Mail Surveys, 2005) than commuting personally to reach a respondent. This method can reach a wider sample size because there is no personal interaction between the researcher and the respondents (Mail Surveys, 2005). Respondents are not time-pressured to answer the questionnaires but can do it any time at their convenience (Mail Surveys, 2005). Moreover, bias of the interviewer is reduced with lack of personal interaction with the respondent (Mail Surveys, 2005). It is appropriate in soliciting customer suggestions and proposals or feedback on the changes to be implemented by an organization (Mail Surveys, 2004). This is also an effective approach in acquiring sensitive information such as personal feedbacks of respondents who are discontented or disgruntled with a service or organization (Mail Surveys, 2004). Mail survey is disadvantageous because the respondent may simply ignore the questionnaire and not take the effort to answer it and mail it back. In short, there is no assurance that the target respondent will respond to the mail survey (Mail Surveys, 2004). People with low literacy usually have low response rate (around 20

Journal Essay Example | Topics and Well Written Essays - 500 words - 22

Journal - Essay Example These skills not only prove to be useful in one’s career but also in one’s daily life. For example, one of the skills you develop is delegating work to your subordinates. If you are the kind of person who wants everything perfect then this maybe a bit difficult because other people in your view can never perform that job in the same way that you can. But what delegation does is that it saves you a lot of time and that time can be spent on other more important things rather than paying too much attention on petty details. But this is not as simple as it sounds. Delegation simply does not work itself many a times especially in the context of student societies when the students are working for free without any monetary incentive. What this situation requires is a mix of charisma and knowledge of as to how to motivate your subordinates. Your personality should have strong communication skills and if you are delegating a difficult task to your subordinate then you need to ex plain to him what intrinsic value he can derive from that work when there is no apparent monetary benefit. These are some of the skills that you can always integrate in your office life and in your daily life. For instance the experience that I gained at university in the student society can easily be utilized in arranging a grand family reunion or a wedding in the family. There are many parts of my story which serve as a source of wisdom and knowledge for me in an optimistic way. For instance being the president of a student society means that you have to deal with the responsibility of the society as well as the pressure of your studies and maintaining your social life. This sometimes creates a lot of stress and time management issues. But when you look back at that time after a few years, you realize that the skills gained back then are proving to be mighty useful. Some

The massacre in Nanking Essay Example for Free

The massacre in Nanking Essay The massacre in Nanking which is popularized by Chang as the Rape of Nanking is indeed on of the darkest period of Asian history. Although it is described for its cruel and terrible scenes, history has almost forgotten these painful and darkest hours of Nanking people. Thanks to Iris Chang, her book became a living testimony of that tragedy that will always remind us that a lot of lives were wasted and a lot of people were intensely tortured in the hands of Japanese army. This book will serve as a reminder for Japanese people of the cruel nature of their ancestors. In the introduction of the book, Chang described the number of deaths in a mean that anyone can imagine in their vivid imagination. According to her, if the dead were to link hands, they will stretch from Nanking to Hangchow which is too far to imagine. It means that those cadavers can form a line of 200 miles. Other than that, their blood will weigh 200 ton and their bodies could fill twenty-five hundreds of railroad cars. If they will be piled up, their bodies could reach a height of seventy-four storey building. Indeed that is a huge number of innocent people. More than their death, the real tragedy for the Nanking people is their cruel way of execution which is merely inhuman and even animals are not worthy to experience those tortures. Thus, reading the book can give the reader so much agony and sympathy for the victims. The scenes are so painful to imagine that you will feel so much resentment to the Japanese. As a journalist by profession, Chang used her journalistic skill of documenting events. Her descriptions of those horrible scenes were enough to make the book a best seller and highly acclaimed by scholars. Most part of her book is narration of Japanese cruel activities as well as some historical backgrounds of Japan. Her book was based on the diaries of John Rabe and Minnie Vautrin whom played important roles in the Nanking Safety Zone. From its name, this are had protected a lot of Nanking civilians from the cruel hands of Japanese Army. John Rabe was able to shelter some 200,000 Nanking civilians from slaughter. Minnie Vautrin was an American missionary who saved a lot of school girls from the Japanese Army in Ginling Girls College. Both of them shared the horrible life in Nanjing during its Japanese occupation. They were able to witness and even take some photographs of those kinds of brutalities. Most of Chinese brutal activities are difficult to imagine such as forcing the fathers to rape their daughters as well as the sons to their mothers. Japanese soldiers are also fond of kidnapping women for them to become their sex slaves or comfort women. They were tied in a chair for almost forever just waiting for the next Japanese soldier to use their body. Another rape victim was found with a golf stick rammed into her. (Chang, 94) Other than that, there were also a rampant mass execution where killing the most number of people in a shortest time became a contest for them. As a form of execution, Nanking civilians were beheaded, buried alive, some were also buried up to their waist and the other of their body was fed to German Shepherds. They also use the civilians as human target for their bayonet practices. Other than, they also give severe punishment for no reason such as forcing the students to hold heavy objects, sit on their heels, stand barefoot in the snow, and run in the playground until they collapse. Overall, 340,000 Chinese died and around 20,000 to 80,000 Chinese men and women were physically and sexually abused. All these started when the Japanese Army swept into Nanking in 1937. Although their cruel activities lasted for only six weeks, still the terror it brought to its people is a lifetime of trauma. Originally, the main goal of the offenders is to haunt those Chinese armies who are disguising as civilians. As a result of that operation against those Chinese soldiers, a lot of innocent civilians were executed. Good thing about the book is that, it did not focus solely on the senseless cruelty of the Japanese army but also she mentioned some parts of Japanese history especially those who are prior to the 1937 incidence. She mentioned about Mathew Perry and his mission to the land of the rising sun. She also tried to explain why the Japanese was able to do those inhuman punishments to the people of Nanking. Indeed, it has something to do with their history, culture and religious background. Chang explain that their cruelty towards other people is caused by their belief that the Emperor is the only descendant of their sun goddess Amaterasu. Because they are non Christians in nature, they disregard the Christian idea of brotherhood and loving other people. They also think that they are superior as Western people and have the right of access to the natural wealth of Asian countries. Other than that, their participation in the Second World War gave them an ample pride. During that time, being able to participate in a world war together with powerful nations such as United States and Germany is an indication that Japan is the most powerful country in Asia. Meanwhile, as I read the book, the resentment of the author towards the perpetuator of the time are becoming more intense. More than being Chinese by blood, Chang’s grandparents were able to witness that horrible event in Chinese history. No words can explain her bitterness and resentment in her renowned research that it caused her to lose her sanity. If the author herself was not able to stand the horror of the Nanking massacre who was not able to witness the event, how much more the terror that it brought to the survivors of that tragedy including Chang’s grandparents. I admit that reading the book gave me a vivid image of what really happened during World War II. The book is a reflection of the everyday reality that was experienced by peoples especially those countries that were conquered by the Japanese Army. More than understanding Chinese history, the book presented more of Japanese history and culture especially the cruelty of its army. Therefore the book doesn’t help me understand Chinese history. The book is just a mere description of the atrocities of World War II focusing more on Japanese history. Instead of helping me understand Chinese history, it does explain why until this very moment, there is so much resentment among Chinese people towards Japan. Other than the intense of inhuman acts towards the Nanking victim, there is no initiative from the Japanese government to give a public apology. Worst than that, the Japanese don’t admit the crime and don’t even remember the incident. The younger generation in Japan doesn’t know about their cruelty because it was not taught in their history class. Even the Chinese forget about this horrible part of their history aside from the Nanking survivors and their descendants. Therefore, this book is really a breakthrough just remind both the Chinese and Japanese people of that forgotten holocaust. And for me, not only the oppressor and the oppressed parties should remember this horrific period in their history. All countries should be aware of the terror brought by world wars and the cruelty towards other race is widely condemned. It can happen not only in Nanking but in other parts of the world. It is a worldwide problem which is known as genocide. A lot of people may suffer from cruel death because of political reasons and the sad thing about that is most of them are innocent. Chang’s documentary of that horrific incident serves as an eye opener for every people with regards to their nationality that war is evil and it can only ruin the lives of innocent people. Although her work is highly acclaimed by scholars most especially its amazed readers, still Chang received a lot of criticism especially when it comes to the technical aspect of the book. Some people in the academe have seen many historical inaccuracies as well as grammatical errors. Grammatical errors can be forgiven for it can be the fault of the copywriter. Technical errors are really inevitable and as a matter of fact, a journalist like Chang also commits that kind of mistake. But there are no excuses for committing historical errors. We cannot blame Iris Chang because she is not a historian by profession. But as a researcher, she should be responsible when it comes to the accuracy of her data. Indeed, her historical inaccuracies are so serious because most of them are some basic information of Japanese history. Here are some of the examples: By the late 15th and early 16th centuries Japan was ruled by the Tokugawa family, who sealed off the island nation from foreign influence (Chang, 21). The reign of Tokugawa family started in 1603 therefore the Tokugawa era in Japan started in early 17th century. Chang also wrote, In July 1853, he (Matthew Perry) sent two ships belching black smoke into Tokyo Bay giving the people of Japan their first glimpse of metal-clad, steam-powered ships. Surrounding himself with some sixty to seventy aggressive-looking men armed with swords and pistols, Perry strode through the capital of the Shogun and demanded meetings with the highest-ranking officials in Japan (Chang, 21). The truth is, Perry was not able to go to that place which is believed to be Edo or Tokyo during this day. Other than that, she also explained in her book, In an era later known as the Meiji Restoration, Japan resounded with nationalistic slogans, such as Revere the Emperor! Expel the barbarians! and Rich country, strong army (Chang, 23)! Actually there is no Japanese Era such as Meiji period. This Meiji restoration that she is talking about happened from 1868 to 1912 and it is more of a social revolution than a period like Tokugawa. And lastly, Chang wrote that the United Nations created a committee for war investigation in March 1944(Chang, 169). It is impossible to happen because the United Nation was not yet chartered in 1944. How this book can become a historical reference it its content is inaccurate? For me, Chang was not objective in writing this book. It is obvious that Chang was driven by her resentment to the Japanese government and the desire to uplift her Chinese roots. And because her grandparents are involved with that traumatic period in Nanking, her book serves as an advocacy campaign for her grandparents to get the justice that they deserve. While reading the book, anyone can notice that Chang is trying her best to give a negative image of Japanese culture especially their army. We can say that she met her objectives and her way of documenting the story is enough to ruin the image of the Japanese. Her description of those cruel acts will make the readers forget the technical errors of the books as well as its historical inaccuracies. Anyone who will read the book will feel so much sympathy for the victims and really seek justice for them. That is really her objective as a author but alas, she shared the same fate with her grandparents. Although her book became a major success and the tragedy of Nanking is now known worldwide, Chang died miserably and lose her hope that someday the perpetuators will pay for their acts. Although it is inevitable for her to show her biases, it would be better if she had presented the other side of the story. It is unfair for the Japanese their side was never heard and they were never consulted by the author. If only she also take the side of the perpetuators, her book will sound more objective and even the Japanese can accept her book and learn from it. The reason why until today, is not admitting that crime is because their sides were not heard in the book. There are also historical errors regarding Japanese history that is why it is easy for the Japanese to ignore the book. The criticisms about the book especially its technical errors are another factor for the Japanese to ignore the book and pretend that there is no such thing as Nanking massacre in the history. If only Chang was more careful and objective, her book will achieve more than recognition and market success. She and her fellow Chinese community in Nanking can get the justice that they are longing for. It would be better if Chang has included some stories of Japanese soldiers focusing on their feelings towards the victim. We can never say that all Japanese soldiers are cruel and maybe some of them were pressured by their officials to do those inhuman activities. Other than the sufferings of the Chinese people, it would be better if Chang was able to mention the hardships encountered by the Japanese soldiers during their stay in Nanking. This will give her book a sense of balance which is expected from her because she is a journalist. As a conclusion, we can say that the book is really a breakthrough for Asian history. The once infamous tragedy of the Nanking people became part of Asian history through the angered motivated research of the victim’s descendants. Although Iris Chang is not a historian by profession, she was able to convey her main point inspite of the rampant errors and historical criticisms of her book. Without looking at its market success, still the book is a failure because the author herself was not able to get the justice that she demands asides from the heavy accusations of her critics. But still, the book served as a reminder for every nation of the atrocities that war can produce and the fate of millions of innocent people who are involve in the war.

What Is Sales Forecasting Marketing Essay

What Is Sales Forecasting Marketing Essay Forecasting is a little more scientific than looking into the crystal ball . The scientific basis of forecasting lies in studying past , present and future trends , present and future actions and their effects . What happened in the past is relevant to what is happening now and what could happen in the future . Forecasting  is defined as the process of making statements about the events whose actual outcomes have not yet been observed . A common example might be  the estimation  of some variable of interest at some specified future date .  Prediction  is similar , but it is more general term. Both might refer to formal statistical methods employing   the time series ,  cross sectional  or  longitudinal  data and alternatively to less formal judgemental methods . Usage can differ between areas of application for example in  hydrology , the terms forecast and forecasting are sometimes reserved for the estimation of values at certain specific  future  times , while the term prediction is used for more general estimates , such as the number of times the floods will occur over a long period . WHAT IS SALES FORECASTING ? SALES FORCATING : Sales forecasting is estimating what a companys future sales are likely to be , based on the sales records as well as  the market research . Information used for sales forecasting must be well organized and may include information on the competition and the statistics that affect the businesses customer base . Companies conduct sales forecasting in hopes of identifying the patterns so that the revenue and the   cash flow  can be maximized . Sales forecasting is a difficult area of management . Most managers believe that they are good at forecasting . However , forecasts made usually turn out to be wrong . Marketers argue about whether sales forecasting is a science or an art . The short answer is that it is a bit of both. Sales forecast should be conducted regularly and all the forecasting results need to be measured , so that the future methods can be adjusted if necessary . Before the forecasting process begins marketing , sales or other managers should determine how far ahead the forecast should be done . Short term forecasting is a maximum of three months and is often effective for analyzing budgets and markets . Intermediate sales forecasting is between a period of three months and two years and may be used for schedules ,  inventory and production . Long term forecasting is for a minimum of two years and can be used for long term forecast period and is good for dealing with growth into new markets or new products . Basically sales forecasting is analyzing all the parts of a business from total inventory to the strengths and weaknesses of sales people . Managers must think about changes in customer sales or other changes that could affect the forecasting figures . They must be competitive when they are assessing the competition and how they can surpass the competition to better meet the needs of the target market . IMPORTANCE OF SALES FORCASTING Sales forecasting is the basis of all the business activities . All the business activities may it be a sales related matter , production related matter , finance , advertising etc depend on sales forecasting . Any business firm starts its plan with sales forecasting . Sales forecasting is a self assessment tool for a company . A sales forecast reports , graphs and analyzes the pulse of any business . It is a vital basis for a companys budget . The future direction of the company depends on the sales forecasting .   Sales  are the lifeblood of the business .  Its what helps you pay employees , cover operating expenses , buy more inventory , market new products and attract more investors . Sales forecasting is a crucial part of the  financial planning  of the business . Its a self assessment tool that uses the past and the current sales statistics to intelligently predict the future performance . Sales forecasts are also an important part of starting a new business . Almost all new businesses need loans or start up capital to purchase everything necessary to get off the ground office space , equipment , inventory , employee salaries and  marketing . You cant just walk into a bank with a bright idea and lots of enthusiasm . You need to show them numbers that prove your business is viable . In other words , you need a business plan . The importance of Sales forecasting can be stated as follows : 1 . Overstocking and the under stocking of materials can be maintained by a good inventory control. 2 . With the help of sales forecasting , sales opportunities can be found out on the basis of the forecast . 3 . All the activities in an organization , are controlled on the basis of forecasting . 4 . Advertising and sales promotion expenses are based on sales forecasting . 5 . Sales forecasting is also important in the field of personnel department . The number of sales persons , executives etc can be increased or decreased on the basis of sales forecasting . 6 . Sales forecasting is the basis for financial Planning . 7 . In the field of production , with the help of sales forecasting , producer is able to adjust his production schedules and avoid idle time which leads to efficiency . 8 . Supply and demand of the products can be easily adjusted .   9 . It helps in knowing when and how much to buy . 10 . It helps in the product mix decisions . SALES FORECASTING ON THE BASIS OF PAST Many businesses prepare their sales forecast on the basis of their past sales . Past years Sales forecasting is done with the help of Time series analysis . Time series analysis involves the breaking of past sales down into the four components : The trend are the sales growing , flat lining or are in decline ! Seasonal or cyclical factors Sales are affected by the swings in the general economic activity . Seasonal and cyclical factors occur in a regular pattern . Erratic events these include strikes , fashion fads , war scares and other disturbances to the market , which need to be isolated from the past sales data in order to be able to identify the more normal pattern of the sales . Responses the results of the particular measures that have been taken to increase the sales (e.g. a major new advertising campaign) . Using the time series analysis to prepare an effective sales forecast requires the management to : Smooth out the erratic factors . Adjust for the seasonal variation . Identify and estimate the effect of the specific marketing responses . SALES FORECASTING ON THE BASIS OF PRESENT MARKET As a starting point for estimating the market demand , a company needs to know the actual industry sales that is taking place in the market . This involves identifying its competitors and estimating their sales . An industry trade association will often collect and publish the total industry sales , although rarely listing the individual company sales separately . By using this information , each company can easily evaluate its performance against the whole market . This is an important piece of analysis , Say for example that Company A has sales that are rising at the rate of 10% per year . However , it finds out that the overall industry sales are rising by the rate of 15% per year . This must mean that Company A is losing the market share , its relative standing in the industry . Another way to estimate the sales is to buy the reports from a marketing research firm such as AC Neilsen , Mintel etc . These are usually good sources of information for the consumer markets where the retail sales can be tracked in great detail at the point of sale . Such sources are less useful in the industrial markets which usually rely on the distributors. SALES FORECASTING FOR FUTURE MARKET So far we have identified that how a company can determine the current position . How can the future market demand and the company demand be forecast ? Very few products or the services lend themselves to easy forecasting . These tend to involve a product whose absolute level or the trend of sales is fairly constant and where the competition is either non-existent ( e.g. monopolies such as public utilities ) or stable ( pure oligopolies ) . In most of the markets , the total demand and company demand are not stable which makes the good sales forecasting a critical success factor . A common method of preparing the sales forecast has three stages : Prepare the macroeconomic forecast   what will happen to overall economic activity in the relevant economies in which a product is to be sold . Prepare an industry sales forecast   what will happen to overall sales in an industry based on the issues that influence the macroeconomic forecast . Prepare a company sales forecast   based on what management expect to happen to the companys market share . Sales forecasts can be based on the following three types of information : What the customers say  about their intentions to continue buying products in the industry . What the customers are actually doing  in the market . What the customers have done  in the past in the market . There are many market research businesses that undertake surveys of the customer intentions and sell this information to the businesses that need the data for sales forecasting purposes . The value of the customer intention survey increases when there are a relatively small number of customers , the cost of reaching them is small and they have the clear intentions . An alternative way of measuring the customer intentions is to sample the opinions of the sales force or to the consult industry experts .