The European Airlines Industry Essay Example | Topics and Well Written Essays - 2250 words - 1

The European Airlines Industry - Essay Example Thus deregulation led to increased number of passengers. Airlines with long-haul routes continued to earn profits but smaller airlines were unable to reap the benefits. Major airlines were allowed to charge higher prices between the individual EU countries and they also signed up different agreements with the USA for long-haul flights. The European Commission, on behalf of the EU, challenged these agreements as it was against the competition rules of the EU’s Treaty of Rome. A new agreement opened up all major European airports to all carriers. This further enhanced competition as the low-cost airlines started competing in the long-haul flights. In addition, terrorism, health scares and war reshaped the European airline industry (SD, 2004). Landing fees are high at the major airports. Â  More passengers are opting for low-cost airlines, thereby affecting the legacy airlines. Other factors that have affected the number of people traveling is advanced technology in teleconferencing, the downturn in the global economy, increased fuel cost and the events of 9/11. Price became controlled on long-haul routes but the legacy airlines found other means to generate profits. The legacy carriers adopted the hub and spoke strategy where they derive economies of scale through full load over long distances. This is less attractive to the smaller carriers. The smaller carriers offer no-frills, point-to-point simple fare structure but without compromising on safety although passengers are not very happy with the service of the low-cost airlines. Consolidation is also taking place in the industry. No airline has a significant competitive advantage over rivals. The airlines face a competitive threat and keep trying different strategies like entering the budget segment or focusing o n the business segment. Â  Global warming is an important factor that airlines consider in their strategy development.

Mcdonalds Essay Example | Topics and Well Written Essays - 2500 words

Mcdonalds - Essay Example It is one of the most well known and reputed brand and holds a leading share in the globally branded quick service restaurant segment of the informal eating out in virtually every country where they have a presence. It has achieved this distinction through efficiency in its operations and proper functioning. Approximately 70% of McDonalds restaurants worldwide are owned and operated by independent local men and women (Wikipedia). McDonald’s offers flexible menus with different tastes and different sizes to fit every active lifestyle. It has a global presence with successful expansion into 120 countries and they serve nearly 54 million customers each day. By 2001, they had 30,093 restaurants all over the world with sales of $24 billion. They offer both counter service and drive through service. McDonald’s follows a different business model from other fast food chains. In addition to the franchisee fees, supplies and a percentage of sales, they also collect rents partially linked to sales. Their international operations are very significant to them because a sizeable portion of revenue is generated through franchisees. While the US and Europe each account for 35% of the revenues, France, Germany and the UK collectively account for 60% of the total revenue (Orji, 2005). In Australia, China and Japan, they have 50% owned-affiliate account under the equity method which account for nearly 50% of the revenues. These six markets are the major markets for the company. While fast food meals based in burgers and fried chicken have been considered convenient, they have also been considered to be unhealthy. One of the reasons for the vast number of allegation against McDonald’s is that processed convenience foods contribute to obesity (Schrà ¶der & McEachern, 2006). This has led to several litigation proceedings against McDonald’s. This demonstrates that they have not been socially conscious in their dealings. There have