The usage of accounting numbers in management compensation contracts Assignment

The usage of accounting numbers in management compensation contracts - Assignment Example (4 marks) b) Find a company (other than Qantas) which uses accounting numbers in their management compensation contracts. Identify the company and given an example of an accounting number that they use in their management compensation contracts. [NOTE: the company must be an Australian company, currently listed on the stock exchange. You must not refer to any financial statements before 2012. Any references to financial statements should clearly indicate the number of the page referred to.] (2 marks) c) On the 25th May, 2012, Hastie Group Ltd (http://www.hastiegroup.com.au) advised the market that an employee â€Å"deliberately caused †¦ irregularities in Hastie's accounts in the 2008?09 financial year†, leading to a $20 million dollar adjustment to its full?year profit. Hastie’s announcement to the market indicated that â€Å"some current and former senior management may have participated in the irregularities and failed to apply the required standards of financi al supervision and review.† If Hastie’s executives had received bonuses based on this incorrect figure, do you believe they should have to return this money to the company? Why or why not? (4 marks) Answers a. A management compensation contracts is a type of contract that is designed to connect the shareholder’s goals with those of the executives or CEO. ... In order to diminish the costs, contracts are utilized in the alignment of the stakeholder’s interests as well as actions of the two parties by relying on accounting numbers that provide incentive in maximizing shareholders value (Beatty, Ramesh and Weber, 2002, Pp. 218-227). The strong demand for accounting numbers assist in conceptualizing purpose of accounting information the evaluation as well as making decisions on issues of allocating scarce resources. Therefore, there are accounting oriented measures that are formulated to enable manage compensation contracts. These measures are utilized as a cost effective approaches in providing financial incentives allowing management in earning higher remuneration amounts in order to reach targets that have been set by accounting numbers to maximize shareholder interest. For instance, a management compensation contract stating that a director responsible for performance bonuses is supposed to rely on accounting numbers like equity r atios or net profits in order to direct a director’s compensation. This gives the management an incentive of making decisions liable to increase the shareholders value and at the same time trying to avoid NPV investments as well as reducing the consumption. Therefore, it is appropriate to conclude that accounting numbers utilized in compensation contracts assist in reducing agency costs as well as benefit the shareholders. b. The Woolworths Ltd Annual Report 2012 shows clearly that management is compensated by utilizing Sort Term Incentives Plans (STP) as well as the long Term Incentive Plans which constitute 40% of the remuneration offered to the Executive Directors. The STIP is based on accounting numbers like the

Rita and Sue Escaping Constraints of Class and Gender Backgrounds Movie Review

Rita and Sue Escaping Constraints of Class and Gender Backgrounds - Movie Review Example The film's opening sequence show's Sue's father swaggering from drunkenness on his way home. Meeting Sue just before he approaches the house, he questions the girl as to where she was going and admonishes her not to be out all night. Sue tells him to mind his own business and that she'll be back when she wants. This first instance immediately shows escapist behavior for Sue who disregards male dominance and asserts feminism. "The changing nature of work the introduction of new technologies and the subsequent deskilling of traditional male jobs have undermined traditional working-class masculinities." (Rutherford 1988) The next scene is Sue and Rita going to Bob's house to baby-sit. Also early in the firm, Sue works for a taxi company where she meets Aslam. Again these depict the feminine response to the changing economic and social circumstances of the period. Instead of females staying at home and males going out to work, Rita and Sue are escaping the traditional gender expectation that they assume domestic roles. In another scene, Sue derides Aslam. She first insinuates that being Pakki or Asian is beneath her class, and then makes up her mind that since Aslam is a man he’d probably be no different from all other men, which passes judgment on the growing emasculation of the males of her time. The use of profanity throughout the film is another form of escape. Vulgar language is freely used by males and females alike. For the females, use of such language is gender freedom from previous eras when men silence women. The girls’ sauciness is also a form of rebellion against conformity, an underclass characteristic which have tends to prevent its members from rising above their class. Very prominent in the story and on which the plot revolves is the sexual relationship between Bob and Rita and Sue, including the minor details it involves. The entire series of sequences portrays escape for the two female lead players from their underclass which is characterized by unemployment, work devaluation, welfare dependence, broken families, de-stabilization of the male-breadwinner role, poor education, poverty, criminality and disadvantages in housing. Having fun by just getting a lift or a drive in Bob's car, baby-sitting in a middle-class house expensively decorated and furnished, with nice lawns and open spaces, enjoying a rock video on a comfortable sofa, going to the nightclub, many meetings in not very popular public places, reveling in dancing to Black Laces's Gang Bang without a care in the world, are all forms of escape for Rita and Sue. Contrast Rita and Sue's squalid housing against Bob's relatively affluent middle-class home. By simply being in Bob's house, the two girls experience a different world and escape their own. Getting a lift, going for a ride, listening to the radio in Bob's car, all pass time away from the urban decay of their Bradford Buttershaw Estate. Going to the nightclub and many other public places, watching Black Lace and dancing to their tune would all not be affordable in the girls' current status. But being in a relationship with Bob has provided them many new experiences and opportunities for escaping their realities, albeit temporarily. From what the

The History of Italian Theatre Essay Example for Free

The History of Italian Theatre Essay The Italian Renaissance occurred from 1550 1700. The rapid economic growth in Italy during this time made it possible for the more wealthy citizens to endulge in alternate forms of entertainment. Wealthy families such as the Medicis began a system of patronage, in which they would finance artists to produce art in many forms. Italian theatre used the plays of ancient Greek and Roman theatre (dramas) as well as mediaeval theatre (religious plays) as a foundation. Commedia dellArte The main style used by theatre groups in Italy during this period was called commedia or Commedia dellArte. Commedia dellArte or the comedy of professional artists was a mainstay in Italian theatre during its renaissance. This included bits of comedy performed by different actors called lazzi. The type of comedy used in the Italian Renaissance was what is now known as slapstick or farce. This was a comedy style, which highlighted pain or misfortune occurring to the actors in a humorous context. For the most part the actors in these comedies used no scripts. The actors were given a plot or scenario and acted out these plots in a humorous way. These performances were often vulgar and obscene. Standardize characters developed and appeared in familiar costumes and wearing masks. The character standards for Commedia included these general outlines: Pantalone: A greedy old man, merchant or fool, often lustful, conniving, and  meddling. Dottore: A drunk, often proffesor or doctor dressed in a cap and gown. Capitano: A soldier who was braggadocios and cowardly. Inamorati: Young lovers who appeared quite normal compared to the rest of  the characters. zanni: Foolish servants. Usually two servants, one being drunk and  more foolish than his cohort. Neoclassicism Neoclassicists were rigid critics of Italian drama. They developed rules for theatre performances that survived for nearly 200 years in Europe. These mandates were claimed to have been derived from Greek and Roman models. Five central concepts of neoclassicism are as follows; verisimilitude, decorum, purity of genres, the three unities, and two fold purpose. Verisimilitude The seeking of truth. An attempt to portray the performance as a reasonable interpretation of what is real or reasonably expected in real life. Decorum The way in which characters of certain classes behaved according to that class. Age, sex, rank, and profession would be acted out as if the characters held those standings. A strong sense of moral right and wrong was upheld, reflected by the punishment of evil, and the rewarding of good. Purity of Genres Comedy and tragedy were never mixed. The elements of one genre were never to be interspersed with the performance of another. The use of the chorus, the deus ex machina, and the soliloquy, was prohibited. The Three Unities The concept of the unity of time, place, and action. Unity of time required a reasonable time for the action of the play to take place; usually no more than 24 hours. Unity of place required that the play should include no more than one place or location. Unity of action required that there be no sub plots, secondary plots or counter-plots. Two Fold Purpose The two purposes of neoclassical Italian plays were to teach and entertain. Opera Opera is the one form of Italian renaissance theatre that still survives to this day. It was developed in the late 1500s in Florence. Opera was originally an attempt to recreate a genuine Greek tragedy. Observing the Greek fusion of music and drama, the originators of opera attempted, and succeeded in, producing a completely sung dialogue in their interpretations. Opera is a form of drama that creates its mood, actions, and characters through music The first opera on record is called Dafne (1597). The text of the opera was written by, Ottavio Rinuccini (1562 1621). The music was scored by, Jacopo Peri (1561-1633). The opera, which consisted of a prologue and six scenes, was performed during the pre-Lenten Carnival of Palazzo Corsi. The Camerata Fiorentina, an academy of wealthy Italians who studied ancient Greek and Roman theatre, produced Dafne. The actual textual part of the opera is called the libretto. One, two, three or four performers can sing the librettos; these performances are called an aria (solo), a duet, a trio, and a quartet respectively. The visual display (intermezzo), along with musical excellence and strong performances, keep opera alive as a form of powerful dramatic art. Staging, Scenery, and Lighting The use of perspective drawing as a means to capture realistic backdrops was a common theme among 16th century stage designers. The illusion of depth was achieved through perspective drawing techniques using vanishing points as objects appeared closer to the horizon; they were painted smaller and smaller on their scenic backdrops. The first use of this technique is believed to have occurred in 1508, for a performance of Ariostos La Cassaria. A leading author and set creator named Sebastion Serlio wrote about this technique and other scene design methods in his book Architettura (1545). Different kinds of illusionistic backdrops settings were developed for the three major types of plays of the era (comic, pastoral, and tragic). A three-sided revolving prism called the periaktoi, was developed to change between different settings. This was quite an innovation for its time, as the scenery could be changed right before the audiences eyes. Other advances included the proscenium frame and front curtain along with varied flying machines (glories) and other special effects. Lighting inside the dark theaters of renaissance Italy also had to be addressed. Oil lamps and candles were the primary source of stage lighting. Though candles and lamps produced some smoke, they were placed in chandeliers and on the front of the stage. Placing translucent receptacles or canisters over them could dim candles when lower light levels were called for. Due to the size and lack of sufficient lighting of the theatres, artificial lighting was an ever-present necessity.

The Children Act 2004 | Analysis

The Children Act 2004 | Analysis The Children Act was first introduced in 1989 and was amended in 2004 after an inquiry into the death of Victoria Climbie. After the death of eight-year old Victoria Climbie in 2000, Lord Laming was asked by the Government to carry out an investigation to know if new regulation and guidance were needed to develop the safeguard of child system in England. The Governments answer to the Victoria Climbie Inquiry report (Laming, 2003) was the Keeping children safe report (DfES, 2003) and the Every child matters green paper (DfES, 2003), which in turn led to the Children Act 2004. This Acts ultimate purpose is to make the UK better and safer for children of all ages. The Act also created a Childrens Commissioner; putting in place services provided to and for children and young people by local authorities and other persons; dealing with Wales about advisory and support services in regards to family proceedings; dealing with private fostering, child minding and day care, adoption assessment panels, the explanation of reasonable penalty, the making of allowances as respects children and families, child safety orders, the Childrens Commissioner for Wales, The publication of material in connection to children dealing in legal cases and the release by the Inland Revenue of data relating to children. The government aims is for every child whatever their background or their conditions, to have the backing they need to: be healthy i.e. enjoying good physical and mental health and living a healthy lifestyle; to stay safe i.e. to be free from harm and negligence; to enjoy and achieve i.e. to make the most out of life and to develop the skills to become an adult; to make a positive contribution i.e. to be in touch with the community and society and not taking part in anti-social or criminal conduct; To achieve economic well-being i.e. not being prohibited by financial difficulty from reaching their full ability in life. The green paper suggested improvements was into four main areas which are assisting parents and carers, early involvement and effective security, responsibility and combination locally, regionally and nationally and staff improvement. Being healthy It is shown by a study that those smoking regularly aged 11-15 in England has gone down since 1996 from 13 to 10 percent. But obesity level is rising. Between 1996 and 2001 the number of children who were obese having between 6-15 years old in England increase by 4 percent. Young rates of pregnancy were lower by 10 percent in 2001 than in 1998. But UK still has the most teenage pregnancies in Europe. The World Health Organisation published a report in 2002 that UK had the least suicide rate amongst 26 countries, but suicide is still responsible for 20 per cent of young deaths. Staying safe In March 2002, 59,700 children were in care in England, which is an increase of 22 percent since March 1994. But, the number on child protection registers in England have been decreasing as there were only 25,700 in March 2002 compared to 38,600 ten years earlier. Between 1981 and 2001 the percentage of young boys in England and Wales reprimanded or sentenced of a crime decreased from 7 per cent of young boys to 5 per cent, but the same rate for girls increased from 1.3 to 1.4 per cent. A research of criminal and harassment found that 46 percent being the target of some kind of crime in the last 12 months among those aged 11 to 16 in ordinary schools. In most cases of domestic violence where around one in ten women involved yearly, their children were present in the same or next room, and one in three child safeguard circumstances points to a past of domestic violence against the mother. Enjoying and achieving The number of those aged 11 reaching the normal level in English and maths went up by 12 percent, from 63 percent to 75 percent and from 61 percent to 73 percent in English and maths respectively since 1997. In 2002 more than half of 15 year olds got a minimum of five GCSEs at grades A*-C, a rise of more than 6 percent since 1997. However success is not steady through diverse ethnic groups like for example pupils from Chinese and Indian backgrounds succeed considerably over regular GCSE results; black pupils and those from Pakistani and Bangladeshi backgrounds do inferior in their GCSE results. Non-attendance has stayed the same from 1995/96 at 0.7 percent of half days absent. At the end of 2001, in every eleven youngsters having 16-18 years old, one was not in education, work or training and in every four youngsters between 16 and 18, one spend time out of education, training and employment. Making a positive contribution A new research of secondary students who are 11 to 18 years old showed that 86 percent had taken part in certain sort of community activity in the previous year and half participated in raising fund or gathering cash for charity. From the 2001 General Election, assessments found that attendance was lowest between those aged 18-24, as only two in five casted their vote. Economic well-being Between 1992 and 1995, 19 percent of children stayed in working age jobless homes, but in 2003, the percentage had fallen to 15.2. The percentage of children staying in homes with comparatively low earnings decreased between 1996-97 and 2001-02 from 34 to 30 after housing expenses. The percentage of children staying in homes with virtually low earnings fell largely from 34 percent to 20 percent after housing deductions. The Childrens Act 2004 established a Childrens Fund which is aimed to support in the abolition of poverty and economic difficulties felt by disadvantaged children or those whose familys monetary conditions leave them deprived by making sure that children aged between five and thirteen attend school regularly and also decreasing the risk of crime being carried out by these children, so that they can get the best promising start of their life. The Childrens Act 2004 specially caters for disabled children. Local authorities have a responsibility under the Act to arrange for  facilities to children in need if these amenities will aid keeping a child safe and healthy. After the death of baby P, there was a review conducted by Lord Laming which suggested that those dealing with children need to be properly trained to detect any problem so that social workers or other practitioners can better safeguard children under their responsibility. The Children Act 2004 provides a strong emphasis and a new approach to childrens services but is not sufficient in itself. Its application must be part of an extensive progression of transformation, concentrating on results and brought onward by local transformation packages in 150 Local Authority regions set within a national structure. The National Service Framework for Children, Young People and Maternity Services (NSF) is fundamental to this. It put forward a ten-year plan to encourage durable and continual progress in childrens health and well-being. As it is applied by Primary Care Trusts (PCTs), Local Authorities and other groups including other health bodies, it will add to the realisation of the five outcomes.

Plot Summary of A Midsummer Nights Dream :: A Midsummer Nights Dream, William Shakespeare

William Shakespeare’s A Midsummer Night’s Dream is a romantic play about love-struck relationships that deal with lust, jealousy, and revenge. Key characters are Theseus, Hippolyta, Lysander, Hermia, Egeus, Demetrius, Helena, Oberon, Titantia, Puck, and Nick Bottom. Theseus is the king of Athens, who is engaged with his fiancà ©, Hippolyta, the queen of Amazon. Lysander is an Athenian man who is in love with Hermia, the daughter of Egeus. Hermia is also in love with Lysander. Demetrius is an Athenian man who also loves Hermia, and wishes to wed with her. Helena is Demetrius’s old lover, and a close friend of Hermia. Oberon is the king of fairies, and Titantia is the queen of fairies. Puck, or Robin Goodfellow, is a fairy who makes love potions for Oberon. Lastly, Nick Bottom is a weaver whose head is turned into an ass for his ridiculous mistakes and foolishness. The setting takes place in Athens and in the forest. The time period is approximately around ancient Greece. There are three conflicts throughout the play, which are: the dilemma between Lysander and Demetrius both falling in love with Hermia, Helena’s plan to regain the relationship with Demetrius, and the decision of whether the Indian prince should be knighted or not. Lysander and Hermia wishes to wed together but Egeus wants her to wed with Demetrius. They both eloped to the forest, in order to get married at Lysander’s aunt’s house. Helena is, however, still in love with Demetrius. Demetrius cruelly left her for Hermia. For revenge, Helena overheard the news of elopement and told Demetrius, who follows her to the forest to hunt for Lysander and Hermia. The problem of Indian prince is that Oberon wishes to have him knighted, but Titantia is against it. Key events are: when Oberon sees the trouble between the love-triangle of Lysander, Hermia, Helena, and Demetrius, he decided to help. Oberon sends Puck to make love potions and powders on Demetrius’s eyelids, so he can fall in love with the first person he sees, supposedly Helena. However, Puck mistaken Lysander for Demetrius, and instead puts on Lysander. As a result, both Lysander and Demetrius are in love with Helena. Oberon also demanded revenge for Titantia, and makes Puck use his love potion on Titantia.

Modern Day Cinderella Essay -- Creative Writing Short Story

A few months ago a girl named Cindy's parents took a vacation to America, leaving her alone with her aunt and two daughters, Tiphisha and Moya. Her parents lived in England and were extremely wealthy, and for that reason her aunt, Lorna and her daughters were jealous of Cindy and despised her very much. They treated her very bad, Cindy had to do all the chores in the house in order to keep it clean. They ordered her around and gave her dirty clothes to wear. They would keep her locked in the basement so that no one would know that she was there. Cindy's life was made difficult, she often sits by the cinders and cry, and wish her parents had took her with them. But in the pass times, she would sing, which is something she loved with a passion. One hot sunny day her aunt sent her to the market for a loaf of bread. While she was getting the bread the king servant made an announcement in the middle of the market. ?Here ye! Here ye! The king of England is throwing a ball for his son at the palace, an invitation will be delivered at your door.? He said as he left the market. Cindy got the bread and ran home to share the good news with her aunt and cousins. Cindy was in the kitchen making dinner, when the door bell rang ?Cindy go get the door!? shouted her aunt. Cindy took her apron off, and rushed to answer the door. Standing at the door was a servant from the palace with a paper in his hands, ?good day ms, the king ordered me to deliver an invitation to the ball? ?thanks? Cindy said taking the invitation and went to show her aunt. Her aunt and cousins were excited about the news, they went shopping the next day leaving Cindy alone in the house to do all the work, while they spent all her parents? money. Cindy ... ... else there and at the moment Cindy started singing ?who is that the prince asked with curiosity. ?Oh! No one just the maid cleaning? the aunt uttered with guilt covering the basement door. But the prince insisted ?send her out here, it is requested that every woman is to try this slipper. Cindy tried the slipper and it fit perfectly, as she put her foot in it she went and got the other foot and put both of them on. She magically turned into a beautiful princess, the bell of the ball. The prince picked her up and off they went to the palace to get married. The aunt and her daughters gasped in surprise and asked ?you were that beautiful girl at the ball ?See I knew it was something about that girl hum!? said tiphisha ?why those things do always happen to weird people? Why moya said sobbing. The prince and Cindy got married and lived happily ever after.

Marketing Management UBER Analysis Essay

1. Introduction Application software has been very popular as distribution platforms since 2008 due to rapid spread of smartphones all around the worldwide. According to a marketing research done by Gartner (2013), there is an increasing trend in mobile apps usage worldwide, He indicates that 21.58 billion dollars of  revenue has been made by mobile apps in 2013. Uber was established in 2009 as a digital platform that connects cab drivers and customer, by downloading the online application. Uber determines the location of customers and shows the location of the cabs nearby. Once the customer accepts to get a ride with push of a botton, the application is then authorized to take the payment based on the credit card information that has been registered under the customer’s name, without any further exchanges. Uber was established in San Francisco and has become the world’s most valuable startup in the past five years. Uber’s latest market value has been determined as 18.2 billon dollars in June 2014. However, as a disadvantage of developing markets, the entrance of Gett and Hailo in the UK market, decreased Uber’s market value. The major advantage of Gett in this compà ©titive market against Uber is charging flat fees unlike Uber. Uber has a surge pricing strategy depending on the demand, weather and distance, which is not a cost efficient way for customer. Therefore Uber it is not the cost leader in the UK e-hail market. On the other hand surge pricing has persuaded more driver to work for Uber, as it is more in their favor so that, they will not have to go through bad weather conditions or give rides in the rush hour with the usual flat fares. 2. Audit 2.a Organizational environment The increasing trend of smartphone usage especially in younger generation, technological improvements and increasing value for time perception established Uber’s increasing value. 2.b Uber’s business model Uber employs driver after they and their cars have been screened by Uber to  ensure comfort and safety of customers, Drivers are also given an iPhone once they have become a member of Uber. Uber drivers have higher income compared to traditional taxi drivers also they do not have to pay for the taxi license and the taxes that black cab driver are obligated to pay. On the consumer side, after downloading Uber, they can track the car as it approaches them on their as well as having some information about their driver before arrival such as previous reviews and ratings and their photo. Uber ‘s pricing strategy is based on the demand, distance and the car type, incase of high demands or bad weather conditions customers may have to pay a higher fee for their journey or depending and the type of car they request prices are different. Payment is done by the credit card information that the customer is registered the app with. Transactions are totally safe and secure. Uber splits the ride receipts with the driver. Uber originally used to take 20% margin of the transaction between the customer and the driver, which is now reduced to 15% due to high compà ©titions with Gett and Hailo. Uber covers its Research and technology developments, marketing and employees expenses by the percentage they take on each transaction. Another advantage is that Uber does not own a fleet of cars so they are much less costly than their competitors, This low cost business model enables Uber to keep the large percentage of it’s revenue as profits. Uber grows by reinvesting in R&D and acquisitions rather than investing in cars or expensive infrastructures. In the spotlight of this information, it is possible to say that Uber’s business model is low inventory, high transaction and high margin. Moreover, its business model is receiving the majority of funding from Google Venture. 2.c External and internal analysis of Uber Analyzing Uber from the resource-based view is crucial to understand competitive advantages of it in London taxi hailing app market. Constraints imposed by environment can have a big impact on Uber’s strategic planning and marketing. Therefore, six external conditions (Political, Environmental, Social, Technological, Economical and Legal) will be examined in relation to Uber’s business situation by using PESTEL analysis. Political factors effects transport services external environment in terms of CO2 emissions and climate change. Even though Political factors are more in favor of public transport in order to decrease CO2 emissions and help with the climate. Uber however is providing a superior service comparing to their competitors for instance Uber is offers hybrid cars, which is low in emissions and makes it easier for Uber to have some advantage when it comes to the political factors. Environmental factors such as weather conditions can affect Uber for instance higher demand due to bad weather conditions is evident. The price of the  journeys also increases when the demand is higher. Social factors including the change in lifestyle and high percentage of younger population using smartphones, indicates the customer needs, which brings them to the market. Technology developments have a major impact on Uber’s business. Increasing role of Internet in people’s life is also crucial for Uber to make innovations. Economical factors such as recessions influence directly the customer’s budget, therefore their buying power. On the other hand volatile fuel prices can have a huge impact on pricing and they are also quite unpredictable. Legal constraints also have a direct impact on Uber. Governments have the possibility to ban Uber, which is already the case in Germany, or even set new regulations for Taxi hailing apps such as Uber which can affect their performance in the market. In the next section we under take a SWOT analysis in order to analyze Uber’s Capabilities, which enables us to determine the company’s Strengths and Weaknesses as well as pointing out Threats and Opportunities. It is essential in a competitive market to be aware of the weaknesses and threats in order to be able to find solutions for them and also use the opportunities to gain more of them market share and hence increase the revenues. Figure 2: Presents SWOT analysis Strengths; which consist of internal capabilities, Uber was first in the market which creates a competitive advantage by high consumer awareness. One of the strengths of Uber is that, it has different alternatives for different customers. For example, Uber POP and UberX car alternatives are available for a cheap and fast drive, whereas if the customer is searching for quality it offers them the Uber Black Car and Uber SUV. Another strength  of Uber is that it has spread worldwide starting from USA. It has expanded through 200 cities worldwide. Moreover, the transactions are easy, safe and trustworthy. It offers a convenient way of travelling for costumers. Weaknesses indicate the areas that could be improved internally. The major point that is considered as a weakness for Uber is that they do not charge flat fees whereas Gett, which is their main competitor, offers flat and predictable prices. Moreover, Uber drivers do not have a taxi license, which can cause legal problems by time. However it operates in many cities, Uber does not operate in rural areas, which can be considered as a weakness. One of the complaints that Uber is facing is the poor consumer service. Uber offers a surge pricing for its drivers and do not hire them, but find them through agents. Analyzing the opportunities in depth we can determine that the most influential aspect in Uber’s business model is the fact that it’s a service rather than a product hence they do not have the high sunk costs that their competitors have to deal with. Moreover, being a mobile platform and not having a fleet of taxis, which is highly costly, has enabled the firm to turn most of its revenues into profits. These revenues are made from transaction costs rather than production cost. Uber does not employ drivers, which in this case allows the drivers flexibility also permit Uber to employ more drivers. The most important external threat for Uber in UK e-hail app market is the decreasing market share due to competitors such as Gett. The flat prices of Gett and some other competitors are creating a disadvantage for Uber. Not having the proper taxi license is another disadvantage for Uber. aside from that, there have been many protests by taxi companies in Germany, France, England and other nations accusing Uber to be illegal due to the fact that their driver are not paying the same tax rates as other taxi drivers, and other taxi companies accuse Uber of compromising passenger safety, and undermining legislations which exists for them. Competitors: According to the statistics of market shares of taxi hailing apps in London, Gett with 20-30% of market share is the market leader, Uber with 20% shares is the market challenger and Hailo with 10% is the follower in the market. Uber as the challenger is in a position where they can undertake some of the facilities and services that Gett is already providing for their customers in order to be able to improve their service, gain more customer and consequently gain more market share over time. Outlining the competitive landscape is important to appraise competition and indicating the strengths of the competitors can give the company objectives on what can be improved and examine weather they can be implemented by Uber. According to national statistics from department for transport, it is estimated that there are 78 thousand taxis and 153 thousand licensed private hire vehicles in England. The fÄ ±gures present that the number of PHV are twice the number of taxÄ ±s operatÄ ±ng in England. 31% of total licensed taxis and private hire vehicles in England are in London from which we can assume that private hirÄ ±ng is a popular choice for Londoners. Analyzing Gett-Taxi as the market leader we can imply that some of their most influential advantages are: Competing with flat and predictable prices: People who take taxis are not usually loyal to a specific brand and most people would choose the cheaper option and Gett has the advantage by having predictable prices without surge pricing. Enables Advance booking: Unlike Uber, Gett offers advance booking 2 weeks prior to journey whereas Uber has failed to implement this feature in their app. Offers 24 hours customer service for driver and customers: Uber has proven to be quite poor at following through with customer enquiries. On the other hand the only major advantage of Hailo that we came across is the fact that they are the only company, which has a real taxi license for all their cars. 3. Strategic Options: According to Porter, competitive advantage is derived from the value a firm  is able to create for its buyers that exceeds the firm’s cost of creating it. Utility of Uber can be increased by the following three categories: †¢Ã¢â‚¬ ¯ Service: Reducing the time to reach customers when they need the service can enhance Uber’s service. The cab and the driver have to be reliable and can provide modern and comfortable cabs for service. †¢Ã¢â‚¬ ¯ Personnel: service can be provided with professional drivers, drivers must be trained to provide personalised customer service. †¢Ã¢â‚¬ ¯ Image: Advertising, promotions on special days and to first users. Porter’s Generic Strategies: Porter called the generic strategies has three direction where the market can be segment or focused on particular path. They are 1. Cost Leadership, 2. Differentiation 3. Focus The Focus strategy has been subdivided into two parts: â€Å"Cost Focus† and â€Å"Differentiation Focus†. (Refer below figure) The Cost Leadership Strategy This strategy will help to gain competitive advantage through two main methods such as maximising profits by declining costs while selling for average price in the particular industry or growing market share through selling for lower prices, although still producing a even-handed profit on each sale as you’ve focused on lowering the cost. The Differentiation Strategy This strategy involves in creating your goods or services different from others and more eye-catching for your customers as well as to your competitors. Differentiation strategy can be achieved in a success way through good exploration about the goods or services, expansion and innovation of the goods or services, and the ability to provide superior quality products or services. This will create an inimitable image in the particular industry and alongside some scopes will lead to be valued by consumers. The Focus Strategy The Focus strategy is concentrating on specific niche markets through considerate the associations of that specific niche market and the  exceptional needs of consumers in it. This can be exclusively low-cost or well-specified goods or services on that particular industry. This will construct strong brand loyalty among consumers. This will lead the market segment to be less attractive to the competitors. Uber’s marketing strategy is to provide a premium service at premium price and have loyal customers. It aims at hip, tech-savvy customers whose time is valuable and who are willing to spend money for convenience. The campaign of Uber focuses on the service. The ice cream campaign in NYC is an example of the difference in convenience and experience. Where else could you have an on demand ice cream truck pull up in front of your house delivering ice cream for few people? The focus is on providing an extraordinary experience for the customer and let them do the talking about the brand and the unique service. Uber is having partnerships with Virgin America, which offers Uber’s points to its flyer members which increases awareness and credibility to their service. And Trulia is a real-estate company provide prospective renters a discount for up to three apartment visits as long as they registered for this promotion. Potter’s Five Forces Analysis states that business can be affected by some facts which are determine the competitive power of the business to drive in reality. The fact can be classified into five important forces. They are Supplier power, Buyer power, Threat of substitute, Threat of New Entry and Competitive Rivalry. 1. Supplier Power: the number of suppliers involved determines the supplier power in the particular business and the exclusivity of their goods or service, their business strength and power over your business, and the cost of swapping from one supplier to another. UBER’s suppliers power is high because UBER don’t employ drivers, free-lanced drivers get register with UBER and get the training and the guidelines before start their self-employment. 2. Buyer Power: the number of buyers involved determines the buyer’s power in the particular business, the cost to the buyer to swapping from your goods and services to someone else. UBER’s buyer power is high because it’s a  mobile platform and customers have different alternative services like Gett and Hailo. 3. Competitive Rivalry: the number of capability of your competitors determines the competitive rivalry. When the business has more competitors, and if the competitor can offer equally attractive products and services, then the competitive rivalry is high. UBER’s competitors are Gett and Hailo, they provide service in lower cost and they have their own drivers. 4. Threat of Substitution: the number of alternative options of your customers determines the threat of substitute. When the service or the goods has more substitute, then the threat of substitute is high. UBER’s threat of substitute is high because in London there is many substitute such as tubes, trains, buses, and black cabs. 5. Threat of New Entry: the capability of other business can enter into your market space by starting up a similar business like you is the threat of new entry. If the startup cost is low in terms of capital, time, and technology the new competitor can enter in to your market easily. Uber’s threat of new entry is very high because entering to taxi service business is very easy because the new business needs a simple mobile application and some free-lanced drivers. Alternative Market Directions for Uber Diversification strategies/path: Uber can focus on Event specific marketing like special events such as Valentine’s Day, Harvesting day, Children’s Day, Christmas and New Year days. Uber can provide special offers or promotions for its loyal customers. Personalised Car/Cab with the special trained driver for business people, celebrities and high-class tourists. Market development Strategies/Path: †¢Ã¢â‚¬ ¯ Expand the market with average pricing in nearby small cities and rural areas to attract more new customers. †¢Ã¢â‚¬ ¯ Initiating and developing new long term partnership with local hotel chains and airport local travel unit to provide transport service such as site seeing, and airport pic & drop to  their customers. †¢Ã¢â‚¬ ¯ Initiating and developing new long-term partnership with local schools to proved service for their students. †¢Ã¢â‚¬ ¯ Initiating and developing new business wing/unit for disable people to accommodate their transport need with the special features they need. †¢Ã¢â‚¬ ¯ Initiating and developing new long term partnership with courier service organisations like Royal Mail, DHL, and FedEx to provide their delivery service to their customers. †¢Ã¢â‚¬ ¯ Initiating and developing new long term partnership with local manufacturing companies to support their logistic service such as transporting to shipping, delivering goods to their customers, and transporting their raw materials for their production. 4. Marketing Strategies Uber focuses on hiring local drivers in each city. They are trying to localize the company in each city in every aspect they see. The effect of that is building a trust between the company, the drivers, and the customers all together. After hiring local drivers, Uber give these drivers trainings and guidelines to teach them the â€Å"Uber Way†. They also provide their employees with a global chat room that they interact in, talk, give ideas and suggestions, and best practices are shared across the company. So by cultivating collaboration and building trust internally and externally, Uber is trying to gain a competitive advantage in order to increase their market share, therefor increasing revenue. Uber likes to surprise and delight their customers. For example they delivered kittens and ice cream in New York. This is on of Uber’s ways to allow customer actions to go viral on social media and offline to try to send their message to new markets in order to gain new opportunities. Uber uses a unique way in serving their customers. They have a special team whose mission is to make sure customers get their taxi when and where they need them in no more than 9 minutes. They created a referral program integrated in the Uber app. It gives customers the ability to share a special code between their friends, and in that way Uber can track how many shares made, which indicates the percentage  of Uber’s customer’s acquisition. Uber’s Marketing Objectives: 1. Offer Better Service. 2. More Reliability. 3. Improve Customer Support. 4. Unique Style. 5. Provide Comfort. 6. Reduce Frustration. 6. Critical Analysis: The SMART analysis indicates that Uber can have many ways to improve every aspect in the company. Their objectives are not time-oriented. On the other had, their objectives are all achievable and relevant to the company’s mission. The analyses also show that most of the strategies and suggestions given are specific, achievable, and relevant. That indicates that Uber has many opportunities that they can benefit from in order to gain more competitive advantage and to operate better in the market. 7. Conclusion: Overall market share of Uber in e-hailing market can be increased by implementing some strategies.The report shows that Uber has many opportunities to increase their market value, market share and gain a competitive advantage over their competitors. Looking at the analysis we realise that Uber has a very high potential in achieving their objective about gaining customers and eventually increase their revenue. Along the side of improving some of their services, following some of the strategies mentioned above and solutions suggested by us, proves that Uber has a high potential and can use the first mover advantage. Distribution channel of Uber can be improved by targeting other parallel industries and move customers into greater contribution. Branding image of Uber can increase its value by providing good service and the operating areas can be increased to reach a higher volume of customers. Moreover, the opportunities discovered by using the analysis might be considered as a useful w ay of taking Uber to a higher position in the e-hail market in London. 10. References: Anon, How is Uber different from a standard taxi? Available at: https://support.Uber.com/hc/en-us/articles/201968463-How-is-Uber-different-from-a-standard-taxi- [Accessed November 13, 2014a]. Anon, The Business Co-Founder. Available at: http://businesscofounder.tumblr.com/post/34572063959/lessons-from-Ubers-marketing-strategy [Accessed November 13, 2014b]. Damodaran, A., 2014. A Disruptive Cab Ride to Riches: The Uber Payoff.Forbes. 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