The Influence of Aldo Leopold on Modern Resource Management and Essay

The Influence of Aldo Leopold on Modern Resource Management and Conservation - Essay Example They include the materials and energy that serves the needs of man in the society (McKinney, Schoch, & Yonavjak, 153). The naturally occurring materials like trees, soil, and water are all resources that are valued by man. There are those resources that can be replaced within a short duration and those that cannot be replaced within the short duration. These are referred to as renewable and non-renewable resources respectively (McKinney, Schoch, & Yonavjak, 153). Some of the non-renewable resources like coal may take thousands or millions of years to be replaced. An important point to note for the resources is that the rate at which they are consumed often exceeds the rate of renewal and posing a challenge on their scarcity. On the other hand, there are some resources that are in large supply but the problem is how to harness and use it appropriately e.g. the solar energy (McKinney, Schoch, & Yonavjak, 153). The increasing size of human population is becoming a threat to the natural resources with a possibility of overexploitation of the resources. There is, therefore, a need to provide an alternative to this excess exploitation of natural resources (McKinney, Schoch, & Yonavjak, 153). This brings in the concept of resource management. Resource management entails a controlled exploitation of the natural resources. It arises due to the fact the exploitation of natural resources has both costs and benefits. The big deal is to perform a cost-benefit analysis and develop a mechanism for proper use of the resources. Aldo Leopold was a philosopher, forester, and conservationist who played a key role in the establishment of wildlife management system in the United States. He was born towards the end of the nineteenth century and was brought up in Burlington (Austin College, para.9) He had an early interest in the natural resources and this would influence his future careers and profession. He pursued forest related careers at various institutions

Module participants' are required to produce a structured reflection Essay

Module participants' are required to produce a structured reflection on their own personal group experiences. A structured ref - Essay Example And it is generalisations that allow new situations to be tackled effectively.’(Gibbs 1988) The following essay presents a reflection of my experiences in a group assignment undertook as part of a Cross Cultural Issues module. On reflection I realise that, during the project, our group went through Tuckman’s (1965) four stages of group development. namely Forming, Storming, Norming and Performing. During the formation process, several issues arose which resulted in lack of critical analysis on the research, and unsystematic decision making within the group. In this report I am going use Gibbs’ (1988) model of reflection in order to look at the issues and to find solutions to overcome the problems in future. This evaluation is the first step in ascertaining how my beliefs and assumptions as well as my background and experiences may impact on my future organisational functioning as I search for a career in management. I will use cognitive complexity (Bieri 1955) by utilising a wide variety of theories of practice to support my reflection. Figure Gibbs reflective model 1 Contents Page 1 Abstract.....................................................................................................2 2 Contents page...........................................................................................3 3 Introduction...............................................................................................4 4 Problem & context....................................................................................4 5 Self-awareness..........................................................................................5 6 Evaluation..................................................................................................6 7 Analysis......................................................................................................9 8 Conclusion............................................................................................ ....10 9 Action plan................................................................................................11 10 Appendix...................................................................................................13 11 Bibliography.............................................................................................14 12 Reference list...........................................................................................17 1 Introduction Diversity in the workplace has taken on new importance (Thomas 2004) as changing economic circumstances prompt many companies to downsize and restructure themselves into flatter, more decentralized entities. The result is that today's corporations are built around groups that must find answers to novel and complicated business issues. These teams bring together diverse groups of people who incorporate a variety of backgrounds, ideas, and personalities. A reflection on my study would provide important bearing for me in prep aration for workplace dynamics. 1 Problem & context As part of the Cross Cultural issues module, we had to prepare a group presentation based on a critical analysis of the cross cultural issues a UK based firm would encounter establishing an Indian subsidiary. My diverse group of six comprised of three females: one British (X), one Polish (Y) and one Brazilian (Z). and three males: two British (J and A) and one Zimbabwean

Assignment Example | Topics and Well Written Essays - 1750 words - 10

Assignment Example Each of the puffy curved arms is 14 inches from outside seam to inside and the seat is 22 inches between the arms with the back extending up 29 inches. So it is large and a little squat looking with the total width including the seat and the two arms being 48 inches, making it wider than it is tall, even considering that part of each arm is curved, meaning that it truly only 45 inches measured across the seat from the outside of one arm to the outside of the other. The other three inches is puffiness of the arms. These chairs barely came through the apartment door with two people turning them on an odd angle and pushing them through while turning the frame. The chairs are light tan covered in microfiber that resembles fine Italian suede. The seat is divided into squares and overstuffed as is the whole chair. Everything is rounded. There are no square corners of sharpness of any kind on tis chair until you look at the little flat metal feet. The feet actually do not look large enough to keep the chair upright. The covering is clean mostly, except on its rounded corners. There are tiny little needle-like punctures on the bottom of one side of each chair where a tiny chocolate point Siamese loved it. And a slight tear in the fabric gotten during moving on the left side back corner, right on the 1† by 4† wooden framing piece, has been super glued together and is almost invisible. The wood underneath is a solid cut piece of light colored medium soft wood. There is a ofoam covering over the wood even on the back, and steel strips on the wood corners under the foam The wood across the back is a solid piece or well fitted matched p lanks, probably about  ¼ ‘ thickness from the sound it gives to a knock. The texture of the fabric covering looks like fine suede and feels like a baby’s bottom. It has little tiny wrinkles in it like skin and a subtle pattern that also looks like skin. Each of the arms has ample storage under the top,

Poor Interpersonal Skills Essay Example | Topics and Well Written Essays - 500 words

Poor Interpersonal Skills - Essay Example The action plan to deal with the situation is to have a personal meeting with Bethany to address the issue. I must come prepared with evidence of the problem including employee complaints, a periodical evaluation of her performance, and any other source documents to establish a pattern of her inability to communicate effectively. In the meeting I should reiterate to Bethany that the company believes in her abilities as a professional in the accounting field, but that it is imperative for her to improve certain aspects of her behavior at work particularly those associated with her interpersonal abilities. As a manager Bethany now has more responsibilities and the firm expects more out of her. In the meeting I will tell Bethany that her job is not at risk and that an action is going to be created to remedy the situation. After the initial meeting I will arrange another meeting in two weeks to provide an action plan for Bethany to improve her communication skills. I will seek the assist ance of the human resource department in this matter.

Economic Development Record Essay Example for Free

Economic Development Record Essay Economies all around the globe develop over time depending on the policies that they undertake to utilise the resources within their boundaries. Nations that utilise their resources experience economic growth and there is great inflow and outflow of goods and services in those nations. Economic growth means that the nation is utilising its resources efficiently and this has resulted into increased productivity within the various sectors of the economy. Industries within the nation increase as a result of the improved economic performance that will result to the creation of more employment opportunities hence reducing unemployment levels in the nation (Daquila 2004). Due to the increase in the number of industries and output in the already existing industries, employment opportunities increase and this brings about a reduction in the number of citizens unemployed. Unemployment is very crucial in calculating a nations GDP which is an indicator to a nations performance. Economic growth depicts an increase in pa capita income. This is the income associated with every individual in the economy although they may not have it in their possession (Daquila 2004). Pa capita income is calculated by dividing the overall value of the economy proportionately divided between the nations overall economy. On the other hand, Daquila (2004) defines economic development as the improvement in the livelihood of individual citizens of a nation together with that of the systems that are in place in the nation. A nations system involves economic, political and social framework from which the economy operates in. All the above plus economic growth defines economic development. Economic performance is measured using various tools that include GNP and GDP. GDP estimates the economic performance giving consideration to internal and external trades (Daquila 2004). In establishing the GDP, consideration is given to consumption in the nation, expenditure by the Government, investments in the nation, trades in the nation that is imports and exports. Consumption comprises of perishable non-perishable goods and services within the nation. In determining the non-perishable goods they are assumed to be products that will last for a period of three years from the date of manufacturing. GNP refers to the difference between imported products and services and the exported products. The value of this difference added to the value of products services generated within the economy results to the GNP. To evaluate the economic performance of a nation, a number of indicators are used to measure exactly how the economy is progressing towards its economic objectives. A nation has to determine the level of consumption of its individual citizens (Todaro 1997). The level of consumption means the proportion an individual spends after receiving their income. The remaining part of the income is saved. The consumption level of a nation determines the amount of savings in the economy. Savings on the other hand, stimulates growth in the economy. When individuals increase their savings, the financial institutions hold more money thus the cost of accessing funds is low. Business entities in the nation are able to access funds at a low cost from the financial institutions. The borrowed funds are used for the expansion of business operations across the industries within the economy. The expansion of business activities results to an increase in national output and employment (Munk OHearn 1999). The increase in national output increases the exports of a nation in respect to its imports. The resulting balance of trade will be positive hence the nation has more in terms of foreign reserves that will assist them when it comes to purchasing produces from other countries. Therefore, savings are very vital for the improvement of the performance of an economy. T o induce savings in the economy, the opportunity cost of saving has to be high so that individuals can adopt a trend of saving since they are compensated bountifully for foregoing consumption. It can be concluded that increase in savings results to an increase in investments that contribute towards the growth of an economy. Increased activity within the economy results to an increase in production levels of the economy (Ros 2000). The nation is able to produce more products services, that are able to meet the needs of the nations population. Since the products are locally manufactured, they are quite affordable thus individuals are able to spend less and save more. This results to an increase in the real income that individuals have in their pockets and are ready to spend. It should be noted that increased production has to be met by equal consumption otherwise it could result to losses that will hurt the economy. Depending on the expansion of the economy, rates of unemployment adjust themselves in more or less the same rates. Increased production will require an increase in manpower that will be able to maintain the production levels. Nations with large populations face a major challenge in absorbing its citizens in the workforce. Individual citizens for a start need to have the relevant skills required to perform in different industries. Education in these economies has to be committed and directed towards instilling individuals with the necessary skills that will be useful in rendering service to the various sectors of the economy. A skilled population results to economic development since the individuals are prone to exercise their skill base towards living a better life thus contributing to the economys growth. Economic development depends also on the expenditure of the nations authority (Preston 1999). The government consists of various departments that oversee the implementation of policies that improve the state of the economy. These departments are given the financial power to implement and improve on the various economic aspects for example the development of basic infrastructure within the economy. In improving the infrastructure, the government releases money from its coffers to the public. This way, the supply of money increases to equal its demand. In most cases, when the Government spends on its development programs, money supply is more than the money demanded. If this situation is allowed to go unchecked it might result to inflation and later to stagflation; a situation where both the unemployment and inflation rates are so high. Therefore, Government involvement in an economy has to be considered carefully when undertaking development projects. Increased rates of production in an economy increases the output levels that may go over and beyond in meeting the local demand. Having satisfied the local demand, excess products can be exported to other nations. This facilitates international trade where nations exchange commodities they have in excess for commodities they do not have. Nations should avoid importing more and exporting less as this leads to a negative trade balance. This means that the nation spends more in foreign currency than it receives. Third world and developing nations should consider the above variables if they are to achieve spurred economic growth. They most important is to ensure that their population is skilled so that they can utilise their skills by establishing some income generating activity that will create employment opportunities and increase the total production of their economy. MALAYSIA. The present day Malaysia attained independence in the 1957 from the British administration and accorded the sovereign status in 1963 (Malaysia 2008). The Britons established themselves in early 1880s and later went on to control the state by establishing a self governing authority for the Malaysian people. The Federal States of Malaysia were incorporated in the 1895. The states were under the British control until when the Japanese invaded in 1942. Britain waged war over Japan and in 1945 the states where reinstated under the jurisdiction of the British. In 1948, guerilla movements begun protesting against the colonial authority that resulted to an emergency declaration. In 1965, the Federation state of Singapore disintegrated from the member nations opting for self governance. 1957 saw the attaining of independence of the Federation from the British authorities. In the late 1960s, the Malaysian government sought to balance the economy among its nationals so as to attain economic development by equal distribution of national wealth among its constituent communities (Malaysia 2007). Malaysia has got a rich culture that is evident from its diverse communities and language speaking citizens. Its population consists of Chinese speakers, Indians, English, among other languages (Malaysia 2007). The large population consists of Malaysian natives alongside Chinese, Indians and other local communities. Malaysia consists of individuals who practise different religious beliefs that include Hindu, Islam, Buddhist, Sikh among other religions. The richness of Malaysia presents it with a competitive workforce than any other nation in the world. The improved economic performance of Malaysia is as a result of a united people from different cultures and not allowing politics to ruin their nation. Malaysia has had to maintain a united nation and focussing on the togetherness of the nation by avoiding self interests. Malaysia is enriched with natural resources that include crude oil and that it has had to deal with the resource in a careful manner to avoid the negative repercussions that result from the unfair distribution of natural resource gains. Gross Domestic Product (GDP). The GDP reflects the total activity in the economy. This considers both the public and private sectors of the economy and their contribution towards the development of the economy. It also takes into consideration the behaviours of the citizens in regards to spending. Malaysias GDP has been increasing constantly from 1998-2008 at a rate of 6- 9 per cent. In 2007, the GDP stood at $357. 4 billion. Malaysias population is slightly higher than 26 million thus giving a pa capita income of $13,300 (UNDP 2008). The GDP in 1986 was at $28. 2 billion. The GDP increase signifies an increase in all major facets of the economy. Government spending has increased from 16. 4 in 1986 to 12. 0 in 2006. The Governments decision to reduce its spending avoids the negative impacts that result when money supply is more than the money demanded in the economy. Key sectors of the economy that have immensely contributed to the GDP are industrial sector that has been a leading contributor since 1986 to 2006 with a percentage of 49. 9 compared to 38. 5 in 1986. Manufacturing follows a close second with 29. 8% in 2006 from 19. 3% in 1986. The provision of services has also reduced from 41. 7% to 41. 3% in 2006. Lastly, agricultural sector has reduced its contribution to the GDP from 19. 8 per cent to 8. 7 per cent in 2006 (Malaysia 2007). The above data shows that the economy has shifted its dependency on agriculture as a contributor to the GDP. The economy has shifted its focus mainly from agriculture to industrialization where industries are the main contributors to the GDP. Industrial growth is a major boost to the Malaysian economy since it increases the nations production ability and is able to meet the demand of the nations internal demand. This has elevated Malaysia to an industrialized nation due to its potential ability to the production of services products. These increased production levels are able to meet local and international demand hence receiving foreign currencies that will result to a positive capital account. National Consumption and Savings. According to the World Bank report, the percentage of consumption by the citizens that was used in calculating the GDP decreased from 54. 2 in 1986 to 50. 3 in 2006. That of the government decreased from 16. 4 per cent to 12. 0 per cent . The mean growth per annum indicated the citizens consumption had decreased from 9. 1 to 7. 0 and Government spending reduced from 6. 5 to 5. 0. The figures show that both the Government and individuals in the nation have adopted a behaviour of saving or reducing their spending habits. By reducing spending, more is saved with the nations financial institutions as the individuals are compensated for foregoing consumption. Savings spur growth in the sense that investors will borrow funds and expand their business activities that will result to an increase production. The increase in production across the industry results to increase in the national output. An increase in national output will increase the nations participation in international trade thus achieving a favourable trade balance. Low government interference in the economy maintains a stable money supply within the economy. By maintaining stability in money supply in the economy, inflation is avoided since it negatively impacts the economy. Increased government expenditure increases the money supply in the economy. This increases the purchasing power of individuals in a way that they can be able to purchase goods and professional services in the country. This presents a situation whereby there is much money chasing few goods within the economy. To mop up this effect the regulating financial authority will need to increase its interest rates. This means that there will be an increase in cost of borrowing that will result to inaccessibility to funds by corporate organisations. Corporations will be unable to maintain their current levels of production thus the need to lay off its workers. This situation will be characterized by increase in unemployment rates, reducing national output and economic performance. The economy will not be performing at its optimum and will have wasted on its human resource. Therefore, Government involvement in large amounts destabilises a nations economic performance. Income and Output Growth Rates. The export of manufactured products have increased since 1986 from USD6. 009m to USD124. 530m in 2006 (World Bank). The above figures indicate that manufacturing has increased over time and that the economy has shifted its focus to increasing its industrial capacity. By increasing industrial capacity ensures that the nations industry is able to satisfy the ever growing demand of the nation. Economic development requires that a nation first satisfies its population fully before embarking on the satisfaction of outside markets. The nation is required to make sure that all key markets are satisfied and that the demand of a nation is met. These means that different industries will have the capability of serving different markets. Unless a nations population is satisfied, development of an economy is difficult. New industries are formed that provides the final consumer with a product similar to those of another company to enhance competition. Competition among industries ensures the production of quality products that will give the consumer a wide range of choice. Companies will strive to out do one another in both the primary and secondary markets. The increased income and output growth rates can be attributed to the rich natural resources that are found in the nation. The natural resources are raw materials that are processed into finished products that are exported to international countries. As of 2004, its partners included the US, Korea, Singapore, Germany, Japan, Hong Kong, Indonesia and China. Among the raw products include oil, copper, timber, natural gas and iron (Malaysia, 2007). Most industries in Malaysia are processing based located mainly on the western island. They process the raw materials that are extracted into finished products. It is due to this value addition that the nation is mainly industry based and most of the population is employed. The industries in Malaysia also deal in the production of textiles and electronic equipment. They development of industries in the large scale have contributed significantly to the development of the Malaysian economy. Employment and Unemployment Percentages. Malaysias population comprises of the elderly, the middle aged and the young. From the world bank report, children legible for enrolment into primary schools stood at 96 percent for both male female students in 2006. this indicates that the Malaysian government embraces education as a factor to economic development. A skilled population is economically beneficial since the individuals will strive to utilise their skill base towards achieving their own development that will later translate to economic development. One of the key issues addressed by the UNDP towards achieving the Millennium Development Goals (MDGs)is human capacity building which means that nation should ensure that they impart skills on their citizens by way of offering courses education to all its citizens and ensuring that it is affordable for all (UNDP). A nation that has an educated population is set to reap benefits from that same population because they will aim at exercising their knowledge in the various fields of expertise and also aim at developing products that will improve on the already existing ones therefore looking for new efficient ways of production. Malaysias literacy rate stands at 89 percent as of 2006 indicating that most of the population is skilled resulting to lower unemployment cases. Malaysia is among the developing nations and is striving to attain the MDGs that will direct them to achieving a developed world status. With about 5 per cent of land is available for farming, Malaysia cannot only depend on farming and that the population must acquire some knowledge in other activities. As of 2007, Malaysias unemployment rate stood at 3. 2 per cent and inflation rate stood at 2. 1 per cent. The Phillips Curve states that inflation and unemployment are inversely related whereby high inflation results to low unemployment rates and vice versa. This is because when there is high inflation in an economy, most of the population has got some amount of money therefore resulting to some form of engagement in income generating activities. Therefore Malaysia as an economy has really tried in dealing with unemployment levels by making sure that a large part of its population is skilled. The Malaysian Government has formulated a number of policies aimed at improving its economic performance for example the New Economic Policy of 1971 (Malaysia 2007). Government Budget Activity. Government involvement in an economy should be restricted for it can have diverse negative impacts on the economy. The government, however, has got to interfere with severally in the economy since it has to provide for social amenities such as water, education, infrastructure among others for they cannot be left to the control of the private sector. When providing for these amenities, the Government gets money from the state coffers and pays the contractors among other parties that will implement development policies in the nation resulting to increased money supply. By increasing money supply, prices of products rise since the demand for the products will also increase. This will lead to increased production of products and increase national output that will result to more employment opportunities. Therefore government interference is good in the short run as it will stimulate the economic activities. However, continued government interference will hurt the economy in the long run since more money is available in the nation thus raising the prices of the products in the economy. The soaring inflation will then destabilise the nations exchange rate that will depreciate. With the depreciating of the local currency, Ringgit, imports become expensive since industries and individuals will require more money to import products thus hindering the efficiency of engaging in international trade. From the world bank report 2006 on Malaysia, 99 per cent of the population has access to clean water supply. The government has therefore given preference to the basic resources that affects the Malay in their daily lives. The report also gives the figures for Government involvement as; current revenue has decreased from 26. 8 per cent in 1986 to 21. 6 per cent in 2006 while the overall budget balance has increased from a deficit of -0. 8 per cent in 1986 to 2. 8 per cent in 2006 (Malaysia 2007). This figures indicate that the government has restricted on its involvement in the economy so as to control the economic impact caused by excessive Government involvement.

Developmental psychology Essay Example for Free

Developmental psychology Essay Within the characteristics of effective learning there are seven areas of learning and development made up of three prime areas and four specific areas. The areas describe what children learn through play and exploration, active learning and creating and by thinking critically. Prime areas If a child is not secure in the prime areas between the ages of 3 and 5 years, the absence of these may make other areas of their learning more difficult to achieve. This makes the prime and specific areas so interdependent. The prime areas occur in all cultures and communities and are not dependent on the specific areas. Personal, Social and Emotional Development Making relationships Self-confidence and self-awareness Managing feelings and behaviour Communication and Language Listening and attention Understanding Speaking Physical Development Moving and handling Health and self-care Specific areas – These are less time-sensitive. The specific areas reflect what children have understood and their cultural knowledges which can develop during various stages through life. The specific areas of learning will not take place easily without the prime areas. Literacy Reading Writing Mathematics Numbers Shape, space and measure Understanding the World People and communities The world Technology Expressive Arts and Design Exploring using media and materials Being imaginative The documented expected outcomes are the early learning goals within the EYFS. The early learning goals are the 17 learning and development requirements covered in the characteristics of effective learning – the three prime and the four specific areas. The early learning goals summarise the knowledge, skills and understanding that all young child should have gained by the end of their reception year. However, not all children will reach the early learning goals by this stage and as all children are unique, their learning will be supported by practitioners to help them progress at their pace. The Development Matters in the Early Years Foundation Stage document provides, in detail, guidance for observing what children are learning. It also provides examples of what early years practitioners can do to enable environments and support positive relationships across all of each area. The documented outcomes are assessed and recorded in a variety of ways and come together to help finalise the Early Years Foundation Stage Profile which is completed at the end of a childs reception year. Leading up to this point, the development of children will have been observed and their progress tracked. Some of the methods used to record progression towards the early learning goals are: Daily observations when children are in session – At nursery all staff observe all children, not just their keychildren. The  observations are linked to the EYFS and recorded in the children’s folders 2 year check – this consists of a short written summary of a childs development when they are between 24 and 36 months Learning and Development Summary – observations are used to complete this document on a termly basis for each child. These are shared at parent consultation appointments. Contributions from parents – very useful as parents information is essential and helps support early learning in the home environment.

Commercial Casino Industry

Commercial Casino Industry Commercial Casino Industry has been occurring in United States over 75 years since Nevada legalizing it. When Chef Wolfgang initiated to out fine dining restaurant in commercial casino, this is the beginning of food and beverage revolution in industry in 1992. In 1995, American Gaming Association was created. MGM Mirage acquired Mandalay Resort Group, Harrahs Entertainment Inc. and Caesar Entertainment in 2005 and the commercial casino industry started booming and other states started legalize opening casinos since then. The international gaming industry is expanding. Many U.S. casino companies expanded or planned to expand to other countries such as Macao, Korea, Taiwan and Singapore. The international casino industry tends to have rapidly growth as gross gaming revenue in Macao has been more than gross gaming revenue in Las Vegas strip since 2006. Know your enemy and know yourself, and in a hundred battles you will never be defeated. (Sun Tzus The Art of War Writings). This Chinese wisdom of warfare probably helps companies deploy a better strategy in many business situations. The MGM Mirage Inc. is the largest company in the Hotel and Casio industry by revenue in the U.S., but MGM financial statement showed that company bottom-line in debt. The company was facing bankruptcy code in the early 2010. In this project, the report had been organized and presented MGM Mirage Inc. or MGM Resorts International in 4W framework: (1) Who are we? (Company profile, Hotel and Casino industry profile), (2) Where are we? (Sophisticated tools in Management, Technology, Marketing, Financial and Accounting were used to analyze the company position with competitor in the industry.), (3)What are problems? (SWOT analysis) and (4) What are solutions? Who are we? : Know yourself MGM History The Beginning of Las Vegas Race: 2005: MGM Merged Mandalay Bay Group. MGM Profile in 2009 Organization Structure Company Strategy The MGM Mirage Inc. strategy is to generate sustainable, profitable growth by creating and maintaining competitive advantages and through the execution of our business plan, which is focused on: Owning, developing, operating and strategically investing in a strong portfolio of resorts; Operating our resorts in a manner that emphasizes the delivery of excellent customer service with the goal of maximizing revenue and profit; and Leveraging our strong brands and taking advantage of significant management experience and expertise. (Source: MGM Mirage 2010 Form 10-K) Current Operation As of 2009, the MGM Mirage reported that the company has completed control of 14 casino resorts and hold 50% of investment in 5 casino resorts. In addition, the MGM Mirage also owned 3 golf courses in Las Vegas, Mississippi and California.(Source: MGM Mirage 2010 Form 10-K) Casio Resort ( Completely owned) Nevada MGM Grand Las Vegas Mandalay Bay The Mirage Excalibur Monte Carlo Railroad Pass, Henderson Gold Strike, Jean Luxor Bellagio New York New York Circus Circus Las Vegas Other MGM Grand Detroit Beau Rivage , Biloxi, Mississippi Gold Strike Tunica ,Mississippi Casio Resort ( hold 50% in stock) Nevada City Center (Joint Venture with Dubai World) Circus Circus Reno Siler Legacy Other Borgata, Atlantic City, NJ Gran Victoia , Elgin, IL MGM Grand Macau, China Industry Analysis Industry Analysis process is an essential assessment tools for every company to deeply understand industry current trends and opportunities. In fact, company will gain a better position and achieve a competitive advantage when it truly understanding marketplace. In the complex marketplace, the U.S. government is categorized industry with 4-digits Standard Industrial Classification (SIC) system. In addition to SIC, the North American Industry Classification System (NAICS) is a new standard for the industry. The NAICS with 6-digits code contains more details than the SIC system. The purpose of SIC and NAICS are economy analysis. The MGM Mirage Inc. has been classified with SIC into three major categories: Hotels and Motels (SIC 7011), Coin-Operated Amusement Devices (SIC 7993) and Amusement and Recreation Services, Not Elsewhere Classified (SIC 7999). In addition, the MGM Mirage inc. also has been classified with NAICS into two categories: All Other Amusement and Recreation Industries and Hotels (except Casino Hotels) (713990) and Motels (721110). To thoroughly understand MGM Mirage Inc. marketplace, the hotel industry and casino industry had been analyzed. Hotels and Motels Industry (SIC 7011) The U.S. government defined a company in Hotels and Motels Industry as Commercial establishments, known to the public as hotels, motor hotels, motels, or tourist courts, primarily engaged in providing lodging, or lodging and meals, for the general public. Hotels which are operated by membership organizations and open to the general public are included in this industry. Hotels operated by organizations for their members only are classified in Industry 7041. Apartment hotels are classified in Real Estate, Industry 6513; rooming and boarding houses are classified in Industry 7021; and sporting and recreational camps are classified in Industry 7032. Recession impacts hotel industry In May 2010, Standard Poors industry report stated the hotel industry is still in an unstable condition. The industry will require a longer period to recover from the 2008 recession. Currently, the industry is operating in a difficult situation. The hotel industry is facing drastic competition that forces hotel businesses to lower room rates, which in turn results in lower profit. The data from Smith Travel Research (STR) Inc. indicated that on average the hotel industry has lost its Revenue Per Available Room (RevPAR) since 2008. The 2008 recession has also brought the hotel occupancy rate down from 60% to 55%. In addition, average daily roommate also dropped significantly 8.8% in 2009. Moreover, room demand dropped 6% in 2009. In contrast, the supply of rooms rose 3.2% in 2009 (refer to figure1). While the U.S. government is making their way out from 2008 recession, SPs forecasted that the hotel industry will not return to the same pre-recession level for the next eight to ten years. Real GDP helps the hotel industry in predicting room demand In the hotel industry, a high accuracy in room demand elasticity estimation provides CEO with essential information for a long term planning and deploying strategies. In 2009, the research by Dr. Hanson from Global Hospitality Group Hospitality Lawyers shows approximately a 1-to-1 relationship that holds between the U.S. Real GDP and room demand until the 2001 economic crisis. The real Gross Domestic Product (GDP) is the total output of goods and services produced in a country and adjusted for priced change. The demand is more elastic when the greater the proportion of income spent on the good. After the 2001 recession, the demand retract and continue to grow in a slower pace when compare with the real GDP. The GDP is increasing 4 times faster than the room demand does. The 5 factors that researcher believes that might have an influence GDP and room demand relationship are: Long-term deterioration in consumer confidence, Higher consumer saving rate, consumers trying to recover lost investment, new pattern of behavior and proposed levels of tax increase affecting disposable income. Moreover, in the 2008 recession, the researcher also believes that the recession might create an additional snap back for room demand. U.S. Business and group travel The hotel industry profitability can be influenced by a demand from business travel. According to a member survey, the Association of Corporate Travel Executives (ACTE) reports hotel expense represents, on average, 40% of all business travel expense. In addition, American Express stated that airfare will increase from 2% to 10% in 2011, and hotel rates will increase 1% to 10% (Paurowski, 2010). The survey also indicated that 35% of its member strongly considered optimizing hotel expense in 2011 and 50% of its member expressed concern regard increasing in expenses. Passenger Name Record (PNR) in Computer Reservation System (CRS) showed that cooperate travelers have shifted booking methods from Travel Management Companies (TMCs) to Online Travel Agency (OTA). In fact, 30% of its members stated that online hotel rates offered are lower than negotiated rates. The complementary items that are preferred by the majority corporate travelers are: complementary cocktails, free WiFi-internet ac cess and comfort. In conclusion, the demand for business and group travel will likely be for cheaper rooms at lower rates with free complementary. (Michael Boult, 2010). Domestic and international travelers Shifts in airline schedules and passenger booking have a direct impact on hotel occupancy. According to the data from Air Transport Association (ATA) 2010 annual report, the static in figure 3 shows that domestic capacity had a declining trend since 2000, and the data also showed that passenger enplaned has dropped significantly from 743 million passengers in 2008 to 703 million in 2009 reflecting a 5.3% decrease of airline industry capacity. In fact, profit margin in the airline industry has been on the negative side. Airliners cut back routes and canceled destinations. For international travelers, The U.S. Department of Commerce (DOC) and Office of Travel and Tourism Industries (OTTI) expect the industry growth in 2010 and gradual increase to approximately 6-9% through 2015. Five countries, excluding Canada and Mexico, that rank highest in number of visitors to the U.S. in 2010 by volume are: China (40%), Brazil (35%), Korea (35%), Hong Kong (27%), New Zealand (24%) and Australia (19%). A weakening in U.S. currency helps the hotel industry by stimulating the demand from international travelers. Medical tourism -a little hope for the hotel industry In the economic downturn, hotel industry needs a stimulant plan to boot-up its occupancy rate. In 2009, Reuters Health section provided some interesting facts about medical tourism in the U.S. The report indicated that U.S. health providers have lost 650,000 patients to hospital oversea such as Thailand, India, and Singapore. In addition, the health providers are predicted to lose as much as $67.7 billion in revenue in 2010. Oscar Goodman, Mayor of Las Vegas, foresee the opportunity for the hotel industry in Las Vegas. Mayor encourages a local business to support the idea of medial tourism. The medical tourism will be an alternative business in the area, the national public radio reported. Casio Industry Casinos are the largest revenue generator in the gambling industry. The industry provided approximately 350,000 jobs in the U.S. market. The American Gaming Association and the National Indian Gaming Association (NIGA) are the main organizations in the U.S. casino industry. The AGA encourages its members and their employee to be aligned with updated law and regulations. Moreover, AGA is a realizable source for a gaming industry providing gaming history, educational program, and statistic data on the Casino industry. In addition, the NIGA under the Indian Gaming Regulatory Act has provided Native Americans opportunities to legally run casinos. U.S. casino trends The casino industry has been hard-hit by the recession. According to the United States department of labor, the Mass Layoff statistics (MLS) program showed that the hotel-casino industry eliminated 13,000 jobs in 2008 (Labor, 2010). The revenue trend in the casino industry has been on a downturn for the last two consecutive years. The SP expected a slow recovery from the casino industry. Las Vegas, Nevada As of 2009, the American Gaming Association reported that Las Vegas with $5.55 billion in revenue was a dominant U.S. market. According to Las Vegas Convention and Visitors Authority (LVCVA), the statistic in figure 5 showed a 2.4% increase in the number of visitors from 2009. The Las Vegas Strip gaming revenue was increased by 4.3%, but the downtown area gaming revenue was decreased by -7.3% from 2009. In 2009, the 14% unemployment rate in the state Nevada plummeted the economic trail. On a carryover impact from the economic crisis in 2008, the number of attendees at conventions, and a number of scheduled conventions and number of meetings held remained on the decline with decreases of -1.1% and -6.7% respectively. According to the Las Vegas Visitor Profile, Market Segment reported by LVCVA (2009) that 76% of Casino guests were most likely to be traveling in a party of two and average stay in Las Vegas is 4 nights. Casino guests on LVCVA survey stated that 87% of visitors called the hotel-casino directly to book their accommodation. In 2010, SPs industry report estimated casino revenue on the Strip to be 35%-45% of total revenues, and the revenue from hotel rooms was 20-30% of the total revenue. A total enplaned and deplaned air passenger continued to decline. The number of air travelers accounts for 42% of all visitors. (LVCVA visitor profile: ir visitor version). The SPs report indicated strong growth from Las Vegas. Atlantic City, New Jersey The Atlantic City is a second large of the U.S. casino marketplace. The static in figure 4 shows that casinos in the area have been losing revenue -5.7%, -7.6% and 13.2% in three consecutive years. According to SP, casinos in Atlantic City are facing heavily competition from New York and Pennsylvania. Macau, China: New Era of Asia Gold rush Macau is a special administrative region of China. The CIA The World Factbook reported that, in 2006, Macaus gaming revenue surpassed that of the Las Vegas strip, and gaming-related taxes accounted for more than 70% of total government revenue. The Macau market attracted many casino operators from Las Vegas to come and establish a new home-based outside the U.S. In 2010, the profit in Macau market increased 9.7% in revenue from its loss in 2009. The gaming industry in Macau was expected to rise, but, SP reported a concern about the room surplus of 40% in 2011 and 2012. In the long-term, SP still believes that the Macau gaming industry will generate a significant profit for China. Singapore: A hidden dragon Singapore is the one of the most strategic locations in South-East Asia. According to Economy Watch and World Bank, Singapore is considered to be a very attractive country for new business. Sources in the Wall Street Journal on October 7, 2010 reported that the Marina Bay Sands project is a 8-billion dollar casino in Singapore, known to be the cleanest city in the world. The casino includes three 50-story structure with approximately 2,500 rooms; a casino, retail stores, dining and 800,000 square feet entertainment complex. The SP 2010 industry report predicted that the top five markets for Singapore casinos are: Indonesia, China, Australia, India and Malaysia. In addition, the Marina Bay Sands should have no effect on Macau market because the hotel presents a more family-orientated appeal. Legal and Regulation Internet/Online gambling Online gambling is illegal in the U.S. as of November, 2010. Internet Gambling Regulation, Consumer Protection, and Enforcement Act (H.R. 2266) was introduced to congress in May 2009 by Frank, Barney (Rep). The bill is aimed to Unlawful Internet Gambling Enforcement Act of 2006, which prohibits internet gambling operators from receiving money related to any online gambling that violates State or Federal law (Frank, 2010). Online gambling is also on a serious debate among AGA members regarding a safety and government regulation. The concerns regarding an online gambling are a security technology such as firewall to protect million online users. Summary Key Fact from Industry Analysis Room demand dropped because economic recession. Occupancy rate dropped because dropped in demand and increasing room surplus. Real GDP could be used as atool for the hotel industry to future demand. Business Travel booking trends changed from Travel agency to online travel agency. China is a number one inbound visitor by volume from oversea. Medical tourism could be an alternative route for simulating demand. Gaming on Las Vegas Strip continues generating profit. Atlantic City market for casino is not pleasant after loss in profit of 3 consecutive years. Macau is growing and generated more revenue than Las Vegas Strip. Singapore could be a new growing casino market in South-East Asia. Legalize an online gambling is an ongoing process. Casino Market: Oligopoly Market Competition In 2009, the casinos industry had revenue in total of $US 21.8 billion. To determine an economic competitive type of market in the industry, the company uses a four-firm concentration ratio as the indicator. The ratio is the percentage of total industry sales made by the four largest firms (Fig. 4). The four-firm ratio for the casinos industry is approximately 70%, which had created an oligopoly form of market competition. In oligopoly, one firm decision can have a direct influence on demand, price, and profit of competitor in the industry. Figure 5: Companies in the casino industry by revenue Furthermore, external assessment of the industry is a critical process for management in decision making. The Porters Five-Forces Model, competitive analysis tool, has been utilized for in-depth industry analysis. The model analysis is provided five perspectives in assessing the industry: Rivalry among competing firms, Potential entry of new competitor, Potential development of substitute products, Bargaining power of suppliers, and Bargaining power of consumers. Porters Five-Forces Model Analysis Rivalry among existing competitors: MGM : Rivalry among existing competitors : HIGH Same-size competitors High exit barrier Indifferent in product and service among competitors Table x: Threat of existing competitors The competitive atmosphere in hotel industry is high. There are a lot of competitors in industry. Furthermore, it seems that competitors compete in same dimension because in commercial casino industry, customers are not much diverse. Therefore, players in this industry found it hard to target different customers with different needs There are a lot of competitors with equal power and size. Exit barrier in commercial casino industry is high because a company invests huge amount of money, especially, building cost. Even a company wants to exit from the industry, sometimes it force to stay in because exit costs are high. Product and service in commercial casino industry are identical. Moreover, there is no switching cost for buyers. Thus, competitor might cut price to attract buyers. Fixed costs are high. In order to compete in hotel industry, a casino manager adopts revenue management. The process allows buyers to stay in same type of room in different price. Even a hotels products and service are not rapidly become outdated but competitive atmosphere in commercial casino industry is hot, therefore, companies cannot make high profit from this industry. Threat of new entrants: The threat of new entrants for hotel and motels industry is low. The industry has significant barriers to entry which include: MGM : Threat of new entrants : LOW Supply-side economies of scale Demand-side benefits of scale Customers switching costs Capital requirements Restrictive government policy Position advantages independent of size Unequal access to distribution channels Table x: Threat of new entrants Supply-side economies of scale: In commercial casino industry these economies hardly appear. Even a company built more rooms or more recreations in its casino, these economies will not appear. Moreover, the company has to carry more cost, more maintenance cost and more employees cost. Demand-side benefits of scale (network effects): These benefits occur when the numbers of buyer patronize the company. However, these benefits might not occur in commercial casino industry. In commercial casino industry, a company will find advantages in location, facilities and characteristics of personal working in direct contract with customers. Therefore, having a lot of customers patronize a company will not provide huge demand-side benefits of scale. Customers switching costs: In commercial casino industry, when customers purchase service from a casino, it is one time use. Therefore, there is no switching cost. Capital requirements: In order to enter commercial casino industry, a company needs to finance huge budget and the industry return is not attractive. Thus this industry has high barrier. Position advantages independent of size: These advantages are not depends on a companys size, incumbents can have competitive advantages that not available to competitors. These advantages in commercial casino industry can stem from locations, brand identities and service. Unequal access to distribution channels: It is not hard to establish or find distribution channels in commercial casino industry. A company could use agents or let customer books rooms via its websites. Restrictive government policy: There might be some restriction related to commercial industry such in some area government do not allow a company to build a building that higher than 2 floors or in some countries, a company has to has citizens hold more than half of a companys shares to operate in that country. In U.S., commercial casino industry is the most regulated and monitored industry. The threat of substitutes: MGM : Threat of substitutes : HIGH Competitor Table x: Threat of substitutes There are some substitutes for commercial casino such as hostels, apartments or houses. Customers can stay in hostel, apartment or houses and go to gaming or using recreation facilities at casinos. If buyers concern convenience, they might prefer casino. Because they will have maids clean their room and casinos always locate in a convenience location. If buyers concerns price, they might stay in hostel. However, if buyers concern privacy, they might prefer house. There is no cost of switching to substitute. Buyers can change to substitutes anytime if they would like. Hostels, apartments and house can be substitutes for casinos. They perform similar products and service to casinos, if you concern only hospitality part. However, there are some differences which made substitutes have huge different from hotels. Buyers have to determine trade-off between hotels and substitutes. In this industry, the threat of substitutes is not high because substitutes have too many differences in facilities and service from casinos. Thus, industrys profitability is not suffered from substitutes. The power of suppliers: If suppliers have power over a company, suppliers might set its price higher, limit quality of service and shift its cost to other parties. In commercial casino industry, a company uses wide range of different suppliers such as supplier for construction, supplier for food and beverages and supplier for hotel equipment. There is almost no monopoly in hotel suppliers. Moreover, only a few supplies that have switching cost such as securities equipment and suppliers did not differentiate their products. The company has to differentiate itself by choosing good location, providing well-maintenance facilities and providing supreme service. Furthermore, the company can easily find substitute suppliers. Therefore, the power of suppliers in commercial casino industry is low. The power of buyers: MGM : The Power of Buyer : Table x: The power of buyer There are various customers in commercial casino industry. However, there are some buyers that have ability to negotiate such as group tour. Products and service in commercial casino industry are not much different. If customers find that a hotel that they always stay in is full, they have to stay in other hotel. They have to purchase products and service in some hotel anyway. Buyers have no switch cost. If buyers want to change from a hotel to a hotel, they can just check-in to another hotel without any switching cost. Buyers cannot produce industrys product if buyers found that a hotel is too profitable. Buyers can switch to other hotels but they cannot produce it by their selves. In commercial casino industry, buyers do not stick with brands. Buyers might concerns about quality of product and service. If they find another casino that cheaper but quality and facility are same, they will switch to another casino. In sum, in commercial casino industry, buyers are relatively price sensitive. From analysis given above, buyers in commercial casino industry have high power and seem to be price sensitive. They can press companies to lower their price and can ask for more quality and service. Financial and Accounting Analysis The financial information was published annually to external and internal users. MGM Mirage Inc. financial statements had been analyzed using financial ratio analysis and information in management discussion. The median number of industry ratio in 2009 is used in this report. By the nature of hotel business, MGM contains a high fix-cost in normal business operation and profits are driven by tourism and business travel demand. MGM requires a large capital to run its hotels and casinos. In 2010, MGM is in process of development a City Center, a capital intensive driven project. The delayed of City Center project has enormous impact on MGM financial statement. Liquidity and Financial Position Credit Risk: Facing Bankruptcy As of December 31, 2009, MGM is in a weak financial position because of its indebtedness. MGM with credit rating of CCC+ operated the business with 39% on the long-term debt. The management team declared unpleasant statement about the $1.1 billion senior credit facility debt which might be defaulted on maturity date in 2010. The management suggests that MGM must extent the payback period by negotiating with their creditors. Also, management has predicted that future revenue from operation and tax refunds would help reducing MGM debt. The current and quick ratio indicated that MGM has had insufficient fund to operate its casino since 2005. With the ratio less than 1 and below the industry average in both current ratio and quick ratio, MGM has been operated on the line of bankruptcy if the company defaults on its debt. Revenue base and mix MGM primary source of revenue came from Las Vegas Strip. As December 31, 2009, the majority of MGM revenue came from three sources: casino (44%), hotel room (23%), and food beverage (23%). Casino revenue dropped 12% from 2008 and it had been on decline trends since 2007. In 2009 MGM financial statement, revenue from casino had been divided into three sub-categories: Table games (36% of total casino revenue), Slots (60% of total casino revenue), and Other revenue. The table game revenue decreased 11%, even though there is 33% increases in demand for baccarat. Sustainability of revenues and earning MGM profitability ratios are negative in 2010 and 2009 for some ratios. ROA in both 2009 and 2010 are negative. We can break ROA to net profit margin multiply total assets turnover to deepen our analyzing. Assets turnover ratio shows MGMs ability to use assets generate revenues. MGMs assets turnover ratio decreases from 2007 to 2009. Even this ratio does not decrease much during 3 year period, it made ROA go down. The main factor that has impact on ROA is net profit margin. The MGM has very low net profit margin since 2008. MGMs bad signal shows since 2008. After its net profit margin ratio plunge to -11.86% in 2008 and -21.61% in 2009 which a major factor lowing ROA. From analyzing ROA, we can see that MGM has a problem with maintaining its profit margin. MGMs revenues in 2008 are not much different from 2007, however, MGM cannot control operating expenses, operating expenses in 2007 exceeds revenues. In 2009 MGM revenues decreases by 17%, further, MGMs ability to control its operat ing expense decreased. MGMs operating expenses in 2009 is 114.65% from revenues. The major increase in operating expenses in 2008 and 2009 is property transactions. MGMs ability to fulfill its short term obligation is getting better in 2009. Both quick and current ratios go up. The reason both quick and current ratios increase because in 2009 MGM carries more cash. However, MGM debt management ratios worsen. Long term debt to equity ratio increases from 2007 to 2009 results increase in total debt to equity ratio. These ratio shows MGM has larger portion of debt compare to equity. Even MGM carries more long term debt recently; MGM has interest coverage ratio high enough to pay back its interest. But this ratio trend increase in recent year. Hotel operating statistics Strengths Strengths Various portfolios of products and services: MGM mainly operates casino resorts which include gabling, hotel, restaurant, entertainment and retail. The main operation is in Las Vegas, Nevada, the world famous gambling and entertainment center. Properties in Las Vegas include CityCenter (50% owned), Bellagio, MGM Grand Las Vegas, Mandalay Bay, The Mirage, Luxor, New York-New York, Excalibur, Monte Carlo and Circus Circus LasVegas. MGM operates outside Las Vegas includes casinos in Michigan, Mississippi, New Jersey and Illinois. Not only operate in U.S. but MGM also own 50% MGM Grand Macau ownership. Because each MGMs casino offers different theme, amenities such as restaurants, spas, private gaming and swimming pool facilities ;and difference pricing to target each customer segment, MGM enjoy competitive advantages over competitors. Moreover, MGM is continuously reinvesting in its business to keep this competitive advantage. Strengths-Strong Brand Recognition: MGM operates in tourism and leisure sectors which are gaming, hospitality and entertainment in two continental. MGM offers different casino for different segment, therefore, casinos brand that are operated by MGM are recognized by people all around the world. Moreover, Forbes Travel Guide bestowed AAA five-diamond awards to Bellagio and MGM Grand in 2010. Strengths-Location: MGM has properties in the top destination for traveler to go for gaming and entertainment. MGM has 10 casinos in Las Vegas, the world largest gaming and entertainment center and has MGM Grand Macau in Macau, the world second largest gaming and entertainment center. The reason behind this selection, these two places are the major tourism destination not only for gaming activities but also n