Kingfisher Airlines Essay

Background: Kingfisher airlines started out as a UB group subsidy, a USD 2 billion diversified conglomerate, which holds more than 60 companies under it which are associated with major industries. The United Breweries group owned the kingfisher airlines. Kingfisher airlines had then commenced its commercial operations in the year 2005 on the 9th of May. Operating with a fleet of four new Airbus A320-200’s, kingfisher airlines had its first travel from Mumbai to Delhi. Subsequently the airliner had even commenced its international maneuvers on the 3rd of September 2008, by interlinking Bangalore and London. However it faced a worsening economic scenario since 2008. The mighty airlines in the present day scenario is facing many bankruptcy problems, pushing the airline to ground many of its destinations and aircrafts. Introduction: It was the year 2006, when kingfisher airlines got listed in the stock exchange after it had been setup in the year 2003. The present day situation for KFA is that it has a staggering Rs.8200 Crore debt and the money to pay for fuel, salaries and airport fees etc. is running out. Due to this KFA has lost all its hopes and has pleaded the government to give them a total  bailout but according to market analysts, the actual flaws in KFA’s business plans and the functioning are due to the endless woes of it , which is the major root problem of the airline. So my research question for the current commentary would be â€Å"Will kingfisher airlines be able to recover from the present debt crisis using the current financial strategies?† Syllabus area covered: SWOT analysis Current Ratio Analysis GPM and NPM ratios – Analysis of the balance sheet Findings: When Deccan Aviation’s Captain G.R Gopinath was looking forward to selling off his airline, then is when Vijay Mallya who kept denying that he couldn’t even think of buying an airline whose business model is so different than that of his had suddenly put in his bid and apparently clinched the deal. It was an interesting deal because KFA had got the license to fly immediately and got immediate listing as soon as it purchased Deccan Aviation but it was not all good, along with the goodies they had even acquired the losses incurred by the airline. The promoter group of the airline that is the UB Group had an experienced set of officials to run its business which majorly includes Vijay Mallya himself. The Airliner’s second problem was that its chairman was acting like an absentee landlord and was concentrating on his other business. The third mistake that Kingfisher Airlines had made was that they could have first consolidated its domestic operations and then got into international flying as then the competition increases a lot and only those with enormous money resources survive. SWOT Analysis: Strengths Weaknesses Strong brand image Financial support from the promoter that is the UB group. First Indian carrier that started out with a whole new fleet of planes. Quality service and innovation Financial issues due to heavy debt borrowing The laying off of employees has caused a bad image. The maintenance costs were very high at ground and airline level. The company still has not met its breakeven. The ticket pricing was very high, not in the affordable range of the commoners unlike its competitors which are priced economically. Opportunities Threats Poor service of air India and problems of strikes in jet airways. Growth in air travel, the number of passengers has increased. Route Rationalization: cutting down business in unprofitable sectors and services to cities.1 Debt Recast: Kingfisher Airlines must ask the banks to reduce the interest rates of the loans and possibly find a local investor to invest some money in their business2. Low cost carriers obtaining the larger market share. Fuel costs also have increased subsequently. Economic slowdown Infrastructure constraints Banks will aver on severe security before giving in any more loans which they need for their operational costs. Some banks may even go up to the extent of calling in all their debt. The airline’s promoter funds will be tapped, which will put pressure on the finances of the UB group Current Ratio Analysis: It can be defined as the company’s ability to meet its short term maturing obligations. The current ratio is calculated using this formula: Current Assets/Current Liabilities. For the year 2012 (as of march 31st) = 16188.35/84428.04 = 0.19 (all values in million INR) For the year 2011 (as of march 31st) = 29738.26/55255.85 = 0.54 (all values in million INR)   3 http://www.marketing91.com/swot-kingfisher-airlines/ 4 http://m.outlookindia.com/story.aspx?sid=4&aid=279017 It can be seen that the current ratio has decreased from the year 2011 to  2012 which indicates a threat to the company as the debt to assets has significantly increased and has not yet been repaid in the right model to improve and come out of the debt crisis. Following is a graph that shows the plotting based on the balance sheet3. We can see that the current ratio is less than 1:1 for both the years which indicates that the short term debts of the business are much greater than its liquid assets, which could spell disaster for its survival if creditors demand payment. Which is the case for kingfisher airlines as there crisis has been increasing and increasing as there are no sources for revenue that can be used to pay out even a part of the debt. If the company’s current ratio falls below 1, it implies that the company has a negative working capital, it is then required for the business to take a closer look at the business and there are no liquidity issues. If the ratio is drastically below 1 it implies that the company has inventories that can be converted into cash and this involves to be seriously concerned into the working which when neglected can lead to a financial crisis like in the case of Kingfisher Airlines. When observed in the financial values the income from operations has increased drastically from march 31st 2011 to march 31st 2012 which can be accounted to the loss in operations and trade. If we observe the employee costs also have been cut down on a large note due to the laying off of the employees and staff members. The aircraft lease rental has been subsidized as the fleet of Kingfisher airlines has decreased. If we compare the quarters between December 31st 2011 and march 31st 2012, we can see that the aircraft fuel expenses are more or less the same, which shows a loophole as to why is there still such high fuel expenses even though the operations and fleet have been reduced or more close to being closed. The losses between the same periods have almost increased more than double the times. Hence we see the net losses of the company to increase from (44.426.95) to (115,152.60) lacs which shows the growing debt crisis of Kingfisher Airlines. Price Movement and Performance Charts of Kingfisher Airlines Index Comparison and Ownership Pattern of Kingfisher Airlines Source:http://www.bseindia.com/bseplus/StockReach/AdvanceStockReach.aspx?scrip code=532747 From the above graphs, it can be clearly seen of what the past, present and future trend of Kingfisher Airlines is going to look like in the respective areas mentioned above. GPM (Gross profit margin) For the year 2011 -4.8% For the year 2012 38.2% It can be seen that the gross profit has been depreciating at an exponential rate which shows that there is absolutely no scope of business for kingfisher airlines, as its functioning and sales have gone down on a drastic rate, thus leading to its mounting losses. NPM (Net Profit Margin) For the year 2011 21.1% For the year 2012 382.01% When we calculate the net profit for the company we can observe the change in it from the year 2011 and 2012 there is difference of about 360% which shows the enormity of the debt that kingfisher airlines is heading towards. The company’s market share has also shrunk a lot due to the onboard crisis. Below is the pictorial representation of the difference in the market share of kingfisher airlines between the financial year 2011 and 2012. FOR THE YEAR 2011 FOR THE YEAR 2012 Analysis: It can be seen that Kingfisher Airlines has gone for public issue before it obtained Deccan Airlines so a part of the money might have been raised from /the money gained out of it. The UB group was the promoter of the company so it had the maximum stake in the Airlines but lately due to the debt crisis its stake is being diluted in order to issue them to other public who can invest money and might raise some capital for the business, doing so it is raising financial pressure on the UB Group. The Going concern status of kingfisher airlines has already been lost which might pose a threat for investors investing in the company which might lead to very bleak chances of survival. Problems: Fuel dues: Kingfisher Airlines had been a nonpayer of fuel bills which lead to many problems for the airliner. HPCL (Hindustan Petroleum Corporation Limited) had abridged the supplies of fuel for the airliner in lieu of non-payment of overdue fuel bills. Delayed Salary: Kingfisher Airlines had not paid salaries to its employees from October 2011 to January 2012, which had caused employee dissatisfaction. It had also been noted that the tax cut from the employee’s income at the source was also defaulted while paying to the tax department. There was a delay in the aircraft lease rentals which has to be paid to GE Commercial Aviation Services, which later lead to repossession of four A320 aircrafts. Airport Authority of India had slammed notices on kingfisher for a due on bills which amounted to about 255.06 crore INR. This had happened because the airliner was working on a cash and carry basis with a daily expense of 0.8 crore INR. Kingfisher Airlines had even service tax arrears which invited the possibility of legal action against the airliner. Kingfisher Airlines was declared as a Non Performing Asset (NPA) by the banks that had lent money for the airliner to carry out its business. Later, KFA suffered more problems such as erosion of net worth, frozen bank accounts, much of its fleet being grounded and suspension of ticket sales by International Air Transport Association (IATA). Kingfisher Airlines share price from Sep-2010 to Sep-2011 Measures Taken: Revenue Inventiveness One world alliance membership would allow KFA to have incoming inland  passenger growth. Co-branded Credit Cards – Kingfisher Airlines had issues the King Club ICICI co-brand card as ICICI bank is one of its major lenders. Kingfisher Express: DTD (Door to Door) Cargo express services to capture the under penetrated air-cargo delivery service. Cost Reduction inventiveness Streamlining distribution channels. Renegotiating vendor agreements – airport and fuel discounts, operating leases at a discount. Control over discretionary spend – reduction in rentals, cost of transport, local conveyance and communication. Optimize space. Operational efficiency: saving on fuel consumption. Equity infusion Debt Re-schedulement Capitalization of its expenses which would lead to the increase in the net income, reduce the stockholder equity and total assets will upsurge for the same amount of expenses. Strategies for Kingfisher to come out from its Debt Crisis: Rescheduling and restructuring of loans- the unsecured loans must be converted into equity share capital then Kingfisher Airlines can avoid the finance cost of the unsecured portion but the promoter’s (UB Group) holding will drastically decrease and even the secured loans can be paid in almost the same manner. Thus the banks will have to increase the period of repayment and decrease the rate of interest on the loans which might help KFA’s operations and possibly the loans might be cleared. There must be efficient strategies to increase the turnover of the company which includes the change in pricing strategy and making it competitive to its co-airlines. Fuel subsidies from the government – KFA must convince the government to give them fuel subsidies by which they can run their airlines and then slowly repay back all its debts. FDI ( Foreign Direct Investment) – there is a larger chance of KFA getting merged with some international airline if the FDI limit is increased which will thus lead to the acquisition of Kingfisher Airlines by an international carrier but will be relieved of its debts and would not then effect the promoter group. Conclusion: The present condition of Kingfisher Airlines can be due to a series of reasons but ultimately it was a rise and all of a giant domestic carrier for India. There are very few chances for the company to bail out from its current situation. The hope of an international merger with Kingfisher might give a ray of hope to the survival of the airlines. If the current debt crisis is not put on hold and keeps increasing, there would be only one door open for Kingfisher Airlines that is to sell out everything to repay all its debts to banks and lenders thus leading to the ultimate collapse of Kingfisher Airlines.

Bessrawl Corporation Essay

1). Inventory: – Under U. S. GAAP, Bessrawl Corporation is allowed to report inventory on its balance sheet at lower of cost or market. Market in this case is defined as replacement cost ($180,000) with net realizable value ($190,000) as ceiling and net realizable value minus a normal profit ($190,000 – $38,000 = $152,000) as a floor. Cost of inventory is $250,000. Since market is lower than cost, inventory is written down to replacement cost of $180,000 and reported on the company’s balance sheet at December 31, 2011. This also led to a loss of $70,000 reported on the company’s income statement for December 31, 2011. However, under IFRS, Bessrawl Corporation had the option to report inventory on its December 31, 2011 balance sheet at lower of cost of $250,000 and net realizable value of $190,000. Since the net realizable value is lower than the cost, the company would have reported $190,000 on its balance sheet for December 31, 2011 and a loss of $60,000 on its income statement for the same period. Thus, under IFRS, Bessrawl Corporation income would be $10,000 larger than reporting under U. S. GAAP, stockholder equity will also be $10,000 larger under IFRS than under U. S. GAAP. 2). Building: – Under U. S. GAAP, Bessrawl Corporation reported depreciation expense of $100,000 each on 2010 and 2011 financial statements. Depreciation expense = ($2,750,000 – $250,000)/25 yrs = $100,000/yr. Under IFRS revaluation model, the depreciation expense on the building was $100,000 in 2010 and the carrying value was $2,650,000 beginning 2011. The building was then revalued to $3,250,000, at the beginning of 2011 resulting in revaluation surplus of $600,000. The depreciation expense for 2011 would be ($3,250,000 – $250,000)/24 yrs = $125,000. So, under IFRS, Bessrawl Corporation would incur additional depreciation expense of $25,000 in 2011, leading to smaller income than under U. S. GAAP. Stockholders’ equity in 2011 will be $575,000 larger under IFRS than under U. S. GAAP. This is equal to the revaluation surplus of $600,000 less the additional depreciation expense of $25,000 in 2011 under IFRS, which will reduce retained earnings. 3). Intangible Assets: – Under U. S. GAAP, an asset is impaired when its carrying amount exceeds the future cash flows (undiscounted) expected to arise from its continued use and disposal of the asset. The brand acquired in 2011 has a carrying amount of $40,000 and future expected cash flows are $42,000, so it is not impaired under U. S. GAAP. Under IFRS, an asset is impaired when its carrying amount exceeds its recoverable amount, which is the greater of net selling price and value in use. The brand’s recoverable amount is $35,000; the greater of net selling price of $35,000 and value in use (present value of future cash flows) of $34,000. As a result, an impairment loss of $5,000 would be recognized under IFRS. IFRS income and retained earnings would be $5,000 less than U. S. GAAP income and retained earnings. 4). Research and Development Costs: – Under U. S. GAAP, research and development costs in the amount of $200,000 would be expense and recognized in determining 2011 income. Under IFRS, $120,000 (60% of $200,000) of research and development costs would be expensed in 2011, and $80,000 (40% of $200,000) of research and development costs would be capitalized as an intangible asset (deferred research and development costs). So the IFRS-based income at December 31, 2011would be $80,000 larger than under U. S. GAAP income. And since the new product has not been brought to market, there is no amortization of the deferred research and development costs under IFRS in 2011. 5). Sale-and-Leaseback: – Under U. S. GAAP, the gain on the sale-and-leaseback (operating lease) is deferred and amortized in income over the life of the lease. With a lease term of five years, $30,000 of the $150,000 gain would be recognized at December 31, 2011 and $30,000 each would be recognized in 2009 and 2010, resulting in a cumulative amount of $90,000 retained earnings at December 31, 2011. Meanwhile, under IFRS, the entire gain on the sale-and-leaseback of $150,000 accounted as an operating lease was recognized immediately in income in 2009. This will result in an increase in retained earnings of $150,000 in that year. No gain would be recognized in 2011. As a result, IFRS income at December 31, 2011 would be $30,000 smaller than under U. S. GAAP income, but stockholders’ equity at December 31, 2011 under IFRS would be $60,000 larger than under U. S. GAAP.

Hiv And Treatment Adherence By Bobbi Marie Pollard

HIV and Treatment Adherence Bobbi Marie Pollard Loyola University Chicago School of Social Work Human Immunodeficiency Virus (HIV) is a chronic illness, however, for those with access to health care and treatment, it is a very manageable condition. Although it is no longer considered a death sentence in developed countries, it is still a highly stigmatized illness. The public may no longer perceive HIV as the plague it once was, yet there has been no decline in the number of new infections per year in the past decade in the United States (Catalan et al., 2000). Today, people are living longer with HIV due to the development of combination antiretroviral drug therapies (ART). ART has provided significant progress in treatment (Linsk et al., 2002). Treatment accessibility and medication adherence are crucial in order to continue manage the disease on both the individual and public level. Overview of HIV/AIDS HIV and AIDS are sometimes used interchangeably, although there is a significant difference, and some HIV positive individuals will never develop Acquired Immune Deficiency Syndrome (AIDS). Testing HIV positive means there are antibodies present in the system. HIV is classified into two phases: symptomatic and asymptomatic. Individuals show signs of a compromised immune system during the symptomatic phase, although with treatment advances, many are living asymptomatically. The progress of the illness can often be evaluated by looking at one’s CD4 and viral load

The Between Austria Hungary And The German Empire

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The Formation Of Acc And Its Conversion Into Ethylene

The evolution of ACC also brings about the production of 5 ¢-methylthioadenosine-nine. Increase in the rate of respiration of the fruit gives ATP (Adenosine triphosphate) need for the methionine cycle and can lead to induced ethylene production without high levels of intracellular methionine. SAM is a crucial methyl giver and relates to numerous aspects of cellular metabolism. Thus, the two steps involved in the synthesis of ethylene is the formation of ACC and its conversion into ethylene. The genes encoding ACS and ACO have therefore been studied more deeply than other enzymes in the pathway, although there is proof that a few other genes concerned with methionine synthesis and methionine salvage pathway are differentially demonstrated throughout ripening and in response to ethylene (Alba and others 2005; Zegzouti and others 1999). ACS and ACO are encoded by multigene families in higher plants, with tomato having at most nine ACS (LEACS1A, LEACS1B, and LEACS2-8) and ï ¬ ve ACO (LEACO1-5) genes (Barry and others 1996; Nakatsuka and others 1998; Oetiker and others 1997; Van-der-Hoeven and others 2002; Zarembinski and Theologis 1994). Expression survey has disclosed that at least four ACS (LEACS1A, LEACS2, LEACS4, LEACS6) and three ACO (LEACO1, LEACO3, LEACO4) genes are differentially shown in tomato fruit (Barry and others 1996, 2000; Nakatsuka and others 1998; Rottmann and others 1991). LEACO1, LEACO3, andLEACO4 are shown at low levels in green fruits that are in the firstShow MoreRelatedVolatile Organic Compound Detection Using Graphene6793 Words   |  28 Pagesfruits that go through the ‘climacteric phase’ after harvest i.e.it should go through the ripening process. During the ripening process the fruit’s respiration taking place and emit ethylene. The emission is ethylene is directly proportional to the rate of respiration. As the rate of respiration increases, ethylene emission also increases. Ripened fruits are very malleable a nd can not withstand any harsh environment. If fully ripened fruits are harvested then it would go through excessive damage

Edwards Deming’s 14 Points free essay sample

This is the case study analysis about Starbucks. It introduced the company background and struggling issues faced by Starbucks. This analysis is mainly focus on how Starbucks using the W Edward Deming’s 14 points to apply on their international business. The sources such as news were applied in this analysis in order to prove that the matters were happened during Starbucks struggling season. On the other hand, the total quality management that Quality Management (TQM) practices is primarily found in larger and multinational organizations but little has been written on how TQM has been applied in Starbucks. It had using some example that existing in the company in order to show how the company manage their product quality. Lastly, this case study analysis was also stated about how the customer values provided by Starbucks are affecting their value chain activities. It had explain how the Taylorism can applied in Starbucks and how they using the skills to operate their business in today competitive market. Introduction Dr. W.Edwards Deming taught that by creating and adopting W Edwards Deming’s 14 points, organizations can increase quality and simultaneously reduce costs and meanwhile, in the same time, reducing rework, staff attrition, works and litigation while in the sametimes increasing customer loyalty. The key is to practice continual improvement and think of manufacturing as a system and adopt new philosophy (Gabor, 1992). Customer value is also created when the perceptions of benefits received from a transaction exceed the costs of ownership (Daniels, S. 2000). Moreover, value is the ratio between perceived benefits received and the costs associated with receiving these benefits. Perceived value is a consumer’s overall assessment of the utility of a product based on perceptions of what is received and what is given. Increase the market capital by using new system and leadership development in marketing and product, as what W. Edwards Deming quote before, â€Å"Profit in business comes from repeat customers, customers that boast about your project or service, and that bring friends with them†. It is important to emphasize on technology which is always occur in a collective form and therefore, the teams of technology have to access to many systems which typically compare the features of one technology rather than account for team to use of multiple technology (Evans, G. 2002). In the end, transformation of company is needed to reach the market demand and change of company philosophy is also requiring in the meantime. Dr. W. Edwards Deming also has quote, â€Å"It is not enough to do your best; you must know what to do, and then do your best†. Company Background Starbucks started in 1971 in Seattle, Washington. It is the company that adopts high quality whole bean coffees and develops the market along with rich-brewed, Italian style espresso beverages, a variety of pastries and confections. It also uses the coffee-related accessories and appliance which primarily through its company operated retail stores. On the other hand, Starbucks also sells whole bean coffees through their specialty sales group and hypermarket in order to operate through their company operated retail stores. Additionally, Starbucks sells the bottled Frappuccino coffee drinks due to market opportunities and a line of premium ice creams through its joint venture. Starbucks is intent to establish their brand as the most well-known and respected brand in the world. To achieve the objective, Starbucks propose to continue to develop its retail operations, rapidly grow its sales volume and franchise operations, and look for opportunities to leverage the Starbucks brand through the introduction of new products and the development of new distribution channels. Services of Starbucks Starbucks management has a good planning when they closed all of their 7,100 stores for 3 hours. It intended to retrain their baristas on creating the best customer experience. With an average amount of 20 employees in every outlet, they are staggering 426,000 man hours, more than $3 million in wages, and 21,300 hours of lost customer revenue. That is what Starbucks plan on their customer services and do it until the best. Struggling Issues Competitive Analysis Starbucks struggling with market structure which is Monopolistic Competition. Secondly, it also faced with competitive activity such as many companies are in the market and competition is strong developing (Joseph C. Jr and Lane, S. 2007). Their competitors also use location, product mix, and store atmosphere differentiation to establish market niche. Besides, industry costs and capital structure in Starbucks is also troubling it. They are low to moderate costs for each location and their major start-up expenditures are property and equipment. Starbucks also having the problem of major operating costs that are labor and cost of sales. Industry PEST Analysis Political Influences of Starbucks which is the relationships between coffee producing nations and United States. In addition, it also strict with the State amp; Local government controls in US and therefore, it is very hard for them to grow fast when compare to other country. In the other hand, Economic Influences of Starbucks like constant demand for food and beverages also causes trouble to them. The changes in disposable income in US also influence the purchase levels of consumers. The Social Influences in Starbucks also occurred when consumer preferences could shift from coffee to other beverages like Pepsi and Coca-cola. The technological influences in Starbucks also are a struggling issue because they have to use the technology can improve operational efficiencies while other competitors are rapidly improving their technology at the same time. Deming’s Profound Changes Dr. Deming introduced four changes to the thinking of Japanese managers. Those 4 changes reflect a fundamental change in philosophy for western management (Robertson, D, 2009). This theory told us that every system has variation; hence, the information needed to create optimum systems is unknown and unknowable. It means that all systems will have built-in flaws;† optimum systems† are impossible and expecting a process to perform identically in another place time is foolish. Thus, Starbuck have a corporate headquarters exercises controls over individual sites in different country and also have different total Quality Management which is specifically built into their processes meanwhile utilizes a large amount of information technology (Madu, C.N. and Kuei, C. , 1993). On the other hand, this theory also stated that using the scientific method we learn what is unknown but knowable faster. It means that theory is necessary for observation to gain knowledge. People must be able to tell the truth without fear because there will be occasions where existing theory is proven to be wrong (Quality Assurance Agency, 2003). Therefore, Starbucks initiated C. A. F. E. (Coffee and Farmer Equity) Practices to evaluate, recognize, and reward producers of high-quality sustainably grown coffee. It seeks to ensure that Starbucks sources sustainably grown and processed coffee by evaluating the economic, social and environmental. In addition, Deming’s Profound Changes stated that by observing the operation of the system, its built-in flaws can be detected and isolated. It focused to requires a process orientation and stabilize the system before improving it (Spanbauer, S. J. ,1995). In Starbucks, they retraining mainly occur during new product roll-outs, although this site does not use regular meetings, but instead one-to-one discourse. Lastly, this theory also said that complexity can be reduced and entropy lowered by removing the built-in flaws. It helps to reducing complexity which is the key to improving productivity (Zeithaml, V. et al. , 1990). In order to oversee the expansion process, Starbucks created zone wise vice-presidents  to direct  the development of  each region  and to  implant the Starbucks culture in the newly  opened stores. W Edwards Deming’s 14 points in Starbucks Dr. W. Edward Deming is variously described as the â€Å"patron saint of quality† in Japan. His findings are statistical and give powerful insights of excellent quality management; in his book â€Å"Out of the crisis† we can observe the Deming 14 points on quality management (Deming, 1986). 1. Create constancy of purpose toward improvement of product and service. It mainly focuses to inspire the workers to stay competitive in the market and remind about the importance of stability in jobs (Lakshman, C. , 2006). The CEO of Starbucks, Howard strongly believes in â€Å"Making Starbucks a Great Place to Work†. This slogan highly influences the mind thinking and attitude of Starbucks worker to seeking their way to survive in this company. Employees are also paid $9-$12 which is higher than minimum hourly wages. 2. Adopt the new philosophy. The customer demands and taste change rapidly so we have to accept new philosophies according to the market trends and technology revolutions. Starbucks intend to maximize market penetration. In the other hand, it also provides a relaxing, attractive social atmosphere, offer high-quality products, create a great working environment and achieve profitability 3. Cease dependence on inspection to achieve quality. Instead of inspecting the product for quality after production, infuse quality at the beginning itself. This will ensure that none of the raw materials are wasted for the sake of quality (Engelkemeyer, S. W. , 1993). Therefore, Total Quality Management is specifically built into their processes in Starbucks and internal controls for the store are determined by the manager based in part on information provided by the IT system. 4. End the practice of awarding business on the basis of price tag. Instead, minimize total cost. We often spend lots of time and money to find better suppliers and shift rapidly between them for slight monetary gains. Thus, Starbucks move towards a single supplier for any item who can be trusted. It also minimizing the cost in new logistics operation and also can increase the long term relationship with the supplier. 5. Improve constantly and forever the system. There is no stopping point in the process of quality management (Dahlgaard, J. J. el al. , 1995). The enterprise systems and services must keep growing indefinitely in order to catch up with the competitive market. Starbuck’s new espresso machines were equipped and look more Italian than old world nautical. 6. Institute leadership. Good leaders have always performed wonders everywhere the growth a company can display stunning growth if potential leaders are identified and encouraged and also by promoting the leadership quality of other normal workers. Schultz restored the old and honest employees of Starbucks to  give the best service to the customers. Dave Lawrence was hired as an executive vice  presented and charged with leading operation, finance and human esources. Remove barriers that rob people of pride of workmanship. Responsibility of supervisor must be changed from numbers to quality. Fixing points for employees and again ranking them inside the company would infuse more completion within the organization which is very unhealthy for the quality (Douglas, T. J. amp; Fredendall, L. D. , 2004). In Starbucks, work duties are assigned by shift supervisors but on the other hand, employees are allowed to use initiative and empowered to make decisions which mean it is a decentralization company. This can gain more opinion from different level of employees from the company and using this ability to improve the quality of product. Total Quality Management Starbucks company system is created based on a TQM (Total Quality Management). TQM  is an integrative philosophy of  management  for continuously improving the  quality  of products and processes. TQM functions on the  company   that the quality of products and processes is the responsibility of everyone who is involved with the creation or consumption of the products or services offered by an organization (Ghobadian, A. et. al. , 1994). In other words, TQM capitalizes on the involvement of management, workforce, suppliers, and even customers, in order to meet or exceed customer expectations Company high employer turnover have effect the structure and system of the company to maintain it quality and product and recent financial crisis have effect the company sales and profit in the meantime also effect the staff income to be drop to low-income categories. Starbucks is running on a Site 7-S system that apply TQM with it. The Site 7-S system is based on seven categories, (Strategy, Structure, Staffing, Systems, Skills, Shared Value and Style). Strategy * Store’s strategy is to create a comfortable Third Place environment * Serve customer a customized high-quality product * Achieve high level of profitability by focusing on high-margin items while generating add-on sales * Minimize overall expenses by focusing on controllable expenses * Minimize total workforce and full-time worker, high employment on part-time basic workforce Structure * Functional in structure and relatively flat * Corporate organization is tall with four levels of management above store management * Staffing Location has one manager, an assistant manager and 16 partners. Benefits package includes health, dental, and vision care, stock options, free shift drinks, and a free pound of coffee each day * Income based on location of the branch * Raises are based on semi-annual performance evaluations with raises ranging from 0-5% * Bonuses are not utilized, but the location has given away non monetary rewards Systems Corporate IT System Individual Stores Individual Stores Sales, Inventory, Staffing Sales, Inventory, Staffing Individual Stores Inventory, Orders, Transfers Vendors, Distributors, Mgmt. ,

Philosophical theology

Introduction The word philosophy is a Greek term which means love of wisdom (â€Å"Philosophical theology† par. 1). Theology is generally defined as a systematic and progressive study of religion. Theological studies primarily involve the influence of natural aspect of truth gained after completing religious studies course. This paper will focus on philosophy as theology. Under this title, the entire discussion focuses mainly on the use of philosophy in solving or interpreting theological concepts (â€Å"Philosophical theology† par. 1).Advertising We will write a custom essay sample on Philosophical theology specifically for you for only $16.05 $11/page Learn More Overview This entire paper will focus on highlighting the philosophical implication and relationship between philosophy and theology. Currently, there are three globally known philosophically complicated Christian doctrines. They include; the trinity, incarnation and the atonement . Notable to mention is that, these doctrines have been the subject of discussion internationally as far as philosophical theology is concerned. This is because philosophy can be broadly used in the analysis of various theological doctrines. The first category of philosophy reveals the truth behind religious beliefs in addition to the available evidence from divine revelation. In this category, natural theology is used. The second category of philosophy involves the use of divine revelation (â€Å"Philosophical theology† par. 1). Under this category, philosophical techniques are employed in attempt to demonstrate the truth of all theological claims (â€Å"Philosophical theology† par. 1). Significance of philosophical theology Philosophical theology is considered to be an essential study since it helps in acquiring knowledge to explore beyond normal reasoning. Furthermore, it allows students to solve puzzles concerning human life and Metaphysics (Peter par. 3). On the o ther hand, theology also plays an important role in creating a society that respects religion. Universities that offer philosophical studies have excelled both spiritually and academically. Contrary to the expectation, many people criticize philosophy for the contradiction it develops on theology. According to scholars, philosophy instead of strengthening religious faith, it facilitates in weakening it. Critics say that, philosophy is only relevant in issues concerning moral behavior in the society (Luke par. 5). This concludes that a good philosophy definitely contributes to the development of the best theology (Peter par. 8). Analysis of philosophical theology For many years, the relationship between philosophy and theology has been undergoing hot debate across the world. Many theologians globally have been campaigning against philosophical interpretation of religion. Theologians claim that philosophy has very little to do with theology. They also claim that the use philosophical concept corrupts the interpretation of theology (Luke par. 1). These two disciplines were once considered to be mortal enemies; especially during the times of practitioners. This was supported by some early Christian thinkers like Tertullian (James par. 1).Advertising Looking for essay on religion theology? Let's see if we can help you! Get your first paper with 15% OFF Learn More Tertullian further advanced with his arguments concerning the inclusion of secular philosophy into the theological doctrines. He termed this inclusion to be a reflection that was out of order. However, according to history, the use of philosophy has always been accepted as a natural complement to theology. These doctrines were developed by Saint Augustine of hippo (â€Å"Essential philosophy for theologian’s† par. 2). According to Saint Augustine, the entire legitimacy of philosophy was firmly developed from the underlying Christian faith and beliefs. Saint Thomas Aquinas also came up with another version explaining the relationship between theology and philosophy. According to Thomistic model, this relationship was equated to be like distinct enterprises. Thomistic model also clarified that, these two enterprises only differed primarily with their intellectual origin. According to Thomistic model, any philosophical concept starting point begins with data that can be seen, heard or felt (Murray and Rea par. 3). On the other hand, any theological doctrines starting point also depends on divine revelation recorded in the bible. Relationship between philosophy and theology It was not long before the deliverance of these two disciplines. The marriage between philosophy and theology led to the birth of philosophical theology. This meant that philosophy could be incorporated in theology or vise versa. It was more advantageous to employ philosophical concepts in persuading people to accept the theological teachings. In most cases, it was difficult for people to plainly trust the divine revelation contained in religious scriptures. Therefore, philosophy through arguments succeeded in persuading people to accept that God truly exists (Murray and Rea par. 3). Philosophy could also be used by theologians in clearing up ambiguous theological claims (Murray and Rea par. 4). A good example is the case of Jesus Christ. The theological details revealed that Jesus existed in both human and divine nature. The most contradicting question was; how did Jesus relate in these two natures on earth? At this point, theological claims cannot satisfactorily explain the contradiction. This is where distinctive philosophical techniques can be used in explaining logic on the contradiction. The marriage between philosophy and theology went on well throughout the entire 20th century. Nevertheless, towards the end of 20th century, the great divorce came about. One of the contributing factors to the divorce between philosophy and theology was advanced education. This changed most theologians who previously depended on traditional Christian doctrine to interpret the scriptures (Murray and Rea par. 5). Most theologians were able to think and fluently speak about God. This advancement encouraged many of them to abandon the metaphysical methods of interpreting the divine revelation. The divorce was also steered on by the belief that all theological doctrines were meaningless.Advertising We will write a custom essay sample on Philosophical theology specifically for you for only $16.05 $11/page Learn More According to the philosophers, any doctrines that did not have any empirical content were considered to be meaningless (Murray and Rea par. 5). The divorce did not last for long. After 40 years, theologians reconsidered the employment of contemporary philosophy in theology. Nevertheless, the use of philosophy was more eclectic as compared to how it was used during the St. Augustinian and Thomistic model era (Murray and Rea par. 5). Roles of contemporary philosophical theology The trinity theory According to theological doctrines, Christians are all affirmed to the claim that there is only one God. In addition to this, Christians also believed that God exist in three forms. God the father, son and holly spirit (Murray and Rea par. 10). Each of them was considered to be God. The argument facing the trinity statement was deeply puzzling. Critics argue that although the three persons are openly professed, in real life, people do not profess three substances but only one substance (Murray and Rea par. 10). In other words, every Christian believed in one God. According to the trinity, there were three Gods. Therefore, basing on philosophical theology, it is professed that there is only one God yet they exist in three (God the father, the son and the Holy Spirit) (Murray and Rea par. 11). Cornelius Plantinga, a well known philosopher, suggested that the trinity statement possessed highly puzzling power. According to him, the trinity statement was an understatement. Due to this understatement, many critics across the world have challenged the statement. This is because of the statements incoherence. Furthermore, many contradicting versions of the trinity have been created. The first group claimed that there was only one God. They argue that God the father, son and Holy Spirit are all distinct (Murray and Rea par. 12). They believe that there was only one identical God. Critics further argue that if both the father and the son were identical, then the father by due to identity transitivity should also be identical to the son (Murray and Rea par. 12). This was contradicting according to the theological teachings on holy trinity. Furthermore, another version suggested that; if both the father and the son were considered to be divine, then automatically, the father was distinct from the son (Murray and Rea par. 12). This generally concluded that there were two existing divine persons co ntrary to the theological doctrines.Advertising Looking for essay on religion theology? Let's see if we can help you! Get your first paper with 15% OFF Learn More Incarnation theory The theological doctrine of incarnation revealed that over 2000 years ago, the second person in the holy trinity (the son) took a human nature and became distinct among humans on earth (Murray and Rea par. 24). According to the doctrines, the son came to earth in two natural forms; as human and as a holy divine. The council of Chalcedon in the year 541 C.E also commented on the doctrine. The counsel supported the doctrines insisting that it respected the two natures without confusion. However, critics challenged the doctrine referring it to be impossible, absurd and self contradicting (Murray and Rea par. 24). Philosophers argued that it was impossible for one person to bear two characteristics that were not compatible with each other logically. Critics analyzed the statement and justified that humans were created and that they possess limited natural power. Human beings according to the critics had limited knowledge and wisdom (James par. 2). Therefore, it was im possible for a person to possess both human and divine natures. This was because, divine beings were considered to be superior since they created humans. Logically, it was impossible for one person to be both the creator and the created (Murray and Rea par. 24). Theology through the kenotic view explained the possibility of accepting the bible passage. According to the passage, Jesus took a human form. Jesus was born, grew up and even died like human beings. All this happened to him though he was in divine form and God. Moreover, philosophers have strongly criticized the passage and challenged the logic of this doctrine. According to critics, it was impossible for the son of God to voluntarily abandon his divine responsibility and become human. Atonement theory Traditional Christian theology strictly binds to the fact that human beings once in their lifespan are liable to die. This is a direct separation from God that developed due to the sinful behaviors committed by humans. Howeve r, according to Christianity, humans have only one way to salvation. That is through the work of Jesus Christ (Murray and Rea par. 28). Jesus suffering progressed until his death on the cross. The theory of atonement explains in depth on how the entire life of Jesus contributes to human salvation (Murray and Rea par. 28). Notable to mention is that, the theory of atonement was used both in philosophy and theology doctrines. However, the term was also considered not to be neutral. This is because it partially explained on how human salvation entailed. If it was not for the work of Jesus, then there would be no human salvation. The other theory that best describes the work of Jesus is the ransom theory. This theory was also known as the christus victor theory. The main idea stipulated by this theory was the victory of Jesus over sin and death. Human beings were considered to be in bondage with devil and death. The most crucial information was the strong competition believed to exist b etween God and devil. The competition developed over human souls. The agreement between God and Devil was that any human committing a sin should dies. But because of Gods love for humans, he came up with the plan to save mankind. This is why Jesus Christ came to earth and lived and died among human to bring salvation. However, Philosophers strongly reject this theory. Critics have launched argument that it was impossible for God to enter into any competition with another being. Moreover, critics have further challenged the fact that salvation only comes between God and devil (Murray and Rea par. 29). They claim that Jesus victory over devil was partly achieved via divine deception. The divinity of Jesus Christ was entirely kept a secret until his death. Jesus surprisingly resurrected from the dead through his divine power. More critics have also challenged the fact that God can not forgive without punishment. According to philosophy, forgiveness basically involved rejection to deman d reparation. Forgiveness also allowed offenders to go unpunished. Based on this information, critics have argued that it is totally impossible for one to substitute another person’s death penalty. Conclusion In summary, it is evident that philosophy can be used to interpret and explain theological doctrines. However, acceptance in this case depends on interpersonal faith. Works Cited Essential Philosophy for Theologians 2006. Web. James, South. Philosophy and Theology. 2 Jan. 1986. Web. Luke, Muehlhauser. Why Philosophical Theology Fails. 6 Aug. 2010. Web. Murray, Michael and Rea, Michael. â€Å"Philosophy and Christian Theology† The Stanford Encyclopedia of Philosophy (2012). Edward N. Zalta  (ed.) Web. Peter, Kreeft. Why Study Philosophy and Theology? 24 July. 2009. Web. Philosophical Theology 2012. Web. This essay on Philosophical theology was written and submitted by user Dimitri Cardenas to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.