Mental Health in Adolescents

Mental Health Service Use Among Adolescents and Young Adults With Major Depressive Disorder and Suicidality Amy H Cheung, M D Carolyn S Dewa, Objectives: Despite being recognized as a serious public health concern, suicidality among adolescents and young adults is frequently missed, and completed suicide remains the second leading cause of death for young Canadians. With such close links between depression, suicidality, and completed suicide, any intervention must address all 3 of these issues.However, to develop effective interventions, we must understand the types and rates of mental health service use among adolescents and young adults. This study examines service use rates in young Canadians with depression and suicidality and the influence of sex on the types of service provider chosen. Methods: We used data from the Canadian Community Health Survey: Mental Health and Weil-Being. Our sample included 619 individuals, aged 15 to 24 years, who screened positive for depression and suicidality in the past 12 months. We examined mental health service use rates in general and by provider type.Results: Among adolescents aged 15 to 18 years with depression, 40% had not used any mental health services. This rate was higher for adolescents with suicidality at 50%. In young adults aged 19 to 24 with depression, 42% had not used any mental health services. Among young adults with suicidality, 48% had not accessed services. Female adolescents and young adults were more likely to receive services from nonspecialty mental health providers. Conclusions: In Canada, many adolescents and young adults with depression and suicidality do not receive mental health services.Further, there may be a preferential treatment of young men by mental health specialists. Further research is needed to understand the quality of care received by these young Canadians and the factors influencing service use. (Can J Psychiatry 2007;52:228-232) Information on funding and support and author affi liations appears at the end of the article. Clinical Implications †¢ About 50% of adolescents and young adults with depression and suicidality do not use mental health services. †¢ Strategies to increase service use in youth with depression are needed. Strategies to decrease differences between the sexes in service use are needed. Limitations †¢ The quality of care could not be examined from the CCHS 1. 2 data. †¢ The survey results were based on patient recall. †¢ Although this was a national population-based study, the sample size was small. 228 †¢ La Revue canadienne de psychiatrie, vol 52, no 4, avril 2007 Mental Health Service Use Among Adolescents and Young Adults With Major Depressive Disorder and Suicidality Key Words: adolescents, depression, suicidality, service use, young adults D pression and suicidality (ideation and attempts) among adolescents and young adults are frequently unrecognized and untreated by any health professionals. ‘ N ot only are depression and suicidality often linked, but both pose a significant burden on patients and their families. Suicide is the second leading cause of death in youth aged 15 to 18 years, second only to motor vehicle accidents. ^ Further, almost 50% of teens who complete suicide have a diagnosable mood disorder, such as depression, and have expressed suicidality prior to completing suicide. ^^ There are also consistent differences between male and female adolescents, with male adolescents more likely to complete suicide and female adolescents more likely to have depression and suicidality. ^ Policy-makers, families, and providers have struggled to understand how to address this significant public health issue. A first step in addressing the issue is to understand the mental health service use pattems among adolescents and young adults with depression and suicidality.Given the differences in prevalence rates between young men and women, it is also critical to understand the in fluence of sex on service use in this age group. have a form of depression. ^ Further, according to a biannual survey of youth in the United States, more than 16% of US teenagers have had thoughts about suicide, and 10% had actually attempted suicide in the previous 12 months. ‘† We found similar rates in Canada, with almost 20% of teens aged 15 to 18 years reporting suicidality in their lifetime. † However, it is not known how many of these youth received mental health interventions.Given that depression and suicidality are so closely linked, it would be a reasonable first step to examine the rates of mental health service use among Canadian adolescents and young adults and, flirther, to look at which type of service provider they are seeing to address these problems. Therefore, this study examines the rates of service use in adolescents aged 15 to 18 and young adults aged 19 to 24 with depression and suicidality. We will also comment on how these service use rate s could be used to develop policies targeted at this population. MethodsSubjects The survey sample was drawn from the CCHS 1. 2. We examined a subsample of CCHS 1. 2 respondents aged 15 to 24 years. The total sample size for the CCHS 1. 2 is 36 984, with a sample size of 5646 for individuals between the ages of 15 and 24 years. Our subsample included 619 individuals who screened positive for a diagnosis of depression and (or) suicidality in the past 12 months. We examined the rates of mental health service use in general and according to provider type. Major Depressive Disorder. The diagnosis of MDD was evaluated in the CCHS 1. 2 through the use of structured interviews.The interview modules were drawn from the CIDI. ‘^ A diagnosis of MDD was derived from the CIDI. We used the 12-month estimates for MDD. Suicidality. Suicidal attempts and ideation were measured by using the questions on suicide in the depression section ofthe CCHS 1. 2 survey. Subjects were interviewed for sui cidality regardless of their screen for depression. Although there are significant risk differences between those with suicidal ideation and those with attempts, we combined these 2 groups in our analyses because of Statistics Canada reporting rules regarding rare events.Service Use. Service use for MDD and suicidality was measured with mental health service use questions. All service use was measured according to provider and place of contact in the following groups: GPs (nonpsychiatrist medical doctors), psychiatrists, psychologists, social workers or counsellors, and other professionals, including nurses, religious counsellors (such as ministers or rabbis), and naturopaths or other alternative health care practitioners. Service use for each of the groups was defined according to use and nonuse.Statistical Analyses The CCHS 1. 2 uses a stratified design with differences in sampling fractions across the strata, with some geographical 229 Several studies have examined the rates of m ental health service use by adolescents and young adults. However, most of these have been US-based studies. * These studies show that service use is less than 50% among adolescents and young adults aged 15 to 24 years* and that up to 80% of children and adolescents aged 6 to 17 years do not receive needed mental health services. Among adolescents with depression, 50% are not diagnosed prior to adulthood. * In Canada, the rates of depression and service use in Canadians aged 15 to 24 were examined in the Ontario Mental Health Supplement in the early 1990s,' which found the rate of service use in this age group to be less than 50%. However, aside from the supplement, no other Canadian study has examined the rates of service use by young Canadians aged 15 to 24 with depression.Therefore, even with the increasing recognition by policymakers and service providers that depression poses a significant burden on our youth and their families, there is very little research furthering our unde rstanding of this issue or helping to develop effective strategies to address it. Similarly, we know very little about young individuals with suicidality and their pattern of service use. US surveys have shown that more than 50% of youth who complete suicide Abbreviations used in this article CCHS 1. Cl CIDI GP MDD Canadian Community Health Survey: Mental Heaith and Weli-Being confidence interval Composite International Diagnostic Interview general practicitioner major depressive disorder The Canadian Journal of Psychiatry, Voi 52, No 4, Aprii 2007 Original Research Table 1 Twelve-month service use rates by provider type among youth with major depression and sutcidality Any service % (95%CI) Psychiatrist % (95%CI) GP % (95%CI) Psychologist % (95%CI) Social worker or counsellor % (95%CI) Other provider % (95%CI)Respondents Adolescents aged 15 to 18 years. suffered from major depression Male Female 56. 3 (34. 4 to 78. 1) 55. 9 (40. 7 to 71. 1) 45. 5 (21. 2 to 69. 9) 21. 4 (11. 2 to 31 . 6) 24. 6 (7. 2 to 42. 0) 30. 7 (17. 9 to 43. 6) 25. 2 (0. 5 to 49. 8) 16. 7 (7. 9 to 25. 5) 10. 8 (0. 9 to 20. 7) 39. 9 (24. 7 to 55. 0) 23. 9 (-0. 6 to 48. 3) 16. 4(8. 1 to 24. 8) Adults aged 19 to 24 years, suffered from major depression Men Women 52. 5 (37. 3 to 67. 8) 55. 6 (44. 3 to 66. 9) 28. 9 (15. 3 to 42. 5) 26. 1 (18. 0 to 34. 2) 37. (22. 2 to 51. 9) 45. 9 (35. 3 to 56. 5) 33. 9 (19. 2 to 48. 6) 21. 9 (13. 4 to 30. 5) 17. 6 (7. 8 to 27. 5) 29. 1 (20. 3 to 38. 0) 9. 5 (1. 9 to 17. 1) 21. 1 (12. 7 to 29. 5) Adolescents aged 15 to 18 years. suffered from suicidality Male Female 36. 5 (18. 4 to 54. 5) 49. 0 (38. 5 to 59. 5) 23. 3 (6. 3 to 40. 3) 19. 3 (10. 9 to 27. 7) 14. 7 (4. 4 to 25. 1) 27. 2 (17. 7 to 36. 7) 21. 7 (4. 5 to 38. 8) 21. 0 (12. 3 to 29. 8) 13. 2 (4. 2 to 22. 2) 31. 9(22. 1 to 41. 7) 16. 2 (-1. 1 to 33. 4) 15. 9 (8. 5 to 23. 3)Adults aged 19 to 24 years, suffered from suicidaiity Men Women 39. 5(27. 1 to 51. 9) 50. 8 (37. 0 to 64. 6) 22. 6 (12. 3 to 33. 0) 17 . 5 (9. 6 to 25. 4) 27. 9 (16. 6 to 39. 1) 41. 3 (28. 3 to 54. 3) 24. 1 (10. 9 to 37. 3) 24. 6 (14. 0 to 35. 2) 12. 8 (4. 9 to 20. 7) 20. 8 (11. 6 to 30. 0) 9. 3 (2. 2 to 16. 4) 16. 2 (7. 0 to 25. 3) areas under- or overrepresented in the sample relative to their representation in the population. Therefore, we used the weights recommended by Statistics Canada when conducting analyses.Rates of service use for mental health reasons were calculated for subjects with MDD and (or) suicidality in the past 12 months. Service use rates were examined according to provider type and the sex ofthe subjects. Chi-square tests were conducted to examine for differences between young men and women with depression and (or) suicidality. Results Among adolescents aged 15 to 18 years with depression, 40% (95%CI, 28% to 53%) had not used any mental health services. The rate was higher for those with suicidality, at 50% (95%CI, 41% to 59%).Most adolescents and young adults with depression were either not accessing services at all or accessing services for their mental health problems through one provider. Among those aged 15 to 18 years, 22% (95%CI, 11% to 33%) accessed services through one provider, compared with 20% (95%CI, 14% to 27%) of those aged 19 to 24 years. Among young adults aged 19 to 24 years with depression, 42% (95%CI, 33% to 51%) had not used any health services for mental health reasons. For those with suicidality, 48% (95% CI, 39% to 5 8%) had not accessed services in the past 12 months.As with those with depression, most of our sample with suicidality either did not access services at all or accessed services through one provider. Among those aged 15 to 18 years with suicidality, 21% (95%CI, 14% to 28%) accessed services through one provider, compared with 22. 12% (95%CI, 14% to 30%) of those aged 19 to 24 years. 230 Differences between young men and women were not found in the overall use of mental health services. Service use by type of provider and sex are show n in Table 1.However, female adolescents aged 15 to 18 years with depression were more likely to use services from social workers and (or) counsellors, compared with male adolescents (female adolescents; 40% [95%CI, 25% to 55%]; male adolescents, 11% [95%CI, 1% to 21%]). Similarly, in young adults aged 19 to 24, a higher percentage of yotmg women saw social workers and (or) counsellors (women, 29% [95%CI, 20% to 38%]; men, 18% [95%CI, 8% to 28%]). For those with suicidality, female subjects in both age groups were more likely to use mental health services from GPs.Among those aged 15 to 18, 15% (95%CI, 4% to 25%) of male adolescents saw GPs, compared with 27% (95%CI, 18% to 37%) of female adolescents. Among those aged 19 to 24, 27. 9% (95%CI, 17% to 39%) of young men saw GPs, compared with 41% (95%CI, 28% to 54%) of young women. Overall, female adolescents and young adults with depression and (or) suicidality were more likely than male adolescents and young adults to use services fr om GPs (female subjects aged 15 to 18 years: x^ = 4. 53, dfl,P< 0. 03; aged 19 to 24: X = 14. 88, df 1, P < 0. 001) and from social workers and (or) ^ counsellors (aged 15to 18:^^=15. 54,dfl,P

Inustry Competitor Analysis-Casino Hotel

Executive Summary The center of our industry and competitor analysis research is MGM Mirage, the second largest casino hotel operator in the world with $7. 2 billion in revenues in 2008. The only company that surpasses MGM Mirage by revenue and scale is Harrah’s Entertainment Inc. with $10. 8 billion in revenues in 2008. Other competitors that should be considered are Las Vegas Sands Corp. and Wynn Resorts Ltd with respectively $1. 7 and almost $1 billion in revenues in 2008. Our group focused on researching the degree of threat and the likely future competitive moves that Harrah’s Entertainment, Las Vegas Sands Corp. nd Wynn Resorts Ltd will undertake in short (next 3-6 months) and long term (next 1-3 years). In order to be able to consider the competitors’ degree of threat and future moves we completed a pair-wise two-step competitor analysis that included research and comparison of market commonality, competitive asymmetry, resource similarity, intentions, bel iefs, relative resource differences, past moves, and counter moves for all abovementioned competitors versus MGM Mirage. After the completion of our research, we concluded that presently, MGM Mirage is in a direct competition with only one of its competitors-Harrah’s Entertainment Inc. The other two competitors, Las Vegas Sands Corp. and Wynn Resorts Ltd, do not represent a direct threat to MGM at the moment; however, their strategic moves should not be overlooked, because of their similar product offerings, geographic expansion plans and targeted consumer base. In order for MGM Mirage to be ahead of its competition, the company should focus not only on geographic expansion in US, but also on international expansion including through cooperative arrangements with other industry players, improved operational efficiency to minimize costs and technological advancement to maximize revenue. Focal Firm MGM Mirage, the focus of our research, is one of the leading companies in the casino hotels industry. The firm emerged from the consolidation between MGM Grand and Mirage Resorts in 2000. Some of its most recognized brands are MGM Grand, Luxor, Bellagio, and The Mirage. The company became the largest by revenue within its category after acquiring Mandalay Resort Group for $7. 9 billion in 2005, however was surpassed by Harrah’s after the acquisition of Caesars. The firm owns 16 properties in Nevada, Mississippi, and Michigan and has 50% investments in four other properties in Nevada, New Jersey, Illinois, and Macau, China. MGM acts mainly as a holding company and the majority of its operations are conducted through its wholly owned subsidiaries1. MGM’s strategy is to develop and maintain its competitive advantage through strong portfolio of resorts; â€Å"in-house† resorts operations to ensure outstanding customer service and to allow for maximum revenue and profit generation; execution of sustainable growth strategy; and leverage of brand name and management assets1. The time line of our research study is 2008-2011. The company owns, invests, and manages resorts in different market segments and it focuses on premier resort ownership in each geographic market. The largest segment is Nevada; however, the company is looking as well for new markets with growth potential. Some of the risks associated with the current strategy are linked to limitations in geographic diversifications-all major resorts are concentrated in Las Vegas and some of MGM’s largest competitors operate in the same geographic area. MGM’s revenue for 2008 was $7. 2 billion. Competitors The world’s largest competitor in the casino hotel industry Harrah’s Entertainment Inc. founded in 1937 in Reno, NV. The company owns, operates, and manages over 50 casinos in US and UK in different industry sectors. Its operations include casino hotels, riverboat casinos, Indian casinos etc. This firm, as well as other major competitors in the industry, expands primarily through mergers and acquisitions. A recent example of this strategic behavior was Harrah’s acquisition of Caesars Entertainment, which made the company the largest one in the world by revenue, followed by MGM Mirage. In 2008, two private firms – Apollo Advisors and TPG Capital, acquired Harrah’s. Since the beginning of 2009, the company has had some major difficulties with revenue generation. The firm’s facilities boast more than 3 million sq. ft. of casino space and 39,000 hotel rooms and suites. The company obtains more than 70% of its revenues from gambling. Its US properties are located in Illinois, Indiana, Iowa, Louisiana, Mississippi, Missouri, Nevada, New Jersey, and Pennsylvania. Harrah's also owns and operates the World Series of Poker tournament and brand, and manages casinos on Indian reservations. Globally, the firm owns or manages casinos in UK, Egypt, South Africa, and Macau, China. The company’s revenue for 2007 was $10. 8 billion. Las Vegas Sands Corp. founded in 1988 is another well known company that operates in casino hotels and development niche. It is headquartered in Las Vegas, Nevada. Some of its well known brands are The Venetian Resort Hotel Casino, The Palazzo Resort–Hotel–Casinos, the Sands Expo and Convention Center, and Venetian Macao Limited, a developer of multiple casino hotel resort properties in Macao, China. The company is expanding further with the opening of Sands Casino Resort in Bethlehem, Pennsylvania in 2009. The firm’s revenue for 2008 was $1. 7billion. Wynn Resorts Ltd was formed in 2002 by a former Mirage Resorts chairman and CEO Stephen Wynn. The company has two casinos in Las Vegas-â€Å"Wynn Las Vegas† and â€Å"Encore at Wynn Las Vegas†; one in Macau, China and another one, scheduled for completion in 2010, in Macau, China. Wynn Resorts’ revenue for 2008 was a little less than $1 billion. Industry predictions for future attractiveness and implications for MGM Mirage; Research question The casino hotel industry is sensitive to changes in the consumers’ disposable income; domestic and international travel volume; proximity to consumer base; as well as government regulations. The total gross revenue from gambling was $90. 9 billion in US in 2006-an increase of 7. 7% in comparison with the previous year. In 2009, the Casino Hotels industry is estimated to generate $42,324 million in revenue. The competition in the industry is very high and will probably continue to increase. Around 95% of casino visitors are local2. The casino hotel industry is in its mature life cycle stage. The industry shows signs of slow revenue growth. Lower profits triggered consolidations in the mid 2000’s amongst the major industry players- Harrah's merged with Caesars and MGM merged with Mandalay. These two players account for a third of the total industry revenue. Due to the saturation in the domestic market, some of the large industry operators are expanding internationally, mainly to UK and China, which further increases the competition in these countries. The downturn in the economy will most likely lead to continuous slow growth in the near future. The industry structure has shown that with high barriers to entry, moderate rivalry that is limited to 4-5 main competitors, and limited bargaining power of buyers, near-term profitability should be obtainable. There are growing negative social, political, and economic forces that will additionally impact the growth aspects of the industry. Approximately 70% of industry growth is related to these external forces, while 30% of industry growth is related to changes in industry structure. The negative consequences of the external driving forces outweigh the positive consequences of the industry structure. MGM Mirage accounts for approximately 14% of the total market capitalization of the industry and 15% of the total industry revenues and it will most likely follow the industry trends during the next one to three years. Therefore, the casino hotel industry appears unattractive for MGM Mirage. Keeping in mind these industry and competitor characteristics our group focused on researching the degree of threat and the likely future competitive moves that Harrah’s Entertainment, Las Vegas Sands Corp. nd Wynn Resorts Ltd will undertake in short (next 3-6 months) and long term (next 1-3 years). Pair-Wise Two-Step Competitor Analysis Model A pair-wise two-step competitor analysis model was utilized in order to understand and analyze MGM Mirage and its competitors’ future moves. The model consists of researching and evaluating the following aspects of rivals comp ared to the focal firm: market commonality, competitive asymmetry, resource similarity, intentions, beliefs, relative resource differences, past moves, and viable counter moves. The model provides a comprehensive understanding of the focal firm, the focal firm’s competitors, the rivals intentions, and facilities the extrapolation of feasible strategies for the focal firm (See Figure 1) 3. The first step of the model is to identify the degree of threat a competitor poses to the focal firm by defining the competitors and evaluating the focal firm and each one of the competitors as a pair in terms of market commonality, competitive asymmetry, and resource similarity. Competitors are identified as â€Å"firms operating in the same industry offering similar products and targeting similar customers†4. Competitors in this evaluation are limited to Casino Hotels, NAICS code 72112, which are classified by the US Census Bureau as an â€Å"industry that consists of establishments primarily engaged in providing short-term lodging in hotel facilities with a casino on the premises. The casino on premises includes table wagering games and may include other gambling activities, such as slot machines and sports betting†. Market commonality is defined as â€Å"the degree of presence that a competitor manifests in the markets its overlaps with the focal firm (multi-market competition)†5. Throughout this analysis, geographic regions as well as product types or offerings percentage contribution to gross revenue are utilized to analyze market commonality. Resource similarity is defined as â€Å"the extent to which a given competitor possesses strategic endowments comparable in terms of both the type and the amount to those of the focal firm (value chain)†6. The primary resources utilized to contrast organizations engaged in the Casino Hotels industry are financial strength, image, brand, product offerings, number of years in operation, number of casinos, and expansion plans. Identifying resource similarity of competitors is crucial because firms with analogous resources tend to implement comparable strategies, possess similar strengths, and suffer from similar weaknesses. The final phase of the first step in the competitor analysis model is to explore competitive asymmetry, which defines â€Å"What are the differences in market share across markets? Who has more market power? Where? †7 Competitive asymmetry helps to rank the degree of threat of competitor to the focal firm. The second step of the model consists of deriving competitor’s future moves and strategy from the information compiled in step one and their beliefs, intentions, and past strategic moves. Competitor’s beliefs consist of beliefs about their organization’s position in the market, the industry prospective, the focal firm, and the organization’s mission. Competitor’s beliefs provide a window into their intentions. The second phase is to infer competitor’s intentions such as primary objective, target market, attitude towards risk, and ownership objectives. The model used to analyze MGM Mirage’s competitors focused on debt to determine attitude towards risk, expansion focus to determine target market, and brand image to determine ownership intent. In order to reinforce the inferences made about a competitor beliefs and intentions, a timeline of the competitors past strategic actions are analyzed. Past actions of a competitor consist of changes in pricing model, product mix, promotions, and target market. In addition to the competitor’s past actions, the duration, frequency, and reason for past actions require additional analysis. Implementing the pair-wise two-step competitor analysis model provides estimations about a rivals future moves, when the moves will occur, how a rival will respond to the focal firm’s strategic moves, and what types of strategic moves to which the competitor is vulnerable. Understanding the focal firm’s competitors and their competitor’s future strategies and responses can be used to provide the focal firm with an edge in creating a sustainable competitive advantage. Methodology The group first looked to identify our research objectives, which primarily consisted of identifying the competitors to MGM Mirage who operate Hotel Casinos, analyzing the competitors using the pair-wise two-step model of competitive advantage to predict future strategies that would create a competitive advantage for the focal firm. Secondary research was conducted to determine the extent of research on consumer attitudes towards gaming, consumer demand for gaming, gaming consumer demographics, gaming statistics, and information pertaining to competitors of MGM Mirage who operate Hotel Casinos. A plethora of information was available on these topics from individual publications to industry overviews, and even more recently a casino hotel study, which helped to lay the foundation. Secondary research helped to focus the research questions and to provide general information about U. S. gaming consumers. The U. S. Census Bureau provided information and classification codes to help narrow down the research and potential competitors. Secondary data consisting of annual reports, public filings, news articles, business publications, analyst projections, and industry associations provided a magnitude of statistics and information. Harrah’s Entertainment Inc. Overview Harrah’s Entertainment is the world’s largest casino operator. The firm has long history and operates more than 50 casino hotel and golf facilities around the world. It went public in 1971. In 2008 the firm went private after its acquisition by Apollo Advisors and TPG Capital. It has more than 85000 employees and it focuses on first class facilities, services, operational efficiency, and technology leadership. Intentions Harrah’s intention is to be the number one or two casino operator in almost every major market in the US. The company is living up to their intention. There are only two major domestic markets where the company is noticeably absent Colorado and Detroit. In 2008, Harrah’s purchased Casino Windsor and rebranded it as Caesars Windsor. Although Windsor, Canada is across the river from Detroit, the company does not consider it to be part of the Detroit market. Harrah’s vision statement states the company strives for â€Å"each of our brands to be the overwhelming first choice for casino entertainment of its targeted customers†8. This statement suggests the company is committed to the entire brand portfolio and that brands are not used to merely fill the gap between price points. The statement also suggests the company is not satisfied with being the first choice but strives to be the overwhelming first choice. Harrah’s intentions are focused on the company being the best in the industry. Beliefs Harrah’s believes that their â€Å"differentiated and highly efficient business model provides competitive advantage†9. The company describes their strategy as a circular flow chart in which a strong brand portfolio builds customer loyalty which the company uses their decision science capabilities to further improve their brand portfolio thereby repeating the process. Harrah’s believes this business model will lead to same store gaming revenue growth and cross-market play. Harrah’s also believes their recent cost cutting initiative will provide tremendous operating leverage once revenue growth returns. The majority of the cost cuts have been in labor and benefits followed by marketing. Since Harrah’s was taken private, the company has substantially improved productivity. The company believes similar operational excellence will repeat itself in their recent cost cutting initiative. Past moves, countermoves, and timing Harrah’s has almost never been a first-mover to a new market. The firm did not enter Las Vegas until 1980, about 43 years after opening their first casino in Reno, Nevada. Even then, Harrah’s did not enter the market on its own. The firm gained a Las Vegas property when the company was acquired by Holiday Inns, which already owned a property in Las Vegas. In a similar sequence, Harrah’s entered also late to Atlantic City and was nudged into the market by their parent company, Holiday Inns. It was actually MGM Mirage that first proposed to build a property in Atlantic City in 1979. Despite having blueprints, the MGM Mirage property was never built, which opened the door for Harrah’s to enter Atlantic City a year later with a Holiday Inns project. In 1992, Holiday Corporation spun off their casino business from their hotel business and it wasn’t until 1995 that the casino segment was renamed Harrah’s Entertainment. Again, Harrah’s was a second-mover in another market. This time it was the international market. Harrah’s opened their first international property in New Zealand, almost a full year after MGM Mirage purchased their first international property in nearby Australia. More recently, Harrah’s has continued to take a conservative approach to international development with their wait-and-see attitude with regards to Macau, China and Singapore, the two regions driving international efforts at other casino operators. Harrah’s has even followed quickly behind MGM Mirage in acquisitions. In June 2004, MGM Mirage announced the purchase of Mandalay Bay for $7. 9billion. Not to be outdone, a month later, Harrah’s announced the purchase of Caesars Entertainment $9. 4billlion. The past actions of Harrah’s suggest the company will not be the first into new a market. Relative resource position As the largest and most diverse casino operator, Harrah’s has greater resources relative to MGM Mirage. Based on total assets, Harrah’s is nearly a third larger than MGM Mirage. Harrah’s operates 56 properties in 6 countries where as MGM Mirage operates 20 properties, all but the company’s Macau property are located in the US. Despite being larger in total size, the size of each of Harrah’s properties is considerably smaller than each of MGM Mirage’s properties. 10(See Figure 2) Harrah’s also has the industry’s leading customer loyalty program alled Total Rewards. Total Rewards allows players to earn cash, comps, and other benefits for playing at the company’s casinos. There are over 40 million members in the program and the company tracks approximately 80% of all gambling. Approximately 45% of all tracked play is cross-market play (guests who visit more than one Harrah’s property)11. The company considers the Total Rewards program â€Å"the engine† to generate same store gaming revenue growth and cross-market play through superior marketing and technological capabilities12 . The information in their customer database allows Harrah’s to profit by allowing them to monitor the play of all members and to focus marketing efforts on the highest return uses. Total Rewards benefits Harrah’s by driving revenue, optimizing costs, and maximizing profitability. Predictions Short-term In the short-term, Harrah’s actions will be determined by their financial position. Currently, Harrah’s has a large debt overhang, which will reduce the amount of further debt the company is willing and able to take on. Harrah’s is not expected to make big capital spending projects however; the company will remain focused on their intention of being the number one or two casino operator in almost every major market in the US (See figure 4). Harrah’s is predicted to increase non-gaming revenue by utilizing information gleaned from their Total Rewards program. As mentioned earlier, the Total Rewards program is one of the company’s largest relative resource advantages. In terms of product mix, Harrah’s has one of the lowest percentages of non-casino revenue to gross revenue of the four major casino operators. When further analyzing non-casino revenue, one will notice that Harrah’s has the lowest percentages of Entertainment, Retail, & Other revenue to gross revenue. The firm can use the Total Rewards Program to increase the non casino revenue mix. Its members will use their cards at stores, restaurants, and events in a manner similar to how they scan their cards while gambling. Harrah’s can encourage them to start scanning their cards at places other than the slot machine or the blackjack tables by providing discounts on purchases. Harrah’s could also count retail points in a method similar to the metrics used for gambling points like time spent gambling, amount wagered, etc. This information would show which restaurants, shops, or events are truly desirable to their customers and it could be mined from the Total Rewards database. Since the majority of Harrah’s customers are local, this strategy would not be a national strategy it should be tailored to specific properties (See Figure 3). Additionally, Harrah’s will seek a partner to continue construction on their Margaritaville property in Biloxi, Mississippi. The property is a $700 million project, which already includes the singer-songwriter and Mississippi native, Jimmy Buffett, as a partner13. Plans for the project were first announced in 2007 and a year later, the company announced construction will be delayed citing a poor economic environment. The primary reason for the desire for an additional partner is due to mounting financial costs but a partner should also provide experience in property construction and development, an area where Harrah’s is relatively inexperienced due to their focus on growth through acquisitions. Harrah’s should continue construction on the property because the economies of Gulf Coast region have held up relatively well due to higher reliance on the energy industry, which has benefitted from rising energy prices in the past year or so and is predicted to do well in the near future. Harrah’s has reaffirmed their commitment to the project and has received interest from prospective partners. Moreover, Harrah’s should continue with its regional expansion as legislation and financing permits. The past actions of the industry indicate that casino operators enter a state immediately after legislation allows slot machines and video table games like poker and blackjack. Once casino operators establish a presence in new markets, they strongly lobby for expansion of operations, which is typically successful in permitting full casino operations including table games. This sequence has recently repeated itself in Pennsylvania, West Virginia, and Indiana. It is predicted the next states will be Ohio, Rhode Island, and Massachusetts. Harrah’s already has a presence in Ohio when they purchased a bankrupt, horse-racetrack outside of Cleveland earlier this year. Since a bill was just passed in Ohio to allow slots, we believe Harrah’s will start to add slot machines to their new property outside of Cleveland. In repetition of the usual sequence, legislation was recently proposed to allow four full-service casinos in Ohio. This domestic expansion strategy will not risk cannibalizing sales from their other properties because the typical Harrah’s customer is local and the company does not have any properties east of Indiana except for Atlantic City and outside of Philadelphia. Long-term In contrast to short-term strategies based on domestic projects, Harrah’s is predicted to focus on international efforts in the long-term. During the past four years (2004-2008), the US casino and gaming sector experienced compound annual growth of 3. 7%, which includes a growth rate of -1. 3% in 2008 and is on pace for a decline of 8. 4% for 200914. Estimates of future growth are not very optimistic either. Growth is not anticipated to occur until 2011 at which time, it is expected to be gradual. Over the next 5 years (2010-2014), the domestic industry is estimated to grow at an annual rate of 4. %15. On the other hand, international growth has been much greater and is anticipated to continue. During the same year period (2004-2008), the international casino and segment industry experienced a compound annual growth rate of 7. 0%. Recent performance has also been strong including growth of 6. 2% in 2008. Future international estimates include a compound annual growth rate of 5. 8% from 2008-201316. Harrah’s will focus internationally given the attractive growth opportunities. As the figures suggest, growth in the casino industry is anticipated to be in the international market. Harrah’s has relatively lower percentage of gross revenue derived from outside of the US, only 10%, versus their three largest competitors who average 48%. Harrah’s actions acknowledge a focus on international expansion. A month ago, Harrah’s hired Peter Murphy, an executive from Disney, to oversee strategy and development because of his international efforts at Disney. One of the first areas Murphy will be asked to expand will be Macau, China, which passed Las Vegas as the largest casino gambling region in 2007. Harrah’s is also predicted to partner with a casino operator that already holds a gaming license in Macau. Currently only six operators have gaming licenses in Macau including Las Vegas Sands, Wynn, Galaxy Entertainment, Melco Crown Entertainment, STDM, and a partnership between MGM Mirage and Chinese casino mogul, Pansy Ho. It is most likely that Harrah’s will partner with Melco Crown Entertainment (Melco). Melco is an Australian-based company that focuses on the mid-market customer like Harrah’s. Harrah’s first international expansion effort in 1996 was in nearby New Zealand. Despite not having a gaming license, Harrah’s already has a presence in Macau. The company owns a 5-star golf center, which includes a golf school led by Butch Harmon, the number one golf instructor in the US. Perhaps more importantly is the land Harrah’s owns in Macau, including the 175 acres of their golf center. The location of the land is also beneficial as it is adjacent to one of only two bridges into Macau from China. Earlier this year, Michael Chen, Harrah’s Asia president, said, â€Å"as the largest gaming operator in the world, we have an interest in the largest gaming market in the world†17. Harrah’s is also predicted to develop online gaming operations for the UK market. Harrah’s, along with MGM Mirage, are the two largest proponents to legalize online gambling. Earlier this year, Harrah’s established a subsidiary in Montreal to formulate an online gaming strategy. Mitch Garber, the former CEO of online gambling giant PartyGaming, was selected to lead the operation. Despite being headquartered in Montreal, Garber’s hometown, the UK market is the most probable future market. Also in the past couple of months, online gaming was approved in the UK. Harrah’s is familiar with the brick-and-mortar casino operations in the UK as well. In 2006, the company acquired the London Clubs International. Establishing online gambling operations in other countries may also provide inroads to the online gambling in the US. As mentioned earlier, Harrah’s is a strong proponent of legalizing online gambling and has been lobbying to have legislation introduced. Harrah’s lobbying efforts appear to have started to bear fruit based on the introduction of a bill that proposes that online gambling be legalized and regulated in the US by Representative Barney Frank18. Additionally, Harrah’s will acquire The Lodge Casino and Hotel outside of Denver. This move is consistent with Harrah’s intention to be the number one or two casino operator in almost every major market in the US. In 1991, casino gambling was legalized in Colorado. Harrah’s entered this market with two casinos in 1993 through Eagle Gaming, which Harrah’s owned 1/6th. In 1996, Harrah’s sold the Colorado properties due to limited growth and uncertainty about taxes. Except for Isle of Capri, a $33M market cap company, no major casino operator has operations in the Colorado market. Most large casino operators are hesitant to enter this market because bets are limited to $5. Harrah’s focus on slot machines and low-rollers will suggest that the company will reenter the market. Las Vegas Sands Corp. (NYSE: LVS) History Las Vegas Sands is a casino resort company based in Las Vegas, Nevada. It is the world's leading casino based company with a market capitalization of 9. 72 billion as of August 2009. At one point in 2007, it had a market capitalization of $43. 7 billion, making its majority shareholder, Sheldon Adelson, one of the world's richest men. The company owns and operates The Venetian Resort-Hotel-Casino, The Palazzo Resort-Hotel-Casino, and the Sands Expo and Convention Center in Las Vegas and the Sands Casino Resort Bethlehem(TM) in Eastern Pennsylvania. It also owns and operates The Venetian Macao Resort-Hotel and the Sands Macao in the People's Republic of China (PRC) Special Administrative Region of Macau. In addition, LVS owns the Four Seasons Hotel Macao and is also developing the Marina Bay Sands(TM) integrated resort in Singapore. Furthermore, LVS is developing the Cotai Strip(R), a master-planned evelopment of resort-casino properties in Macau. At completion, the Cotai Strip will feature approximately 21000 rooms from world-renowned hotel brands such as St. Regis, Sheraton, Shangri-La, Traders, Hilton, Conrad, Fairmont, Raffles, Holiday Inn, and InterContinental. While the company's flagship property, The Venetian, is in Las Vegas, less than a third of LVS' total revenues came from Las Vegas by 2008. Macao gamin g industry revenues increased every year for a decade until 2007 and then fell in 2008. In January 2009, the revenues had dropped more than 30% from their levels in January 2008. Nevertheless, Las Vegas Sands’ three Macao properties generated 69. 6% of total revenues during 2008. After incurring a net loss of $164 million in 2008, LVS has set aside $3 billion in cash reserves as a cushion for its debt obligations. Perspectives The company's primary business objective is to provide a premium destination casino resort experience in order to drive superior returns on invested capital and to increase asset value. To achieve this objective, the company operates a â€Å"must-see† destination resort at a premier location in the heart of the Las Vegas Strip. LVS captures premium room rates through a differentiated superior all-suites product. It drives hotel occupancy and casino utilization through the link to the Expo Center and the Congress Center. LVS caters to a higher-budget customer mix by offering a unique combination of assets and facilities. The firm leverages the casino resort's premium co-branding strategy to drive revenues and targets premium gaming customers. Culture of Las Vegas Sands (Big risks and big rewards) Experienced Las Vegas operators have historically been richly rewarded for taking big risks. For example, Adelson, LVS Chairman and CEO, constructed the $105 million Sands Expo & Convention Center in 1990-the largest privately owned building of its kind in the country. When it opened critics viewed it as a foolhardy expenditure for a gambling town that had a publicly funded convention center. With the $1. 5 billion Venetian, which opened in 1999 next door to the Sands convention center, Adelson raised the stakes, betting that his flourishing trade show business could fill an upscale megaresort. He lured convention goers to the Venetian with bigger rooms and more hotel amenities, charging top room rates. Adelson proved to be a big risk taker and a big winner. He eventually refinanced the property and paid down the expensive loans, making the 4,049-room Venetian that opened a 1,000-room hotel expansion in 2003, one of the most profitable casinos of all time. By making piles of money on hotel rooms, Adelson helped redefine a business that had focused on gambling revenue at the expense of other amenities. His success at the Venetian was imitated by competitors such as Mandalay Resort Group, now part of MGM Mirage, which opened a 1. -million-square-foot convention center in Mandalay Bay in 2003. The convention business, a big part of the Strip’s growth after 2001, has helped to maintain high room rates in Las Vegas during traditionally slower periods creating year-round demand. Las Vegas Sands was once the envy of Wall Street. In fall 2007, with seemingly unlimited growth prospects in Macau, which was the most lucrative gambling market in the world, the company’s share pric e reached $150. Shortly after that, the company market value plummeted more than 90 percent. Some industry analysts argue that LVS executives played a key role in the financial decline, pushing ahead efforts to dominate the Macau gambling market and stretching the company thin, even as indicators showed that credit was drying up and tourism was faltering. Operations in Asia (Recreating the Las Vegas Strip in Asia) Macau, a semi-autonomous province of China, began welcoming Western casino operators in 2002 in an effort to rise above its roots as a seedy gambling den and broaden the region’s appeal to Asian tourists with Las Vegas-style resorts. Las Vegas Sands was the first Western company to open a casino in Macau, in 2004. The early bet paid off. The company recouped its $240 million Sands Macau construction budget within a year of the opening. The casino, which has more than 600 table games yet fewer than 300 hotel rooms, primarily offered to Chinese gamblers for free, gained a foothold ahead of the resorts that followed. The company appears to be performing respectably in desperate times, including achieving 92 percent capacity at the Venetian and 95 percent at Palazzo, at rates of more than $200 a night in quarter three of 2004. The Venetian Macau attracted a record 6. 6 million visitors that quarter. As the lead architect in Macau, Las Vegas Sands, which beat out American competitors for rights to build one of two casino resorts to open in Singapore in the coming year, is well-positioned to compete for opportunities in places such as Japan and Taiwan, where observers argue that casinos are simply a matter of time. Trends LVS has large exposure to the Macao gaming market and the company will fight any new or potential competitor there. In 2008, 69. 6% of LVS's total revenues came from Macao. The Venetian Macao alone produced $1. 9 billion in revenues during 2008 while the company's Las Vegas properties produced only $1. 3 billion that year. The Macao gaming market is largely dependent on the Chinese market and economy. While Macao gaming industry revenues had increased every single year for nearly a decade up until 2007, gaming revenues for the region started to decrease in 2008. Industry revenues in January 2009 dropped by 30% in comparison with revenues gained in January 2008 as the global economic crisis affected Asian gamblers. LVS is committed to Macao market exposure with its â€Å"Cotai Strip† development in the works and if the market continues to worsen, Las Vegas Sands could see its bottom line affected accordingly (See Figure 5). Despite economic slowdown, LVS is expanding. The company is building new resort in Singapore, called Marina Bay Sands, and in Bethlehem, Pennsylvania, called Sands Bethworks, despite the slumping casino industry that is causing companies like Riviera Holdings to default on their credit lines. Because LVS has already begun construction on these resorts, the company cannot cut the casinos funding even as it laid off over 11000 of its staff in 2008 to cut costs. As a result, the company has accumulated heavy debt. In March 2009, LVS had over $10 billion in debt from financing aggressive growth projects. The company has about $3 billion in cash to cushion upcoming debt obligations but LVS's expansion investments occurred at the beginning of a global recession, worsening the firm’s financial positions. At the end of 2008, LVS' assets were valued at $17. billion, over 38% higher than its $12. 4 billion in liabilities. Macao's gaming laws and taxes are relatively new and have a few precedents, making them quite vulnerable to sudden change. China has a large and affluent middle class, but for many years travel and currency restrictions have made it difficult and undesirable for visitors to come to Macao. The Chinese government relaxed many of these restrictions in 2002 whe n it first granted gaming licenses and ended its state-run gaming monopoly. As a result, the Macao gaming market grew to generate over $928 million in revenues in January 2009. Predictions (short and long term) for Las Vegas Sands In the next 1- 2 years the expectation is that Las Vegans Sands will maximize the cash flow from its current operations in Las Vegas and Macau, including through the implementation of annualized cost savings. At the same time, the firm needs to complete on time and on budget the properties currently under development in Singapore and Bethlehem, Pennsylvania in order to stay afloat. Long term Las Vegas Sands will keep increasing investments in Cotai Strip, the area that is rapidly transforming Macau into a world-class resort destination. The company could potentially expand in Japan, Thailand, and India as it looks for growth opportunities in the vibrant Asian region. Wynn Resorts, Limited (Ticker: WYNN) Wynn Resorts, a Nevada corporation, was formed in June 2002, is led by Chairman and CEO, Stephen A. Wynn, and is a leading developer, owner, and operator of destination casino resorts. Wynn Resorts owns and operates three casino resorts: â€Å"Wynn Las Vegas†, â€Å"Encore at Wynn Las Vegas†, and â€Å"Wynn Macau†. In addition to these three properties, Wynn is currently constructing Encore at Wynn Macau, an expansion of the Wynn Macau resort. During 2008, the casino resort business experienced difficulties due to a number of factors affecting consumers, including a slowdown in global economies, contracting credit markets, and reduced consumer spending. Steve Wynn is the preeminent designer, developer and operator of destination casino resorts and has developed brand name status. Wynn’s involvement with the casino resorts provides a distinct advantage over other gaming enterprises. All of the Wynn resorts are designed and built to provide a premium experience. The casinos are marketed as full-service luxury resorts and casinos in the leisure, convention, and tour and travel industries. The resorts are marketed directly to gaming customers using database marketing techniques, as well as traditional incentives. While there is significant competition in the Las Vegas and Macau markets, Wynn seeks to differentiate from other major resorts by concentrating in its fundamental elements of design, atmosphere, personal service, and luxury. Intentions / Beliefs of Wynn Resorts In relation to MGM Mirage, Wynn Resorts competes in similar geographic markets, primarily Las Vegas and Macau, with secondary markets in Atlantic City, Riverboats, etc. However, based upon Wynn’s detailed disclosures in its public financial statements, press releases, and transcripts from earnings calls, Wynn Resorts believes that it has a fundamental core competency in providing an atmosphere of the utmost luxury. Therefore, it may be possible that while Wynn Resorts and MGM Mirage compete in the same geographic markets, the companies will compete for a slightly different customer base. Wynn Resorts has consistently targeted those customers with a very large net worth and require the most luxurious accommodations. In that regard, Wynn Resorts has found that it is not necessary to typically use comps and other forms of customer promotions to attract the wealthiest clients. The company attempts to portray itself as the top-tier casino-hotel, providing unmatched services for those individuals that demand the very best in customer service and quality. Therefore, it appears that Wynn’s intentions are to attract customers through the marketing of its luxurious hotel-casino properties, particularly in Macau. In Wynn’s 2008 annual report, expansion plans were described for the Macau geographic area. â€Å"We have commenced construction of Encore at Wynn Macau, a further expansion of Wynn Macau. Encore at Wynn Macau will add a fully-integrated resort hotel to Wynn Macau, planned to include approximately 400 luxury suites and four villas along with restaurants, additional retail space and additional VIP gaming space. We expect Encore at Wynn Macau to open in 2010†19. In addition, Wynn Resorts has improved approximately 142 acres of land for use as a golf course in the Las Vegas area. However, no future improvements are planned due to the current economic environment. Based on these disclosures, MGM Mirage management can be certain that Wynn Resorts continues to belief that its best prospects for growth are in the Asian gaming market, evidenced by its expanding construction projects in the Macau region. Wynn Resorts also believes that future development opportunities in the Las Vegas area may present profitability. However, current economic conditions may not make these development projects profitable in the near-term. Meanwhile, Wynn Resorts expects that MGM Mirage’s CityCenter project, along with other Las Vegas expansion projects by industry competitors present significant competitive challenges in the near-term. Past moves, countermoves, and timing of Wynn Resorts Since its inception in 2002, Wynn Resorts has attempted to distinguish itself amongst the fierce competition in the casino industry by developing casinos that are â€Å"state-of-the-art†, cutting-edge, and luxurious. Wynn Resorts attempts to attract the wealthiest of customers that have a propensity to spend more of their disposable income on luxury items, specifically gambling-related activities. As a result, Wynn Resorts is not overly concerned with differentiating their products based upon price. Wynn Resorts is focused on product differentiation. This is evident by Wynn Resorts statement that â€Å"we are attempting to differentiate the Wynn products. However, at this time, we are uncertain how our customers will value the existing Wynn properties on a relative basis†20. Wynn Resorts is attempting to differentiate its casinos from one another not based upon price, but based upon qualitative factors such as the availability of restaurants, spa services, shopping boutiques, nightclubs, etc. Typically, competitors in the casino industry have limited strategy initiative options. These options include expanding to new domestic markets, expanding to new international markets, and providing additional services at pre-existing casino-hotels. During the past several years, Wynn Resorts has chosen to avoid providing additional services at pre-existing casino-hotels (i. . Wynn Las Vegas), but instead move forward with large expansion projects both domestically and internationally (Encore at Wynn Las Vegas and Wynn Macau). Relative resource position of Wynn Resorts As of year-end 2007, Wynn Resorts held approximately 8% of the total market share in the Nevada region, as compared to 18% market share owned by MGM Mirage. As stated previously, Wynn Resorts currentl y has three casinos, two in Las Vegas, one in Macau) as compared to MGM Mirage’s twenty casinos. Recently, Wynn Resorts has been noncommittal in its disclosures regarding future expansion projects. Wynn Resorts is in a position of strength in terms of financial stability, as its financial statements display large amounts of current assets along with positive cash flows and manageable debt ratios. Wynn Resorts has a risk-averse attitude towards the growth of its balance sheet. The company is not highly leveraged and has over $1 billion in cash to assist in absorbing losses during the current recession. An additional source of competitive advantage for Wynn Resorts is the leadership of Stephen Wynn. Mr. Wynn has several decades of experience in the gaming industry, and has been instrumental in the construction of the Bellagio, the Mirage, and Wynn Las Vegas. Generally speaking, Steve Wynn is known as â€Å"The Man Who Helped Reinvent Las Vegas†. Mr. Wynn’s importance to the organization is paramount, and â€Å"The loss of Stephen A. Wynn would significantly harm Wynn’s business†21. When considering brand and image, Wynn Resorts has strong brand loyalty amongst customers in the â€Å"high roller† community, as well as strong brand recognition in Las Vegas and Macau. However, due to the lack of presence in other areas of the United States, Wynn Resorts is not currently leveraging the notoriety of its brand name and Steve Wynn’s reputation as an innovative leader in the industry. Predictions (short and long term) for Wynn Resorts Given the strong financial position of Wynn Resorts and their historically selective approach to casino expansion, Wynn Resorts will not expand the number of casinos in operation in the near term (12- 18 months). On November 2009, Wynn Resorts has stated to its shareholders that they would not focus efforts on expanding in the U. S. until the business environment improved. Instead, it is predicted that Wynn Resorts will instead make enhancements to their two existing casinos in the Las Vegas market. â€Å"In response to our evaluation of our Las Vegas operations and the reactions of our guests, we have and expect to continue to make enhancements and refinements to our resort,† the company said this week in its quarterly financial report in November 2009. The projected expansion in the casinos will enhance the availability of pools, food and beverage services, and nightlife offerings. MGM Mirage may respond to Wynn’s actions by also expanding upon its casino customer offerings. Furthermore, MGM Mirage should also avoid direct casino expansion during a depressed economic environment. Instead, MGM Mirage should strive for financial stability while attracting customers with non-gaming services and accommodations. Being that Las Vegas is a mature market with several strong competitors, MGM Mirage may consider its presence in other domestic regions in the Midwestern section of the United States. Over the next 18 – 48 months, however, Wynn Resorts will continue to engage in competition as it relates to worldwide casino expansion. By analyzing the growth in industry revenue, and the statistics described regarding market commonality, Wynn Resorts will most likely directly engage in a battle with Las Vegas Sands for market share position in the Macau region. Additionally, Wynn Resorts will continue its financially frugal decision-making patterns by purchasing racinos and undervalued real estate properties with the intention of capturing profits through capital appreciation. These types of purchases by Mr. Wynn and Wynn Resorts have been consistent with actions portrayed during the past three years. MGM Mirage may engage in the competition for casino expansion in the Macau region, but should be cautious in making full-scale investments into a casino market already fully dominated by Las Vegas Sands and Wynn Resorts. Instead, cooperative arrangements and joint ventures may be suitable alternatives (See Figure 6). Summary and Conclusions The casino hotel industry is sensitive to changes in the consumers’ disposable income, domestic and international travel volume; proximity to consumer base, as well as government regulations. The industry structure consists of high barriers to entry, moderate rivalry that is limited to 4-5 main competitors, limited bargaining power of buyers, allowing for the possibility of near-term profitability. The pair-wise model utilized provided a comprehensive understanding of the focal firm, the focal firm’s competitors, the rivals intentions, and facilities the extrapolation of feasible strategies for the focal firm. In order for MGM Mirage to create a competitive advantage, the company should focus on geographic expansion in US and on international expansion, through cooperative arrangements with other industry players, improved operational efficiency to minimize costs, and technological advancement to maximize revenue. In the short term, MGM Mirage may be able to extract profits from the market by creating a competitive advantage but long term the industry structure, negative social, political, and economic forces will negatively affect the growth aspects of the industry.

Trade Case Studies Assignment Example | Topics and Well Written Essays - 500 words

Trade Case Studies - Assignment Example The models of trade developed by Paul Krugman can also explain intra-industry trade as an outcome of economies of scale, monopolistic competition, and consumer preference for product diversity. The development in the field of geography led to his work crediting especially since it helps to explain the core periphery pattern of urbanization and migration as witnessed in much of the world. Also, Paul Krugman has made noteworthy contributions to the research on strategic policies of trade and currency crises. The trade businesses which have trade patterns that conform to Krugman’s theory are clothing, shoes, restaurants, and service businesses in major cities. The trade patterns conforming to Krugman’s theory exhibited by these businesses show that the costs of production reduce with increasing market prices resulting in lower equilibrium prices for the products. Globalization can have challenging drawbacks to some countries in the world. First, the importation of cheap products from developing countries could lead to high levels of unemployment in developed countries due to the high costs of production. Secondly, the specialization in particular products by some countries could lead to unemployment in other non-prioritised sectors of the economy. Finally, globalization has led to intense competition for upcoming businesses in developing countries and the ‘Dumping’ of goods below the cost of production price harming the businesses in those countries (Perloff, 2004, p.7). Globalization as a world issue of concern has had a positive effect on my life due to the creation of a free trade zone, elimination of trade restrictions such as trade tariffs, a wide range of products and services to choose from, and reduction of transportation costs, for example, the cost of shipping for goods The ignorance of the possible job losses in the

Political Economy and Economics Research Proposal

Political Economy and Economics - Research Proposal Example The term political economy is used in yet a third sense. â€Å"It is the name of the science, which treats of this nation-wide complexus of economic activities.† (Knight, 2005) The subject matter of political economy: Political economy studies the laws, which cover the functions of production and exchange of material means. Both important functions constitute. Production is an independent function but the exchange is dependent on production since exchange can only be done of products. Although the external influences affect both of the two functions but in order to put up with these external influences both the functions have their own laws. Production and exchange are the major activities, which constitutes the economics curve. The circumstances affecting these two functions can be different in different countries. The difference in time span in which both of these functions are practiced can also change the notion of political economy. â€Å"Political Economy belongs to no nation; it is of no country: it is the science of the rules for the production, the accumulation, the distribution, and the consumption of wealth. It will assert itself whether you wish it or not. It is founded on the attributes of the human mind, and no power can change it.† (Speech on the Irish bill, 1870)

Second Industrial Revolution Essay Example | Topics and Well Written Essays - 750 words

Second Industrial Revolution - Essay Example The first industrial revolution was brought about when the entire mode of work was revolutionized, with workers shifting massively from the agricultural fields to hard-core machine-equipped industrial units. People gave up agricultural labour and joined factories, because of which manufacturing became the major industry, especially in the United States. This led to the dwindling of the agriculture and farming sector. Machinery came to occupy an important position in man's life and everything began to get mechanized. The textile mills were the first to face this mechanization, which eventually spread to other industrial sectors as well. In addition to this, the invention of the steam engine revolutionized transportation and infrastructure. The first industrial revolution enhanced job opportunities and helped in doing away with unemployment to a large extent. It led to the rise of the middle class, which consisted of industrialists and entrepreneurs over the nobility and gentry. It also led to the betterment of the working class, who found a voice. However, what remained a sad state, was the working condition. The conditions of work remained akin to the pre-Industrial era, with long working hours, child labour and the like. People's lives changed dramatically and more stress was being laid on organisations, factory units and businesses. This is when the entire perception of earning a livelihood altered drastically. Thus, the first phase of t he industrial revolution was definitely an improvement over the already existent conditions of living. However, it gave rise to the second industrial revolution, which had far-reaching effects.The second industrial revolution came about, when people started concentrating more on the services, rather than manufacturing per se. The invention of electricity, the growth of railways, and other such details. This period, between 1865 to 1900 was marked by a change in the set-up of organisations and workplaces, that became quite different. This paradigm shift changed the equations once again and set the pace for a totally different kind of work system and environment. The rise of white-collar jobs and professionals and the catering to demand as per the demands of a country 's economic disposition was seen. In addition to this, there was a general form of unemployment, with urban industrial workers taking the main seat. The organisations came to be characterised by a strong working class. For instance, the growth of labour unions and the laying down fo strong principles on the conditions of work, the voicing of opinions and the unification of

CRIMINAL LAW Barrister advice and defence statement Essay

CRIMINAL LAW Barrister advice and defence statement - Essay Example Mr. Olmeda saw the defendant, Joseph Wearn, hovering around a display of walking sticks. Mr. Wearn was looking around rather suspiciously. Mr. Olmeda contacted his colleague in the video control room to have the camera operator focus on Mr. Wearn. Mr. Olmeda then witnessed Mr. Wearn take a walking stick. Mr. Wearn camouflaged the walking stick and made a speedy exit through the front of the store without stopping to pay for the item. Mr. Olmeda followed Mr. Wearn all the way to the main concourse area inside Brent Cross shipping centre. Mr. Olmeda took hold of Mr. Wearn’s arm and cautioned him that he was the store detective and that he watched him remove a walking stick and exit the door without paying for it. Mr. Olmeda asked Mr. Wearn to step inside the store with him while he contacted the store manager, Mrs. Linda Levison. Mr. Olmeda retrieved the walking stick from Mr. Wearn when he stopped him outside of the store. Mr. Wearn repeatedly shouted obscenities while on the w ay to the store manager’s office, Mrs. Linda Levison’s office. Mr. Olmeda explained to Mrs. Levison what had just transpired and handed her the walking stick. The store manager, Mrs. Linda Levison, phoned the police who arrived at 12.50 hours. Mr. Olmeda explained what had transpired and then he returned to his post. Witness: Mrs. Linda Levison Occupation: Store manager of John Lewis, Brent Cross, London Statement taken: 9 December 2010 Summation: Mrs. Linda Levison is the store manager for John Lewis, Bent Cross, London. On 8 December 2010, Mrs. Levison was met in her office by store detective, Javi Olmeda. Mr. Olmeda informed her that he had apprehended Mr. Joseph Wearn for taking a walking stick from the store without paying for it. Mrs. Levison took Mr. Wearn, who was escorted by the store detective, Javi Olmeda, to her office. She proceeded to call the police who arrived on or about 12.50 hours. This is pursuant to the store policy of contacting the police wheneve r a theft is alleged. According to Mrs. Levison, the alleged perpetrator, Mr. Wearn was crying while they awaited the police to arrive. Once the police had arrived, Mr. Olmeda, the store detective, recounted the allegation and returned to his post. According to Mrs. Levison, the walking stick that she had been given by Mr. Olmeda was characterized by a prominent lion’s head handle. It also had the store’s label attached to it so that Mrs. Levison was able to ascertain that the item in question was indeed sold at her store and part of the inventory. With the information from the label of the walking stick, Mrs. Levison was able to identify it as part of the store inventory and that such a walking stick, according to computer records, was not sold on 8 December 2010. Mrs. Levison handed the walking stick over to one of the attending officers, PC May. She then witnessed Officer May arrest Mr. Wearn and watched them leave her office. Mrs. Levison is producing the computer records from 8 December 2010 (Exhibit LL/1), and is willing to give evidence in court. Witness: Richard Fairchild Occupation: Security camera operator Statement taken: 9 December 2010 Summation: Mr. Fairchild is employed as a security camera operator by Securigard PLC. On 8 December 2010, he was working at the John Lewis Partnership’s central office manning the camera desk. Mr. Fairchild is responsible for operating the security camera. The security camera is set up to monitor and record

Strategy Paper Essay Example | Topics and Well Written Essays - 750 words

Strategy Paper - Essay Example As mentioned, a bachelor’s degree is not directly proportional to outstanding performance. It is on this premise that our front liners – the people who will deal and interact directly with customers and suppliers – do not essentially need to be degree holders, but should have sufficient expertise in this field, and should have delivered excellent performance in their respective fields during previous work experiences. Customer Service is one of the company’s first priority as it reflects the values and objectives of the company, and this is something not really learned within the confines of a classroom, but in an actual interactive environment where one begins to learn and understand the needs of a customer. To further enhance the company front liners, they will also be subject to trainings and workshops that would contribute to the betterment of their performances. Same amount of regard would be given to the company’s sales and marketing teams, as they will be the backbone of the company. They will be given specific goals to achieve as far as sales are concerned. The Marketing team will likewise be given quantifiable objectives that could be equated to the success of the sales team. Each employee’s contribution definitely makes up for the company’s success, therefore making it crucial to find the right people who would deliver results for the company. 10-8 ensures that its workforce is maximized by giving high regards to the collective achievement of the team members, not only to individual performances. This way, each team member’s potential will be utilized in a manner whereby the results would always reflect to the team as a whole. 10-8’s core value is to give back to the community, and this is reflected in the company’s marketing and business strategy. The management would like to position the company as a

Atmospheric Ozone Essay Example | Topics and Well Written Essays - 750 words

Atmospheric Ozone - Essay Example Although Ozone occurs naturally in the atmosphere it can be produced by numerous chemical reactions in a chemical laboratory. Atmospheric Ozone results from a mechanism when O2 absorbs Ultra Violet (UV) radiation at wavelengths of about 242 nanometers (nm) [1m = 109nm] but is removed by a phenomenon called Photo-dissociation from sunlight at wavelengths greater than 290nm (Ozone in the Atmosphere "n.d"). Ozone occurs in the atmosphere in Troposphere, Stratosphere, Mesosphere and Thermosphere. The amount of Ozone found in the atmospheric layers is dependent on the temperature. The troposphere which is the bottom layer of atmosphere has the lowest amount of ozone. The deterioration of the Ozone layer leads to a phenomenon known as the 'Greenhouse' effect. The effect is caused by greenhouse gasses known as chlorofluorocarbons (CFC's) including carbon dioxide and is a major cause of many environmental problems. Greenhouse gases are said to be the leading cause of Global warming (Ozone in the Atmosphere, "n.d"). The amount of ozone in the atmosphere is measured using Dobson units (Du), [1 mm of O3 thick layer = 100 Du] if compressed at sea level pressure. The threat to the atmospheric ozone balance has been on the increase as industrialization and modernization grows around the world. These events have significantly increased the rate of ozone removal, resulting in a gradual decline in the global ozone levels (Wikipedia, "n.d"). Ozone Depletion Man-made industrial activities produce massive amounts of CFC's. The dangerous and ozone depleting compounds are used in many industrial processes and can be found in many household products. CFC's are used as coolants in refrigerators and as propellants in various spray cans. These gases are also employed in the production of certain foam mixtures, in electronic and mostly in solvents (The Atmospheric Zone "n.d"). CFC's have a very long lifespan. A single molecule of a CFC gas can exist for centuries before it is eliminated once it escapes into the atmosphere. After their release into the air through a simple human activity like the spraying of a CFC containing can, studies have shown that the gases can reach the stratosphere between a 1-5 year periods. Once the released CFC reaches the ozone layer, it depletes it causing less UV rays to be absorbed by ozone layer. This happens when the CFC molecules breakdown upon reaction with UV rays from sunlight, the reaction releases free radical chlorine atoms and it these atoms that destroy and deplete atmospheric ozone layer. The depletion of the protective ozone layer and the subsequent passage of UV rays which are known to be harmful are the cause of various effects and illnesses. Skin cancer is said to be on the increase, various problems and diseases are plaguing crops around the world. Temperatures are rising around the earth leading to more floods, hurricanes like Katrina in 2005, and record braking heat waves in Europe. According to the Intergovernmental Panel on Climate change (IPCC) a United Nations Advisory body, environmentalists and researchers have linked (through the use of ground-based and satellite measurements) the depletion of the

Upwardly Essay Example | Topics and Well Written Essays - 500 words

Upwardly - Essay Example For instance, the people of Muruguru village have been for a long time suffered because of impassable roads; thus difficult to reach customers in the market easily. However, the introduction of the mobile phone use has significantly changed their lifestyles because they are nowadays able to reach their customers in the market easily; thus improving their business activities. Ewing (380) argues that the mobile phone use can dramatically improve the living standards through saving time on wasted trips, offering information about prices of the products and even conducting banking services. It also affects the living standards of people through changing the developing markets faster. There are many millions of mobile subscribers across the globe and the effect of mobile use is more dramatic than in Africa, where mobile technology represents the modern infrastructure (Ewing 380). The increasing research evidence reveals that access to communications boost the income levels and makes the local economies efficient; thus improving the standards of living (Ewing (381). The mobile phone use has also fueled the growth of financial services in the global market. This is because many subscribers have nowadays started using mobile money transfer services. Hence, the mobile phones have extended the financial services to billions of poor citizens, who do not have acces s to the bank (Ewing (381). For instance, the M-Pesa services in Kenya, that was launched by Safaricom Company has enabled many clients to make money transfer effectively; thus contributing to economic growth. However, the mobile phone use in Africa differs from that of the U.S and Europe because it is widely used in developing nations for money transfer more than in the developed nations. This has encouraged many investors from developed nations to invest in poor nations. The local operators operating communal phone services for money transferring business

In the United Kingdom the big four supermarkets of Tesco, Asda, Essay

In the United Kingdom the big four supermarkets of Tesco, Asda, Sainsbury's and Wm Morrison have gained a steadily increasing - Essay Example In recent time some of the retail giants of United Kingdom like Sainsbury, Asda, Morrisons and Tesco have been accused of swindling the suppliers by paying them the bottom prices or finding some other way by which they can pressurise the suppliers to pay the cost of the unsold or perished goods. There are also other ways by which the suppliers are exploited that includes paying lower than the agreed price after the delivery of the order, delaying to pay them, make changes in the order at the last moment, making the suppliers to bear the cost, forcing the supplier to use certain specific expensive hauliers for delivering their goods and often ruining the supplier due to lack of cash flow. The supermarket retailers even pressurised the suppliers to pay for the shoplifted goods and making their profits to rise high, when they are expected to be lower. The study focuses on this issue. Supermarket competition Relentless rise in the supermarkets has given rise to the concern regarding thei r holdings over the suppliers and the customers. A research conducted by TNS Worldpanel, the market research group has concluded that the big four retail giants of UK Morrisons, Sainsbury's, Asda and Tesco holds almost three quarter of the grocery market that amounts to about 74.4%. Tesco is the leading supermarket that holds the biggest share. The report suggests that for every ?8 the consumer spends ?1 goes towards the business of Tesco. In 2004 it has been recorded that the retail sector of UK amounts to almost ?246bn, which is more than the amount if the economies of Ireland and Switzerland are combined together. This implies that the retail sector offers quite a significant amount (BBC News, 2006). (Source: BBC News, 2006) According to the reports of the All Party Parliamentary Small Shops Group, almost half of 278,630 shops in UK are managed and owned by a sole trader. These small local stores are losing their market because of the growth of the supermarkets that are gradually moving towards the convenience store format. As per the report of Association of Convenience Store for the last twelve months till June of 2005, 2000 independent convenience stores closed their operations owning to the growing competition of the supermarkets. The Office of fair Trading (OFT) has been investigating the two main issues firstly the competition that surrounds the worries regarding the competition in the supermarkets and abusing relationship between the supermarket and the suppliers. The OFT has claimed that there is no restriction on the grocery market, which prompts a widespread scorn from the action group and the local shops. OFT further states that there is no need of incorporating any type of reform in the ways the super markets are operating; though there are claims regarding application of bullying tactics by the four big supermarkets. According to the recent declaration of OFT there are significant indications regarding increase in the purchasing power of the cu stomer of the supermarket (BBC News, 2006). Area of Concern The corner and local shop areas are becoming the potential places for the growth of the supermarkets. The four big supermarkets face certain restrictive measures that pave the pathway for expanding their operations by following the convenient store format. This also helps the supermarkets to target the customers who are cash rich

Heritage assessment Essay Example for Free

Heritage assessment Essay Kizlik [2014] argues that the purpose of a learning objective is to communicate, and that a well-constructed behavioral learning objective should have little room for doubt about what is intended. Health professionals in designing educational programs to engage both patients as well as families, should be able to taper the task or objective to the specific patient and their family; for them to be able to explain what you taught them and for them to be able to demonstrate it. On the Euromed Info website, on Developing Learning Objectives. Retrieved from http://www.euromedinfo.eu/developing-learning-objectives.html/ [n.d.] state that â€Å"a simple and practical way of developing learning objectives is to start with the words, WHO, DOES WHAT, HOW and WHEN.† For the purpose of this exercise the learning objective will be for the patient and the family to be able to change an ostomy bag in a patient with a newly formed colostomy. It is important to find out from the patient and the family which learning styles work for them, example whether reading of pamphlets, one on one teaching or visual aids. Also the condition or ability of the patient to perform the task, e.g. is the patient strong and well enough to perform the task or are they too weak from being ill. In using the learning objectives cited above, WHO- will be the patient and family DOES- list the components needed WHAT-changing a stoma bag HOW – by performing task or stating how to WHEN- by discharge The Joint Commission on Accreditation of Healthcare Organizations [JCAHO] as cited on the Euromed Info website on Family Structure and Style, retrieved from [http://www.euromedinfo.eu/family-structure-and-style.html/] defines the family as â€Å"the person or persons who play a significant role in the individual’s life including persons not legally related to the individual. â€Å"How a family functions influences the health of its members as well as how the individual reacts to illness† retrieved from http://www.euromedinfo.eu/family-structure-and-style.html . In the light of this , having the family understand the rationale behind the treatment and steps on how to help the patient change this stoma bag will assist the  patient to be more confident in changing their stoma bag and also in dealing and coping with this new health change. REFERENCES http://www.adprima.com/objectives.htm http://www.euromedinfo.eu/developing-learning-objectives.html/ http://www.euromedinfo.eu/family-structure-and-style.htm

Scenario Of Family Business Management Information Technology Essay

Scenario Of Family Business Management Information Technology Essay A family business is a business in which one or more members of one or more families have a significant ownership interest and significant commitments toward the business overall well-being. In some countries, many of the largest publicly listed firms are family-owned. A firm is said to be family-owned if a person is the controlling shareholder; that is, a person (rather than a state, corporation, management trust, or mutual fund) can garner enough shares to assure at least 20% of the voting rights and the highest percentage of voting rights in comparison to other shareholders. Family businesses may have owners who are not family members. Family businesses may also be managed by individuals who are not members of the family. However, family members are often involved in the operations of their family business in some capacity and, in smaller companies, usually one or more family members are the senior officers and managers. Many businesses that are now public companies were family businesses. Family participation as managers and/or owners of a business can strengthen the company because family members are often loyal and dedicated to the family enterprise. However, family participation as managers and/or owners of a business can present unique problems because the dynamics of the family system and the dynamics of the business systems are often not in balance. PROBLEMS IN FAMILY BUSINESSMANAGEMENT The interests of a family member may not be aligned with the interest of the business. For example, if a family member wants to be president but is not as competent as a non-family member, the personal interest of the family member and the well being of the business may be in conflict. The interests of the entire family may not be balanced with the interests of their business. For example, if a family needs its business to distribute funds for living expenses and retirement but the business requires those to stay competitive, the interests of the entire family and the business are not aligned. Finally, the interest of one family member may not be aligned with another family member. For example, a family member who is an owner may want to sell the business to maximize their return, but a family member who is an owner and also a manager may want to keep the company because it represents their career and they want their children to have the opportunity to work in the business. . For example, if a family needs its business to distribute funds for living expenses and retirement but the business requires those to stay competitive, the interests of the entire family and the business are not aligned. Finally, the interest of one family member may not be aligned with another family member. For example, a family member who is an owner may want to sell the business to maximize their return, but a family member who is an owner and also a manager may want to keep the company because it represents their career and they want their children to have the opportunity to work in the business. SCENARIOS OF FAMILY BUSINESS MANAGEMENT But balancing competing interests often become difficult in three situations. The first situation is when the founder wants to change they are involved in the business. Usually the founder begins this transition by involving others to manage the business. Involving someone else to manage the company requires the founder to be more conscious and formal in balancing personal interests with the interests of the business because they can no longer do this alignment automatically-someone else is involved. The second situation is when more than one person owns the business and no single person has the power and support of the other owners to determine collective interests. For example, if a founder intends to transfer ownership in the family business to their four children, two of whom work in the business, how do they balance these unequal differences? The four siblings need a system to do this themselves when the founder is no longer involved. The third situation is when there are multiple owners and some or all of the owners are not in management. Given the situation above, there is a higher chance that the interests of the two sons not employed in the family business may be different than the interests of the two sons who are employed in the business. Their potential for differences does not mean that the interests cannot be aligned, it just means that there is a greater need for the four owners to have a system in place that differences can be identified and balanced. SUCCESS OF FAMILY BUSINESS MANAGEMENT Successfully balancing the differing interests of family members and/or the interests of one or more family members on the one hand and the interests of the business on the other hand require the people involved to have the competencies, character and commitment to do this work. Often family members can benefit from involving more than one professional advisor, each having the particular skill set needed by the family. Some of the skill sets that might be needed include communication, conflict resolution, family systems, finance, legal, accounting, insurance, investing, leadership development, management development, and strategic planning. INNOVATIVE TRENDS IN FAMILY BUSINESS MANAGEMENT . There are three major trends among the most innovative family business management that together will have a strong impact on wealth holders and the providers to these families: Develop new sources of knowledge. Family business continuously gather practical information from a wide variety of sources. As a result, much of the information these families receive comes from providers of products and services, who have a commercial motive. To further complicate matters, products and advice are often bundled together, with free services subsidized by the revenues generated from other components of the package. Unsurprisingly, the most complex and/or illiquid offerings tend to have the highest embedded costs. Family business management increasingly supplement these sources of information through peering communicating with each other to compare experiences and solutions.At its best, this is a global exercise in which family business actively seek to learn from their peers around the world. Leading families recognize that local networks must be supplemented to ensure that they access more than a location-specific consensus shared by those who, for example, live in the same place, share the same social network, or rely upon the same sources of information. Unbundle, measure, and innovate. The most sophisticated family business recognize that products, platforms, and advice, are fundamentally distinct. They are creating customized solutions from select providers in each category, rather than accepting a bundled offering from a single source. This unbundling allows for more accurate measurement of the value provided by each component. This in turn allows family business management to see new areas of opportunity and to swap out only the individual components that are not working according to specific performance criteria. While trust remains paramount, the foundation of trust is shifting to be based on competence and track record rather than simply a personal relationship. The most enduring relationships are being built upon informed trust, which requires a clear understanding of the way a providers business works. Family business are increasingly focused on measuring inputs and outputs. This means that they are paying closer attention to the transaction costs of interm ediation and actively seeking to calibrate economic incentives to better align costs with value. This requires a nuanced understanding of the inner workings of products and services so that meaningful benchmarks and cross-comparisons can be established. The most sophisticated families consider both absolute and relative value, using peer-based benchmarks as an input to their evaluations. Pursue opportunities globally. The inputs that family business use to create their solutions increasingly come from all over the world, not just their home countries. This trend is a direct result of the two trends described above. Family business have both the means and the incentives to invest in understanding foreign markets and practices. The empirical case for doing so is strong, particularly when local knowledge can be applied to less efficient markets. In addition to globalizing their portfolios, family business increasingly seek opportunities from direct investments. Family business are pursuing returns through country-specific direct investments, such as real estate or private equity, which require a greater level of due diligence and commitment (and offer greater potential rewards). These investments are often made in partnership with other sophisticated private investors who have relevant expertise in co-direct investment or club investing arrangements. The pervasive changes underway in the family busin ess market reinforce each other. Increased knowledge leads to better analysis of a wider set of opportunities, and this allows investors to unbundle and measure, so that they can be more creative in devising comprehensive, global solutions. The more innovation that occurs in the market as a result of this creativity, the greater the additional knowledge creation and sharing.While the effects of this shift are now being felt. STRUCTURING OF FAMILY BUSINESS MANAGEMENT When the family business is basically owned and operated by one person, that person usually does the necessary balancing automatically. For example, the founder may decide the business needs to build a new plant and take less money out of the business for a period so the business can accumulate cash needed to expand. In making this decision, the founder is balancing his personal interests (taking cash out) with the needs of the business (expansion). ORGANIZATIONAL STRUCTURE Organizational structure defines the roles and activities required of people in order to meet the objectives of the business. The structure should also help people accomplish their own career and personal goals. Concern with motivation and communication should influence the organizational structure. In defining an organizational structure, the manager has four objectives in mind: (1)- division of tasks, (2)- coordination of efforts and tasks among people and enterprises, (3)- control over the way in which tasks are performed and (4)- flow of information. To accomplish these four objectives, the manager must decide the positions to be filled and the duties, responsibilities and authority attached to each position. PRINCIPLES AND CONCEPTS OF ORGANIZING Regardless of the specific characteristics of a horticultural business, some principles of organizing will be helpful. These principles have two uses. First, they are helpful in the actual design of the organizational structure. Second, they can serve as a check list for evaluating and improving the current organizational structure. EXCEPTION PRINCIPLE Someone must be available to handle the exceptions to the usual, i.e., someone must be in charge. When an employee or worker has a problem he or she can not handle, the organizational structure should provide for someone higher in the organization to provide assistance. DECENTRALIZATION Decisions should be pushed down to the lowest level possible in the organization. The more routine a decision, the lower the level in the organization where it should be handled. To illustrate, workers waiting each morning to be told what to do and where to do it can be a great waste of manager and worker time. Workers having a routine not requiring daily instruction, and workers being trained to handle with confidence decisions within their job descriptions illustrate decentralization. The objective is to overcome the waste of time stemming from too much centralization of decision making. Working managers rather than managed workers should be the goal. PARITY PRINCIPLE Decentralization requires delegation. With delegation comes responsibility. Authority should be delegated along with responsibility. To illustrate, assume the 18 year old son of the owner of a landscape firm has been given the responsibility of taking a crew of 3 people, each over 25 years old, to a landscaping site to plant 5 trees and 30 bushes. Further assume that the son has no authority to decide how hard it has to be raining before the crew stops working, no authority to correct a person who is digging the holes for the trees and bushes too deep and no authority to reward the crew member who is doing by far the best job. It is easy for the 3 workers to ignore the son if they have been accustomed to taking orders only from the owner and the owner has given the workers no indication of what authority the son does and does not have. SPAN OF CONTROL The span of control is the number of people a manager supervises. The organizational decision to be made is the number of subordinates a manager can effectively lead. The typical guideline is a span of control of no more than 5-6 people. However, a larger span of control is possible depending on the complexity, variety and proximity of jobs. The ability, experience and style of the manager also affects the desirable span of control. Finally, worker characteristics should affect the span of control. Well trained, motivated, experienced and satisfied workers require relatively little supervision. Owner/operators of family businesses often have span of control problems because of a me attitude. As a family business grows and people are added, the manager still may want everyone reporting to her rather than delegate responsibility and authority to a middle manager. UNITY PRINCIPLE Ideally, no one in an organization reports to more than one supervisor. Having more than one supervisor causes an employee relatively few problems if the supervisors have good coordination and frequent communication. However, supervisors typically lack the time for the necessary coordination and communication. Too often, employees get conflicting instructions and assignments. Employees should not have to decide which of their supervisors to make unhappy because of the impossibility of following all the instructions given them. OWNERSHIP STRUCTURE There is no one family or ownership structure; it have family businesses that are owned by one sole owner. When it comes to the second generation, most of them turn into a sibling partnership with very few but strong owners who hold large shares in the company. In the next generation, it come to a cousin federation and maybe one day we are a family dynasty like Haniel or Wendel. Each stage has its own problems. It must understand the stage you are at, asking the right questions and giving the right answers relevant to that stage. The transition from one stage to another creates a crisis because, in the next generation, you have different questions and you have to give different answers. If you understand that there is a crisis and find the right answers, this crisis may create a chance. Owner strategy starts, like every strategy, with some simple key questions: what is our vision, what is the mission statement we have as owner family. More specific questions for owner families include the following: who can become a member of the owner group. From whom can member groups inherit their shares  and to whom can they sell shares? How do we want to deal with in-laws and the next generation Emotions must be dealt with effectively when managing a family business and managing a family that owns a business. Successful families are families who are better at addressing emotional problems and then solving them. Values and aims must be clarified if any group wants to be successful. This helps prevent conflict when making decisions. Knowing the company goals and the family aims is important otherwise, a family cannot determine whether it is successful or not. In successful family businesses, strategies will change, but the values remain very stable over generations. BUSINESS STRUCTURE This is the business model follow. It often starts with the entrepreneurial stage and then it turns to a traditional and classical family business. There are several different business models and each family should address some essential questions when choosing the correct one. Do we want to be a more focused or more diversified owner family? How do we want to influence the business? Do we want to run it or just control it? Do we want only to act as owners and let outside people control it? How should we manage the owner family so that we maintain family unity and commitment? New Ideas We must formulate a family code that is sensitive to new membership values, aims and a changing business model. Family Education All the owners should know what it means to own a family business, and what  professional ownership means. Emotion-Added Value It is important to come together and have family days so that you have the chance to enjoy being a member of the group. Family Office You may want to start a family office and do family philanthropy together. FUNDS AND INVESTMENT STRUCTURE With a dedicated funds, investment and tax team, including lawyers with corporate, tax and trust experience, we are able to provide the targeted investment structuring advice on which family offices depend. leading investment managers and fund managers, to ensure that private investments are designed and structured to mitigate taxation and provide the greatest opportunity for returns. LEGAL RISK STRUCTURE Risks from many directions, including legal liability, risk of investment loss or devaluation, compliance failure, tax and property law change, security (this includes risks to property and person) family dissension, divorce and indiscretion. The mitigation and balancing of risk in all its forms is of paramount importance for many family business management. Wealthy families and family members are faced with many legal and investment challenges, and increasing regulatory scrutiny. These issues become more acute in the case of multi-generational families with members based in various countries who have international asset holdings Another key risk for clients is breach of confidentiality, especially in a world where the Internet means information anywhere is information everywhere.. It is possible to reduce such risks by the use of appropriate structuring and third party contracts but these measures should be taken when the office is established. If a breach occurs our Reputation Management team can help. . These include the offices of substantial international families with assets and family members in numerous countries, as well as more traditional families with large landed estates or entrepreneurial interests. Theses point should be consider: Conducting an audit of various substantial wealth-holding structures, to ensure they were watertight from a fiduciary and tax perspective. Undertaking a major review of the trust and asset structures of a large international family with international assets. One of the main purposes was to identify potential areas of risk for the family and take measures to safeguard against such risks going forward. CONCLUSION To conclude , we can say that this was the aforesaid explained report on innovative family business. Main facts that are dicussed in study are 1 meaning of family business management 2 current scenario 3 Type of structure for family business management 4 problems 5 innovative trends in family business management After studying all the above given study it is been very clearly understood that family business structure is one of the very common structure of business structure that is been used worldwide. As every business structure has its scenario, advantages , disadvantages, problems, and its new and emerging trends, it is similarly applied here. We can say that family business management is a trend that has been followed for years. Innovative method could be used for more flexibility in family business. RECOMMENDATIONS 1 overcome the internal dispute 2 proper engagement of all members 3 follow the structure that is bet suited to ones business 4 proper management 5 go as by the time. 6 properly implementing the strategy BIBLIOGRAPHY AND REFRENCES http//www.family-business-experts.com http//www.familybusinessmagzine.com http//www.businessweek.com/magazine.com Astrachan, J. and Shanker, M. (2003). Family Businesses Contribution to the U.S. Economy: A Closer Look. Family Business Review, Vol. 16, No. 3, pp. 211-219. Colli, A. (2003). The History of Family Business, 1850 2000. Economic History Society. Chua, J., Chrisman, J., and Sharma, P. (1999). Defining the Family Business by Behavior. Entrepreneurship Theory and Practice Vol. 23, No. 4, pp. 19-39. Davis, J., Pitts, E., and Cormier, K. (1997). Challenges Facing the Family Companies .