Phuket Beach Analysis Essay Example for Free

Phuket Beach Analysis Essay Statement of the Problem Should the management of Phuket Beach Resort accept the offer made by PlanetKaraoke Pub to set up an outlet inside the hotel or should the managementoperate a pub, Beach Karaoke Pub, by itself? II. Case Background Mike Campbell, General Manager of Phuket Beach Hotel is considering an offermade by Planet Karaoke Pub, a fast expanding company, which is looking for avenue in Patong beach area for setting up another outlet. The Board of Directorsof the establishment had previously rejected several old offers because it offerslow return on investment. The space was located on the second floor of the main building and was verymuch under-utilised. Planat Karaoke Pub offered to sign a four-year leaseagreement with the hotel for rending part of the unused space. It proposed topay:a. a monthly rental fee of 170,000 baht for the first two years; andb. thereafter, a 5% increment for the next two years. Planet Karaoke Pub required only 70% of the unused space measuring 3,000 sq. feet. This would allow the hotel to keep the remaining space for the creation of analley two years later. Mike Campbell is contemplating on creating a pub operated by the managementof the hotel itself since such establishments attract a lot of customers andtourists. Mike Campbell sought the assistance of Kornkrit Manming, the hotel’s FinancialController to review the offer from Planet Karaoke Pub and estimating revenuesand costs associated with an alternative project, Beach Karaoke Pub. III. Objectives With the given two alternatives on hand, this case aims to:a. ome up with a concrete recommendation to the board of directorsof Phuket Beach Resort of which of the two alternatives will offer a higherreturn on investmentb. determine if operating a pub in the hotel, whether by a third party orby management, will be a good investment on the part of the hotel. c. compute for the relevant cashflows associated with each projects? The 25% fear factor is applied on the projected annual net room revenuerepresenting 50% of the pub revenue – 50% from hotel guests. . Overhead expenses allocated to the Planet Karaoke Pub project amountingto 55,000 baht and 16% of sales representing salaries for the Beach KaraokePub project are considered irrelevant costs since these costs will not differbetween alternatives. Both are allocated costs. 5. The weighted average cost of capital is 10. 75% computed using 10%interest rate and 12% hotel owners’ cost of equity on its capital structureconsisting of 25% debt and 75% equity respectively. The cost of equity isassumed to be after tax. 6. All payments and inflows assumed to have been made at the end of theyear. The two projects have unequal lives: Planet Karaoke Pub to run for 4 yearswhile Beach Karaoke Pub to run for 6 years. 8. It was envisaged that the proposed pub would not affect the hotel’s futureexpansion plans. 9. The existing system ranked projects according to their average return oninvestment and payback period, regardless to the time value of money. 10. Similar development proposals had been rejected by the board because itrequired a long payback period. Other proposals were also discarded due toits low return on investment.

A Market Economy :: essays research papers

A Market Economy is the most efficient way of organizing economic activities. Millions of suppliers (firm) and consumers (buyers) make the markets. The suppliers and consumers sell and purchase goods that satisfy the wants of consumers and suppliers. Suppliers and consumers make rational decisions, respond to incentives and make tradeoffs. Over all trade makes everyone better off. (Mankiw) If one firm does not meet the wants of the consumer then they will lose their place in the market. Sales for most major retailers have risen this quarter, while others have fallen. The over all sales gain equals 7.9%. (Chandler) Sales rose because consumers are not bothered by threats of war. Also, they feel confident in current and future stability of the economy. The reason some retailers lost and most gained could be a number of possibilities: Prices might be too high for the consumer’s taste. Marketing strategies appealed to consumer’s tastes. Consumer’s expectation of future prices and economic stability. Consumer purchasing goods from some firms dropped. This could have been because of price increase of goods sold by retailers. Prices of goods rose because of cost increase due to the rise in Average Total Cost. Average Total Cost is Total Cost (everything that is given up to pay for good) divided by Quantity (how many goods the firm produces). This will be driven up by the Variable Cost (costs that vary with the quantity of output produced) because of inflation; wage increase and cost of goods needed to produce the final good. With some firms rising having their Average Total Cost going up and not increasing price, they will lose profit. Profit is attained by [Total Revenue (the amount a firm receives for sales of it’s output) divided by Quantity minus Total Cost divided by Quantity] multiplied by Quantity. Or, Profit will equal (Price minus Average Total Cost) multiplied by Quantity. If the Average Total Cost is larger than the price than the firm will face either raising price or with a short-term profit loss-shutdown. If profit loss is in effect with the firms long-run Average Total Cost then the firm will have to cut their losses and exit the market. (Mankiw) One reason why most firms did better than others is because of their Average Total Cost being lower than the price. They will be able to make the profit that is needed for the firm to survive. Another reason is because the firm has a strong marketing strategy. Marketing involves the gathering of useful data: what the consumer wants. When the data gathered and studied the information provided will let the firm know what goods to produce or what type of advertising to use. Advertisers will make it seem that the firm’s

Benefits of Hosting Olympics

The Olympic Games first started at Olympia in Greece in 776 BC. At that time, the games held were organized into festivals. There was a peace agreement called the scared truce between the city-states of Elis and Pisa. The reasons for hosting the Olympic Games at that time fall into three obvious aspects —— the honour of competing, the opportunity for trade and also, for peace. The reason why cities bid to hold the Olympics now are more complicated than in ancient time. But the main reasons remain the same. Cities may bid to host the Olympics to raise their International status by opening a door to the whole world, boost their economy, and enrich their culture and so on. All in all, cities want to promote the pace of their development by holding such a big event like the Olympics. Cities also have high expectations about the legacy benefits of the Games. Some of the main benefits will be identified later in this article. However, the benefits that are claimed in relation to hosting the Olympic Games are hard to measure. Those main benefits will be evaluated by taking the 2000 Sydney Olympic Games for instance. The legacy benefits of the Olympic Games can be indentified through four aspects —— political, economical, environmental and as the Olympic Games is a big sporting event, the last one should be sport. Politics had no place in the ancient games. The event was made possible in part by a truce that allowed visitors and competitors to travel to Olympia safely. During the truce there was no war, no executions, and no military action. However, although it is claimed that the modern Olympics have nothing to do with the political, many countries bid to host the Olympic Games for many political reasons under different circumstance. The best example to examine the relationship between sport and politics was the two German states during the cold war between 1945 and the early 1970s, in which period the two German states competed to host the Olympic Games in order to establish their own political authority. (Hughes, Owen, 2009). The 1972 Munich (Germany) Games was no doubt a good stage to show the rebuild Germany after the war. The Olympic Games are somehow a stage to relief the political conflicts and help the host cities change their International image. In terms of economy, it is the most important area when talking about the benefits of the Olympic Games. Cities always have high expectations to develop their economy after hosting the Olympics. Although the 1980 Moscow Olympics left a great amount of debt to the host city, the 1984 Los Angeles Olympic recovered people’s confidence. Matthewman (2009) indentified the legacy benefits of the Olympics’ economy benefits were included media exposure, employment and education training, infrastructure improving, increased trade, new investment and housing. However, the economic benefits of the Olympic Games are obviously much more than Matthewman described. There is a similar report printed by Price Waterhouse Coopers (2004) claimed that the long-term economy benefits would include: A. Improvement of city productivity (e. g. better transportation) B. Cultivate the city’s management ability to deal with International event. C. Olympic-related trade. D. Media exposure. E. New investment and more job opportunities. F. Training project. G. Tourism industry Another benefit of the Olympics could be the improvement of city environment. After the International Olympic Committee (IOC) make the environment the third strand in 1994, cities have made their efforts to deliver cleaner and greener Games. The eco-friendly event made the sustainable development theory spread all over the world. The Olympic Games make a good contribution to arousing the awareness of protecting our environment which could be beneficial to the whole human society. As the Olympic Games combined different sporting event, it is most closely related to sports in the host cities. Firstly, the sports infrastructure could be improved as cities want to hold the Olympics. This improvement can have a good impact on their athels’ training conditions, sports watching industries and provide their citizens of more sports sources. Secondly, a big sporting event can arouse people’s interest in sport. Additionally, it is good for promoting sport in the host cities as a guide to develop a health living style among its citizens. This is good for citizens’ health and their quality of life. To evaluate these benefits, the 2000 Sydney Olympic Games can be a good example. According to Cashman (2002), the Olympic Games would help the host cities acquire high international reputation in terms of politics. As Australia has a history of its nation conflicts between local residents and emigrations, the 2000 Sydney Olympic did not be supported by their citizens. However, the Olympic organisers came up with many ideas especially by designed a long-distance torch relay program in order to unit the people. This excellent torch relay project which included 11,000runners, successfully changed people’s attitude and built a conception that the 2000 Sydney Olympic is not just about Sydney, it is about Australia as a whole(Haynes, 2001). The economic benefits of the 2000 Sydney Olympic Games are hardly measured because there are so many potential areas for long-term impact. However, a 2001 Price Waterhouse Coopers report showed that Sydney has benefited from the 2000 Olympic Games a large amount of profits, which included about $3 billion from new business, $7. billion was injected for infrastructure and promoting business of New South Wales, more than $6 billion from tourism and opening their door to attract International business projects. (Matthewman, 2009) In other words, the Sydney Games had not only gained more investments and improved the city’s infrastructure; it also developed the industry of tourism and gave the ability to manage large projects. The 2000 Sydney Olympi c Games was the first time the idea of the â€Å"Green Games† was adopted. Sydney had come up with five strategies before bidding to host the Olympic Games —— save energy, save water, reduce rubbish, prevent pollution and protect the natural environment (Cashman, 2002). As the benefits on environment are difficult to identify in a short period of time, it is not likely to attribute the environmental improvement to the â€Å"Green Olympic Game† only. However, the eco-friendly idea will surely make great contribute to the city’s environment. People’s awareness was established after the â€Å"Green Game†, and it was becoming more and more popular that individuals started to take environment their own responsibility. Sport itself has obviously benefited from the Games. Firstly, the Olympic Games appeared to contribute to the sports infrastructure. Sydney had built the high-level sport facilities which combined technology and art to host the events. These sports infrastructures would improve the athletes’ training conditions and provide large sports events among counties as well. Secondly, the Sydney Olympic Games tend to arouse local people’s interest in participating sports activities. The Sweeney Sport Report 2000/2001 showed there was a significant increasing trend of sports on TV viewing. According to Haynets’s (2001) report, it is claimed that this raised participation might also lead to some other benefits, such as heath and economic. However, it is hard to know whether the citizens’ interests can last for a long time. To conclude, cities bid to host the Olympic Games for their better developments. The Olympic Games have a great impact on many areas of the hosting cities, which obviously are not restricted to the four aspects above. The benefits of host cities can gain from the Games are quite different and difficult to measure. The 2000 Sydney Olympic Games are a good example because it has won a high reputation for its successes. However, as there are always diverse proposals in different cities toward hosting the Olympics, it is important to have a detailed plan before both bidding and hosting the Games and reasonable expectations. Reference list Jill Hatnes(2001) ‘Social –economic impact of the Sydney 2000 Olympic Games’. International Chair in Olympic, Centre d’Estudies Olympics (UAB). 2001 from http://olympicstudies. uab. es/pdf/od013_eng. pdf Price Waterhouse Coopers (2004) ‘The economic impact of the Olympic Games’. European Economic Outlook, June, p. 18-19 Richard Cashman(2002) ‘Impact of the Games on Olympic host cities’. International Chair in Olympic, Centre d’Estudies Olympics (UAB). 2002 from http://olympicstudies. uab. es/lec/pdf/cashman. pdf Richard Matthewman(2009) ‘Economic impacts of Olympic Games’. July, 2009 from http://maasterpieces. com/Documents/Economic%20Impacts%20of%20Olympic%20Games. pdf R. Gerald Hughes, Rachel J. Owen (2009) ‘The Continuation of Politics by Other Means’: Britain, the Two Germanys and the Olympic Games, 1949–1972’. Contemporary European History, 18(4), pp. 443-474.

Mass Media And Its Effect On Society - 852 Words

People are being depression and reflecting action in real life due to effective of mass media. Media has a power that can everyone has the same right and opportunity to access the information and enjoy their life. Teenagers are the most effective group of people because they can access and explode new technologies, creatives, curious, and proactive. Therefore, they are putting themselves in danger by performing challenge pictures or extreme dangerous things to be famous. People always attractive by beautiful things; therefore, being eye catching faces, stylists, and creatives are easily catch people’s attention. With the flowing of mass media, people are doing more and more crazy things to become famous and popular. For instance, taking selfie pictures and post it Facebook is not the smart way to be famous. Some people want to challenge others and themselves by taking extremely mind freaking pictures such as standing on the top of highest building even in the thunder acceptor. They are not only facing with strong winds, cold weather, and death. If they miss holding the handle but carrying the phone, they will fell down. Not every pictures can be post on social network it also have exception. For example, in the independent e-newspaper of England, an Australian named Chantelle has been stolen about 500 dollar after posting a selfie with the winner ticket of lottery. One of her friends on Facebook took her money in fifteen minutes. That is not good news for people who love toShow MoreRelatedThe Effects Of Mass Media On Society861 Words   |  4 PagesWhere do we get our information in society? How do we know what is true information from false information? Mass media, including T.V, Radio stations, newspaper has taken over the minds of people in society. 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Eventually, the late 19th century throughout the 20th century, broadcast media provided easier access for entertainment, political issues, and current events gathering families aroundRead MoreEssay on Effects of Mass Media on Society1650 Words   |  7 PagesIn contemporary society, people are strongly influenced by mass media. Although traditional television watching and newspaper reading are no longer as popular as before, people spend more time in front of computers listening to music and radios, reading news and information, interacting with other people in social network and watching television programmes and films. The developing technology of mobile phone allows people to do almost everything they can do with the computer. Nowaday, people areRead MoreThe Effects Of Mass Media And Communication On The Society1674 Words   |  7 PagesMedia Message Introduction Behavioral sciences play a central role in figuring out the likely effect of mass media and communication in the society. Different theories and approaches are used to figure this out. This study refers to the Uses and Gratifications, and Cultivation theories to consider the effect of the media article below on individuals. The uses and gratification theory argues that consumers of a given media uses this media to satisfy and fulfill specific desires and needs. On the