Questions
US airlines – Case Study The United States Airline Industry The U.S. airline industry has long...

US airlines – Case Study
The United States Airline Industry The U.S. airline industry has long struggled to make a profit. Analysts point to a number of factors that have made the industry a difficult place in which to do business. Over the years, larger carriers such as United, Delta, and American have been hurt by low-cost budget carriers entering the industry, including Southwest Airlines, Jet Blue, AirTran Airways, and Virgin America. These new entrants have used nonunion labor, often fly just one type of aircraft (which reduces maintenance costs), have focused on the most lucrative routes, typically fly point-to-point (unlike the incumbents, which have historically routed passengers through hubs), and compete by offering very low fares. New entrants have helped to create a situation of excess capacity in the industry, and have taken share from the incumbent air- lines, which often have a much higher cost structure (primarily due to higher labor costs). The incumbents have had little choice but to respond to fare cuts, and the result has been a protracted industry price war. To complicate matters, the rise of Internet travel sites such as Expedia, Travelocity, and Orbitz has made it much easier for consumers to comparison shop, and has helped to keep fares low. Beginning in 2001, higher oil prices also complicated matters. Fuel costs accounted for 32% of total revenues in 2011 (labor costs accounted for 26%; together they are the two biggest variable expense items). Many airlines went bankrupt in the 2000s, including Delta, Northwest, United, and US Airways. The larger airlines continued to fly, however, as they reorganized under Chapter 11 bankruptcy laws, and excess capacity persisted in the industry. The late 2000s and early 2010s were characterized by a wave of mergers in the industry. In 2008, Delta and Northwest merged. In 2010, United and Continental merged, and Southwest Airlines announced plans to acquire AirTran. In late 2012, American Airlines put itself under Chapter 11 bankruptcy protection. US Airways subsequently pushed for a merger agreement with American Airlines, which was under negotiation in early 2013.

With the information above, addresses the following questions:

• With the aid of a clearly drawn diagram conduct a competitive forces analysis of the U.S. airline industry. What does this analysis tell you about the causes of low profitability in this industry? What are the principal advantages and disadvantages of using the five forces framework?   

• The economic performance of the airline industry seems to be very cyclical. Why do you think this is the case?   

• Given your analysis, what strategies do you think an airline should adopt to improve its chances of being persistently profitable?   

In: Operations Management

Cruise Company produces a part that is used in the manufacture of one of its products.

Cruise Company produces a part that is used in the manufacture of one of its products. The unit manufacturing costs of this part, assuming a production level of 6,000 units, are as follows: Direct materials $4.00 Direct labour $4.00 Variable manufacturing overhead $3.00 Fixed manufacturing overhead $4.00 Total cost $15.00 The fixed overhead costs are unavoidable. 6. Assuming Cruise Company can purchase 6,000 units of the part from Suri Company for $13 each, and the facilities currently used to make the part could be rented out to another manufacturer for $24,000 a year, what should Cruise Company do? a. Make the part and save $6.00 per unit. b. Make the part and save $2.00 per unit. c. Buy the part and save $2.00 per unit. d. Buy the part and save $4.00 per unit.

In: Accounting

You are an analyst working for the life cycle manager of a particular type of cruise...

You are an analyst working for the life cycle manager of a particular type of cruise missile. Periodically, the inventory of cruise missile engines must be certified and part of the certification requires testing a sample of missile engines then calculating a confidence interval for the true mean flight speed (μ in mph). Based on prior tests, it is appropriate to assume that the missile’s flight speed is normally distributed with known standard deviation, σ=20 mph.

Twenty-five cruise missiles are tested on a range with an average flight speed of?1=375 mph. You are tasked to calculate a 90 percent confidence interval for ?.

Fill in the table to help document your work:

sigma

n

y-bar

se(y-bar)

CI

alpha

alpha/2

Z, alpha/2

Half-width (margin of error)

Upper Bound

Lower Bound

In: Statistics and Probability

You are the CEO of a vacation cruise company that provides cruise service between Seattle WA...

You are the CEO of a vacation cruise company that provides cruise service between Seattle WA to Anchorage AK. To provide this service, you use two inputs: ships and attendants. The table below describes the combinations of inputs required to produce cruises service. Assume that a ship costs $1 million dollars and that each attendant costs $1,000. The ship can make multiple cruises (and note that currently, your company owns only one ship).

Fill in the remaining columns.

This is per cruise ATC and MC:

Ships

Attendants

Cruises

TC

TFC

TVC

ATC

MC

1

100

1

1

200

2

1

300

3

1

400

4

1

500

5

1

600

6

1

700

7

1

800

8

1

900

9

1

1000

10

In: Economics

In this module, you have reviewed acoustic and radio sensors. Although they are both passive sensors,...

In this module, you have reviewed acoustic and radio sensors. Although they are both passive sensors, they function very differently. Given what you have learned about these sensor types, identify the strengths, weaknesses, and several example applications for both. Which do you think has the most potential for early UAS commercial operations in America and why? Can you identify any needs for additional development to make these sensors more viable for widespread integration with UAS, particularly small platforms? Be sure to consider issues related to noise, interference, effective range, etc.

In: Physics

Archway Adventures has compiled data for 2017 on customer orders by region and product group as...

  1. Archway Adventures has compiled data for 2017 on customer orders by region and product group as follows:

North America

Europe

Rest of World

Total

Children’s Toys

5,400

2,700

900

9,000

Games

4,200

2,700

1,100

8,000

Other

1,300

900

800

3,000

Total

10,900

6,300

2,800

20,000

Let us assume that these are representative of the pattern of orders that they anticipate seeing in 2018.

  1. What is the probability that a randomly selected order will be from North America?
  2. What is the probability that an order is from North America and it is for a game?
  3. What is the probability that an order is from outside North America and Europe or is for something other than a toy or game?
  4. Among orders from the “rest of the World”, what is the probability it is for a toy?
  5. Among orders for toys, what is the probability that the order comes from the “Rest of the World”?
  6. Are the events “Toy” and “Rest of the World” independent? Explain.
  7. The rows of the table are mutually exclusive categories. How would our summary be complicated if some orders were for multiple products?
  1. 54.5% of Archway’s orders come from North America, 31.5% from Europe and the remaining 14% from the rest of the world. Among North American customers, 3% complained about late or lost deliveries. Similarly, complaints were received from 8% of European customers and 15% of customers from the rest of the world.
  1. Construct a probability tree that shows all combinations of where orders originated and whether customers complained. Label all branches in terms of what the event is on the branch and the corresponding probability (e.g., P(A), PA’), P(B|A), P(B’|A),…). Also determine the probability for each ending joint event (e.g., P(Europe and Complain)).
  2. Summarize all of the joint probabilities in a probability table.
  3. What percentage of Archway customers complained about delivery problems?
  4. Among those who complained, what percentage were from Europe?

In: Statistics and Probability

Respond to the following prompts in a post with a minimum of 250 words, then comment...

Respond to the following prompts in a post with a minimum of 250 words, then comment on at least TWO other posts. Respond to the posts indicating your agreement or disagreement with their position and why. Feel free to bring in additional references to these reply posts.

PROMPTS:

Many opponents of free trade use the following example to illustrate its negative effects: Joe Smith started the day early having set his alarm clock (MADE IN JAPAN) for 6AM. While his coffeepot (MADE IN CHINA) was perking, he shaved with his electric razor (MADE IN HONG KONG). He put on a dress shirt (MADE IN SRI LANKA), designer jeans (MADE IN SINGAPORE) and tennis shoes (MADE IN KOREA). After cooking his breakfast in his new electric skillet (MADE IN INDIA) he sat down with his calculator (MADE IN MEXICO) to see how much he could spend today. After setting his watch (MADE IN TAIWAN) to the radio (MADE IN INDIA) he got in his car (MADE IN GERMANY) filled it with gas from SAUDI ARABIA and continued his search for a good paying AMERICAN JOB. At the end of yet another discouraging and fruitless day he checked email on his computer (MADE IN MALAYSIA) then decided to relax for a while. He put on his sandals (MADE IN BRAZIL) poured himself a glass of wine (MADE IN FRANCE) and turned on his TV (MADE IN INDONESIA), and then wondered WHY he can’t find a good-paying job in America.

QUESTION: Should America encourage free trade with its trading partners or seek a more protectionist approach? Take a stand on this issue. It is not enough to argue BOTH sides of the issue. Support your opinion with good economic reasoning. Who benefits from your approach and who loses? Why? Include impacts on both American citizens and the citizens of the other countries with whom we (U.S.) trade. If your home country is outside the U.S. indicate the possible impact of your stand (favoring either free trade or trade protectionism) on your country. Some common search topics include employment, tariffs, quotas, and free trade agreements. Find a recent news article or editorial (past 12 months) that supports your point of view. Summarize the article, indicate how it supports your answer to #1, and include the URL.

EDIT:::::::: Can someone please help me out by explaining the prompt?

thanks in advance, Chegg friends.

In: Economics

1. Assume the rate of interest on USD deposits is 5% and the rate of interest...

1. Assume the rate of interest on USD deposits is 5% and the rate of interest on French deposits is 3% which of the following is likely to occur?

The USD will appreciate

the Euro will appreciate

the USD will depreciate

There will be no change to the exchange rate

2. The equilibrium real exchange rate is the rate at which   ?

the cost of domestic goods is equal to the cost of foreign goods measured in the same currency

the exchange rate that benefits exporters the most

the exchange rate that benefits importers the most

the exchange rate that ensures capital inflows of investment

3. The price of a T-shirt made in China is 40RMB. The price of a T-shirt made in America is $75.00 Assuming an USD:RMB echange rate of 1.5, what does this imply Americas real exchange rate?

The real exchange rate is overvalued, America will have a trade deficit

The real exchange rate is undervalued, America will have a trade surplus

The real exchange rate is in equalibrium.

American consumers would be better off buying good made by other americans

4.

If you had $100 invested in a German bank earing 3% interest and the USD was expected to depreciate by 5% what would be your overall expected rate of return on this investment?

3%

8%

5%

Impossible to tell without knowing the current exchange rate

In: Economics

The United States, as it began its long and successful growth in the early 19th century,...

The United States, as it began its long and successful growth in the early 19th century, consciously promoted domestic production through such activities as tariffs, Clay's American System, and many direct subsidies to railroads, canal companies, farmers (free land) etc. Today we view this blatant example of large scale and extensive import-substitution industrialization as having been very successful. Comment fully on this statement.

In: Economics

Deborah Smith wants to go on a cruise to celebrate her 60th birthday. She wants to...

Deborah Smith wants to go on a cruise to celebrate her 60th birthday. She wants to know how much she needs to deposit today in savings account that pays 6% interest, compounded quarterly, in order to accumulate $5,000 for the cruise in five years. She should use a table for the:

Multiple Choice

  • Future Value of an Ordinary Annuity of $1

  • Future Value of an Annuity Due of $1

  • Present Value of $1

  • Present Value of an Ordinary Annuity of $1

In: Accounting