Break-Even Point of Industry Essay Example for Free

Break-Even Point of Industry Essay 1. Airbus’ Interests Objectives First of all, the large and cost-efficient A3XX would be popular with significant growth in the air transportation industry. Worldwide passenger traffic would almost triple in volume by 2019, with fuel price rising in the future. Creating large and cost-efficient aircrafts, rather than increasing frequencies and building new routes, would be the long-term solutions to the problem of growing demand. Therefore, this project will be strategically significant. Secondly, Airbus wants to gain market shares in the VLA market and break up the monopoly of the 747, but it didn’t have a product to compete with Boeing’s 747. Compared to the 747, the A3XX provides more advantageous features which would attract passengers especially on the longer routes, such as more space per seat, four-engine plane, etc. The combination of increased capacity and reduced costs would provide superior economics. Airbus felt confident that capacity increases would eventually prevail. As we stated above, Airbus’s objectives are to break up the monopoly of the 747, to increase its market share in the VLA market, to gain enormous financial success and to be an industry leader. 2. Break-Even Point Market Demand Production will be able to reach full capacity from 2008, with order and delivery assumed on a stable level. During this period, the capital expenditure will be offset by depreciation in calculation of free cash flow, and RD will be included in the operating margin. The company, as assumed, will produce and deliver 22 aircrafts for the airlines which have ordered, with 6 in 2006 and 16 in 2007. Since $700 million would have already been spent before the decision, this amount of investment should be treated as sunk cost, therefore irrelevant to the NPV analysis. To break even, with assumed operating margin of 18%, Airbus should produce and sell about 40 VLAs every year since 2008, or 495 in total before 2019. Taking the estimated margin from Lehman Brothers and CS First Boston into consideration, total orders needed for break-even can range from 306 to 509 in 20 years. From the view of Airbus, the market demand for VLA, 1550 in years, is large enough to take this project. And it is pretty safe to launch the development since, even with lowest estimated margin, 38% of total market share will guarantee a break-even. However, Boeing gives a totally different perspective and a much lower forecast on potential market demand. Under this estimation, A3XX development will have little chance to make a profit. Airbus should take at least half a market on VLA to make that project fruitful. 3. Boeing’s Response Based on the analysis before, the VLA market is so promising that Airbus is very likely to launch the A3XX. Facing with this threat, the most important move for Boeing is to prevent Airbus from dominating the VLA market. Therefore, Boeing can cut the price of existing 747 product lines and produce 747 stretch as response to Airbus. Producing 747 stretch which may contain 550+ passengers wont be too costly for Boeing since is a modification over the current model, and that can powerfully compete with A3XX in the VLA market. Before the stretch version is market available, Boeing can offer a price cutting of the existing 747 which can not only divert sales away from A3XX, but also make A3XX project less attractive. Other alternatives might not fit. Firstly, fighting the A3XX on legal grounds (improper subsidies) will probably induce the revenge complain from Airbus, making Boeing itself to pay a large penalty. Secondly, to develop its own super jumbo jet is costly and maybe not profitable. What’s worse, in 1997 Boeing faced the first loss in more than 50 years, it’s better for Boeing to have a prudent stable strategy than an aggressive investing. 4. The Threshold To Launch We think Airbus should commit to build A3XX. The Annual Sales and Orders as of 1999 show that Airbus currently faces a disadvantage in competition with Boeing on almost every size of passenger aircraft. Worse is that, while Boeing pockets the market for VLA, Airbus even has no product to compete. Breaking the monopoly on this market becomes critical for Airbus, which is aiming to lead the industry. Strategic significance of A3XX makes this project worth an effort. Compared with the situation when Boeing launched its 747 development with 25 initial orders, the current 22 orders, with other 34 probable, is not a negative sign to commit the project. However, there would also be great risk in the new aircraft development. The possible poor market demand will make the project unprofitable. More important is that new A3XX should be sold quickly in early years to exploit learning curve effect on manufactory and seize market before Boeing reacts.

Rabies :: essays research papers

Rabies What is Rabies? Who gets Rabies? Rabies is a viral disease of humans and other mammals. It is most common in carnivores. The word rabies comes from the word "hydrophobia", fear of water. Rabies is a potentially deadly disease. There are many things you can do to prevent yourself from meeting rabies. The most important thing to do, is to be certain your pets have updated vaccinations. Your pets can first get their vaccinations when they are three months old. After that booster vaccinations must be given every one to three years according to your state and city laws. It also depends on the type of vaccination. Most people associate rabies with dogs, cats, raccoons, skunks, wolves, etc. The most common animals to have rabies are dogs, cats, and raccoons. Rabies cases in cats have outnumbered all other domestic animals every year since 1988. There was fifty-three percents increase in cat rabies between 1991- 1992. Most of the cases with cats have been unvaccinated strays. Even if your pets do not go outside, they should still be vaccinated. You cannot tell if you pet will accidentally get out or an infected animal will get in. Avoid close contact with any wild animal. Never feed, handle, pet, or take any wild animals in. Rabid animals will usually act in an abnormal way, have a foamy saliva around the mouth, and show a loss of hair or fur. If the animal is nocturnal, it may be out during the day. Rabid animals are usually very outgoing and aggressive. To keep wildlife away from your home avoid leaving pet food outside, and keep the lids on trash cans secure, or store them inside a garage or shed. You can prevent wildlife from your entering you home by sealing holes and screening chimneys. If a wild animal does get in, do not touch it. Call your local animal-control officer or humane society and let them remove it. The rabies virus can be transmitted in three different ways. These are through saliva, the bite of an infected animal, and by contact through the mucus membranes, or breaks in the skin. Symptoms develop in ten to fifty days after exposure to this virus. Symptoms in humans usually begin with depression, restlessness, fatigue, and a fever. This is followed by a period of excitability, excessive salivation, and convulsions, especially in throat spasms. The victim is unable to drink although he or she is extremely thirsty. Death from paralysis and suffocation follows within ten days. Once the symptoms of rabies have appeared, there is no possible treatment for the disease.

Explore the ways Shrek and the Practical Princess subvert Stereotypes!

Subvert means to go against something but conform means that it will fit in stereotypes. Stereotypes are things what other people expect to see for example, a stereotypical princess is pretty, has manners and waits for a handsome prince to come rescue her while modern woman have a job, they can look after themselves and are clever. Shrek and the practical princess subvert because they are both against stereotypes. The writer subverts the stereotypes because they wanted to show that modern people don’t have to wait for a handsome prince to come rescue them when they can stand up for yourself. Cinderella conforms original fairy tales, because it has the main features of a stereotypical princess and prince. This is because brave prince rescues the hopeless and beautiful Cinderella from her evil stepmother. The writer has done this to show that good people are always rescued at the end. In fairy tales such as Snow white, the handsome, riding prince comes saves the beautiful princess from dying. This reveals to the audience that, sometimes stereotypes can be right and it can help make the understanding of the movie more clearly. The movie ‘Shrek’ conforms stereotypes as well as subverting them because there is a fire breathing dragon in the story. This is because when Shrek the ogre was saving Princess Fiona, the dragon appeared and started breathing fire on them to stop them getting away. The writer had done this to show that dragons are a type of characters that is used for a dilemma when the prince is saving the princess. In fairy tales such as Rapunzel, there is a fire breathing dragon sitting beside the huge tower to prevent the prince from climbing up the princess’s hair and rescue her. This reveals to the audience that, the prince may have problems to save the princess for example slay the dragon first then rescue the princess. The story ‘Practical Princess’ conforms stereotypes as well as subverting them because the characters that are evil are ugly and the characters that are good are pretty. This is because Bedelia is really pretty and is good however Lord Quarp is a really fat and ugly which means he is evil. The writer has done this to show that ugly people means they are mean and evil and pretty people mean they are good. But the writer has also done this to make the audience sure of what type of characters they are and what side are they on. In fairy tales such as Cinderella, the princess is always the pretty and good one therefore her stepmother is the evil one and bosses the princess around. This reveals to the audience that sometimes stereotypes can be right about how you look will effect on people’s opinions. The movie ‘Shrek’ subverts stereotypes because Princess Fiona knows karate and also knows how to defeat someone. This is because Fiona was going to be taken away from Shrek by Lord Farquhar’s soldiers but Fiona didn’t want to be taken away so she used her karate to defeat all the soldiers. The writer had done this to show that you don’t have to wait for a prince to defeat them for you when you can stand up for yourself and use karate. In addition, the writer has done this to show some surprise and tense to the audience because it is not a stereotypical movie which people have already seen lots of times. In fairy tales, stereotypical princesses were to wait for a handsome prince to come rescue her. This reveals to the audience that you don’t have to wait for a prince to come rescue you because a modern woman can look after herself with karate. The story ‘Practical Princess’ subverts stereotypes because Prince Persian has a very long beard instead of Bedelia having long hair. When Bedelia got locked up in a tower by Lord Quarp because she refused to marry him, she found a prince fast asleep in the corner called Prince Persian. So, Prince Persian helped Bedelia get down the castle by climbing down his long beard. The writer had done this to show that boys can have long beards as well as girls having long hair. The writer has also done this to show some humour that boys can have really long beards that are the size of a castle. In fairy tales, such as Rapunzel princesses had really long hair for their brave prince to climb up the castle with. This reveals to the audience that, not only girls have long hair but boys can have long beards too. It also reveals, how long the princess or prince is been locked up in the castle by looking at how long their hair is. The movie ‘Shrek’ links with the ‘Practical Princess’ because Fiona and Bedelia were going to be taken away from greedy lords. Bedelia was going to be taken away from an evil lord called Lord Quarp so he could marry the princess and be the next King to take place on the throne. He could only do this when he marries a princess. However, Princess Fiona was going to be taken away by another evil, rich lord called Lord Farquhar and get married to her for the same purpose as Lord Quarp, to be king. The writer has done this to show that this world is home to many greedy and selfish people but also to show some tense to the audience that the princess is not going to marry a charming prince. In fairy tales such as Cinderella, there were no greedy lords, only wicked stepmothers. This reveals to the audience that, sometimes things might not go as planned and the princess might not marry the charming prince after all. It also reveals that sometimes stereotypes can be wrong. Altogether, I think Shrek and the practical princess subverts stereotypes of fairy tales such as Cinderella. This is because in the movie ‘Shrek’ Princess Fiona knows karate and how to look after herself. However in the story ‘Practical Princess’ Prince Persian had a long beard instead of Bedelia having long hair. The writers of these stories made it so successful that the viewer cannot help but to watch on. Also, the writer has made the story very clear but not that clear so that the viewer will know what happens next. They can just keep guessing ON!

Biology Prefixes and Suffixes -Osis, -Otic