Energy and Human Beings in Ancient Times - 2535 Words

Introduction Energy and human beings in ancient times: In ancient times human muscles and animals were the primary source of energy. Man utilized this type of energy into his daily life activities by producing more work with least amount of human effort and time. So this form of energy was used in preparing weapons and other human controlled hearths to change the form of other metals for its use. Energy can be transformed from one form to another that can be either used for beneficent or destruction purpose. Greeks also completed their energy requirement from sun light. The ancient Greeks used the solar energy not only for domestic purpose but they used it as a weapon of mass destruction. They used great mirrors on their harbor to reflect the sunlight on enemy wooden ships to burn their sails. Form Of Energy : Energy is defined as â€Å"ability of body to do work† is called energy. Energy can be measured in the following units. †¢ Calorie †¢ Kilo Watt †¢ Joule †¢ The types of energy are given below. †¢ Kinetic Energy †¢ Potential Energy †¢ Chemical Energy †¢ Light Energy †¢ Nuclear Energy †¢ Solar Energy †¢ Wind Energy Kinetic Energy: Kinetic energy can be defined as †Energy possessed by an object due to its movement† is called kinetic energy. Every moving an object has kinetic energy. When ball is moving in air it hasShow MoreRelatedWhat Does Gods Image?1314 Words   |  6 Pagesconcerning God fitting into humanity’s sexual beings; as this debate continues to meander into space and time. In Part I, an endeavor proceeds to identify with how God’s Image could conceivably persist as being connected to people’s sexuality. In viewing Biblical teachings, the text informs us that God created male and female in His own image (Gen 1:27). 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The Failure of the 1848 Revolution Free Essays

The revolution of 1848 was one of the noisy and bloody one and spread almost allover the Europe. There were three major reasons for the 1848; economic crisis, the emergence of liberal political activity and the tendency to the right. France was the one of the countries that broke out from the revolutionary fighting. We will write a custom essay sample on The Failure of the 1848 Revolution or any similar topic only for you Order Now This essay will give information about the 1848 revolution and its failure. The 1848 revolution was more wide and vicious than the 1830 revolution as it has includes struggles between old with new and also new with new. The 1848 movements first arose in France as after the 1830 movements, socialism was gaining power; the republic supporters were increase, therefore society affected by polarization. Democratic structure was needed in order to balance the polarization whereas a bedlam was control the society because of the hard work conditions and economic crisis. â€Å"The year 1846 witnessed a severe famine-Europe’s last serious food crisis. Lack of grain drove up food and other prices while wages remained stagnant, thus reducing consumer demand.With consumers buying less and less, profits plummeted, forcing thousands of industrial workers out of their jobs. High unemployment combined with high prices sparked the liberal revolt. † The year1848 was a time period marked by a moderately liberal state which was controlled mainly by the educated elite which greatly put the middle and working classes out of action. Under the severe conditions of the year 1848, the middle class and bourgeoisie demanded; the right to vote, the extension of the political veins and the freedom of speech and thought.However, the king Louis-Philippe had not sympathy. On 18 February 1848, French revolutionists decided to assembly a meeting in France, but, the government was cancelled it one before from its date and as an answer middle class poured to the streets. As a result of non-suppression of the middle class by the military forces, government had no choice but to negotiate, however, even that sacrifice did not enough for the revolutionist and the rebel was expanded. King Louis-Philippe fled to England and the demonstrators proclaimed the Second Republic on February 24th.However, that did not cured the crisis and unemployment even made it worst. Under those circumstances, the search for past and authority was occurred and France was slowly getting close to right again. Through the aspiration of the name Napoleon, his cousin Louis Napoleon came out and won the elections with caused a birth of a kingdom under the guise of republic which may be considered as the result of the 1848 revolution; â€Å"abolishment of monarchy†. Immediately after, objections again arose from â€Å"French Left† which was rapidly suppressed.In a while, in 1852, Louis Napoleon to call himself as emperor and established a two wings assembly which was unnamed dictatorship of Napoleon 3rd. The era of 1848-1852 is a period of arbitrary enforcements, improper personal profits and lust of luxury. That is one of the reasons that the 1848 revolutions was a failure. The 1848 with its main features could be accepted as failure which is related to bloodthirsty of revolutionist; majority of society were pleased the end of the 1848 with achievement of peace.In addition to that, the 1848 was not successful for revolutionist, however, that would accepted as loss of power for the right wing; Metternich was not in charge in Austria, Hungarian rebellions†¦ etc. The revolutions probably failed due to lack of organization. In Austria, for example, the revolts in Prague, Vienna, and Budapest maintained no communication among them, allowing the Austrian army to attend to each in isolation, without a united front. Finally, the return of conservative and reactionary forces was probably due to the middle class.Another reason why the revolutions failed was because moderate liberals of the middle class feared the radicalism of the workers, preventing any type of lasting alliance. Therefore, when radicals took control of the revolutions in Paris and in Eastern Europe, the middle class liberals turned their backs, preferring absolute rule and law and order, to the uncertainty of radical revolution.REFFERENCES -Encyclopedia of Revolutions of 1848, 1 November 2005, http://www. ohio. edu/chastain/introduc. htm -French Revolution of 1848, 17 December 2010, http://en. wikipedia. org/wiki/French_Revolution_of_1848 How to cite The Failure of the 1848 Revolution, Papers

Impact of Change on an Organization case study of DHL Organization

Question: Discuss about the Impact of Change on an Organization case study of DHL . Answer: Introduction As the proverb says, the only constant thing in this world is change applies to every aspect of work. If the organization does not implement change, it will not be able to perform well and it would not be able to compete with the competitors (Langley et al. 2013). It is up to the companies to implement the changes as per the need of the organization and the need of the external market (Paulsen et al. 2013). DHL is one such organization that has implemented the change in the organization and has faced certain issues. The report will take into consideration the changes that have been taken into consideration the changes that have been taken into consideration by the organization. The operations of DHL are present in 220 territories and countries (Dhl.com.au 2017). They have employee strength of 350,000. They are ready to cater to the needs of the customers as far as various logistics needs are concerned. The report will evaluate the issues faced by the organization while they are implementing the changes. It will further assess the reason for the change and the feedback of the employees regarding the change. Finally, the best strategy that will help in managing the changes will be discussed in the report. Identification and introduction of change DHL is famous for its on-time delivery and its reach all over the world. However, recently the company has been facing issues with the records that are being kept over the computer. The moment a package is received, it is updated over the computer from every office. It helps the company to keep a track of the package as well as it becomes easier at the end of the month or in the weekly check up of the business. Even though the records are been kept daily, yet some records were found missing for two weeks consecutively. The records were later retrieved from the hard copy that is being stored after an order is being received and the franchises deliver them to the main office. As the hard copies cannot be dependent and the soft copy records were more easier, the organization thought of carrying out an investigation. The symptoms that showed that something is wrong are the missing records of more than thirty orders. The organization tallied the date of receiving the package along with the employees who were being given the duties of maintaining the order. In addition to this, the computers that were used to keep a record of the data ere also being checked. After a thorough checking and analysis the records, the actual cause of the issues was being found. The main cause of the issue was fault of the employees as well as the fault of the machines. It has been seen that the fifty orders could not be recoded were mainly because they were being handled by the employees who are approaching old age. Due to the changes in the work environment, a number of changes have been brought about by the organization (Cameron and Green 2015). The main changes that have taken place in the organization are with the technology. They have constantly upgraded technology so that work could be done in a faster manner (Hayes 2014). They have to keep a check on the growing competition and to serve the customers well, up gradation of technology was found to be the best way to keep track of the competition. However, while upgrading the technology, they did not keep in mind that the employees need to be trained about the use of the technology (Frankland et al. 2013). Especially, those employees who are aged and might not be well acquainted with the computers neede d to be trained (Goetsch and Davis 2014). Current organizational conditions To make the employees learn about the new technology, DHL has to bring in certain changes in the organization. They have to change the systems into simpler ones so that the employees could easily use it as well as train the employees to use the complicated system (Hornstein 2015). Eventually, they could bring the changes in the organization. The main idea for changing the system and training the employees gradually is to make the employee aware of the technology. Prevention is better than cure is one such idea that has been applied in the organization. Motivational atmosphere The older employees were motivated as they would be saved from making any mistake (Verhulst and Lambrechts 2015). They were getting confused with types of computers and were not able to understand the constant updates in the operations of the computers. They were trying hard to be well acknowledged with the technological operations in the organization, but they were making mistakes that were costing the company huge amount of loss. Especially, after the discovery of the mistakes in the organization, they have started feeling inferior (Hamraz, Caldwell and Clarkson 2013). They were not being able to perform well in the organization (Rock 2014). They served the company for a long period and have helped the organization during the time of emergency. It was the duty of the organization to keep the employees motivated so that they are able to perform well in the organization. As the older employees are working in the organization for long, they used to help the senior management for taking any kind of decision. Change technologically is helpful for DHL but it should also keep in mind different kinds of employees who are present in the organization (Khattak, Latif and Lee 2013). However, they need to bring the change so that employees understand the change and then use the change in the organization (Parker et al. 2013). Resistance to change There is a huge chaos in the workplace as the employees were not ready to degrade or settle for simple system (Della Torre and Solari 2013). Especially the younger employees were resistant to the change because they were always interested in learning something new (Krger 2017). The younger employees were not ready to comply with the issues faced by the older employees. The younger employees were more tech savvy and felt that if the systems are being changes then it will slow down their work. They were not ready to understand the issues that the older employees were facing. They were not even ready to take time to understand the issues of sudden changes in the organization. Hence, it can be said that the younger employees do not understand the idea of teamwork and the way working in a team helps the organization to get proper recognition in the market (Cummings and Worley 2014). The younger employees were concerned about themselves and they are interested for the career development of the individual rather than on the team. This increased the issues among the organization, as the younger employees were not ready to change their course of work (Pan? 2013). There was a clash of interest between the employees based on their age and experience (Holt and Vardaman 2013). Another factor that was making the younger employee go against the change was that their payment might be reduced, as they will under the training (Jacobs, van Witteloostuijn and Christe-Zeyse 2013). In addition to this, the older employees were the ones who have to go for the training. The younger employees have started feeling that they have to take up the jobs of the older employees in the organization. They have to fill up their space while the older employees as they will be under training. According to the younger employees to work more but the payment will be the same (Jansson 2013). Factors providing pressure for change The competition outside the organization and the constant pressure to make the employees at par the requirement of the external market has helped the organization to instigate the change in the organization (Paulsen et al. 2013). The earlier change that was made in the organization was also due to the demand from the external market (Langley et al. 2013). The second change where the systems will be changed and the employees will be trained will also be done for the external environment. However, the internal factors are also important for the organization as far as recent changes are concerned (Cameron and Green 2015). The employees should feel connected with the organization so that they can perform better. In this situation, the older employees were not feeling connected with the organization, which in turn is affecting the work of the organization (Hayes 2014). Due to the mistakes made by the employees, the organization is gaining a bad name in the market. The stakeholders involved and their likely reactions The stakeholders who are involved in the business are the customers and the financial organization (Frankland et al. 2013). The financers are helping the organization with monetary help and hence, they would be looking for proper business of the organization. The financers might be skeptical with DHL for making the process simpler as they might feel that they will gain lesser business from company (Goetsch and Davis 2014). However, when they will see that it will help them in gaining better business with the help of the training, they are likely to support the change. The customers will also be at loss if the records are not being kept properly (Hornstein 2015). Thus, if the customers come to know that the training will help in better delivery of services, they will also support the change. They would not mind the temporary glitch in the services in the company if they were assured of better services in the future (Verhulst and Lambrechts 2015). Implementation of change To implement the change in the organization, it is up to the leaders of the organization as well as the organization as a whole who would decide the way the changes should be brought in an organization (Rock 2014). To implement the changes in a manner so that it calls for maximum amount of cohesion and minimum amount of resistance, Kotters eight-step model of change management could be used in the organization. Figure 1: Kotters eight-step model of change management (Source: Hamraz, Caldwell and Clarkson 2013) Implementing the Kotters eight-step model of change management will be the best strategy that an organization can use while they are bringing a change in the organization. However, the leaders have the most important role to play when it comes to implementing a change or applying a model (Khattak, Latif and Lee 2013). The main issue that DHL was facing was problems between the employees. The earlier change has been done in haste by DHL and it is getting the negative consequences. Hence, it would be intelligent to implement the next change in a systematic manner as explained in the model. The older employees are facing issues to use the computers that have been upgraded to a great deal (Parker et al. 2013). On the contrary, the younger employees are enjoying the upgrading and working as per the requirement of the organization. DHL has not thought of the issues they will face while they were upgrading the systems. They have thought of training the aged employees in the organization and degrade the systems for the time being. They will gradually upgrade them, as the aged employs will get the training. The younger employees were oppose to the idea because they feel they will be responsible for doing the work of other employees while they will be training period (Della Torre and Solari 2013). The younger employees are still not are of the positive side of the decision. The leaders will be responsible for creating urgency, forming a powerful coalition, creating a vision for change, communicating the vision and empowering the action at the initial stage (Krger 2017). The younger employees have to understand the importance of change and they might face even worse consequences if they do not implement the change (Cummings and Worley 2014). Some of the aged employees will retire after some months. If they are not able to understand the operations well, the younger employees will have to rectify the mistakes when the employees will not be there. If the aged employees are not able to understand the functions of the computer well, they will make mistake and it will eventually affect the business of the organization (Pan? 2013). If the organization will not be able to get good business, it will in turn affect the pay scale of the employees (Holt and Vardaman 2013). In addition to this, the aged employees have more ideas regarding the functionalities of the organization than just the computers. Computers are used to make the work faster and easier. The aged employees know the issues tan have been faced by the organization and have an idea about the ways to get out of those issues (Jacobs, van Witteloostuijn and Christe-Zeyse 2013). Hence, ignoring the knowledge of the older employees just because they are having problems in operating the computers will not be right (Jansson 2013). Once the younger employees will be able to look into the matter other way round, the issues of the company will be reduced (Paulsen et al. 2013). They will be able to get quick wins as the problems will be less when the aged employees will learn (Langley et al. 2013). Both the younger and aged employees will be able to build on the change and the together they will be able to make the changes stick for the betterment of the organization (Cameron and Green 2015). Conclusion After going through the case study of DHL and the issues that the company is facing, it can be said that any issue that should be brought in an organization should be done in a steady and systematic manner. The organization has earlier implemented a change, which was done in haste. The computers were upgraded without training the aged employees. As a result, they started making mistakes while keeping a track of the changes. The organization decided to degrade the technology and train the aged employees accordingly. They will then gradually upgrade the systems. The younger employees of the organization were against the idea as they felt that it would slow down their work. In addition to this, they felt that they would have to extra work while other employees will be working. The Kotters eight-step model of change management found to be best suited for the organization to make the younger employees understand the importance of the change. The leaders will have a major role to play to make the employees less resistant to the change. It has been concluded that they should be made to understand that once the aged employees make the mistakes, it would affect the business of the organization. Once the business will be affected, it will affected the pay scale of the employees. In addition to this, the aged employees have more knowledge in solving bigger issues and if the younger employees work with the older employees, they will able to gain knowledge for surviving in the future. References Cameron, E. and Green, M., 2015.Making sense of change management: a complete guide to the models, tools and techniques of organizational change. Kogan Page Publishers. Cummings, T.G. and Worley, C.G., 2014.Organization development and change. Cengage learning. Della Torre, E. and Solari, L., 2013. High-performance work systems and the change management process in medium-sized firms.The International Journal of Human Resource Management,24(13), pp.2583-2607. Dhl.com.au 2017.DHL | Australia | English. [online] Dhl.com.au. Available at: https://www.dhl.com.au/en.html [Accessed 3 May 2017]. Frankland, R., Mitchell, C.M., Ferguson, J.D., Sziklai, A.T., Verma, A.K., Popowski, J.E. and Sturgeon, D.H., Applications In Internet Time, Llc, 2013.Integrated change management unit. U.S. Patent 8,484,111. Goetsch, D.L. and Davis, S.B., 2014.Quality management for organizational excellence. Upper Saddle River, NJ: pearson. Hamraz, B., Caldwell, N.H. and Clarkson, P.J., 2013. A holistic categorization framework for literature on engineering change management.Systems Engineering,16(4), pp.473-505. Hayes, J., 2014.The theory and practice of change management. Palgrave Macmillan. Holt, D.T. and Vardaman, J.M., 2013. Toward a comprehensive understanding of readiness for change: The case for an expanded conceptualization.Journal of Change Management,13(1), pp.9-18. Hornstein, H.A., 2015. The integration of project management and organizational change management is now a necessity.International Journal of Project Management,33(2), pp.291-298. Jacobs, G., van Witteloostuijn, A. and Christe-Zeyse, J., 2013. A theoretical framework of organizational change.Journal of Organizational Change Management,26(5), pp.772-792. Jansson, N., 2013. Organizational change as practice: a critical analysis.Journal of Organizational Change Management,26(6), pp.1003-1019. Khattak, A.M., Latif, K. and Lee, S., 2013. Change management in evolving web ontologies.Knowledge-Based Systems,37, pp.1-18. Krger, P.P.D.W., 2017. Change Management. Langley, A., Smallman, C., Tsoukas, H. and Van de Ven, A.H., 2013. Process studies of change in organization and management: Unveiling temporality, activity, and flow.Academy of Management Journal,56(1), pp.1-13. Pan?, L., 2013. Social efficacy by responsible change management.Systemic Practice and Action Research,26(6), pp.579-588. Parker, D., Charlton, J., Ribeiro, A. and D. Pathak, R., 2013. Integration of project-based management and change management: Intervention methodology.International Journal of Productivity and Performance Management,62(5), pp.534-544. Paulsen, N., Callan, V.J., Ayoko, O. and Saunders, D., 2013. Transformational leadership and innovation in an RD organization experiencing major change.Journal of Organizational Change Management,26(3), pp.595-610. Rock, D., 2014.Quiet leadership. HarperCollins e-books. Verhulst, E. and Lambrechts, W., 2015. Fostering the incorporation of sustainable development in higher education. Lessons learned from a change management perspective.Journal of Cleaner Production,106, pp.189-204.

6 Tips to Get Your Resume Mobile Friendly

6 Tips to Get Your Resume Mobile Friendly Gone (or at least dwindling) are the days when your resume would be received in the mail, processed by hand, and read by someone sitting at a desk. More often than not, resumes are sent digitally these days- and even more recently, recruiters are not just poring over your accomplishments while sitting quietly at their desks. They could be reading your resume on their phone screens while they commute or multitask. That means you need to update your resume to account for those who may be reading your resume on the go- but how?Here are some ways to maximize your resume’s mobile potential in order to get it mobile friendly.1. Peek at your resume on your own phone.Before sending it out, download and read the file on your own phone. That way, you can see what recruiters and hiring managers will see. If it looks crowded or otherwise difficult to read at a quick glance, it needs some work.2. Do some research before you make any changes.Surf some websites on your phone, especially ones that are text-heavy, like news sites. What works? What doesn’t? Do you notice anything in common among sites that are easy to read.3. Simplify the design.If you’ve got text boxes, columns, or other fancypants elements, consider dropping them. You want your resume to stand out, but you also want it to be appealing to a broad range of readers. To do that, content needs to triumph over form. Your accomplishments and skills can and should speak for themselves, and while bells and whistles are nice to have, you don’t want them to get in the way of having your resume speak to the right person.4. Go short and sweet.The average recruiter spends 6-ish seconds reading a resume. That alarming tidbit means your info has to be compelling, and it has to be clear. Keep this doubly in mind for mobile resume reading. You may think you’ve edited your novel of a resume down to a lean novella, but it may need to be edited even further so that you don’t have endless b locks of text in a mobile browser.Keep focusing on the highlights, and make sure you’re conveying info as succinctly as possible. For example, if you take 15  words to say that you have 10 years of experience, that’s a prime target for further editing. Use short bullets whenever possible.5. Forgo some formatting.Like with strong visual elements like graphs and text boxes, formatting should also be reviewed closely for need. Only use bold or italics when you want to emphasize a point- don’t use italics just for the heck of it, or to create visual interest on the page. Make the formatting reflect the content, not an arbitrary form.6. Keep only the most necessary elements.Adios, â€Å"Objectives† section. Goodbye and good luck, â€Å"References available upon request.† This editing for mobile clarity is a good excuse to get rid of sections that are taking up space on your resume without adding anything particularly helpful.These edits are good for m odernizing your resume, but also for general resume housekeeping. Again, you want your resume to be a laser-focused document of your most hire-able qualities. And making it so that it can be read, understood, and appreciated in all formats is a great way to move toward that goal.

Free Essays on Truth And Reconciliaton Commissions

Truth and Reconciliation Commissions Truth and Reconciliation Commissions (TRC’s) were enacted in order to determine how to appropriately deal with situations in which abuses of human rights violations have ceased, but societies are confused about how exactly to come to terms with events that took place. The main objective of these commissions is to investigate and determine how and why specific events transpired, especially in cases where people seemed to have just â€Å"vanished†. TRC’s also face the challenge of determining responsibility and assigning appropriate punishment. The forces that led people to commit such crimes must be considered. In the most serious cases, the crimes are attributable to absolutely indefensible behavior by people who knew exactly what they were doing. In other cases, crimes may have been committed by low ranking officials who were â€Å"just following orders.† Still, other crimes resulted from the effects of a heightened hysteria which can cause people to do things that they would otherwise never consider. This results in a no- win situation in which both sides are committing retaliatory crimes against one another. Reconciliation for past war crimes often results in a difficult situation. Victims of these terrible crimes find it absolutely impossible to simply forget these horrible acts and continue to live in a society where the perpetrators walk about as if nothing happened. For them, some measure, albeit any measure, of justice can likely be an important step in the healing process. However, if the victims of such crimes intend on holding everyone responsible for all crimes committed, then the result is likely to be a resurgence of emotionally charged fighting, rather than reconciliation and healing. Here strategies that combine a search for truth and justice, linked with amnesty and forgiveness are likely to be essential. Some argue against TRC’s for throwing salt in old wounds, or diggi... Free Essays on Truth And Reconciliaton Commissions Free Essays on Truth And Reconciliaton Commissions Truth and Reconciliation Commissions Truth and Reconciliation Commissions (TRC’s) were enacted in order to determine how to appropriately deal with situations in which abuses of human rights violations have ceased, but societies are confused about how exactly to come to terms with events that took place. The main objective of these commissions is to investigate and determine how and why specific events transpired, especially in cases where people seemed to have just â€Å"vanished†. TRC’s also face the challenge of determining responsibility and assigning appropriate punishment. The forces that led people to commit such crimes must be considered. In the most serious cases, the crimes are attributable to absolutely indefensible behavior by people who knew exactly what they were doing. In other cases, crimes may have been committed by low ranking officials who were â€Å"just following orders.† Still, other crimes resulted from the effects of a heightened hysteria which can cause people to do things that they would otherwise never consider. This results in a no- win situation in which both sides are committing retaliatory crimes against one another. Reconciliation for past war crimes often results in a difficult situation. Victims of these terrible crimes find it absolutely impossible to simply forget these horrible acts and continue to live in a society where the perpetrators walk about as if nothing happened. For them, some measure, albeit any measure, of justice can likely be an important step in the healing process. However, if the victims of such crimes intend on holding everyone responsible for all crimes committed, then the result is likely to be a resurgence of emotionally charged fighting, rather than reconciliation and healing. Here strategies that combine a search for truth and justice, linked with amnesty and forgiveness are likely to be essential. Some argue against TRC’s for throwing salt in old wounds, or diggi...

Discuss the impact of the global financial recession on our lives Essay

Discuss the impact of the global financial recession on our lives - Essay Example Most of the countries today are still under the influence of the global financial recession that occurred. Apart from affecting a nation as a whole, the global financial crisis had an impact on people at the individual level. Today, most individuals still suffer under the effects of the global financial recession that have persisted. Therefore, the global financial recession continues to have an impact on the lives of people today. A major impact of the recession is that many people lost their jobs. The economic recession had a negative impact on companies, including small and big companies. These companies were a major source of employment for many people. When the companies became bankrupt and others broke down as a result of the economic recession, they were forced to lay off their employees (McKibbin W. and Stoeckel 2009). Therefore, many people were faced with the problem of joblessness. Today, most companies still struggle to improve their financial health after the recession. For this reason, these employ few or no new employees, and they have reduced benefits for existing employees. Therefore, most employees continue to feel the pinch of the recession today. The global financial crisis also led to reduced access to credit. During the recession, many people were unable to access credit, including loans for their personal and commercial uses. This was mainly because the recession had a negative impact on the banking and financial institutions that provide credit. This therefore, put a limit on how fast individuals could grow their business and personal lives using credit. The recession forced financial institutions to raise their interest rates, and this discouraged borrowing. Today, since the effects of the global financial recession have persisted, the interest rates on borrowing in financial institutions have remained relatively high. Therefore, most people still feel discouraged to borrow, in order to expand their businesses or build homes, among

How Increase in Fuel Prices are Effecting the Airline Industry Essay

How Increase in Fuel Prices are Effecting the Airline Industry - Essay Example This paper illustrates that since the fuel cost is one of the major costs incurred by the airlines therefore, the continuous increase in the fuel prices for the last years has been very threatening for all airlines. The major impact of increase in fuel prices is reflected in the increasing operating expenses and operating losses of airlines. Even the airlines which have been able to survive during this turmoil through their aggressive hedging options could not make targeted revenues. The rise in fuel prices has not only influenced the airlines individually but it has also influenced the entire world airline industry. According to International Air Transport Association, the profits of airlines will reduce with the rise in oil prices. The net profit of airline industry will be $8.6 billion in 2011 as compared to $16 billion in 2010. Moreover, if the unrest situation in Libya and Middle East persists then oil prices will further increase which will negatively influence the airline indu stry. At individual level, all airlines have been incurring huge losses for the last few years. The United States Passenger Airlines Industry faced a total operating loss of $4.3 billion in first three quarters of year 2008. According to the report of Government Accountability Office, the price of jet fuel was the major operating expense in 2008 and the major contributor of loss in 2008. The fuel costs were 25 percent of the total expense of the airlines in the first three quarters of 2007 however, in the first three quarters of 2008, the fuel costs became 32 percent of the total expense. In the third quarter of 2008, when fuel prices increased by 60 percent as compared to 2007, seven smaller airlines stopped their operations and many entered into bankruptcy. Today, the rise in fuel prices is continuously harming the operations of airlines around the world. Air India, the national carrier of India is facing a loss of Rs. 600 crore a month. The monthly income of the airline is Rs. 1, 100 crore whereas; the expense of airline was Rs. 1,700 crore and the increase in fuel prices was the major factor for this loss. According to Bob Herbst of AirlineFinancial, if the fuel prices remain at $105 per barrel in 2011 then the major eight airlines of the United States will have to pay more than $9 billion on fuel costs as compared to 2010. Moreover, these airlines will have to improve their revenues to breakeven to avoid any operating loss. On the other hand, a few airlines are also reporting the profits despite the high fuel costs. Korean Air reported a net profit of $29 million in second quarter of 2011 as compared to a huge loss during the same period in 2010. The airline claims that despite the high fuel prices, the airline has been able to make profits in the second quarter of 2011. Interestingly, the increase in fuel prices has also provided significant benefits to few airlines like Southwest Airlines. Southwest Airlines had the advantage over its competitors because of its hedged fuel prices. The company had hedged 70 percent of its fuel consumption at $51 per barrel when other airlines were paying $135 per barrel. However, the airline will ultimately go under the impact of high fuel prices because in 2012, the airline will be having only 15 percent of its total fuel purchases at $63 per barrel.