An Examination of the Laws Guiding Aircraft Financing and Leasing - Free Essay Example

Sample details Pages: 9 Words: 2824 Downloads: 8 Date added: 2017/06/26 Category Finance Essay Type Research paper Did you like this example? CHAPTER 1 Introduction The airline industry became known in the 1920s but its full development started after the Second World War 11. During the 1950s, aircrafts began to be used for leisure trips as well as for business trips. Due to this expansion of global and domestic air transport system, the aviation industry has made the global economics and cultures cross-fertilized and caused markets to proliferate in number and to grow in size and wealth. Don’t waste time! Our writers will create an original "An Examination of the Laws Guiding Aircraft Financing and Leasing" essay for you Create order Recently, the aviation industry is an important part of growth to the world economy and must be careful in other for failure not to occur. For this growth to remain in the economy, a considerable amount of capital is needed to support the growth of airlines à ¢Ã¢â€š ¬Ã‹Å"Fleet sizeà ¢Ã¢â€š ¬Ã¢â€ž ¢. Aircraft finance could mean à ¢Ã¢â€š ¬Ã‹Å"Financing an Aircraftà ¢Ã¢â€š ¬Ã¢â€ž ¢. An aircraft is moveable and tangible as defined by article 7 of the Chicago convention of 7th December 1944[1]. Therefore, an aircraft is alleged to be asset gotten through finance, it has its value and earns good returns. According to Ronald Scheinberg in his book[2], it mentioned that the aircraft finance industry presently is in surplus of US$ 100 billion per year for financing new aircrafts[3]. There are different things that have to do with purchasing an aircraft for an airline industry. Before any purchase can made, firstly the price of the aircraft must be put into consideration which will t hen be negotiated between the manufacturer and the purchaser especially when there is a consideration on buying a large number of airplanes. Another aspect to consider is the financial institution or bank for funds and a life insurance company. Airlines hardly buy aircrafts with their own funds. Instead, they obtain financial assistance in the form of a loan from banks or financial institutions with a secured debenture like personal property or the use of the aircraft as collateral which will be called an equitable trust. In this recent time, it is common with airlines to lease their airlines either by rental or by a long term lease with the right to acquire. The book à ¢Ã¢â€š ¬Ã…“An Introduction to Airline Economicsà ¢Ã¢â€š ¬Ã‚ [4] à ¢Ã¢â€š ¬Ã…“stated that the legal instruments under which aircrafts are financed or leased varies in the range of secured debt and lease financing device signifies an almost continuous spectrum in the line between one and the otherà ¢Ã¢â€ š ¬Ã‚ . However, aircraft financing is a complex method which involves not only the final users of the aircraft but also the manufacturers, banks, private investors, trustees and institutional lenders. Moreover, aircrafts are expensive and moveable; even if the capital for purchase is available, a factor to consider is risk and flexibility which may affect the acquisition transaction. Aircraft leasing is an important part of financing and accounting of airline companies as regards size of capital as well as the difficulty of the classification. Because of its capital nature, majority of these airlines depend on other means of resources for the purchase of an aircraft. Leasing is a vital means used by airlines to take possession of aircrafts when they are facing financial difficulties. However, lease categorization and other related accounting treatments are critical to the airlines and the industry. An aircraft is not about its ownership but the use of it because an organizat ion may wish to purchase an aircraft for use but finds it unnecessary to purchase its legal title. Leasing is a way of acquiring economic use of an aircraft for a specific period of time without getting ownership interest for the asset. During this period, the lessor (owner) grants the lessee (borrower) to use the property for the stated period of time as agreed and payments will be made to the lessor[5]. An agreement between the lessor and the lessee allows the right to use an asset for an agreed period of time in return of payment which is known as a lease. This is sometimes referred to as hire or hire-purchase contracts or referred to as lease term. As a rule, a lease cannot be cancelled by either of the parties unless there are certain terms and conditions stated in the agreement contract that could prompt its cancellation (bankruptcy, death or non-payment). These lease agreements can state an earlier cancellation on a reasonable ground on a particular date with or without pe nalty for different predestined grounds. At the end of the lease agreement term, the lessee is meant to return the asset to the lessor, except the lessor provides an alternative means for the lessee to purchase the asset. A purchase alternative price is normally in formula base and may be optional for market value or small amount depending on the type of lease. Nevertheless, the problem question of this study is that, it will critically examine the financial aspect relating to leasing, how leasing should be considered during the acquisition process as against the purchase choice with special reference around the world. It will also look carefully on the types of leasing involved, operation or financing an aircraft, its limits, challenges in the airline industry, effects and implications of aircraft financing. 1.1Scope of study Aircraft financing has a wild range of study because it looks at all the aspects of financing which are mostly used around the world purchasing an ai rcraft. It will give us an insight of the financial institutions which provides the leasing facilities to acquire an aircraft. This dissertation will show methods of how different countries carry on with financing/leasing and the laws that also abides to financing and leasing. 1.2Aim of the Study The main aim of this research is to carry out a critical examination on the laws guiding aircraft financing and leasing in the aviation industry and offer unique contributions from a legal point of view. This research is to find out the best typical method to purchase an aircraft from the state of transaction through to the execution and documentation processes, conferring on the issues that arises and decision. It is suggested that a complete examination of the interrelationship between the law and practices of the typical provisions on aircraft operating leases has been rather an understudied area of aircraft finance law to date. For the outline, this dissertation will look at In troduction which is largely descriptive; the Aircraft Operating Lease and Finance which will be analytical and based on research, and will constitute by far the greater body of this study and then conclusion. Lastly, realities, challenges and ambitions will be added at the end of this dissertation suggesting out a form of aircraft operating lease for a second hand aircraft which is used by a leading commercial aircraft leasing company. This will differentiate in details from the second hand by other leasing companies but will explain the contents in the current state of the market. This addition will be precise in showing many of the points made and cross-references will be made where appropriate 1.3Research Methodology In other to get good resources and knowledge on this study, it will be important to study all the laws and materials which relates to this dissertation using Articles, Journals, and books. Using all these materials will support and make this research a bit e asy. This research will be based on critical thinking, reasonable, realistic, practical and full functional examination study using a wholly qualitative method. 1.4Data Collection All sources that will be used to carry out this research are secondary materials. As earlier mentioned the research is wholly a qualitative method. On the proposal, the literature review has shown that the secondary data are available in books, articles, journals and internet base using Westlaw, LexisNexis, Air and Space law journal and internet as a whole. Chapter 2 2.0Aircraft Financing In the Industry The airline industry is a vital industry that has contributed greatly into the entire economy of the world. The industry receives important attention from policy makers and analysts[6]. Aircraft finance is a special unit in the aircraft industry and its purpose consist of leasing, owning and sales of aircraft. This unit relies on a limited revenue sources. The cash flow gotten from this revenue will be used for the payment of operation and other relevant expenses of aircraft finance. Also, to service the interest of outstanding notes, related liquidity reserves and to issue any outstanding amounts to the owners of the beneficial interest certificates[7]. Aircraft finance is the ability to generate enough cash from its aircraft assets to repay the notes which depends on the rental rates it can get from the lease which the lessee agreed on the terms and the price it can realize on any aircraft sale[8]. But for aircraft finance to service th is notes, will depend on the stage of an aircraft finance expenses which includes its maintenance and any unforeseen liabilities. The ability of aircraft finance to produce incomes depends larger on how much effort put by the independent third party service providers as part of their duties and responsibilities. The controlling bodies or trustees have failed in their duties for the property and concerns of aircraft finance due to the terms and conditions of the trust agreement and the indenture. Controlling trustees depend on GE capital aviation services limited (GECAS), Phoenix American Financial Services Inc (Phoenix), the administrative agent, financial advisor and security trustee, Wilmington trust company and Deutsche bank trust company Americas (owner trustee) formerly known as Bankers trust company. In the past, Lehman Brothers Inc acted as an advisor to 3 different aircraft finance and became liquidated in September 2008. Afterwards, Credit Suisse securities (Credit Suisse) was appointed as a replacement to Lehman[9] The development of aircraft financing has been tested through different stages to get to its position. The banking sector support the initial stage followed by the equipment trust certificate (ETC), also the Enhanced Equipment Trust Certificate (EETC), then finally, the Asset Backed Security (ABS). Enhanced Equipment Trust Certificate (EETC) is a corporate bond that share features like credit trenching and liquidity facilities. But Asset Back Security is a different entirely because they are not corporate bonds but backed by leases and attached to a number of airlines instead of been attached to a single airline and this is based on the cash flow from the aircraft leases, loans and collaterals worth of an aircraft. 2.1The Legal Aspect of Aircraft Financing Generally, one of the major problems one may encounter when considering acquiring an aircraft is financing the transaction. Firstly, an airline will contact the manu facturer of an aircraft before purchasing in other to know the financial amount involved because they can be very expensive and this may lead to sourcing for funds to acquire one. Therefore, this will lead to borrowing of money to pay for the purchases then leads to the next stage which is the application process and the types of methods and documents that will be necessary before the acquisition is accepted[10]. 2.2Application Process To purchase an airline, getting a loan is required; therefore the same information needed in purchasing a real estate might be needed to acquire loan to pay for the aircraft. Before this application is made, there might be need to find out if one is credit worthy, if not the possibility of getting the loan becomes void. One important thing that must be done before starting an application process is to assess the credit score. Over the years, prospective creditors had access to a credit score number allocated to the people who applied for cred it until the current change in law because one could not access its own credit score but now they can[11]. Most lenders also get to know about current and potential credit earnings by putting a telephone call through to the employer to confirm the statement presented income tax return in order to get a good employment background history to make sure one is capable to generate income or have enough assets to back up a good loan. This leads to the types of loan documents one would need to felicitate one. Loan documents There are usually document that will be required when applying for a loan for the purchase of an aircraft. These documents are security agreement, promissory note and personal guarantees. Promissory Notes The most important document that must be signed is a promissory note and signing this note, means you must agree to pay the holder of the note the sum owed in addition with any interest as mentioned in the promissory note. One must bear in mind that the notes may be kept by a different holder who may be receiving the payment. The reason for this is because; in most cases the notes might be a negotiable instrument (that is it can be transferred from one holder to another). A promissory note shows the amount that you owe the holder and the interest rates as discussed between the borrower and the lender and this can vary from different buyer and seller agreements. Failure to pay this loan can lead to bad financial risk transaction. Security Agreement On security agreement, a promissory note is a lenderà ¢Ã¢â€š ¬Ã¢â€ž ¢s legal sign and evidence that one will pay a loan. However, this promissory note is not enough evidence for the lender that monies will be paid back. In other words, a show of assets (properties) must be added to make the promissory note valid. In considering this risk, the lender will want to get security interest over the aircraft. That is, failure to pay the loan back, the lender can make a claim on the aircraft. However, if the lender is a bank or a financial institution or funds are saved with either of them, the bank or the financial institution can have access to this money. But if the aircraft is repossessed by the lender, one can reclaim the aircraft back before it is sold. For this to be possible, it will amount to full amount paid to clear the debts of the loan and a substantial amount put down to run the loan. However, the attempt of getting back an aircraft might fail because someone else has pur chased the aircraft. When this is done, the difference between what was paid and the loan balance is called à ¢Ã¢â€š ¬Ã…“Deficiencyà ¢Ã¢â€š ¬Ã‚ . This balance is the money paid to the lender to finish paying the loan. It is necessary to note that any change in title to an aircraft may prompt the need to make full payment of the loan. And this type of loan is known as à ¢Ã¢â€š ¬Ã‹Å"Due on Saleà ¢Ã¢â€š ¬Ã¢â€ž ¢ clause. This basically means that one cannot transfer title to any other person or entity as long as the loan balances exist without approval from the lender. Guarantees If you make a decision to form a separate entity to have an aircraft, the lender may need the borrower and/or fellow members or shareholders or partners to attest and guarantee making the borrower personally responsible for the payment of the promissory note. The lender accepts this because in some cases, the entity formed may have no assets, credit history or earnings other than the aircraft. The guarantee will mention that if the aircraft owing entity defaults on the agreement signed, the lender will take the payments. Therefore, a personal guarantee is meant to be taken seriously or else the law will impose them, personal credit and assets will be at risk when one fails to comply with the agreement[12]. [1] à ¢Ã¢â€š ¬Ã‹Å"un appareil pouvant se soutenir dans là ¢Ã¢â€š ¬Ã¢â€ž ¢atmosphere grace aux reactions de là ¢Ã¢â€š ¬Ã¢â€ž ¢air. These same words were used in article 1 of the law of 27 June 1937 concerning air navigation. [2] The Commercial Aircraft Financial Handbook [3] The aircraft finance market for used aircraft is yet another multi-billion market. [4] William E.Oà ¢Ã¢â€š ¬Ã¢â€ž ¢Connor [5] Kieso Weygandt, Intermediate Accounting 9th Ed, Moyer,McGuigan and Kretlow, Comptemporary Financial Management,11th Ed [6] Bijan Vasigh, Reze Taleghani,Darryl Jenkins, Strategies for managing capital cost in Turbulent industry 2012 [7] Aircraft finance trust annual information statement, Dec 31, 2010 [8] ibid [9] Risk and uncertainties facing aircraft finance- Risk regarding note payments and liquidity. An effect of Lehman Bankruptcy on aircraft financeà ¢Ã¢â€š ¬Ã¢â€ž ¢s hedging strategy aircraft finance trust annual information statement for the fiscal yea r ended December 31, 2005. Also, aircraft finance trust annual information statement for the year ended December 31st, 2010 [10] Aircraft financing à ¢Ã¢â€š ¬Ã¢â‚¬Å" what you should know as originally appeared in finance, offshore à ¢Ã¢â€š ¬Ã¢â‚¬Å"summer 2011 [11] A credit score fall between 300 and 900 with 900 the largest possible credit score which borders on some criteria. Payment history (about 35% of the score); amounts owned (about 30% of the score); length of credit (about 15% of the score); pattern of credit used (about 10%of the score); type of credit used (about 10% of the score). Nevertheless, if oneà ¢Ã¢â€š ¬Ã¢â€ž ¢s credit score is 650 and above, then that amounts to a good excellent credit history and cannot come across any problem with the credit checks. But a score of 600-650 signifies average to a good credit history and this makes it possible in getting a loan at the going rates and if the score is below 600, there might be possible problems. [12] Raym ond C. Speciale, Aircraft ownership: a legal and tax guide (2003)

Summary Of Outliers By Malcolm Gladwell Essay

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Flvs Poetry Contest Essay Example For Students

Flvs Poetry Contest Essay On both copies print or type the division Minor or Senior) in the upper left hand ornery. No other identification should appear on the first copy. B. On the second copy only, place all following information in the upper right hand corner: Grade: Students Name: Students Full Address: (Street) Name Complete Address of Name : Teachers Full School District: CERTIFICATION: Also, on the second copy only, students must certify the originality of the poem and that it has not been copied in whole or part from any other authors work, including poems posted on the internet. This certification is required by the Manning contest (see below) and should be worded as follows: retire that the poem _(title) l _(written signature) is my own original work. Note: Any poems that do not follow the above requirements , format, and certification will be disqualified. Submission to this contest should be done with the understanding that announcement of the winners names, teachers, and schools may appear on the FSP website and in its newsletter. PRIZES: This year all winners in each division will receive cash awards (1st$25, 2nd$1 5, 3rd$10 and $5 for each of five honorable mention awards). Each winner will also have their poems printed in the Florida State Poets Associations Anthology 32 and will receive copies of the anthology as well as award certificates..

Performance management Essay Example For Students

Performance management Essay A local council has just received approval for 15 million from the National Lottery to build a new Arts, Media and Cultural Centre but it needs to find the matching capital Money for the project. It has also to find the annual running costs of 1 million for the new facility at the same sound as it needs to reduce its total Leisure and Arts budget by 5 million. How can performance management and review processes assist with this complex decision and ensure that effective delivery of the project if agreed?The local council has three main problems to resolve from this scenario. These are:1. Matching the capital money and running costs of the proposed project. 2. Significantly reducing the leisure and arts budget, the sector in which the proposed project is in. 3. Keeping all major interest groups internally and externally from the project, relatively content. However, the problems involving the interest groups are virtually impossible to resolve. This is due to peoples contradicting needs; this creates the task of catering for each individual group’s needs, which is unobtainable. Therefore, the council must take an interest in the most significant party, the public; this includes the implications of the other major problems. Performance management and review can be an aid to this project, by analysing the various options and solutions and deciding on the best course of action. Each of the three main problems may be divided into a list containing various sub problems, which create the overall problems. Each of these problems must be solved by prioritising in order of importance, in order to produce the most effective solution to the project. Performance management has been defined as â€Å"a strategic and integrated approach to delivering sustained success to organisations by improving the performance of the people who work in them and by developing the capabilities of teams and individual contributors: (Armstrong and Baron 1998). Another definition however is that performance management is the systematic design, collection, analysis and review of information. In order to manage there is a need to establish and quantify what may be managed and how. For the ability to use performance management within the project, it needs to be segmented into various sections that can possibly be measured over the duration of the project. The project has multiple objectives that need defining. These objectives are usually defined and the outcomes normally judged using the five E’s:Economy: The effective acquisition of inputs, largely a value for money concept. Efficiency: The ratio of inputs to outputs. The efficiency level will be increased if the output is consistent while input levels fall, or output is raised while input while input remains consistent. Effectiveness: The extent of goal acheivementEquity: Observance of criteria of fairnesss. This is probably the most significant condition for good performance. Electability: Political affirmation of good performance that will prove essential for survival. These five factors aid in providing parameters for judging performance. To enable measurements of the performance, the project needs to be subdivided into various sections known as milestones. To achieve the various milestones, the manager will need to create an action plan. This is a breakdown of what, where and when various activities are going to occur. There are many problems associated with public sector performance management. Some of these problems are as follows:? There are not enough targets to attain. ? There tends to be too many indicators. ? There is a lethargic reporting style, however the reporting systems tend to be loose. In the case of this project for the local council there needs to be a hierarchy of objectives, these must range from corporate to individual objectives. The corporate objectives for the local council may be as follows:1. To design, build and tender for the centre within the budget allocated and within any time frame allocated by the capital provider. 2. To allocate appropriate funds from the local authority budget to enable the project for the centre to proceed. 3. To increase, restructure or divert the revenue budgets of the local authority to accommodate the running of the centre. The examples of the objectives above are broad in context. This is deliberately to enable any changes through revenue and allocations of funds to the centre to be accommodated for within the objectives. There may be political issues involved within the development of obtaining these major corporate objectives. These may include the raising of tax, the proposed centre having to match the running costs or possibly the allocation of funds from other local authority departments. These objectives are not as narrowly defined as those from the private sector or if it were a PFI (Private Finance Initiative) project, this is due to the need to insure that all stakeholders may be taken into consideration. Although these objectives are corporate, they usually are allocated to an individual to oversee. This method within the public sector could cause problems within the board; these problems are due to the possibility of one-upmanship. Within the local authority, there are other objectives which must be satisfied, these link and are interdependent with the corporate objectives. An example may be that the Arts and Leisure Director needs to set out his objectives for achieving the design and building requirements. Example – Objective Carry out the Tender procedure within 6 months: Activity or milestoneActionDeadlineA.Appoint ConsultantBy End of Month 1B.Approve BudgetBy Start of Month 2C. Finalise DesignBy End of Month 2D.Send spending specificationBy Start of Month 3for TendingE. Evaluate TendersBy End of Month 4F.Appoint ContractBy End of Month 5G.Complete ContractBy End of Month 6The Milestones are time related, they can be measured and if slippage occurs, action can be taken to bring the plan back on schedule or negotiations can take place to approve an extension. Another example may be that of the Director of Finance or the treasurers objective, such as the following: 1. Reassign budget areas and make alterations to the allocations / Negotiate the Leisure and Arts Budget. The Church of Scientology EssayIf the project is successfully implemented the Performance Management does not stop as it can continue with the development of the Arts, Media and Culture Centre. With the evolution of the facility, new Performance Indicators can be introduced for further review. Examples of this are as follows. A performance indicator as a standard may be set for attracting X number of clients per Day/Week/Month etc. So X people per month could be the Performance Indicator to compare with the actual figure. The actual and the Performance Indicator can be compared and if they are not in sync, action to bring it into alignment can be devised and implemented. Similarly revenue/income can be considered as a performance indicator, based on collecting the 1million running costs. This again can be monitored routinely to see if the assumptions were completed, what the time of year effect is etc. Excessive use of Performance indicators, particularly those published externally, may encourage particular actions by public sector managers: 1)Tunnel Vision refers to the idea of managers being so concerned with reaching performance targets that they exclude other important areas. 2) Suboptimization is the problem of managers pursuing their own objectives and ignoring opportunities for the organisation. 3) Myopia is the problem of concentration on the short term with lack of concern as to what might happen in the long term due to simply trying to meet current performance targets. 4) Convergence – this is the problem of the objective being set as simply not to stand out as being a bad performer, rather than to try and do the best. 5) Ossification – the practice of avoiding innovation. 6) Gaming – This is altering the organisations behaviour so as to gain a strategic advantage. 7) Misrepresentation – This involves trying to ‘fix’ the figures, using such methods as creative accounting and fraud. Managers are also made sensitive to the indicators with which the electoral representatives are held to account. The idea that managers of public services leave their political views etc. at home, is widely discredited. People working in public sector organisations are not neutral, and tend to develop their own goals that may or may not be compatible with the goals of the organisation. There are also other problems with this approach that must be taken into account. There are a number of problems with comparability with other authorities in terms of the breakdown of standardisation of any performance management approach, the fact that ‘inputs’ vary between authorities (also different items under managerial control), the fact that if budget does not allow for maximum capacity it will lead to different unit costs for the outputs and it being hard to judge the true intangible ‘value’ of services. There are specific problems generated by an organisational resistance to stretch. After it has been laid down a while, staff learns to â€Å"fool the system† and creative accounting may also be used. These are further examples of staff pursuing self-interests rather than the interests of the organisation. Performance Management is a subjective means of managing projects using performance indicators and performance review. There are a number of interest groups and their views and interest are an important part of Performance Review. The key to successful implementation of Performance Management and Review Techniques to assist with the complex decision implementation of the new Lottery Funded Arts, Media and Cultural Centre and ensure effective delivery are as follow: (a) Ensure the objectives are realistic(b) Ensure all objectives link together(c) Ownership of the objective is paramount(d) Should not be used as a stick to control someone(e) Ensure all milestones are measured(f) Ensure the recipient of the objective knows how, when and where reviews will take place(g) Don’t review too often too quickly. Despite the mentioned problems, there is still a great deal of potential for performance management and review systems. A great deal of effort needs to be put into constructing a performance management system, but as long as the users are aware of the potential difficulties, many problems can be overcome. BibliographyArmstrong, M and Baron, A (1998) Performance Management: The New Realities, London Institute of Personnel and Development. Nutley, S and Osborne, S (1994) The Public Sector Management Handbook, London: Longman. Bevard, T, Davis, P and Green, J (1998) More For Less: Practical coping strategies for managing limited resources.

Arctic Power - A Case Analysis Essays - Cleaning Products

Arctic Power - A Case Analysis ARCTIC POWERA CASE ANALYSIS CURRENT SITUATION It is the summer of 1987. Arctic Power laundry detergent has contracted with the consulting firm of Smith and Jones, LTD to assist Arctic Power in determining their strategic direction and their product positioning. BACKGROUND AND HISTORY Arctic Power, a laundry detergent specially formulated to clean in cold water, is part of Colgate-Palmolive Canada family of products. Colgate-Palmolive Canada is a wholly owned subsidiary of the multinational corporation Colgate Palmolive. In 1986 Colgate-Palmolive had worldwide sales of $4.9 billion with profits of $178 million, with Colgate-Palmolive Canada having sales of $250 million. Colgate-Palmolive Canada (CPC) has a wide variety of household and personal care products. Among the most popular CPC brands are ABC, Arctic Power, and Fab laundry detergents, Palmolive dish soap, Ajax and Irish Spring body soaps, Ultra Brite and Colgate toothpaste, and Baggies storage bags. Colgate-Palmolive Canada uses a product management system in which product managers are assigned specific responsibility for a specific brand such as Arctic Power. Their overall goals are to increase sales and profitability of their brands. The project manager is responsible for all the marketing functions, including planning, advertising, selling, promotion, and market research. An assistant product manager is assigned to work with the product manager. Prior to the late 1970s Colgate-Palmolive Canada supported their brands on a national basis, then changed strategy as CPC realized they were spreading their resources too thin. During the late 1970s through the early 1980s, CPC shifted to a regional strategy. While Arctic Power was still distributed nationally, by the end of 1981, its share of the Canadian national market was 4% (consisting of an 11% share in Quebec, 5% in the Maritimes, and 2% elsewhere in Canada). As a result, Arctic Power was heavily marketed in Quebec and the Maritimes, with promotion support being withdrawn from the rest of Canada. This regional approach was successful as Arctic Powers share of the overall Canadian market increased to 6.4% in 1985, capturing 18% of Quebec, 6% of the Maritime markets while dropping to less than 2% elsewhere in Canada. 1986-87: THE WESTERN CAMPAIGN With the success Arctic Power had in their regional strategy, Arctic Power launched a campaign to increase their market share in the provinces of British Columbia and Alberta. Their 1986 campaigns objectives were to maintain modest overall volume growth in Quebec and the Maritimes while developing the B.C and Alberta markets. The short-term objective was to sustain unit growth while building cold water washing dominance. The long-term objective was to become the number three brand of detergent with a 12% market share and deliver an 18% contribution margin. Arctic Powers marketing strategy was to target women between ages 18-49, skewed towards the 25-34 age segment. This was to be accomplished through advertising in the media, consumer promotions, and trade promotions. The media strategy objective was to achieve high levels of message registration through high message continuity and frequency. The objective of the consumer promotions campaign is to increase the rate of usage in Quebec and the Maritimes by increasing purchase frequency. The objective in British Columbia and Alberta is to increase the rate of trial. The copy strategy in Quebec/Maritimes was to convince consumers Arctic Power is the superior detergent for cold water washing. The benefit is when consumers are washing in cold water, Arctic Power will clean clothes and remove stains more effectively. The copy strategy in B.C./Alberta was to convince consumers cold water washing is better than hot. The benefits from cold water washing are it reduces shrinkage, color run, and, energy costs. The objective of the trade promotions is to maintain regular and feature pricing equal to Tide (the #1 detergent by far in the Canadian market) and encourage prominent shelf facings. Distribution targets are 71% in B.C and 56% in Alberta. A total of $3.46 million will be spent on trade promotions with $1 million targeted to B.C. and Alberta. Results of the Western Campaign The results of the campaign clearly had an impact, particularly Alberta where brand and advertising awareness had increased. However, market share had risen and then it dropped towards the end of the campaign. While the gain in market share in a mature, slow growing market can be encouraging; the cost

How to Write an Analytical Essay on Political and Economic Development in the Third World

How to Write an Analytical Essay on Political and Economic Development in the Third World Having students write analytical essays is a great way to ensure that they understand a topic. After all, the process of writing one involves a lot of research, close examination of facts, and critical thinking. Unfortunately, these essays differ from the usual pieces you write for other courses. You need to know how to effectively write one in order to secure a great grade. As overwhelmed as you may feel at the moment, writing an analytical essay, especially on a complex subject such as the political and economic development in the third world,   is not complicated if you take a structured approach to the assignment. The following lines detail a framework for crafting an excellent analytic essay that will impress your instructor and get you the grade you worked hard for. Preparation Read the assigned (or chosen) essay topic/question closely. Clarify any doubts before typing a single word as it will help you write more effectively. If your knowledge on the topic is limited, read a simple introduction online. This is necessary as the main purpose of an analytical essay is to make you think about the different aspects of your topic. For instance, for a topic related to the political and economic development in the third world, you may need to brush up on a few facts, such as the criteria used to categorize countries as underdeveloped, their history, currents issues and major trends within the scope of the topic. Pre-Writing This step involves making an outline of your essay. To pull this off, you need to determine two things: Topic You Will Write On Usually, the topic assigned will be a generalized and broad such as political and economic development in the third world. You will have to narrow down the specific aspect you wish to explore. Choose a topic that interests you, one that either you know a lot about or wish to investigate further because you like it. Just make sure it is a proper, plausible statement that can be researched. Thesis Statement The thesis statement in an analytical essay is the most crucial part. Since you are writing an analytical essay, you will be presenting an idea or a claim. This is your thesis. However, your goal is to make it original and insightful. You can explore a major cause and effect relationship, analyze a persistent problem or observe the causes of changing social/economic trends. Here are a few interesting thesis statements related to political and economic development in the third world: Rapid and unplanned urbanization in developing countries is a contributing factor to social instability. More transparency in governance will increase tax compliance in the developing world. Transnational crime is a $650 billion enterprise. A significant link exists between economic underdevelopment and transnational crime. These simply serve as examples for specific avenues you can explore. If you do choose one of these themes, you will have to write it in your own words. Creating Your First Draft Traditionally, there are three basic components of an analytical essay, and it is these you should be planning to write. The Introduction An introduction is where you present your main idea to the reader. This must be done in an efficient and intriguing manner. In this section, start with a hook that grabs attention, write your main thesis, and finally write how you intend to prove your thesis. Body This section will contain the evidence and examples you provide to back up your thesis statement. It is a good idea to limit yourself to three-five paragraphs. However, if you have more supportive evidence, you may exceed that limit with moderation. Remember: each paragraph should start with a sentence that informs the reader what the paragraph is about. Next, make your claim and finally back it up with researched evidence. The final sentence should tie in your first sentence with the supportive evidence you provide. Conclusion Briefly restate your main point in two to three sentences. You can include a quote or important statistic in order to further elucidate your conclusion. Follow this outline closely and you will be able to complete your assignment in no time. However, if your instructor has given his or her own outline and set of rules, be sure to follow them and combine the tips you read here if applicable. For further referencing purposes you may also check our 23 facts on political and economic development in the the third world, 20 topics on the subject and 1 sample essay. Best of luck on your next assignment and sincere wishes for a good grade.

Salah Aldin (captur of juresalum Article Example | Topics and Well Written Essays - 750 words

Salah Aldin (captur of juresalum - Article Example The two most significant sites for Muslims in Jerusalem are Al-Aqsa Mosque and the Dome of the Rock, which like the Ka’ba’ is based over a sacred stone. Above all, it is regarded as the third-holiest city in the Muslim perspective, after Mecca and Medina. Further, is it perceived that verse 44 of chapter 43 of the Koran was revealed in the city of Jerusalem: â€Å"Ask those of our messengers we went before thee-Have we appointed apart from the All-Merciful, gods to be served?† It is therefore the hope of all Muslims that this holy City will be restored to a peaceful land. How Salah Aldin took back Jerusalem In 1099, Jerusalem was dominated by the Christians in the First Crusade. In the year 1095, Pope Urban VII delivered an influential speech at the Council of Clermont following the Byzantines request for him to provide a military help against the growing threatening Seljuk Turks. This gave the Pope a chance to complete two objectives; to stop the European prince s and kings from conflicting themselves and to reunite the Western and Eastern empires of Rome. Pope Urban requested for a â€Å"Truce of God† between the rulers of Europe and begged them to restore the holy land from Muslims. It was from this point that the first Crusaders started the extensive trip to the East. They crossed strange lands they knew little about; they also had no idea of the military powers and flaws of the cities and communities they came across. On their arrival in Jerusalem in 1099, they were able to capture the prominent city from the Muslims. The Christians utilized cruel techniques to overpower the Muslims during this so called â€Å"Holy War.† Christians controlled Jerusalem for 89 years, till when a brilliant Egyptian King named Salah-al-Din took it back forcibly in1187 (Ali, 1999). During the capture, Saladin was so determined to deliver Jerusalem from the Christian influence. Unlike the Crusaders, Saladin never used the brutal ways on the Inh abitants. He instead showed mercy and restraint upon the Crusaders; he permitted them to stay or leave harmless, as they did wished. Most chose to leave, but left with masses of golden ornaments and church treasures, Saladin never minded so that he could avoid harming them. He even assigned his army to escort them safely to Tyre. On of the Chroniclers commented on Saladin’s humane treatment saying, â€Å"Who could not endure the suffering of the refugees, ordered their squires to dismount and set aged Christians upon their steeds. Some of them even carried Christian children in their arms."(Maalouf 1989). Most people complained of Saladin’s techniques, lamenting that the Muslim had no leader like Saladin and they should be grateful to him for setting up the Crusader protection of Tyre. However, this was just his character and wisdom. When his secretaries criticized about his compassion in the taking back of Jerusalem, Saladin said to them, â€Å"we will allow it to b e a victory that the world shall remember for all time.†According to Maaalouf, as compared to European conquest of the city, Saladin’s capture of Jerusalem was far more elegant and less bloody. The mosques had been ransacked and destroyed by the Christians. However, Saladin conserved and refurnished the churches as well as allowing the Byzantine patriarch to rule them directly. They prayed freely in their holy places, and Saladin handed over Christian