Research Design Essay Example | Topics and Well Written Essays - 2750 words

Research Design - Essay Example This research aims to evaluate and present respondents were asked as to estimate the WTP figures. The questions, which involved the willingness to pay (WTP), considered both the environmental and economic factors like the acceptability of WTP and the refusal of proposal both cannot be considered in the similar manner and for what the refusal stand for. Similarly, willingness to pay is sometimes regarded as the willingness to accept. Sometimes, WTP estimates weather the respondent wills to pay or just responds for the moral satisfaction, how the policy-making procedure utilized the benefit estimation. Before each question it gives an information about the question and the relative taxes and costs that will apply. In this way, the respondents and the interviewer maintain an atmosphere of confidence and reliability. Political views of freedom to ask and freedom to say are well adopted in the research paper. Most of the questions are answered in a more reasonable manner and respondent ha ve tried their best to answer as many question and bid as more as possible but in the other paper, respondents avoided some of the questions and responded some of the questions in an unsatisfactory manner. The utilization of multiples as double the current amount, three times the current amount, four times the current value or one thousand times the current amount made the research more cost efficient as it could be without the utilization of multiple values.... The questionnaire is such designed to provide an information to the respondents in both the papers but the method of interaction utilized in the paper â€Å"Benefits of Costs and Wildlife Enhancement Scheme: A Case Study of the Pevensey Levels† written by â€Å"K. G. Willis† are not much influencing. The article â€Å"I struggled with this money business†: respondents’ perspectives on contingent valuation† written by Judy Clark, Jacquelin Burgess and Carolyn M. Harrison’ utilizes the better interaction and information sharing methods. Before each question it gives an information about the question and the relative taxes and costs that will apply. In this way, the respondents and the interviewer maintain an atmosphere of confidence and reliability (Petterson &Williams 2005). Political views of freedom to ask and freedom to say are well adopted in the research paper. Most of the questions are answered in a more reasonable manner and respondent h ave tried their best to answer as many question and bid as more as possible but in the other paper, respondents avoided some of the questions and responded some of the questions in an unsatisfactory manner. The utilization of multiples as double the current amount, three times the current amount, four times the current value or one thousand times the current amount made the research more cost efficient as it could be without the utilization of multiple values. These questions have still indefinite and unsatisfactory answers; however, the satisfactory results can be achieved by utilizing a better questionnaire design. A well-researched method can resolve the problem associated with the WTP and CV

The expert system

The expert system Abstract The title for this report is Expert System. Statistically, the percentage of current organizations implementing expert systems for their usage is very minimal. This is due to the restraining forces of implementing expert system outweigh its driving force. Yet, as the technologies are frequently being upgraded, the constraints of implementing expert systems are getting easier to overcome. Hence, the reason I chose this title for my report is due to my strong interest in the future of expert system where it may potentially be used domestically for providing the best solutions for complex problems. Also, the knowledge gained from this research will contribute a lot for my final year project which will include in a simple expert system. This report will be explaining what an expert system is, the components of expert system, what a knowledge-based expert system is, the features of expert system, the advantages of using expert system, the drawbacks of using expert system and finally suggestions of implementing expert system into e-commerce systems. In the appendix part, the pictures which I have found from the Internet will be included in for providing better understanding regarding the details of expert system. What is Expert System? According to Wikipedia, an expert system is an advanced computer application that is implemented for the purpose of providing solutions to complex problems, or to clarify uncertainties through the use of non-algorithmic programs where normally human expertise will be needed. Expert systems are most common in complex problem domain and are considered as widely used alternatives in searching for solutions that requires the existence of specific human expertise. The expert system is also able to justify its provided solutions based on the knowledge and data from past users. Normally expert systems are used in making business marketing strategic decisions, analyzing the performance of real time systems, configuring computers and perform many other functions which normally would require the existence of human expertise. The difference between an expert system with a normal problem-solving system is that the latter is a system where both programs and data structures are encoded, while for expert system only the data structures are hard-coded and no problem-specific information is encoded in the program structure. Instead, the knowledge of a human expertise is captured and codified in a process known as knowledge engineering. Hence, whenever a particular problem requires the assistance of a certain human expertise to provide a solution, the human expertise which has been codified will be used and processed in order to provide a rational and logical solution. This knowledge-based expert system enables the system to be frequently added with new knowledge and adapt accordingly to meet new requirements from the ever-changing and unpredictable environment. Components of Expert System An expert system has many core system components to function and interfaces with individuals of various roles. In the appendix area, there will be a diagram (Figure 1.1) displaying expert system components and human interfaces. The major components are: Knowledge base a set of rules as representation of the expertise, mostly in IF THEN statements. Working storage the data which is specific to a problem being solved. Inference engine the code at the core of the system which derives recommendations from the knowledge base and problem-specific data in working storage. User interface the code that controls the dialog between the user and the system. There are certain major roles of individuals who interact with the expert system to fully exploit its functionality and capability. They are the: Domain expert the individual or individuals whose expertises are solving the problems the system is intended to solve; Knowledge engineer the individual who encodes the experts knowledge in a form that can be used by the expert system; User the individual who will be consulting with the system to get advice which would have been provided by the expert. Majority of the expert systems are built with expert system shells which contains an inference engine and user interface. The shell will be used by a knowledge engineer to build a system catered for specific problem domain. Sometimes expert systems are also built with custom developed shells for certain applications. In this scenario, there will be another additional individual System engineer the individual who builds the user interface, designs the declarative format of the knowledge base, and implements the inference engine. Depending on the size of the project, the knowledge engineer and the system engineer might be the same person. For a custom built system, the design of the format of the knowledge base and the coding of the domain knowledge are closely related. The format has a significant effect on the coding of the knowledge. One of the major hurdles to overcome in building expert systems is the knowledge engineering process. The process of the codifying the expertise into a required rule format can be a challenging and tedious task. One major advantage of a customized shell is that the format of the knowledge base can be designed to facilitate the knowledge engineering process. Since the major challenge in expert system development is the building of the knowledge base, it is encouraged that gap and difference between the experts representation of the knowledge and the representation in the knowledge base should be minimized. With a customized system, the system engineer can implement a knowledge base whose structures are as close as possible to those used by the domain expert. Knowledge-based Expert Systems Not all expert systems have learning components to adapt in new environments or to meet new requirements. But a common element each expert system possesses is that once the system is fully developed it will be tested and be proven by being placed in the same real world problem solving situation, typically as an aid to human workers or a supplement to some information system. Although reference books are able to provide a tremendous amount of knowledge, users have to read, comprehend and interpret the knowledge for it to be used. Conventional computer programs are built to perform functions using conventional decision-making logic having only little knowledge along with the basic algorithm for performing the specific functions and fulfill the necessary boundary conditions. The so-called knowledgebase was created in purpose of utilizing some knowledge representation formalism to capture and store the Subject Matter Experts (SME) knowledge. The process includes gathering that knowledge from the SME and codifying it according to a standardized format. Knowledge-based expert systems collect the small segments of human knowledge and combined into a set of knowledge-base which is used to aid in solving a complex problem. Any other problem that is within the range and domain of the knowledge-base can also be solved using the same program without reprogramming. Knowledge-based expert systems solve problems which normally require human intelligence. These said expert systems represent the expertise knowledge as data or rules within a system. These rules and data can be used and called upon for reference when needed to solve complex problems. When compared to conventional programming, the system has the ability to reason the process with explanations by back-traces and calculate the levels of confidence and deal with uncertainty. The knowledge has to be codified into programming code, hence as the knowledge changes, the program has to be changed accordingly as well and then rebuilt. Expert System Features There are a number of features which are commonly used in expert systems. These features allows the users to fully utilize the expert systems capability conveniently in providing the most logical and reasonable decision in a problematic situation. Backward chaining an inference technique which continuously break a goal into smaller sub-goals which are easier to prove via IF THEN rules Dealing with uncertainties the system has the capability to handle and reason with conditions that are uncertain and data which are not precisely known Forward chaining an inference technique which deduce a problem solution from initial data via IF THEN rules Data representation the method where the specific problem data is stored and accessed in the system User interface that portion of the code which creates an easy to use system; Explanations the ability of the system to explain the reasoning process that it used to reach a recommendation. Inference rule An inference rule is a statement that has two parts, antecedent which is an if clause and consequent which is a then clause. This rule is what the expert systems rely on and provides the capability to find solutions to diagnose and prescribe problems. An example of an inference rule is: If the song choice is in Latin, and the singers are in a group, Then the song choice is definitely from Il Divo. An expert systems rule base stores many inference rules such as this. They are stored in as separate rules and the inference engine will draw conclusions by going through all of them. Rules can be removed and added without affecting others since they are non-connected, yet it will subsequently affect which conclusions are to be reached. Inference rules has the better upper hand compared with traditional programming due to the fact that inference rules are able to imitate human reasoning and justify the solutions given. Thus, when a conclusion is drawn, the system is able to justify its course of solution and convince the user. Furthermore, since the expert system uses knowledge in a form identical to a certain expert, the solution provided will be not so different from an actual experts advice. Chaining When using inference rules, two main methods of reasoning used are backward chaining and forward chaining. Forward Chaining Forward chaining begins under the condition that the data is available and inference rules are used to conclude more data until a desired goal is reached. An inference engine using forward chaining searches the inference rules until it finds one in which the if clause is known to be true. It then concludes the then clause and adds this information to its data. It would continue to do this until a goal is reached. Due to the reason that the data available determines which inference rules are used, this method is also called data driven. A large number of expert systems require the use of forward chaining. The data driven approach is practical when combinatorial explosion creates a seemingly infinite number of possible right answers where no definite answer is specified. Forward chaining starts with the available data and uses inference rules to extract more data until a goal is reached. An inference engine using forward chaining searches the inference rules until it finds one where the antecedent (If clause) is known to be true. When found it can conclude, the consequent (Then clause), resulting in the addition of new information to its data. Inference engines will iterate through this process until a goal is reached. For example, suppose that the goal is to conclude the color of a pet named Fritz, given that he croaks and eats flies, and that the rule base contains the following four rules: If X croaks and eats flies Then X is a frog If X chirps and sings Then X is a canary If X is a frog Then X is green If X is a canary Then X is yellow This rule base would be searched and the first rule would be selected, because its antecedent (If Fritz croaks and eats flies) matches our data. Now the consequents (Then X is a frog) is added to the data. The rule base is again searched and this time the third rule is selected, because its antecedent (If Fritz is a frog) matches our data that was just confirmed. Now the new consequent (Then Fritz is green) is added to our data. Nothing more can be inferred from this information, but we have now accomplished our goal of determining the color of Fritz. Due to the fact that the data determines which rules are selected and used, this method is called data-driven, in contrast to goal-driven backward chaining inference. One of the advantages of forward-chaining over backward-chaining is that the reception of new data can trigger new inferences, which makes the engine better suited to dynamic situations in which conditions are likely to change. Backward Chaining Backward chaining starts with a list of goals or hypothesis and works backwards from the consequent (Then clause) to the antecedent (If clause) to see if there is data available that will support any of these consequents. An inference engine using backward chaining would search the inference rules until it finds one which has a consequent that matches a desired goal. If the antecedent of that rule is not known to be true, then it is added to the list of goals. In order for ones goal to be confirmed one must also provide data that confirms this new rule. An example of a system that uses backward chaining will be Google search engine. The aim of the system is to pick the best choice from many enumerated possibilities. For example, an identification problem falls in this category. Diagnostic systems also fit this model, since the aim of the system is to pick the correct diagnosis. The knowledge is structured in rules which describe how each of the possibilities might be selected. The rule breaks the problem into sub-problems. For example, the following top level rules are in a system which identifies birds. IF family is albatross and color is white THEN bird is laysan albatross. IF family is albatross and color is dark THEN bird is black footed albatross. The system would try all of the rules which gave information satisfying the goal of identifying the bird. Each would trigger sub-goals. In the case of these two rules, the sub-goals of determining the family and the color would be pursued. The following rule is one that satisfies the family sub-goal: IF order is tubenose and size large and wings long narrow THEN family is albatross. The sub-goals of determining color, size, and wings would be satisfied by asking the user. By having the lowest level sub-goal satisfied or denied by the user, the system effectively carries on a dialog with the user. The user sees the system asking questions and responding to answers as it attempts to find the rule which correctly identifies the bird. Note that the goals always match the affirmed versions of the consequents of implications and even then, their antecedents are then considered as the new goals which ultimately must match known facts which are usually defined as consequents whose antecedents are always true. Due to the reason that the list of goals determines which rules are selected and used, this method is called goal-driven, in contrast to data-driven forward-chaining inference. The backward chaining approach is often employed by expert systems. For a data driven system, the system must be initially populated with data, in contrast to the goal driven system which gathers data as it needs it. Figure 1.2 illustrates the difference between forward and backward chaining systems for two simplified rules. The forward chaining system starts with the data of a=1 and b=2 and uses the rules to derive d=4. The backward chaining system starts with the goal of finding a value for d and uses the two rules to reduce that to the problem of finding values for a and b. Uncertainty Often times in structured selection problems the final answer is not known with complete certainty. The experts rules might be vague, and the user might be unsure of answers to questions. This can be easily seen in medical diagnostic systems where the expert is not able to be definite about the relationship between symptoms and diseases. In fact, the doctor might offer multiple possible diagnoses. For expert systems to work in the real world they must also be able to deal with uncertainty. One of the simplest schemes is to associate a numeric value with each piece of information in the system. The numeric value represents the certainty with which the information is known. There are numerous ways in which these numbers can be defined, and how they are combined during the inference process. Data Representation For all rule based systems, the rules refer to data. The data representation can be simple or complex, depending on the problem. The most fundamental scheme uses attribute-value pairs. Examples are color-white, and size-large. When a system is reasoning about multiple objects, it is necessary to include the object as well as the attribute-value. For example the furniture placement system might be dealing with multiple chairs with different attributes, such as size. The data representation in this case must include the object. Once there are objects in the system, they each might have multiple attributes. This leads to a record-based structure where a single data item in working storage contains an object name and all of its associated attribute-value pairs. Frames are a more complex way of storing objects and their attribute-values. Frames add intelligence to the data representation, and allow objects to inherit values from other objects. Furthermore, each of the attributes can have associated with it procedures (called demons) which are executed when the attribute is asked for, or updated. In a furniture placement system each piece of furniture can inherit default values for length. When the piece is placed, demons are activated which automatically adjust the available space where the item was placed. User Interface The acceptability of an expert system depends to a great extent on the quality of the user interface. The easiest to implement interfaces communicate with the user through a scrolling dialog as illustrated in figure 1.4. The user can enter commands, and respond to questions. The system responds to commands, and asks questions during the inferencing process. More advanced interfaces make heavy use of pop-up menus, windows, mice, and similar techniques as shown in figure 1.5. If the machine supports it, graphics can also be a powerful tool for communicating with the user. This is especially true for the development interface which is used by the knowledge engineer in building the system. Providing Explanations One of the more interesting features of expert systems is their ability to explain themselves. Given that the system knows which rules were used during the inference process, it is possible for the system to provide those rules to the user as a means for explaining the results. This type of explanation can be very dramatic for some systems such as the bird identification system. It could report that it knew the bird was a black footed albatross because it knew it was dark colored and an albatross. It could similarly justify how it knew it was an albatross. At other times, however, the explanations are relatively useless to the user. This is because the rules of an expert system typically represent empirical knowledge, and not a deep understanding of the problem domain. For example a car diagnostic system has rules which relate symptoms to problems, but no rules which describe why those symptoms are related to those problems. Explanations are always of extreme value to the knowledge engineer. They are the program traces for knowledge bases. By looking at explanations the knowledge engineer can see how the system is behaving, and how the rules and data are interacting. This is an invaluable diagnostic tool during development. Why Use Expert System? In this section, the advantages and disadvantages of implementing the expert systems are provided. Then, the pros and cons will be reviewed according to my viewpoint and I will conclude as to why expert system SHOULD be implemented as a wiser alternative in obtaining the best solutions in overcoming complex problems. The Advantages of Using Expert System Expert system has been reliably used in the business world to gain tactical advantages and forecast the markets condition. In this globalization era where every decision made in the business world is critical for success, the assistance provided from an expert system is undoubtedly essential and highly reliable for an organization to succeed. Examples given below will be the advantages for the implementation of an expert system: Providing consistent solutions It can provide consistent answers for repetitive decisions, processes and tasks. As long as the rule base in the system remains the same, regardless of how many times similar problems are being tested, the final conclusions drawn will remain the same. Provides reasonable explanations It has the ability to clarify the reasons why the conclusion was drawn and be why it is considered as the most logical choice among other alternatives. If there are any doubts in concluding a certain problem, it will prompt some questions for users to answer in order to process the logical conclusion. Overcome human limitations It does not have human limitations and can work around the clock continuously. Users will be able to frequently use it in seeking solutions. The knowledge of experts is an invaluable asset for the company. It can store the knowledge and use it as long as the organization needs. Easy to adapt to new conditions Unlike humans who often have troubles in adapting in new environments, an expert system has high adaptability and can meet new requirements in a short period of time. It also can capture new knowledge from an expert and use it as inference rules to solve new problems. The Disadvantages of Using Expert System Although the expert system does provide many significant advantages, it does have its drawbacks as well. Examples given below will be the disadvantages for the implementation of an expert system: Lacks common sense It lacks common sense needed in some decision making since all the decisions made are based on the inference rules set in the system. It also cannot make creative and innovative responses as human experts would in unusual circumstances. High implementation and maintenance cost The implementation of an expert system will be a financial burden for smaller organizations since it has high development cost as well as the subsequent recurring costs to upgrade the system to adapt in new environment. Difficulty in creating inference rules Domain experts will not be able to always explain their logic and reasoning needed for the knowledge engineering process. Hence, the task of codifying out the knowledge is highly complex and may require high May provide wrong solutions It is not error-free. There may be errors occurred in the processing due to some logic mistakes made in the knowledge base, which it will then provide the wrong solutions. Summary It is entirely subjective as to whether the advantages of expert system overweigh the disadvantages of implementing it. It depends on the organizations viewpoint as to which objectives have the higher priority, whether in cutting cost or in producing a higher quality decision-making. However, in my opinion, the implementation of expert system is critical in providing the better service towards customers as well as possessing the competitive advantages over strong competitors. Cutting Cost VS Better Quality of Services If an organization is financially stable, the expert system is worth spending money and resources on, based on its fame and history of delivering many positive results. Though some organizations may have the cost-cutting objective as the top priority, if a wrong decision is made, it could lead to heavier financial loss. Adding insult to injury, the organizations reputation will be tarnished and customers may lose confidence towards the services of the organization. Expert System VS Human Experts Another main constraint of implementing the expert system would be the process of capturing the knowledge and codifying it into the system. However, an expert will not be available to provide his expertise around the clock. Hence, the importance of having the knowledge available all the time for critical decision-making far overweighs the difficulty that the organization will face in capturing the said knowledge. Humans also have limitations as to how much knowledge a human is able to digest and comprehend. As for expert system, it is able to store as much knowledge as possible base on its storage space. Hence, in terms of performance, expert system is capable to perform as good if not better then human. Implementing Expert System into e-Commerce System It has yet to be common for e-commerce systems to be implementing expert system to enhance its capability and experience for web users. There are still not many web developers willing to embed an expert system into their e-commerce system, mainly due to its difficulty in the knowledge engineering process to codify the human expertise. Yet, it is plausible to have a less complex expert system embedded in an e-commerce system to aid customers make decisions. The appropriate inference technique to be used in an e-commerce system will be forward chaining method, since customers will be providing part by part of data which will then be compared with the rule base to finally draw a conclusion. Providing questionnaires Through forward chaining method, the properly organized questionnaires will be able to obtain parts of small information from customers who couldnt make their decision upon which item to be bought. Every single question will have its purpose in determining the condition of the customers thoughts and liking, and then the answer provided will be compared with the rule base in the expert system to draw a final conclusion. This data-driven method is simple and productive since the process of codifying the human expertise of recommending an item that suits the customers liking isnt that complex. Example of Questionnaire The questionnaire below is used for the purpose of attaining small parts of information from the customer and the answers provided will be compared to the rule base in order to generate a decision for him Question 1 What is your budget range? (Determining the range of performance from the desktop) A. < RM 2000 B. lt RM 3000 C. > RM 5000 Inference Rules If X budget is less than RM2000 Then X needs no NVIDIA graphic card If X budget is less than RM3000 Then X needs NVIDIA graphic card(s) If X budget is more than RM5000 Then X needs NVIDIA graphic card(s) with better computer accessories Note: If user chose < RM 2000 Question 2 will be skipped. Question 2 What are the games you mostly play? (Determining the graphic card requirements) A. Massive Multiplayer Online Role Playing Games (MMORPG) B. First-Person-Shooting (FPS) C. All Inference Rules If X needs NVIDIA graphic card(s) AND X plays MMORPG Then X needs NVIDIA GTX 260 If X needs NVIDIA graphic card(s) with better computer accessories AND X plays MMORPG Then X needs NVIDIA GTX 260 and High Resolution Monitor If X needs NVIDIA graphic card(s) AND X plays FPS Then X needs NVIDIA GT 9600 If X needs NVIDIA graphic card(s) with better computer accessories AND X plays FPS Then X needs NVIDIA GT 9600 and Gaming Laser Mouse Question 3 How frequent do you download files such as songs and movies from the internet? (Determining the needed storage space) A. Seldom B. Often Inference Rules If X seldom download files Then X needs 320GB storage space If X often download files Then X needs 500GB storage space Providing Explanations Based on the questionnaire above, if a customer selects C, B, and B, the explanation will be given: The user selects NVIDIA GT 9600, Gaming Laser Mouse and 500 GB storage space. User plays First-Person-Shooting games which require middle-performance of graphic card and a gaming laser mouse to increase precision of mouse-controlling. User often downloads files and requires large storage space. If a customer selects C, A, and A, the explanation will be given: The user selects NVIDIA GTX 260, High Resolution Monitor and 320GB storage space. User plays MMORPG which require high-performance of graphic card and a high resolution monitor to enhance the gaming experience. User seldom downloads files and requires moderate storage space. Conclusion To conclude this report, expert system is undeniably reliable in terms of providing reasonable and highly valuable decisions. Knowledge and experiences from a human expert can lead to the critical decision-making in achieving success. Yet, as humans have limitations in terms of how much of knowledge is comprehendible by a person and the possible fatigue of dealing with too much work, the expert system doesnt have any. As knowledge is a valuable asset to an organization, retaining the experts knowledge is critical for the future of the organization. The expert system can play a vital role in storing and retaining the knowledge from a human expert. This saves the trouble of having the need to hire experts within the same domain for years. The rapid change and improvement of technologies will gradually decrease the cost for implementing an expert system. This will significantly reduce the financial burden for small companies in deciding the implementation of expert system. In the business world, organizations often faced trouble in making tough decisions and overcome complex problems. Customers often require computerized systems to support their decision-making. All these criteria can be met with the implementation of the expert system.

Each Mans Son :: essays papers

Each Mans Son ï » ¿1) Doctor Ainslie’s role in the community is to take care of the injured people of Cape Breton. He works long hours to keep up with the demand of the patients. He is also very much respected by everyone in the community. Molly thinks that Doctor Ainslie is a very well educated person. She thinks of Dr. Ainslie as a great role model for her son. 2.) Page 27 is saying that whatever the doctor does it is never good enough for him. He is too hard on himself, never being pleased with himself. Doctor Ainslie is hard on the outside but inside he is a very caring person. 3) Dr. Ainslie doesn’t think too highly of Archie. He thinks that Archie is not very smart and that he deserted his family. 4) I believe that Alan is not dependent on his father for everyday life. I do think that Alan is very dependent upon his father for the money of his education but that’s it. Molly believes that Alan can be a doctor just like Dr. Ainslie. Get his education from the USA and come back to Cape Breton or go far away to help others. 5) He can understand because he was in her position he once was poor where margret was rich her whole life. Mining effects almost everyone in the town. Miners are very poorly paid so the houses they live in are shared between two families. The men work in the mines all day, go home to get cleaned, eat supper, and then go down to the bar. They come home covered in black coal dust. The younger miners are very cocky and have nothing better to do after work that to pick fights. The middle aged men are very quiet and worn out. Mining takes a great toll on the workers lives. After working in the mine for a few years they look 10-20 years older then what they should look like. If they survive mining in time for their retirement they are lucky. A young Newfound lander (20) is brought into the hospital after an accident The Newfound lander’s hands are badly hurt and bandaged up in clothes The doctor operates, he cut off 1 hand and a finger The doctor talks to his friends to find out what had happened The young man took a bet to see if there were one or two cables running in the colliery

Management Decision and Control Systems

CSC 546: MANAGEMENT DECISION & CONTROL SYSTEMS SPRING 2007 METTLER TOLEDO INTERNATIONAL INC. PAPER 1: COMPANY PROSPECTUS Due March 2, 2007 Submitted by: SUDEEPTHI MOGALLA DEPARTMENT OF COMPUTER SCIENCE NORTH CAROLINA STATE UNIVERISTY Email: [email  protected] edu INTRODUCTION Mettler-Toledo International Inc. , headquartered in Greifensee, Switzerland is the world’s largest manufacturer of weighing solutions for laboratory, industrial and retail applications. With manufacturing facilities in USA, Switzerland, Germany, United Kingdom, and China, and sales & service operations in over 35 countries, it is also a leading global provider of precision instruments and services. It is a market leader in balances and pipettes, and a top provider of automated chemistry systems. It also holds leading market positions in several analytical instruments and process analytics applications. Its industrial product line includes weighing sensors for production and quality, and inspection systems for packaged goods. It also provides weighing solutions for transportation, and food retail industries. It supports its products through a comprehensive global service network assisting customers from calibration to compliance with regulations. It also provides retail software for fresh food management. Mettler-Toledo’s North American headquarters is located in Columbus, Ohio. In 2006, the company generated net sales of $1,595 million, a 7% annual growth with an operating income of $234 million, a 13% increase from 2005. The company is traded on the New York Stock Exchange under the ticker MTD. Mettler-Toledo International Inc. Page 2 of 23 COMPANY HISTORY The company Mettler Instrumente AG was started in 1945 by Dr. Erhard Mettler, a Swiss engineer, in Kusnacht, Switzerland. He developed weighing balances that used single pans for laboratory applications. By 1973, the company entered the electronic precision industry by producing the award winning electronic precision balance, the PT1200. With innovations applying microprocessor technology, new products like automated titrators, and thermal analyzers were added to the laboratory product lines. In 1980, the company was bought by Ciba-Geigy AG, which entered the retail scale market and produced weighing solutions to manufacturing companies. The company increased its sales and service network to various global locations. Toledo Scale Corporation founded in 1901 and headquartered in Columbus, Ohio was the largest scale manufacturer in US for industrial and retail markets. In 1989, it was acquired by Mettler to form Mettler-Toledo International Inc. In 1997, the company went public and started trading on the New York Stock Exchange. Over the years, the company undertook some major acquisitions thus adding some major brands to the Mettler-Toledo group of companies. Mettler-Toledo International Inc. Page 3 of 23 GROWTH BY ACQUISITIONS Mettler-Toledo started its Product Inspection Division by acquiring HI-SPEED Checkweigher Systems, a custom designer and manufacturer of checkweigher and product handling equipment in Ithaca, NY in 1981. In 1987, GARVENS based in Europe was purchased for its capabilities to produce checkweighing solutions for moving products. The Product Inspection Division was completed by the acquisition of SAFELINE, a leading metal detection manufacturer with facilities in UK and Tampa, Florida in 1997. The Process Analytics Division is started by the acquisition of INGOLD in 1986. INGOLD provides pH and conductivity solutions for process measurements in chemical processes and sterile applications. THORNTON, a provider of industrial water monitoring based in Bedford, Massachusetts was added to the group in 2000. Some of the markets leaders that operate under their own brands are BERGER Instruments that uses high performance technology to analyze and purify chemical compounds for drug discovery, CARGOSCAN that provides cargo space optimization solutions, LASENTEC that provides solutions for in-process particle size and population analysis and is part f the Automated Chemistry Division, and the California based manufacturer of pipetting solutions, RAININ Instruments. RAININ Mettler-Toledo International Inc. Page 4 of 23 holds a broad range of patents in the pipetting technologies and serves pharmaceutical, biotech, and research applications. Most recently, Mettler-Toledo acquired SOFTECHNICS INC. a provider of software solutions for food retailing applications in 2002. MANAGEMENT TEAM The management team at Mettler-Toledo is led by the President & CEO, Robert F. Spoerry who is also the Chairman of Board of Directors. Mr. Spoerry has served in the positions of Head of Industrial & Retail divisions for Mettler-Toledo in the past. He is supported by the CFO, William P. Donnelly who was the Head of Product Inspection, the CIO, Jean-Lucien Gloor, and the Head of Human Resources, Peter Burker. Table 1 lists the management team. Table 1: Mettler-Toledo Management Team Name Robert F. Spoerry Current Position President, Chief Executive Officer, and Chairman of Board of Directors William P. Donnelly Jean-Lucien Gloor Peter Burker Olivier A. Filliol Chief Financial Officer Chief Information Officer Head of Human Resources Head of Global Sales, Service & Marketing, and Head of Process Analytics Mettler-Toledo International Inc. Page 5 of 23 Ken Peters Karl M. Lang Beat E. Luthi Urs Widmer Joakim Weidemanis Hans-Peter von Arb General Manager – North America Marketing General Manager – Asia/Pacific Marketing Head of Laboratory Division Head of Industrial Division Head of Product Inspection Division Head of Retail Division CORE COMPETENCIES Mettler-Toledo was able to maintain its market leadership in numerous product lines primarily due to its ability to constantly develop new products and embrace new technologies. It has gained a reputation as a global innovator by successfully launching new products in various product lines each year. Research & Development has been its core competency from the beginning, and the company has increased its investment in R&D each year over the last few years. In 2005, its R&D spending was over $80 million, which is 5. 5% of its net sales. Mettler-Toledo holds more than 1700 patents and trademarks in USA, Switzerland, Germany, UK, France, Japan, and China. They developed strong knowledge base in automation, robotics, laser & optical applications, and industrial software development. Over the years, R&D at Mettler-Toledo has contributed through application of advanced technologies, feature-based enhancements on its products, increasing their products Mettler-Toledo International Inc. Page 6 of 23 reliability & accuracy, and developing new software capabilities for its products. With an R&D force of about 800 employees, the company was able to focus on multiple development efforts simultaneously. As more and more products from the company started including advancements in user-interface through touch screen and LCD technologies, a significant R&D effort went into developing its products’ user-interfaces, the supporting software, and information systems for data management. The significance of software development as a key R&D effort can be understood from the fact that almost half of Mettler-Toledo’s R&D personnel are software engineers. Beyond R&D efforts, Mettler-Toledo has also made deep inroads in managing its cost structure. The company has developed a strong base of cost reduction functions through its Global Supply Chain Group, which includes the Global Procurement, Global Electronics, and Global Logistics teams. These teams work closely with all the manufacturing facilities and marketing teams on regional and global initiatives to reduce manufacturing costs, internal process costs, total cost of procurement, and logistics costs. They also work with the Information Technology groups to implement new automation tools that enhance internal process efficiencies, and provide effective data analysis solutions. Key initiatives like supplier category management, corporate procurement card, and field Mettler-Toledo International Inc. Page 7 of 23 employee automation have enabled Mettler-Toledo to reduce their operating costs significantly. Members from Marketing, Purchasing, and Logistics work closely with R&D and Engineering in product development & re-engineering to ensure that efforts are being made to reduce manufacturing costs. Another aspect of Mettler-Toledo that makes it unique and reduces its risk is its ability to operate profitably in diverse markets. They have developed innovative products in most of the markets they serve and have maintained a strong cross-segment knowledge-sharing that enabled them to use a technology in different segments. Key business functions like Finance, Supply Chain, Service, Human Resources, and Legal are centralized. They assist the decentralized business units to coordinate their R&D, marketing, and customer support functions in product development and customer service. PRODUCTS & SERVICES The products and services of Mettler-Toledo can be broadly categorized into Laboratory Instruments, Industrial Instruments and Retail Solutions. Process Analytics and Product Inspection are sub-categories within Lab and Industrial groups. The make up of its 2005 net sales between these business segments is shown in Figure 1. Mettler-Toledo International Inc. Page 8 of 23 Figure 1: 2005 Sales ($ in millions) Retail Solutions, $193, 13% Laboratory Instruments, $667, 45% Industrial Instruments, $622, 42% Laboratory Instruments Laboratory balances are the primary product group in this business segment and are used in research & development, drug discovery, and process quality control. They are capable of weighing from one ten-millionth of a gram to 32 kilograms. Other products offered in this segment include pipettes, analytical instruments, and automated chemistry solutions. Titrators, thermal analysis systems, and pH meters form the analytical instrument group. The data capture, analysis and management are facilitated by their Lab Software known as LabX. Within this segment, Process Analytics forms a major subgroup of products that are used in pharmaceutical, biotech, beverage, microelectronics and chemical applications. They offer Mettler-Toledo International Inc. Page 9 of 23 sensor technology for pH, dissolved oxygen, carbon dioxide, conductivity and turbidity. They also include calibration and cleaning systems. Industrial Instruments This segment primarily includes industrial scales and balances for varying weighing needs and ranges. They are used in measuring, counting, ingredient mixing, and mail sorting applications. Products in this segment also offer in-process and in-motion measurement, dimensioning and identification technologies. Weighing scales for trucks and railcars form the heavy equipment products. All these products are supported by proprietary software like FreeWeigh. Net for statistical quality control, and Formweigh. net for formulation & batching. Product Inspection is a key product group in this segment that the company has invested increasingly in the past few years. The products are used in food processing & packaging, pharmaceutical, and manufacturing industries. They are made up of metal detection systems, X-ray visioning equipment, and checkweigher systems. Retail Solutions Retail segment is the smallest of Mettler-Toledo businesses in terms of sales. These are scales used in supermarkets, and Mettler-Toledo International Inc. Page 10 of 23 food retail businesses for weighing and labelling applications. With Mettler-Toledo entering the various emerging markets like India, this business segment is expected to grow significantly. Mettler-Toledo also provides software solutions for its retail products through its Softechnics division. The software provides capabilities for retail inventory management for fresh foods, and integrated data management. The various products offered by Mettler-Toledo are listed in Table 2. Table 2: Products & Service Offerings Product Categories Laboratory Weighing Products & Solutions Micro and ultra-micro balances, analytical balances, precision & high-capacity precision balances, mass comparators, weighing modules, halogen moisture analyzer, pipette calibration workstation, and support software. Analytical Instruments Thermal values, thermal analysis, titrators, pH-/cond-/ISE-meters, density meters, refractometers, and electrodes for laboratory and field. Pipettes & Tips Single channel pipettes (manual & electronic), multi channel pipettes, tips for Mettler-Toledo International Inc. Page 11 of 23 LTS & traditional pipettes – bio clean, positive displacement pipettes & tips, and repetitive pipettes. Automated Chemistry Solutions Lab automation, chemical synthesis, chromatography, particle system characterization, reaction calorimeters, automated lab reactors, and informatics & workflow management. Process Analytics Transmitters & Meters, pH & Redox sensors, dissolved oxygen sensors, total organic carbon instruments, conductivity/resistivity sensors, dissolved ozone sensors, dissolved carbon dioxide sensors, flow sensors, and cleaning & calibration systems. Industrial Weighing Automotive refinish scales, material transfer controllers, bench, compact and counting scales, overhead/monorail scales, postal solutions, weigh modules & load cells, software, statistical process control, , and weighing terminals. Product Inspection Transportation & Logistics Checkweighing, metal detection, and X-ray. Air cargo scales, dimensioners, forklift scales, post/mail solutions, rail scales, and Mettler-Toledo International Inc. Page 12 of 23 weighbridges & truck scales. Food Retail Scales (basic, retail counter, self service, retail hanging, checking & receiving), wrapping machines, auto labelling & security tags, and retail software. CUSTOMERS The customer base of Mettler-Toledo is spread across numerous industries like chemical, pharmaceutical, biotechnology, food & beverage, raw materials, pulp & paper, jewellery, transportation & logistics, OEM, machinery & automotive, and retail. Most customers are serviced through their three business segment groups, Lab, Industrial and Retail. Certain key accounts with which the company has developed strategic relationships over the years are serviced and supported by their Strategic Accounts group. The customer base of Mettler-Toledo is also highly diversified with sales from each of their top customers accounting for less than 3% of total net sales. MANUFACTURING Mettler-Toledo’s manufacturing facilities known as Producing Organizations (POs) are located primarily in USA, UK, Switzerland, Germany, and China. Each PO dedicates its product Mettler-Toledo International Inc. Page 13 of 23 development and manufacturing efforts to a certain group of product lines and serves the global needs of those products. This enables Mettler-Toledo to reduce R&D costs, maintain a customer focus, and to develop product leadership by a PO in its line of business. The POs work with each other in their product development, manufacturing, and procurement efforts, and with the marketing groups in understanding customer needs. Safeline, Garvens, and Hi-Speed, which serve the Product Inspection markets, work very closely in coordinating their efforts. Depending on the manufacturing capability and capacity constraints, certain POs act as internal suppliers to other POs who may use their manufacturing resources. MARKETING, SALES & SERVICE Unlike the Producing Organizations, the Marketing Organizations (MOs) at Mettler-Toledo are segmented based on their geographic focus. The MOs are located all over the world, with the largest groups in USA and Europe. This enables them to understand the specific local needs of the customers, and develop close relationships with their entire customer base. The sales and service efforts parallel that of the marketing thus maintaining a close loop for the customer relationship. MettlerToledo maintains a large employee base of 5000 employees that is Mettler-Toledo International Inc. Page 14 of 23 spread over 35 countries in the form of marketing, service technicians and customer service professionals. Mettler-Toledo also offers numerous services in the form of repair & service maintenance, and value-added services for regulatory compliance. These are offered across the globe based on local regulations. Their global service network has expanded over the years as they explore numerous emerging markets. In 2005, revenues from service agreements, repair, and spare parts constituted 23% of the company’s net sales. INFORMATION TECHNOLOGY & MIS The company’s IT operations are lead by their corporate team in Switzerland, which maintains the globally used operating systems, providing regular updates and support. Their global contracts with key hardware and software vendors ensure product standardization and concurrent upgrades. They have however decentralized most of the locally operated systems, like their MRP and ERP solutions at the manufacturing facilities and marketing organizations. Being a highly decentralized organization, except for some global software systems, most IT infrastructure is maintained regionally. The regional IT groups also handle the telecommunications, mobile phone, and data networks for their region. The company has continuously made significant investments to standardize the IT operations where Mettler-Toledo International Inc. Page 15 of 23 necessary, and provided the flexibility to local units when higher efficiencies could be gained through local optimization. The company uses ERP packages from well known providers like Baan and Oracle, and also from smaller companies like Fourth Shift, and MAPICS. The company uses numerous enterprise software for various sales and service operations, as well as hosted solutions for e-procurement and e-commerce applications. EMPLOYEES & CULTURE Mettler-Toledo follows a highly decentralized organization structure providing high levels of autonomy to the business units, encouraging entrepreneurial responsibility and accountability for growth and success. The product development and manufacturing activities are performed by the producing organizations, where the marketing, sales and support functions are the responsibility of the marketing organizations. All POs and MOs are supported by corporate global functions. Mettler-Toledo employs more than 9000 fulltime employees across the globe with more than 4000 in Europe, over 3000 in the Americas, and about 1000 in Asia. About 50% of the workforce is part of their global sales and support network. R&D with over 800 employees is also a key function in the company. The company provides various employee benefits including a pension & post-retirement savings plan that cost them $1. 5 Mettler-Toledo International Inc. Page 16 of 23 million in 2005. Their health care benefits cost over $10 million each year. Employee Purchase Programs through corporate agreements are provided for products like personal computers, office supplies, consumer technology, mobile services, and home mortgage. Mettler-Toledo is an equal opportunity company and hires employees from diverse cultural backgrounds and geographic locations. Due to their line of business, they mostly hire engineering graduates from well known institutions in Switzerland, USA, and China. Most of their senior management has a strong analytical background with engineering, mathematics, or finance focus and many middle management and senior management employees hold advanced degrees in engineering or business. In USA, they recruit new graduates into their Initial Career Experience program (ICE) which is a rotational program for undergraduate degree holders. They also provide internship opportunities in IT, marketing, and supply chain management, and offer fulltime opportunities upon their graduation. Mettler-Toledo maintains a core set of cultural values it expects its employees to follow in their day to day operations. It includes maintaining a strong focus on quality in both its products & services, and its internal processes. It stresses the importance of being aggressive in exploring new markets, and embracing new technologies. There is also a strong need to be Mettler-Toledo International Inc. Page 17 of 23 cost-conscious so that it can maintain its competitiveness against larger players and unsuitable market forces. It expects employees to show initiative and leadership qualities. Employees should also be innovative and be ready to face the hurdles in executing their ideas. With a global market in place, the company should be agile allowing it to quickly react to changes. A semi-formal work environment is maintained to develop closer employee relationships. The company restricts itself in the use of titles to its management and in fact doesn’t use â€Å"Vice President† as a title. Except for division heads, who are either known as a Head of division or General Manager, all the others are known as Managers, Engineers, or Analysts. A business casual dress code is maintained at all of its locations. COMPETITIVE LANDSCAPE The markets Mettler-Toledo operates in are highly competitive, and fragmented by location and application. In most markets, they face stiff competition from companies that are focussed and specialized in their offerings. In many cases, the focussed competitors are smaller divisions of very large multinational companies with extensive resources. These factors further signify the necessity for Mettler-Toledo to develop efficient R&D and manufacturing processes to maintain its cost structure. Mettler-Toledo International Inc. Page 18 of 23 The major competitors of Mettler-Toledo are Beckman Coulter Inc. with $2. 5 billion in annual revenues, Siemens AG with $117 billion in annual revenues, and finally Thermo Fisher Scientific Inc. with $3. 8 billion in annual revenues. Among these Siemens AG operate in many other markets and businesses that MettlerToledo does not involve in. Due to its cost structure advantage, Mettler-Toledo was able to maintain operating margins of over 13%, when their competitors have recorded them at below 10%. RISK FACTORS Mettler-Toledo notes that since it operates in numerous countries, its operating income can be affected by currency fluctuations. Its international operations also face risks in the form of trade barriers, employee retention in growing markets, lack of protection for its intellectual property, nationalization, and economic and political stability in some countries. Some of the markets are highly competitive and hence may be difficult to continuously maintain market leadership in multiple product lines. As Mettler-Toledo grows via acquisitions, it has the risk of assimilation challenges, lack of focus on key initiatives, and loss of key employees. As Mettler-Toledo operate in many markets subject to regulations, they have the risk of not meeting some of the regulations in time. Exposure to additional income taxes and unanticipated tax Mettler-Toledo International Inc. Page 19 of 23 laws are also some of the perceived risks faced by MettlerToledo. FINANCIAL PERFORMANCE Mettler-Toledo International Inc. has been delivering strong financial results over the years. It generated net sales of $1,596 million in 2006, a 7. 6% increase from its 2005 sales revenue of $1,482 million. Figure 2 shows 2006 sales by geographic region. Figure 2: 2006 Sales ($ in millions) by region Asia & Rest of the World, $287, 18% Europe, $670, 42% North & South Americas, $638, 40% The chart in Figure 3 shows Mettler-Toledo’s financial performance since 2001. It shows that net sales have increased at an average of 7% year over year. The operating cash flow increased to $192 million in 2006, an 8. 5% increase from $177 Mettler-Toledo International Inc. Page 20 of 23 million in 2005. The adjusted operating income (gross profit less R&D and SG&A expenses) increased by 13% to $234 million in 2006 from $207 million in 2005. Figure 3: Financial Data (2001-2006) Net Sales $1,800 Operating Cash Flow Adjusted Operating Income $1,595 $1,600 $1,482 $1,404 $1,304 $1,214 $1,148 $1,400 $ in millions $1,200 $1,000 $800 $600 $165 $179 $167 $102 $115 $165 $200 $0 2001 2002 2003 Years $117 2004 $166 2005 $177 2006 The company reported Earnings per Share (EPS) of $3. 86 for 2006, which is a 29% growth from $2. 52 in 2005. Through these results the company has demonstrated a strong balance sheet and a substantial cash flow generation. POSITIONING FOR 2007 AND BEYOND The company exceeded expectations in 2006 with strong financial results, and is expected to perform well in 2007 and beyond. With rising cost pressures due to price increases for oil, steel, paper & pulp, and other raw materials, the company Mettler-Toledo International Inc. Page 21 of 23 $192 $400 $207 $234 needs to continue to improve its cost structure through efficient and effective processes. Some of the key customercentric marketing initiatives undertaken by the company like â€Å"Spinnaker† have been successful in generating new customer leads and improving existing customer relationships. Its new product launches have been successful in 2006, and the company continues to develop new products in many of its business segments. In 2006, the company was very successful in increasing its market share in emerging markets like Russia and India. With the acquisition of distribution channels in these countries, its market share is expected to grow at significant rates in 2007 and beyond. The analysts estimate that revenues for Mettler-Toledo would grow to $1. 69 billion in 2007 and to $1. 78 billion for 2008. It represents an annual increase of 6. 3% for 2007 and 5. 3% for 2008. In the short term, the company aims to consolidate all its existing market positions in the various product lines it now holds the top positions, especially industrial and laboratory instruments. It aims to increase its market share in retail weighing market by focusing on emerging markets, which offer the greatest potential for untapped markets. In the long-term, the company will look to be the industry leader in all product segments ranging from laboratory Mettler-Toledo International Inc. Page 22 of 23 instruments, industrial instruments, process analytics, product inspection, and chemistry solutions. It also plans to consolidate its retail market share through partnerships with global retailers. The strong values developed by its employees, its continued investment in developing innovative products, diversified customer base, and global service network should ensure that Mettler-Toledo is in a strong position to fulfil both its short-term and long-term objectives. REFERENCES 1. Mettler-Toledo website (http://us. mt. com) 2. Yahoo Finance (http://finance. yahoo. com) 3. Hoovers (www. hoovers. com) 4. The Wall Street Journal Online (http://online. wsj. com) Mettler-Toledo International Inc. Page 23 of 23

Qantas Airlines Market Segmentation

The purpose of the task is to develop an understanding of market segmentation and explain how it can assist organizations in the allocation of their resources more effectively and efficiently. The marketing segmentation process is a strategy adopted by organizations with an aim of preparing the organizations sales and marketing for the target clients (Steenkamp & Ter Hofstede, 2002). The target clients are the clients who are known to traditionally consume the products or services of the particular organization. The discussion below focuses on Qantas Airlines and discuses the advantages the organization has gained from the strategy as well as associated benefits. Further the discussion aims at analyzing how the organization has been able to maximize profits as a result of the market segmentation strategy. Lastly the discussion shall in a general perspective focus on the applicability and suitability of the strategy as well as the challenges involved. Definition of consumer needs at Qantas Airlines. The airline has in an effort of market segmentation, categorized the needs for its customers into 3 distinct levels based on the perceived needs of the particular customers in the respective departments. To this end the airline has come up with the following categories or levels. Business. Qantas Airlines has come up with a strategy of dealing with hotels which meet the standards of their customers. As a policy the airline only boos its passengers to certain hotels only where the company enjoys some interests and discounts as a laid out in a memorandum of understanding. Secondly the Airline has reorganized its operations in line with the policies and procedures which the top board meets and reviews yearly. An example was the recent improved communication system which was aimed at improving communication with flight crew any were in the world. As a sales strategy it can be said to have resulted into improved profits due to high customer turn out as well as the elimination of slug- in time which would result from poor communication earlier (McKenna, 1988p. 275-80). Qantas Airlines has also utilized its marketing strategy to mange its inventories which are in different locations al over the world, by the use of IT the farm has been able to overcome challenges related to the task of inventory and has come out successfully to minimize loss and wastage of company assets. Consumer needs. The company has taken into consideration in the process of its product design the fact that there exists a class of consumers for its services who won’t just use a flight for the sake of it. They have to be treated and made to feel special and comfortable. To this end the company had come up with first class a prestigious class who are basically consumers whose major concern is not the much they are charged for the flight but the comfort that comes with it. This satisfies the company’s clients emotionally and therefore leaves a permanent or at least long last memory on the customers mind that is hard to erode and it makes the company to have what is termed as regular customers who no matter what, they value and like the services of Qantas Airlines. Functional needs. Functionally the market segment is likely to utilize the services and even propose the same to new customers who would trust the word of mouth from accomplice than the usually costly and expensive advertisements. This is an effective marketing strategy (Steenkamp & Hofstede, 2002p. 101-120). Considering that different people require different purpose s to meet their demands and needs, Qantas Airlines has invested in flat beds for the flights especially long distance ones by investing in new fleet of Boeings which are ideal for long distances since passengers are likely to get sleep during the flight. Segmentation needs for Qantas Airlines Since Qantas Airlines has already been in the market for over a decade and therefore can be termed as market leaders in the flight industry, they have concentrated in a process of reducing expenses, the company carried out a retrenchment of its employees aimed at reducing the number of employees deemed not very core to the organizations needs and therefore not key staff. The other key cause of market segmentation for the airliner is the need for a consistent and more cash flow (Day, 1980p. 345). Before it undertook the market segmentation exercise, Qantas was facing liquidity problems and for several years that, registered minimal profits. The need for a more efficient service delivery caused the company to seriously consider segmenting the market hence the reason for aiming at market segmentation. The airliner has segmented the market further into: The different seasons as determined by different times. Accessibility of the different customers has also influenced how the market is segmented to favor customers who are easily reachable and those who are hard to reach such as those who live in areas where the airliner does not have offices and at the same time can not book for services online. As a marketing strategy, Qantas Airways has scheduled direct flights to vacation and holidays all over in the world. Market segmentation, for Qantas Airlines has involved dividing the market into the following segments: Key strategies in the marketing campaign includes categorizing such into how similar they are, similar in needs, expectations and are likely to respond similarly to the market segmentations in place (McKenna, 1988p. 57-89). For instance, when Qantas hiked fares for the prestige class and minimized fares for the business class, it was easy for the market to react; this led to improved sales and more bookings. The company has come up with niche markets, such as Africa, Asia and Far East. This led to Qantas Airways to categorize the market into business and private, segments which then fitted the needs of specific customers such as those who take business trips. Advantages. By providing for the segmentation the company customers, the company has achieved efficiency. Efficiency has been achieved in the way the company tapped opportunities in the leisure and summer holiday takers. This led to the introduction of special fare rights as well as introduction of chartered flights aimed at taking the customers to their destinations. The markets were to be exploited exhaustively and the only way of doing it was through the segmentation of the market. By deducing customers needs’ the company was also aiming at maximizing its profits. This significantly improved the markets and led to the improvement of flight bookings. On the other hand the company improved the introduction of cargo flight aimed at tacking the growing demand for air lifting of cargo. To the advantage of the company the segmentation led to the company achieving a marketing edge and becoming one of the most competitive airlines’ both in terms of activity and customer preference. Therefore the company was able to effectively look into the market and attain maximum profits. Another key thing is that, the company was able to maximize on the needs of the company while at the same time satisfying the needs of the customer. The key advantages of the organizations segmentation process. †¢ All target markets by Qantas are accessible. †¢ All the segments by the organization have been curved out to ensure that they are large enough to offer big enough customer subscription. †¢ The reduction of flights to and from the New York route was aimed at concentrating the flight to other markets with loyal clientele. †¢ The reduction of lights which was also seen as rationalization plan affected the Manila, Rome, Bangkok, Taipei, Johannesburg, India, was an direct result of the market segmentation and it has proved worthy while. Qantas market Segmentation was largely necessitated by the collapse of Ansett a major competitor in the Australian domestic flight market. In terms of inventory the segmentation has led to the disposal of 2 B747SP aircraft in 2002 which for the company translated to minimization of cost of repairs. The introduction of an all economy-class aircraft targeted the segment of domestic market as well as off season flights which happen when not so many people are traveling. A segment consisting of flights from Sydney to Melbourne to Sydney to Brisbane and back was introduced since that was deemed ideal for business travel. City Flyer was also introduced to serve the domestic market which is flourishing and its operational costs very low. Market segmentation is a winning strategy as is evident with Qantas, there is a need for other business to borrow from the Qantas example and therefore cash in the strategy which although it involves drastic measures is nevertheless key to organizational marketing and sales strategic plans.

Money and Power in Gatsby essays

Money and Power in Gatsby essays Donald E. Hall, author of Literary and Cultural Theory, comments on, The Freudian construction of women as castrated, inferior versions of men. He writes The penis, which is considered the marker of ultimate value, [is] one the girl lacks and the possession of which she will envy (104-7). In other words, females are not truly envious of the penis, but the power that the penis symbolizes. Upon first reading The Great Gatsby, the reader may think the text is about the Marxist view of how different social classes strive to reach the American Dream. However, the reader will determine the novel is really about Jordan Baker and Daisy Buchanans deficiencies and their lack of power in society. By applying a psychoanalytic analysis, the reader will see how Fitzgerald uses different levels of power between the men and women characters, and how women are willing to cheat and lie to compensate for not having the power or abilities of a man to secure their spot among the aristocracy class. Although Fitzgerald introduces Jordan Baker as a minor character, he uses her character to show the struggle for existence many women have in a mans world. Jordan is a beautiful pro golfer, trying to establish herself in a historically male sport that is hardening her by the tours competition. Her biggest characteristic in the novel is what the narrator describes as being incurably dishonest (58). Fitzgerald writes, At her first big golf tournament there was a row that nearly reached the newspapers a suggestion that she had moved her ball from a bad lie in the semifinal round. The thing approached the proportions of a scandal-then died away (58). By pointing out her cheating, Fitzgerald proves that Jordan is willing to do anything not only to win, but to establish power even if it means cheating and lying. Like to Jordan, Daisy Buchanan is another powerless character who vie...

The Prince of Egypt essays

The Prince of Egypt essays The film Prince of Egypt did a wonderful job at filling in the details of Moses' life. While many scenes were added to the biblical narrative, the film's poetic license needed to create some of the interaction between Joseph and his older brother Ramses in order for the characters to find flesh and blood on the silver screen. Even in animated form, the additional scenes helped the viewer understand that these characters were not just flannel graph images which played out a predetermined and stoic One of these scenes depicts Joseph and Ramses racing through the city streets on their chariots. The competition between the older and younger brothers gave character depth and dimension to the film. Ramses, as the oldest, would have been more ridged, focused on pleasing his father and ultimately replacing pharaoh with all the force and responsibility that his task would require of him. Joseph, on the other hand, could afford to play, and prod his older brother into crossing the lines of "appropriate behavior" for a future pharaoh. The dynamics of their relationship helped form the power of the conflict when Moses returned to lead his people out How would have Moses felt, facing his brother whom he had not seen in 40 years. How would the one who had left in disgrace be able to stand before his brother and insist that Ramses let the strength of Egypt leave under the guidance of Moses staff' The file adds the scene between two of them sitting in the darkened colonnades of the palace. Moses an Ramses talk about their adolescent pranks against the temple priests, and how they loved to, as most adolescent men, play pranks, goad each other into stepping over the lines, and then how they supported the other when circumstances did not fall in their favor. Just as the Cecil B D'Mille film "The Ten Commandments" added the love rivalry between Moses and Ramses ...

How to Write a Resume that Beats the Computers

How to Write a Resume that Beats the Computers Your Resume:   Humans vs. Computers When I give webinars on writing resumes, one of the topics I cover is how to make your resume visually appealing.   I often get this question: Why would I want to spend so much time and money making my resume pretty if it’s just going to confuse the computers? My answer is that yes, the computers are important, and that you ALSO need to have a resume that’s designed to be read by human beings.   We all know that you are most likely to find your job through networking or the â€Å"hidden job market.† When you send materials to someone in your network or to a decision-maker in the hidden job market, you want to include a professional-looking resume.   And when it’s time for an interview, it’s also advisable to have a nicely formatted resume to hand across the table. For those of you who are hoping to get those interviews by applying online, the question still remains: How can I write a resume that makes it past the computers?   In other words:   How can I raise my odds above 2%? Keep reading. There are two issues with submitting online resumes.   One is the format of the resume; the second is the keywords it contains. Formatting for Robots: ATS (Applicant Tracking System) software is not the smartest software in the world.   It gets confused by bullets, non-traditional headings, graphs, tables, and text boxes.   So you need to have a version of your resume that is stripped down and organized just for the computers. We call this your â€Å"text-based† resume. Your text-based resume should follow these guidelines: Create it in (or copy it into) a text editor such as Notepad, SimpleText or TextEdit. Use easily understandable headings like â€Å"Summary of Qualifications,† â€Å"Professional Experience† and â€Å"Education.† Don’t get fancy or creative with your headings, and don’t put two categories together in one section.   Do NOT, for instance, use the heading â€Å"Education Certifications† or â€Å"Skills Interests.† Use dashes or asterisks instead of bullets. List your address in standard â€Å"tombstone† style, one line on top of the next. Put spaces between sections. Here’s what your text-based resume might look like (beautiful, isnt it?): How will you know what keywords to use in your resume? Just because the computers can read your resume doesn’t mean you will have the right keywords to make it past their screening systems. Perhaps counter-intuitively, the keywords that truly make a difference with computer scanners are the ones you have on your resume that not everyone else includes. I have no doubt that you have great experience that qualifies you for many positions. If the computer can understand and rank it properly, it will help you immensely.

Managing Activities Essay Example | Topics and Well Written Essays - 3000 words

Managing Activities - Essay Example Since the team will be working hand in hand with the consumer, then there will be a need for autonomy in work. The divisional head will only be consulted in adverse cases as most of the decisions will be made on sub-divisional levels. However, the divisional head must make sure that all the respective team members perform their tasks. (Eade, 2003) The first issue that will need to be addressed upon creation of the new Division is identification of the product. In this case, the product will be digitalising traditional broadcast methods within the company. The major item in the agenda is transmittance of live shows. Currently, there is a high demand for live reality shows in a variety of media outlets. In order to stay competitive, the company needs to take control of these live media events. Consequently, the company will have to incorporate IT solutions in order to make the transmission process much faster and also to enhance the consumer’s viewing experiences. This will be possible by transmittance of digitally compressed episodes into KYB’s archive centre. This will go a long way in enhancing management of content because it allows the company to improve its live broadcast. At the same time, the company will be providing some of the most valuable information to its employees with regard to the nature of the p rograms on offer. The essence of the program will be to create a digital video storage system for the company. The following objectives will be achieved through this service The latter objectives will be achieved through one of the Digital Video Broadcasting technologies available today. It should be noted that the traditional methods used by KYB will not be undermined or forgotten in this process. As a matter of fact, the service will be demonstrating how traditional broadcasting methods can be merged with modern methods. (Deren and Ward, 2001) This will be implemented through team work amongst stakeholders in the project

International Political Economy Essay Example | Topics and Well Written Essays - 1000 words - 1

International Political Economy - Essay Example This report stresses that growth with inequity is a disadvantage to globalization. There are many opportunities found across borders which always tend to have a great amount of danger of a high economic growth that is surrounded with a lot of inequalities. The inequality is the fact that the wealthy people in the society are normally placed to have access to these opportunities. The economy appears tighter for most of the countries that experience exploitation of labor. This paper makes a conclusion that it is rare for operational definitions to communicate their scope when it comes to the dealing of a topic such as political economy. The definition of globalization is seen as the growth economy of interdependent countries through the increase of volume and variety of the cross-border transactions in goods. There is also the growth of international capital flows and the widespread of technology. The political economy, however, does not sufficiently convey to globalization. However, in future, the global economy will resemble the golden straitjacket. As a result, there are two things that will be a cause of the country putting on the Golden Straitjacket. One of them is that the country’s economy will grow, and its politics will shrink. The Golden Straitjacket tightens the economic and political policy choices of the ones in power to comparatively strong and tight parameters.

Advantages and disadvantages of outsourcing Essay

Advantages and disadvantages of outsourcing - Essay Example Various functions of the business can be outsourced. The function which are most popular in outsourcing are IT functions, customer care, human resource, financial functions, marketing function etc. Nike the famous sports accessories company had outsourced the work of manufacturing shoes to countries like India and China as this will reduce the cost is an example of outsourcing. Off shoring is also a type of outsourcing. When a company outsources its work to other companies which are situated in different countries is known as off shoring. The main off shoring companies are Price Waterhouse Coopers, HSBC, TCS, Wipro, IBM, Capgemini, Genpact etc. the various type of outsourcing are business process outsourcing, knowledge process outsourcing, finance and accounting outsourcing, legal process outsourcing, human resource process outsourcing etc. Outsourcing has resulted in increase in the number of employment. The process of outsourcing mainly consists of four stages they are 1) identifyi ng whether outsourcing is required by the company 2) identifying and selecting the activities which can be outsourced 3) developing the contract 4) delegating the authority to the service provider so that the working can be smooth. The contract contains mainly three things they are the price at which the service will be provided, the legal terms and condition and the service level agreement. Outsourcing can be done by function, region and industry. 2. Growing Importance of Outsourcing With every passing day outsourcing is becoming popular. As per a study conducted by Capgemini more than 70% of executives think that in today’s competitive world outsourcing is important for survival. About 70% executives feel that savings made by outsourcing can be used for growth and 60% feel that flexibility can be achieved through outsourcing. Companies in manufacturing sectors prefer outsourcing more than the companies in service sector. The decisions of outsourcing are taken after assessin g the profitability and companies, ability to grow. Companies who do outsourcing can invest their savings for future growth and innovation. Thus these companies are in better position than the companies who do not do outsourcing as they can save less than the former ones (Brady, 2011). Outsourcing helps the company not only to save money but also to achieve expert service. The firms who do the outsourced work have the human resource who are specialised to do that particular work. In this way the company can utilise expert skill that to without making any capital investment. Thus through outsourcing companies achieve reduction in cost as well as quality service. This is the main reason of growing popularity of outsourcing. Outsourcing is becoming a major business activity which has the potential of becoming an industry. In figure 1 we can see the growth of outsourcing in different sectors. As per the figure about 61% of outsourcing is done in software development, 58% in website and e- commerce, 55% in hosted application, 53% in disaster recovery service and 32% in data centre operations. The use of outsourcing has been increased most in software development organisations. There is almost 14% increase in outsourcing in website and e-commerce sector. The second largest increase in outsourcing is in hosted applications sector. In help desk activities there is no decrease in outsourcing. Thus one can find that every sector is involved in outsourcing. The activities outsourced ranges from

Information Technology Essay Example | Topics and Well Written Essays - 1250 words

Information Technology - Essay Example A major application of information technology is however in business industry in which it has diversified applications such as visual monitoring of people, and processes in a manufacturing enterprise, and online research for customer relations management. One of the most recent technologies in business applications is the Oracle’s Exadata x3-2 that I wish to discuss in this paper. I explore the technology’s technical description and its business impacts. Exadata x3-2 is one of the recently developed Information Technology applications for managing online transactions. It was developed as an improvement to available data analysis and administration applications, and some of its major characteristics include advanced scope of information processing, and security of databases. Its features identify the technology’s technical description from three perspectives; how it works, what it does, and why it does the tasks (Oracle, 1). The technology works through an integrated system of software and hardware that processes, and communicates data. Like other analytical applications, stores and evaluates data to responds to prompted queries. (Oracle, 1). The technology offers a high-level security, â€Å"high availability, and scalability† of data and offers more opportunities for deriving benefits from Oracle system (Oracle, 1). It also responds to prompted query in its information extraction and processing. The technology’s efficiency also ensures faster response to prompts. It further compresses data and therefore economizes storage space and cost besides facilitating data backup. Lastly, the technology facilitates linkage of databases (Oracle, 1). Exadata x3-2 has been successful because of its features that meet technological demand in the market, and which establishes it among alternative technologies. This has led to its successful launch and

A REPORT ON RELEVANT ASPECTS OF SUPPLY CHAIN MANAGEMENT ON A PROPOSED Essay

A REPORT ON RELEVANT ASPECTS OF SUPPLY CHAIN MANAGEMENT ON A PROPOSED RESTAURANT AT NOSTOVIA AIRPORT - Essay Example 3). Hence, supply chain management is the strategic, systemic coordination of the traditional business functions alongside the tactics across these business functions for the purposes of improving the long-term performance of the individual companies as well as the supply chain as a whole (Hugos 2006, p. 3). Supply chain involves the networks of companies working together and coordinating their actions in order to deliver a product to a market. It acknowledges and applies traditional logistics and includes activities such as new product development, marketing, finance, and customer service. Supply chain management views the supply chain in an organisation as a single entity, and brings the system approach in managing the diverse activities needed to coordinate the flow of services and products in order to serve the customers (Hugos 2006, p. 4). The proposed restaurant needs to structure a plan. This refers to all the operations needed in planning and organising the operations. Three operations in this category are demand forecasting, product pricing, and inventory management. As the proposed restaurant needs planning, it also needs sourcing. Source includes the necessary activities in acquiring the inputs to create products or services. Two operations are involved here, particularly (1) procurement and (2) operation, credit, and collection. Procurement is the acquisition of materials and services, while operation, credit, and collection can be literally thought of as the acquisition of cash (Hugos 2006, p. 45). "Making" as a category includes the operations required in developing and building the products and services provided by a supply chain. Operations in this category involve product design, production management, and facility of management (Hugos 2006, p. 45). On the other hand, "Delivering" as a supply chain category encompasses the activities that include receiving customer orders and delivering products to customers. The operations that constitute the core connections between companies in a supply chain are management, product delivery, and return processing (Hugos 2006, p. 45). The illustration below best describes the coordination among Planning, Sourcing, Making, and Delivering (Hugos 2006, p. 45), which will be applied to the proposed restaurant at the New Nostovia Airport: Supplier Strategy Supplier strategy is one aspect of the establishment of the new restaurant business that needs immediate attention. This involves decisions on how suppliers are selected and how relationships with them are developed (Galloway, et al. 2000, p. 46). It is also concerned with how the operation monitors suppliers' performance as well as improvement of these performances. Recommendations in Respect of Perishable Foodstuffs With Short Shelf Life A guaranteed supply of fresh high quality food is crucial to maintain a chain's reputation in the restaurant business (Galloway, et al. 2000, p. 46). The freshness and quality of perishable foodstuffs with short shelf life is affected by the manner they were handled during the harvests,

Sociology and Class Essay Example | Topics and Well Written Essays - 750 words

Sociology and Class - Essay Example However the Marxist theory of racism bases racism on another interesting premise. The class conflict where as the Proletariat (the working classes mainly composed of the Black and ethnic minorities) will be suppressed by the Bourgeoisie (the ruling classes primarily composed of the White majority who will be economically stronger and thus in a position to marginalize the "proletariat" i.e. the Black minorities) Today the modern African American can be identified with the likes of Opera Winfrey and Barrack Obama, as well as highly educated Hollywood stars like Will Smith etc.This denotes a respectable status for them but academics like in the Article at hand are quick to point to the reality of the ghettos and poor uneducated members of the ethnicity who live on low pay differentials. From the Marxist sociological perspective these economic and wage differentials are responsible for the continuous racial tensions in states like Los Angeles which have a large number of minorities settled there.Most of this crime and disorder is based upon race and ethnicity. The current racial tension is not just the usual white-black conflict but now statistics show that the local African American Population feels economically threatened by the immigrants that come from Latin America. As the article notes the root of most of the violence and unemployment in the Ghettos is poverty and increased immigration. Things are further complicated by racist judicial and law enforcement mechanisms which promote the gang culture and lure poverty stricken and suppressed young people into crime and disorder. The economic and sociological conflicts with in the "proletariat" (working classes) lead to ethnic squabbles between and with in the suppressed minorities in the over crowded metropolitan cities and it is worth noting from a political perspective that the black Latino rivalry for economic opportunities means that in 2008 presidential race there is not Latino support for Mr. Obama. Unemployment has caused a deterioration in race relations based on unequal wealth distribution and the fight for survival within the marginalized groups.As long as these minorities remain economically and socially suppressed there is little chance of reducing these tensions. There is a need for sustainable community measures to counter the problems in this area of racial economic conflict aimed at better race relations. All this however keeps us wondering whether these sociological conditions exist for their own sake or is the conflict theory " a Marxist ideological ploy" which divides the lower classes so that the White and Black and working classes from other races fight each other instead of the bourgeoisie.However one never fails to reflect on the political system and the society which seems to adhere to the well known rhetoric of George Orwell in his well known parody of the Communist Manifesto and the Marxist ideals of race and class i.e. the "Animal Farm" where he stated that , "All animals are equal but some animals are more equal than others". Source: Materials provided in

A REPORT ON RELEVANT ASPECTS OF SUPPLY CHAIN MANAGEMENT ON A PROPOSED Essay

A REPORT ON RELEVANT ASPECTS OF SUPPLY CHAIN MANAGEMENT ON A PROPOSED RESTAURANT AT NOSTOVIA AIRPORT - Essay Example 3). Hence, supply chain management is the strategic, systemic coordination of the traditional business functions alongside the tactics across these business functions for the purposes of improving the long-term performance of the individual companies as well as the supply chain as a whole (Hugos 2006, p. 3). Supply chain involves the networks of companies working together and coordinating their actions in order to deliver a product to a market. It acknowledges and applies traditional logistics and includes activities such as new product development, marketing, finance, and customer service. Supply chain management views the supply chain in an organisation as a single entity, and brings the system approach in managing the diverse activities needed to coordinate the flow of services and products in order to serve the customers (Hugos 2006, p. 4). The proposed restaurant needs to structure a plan. This refers to all the operations needed in planning and organising the operations. Three operations in this category are demand forecasting, product pricing, and inventory management. As the proposed restaurant needs planning, it also needs sourcing. Source includes the necessary activities in acquiring the inputs to create products or services. Two operations are involved here, particularly (1) procurement and (2) operation, credit, and collection. Procurement is the acquisition of materials and services, while operation, credit, and collection can be literally thought of as the acquisition of cash (Hugos 2006, p. 45). "Making" as a category includes the operations required in developing and building the products and services provided by a supply chain. Operations in this category involve product design, production management, and facility of management (Hugos 2006, p. 45). On the other hand, "Delivering" as a supply chain category encompasses the activities that include receiving customer orders and delivering products to customers. The operations that constitute the core connections between companies in a supply chain are management, product delivery, and return processing (Hugos 2006, p. 45). The illustration below best describes the coordination among Planning, Sourcing, Making, and Delivering (Hugos 2006, p. 45), which will be applied to the proposed restaurant at the New Nostovia Airport: Supplier Strategy Supplier strategy is one aspect of the establishment of the new restaurant business that needs immediate attention. This involves decisions on how suppliers are selected and how relationships with them are developed (Galloway, et al. 2000, p. 46). It is also concerned with how the operation monitors suppliers' performance as well as improvement of these performances. Recommendations in Respect of Perishable Foodstuffs With Short Shelf Life A guaranteed supply of fresh high quality food is crucial to maintain a chain's reputation in the restaurant business (Galloway, et al. 2000, p. 46). The freshness and quality of perishable foodstuffs with short shelf life is affected by the manner they were handled during the harvests,

BUS503 - Org. Change and Transformation Mod 4 SLP Essay

BUS503 - Org. Change and Transformation Mod 4 SLP - Essay Example ices, structure and leadership of the organization, redesign of the upper management structure, improving the accountability of present leadership, full evaluation of external factors relating to staff going elsewhere after training, and becoming a learning institution with good knowledge management. These are not easy changes and the commitment to make such changes must come first (Banker & Alban, 1997), as the configuration of the organization is changed. This is an organization in trouble at this time and it is very possible that the Human processual approach will not help at this time due to the slow incremental scale of the change. This change needs to happen more rapidly. The technostructural approach will need to be used to approach the changes in accountability for the different jobs and the job descriptions. The structure of the organization must change, removing silos and building a team structure. Multi-faceted approaches include as many different groups as possible and the is the approach that will need to be used most often here. There are many departments in a hospital and they all depend on each other to provide quality patient care. It will be important to include each of these departments in the process of change or run the risk of on providing a change that does not completely blanket the institution (Caluwe & Vermaak, 2004). The large groups approach will need to work hand in hand with these multi-faceted groups. All of the symptomology noted in the original case study relate to such things as external environment, leadership, organizational culture and structure as well as management practices. The Burke- Litwin model best suits this case because it incorporates all of these variable. The suggested changes in this paper are designed from the needs shown in the original study and the ability of the Burke-Litwin model to deal with those. With those things in mind, the management structure must change, the senior team needs updated management

Multibacillary Leprosy (MB) Case Study

Multibacillary Leprosy (MB) Case Study 1.0 Summary of scenario and potential consequences This case is based on a 32 year old female with multibacillary leprosy(MB). Leprosy, also known as Hansens disease, is a chronic infective disease caused by acid-fast, gram-positive Mycobacterium leprae (M.leprae). Several modes of transmission have been suggested such as skin contact and sexual activities but the primary mechanism is via air by mouth and nasal discharge of untreated infected people. Leprosy can be considered in two parts in which the first milder form involves infection of superficial tissues such as skin. This indeterminate state is usually surmounted by human body eliciting sufficient immune response, with approximately 95% people being not susceptible. Nevertheless, if the body produces too high or too low a response, the second more severe form develops and progresses leaving deformities in areas such as skin, nervous system, mucosa, limbs and eyes. Thus, depending on the patients immune response, leprosy is classified by the World Health Organization(WHO) into MB in which the bodys defense system is ineffective, and paucibacillary leprosy(PB) which produces aggressive response.1 In terms of skin smear tests, MB which has large number of bacteria in skin lesion would produce positive results while PB produces negative results. Another type of classification known as Ridley-Jopling classification divides leprosy into 5 stages; tuberculoid(TT), borderline tuberculoid(BT), midborderline/borderline(BB), borderline lepromatous(BL) and lepromatous(LL) leprosy in which the latter three are the equivalent of MB. In 2009, leprosy cases were reported in 121 countries.3 Based on WHO figures, the number of new cases detected in 2008 was 249007 while the registered prevalence of leprosy worldwide at the beginning of 2009 was 213036. Although there has been a steady fall in the number of new cases detected annually, leprosy remains a global threat. In terms of signs and symptoms, those possibly encountered are numbness, nasal discharge and various kinds of lesions, macules, nodules and papules. More severe symptoms may be diffuse skin thickening, eye lesions leading to cataract, secondary infection and nerve lesions. Although leprosy can affect all people, various specific factors predispose to leprosy. Firstly, leprosy typically affects people living in tropical and subtropical climate such as Africa and South East Asia. People in endemic areas as well as the poor and marginalized community are at greater risk of contracting leprosy. In terms of age, leprosy demonstrates an age-related pattern with peak incidence in children below 10 years old and mid thirties while rarely acquired by infants.2 Besides that, men are generally more susceptible than women and genetic factors may play a role too. Despite years of incubation period, the differential diagnosis of leprosy is vital because the treatment duration is prolonged. Also, an accurate diagnosis helps in determining the appropriate and effective treatment. In vitro culture of M.leprae is not feasible given the extremely slow growth rate. Methods that can be used include skin lesion biopsy and nasal smears done using Fites acid fast tissue staining which stains the bacilli red in a blue background or using Hematoxylin and eosin stain (HE) for histological confirmation.2,4 The number of bacilli visible will denote the type of leprosy. Additionally, phenolic glycopilid-1(PGL-1) characteristic of M.leprae can be distinguished using serology techniques. Given its low mortality rate, leprosy confers debilitating repercussions nevertheless both physiologically and psychologically. Leprosy causes hypoesthesia due to impaired peripheral nerve function, muscle weakness as well as glaucoma, iridocyclitis and inflammation of the eye. As a result, patients are prone to injuries due to diminished vision, and inability to feel and control the body. The incidence of ocular problems is markedly elevated and treatment has proved to reduce prevalence of these complications as described by Gupta et al, whereby 66.3% active leprosy patients manifested ocular problems compared to cured patients at 14.3%.5 If blindness occurs, the relative death risk in blind patients compared to non-blind patients augments by 4.8fold.6 Additionally, leprosy causes clawed fingers and toes, hypopigmented skin lesions with severe ulcerations especially on feet and hands, and facial deformations. These disabilities occurs more frequently in MB patients than in PB patients,5,7 and it was suggested that MB patients have higher risk of death compared to PB patients; the average death age being 5 years younger.8 Contrasting prevalence of deformities was concluded in different studies which includes 56.97%,7 82.4%,9 84.4%,10 67%11 and these differences may be the result of improper examination technique or dissimilar grading criteria. However, the point to note here is that all studies acknowledge the severity of this disease. Apart from imposing restrictions on physical mobility, such immensely conspicuous debilities have led to a stigma linked to leprosy. Leprosy patients are often subjected to public prejudice and discrimination, leaving them significantly affected both socially and economically. Therefore, accurate diagnosis and aggressive commencement of leprosy treatment is essential to improve patients quality of life and to decrease mortality rate. 2.0 Treatment options 2.1 First line therapy The current first line therapy include dapsone, rifampicin and clofazimine. Dapsone is a bacteriostatic antibacterial active against M.leprae. Its good oral bioavailability allows its administration in tablet form. However, dapsone monotherapy is no longer used as several studies have established profound drug resistance.12,13,14 Following this, WHO recommends the use of three drugs; dapsone, rifampicin and clofazimine, administered as multiple drug therapy(MDT) for MB.1 Supporting this is a systemic evaluation by Kundu et al. which compared dapsone monotherapy to MDT and proved that MDT was significantly superior with capacity to prevent dapsone resistance.15 The current MDT dosing is dapsone 100mg and clofazimine 50mg daily self-administered, and rifampicin 600mg and clofazimine 300mg once monthly supervised. Several studies have shown that MDT is effective in eliminating leprosy with low relapse rates.16,17,18,19 For example, Georges et al. demonstrated that patients treated with MDT until bacterial clearance showed no validated relapses in the follow up period between 4 months to 5 years and 10 months.16 If adverse effects or contraindication occurs resulting in MDT termination, WHO recommends alternative regimen.20 However, it is vital to ascertain conclusively that the negative effects are due to MDT. Dapsone should be terminated immediately if patient develops adverse effects such as Dapsone Hypersensitivity Syndrome (DHS), with rifampicin and clofazimine continued at usual dosages. The use of only rifampicin and clofazimine was proven effective for dapsone intolerant patients as described by Sapkota et al.21 These patients treated for a mean duration of 15 months post-dapsone cessation showed steady decrease in mean bacteriological index(BI). Next, if rifampicin is ill-tolerated, alternative therapy comprises clofazimine 50mg, ofloxacin 400mg and minocycline 100mg daily for six months, followed by clofazimine 50mg combined with either ofloxacin 400mg or minocycline 100mg for at least 18 months; given under supervision. Ji et al showed that ofloxacin eliminated 99.99% rifampicin-resistant cells after 22 doses in two months.22 Finally if clofazimine has poor acceptability, MDT can be replaced with ROM comprising rifampicin 600mg, ofloxacin 400mg and minocycline 100mg given monthly for 24 months. In a field trial in Senegal, patients on ROM showed satisfactory progress with exceptional compliance(>99%) possibly attributed to the simpler monthly dosage.23 This combination was further advocated by S. Ura24 and Villahermosa et al25 which compared 2 years ROM treatment with MDT. The studies concluded that both therapy depicted similar advantages regarding their effect on BI, their safety and tolerability. The latter study also showed no relapse after follow ups 5 years later or more. 2.2 Second line therapy Ofloxacin and pefloxacin are broad-spectrum flouroquinolones used as second line therapy for MB. They are bactericidal acting via inhibiting enzyme DNA gyrase required in DNA replication. Patented in 1982, ofloxacin has been reported to have profound effects on leprosy. A clinical trial executed by Ji et al showed killing of more than 99.99% of viable M.leprae in skin smears inoculated into mouse foot pad, with significant clinical improvements by day 56 of therapy utilizing 400mg ofloxacin daily.26 Also, its effect was not enhanced when combined with clofazimine and dapsone. A similar study by Jianping et al which also utilized mice footpad inoculated with leprosy patients skin biopsies had analogous findings, with no M.leprae growth detected.27 These studies supports the notion that ofloxacin possesses strong bactericidal activity. Comparing pefloxacin to ofloxacin, it was found that pefloxacin was less active, requiring 150mg/kg to exert bactericidal effect compared to 50mg/kg fo r ofloxacin.22 Although minimal side effects were encountered in these studies, the short duration of therapy will not vouch for this as severe adverse reactions have been reported including tendon damage, peripheral neuropathy, cardiovascular toxicity and hepatotoxicity. Moving on, the broad spectrum minocycline is a tetracycline antibacterial which can be used in patients intolerant to dapsone or clofazimine.28 In a clinical trial by Fajardo et al, patients treated with 100mg daily minocycline for 6 months followed by WHO MDT manifested distinct clinical improvement within the first month with negative PGL-1 antigen at the end of 6 months treatment.29 However, it has been reported that minocycline induce hyperpigmentation which resulted in termination of therapy.30 This side effect ought to be considered particularly when minocycline is used to replace clofazimine. In terms of bactericidal activity, minocycline is considered more effective than clarithromycin, but significantly diminished activity compared to rifampicin. Next, clarithromycin is a bactericidal macrolide which suppresses bacterial growth by preventing its protein synthesis. A few clinical trials have shown the advantages of clarithromycin including its capability to kill M.leprae, considerable clinical improvement, patient acceptability and minor adverse effects.31,32 Daily dosage of 500mg revealed killing of 99% bacilli within 28 days and 99.9% by day 56.32 However, limited studies with clarithromycin for leprosy use have been done. Until further researches are carried out, clarithromycin remains the second line treatment for multibacillary leprosy. Since the past two decades, concerns over established dapsone resistance and increasingly emerging rifampicin resistance have set interest on use of either thioamide or clofazimine concurrently with rifampicin. However, clofazimine was chosen by WHO due to reports of hepatotoxicity when thioamides were used with rifampicin.33,34 Nevertheless, ethionamide and prothionamide are two thioamide drugs being investigated currently as monotherapy for leprosy treatment. Although mainly used for tuberculosis therapy, both drugs have been shown to exhibit significant anti-leprotic activity based on a clinical trial by Fajardo et al.35 Treatment was well tolerated for both drugs with a clinical progress of 74% and 83% respectively. Prothionamide was found to be superior to ethionamide and the overall efficacy of both drugs was similar to that of dapsone and clofazimine. However, they were less efficacious compared to rifampicin, ofloxacin, pefloxacin, minocycline and clarithromycin. They are al so more expensive than dapsone. Consequently, thioamides are generally not recommended. Finally, rifampicin and Isoprodian comprising dapsone, prothionamide and isoniazid were used in Malta Leprosy Eradication Project(MLEP).36 During the 30-year project, the leprosy prevalence steadily declined with exceptionally low degree of relapse and toxicity. It was suggested that treatment with two Isoprodian tablets daily and 600mg rifampicin tablet completely eradicated leprosy from Malta. This may well set the baseline for leprosy treatment. However, Isoprodian being not readily available became a drawback in proceeding with this therapy. Also, the MLEP posed several limitations including the confinement of the project to a relatively small area which hinders its feasibility in larger areas. Additionally, the fact that leprosy was already declining in Malta before the project commenced in 1971 raised questions over the true effect of the therapy on leprosy elimination. 3.0 Treatment recommendation and supporting evidence After discussing the treatment options available, 24 months MDT is recommended for the 32 year old female patient in this case. This decision is made based on the evidences presented previously on efficacy of MDT and also the fact that not many reliable studies have been conducted on other alternatives. The clinical pharmacological principles of each MDT drug and more evidences will be presented in this section to justify the recommendation. Firstly, dapsone is an established anti-leprotic agent acting via preventing dihyrofolic acid formation thus inhibiting nucleic acid synthesis crucial for M.leprae development. In terms of adverse effects, dapsone has been associated with side effects such as methaemoglobinamia, haemolysis, allergic rhinitis, neurophaty, aganulocytosis and DHS consisting Type 1 reversal reaction and Type 2 erythema nodosum leprosum (ENL) reaction. However, at doses used for leprosy treatment, these side effects are uncommon.37 Besides, DHS can be ameliorated with corticosteroid therapy. In order to curb resistance against dapsone, it should be used concomitantly with rifampicin and clofazimine as MDT. Also, there has been evidence of significant decline in frequency and seriousness of Type 1 and 2 reactions in patients on MDT, possibly due to rapid arrest on leprosy progression and clofazimines anti-inflammatory action.20 Next, rifampicin is an antibacterial which plays a major role in inducing rapid M.leprae cell death by inhibiting RNA polymerase involved in protein synthesis. Rifampicin has good oral bioavailability as it is readily absorbed from the gastrointestinal tract. A monthly 600mg dose is highly bactericidal and is almost as effective as rifampicin given daily as subsequent doses do not augment killing rate proportionately. Thus although rifampicin is expensive, a monthly dose contributes to its cost-effectiveness, feasibility and compliance.20 The downside of rifampicin is that adverse effects such as hepatotoxicity have been reported thus requiring frequent liver function tests and blood tests to detect liver impairment. Other common side effects include gastrointestinal disturbances, fever, headache and rashes. Also, being a liver enzyme inducer, rifampicin upregulates cytochrome P450 resulting in enhanced metabolism of many concomitantly administered hepatic cleared drugs. However, th is effect is relatively minimal due to its once monthly dosing. Furthermore, though rifampicin increases dapsone clearance rate, no changes in dose have been necessary as concluded by Pieters et al.38 Interaction with clofazimine is also not likely as rifampicin lack tendency to accumulate in tissues due to its relatively short half life (2-3 hours) compared to clofazimine (70 days). The third drug used in MDT is clofazimine which based on the MDT dosage is the most well-tolerated amongst the three drugs and is practically non-toxic.39 It is a bacteriostatic antibacterial which has predilection towards mycobacterial DNA and inhibits bacterial growth. A mere 300mg loading dose once monthly may well serve as a repository to maintain sufficient drug in the body.20 However, the downside to its use is that some 75-100% patients encounter pink colouration of the skin, but this side effect is reversible months after stopping therapy.40 Given its efficacy yet without serious adverse effects as proven by various studies and clinical trials, it would be obvious to use clofazimine as part of MDT.41,42,43 In terms of duration of MDT, the recommended duration of MDT has been constantly. WHOs previous recommendation of 24 months therapy showed high efficacy with very low relapse rate. However, in the Seventh Expert Committee(1997), the duration of MDT was shortened to 12 months.1 A study conducted by Sales et al. showed that the decline in bacillary index and occurrence of adverse reactions was analogous for both 12 and 24 months MDT.44 However, this was opposed by US National Hansen Disease Program (NHDP) which stands firm with 24 months MDT with the perspective that more vigorous and longer treatment duration generates higher efficacy with lower relapse rate.28 It also mentioned that the 12 months MDT recommended by WHO was due to cost consideration in developing countries. Besides that, based on the BNF, treatment for at least 2 years is necessary for MB.37 The fundamental objective of leprosy therapy is determined by the relapse rate and degree of disability. Having said so, many studies have showed that the relapse rate after completion of MDT for 2 years yielded either zero or very low relapse rate.45,46,47,48,49,50 These studies are parallel to a long term follow-up by Shaw et al45 which proved zero relapse using this regimen and also by a retrospective analysis conducted in China by Shen et al47 which showed that out of 2374 patients followed up for a mean of 8.27 years, five patients had relapse resulting in a relapse rate of 0.21/1000 person-years. Another basis for the 24 months MDT was the review by WHO which revealed a very low relapse rate of 0.9/10 000 person-years in analysis of more than 20,000 MB patients.49 Furthermore, Katoch et al reported that follow-up conducted between 12-44 months after MDT treatment revealed deterioration in patients who received only 12-18 months treatment and continuous improvement in those giv en 24 months therapy.51 Thus, a 24 months MDT treatment would be the wise choice for this patient. Bearing in mind that this patient is a 32 year old female who is at her child bearing age, it is paramount to ascertain if she is pregnant or lactating. Extreme caution should be undertaken if she is pregnant or lactating, taking into account risks-benefits of leprosy treatment. Several studies have demonstrated adverse effects encountered by pregnant and lactating females such as relapse, type 1 and 2 dapsone reactions and peripheral neuropathy following therapy and are thought to be due to suppression of immunity during pregnancy and breast-feeding.52,53,54However, some studies have showed that these drugs can be used safely during pregnancy.20,55 Thus, although MDT may incur risks to pregnancy and exacerbate leprosy, a well-organized health plan, frequent and regular supervision may well outweigh the risk with its potential benefits.4,54 Also, effects of MDT on lactating is very minor. Although significant amount of dapsone is found in breast milk, its risks to infants are very m inimal. In contrast, the quantity of rifampicin in milk is too small to be harmful to the baby. Likewise, only minute amounts of clofazimine are excreted through breast milk and thus far there have not been reports on severe negative effects on breast-feeding except minor skin discolouration of infant. All in all, treatment using 24 months MDT has proven highly successful with rapid conversion of disease state from infectious to being non-infectious even after the first dose. MDT remains the ultimate option due to its apparent benefits of curing and stopping transmission of leprosy, its virtually zero relapse rate, minimal side effects, ease of administration and storage, cost-effectiveness and vast clinical evidences. Additionally, patient and public education is vital to aid patient compliance and improve understanding on leprosy. In this context, health professionals carry tremendous responsibilities in giving social support and psychological rehabilitation to help patients cope with the physical and mental distress caused by the disease as well as curing the stigma of leprosy.