Innovation and Entrepreneurship Case Analysis on Aravind Eye Care Essay

Innovation and Entrepreneurship Case Analysis on Aravind Eye Care System model - Essay Example This business model mainly targets Tier 4 consumers as exhibited by The World Economic Pyramid shown in Appendix 1. According to Prahalad & Hart (2002), Tier 4 consumers are mainly comprised by two thirds of the world’s population and these people are very poor since they survive on less than $1 per capita per day. In this case, it can be observed that Aravind Eye Care System is more concerned with the welfare of the people as a result of their level of income. However, the main challenge of this business model is that doing business in the world’s poor requires radical innovations in technology and business models. For instance, Prahalad & Hart (2002) posits to the effect that Tier 4 communities are often physically and economically isolated which entails that distribution and communication systems are essential for the development of the bottom of the pyramid model. Entrepreneurs targeting the consumers belonging to this category should make sure that their business m odels reflect the needs and interests of the targeted people. Business models that do not reflect the needs and interests of the targeted people are likely to face challenges since there may be a tendency by people to shun the services offered. A business model that is customer oriented is likely to appeal to the interests of many people. 2. The Aravind Eye Care System is driven by demand pull which is an opportunity for venturing into business. Basically, entrepreneurship is mainly concerned with recognizing as well as satisfying the opportunity while at the same time building something of recognised value. This entails that innovation is something the entrepreneur is continually doing (Burke, 2006). Dr V as he is affectionately known recognises the demand for eye care and is motivated to pursue a dream of venturing into business meant to eradicate all needless blindness in India among the poor. His business model is built on the nature of the demand that exists in poor communities in India. According to Lamb et al (2008), entrepreneurs are supposed to add value when they recognize a demand for a particular service. In order to design the business model to fulfil this demand, creativity is required in order to effectively satisfy the needs of the people targeted. The 4 P's of innovation namely: paradigm, position, product, process are often taken into consideration when designing a system that is meant to fulfil the demand that has arisen in the market. Nieuwenhuizen (2004) suggests that successful entrepreneur should idealise the main opportunity behind the business venture. This allows him to come up with an effective position of the product or service to be offered. This entails that the product should be carefully defined such that its design can appeal to the interests of the targeted people. The process of designing the product or service is ongoing and is characterised by pro activity, achievement orientation as well as locus control and human relation s (Nieuwenhuizen, 2004). The information management model might be useful in supporting decision making in this case. The model of information management can significantly contribute to improved decision making in business given that the success of any business can be attributed to the quality of information used when making important decisions. There is no business that can properly function without correct information (Kritzinger, Bowler & Goliath, 2003). Through information manag

Report question about AMR-US Airways Assignment Example | Topics and Well Written Essays - 750 words

Report question about AMR-US Airways - Assignment Example Fuel volatility is bad for the airlines because it reduces airline revenues, trust fund revenues, and access of passengers to the national aviation system. The domestic passenger traffic, reduces by 9% overall. Some airlines in the US decrease of 25%. These decreases declined the revenue of airports, prompting the airports to cut their operating costs, and hold the capital improvement projects. Price fluctuation also led to airports to reduce their airline capacity causing some of the passengers to lose access to the services of commercial air. This is due to increased fares in the passenger market. Smaller airports with fewer flight options, has the largest percentage decrease in their nonstop destinations as well as their reduction in capacity. Therefore, when the price of fuel fluctuates, Trust Fund revenues will fall, thereby contributing to a decrease in the funds non-committed balance (Lehman, 67). The Cost per ASM is computed by calculating the operating cost by the available Seat Miles that an online provides each year, this will vary with capacity. A quick analysis of the ASM from the company shows that the overall capacity has increased since. This explains the reducing Cost of ASM. On the other hand, the operating expenses have increased sharply since. Therefore, CASM for the 3month ending 2013/06/30 The Revenue Seat Miles is the distance an airplane flies times the passenger’s seat available for the passengers (Ones, 76). RSM is normally referred as the available seat miles. Therefore, the operating Cost per Mile is calculated as The difference between the two numbers is calculated as 926 The US Airways: The total operating cost in the 2nd quarter was recorded in $3.4m, this was a one percent increase compared to the previous year. The operating Cost per available seat mile was recorded are 12.88 cents. This was down 2 % on a 4.2% rise in the airlines ASM. When special items like profit and fuel sharing are excluded, the airline’s CASM becomes 8.21 cents. The 8.21 cents is a 0.4% decrease in CASM compared to the previous year. The merger will benefit the firms because it would generate it would raise more than half a billion dollars to the consumers and firms as well. Additionally, the merger will provide an effective competitor to some of the leading companies in the industry (Ones, 76). This will reduce competition by sidelining the market from creating competitive and new flight options for the passengers (Nutriment, 88). Consequently, the merger would result in cutting of services and raises the domestic fares. Also, the merger would be beneficial to the firm because it would result to a more competitive airline industry thereby giving the passengers more choices (Lehman, 67). Also, the merger would bring about the most competitive development in the airline industry. It is in the same dimension that FTC allowed UA-CO merger. However, the FTC is discouraging AA-US merger because the merger would reduce the le gacy carrier number from 4 to 3. This would increase the chances of coordinated professionalism among the airlines. This will lead to higher fees, fare, and diminished services. Therefore, blocking the merging of the two airlines will loosen the competition. This will prolong the cycle of the crisis to the passenger’s detriment, to the US airways, and also to the employees