McDonalds Brand Essay -- Fast Food Empire, Hi-Fat, Hi-Sugar

Much like a smile, the â€Å"Golden Arches† can be understood in any language. The McDonalds brand is the most well-known, internationally embraced fast food empire. McDonalds operates over 31,000 franchises throughout the world, with the United States leading the way with a whopping 13,381outlets as of May 2009 [1]. McDonalds has the fast food market cornered, offering an increasing variety of food of beverages, marketed to people of all ages to eat at any time of the day. However, being a corporate giant has its issues. McDonalds has faced a lot of criticism for its high-fat, high-sugar, potentially addictive menu. While the corporation is not likely to outright admit responsible for its actions, McDonalds has seen some changes to address some of the issues. Despite the flaws in the public elements of the brand, McDonalds has established an almost recession-proof economic base [2]. Some of the benefits of the McDonalds brand are pretty obvious. The golden arches and the mascot Ronald McDonald have some the best recognition worldwide. This stems from the benefit of having global operations and the availability of culturally diverse foods that are provided based on the location of the restaurant [3]. McDonalds also utilizes installations in prime locations such as theme parks, airports, superstores and even in hospitals. The business is ranked number one in Fortune Magazine's 2008 list of most admired food service companies [4]. McDonalds is also associated with cheap prices, good tasting food and fast service. McDonalds also maintains a strong community oriented vibe with its Ronald McDonald Houses which provide charitable services to families with sick children requiring extended hospital stays (www.rmhc.org). McDonalds also sponso... ...y are creating "cradle to grave" marketing, entice children as young as one year old with special meals, toys and playgrounds then children grow up eating McDonalds which continues into adulthood. [4] They have also been sued multiple times for having "unhealthy" food, allegedly with addictive additives, contributing to the obesity epidemic in America. McDonalds is a strong company that has been around a long time and is ingrained into the memories of many people. They have indisputably strong brand recognition and loyalty. However, it may be time for McDonalds to undergo a makeover, especially in the areas of quality and their link to health concerns. It is pretty clear that McDonalds isn’t going bankrupt anytime soon. McDonalds has the ability to do good things for the world if they exchange some of their money saving ways more socially responsible practices.

Development of the American Experience, Thomas Jefferson

This passage is found on page 136, left column, fourth paragraph. This passage is used by Thomas Jefferson to argue on the necessity of establishing a government to replace the old structure of governance erected and maintained by the British crown. The passage establishes the basis for the dissolution of the American people’s â€Å"political bands†(Jefferson 136) and affiliation with Great Britain by stating that although changes in the government should never be taken lightly, it is unfortunate that many people are likely to prefer and even tolerate the wrongdoings and evil deeds promoted in the existing system for the sake of familiarity.In general, people are afraid of the disruption brought about by systemic changes because they are afraid of uncertainty. However, they have to realize that it is their right to initiate changes in terms of government when there is enough reason to do so, such as wanton abuse of power of leaders or corrupt practices or â€Å"wheneve r any form of government becomes destructive† or poses a hindrance to the achievement of human rights to â€Å"life, liberty, and the pursuit of happiness.† (Jefferson 136)Jefferson observes that the prevailing conditions under the governance of the â€Å"present king of Great Britain† points to such circumstance of â€Å"injuries and usurpations† (Jefferson 137) which have severely impeded the political and social life of the American people. Clearly, Jefferson uses this line of argument to convince the people of the morality of self-governance and of declaring independence vis-a-vis the state of being enslaved and virtually dependent on the British for political, social, and economic sustenance.By acknowledging the doubts and difficulties that surround the decision to break the ties with the long time British ruler, Jefferson and his followers wanted to arouse a sense of righteous anger in the face of the historical abuses committed by the king and his g overnment. For instance, he reminds his audience of how the British king has â€Å"plundered our seas, ravaged our coasts, burnt our towns, & destroyed the lives of our people.† (138)In effect, Jefferson encourages his audience to rise up against the tyrannical form of government imposed by a foreign ruler through the systematic use of violence and violation of human rights. In bringing up the general hesitance of the populace, Jefferson mocks and prods them into recognizing the validity of separation and of establishing their own government as a last resort in the face of the continued refusal of the British king to petitions for redress.(139)It is evident from Jefferson’s â€Å"The Declaration of Independence† that the need to form an independent government is made inevitable in order to protect the inherent rights of the American people from another government which is exploitative and tyrannical. Undoubtedly, it is through this concept of tyranny in governan ce that societies are able to form their own distinct ideas of what a government or the state of social relations should be like.Thomas Jefferson would later expound on the meaning of tyranny through religious bigotry and intolerance when he proposes the passage of an act to establish religious freedom as a human right. (141) The necessity of enacting legislation to prevent religious tyranny, which presupposes the superiority of a single religion over others and promotes the propagation of religion through coercion and imposition of religious ideas and opinions over others, shows that the government functions as a regulatory mechanism for guaranteeing human rights, including ensuring that one’s human right does not deprive another of his or her rights.Thomas Paine argues, for instance, thatâ€Å"government, even in its best state, is a necessary evil† (133) to demonstrate that government only becomes a social necessity when the members of society have become too corrup ted and too selfish so that they must be forced to acknowledge and perform their obligations toward others in order to experience peace and security, or when the people experience misery because of the intrusion of the government of another people.In many ways, both Jefferson and Paine’s conception of the role and relevance of the government as a social institution bears resemblance to the concepts explored by Rosseau in his thesis on the Social Contract, wherein he traces the historical roots of the birth of societies and governments, and describes the ideal relationship between the government and the people or the sovereign. Like Rosseau, Jefferson and Paine condemns the impulse towards tyranny that promotes the clash between the minority and majority interest, as represented by the tendency of the few to promote their selfish interests at the expense of others.This is exemplified in Jefferson and Paine’s account of the American experience under British rule, wherein both authors find the American people fully justified in announcing separation and in establishing â€Å"a government of our own† as â€Å"our natural right. † (Paine 135) Rosseau’s influence on the conception of nationalism on American thinkers such as Jefferson and Paine is also evident in the concepts of territory and the boundaries of private and social property that the authors use to justify the call to revolt against British colonization.This is clearly stipulated in the reasons that Jefferson and Paine enumerates, wherein they invoke the inherent human right to self-determination. (Ibid) Indeed, Jefferson’s argument on the right of the people to â€Å"alter or to abolish† a government based on its inability to protect the rights of the citizens and when it becomes an impediment towards the realization of full human development was made at a time when people lacked the confidence to believe that they were capable of governing themselves.How ever, Jefferson’s concept of the right of the people to a government that fully reflects and represents their collective interests and aspirations continues to resound to this day, when new forms of tyranny and new forms of oppression persists, oftentimes under the cloak of democracy or for the pursuit of human security.It is not a stretch of the mind to note the persistence of social problems such as intolerance and discrimination based on religion, gender, or social status, or the continued poverty experienced not only by the American people more so by the rest of the world, that effectively prevents the full realization of human rights and potentials that Jefferson and Paine have so boldly championed, and on which the democratic ideals of American society were built on.

Initial Public Offering Paper Essay

The focus of this paper is to examine and research the financing issues that an organization must face when going public. The team has selected Chipotle Mexican Grill, Inc. as the organization which has had an initial public offering in the last three years. The learning team will address registration, disclosure, and compliance issues and cost of issuance. In addition, the team will examine the impact on ownership control and return as well as the source and application of funds. Financing Issues that an Organization Faces When Going PublicAn Initial Public Offering (IPO), is extremely expensive for organizations. It is common for a small business to pay between $50,000 and $250,000 to organize and publicize an offering. According to Paul G. Joubert, author of The Portable MBA in Finance and Accounting, IPO claims between 15 and 20 percent of the proceeds of the sale of stock (IPO Forum, 2008). Some other costs associated with going public include lead underwriter’s commission, expenses for legal and accounting services, printing costs and filing costs with the Securities and Exchange Commission (SEC). Organizations may have ongoing expenses for legal, accounting and filing services (IPO Forum, 2008). Issues Impacting Dividend Policies and Constraints on Dividend Payments A firm must examine all financing and investment issues before determining the proper payout of dividends for their organization. Some organizations’ opt to pay out smaller cash dividends to reserve earnings for future expansion. It is ideal for an organization to start with smaller payouts, and continue with conservative dividends per share. This payout decision is a result of the organization’s capital budgeting decision. Another option for payout of dividends is to finance a large portion of their capital expenditures. This will free up cash that the organization can pay out to shareholders. This payout decision is a result of the decision to borrow for the organization’s growth (Brealey, Myers, and Marcus, 2007). Chipotle Chipotle Mexican Grill, INC. is a â€Å"fast-casual† restaurant. It offers customers the quality food they would receive in a restaurant with â€Å"fast-food† style quickness. The first opening was in 1993 by the founder  and CEO Steve Ells. They serve very few things but claim to provide thousands of options. Their base choices are burritos, burrito bowls, tacos, and salads. Chipotle’s culture is â€Å"Food With Integrity† which involves using â€Å"unprocessed, seasonal, family-farmed,.naturally made, added hormone free, organic, and artisanal†, in the words of Chipotle.com. Chipotle claims there products to better, all the way from dairy to meat. They only purchase from farms in which the animals are treated humanely and naturally raised. This philosophy has allowed Chipotle to grow from one location in 1993 to 670 in 2007 as well as compete in the fastest growing industry in restaurants (Chipotle, 2008). Registration, Disclosure and Compliance Issues Chipotle filed a form S-1/A with the United States Securities and Exchange Commission on December 23, 2003. Two securities were registered under the filing as follows: Class A common stock, par value $0.01 per share, offered by the registrant and Class A common stock, par value $0.01 per share, offered by the selling shareholder. ( Form S-1/A ,2005) Common stock offered by the registrant is at a Proposed Maximum Aggregate Offering Price of $1 million dollars and a registration fee of $11,770. The Proposed Maximum Aggregate Offering Price of the common stock offered by the selling shareholder is $49.5 million (over allotment selling to the underwriters, if any, factored in to total) with a registration fee of $5,296.50. A total of 78,78,788 shares is included in the IPO and broken down by 60,60,606 from Chipotle Mexican Grill, INC and 18,18,182 from McDonalds Ventures, LLC as the selling shareholder. Chipotle intends to list their common stock on the New York Stock Exchange under the symbol â€Å"CMG† and selling price is between $15.50 and $17.50 per share. (Form S-1/A ,2005)Disclosure is the release of relevant information. (Disclosure ,2008) In Chipotle’s SEC filing they disclosed the prospectus statement, financial data, and future plans. Through there prospectus statement Chipotle makes it c lear that they are set apart from other chains by serving â€Å"Food with Integrity†. However, there are risks involved in investing, they are as follows: the number of new stores rapidly being established, lack of independent operating history, ability to continue to grow and profit, and  health and safety concerns regarding the ingredients used among others. Although the risk factors are in place, Chipotle’s financial data provides more assurance of returned profit on investment. In their â€Å"Rapidly Improving Financial Performance† section of the SEC filing they state a 130% increase in revenue in 2004 of 470.7 million up from 2002 and 49% up from 2003. And, average sales in new restaurants after 90 trading days increased 24.9% a total of $303,390. From 2002-2004 Chipotle opened a total of 237 stores. Their increased financial growth is attributed to â€Å"word-of-mouth† sales and quicker implementation of Chipotle culture in the area of the new restaurant. Also, more people are aware of Chipotle, thus increasing average opening sales.( Form S-1/A ,2005) The future plans of Chipotle is to expand operations and sales by opening new stores. They forecast opening a total of 75 stores in 2005 of which 58 were already opened at the time of the SEC filing. In order to expand sales they plan to implement an online method of ordering and increasing fax lines to accommodate heavier traffic without causing service to suffer. And, create new food options with existing ingredients. Through filing the SEC Chipotle is in compliance with the securities act of 1933 through rule 457 by following registration fee rules. (Compliance, 2008) Cost of Issuance A company filing an IPO must select underwriters in order to issue their stock. The underwriters purchase the stock and sell it at a slightly higher price than what they bought it for. They are responsible for all shares allotted, not including over allotment, and are not reimbursed for shares not sold at initial offer price. Chipotle’s underwriters areMorgan Stanley & Co. IncorporatedSG Cowen & Co., LLCBanc of America Securities LLCCitigroup Global Markets Inc. J.P. Morgan Securities Inc. Merrill Lynch, Pierce, Fenner & SmithIncorporatedA.G. Edwards & Sons, Inc. RBC Capital Markets CorporationSunTrust Capital Markets, Inc. Wachovia Capital Markets, LLC(Form S-1/A ,2005)Chipotle Mexican Grill, INC. did not disclose the cost of issuance in the SEC filing. Impact on Ownership Control and ReturnChipotle had filed their IPO October 25th, 2005. Seeking $121.4 Million, Morgan Stanley and SG Cowen & Co., LLC they auctioned their shares. Clarifying some of the details behind its highly anticipated stock offering, Chipotle estimated its market value to be as high as $121. 4 Million, Chipotle will remain majority owned by McDonald’s Corp. (Chipotle.com, 2008). On its first day as a public company, Chipotle stock rose exactly 100%, closing at $44.00 per share. On September 8, 2006 McDonald’s Corp. announced it had started an offer for its shareholders to exchange McDonald’s stock for shares of Chipotle Mexican Grill. The exchange allowed McDonald’s shareholders to acquire Chipotle shares at a 10 percent discount. The offer is capped at a level of 0.9157 Chipotle shares for each McDonald’s share exchanged owned by McDonalds Corporation. On October 13, 2006, McDonald’s Corp. completed a tax-free swap of class B common stock in Chipotle Mexican Grill, Inc. (NYSE:CMG), for its own common stock. McDonald’s Corp. has now fully divested its investment in Chipotle. Source and Application of FundsWhen it comes to an IPO, the initial funds come from an investment banking firm referred to as an underwriter. The underwriter provides the financial advice to the company, buys the stock from the company, and then resells it to the public. Depending on the size of the IPO and number of stocks being offered, the company may have one underwriter or multiple underwriters. Before the stocks can be sold, they must be registered with the U.S. Securities and Exchange Commission (SEC). The primary responsibilities of the SEC are to enforce federal securities laws and to regulate stocks and the stock market. The company must also decide whether to trade the stocks on either the New York Stock Exchange or NASDAQ. This would be the secondary and future source of funds. When Chipotle decided to go public, they had two underwriting companies as their primary underwriters: Morgan Stanley and SG Cowen & Co. LLC. Chipotle originally planned to sell 6.3 million shares at $15.50 to $17.50 per share but ended up changing at the last minute to 6.3 million shares at $22 per share. In the end the offering raised approximately $133M in primary capital to fund new store growth. In conclusion, organization’s must take into consideration many financial issues and decisions when going public. Many of these financial issues will be ongoing, and have to be taken into consideration when determining dividend payout to shareholders. Reference(s) Brealey, R., Myers, S., and Marcus, A. (2007). Fundamentals of corporate finance. (5th ed.). [University of Phoenix Custom Edition e-text] New York, NY: McGraw-Hill/Irwin. Retrieved February 9, 2008 from University of Phoenix, rEsource, FIN325-Financial Analysis for Managers II Web site. Chipotle (2008) Chipotle.com Investor Relations. Retrieved on February 10, 2007 from,http://phx.corporate-ir.net/phoenix.zhtml?c=194775&p=irol-homeProfile&t=&id=&Compliance (2008) Compliance Definitions. Retrieved on February 10, 2008 from, http://www.investorwords.com/5468/compliance.htmlDisclosure (2008) Disclosure definition. Retrieved on February 11, 2008 from,http://www.investorwords.com/1469/disclosure.htmlForm S-1/A (2005) Chipotle Mexican Grill. INC SEC Filing. Retrieved on February 10,2007 from, http://phx.corporate-ir.net/phoenix.zhtml?c=194775&p=irol-sec&secCat01.1_rs=241&secCat01.1_rc=10#Initial Public Offering Forum. (n.d.). Initial public offering. Retrieved February 11, 2008 from http://www.referenceforbusiness.com/small/Inc-Mail/Initial-Public-Offerings.html

Creation of New Markets by Diversity

From the beginning of this world we have seen or to put it more correctly heard of God creation of this world. This demonstrates the immense power of imagination possessed by God. His imagination is unequal to anything we can think of and he has managed and maintained everything up to this day. We are all given a small amount of this God given creative power. Some of us just happened to never see pass our limitations and allow our imagination power to grow freely. Persons that have good imagination or creative ideas are needed in today†s business world of fast changing demands and supply. Business calls for managers and employees with quick minds that know how to solves problems quickly and their imagination are not limited. Being creative provides numerous benefits for companies and that the management level it should be replicated down to the levels of employees level. What precisely is creativity, one might ask? Basically it is that processes of generating new ideas. It does not matter what that idea might be once it is a bit different from what was their already it†s a creative idea. Sometimes creativity is confused with innovation, which is about planning and implementing ideas. By being creative with in companies and businesses the amount of benefits increases. Not being creative set back companies to the classic school of management, which does not produce much growth for cutting edge businesses that wish to excel. Creation of new markets by diversity is a benefit that creativity brings about. As it can be seen in 3M case on page 35 of the Management organization textbook. This small mining company 3M (Minnesota Mining and Manufacturing Company) was nearly bankrupt but due to the quick reaction by management things were quickly turned around from heading down hill. Seeing that thing were failing in the mining venture they made a key decision to turn from that and focus on the mine†s output- abrasive grit. This carried them off into focusing on sandpaper and grinding wheels. These areas were also somewhat difficult. Over time the company continued to experiment with a Varity of products ideas. Many of there ideas came from its employees and customers. In this we can see that they implemented more recent schools of management theories such as behavioral, system, and contingency. Management listened to its employees and customers. Which does not happen in the classical school. New ideas helped this saved this company but most importantly of all was that willingness to accept and implement these ideas by management. With creativity skills business are able to use or see new ways of satisfying their customers needs. Managers should know that the survival and profitability of their organization are directly linked to meeting or exceeding customers needs and expectations. They satisfy customers by guaranteeing that all individual efforts and their results posses guilty. This can be demonstrated in the automotive industry. From the early ages of this automotive industry it can be seen that different ideas in creative design have lead to some of the most successful automotive companies. Toyota by using new fuel-efficient technology produces cares that run longer distances with the same amount of fuel. This attracts customers because they can use the some amount of fuel and increase mileage of their travel. Hereby we see that the ultimate goal is achieved increased revenue by the creative power of new idea and innovation in technology. Increased revenue is usually the goal of many business companies and by implementing new ideas and new and more efficient way of carrying on business organizations can move forward. In the 21st century without managers and employees who do not think that they are creative need to really â€Å"check if they still want to have jobs†. As given in the hand out there are basically 3 saying which limit persons thinking they are 1. I†m not creative. 2. I don†t know how to be creative. 3. It†s not ok to e creative around there. We need to overcome these limits and release our minds from these mental blocks. The creative powers are instilled in each of us as children but because of lack of use or prohibition of use. Some of use grow up thinking so logical (lift side brain thinking) that we need to practice to be creative. The (right side brain thinking) the creative side need to be use along side the left side to create the most fantastic results. It is the managers position to instill and encourage creativity at all levels of management. First line or operating management level will have to be more creative than that top and middle management. This is because they are the supervisor team leaders. Who over see the work of non-management people. Organizations or businesses can do a wide Varity of thing to increase creativity. The simple structured techniques like brain storming and mind mapping are good places to start. Some other methods used to access creative potentials are storytelling, dance, mask work, visualization, poetry, painting, sculpting and metaphor. It is also important to note that some methods will work will with certain organizations and others will not. Creativity as seen is an essential core requirement to the survival in the business world. More and more person and organizations are realizing this and taping into this natural skill and reaping the benefits. Therefore as student†s teachers, workers and managers we should all encourage and promote these creative powers.

Unit V Assignment (Training and Development) Essay

Unit V Assignment (Training and Development) - Essay Example This proposal is rooted on the fact that the demand for software designers is at its peak in the current economy. For this reason, there is a need for training to equip professionals with relevant skills that workforce desires. The apprentice is guaranteed a variety of skills to learn from this program. One of the most prevalent programming languages is the C language, and it is among the skills acquired in the apprenticeship. It turns out that the C programming language is the foundation of many operating systems hence the training equips workforce with latest updates in this area. Another relevant and essential skill from this apprenticeship is mastery of the C++ language. The complexity and convolution of this programming language requires adequate preparation to handle unexpected changes (Sinha, 2009). In addition, this apprenticeship enables mastery of JavaScript with an aim of making the web an interactive place. Next on the list of skills is an understanding and application of HTML. However, the most significant skill developed from this apprenticeship is the language of SQL. This comes from the idea that SQL server developers have skills, which are in high demand, and comes with better job prospects than any other programming language. The entire process of training deems to follow a definite path. With the apprentice’s development in mind, the apprenticeship focuses on dividing classes according to various programming languages, and allows employees specialize on what they best understand. The process of training then ensures that employees are more committed to success in respective jobs (Sinha, 2009). It instills on employees a sense of confidence and the ability to handle various challenges. Even though all programming languages are essential for an all-round computer programmer, this apprenticeship ensures a clear

Partnership like relationships exists between consumers and suppliers Essay

Partnership like relationships exists between consumers and suppliers and provides advantages such as greater quality - Essay Example Theoretical frameworks exist in abundant supply that try to delineate the advantages of close cooperation between partners in supply chain mechanisms. In practice however things are far more different as the specific attributes of such working relationships are not fully understood (Goffin, 2006). Overall there has been a move towards close cooperation based relationships though the actual realised benefits of such relationships is not fully established and is generally overestimated. The range of relationships between various entities in the supply chain domain varies from transactional type relationships to close and more collaborative relationships. Another issue of importance that needs clarification is the use of the term â€Å"partnership† that has been used to describe such relationships though there is no legal or other justification for using such a term. The use of the term â€Å"partnership† has caused confusion in respect of these relationships on a number o f fronts though three major reasons are more significant. These reasons are: Customer / supplier relationships are purely business relationships though they may be described as partnerships. However the use of the term does not indicate any legal privileges are inferred as in the case of a business partnership or alliance. This clearly demonstrates that customer / supplier partnerships do not carry any legal value and are instead purely voluntary in nature; Any partnership like relationships between supply chain entities are not absolute but are rather context dependent. The extent of closeness of the subject relationship determines the variations in such relationships and previous research supports such contentions (Ellram, 1991) (Saxton, 1997). It can be inferred from this that the particular degree of closeness in a relationship provides the necessary insight to explore such relationships although the degree of closeness is not absolute; Relationships based on the partnership mod el alone cannot attempt to explain the supplier side of relationships fully although this is universally assumed as such (Goffin, 2006). A large amount of material exists on the value of close customer and supplier relationships although this is not relevant to the issue at hand. Instead this text will focus more on why such close relationships are not performing as desired or expected using three different approaches. These approaches include: assessing the appropriateness of close relationships between customers and suppliers; creation of and sustainability of close relationships between customers and suppliers; contextual nature of close relationships between customers and suppliers. 1. Appropriateness The majority of literature on relationships between suppliers and customers has implied that close relationships are desirable though such literature has failed to provide due consideration to any contextual causes or to the effectiveness of such relationships. As an example a larg e amount of literature has concentrated on implying that manufacturers and their suppliers should have close relationships and have indicated that these relationships have evolved into partnerships over the last two decades. However such literature has failed to account for a few transactional relationships that not only exist but are also desirable. Similarly there has been talk of evolution of such relations

External and Competitive Environment for tourism Industry Essay

External and Competitive Environment for tourism Industry - Essay Example Tourism Industry Total receipts from tourism are 9% of the world GDP and the tourist industry employs 2.8% of the total world population (Quick Facts, 2010). The Tenerife economy is greatly reliant on the tourism industry. The service sector of the economy contributes 79.4% to the GDP where hostelry comprises of 14.29% of the total of the tourism industry of the Canary Islands (Economic Sector, 2005). It is approximated that 10 million tourists visit the Canary Islands which includes 5 million tourists every year in Tenerife alone (Osborne). It was once viewed that more tourists meant more money in the industry but now a new concept have revealed (Osborne). The Tenerife Industry is focusing more upon quality of the services provided rather than increasing their sales (Osborne). This is mainly due to the realization that tourists enjoy quality vacation and are ready to pay higher amounts to stay in â€Å"good quality† four and five star hotels (Osborne). The volcanic eruption i n Iceland in 2010 carved a caricature of the Tourism Industry in Europe. Initially, the volcano eruption rose excitement among the tourists and they went on to Iceland to have a look at the natural catastrophic eruption. However, later the danger aggravated and not only the tourism industry of Iceland but of the whole Europe was messed up. ... nge and Europe might not experience summer which would then result in the loss of tourism revenues from countries like Switzerland, France and Italy (Gupta, 2010). Thus, the tourism industry all over the Europe seems to face the trickle down effects of the volcanic eruption in the region. Objectives The video demonstrated a situation of the tourism industry in Tenerife and the effects after the volcanic eruption. The tourist Nigel experienced the whole situation in a hotel and came up to the conclusion that he liked the hotel whereas, he was unsatisfied with the services if Ryan Airways through which he was flying. This was utterly due to the different behavior adopted by both the organizations. The hotel was hospitable and accommodating whereas, he faced the opposite reaction from the Airways and was in a complete dismal. Thus, the focus of the report is to investigate the reasons for the two distinguished reactions of the organizations that were going through the same natural circu mstances. Both the organizations are an integral part of the tourism industry, yet they resulted in different attitudes. Therefore, further analysis would seek to clarify. Spain PEST Analysis Since the Canary Islands are a province of Spain the PEST analysis would enhance the analysis. Political Analysis Spain has a mixed capitalist economy and ranks as the 12th largest in the world. The political conditions are somewhat stable and hence, the economy has been successful until 2007 when the effects of recession began to be felt in 2007 (World Factbook, 2010). Economic Analysis Real GDP growth decreased in 2007 in the wake of recession by 3.9% and later in 2010 by 0.2%. Per capita income also saw a declining trend and the public debt increased from 53.2% of GDP in 2009 to 63.4% in 2010 (World