Sunday, May 3, 2020
Learning Organization Nissan Motor Corporation
Background of the organization Nissan motor Corporation is known for the innovative products and services that they offer. Most of the products that are offered by the organization are an insight into the future and hence, most of the customers are attracted to this product. This organization is a global company and hence, they consider the complete world as their market. This company has been in existence since 1933 and today they have their manufacturing plant set up in 20 countries. Apart from manufacturing, this company has their presence in more than 160 countries as Nissan Motors are loved by people from different corners of the world (Nissan Global 2014). Nissan as a learning organization Nissan believes in Two-dimensional model of learning organization. The structure and the culture of Nissan Motors Corporation is enhanced in such a way that the learning in the organizational environment is motivated rather than that of being curbed. Similarly, all the employees in the organization are motivated to learn so that they can grow along with the betterment of the organization. Nissan Motors looks for ways by which the learning of the employees in the organization is motivated rather than that of being stagnant. The management believes that the organization will become frustrating if the employees are asked to do the same thing repetitively. Employees at Nissan Motors Corporation are motivated to undertake new activities so that they can get recognition or incentives. This will motivate the employees to try something new so that they can continuously learn something that will help them to grow and also will help the organization to grow. The employees are given the confidence that they can perform and the employees are given the trust that they can trust the management and talk to them for any issues that they face. The employees are motivated in the right way so that they can come up with ideas that are in sync with the organizational objectives (dspace n.d.). Information technology at Nissan Motor Corporation Nissan Motor Corporation is well aware that the organization cannot survive without the help of technology and hence, it keeps a track of the existing technologies that are prevalent in the market. Technological upgradation takes place continuously so that the employees as well as the management of the organization can be connected with that of each other. There are plenty of things happening in the organization as the employees come up with things at regular intervals. A proper intranet is in place in the organization and hence, the creativity of the employees is updated on the intranet. The management is updated with the ideas and hence, they accordingly approve and implement it in the organization. Employees at Nissan Motor Corporation are given technological training on continuous basis. This helps the employees in the organization to be completely updated with the technology that is used in the organization. The appropriate training helps the employees in the organization to improve on continuous basis and at the same time, the manual efforts are reduced to a large extent (Najafbagy 2010). Socialization based tools at Nissan Motor Nissan Motors Corporation has an internal communication tool wherein the employees can communicate with that of each other. Apart from that, Nissans internal social network is also available. All the current and ex-employees of Nissan is available on that platform. This helps the employees to share knowledge about the various processes and technologies in the organization. All the employees, from all the departments are connected with the help of this social networking site. This brings employees from different Nissan Motor Corporation locations together. Employees are motivated to share their knowledge and understanding so that a better place for learning can be created. Changes at Nissan in the last 5 years 5 years back, the employees in the organization were recognized by word of mouth communication but that is not the case anymore. Initially, the management wasnt able to recognize all the efforts of the employees but thats not the case anymore. Most of the reports in the past were manual but today it is system generated and hence, the possibility of errors is less. Conclusion The employees at the organization should be given the incentives so that the employees are motivated to put in more efforts. The efforts of the employees should be recognized in front of all the staff so that the employees feel proud about the achievement that they have done. The needs of the employees should be recognized so that they can be trained accordingly. References Dspace, Models of organizational learning, Accessed on January 16, 2014, https://dspace.lib.cranfield.ac.uk/bitstream/1826/113/5/Chapter%203%20.pdf Najafbagy, R, 2010, MODEL OF LEARNING ORGANIZATION IN BROADCASTING ORGANIZATION OF ISLAMIC REPUBLIC OF IRAN, Serbian Journal of management, vol. 5, no. 2, pp. 213-225 Nissan Global, 2014, Our company, Viewed on January 16, 2014, https://www.nissan-global.com/EN/COMPANY/PROFILE/
Wednesday, March 25, 2020
6 top retail jobs this holiday season and how to get them
6 top retail jobs this holiday season and how to get them As the weather gets colder, that means two things: the holidays are coming, and there will be a lot of seasonal retail jobs opening up. Whether youââ¬â¢re looking for a side gig to make extra money or a right-now job to get you through the holidays, retail is the place to be from October until January. The seasonal holiday job is a perennial classic opportunity for temporary work, or an experience-building job that can be your entry point to a longer career working in retail. Letââ¬â¢s look at six of the top retail job opportunities available this holiday season.Retail Sales AssociateThis is kind of the classic seasonal job. Brick and mortar stores are busier than ever around the holidays, and they need the kind of all-hands-on-deck staffs that will let them boost those crucial holiday sales while keeping the store running smoothly. Retail sales associates may be responsible for stocking shelves, merchandising, cashier-ing, or working directly with customers. They may also be b ehind the scenes, assisting with incoming shipments and helping to manage inventory.Holiday sales associates are usually expected to work long or late shifts to accommodate for expanded store hours, and potentially on holidays (especially as more and more stores creep their Black Friday specials into Thanksgiving Day). Itââ¬â¢s a hectic pace and you may be expected to be on your feet for most of it, so itââ¬â¢s important to have the physical stamina to withstand the holiday rush. This job may also involved a certain amount of heavy lifting and reaching.To get started as a retail sales associate, the bigger retailers (think Target, WalMart, Kohlââ¬â¢s, Toys ââ¬ËR Us, etc.) are almost always hiring seasonal help, but also be sure to check out smaller stores, who may also need holiday associates.What youââ¬â¢ll need: A solid retail resume, for starters, and also a strong set of customer service skills. Youââ¬â¢ll also need general retail skills like good organization, time management, the ability to work independently without constant oversight, and math skills. Youââ¬â¢ll also need to be flexible on your availability to work.Customer Service RepresentativeMore customers means more customer needs, and many stores and companies bulk up their customer service departments for the holidays. In retail, that often means manning the phones, internet chat programs, or social media platforms to make sure that customer issues and complaints are being handled quickly and appropriately. Customer service representatives may also be tasked with giving information to customers, processing returns or refunds, escalating customer issues appropriately, and troubleshooting specific issues. Because customer service doesnââ¬â¢t necessarily coincide with a storeââ¬â¢s hours (and even less so if a store does a brisk holiday business online), the shifts may be overnight, over weekends, or over holidays. This can be a good job for night owls, or someone who has daytime obligations.What youââ¬â¢ll need: A solid customer service resume. Youââ¬â¢ll need customer service skills first and foremost, as well as tech skills like handling multi-line phones, recordkeeping software, and internet chat programs. Youââ¬â¢ll also need strong problem solving skills, as much of your time may be spent helping to diagnose and resolve problems for customers.Holiday ActorMany malls and stores (especially department stores) have a holiday display with some kind of interactive component (like Santa visits and photos). If you resemble the jolly old head elf himself, all the better. But people of all shapes and sizes are often needed to help out with these displays, shepherding kids through, or acting as elves/reindeer/other holiday characters. You donââ¬â¢t need to have an Academy Award-winning resume, but if youââ¬â¢re interested in working in a retail store without being an associate on the floor, this can be an option. You may be assisting with photo setup, or working on crowd/line management. The name of this position may vary by store. For example, Macyââ¬â¢s calls their fleet of seasonal Santas and elves ââ¬Å"Santaland Sales Associates.â⬠What youââ¬â¢ll need: Great people skills, especially kid-friendly ones. If youââ¬â¢re interested in being Santa himself, there are actually schools for that. Otherwise, skills like organization and time management also serve you well, as stores are just as interested in having these customers spend money in the store as waiting in line to see the holiday display.Retail Housekeeping Associate/JanitorWith all of the holiday shopping chaos, stores can get cluttered and disorganized. Enter the housekeeping staff. Like just about every other retail department, stores often need extra help in the cleaning department as well. These associates may be responsible for cleaning the store before or after hours, maintaining clean public areas during business hours, restocking thing s like boxes and bags in checkout areas, and generally cleaning up messes that occur in all the holiday hubbub. The housekeeping staff helps the operations of a store run more smoothly.What youââ¬â¢ll need: Good time management and organizational skills, and the ability to work independently to do what needs to be done.Warehouse/Shipping AssociateWarehouse staff are more important than ever in the ecommerce boom, and are essential to more traditional retail stores as well. These associates keep products on shelves and arriving at customersââ¬â¢ doors, and during the holidays, companies hire more staff to accommodate the higher volume of orders. Warehouse associates may be responsible for assembling shipments, preparing shipments, processing outgoing and incoming shipments, tracking inventory, and using heavy equipment (Iike forklifts) to move goods and shipments around. Many companies (like Amazon) hire warehouse staff all around the country to make sure their warehouses and s hipping facilities are operating at peak capacity during the busy holiday season.Most companies hire seasonal warehouse associates on a part-time basis, but there may also be full-time opportunities available through the holiday season.What youââ¬â¢ll need: Good physical stamina, as this is often a very physical and demanding job. You may need to be on your feet for shifts, and may be required to perform heavy lifting or other physical tasks. You will likely also need to be flexible on scheduling, as many warehouse jobs have shifts around the clock to accommodate holiday volume.Loss Prevention/Asset Protection AssociateWith holiday crowds come holiday shoplifters, unfortunately, and stores are aware of the need to bring on more security staff than usual to keep an eye on shoppers. Loss prevention and asset protection associates (perhaps better known as security guards) are responsible for ensuring that employees and customers are stealing, and for ensuring the general safety and security of the store. These associates may be stationed at particular points in a mall or store, or may be tasked with circulating and monitoring potential threats. Security associates may also work behind the scenes, monitoring cameras or other surveillance equipment to maintain order and safety, and catch would-be criminals in the act. You may need to work with police or other law enforcement as necessary, and will likely receive on-the-job training about store safety and security procedures and best practices.What youââ¬â¢ll need: A high school degree or equivalent, and prior security experience is ideal. You may also need to pass a background check. And this job also requires strong people and customer service skills.Retail jobs can be pretty diverse, especially when itââ¬â¢s the holidays and stores need more people to do just about everything you can think of. If you feel at home out on the store floor in the holiday crowds, great- but if your skills lean more toward beh ind the scenes customer service, or maintaining the storeââ¬â¢s logistical status quo, there are plenty of opportunities there as well. If youââ¬â¢re interested in finding a holiday retail job, the time to get started is now. Hiring is usually done in a fast and furious way to make sure all the staffing is in place before Black Friday ads start hitting the airwaves, so you need to be able to jump on opportunities as you find them.Weââ¬â¢ve got all the tools you need to get started in retail, create your resume, and prep for the interview. Good luck, and happy holiday job hunting!
Friday, March 6, 2020
Picassos Les Desmoiselles DAvignon essays
Picassos Les Desmoiselles DAvignon essays Though the backbone of art was formed by academies that graduated classical artists, some of the most influential artists broke away from such academies to change the rules. Impressionists, led by Claude Monet, formed a group of artists originally rejected from the academies to paint in their own "objective reality." They painted art as sifted through their senses; taking into account the environment's affect on an object or placing the focus on everyday activity, the impressionists helped redefine art. While they started the process of the transformation of art, Pablo Picasso advanced it many times over. Though classically trained, Picasso painted art by what views he saw in his head and imagination, not by how his eyes or other senses interpreted a scene. He shamelessly broke all the classical rules of three-dimensional space, colors, figures and subject matter. Distinguishing his work from that of a camera and of other artists, Picasso redefines art for the future in a metho d called "cubism." In Les Desmoiselles d'Avignon, he paints his initial attempt at breaking all classical rules and distinguishing himself from every other artist in history. One aspect of Pablo Picasso's art that distinguishes him from earlier artists is the lack of three-dimensional space displayed in his art. In Les Desmoiselles d'Avignon, the five lady figures seem to be enveloped in what might be construed as the background. In contrast to earlier Raphael paintings for instance, where red drapery serves as a frame for Mary and baby Jesus, Picasso's figures appear to be actually wearing the drapery. The far woman on the left appears without clothes, except for the piece of red drapery strewn across the right side of her body. Each successive figure shows her full body with the exception of where the drapery covers her. By redefining the three-dimensional space and forcing the characters to take on the full focus of the viewer, Picasso forces t...
Wednesday, February 19, 2020
Marketing and Promotion Plan Essay Example | Topics and Well Written Essays - 5000 words
Marketing and Promotion Plan - Essay Example Although H&M has already established its concern for environmental issues as clearly stated in their company website, Fashion Brand Nature believes that there is still much to improve in their production processes and that corresponding campaigns must be implemented to guarantee the target market that the company is really aware of their social responsibilities. The Promotions Plan, while aiming at asserting social and environmental consciousness for the H&M brand, also aims to propel the company into further market triumph as it doesnââ¬â¢t only become commercially successful but is also keen in playing important roles in the society and environment as well. For the longest time, this has been H&Mââ¬â¢s battle cry in the Fashion Industry. Offering inexpensive but trendy clothes for over six decades now, H&M has presence in key countries and cities worldwide, having 1,500 stores in 28 countries by the end of 2007. H&M offers fashion for women, men, teenagers and children. The collections are created centrally by around 100 in-house designers together with buyers and pattern makers. The stores are refreshed daily with new fashion items. H&M does not own any factory, but instead buys its goods from around 800 independent suppliers, primarily in Asia and Europe. It also offers own-brand cosmetics, accessories and footwear. It applies a broad differentiated strategy where they offer a wide variety of products to serve various target groups. ). Furthermore, H&M ensures the best price for their goods by doing market survey and research and acquiring depth and breadth of knowledge within every aspect of textile production; buying the right goods from the right market, buying large volumes and efficient distribution mechanism H&M employs about 68,000 people and has about 20 production offices around the world, mainly in Asia and Europe (H&M in Brief. 2008). It has a design and buying department, which creates H&Ms
Tuesday, February 4, 2020
Information Systems Essay Example | Topics and Well Written Essays - 1000 words
Information Systems - Essay Example The payroll information system will have information on the name, monthly salaries and hourly rates of employees. Hourly rates will also be required to facilitate the payment of overtime wages. Additional information such as location, department, employee identification number, and the date of employment would also be added to the system. This system would be updated with information received from the human resources department relating to recruitment of staff at Recruit 4 U three locations as well as separation of staff due to retirement, resignation, redundancies and involuntary termination. The payroll system would be set up to calculate taxes for each employee and would be paid over to the government on their behalf. At the end of each pay period the necessary information would be collected from various locations and this along with the information from head office will be used to run the payroll. Pay slips will be generated for each employee, indicating their gross pay, deductio ns ââ¬â statutory and otherwise, and their net pay at the end of each pay period. Cheques consisting of the net pay would either be drawn for each employee or sent to their respective bank accounts if feasible. Additionally, a cheque would be drawn for the government in relation to total tax deducted from the employees pay for the period. The relevant entry from this module of the accounting information system would be used to make an entry into the financial accounts of Recruit 4 U.
Sunday, January 26, 2020
Economic Analysis Of The Us Airline Industry Economics Essay
Economic Analysis Of The Us Airline Industry Economics Essay An economic analysis on the nature of competition, collusion and pricing in the US domestic airline industry was conducted primarily on the nature of the oligopoly market structure of the airline industry. The impact of deregulation was performed and analysed including mergers and acquisitions. An analysis on the prospect for low-cost carriers (LCCs) was also conducted including measures to ensure their long term survival when competing with full fledged carriers. Finally, an impact analysis of the global recession on the airline industry was conducted. Measurements that could lead to a sustainable recovery for the airline industry was reviewed and highlighted. INTRODUCTION The airline has experienced phenomenal growth since the first US airline began operating between Tampa and St Petersburg, Florida on January 1st 1914. Today, supersonic aircraft fly routinely across the oceans, providing travel and employment to many travellers. The airline industry has global operations and the competition between them is extremely high. During the early days, strategic interest in aviation outpaced the financial viability of fledging airlines. Government support intensified worldwide as financial instability deepened due to the Great Depression of 1930s. During this period, military interest in aviation received further boost from rising geopolitical tensions. International service was governed by tightly controlled bilateral agreements, restricting the number of cities that could be served typically by a single carrier from each country. In many cases, these agreements negotiated market allocations across carriers that were enforced through capacity restrictions or revenue division agreements. Prices generally were established jointly by the airlines themselves in consultation with the International Air Transport Association (IATA), the industrys largest trade group, subject to approval by each carriers government. Nevertheless, government intervention failed to achieve satisfactory results in terms of overall economic performance. With deregulation in 1978, it has helped to stimulate more competition in the US airline industry with the influx of small, low-cost carriers. A recent National Bureau of Economic Research (NBER) working paper analysed the changes that have occurred in pricing, service and competition in the airline industry since the industry was deregulated in 1978. The study found that fares have declined since deregulation and efficiency has improved, but the volatility in industry earnings has continued and average earnings have declined. The average returns that the airlines have earned since deregulation are almost certainly insufficient to sustain the industry in its current state. The profitability of the airline industry is quite cyclical because travellers demand is sensitive to the overall performance of the economy. Yet, airlines must predict this demand accurately because of the lead time required to acquire aircraft. When airlines over predict demand, they would suffer losses. The IATA has recently doubled its forecast for losses in 2009 to US$9 billion and warned that the economic problems would continue for some time. The forecast was slightly better than the loss last year. But it was significantly worse than the associations projections in March this year that estimated a loss of US$4.7billion for 2009. Coupled with competition from low-costs carriers (LCCs) could further undermine the profitability of full-service carriers (FSCs). However, some industry experts believe that both will survive in parallel without losing many customers to each other. It is argued that LCCs induced either an additional demand or won clients for the air traffic, which would have gone otherwise by train or car. There is however, a concern that LCCs have turned the luxury service of fast travel with its implicit environmental damages into a day to day service for more and more people. The airline industry is in the midst of a dramatic restructuring. Many reasons have contributed to its fall in revenue. Some key success factors determine the success of the airline industry. Analysts say that the airline industry is likely to remain unstable and price increases are inevitable due to increasing costs. Furthermore, the rising concern for global warming and IATAs recent decision to cut emissions by 50% by 2050 is also likely to have some implications for cost of flying and profitability of the airline industry. The report has reviewed the structure of the airline industry and the nature of its competitions with specified focused on the airline domestic market including emerging competition from LCCs and the impact of globalised recession on the airline industry. NATURE OF COMPETITION, COLLUSION AND PRICING The enactment of the Airline Deregulation Act of 1978 eliminated price and entry regulation of the US domestic airline industry. [1] Since then it has grown tremendously. The US domestic market basically competed in an oligopoly landscapes. Hence there is certain level of barriers to competition like control over the computerised reservation systems used by travel agents have provided main carriers with a powerful weapon for disadvantaging smaller competitors. For example, American Airlines Sabre system and Uniteds Apollo system together accounted for three quarters of all national computer reservation systems in the late 1980s. Control of this important avenue for travel agents to make reservations enabled the majors to discriminate against smaller firms in a variety of ways from instituting screen bias favouring the on-screen presentation of the controlling firms flights, to charging exorbitant fees to other carriers for displaying their flights on these computer systems (transferr ing upwards of a half-billion dollars annually from the smallest to the largest carriers). [2] More recently, the Big Five carriers have joined together to collectively market their tickets online through their Orbitz Travel Web site [6], an alliance that may enable them to better coordinate their non-competitive oligopoly pricing and to circumvent rules put into place to prevent them from anti-competitive using their computer reservation systems while, at the same time, disadvantaging competing distributors of air tickets. [3] Predatory Pricing Dominant carriers were suppressing competition through predatory pricing. For example, when Spirit Airlines attempted to penetrate Northwests Detroit hub with a one-way Detroit-Philadelphia fare of $49, Northwest Airline responded by slashing its average fare on the route by 71% (from $170 to $49) and scheduling 30% more seats. Once Spirit abandoned the route, Northwest raised its fare to $230 and cut its seat capacity.[4] Similarly, when Frontier Airlines initiated service from Denver (United-dominated hub) to Billings, Montana, it offered an average fare of $100 which was half the prevailing fare charged by United. United, in turn slashed its fare to match Frontier. When Frontier exited the route, United raised its fare above its original level. [5] Collusion Collusion is a difficult game to play when the number of conspiring rivals is large. It is hard to keep a hundred firms in line when their cost structures differ, when their production facilities vary, and when some have an incentive to cheat on a price agreement or to violate output restrictions. Numbers make a difference. When numbers are large, conspiracies are difficult to organize, difficult to conceal, and difficult to enforce. However, public policy faces a serious challenge in oligopolistic industries like the case of the Airline industry where major carriers eschew outright collusion and rely instead on a course of conduct characterised as tacit collusion, or recognition of mutual interdependence to resemble the effects of outright conspiracy. The mechanics of tacit collusion is apparent particularly in an oligopoly market dominated by a few major players. Each carrier naturally recognises the mutual interdependence between it and its rivals. For example, Carrier X knows that it if were to cut price in order to increase its market share, its aggression would immediately be detected by carriers Y and Z, which would respond with retaliatory price cuts of their own. Market shares would be unaffected, but all carriers would now operate at lower prices and profits. Henceforth, Carrier X cannot expect to increase its market share or revenue at the expense of its rivals. It cannot afford to calculate in terms o f maximising its own profits in isolation but instead must constantly ask whether a particular decision on price or output will be not only in its own self-interest, but also in the best interests of its rivals. By recognising mutual oligopolistic interdependence, it must be concerned with group profits and group welfare. In other word, under oligopoly landscape, independent, aggressive, genuinely competitive behaviour is perceived as counterproductive-an irrational strategy for the individual carrier. In an oligopoly, groupthink will influence a carriers strategy when it is contemplating price increases as it cannot act alone. Hence, groupthink replaces the calculus of individual advantage, and each carrier must behave as a responsible member of the oligopoly group rather than as a reckless, self-seeking competitor. In oligopolies, this recognition of mutual interdependence may extend to non-price competition. For instance, if carrier X refrains from aggressive price competition but seeks to increase its market share through aggressive innovation program, it cannot expect its rivals to sit idly by. It must expect them to increase their research efforts as a simple matter of self-defence, th ereby nullifying its expected gains. Anticipating such retaliation which could erode oligopoly profits- carrier X might refrain from innovation for the same reasons it would avoid price-cutting. Rationality again commands responsible nonaggressive behaviours; the most effective profit-maximisation rule under oligopoly is to get ahead by getting along. Nevertheless, the level of oligopolistic interdependence and collusion varies from situation to situation.[8] It depends on such factors as whether the oligopoly is tightly knit (small number of firms) or loosely knit (a larger number);whether it is homogeneous or heterogeneous; whether it is symmetrical (having firms of roughly equal size) or asymmetrical (with one firm disproportionately larger); whether or not the industry is mature (having had time to develop its internal arrangements and institutions to promote cooperation); whether the industry is populated by reasonable managers or by a few mavericks. [9] In the US domestic market, the advent of the Internet has increased the efficient of signalling or collusion. Carriers can see what the competition is doing immediately by going to the Internet that allows them to react quickly to adjust their own prices. This is a far cry from the days when price books were set in type and could not be changed for months. Now most prices can be adjusted several times a day, if needed. Apparently, this is a game that the airlines are particularly adept at. As consumers have more transparent access to real-time flight pricing through online services like Orbitz Travel [6], the airlines are almost obligated to adjust to each other. This is particularly apparent on routes where there is no rogue player, like Southwest Airlines or JetBlue as they are (within limits) free to adjust prices upward. As long as the members of the oligopoly with real selling power tacitly agree that a major price war is not in their interest, chances are that prices can quickl y readjust themselves, keeping in mind the balance of costs and optimal prices for maintaining profitable sales levels. Fortunately, the combined market share of the Big Five network airlines (Delta, United, American, US Airways, and Northwest) that peaked in 1992 has been declining since deregulation. [7] Furthermore, with the influx of several low-cost carriers, tacit collusion is becoming difficult to organise, conceal and enforce even though oligopolistic rationality and its collusive consequences are inevitable concomitants of oligopoly industry structure. Pricing Pricing is important for the carriers. If prices are too low or too high, it can drag down profits. Thus, it is important for the carriers to derive profitable airfares and discourages unprofitable one. To maximise profits, the carriers should set prices so that marginal revenue just equals marginal cost. In other words, it should use profit-maximising prices as the starting point based on the economic model of pricing as shown in Diagram 1.0 which is called marginal cost pricing that clearly identifies a pricing strategy that will maximise profits. This pricing strategy also identifies the information needed to set prices, thus simplifying the process. In other words, the profit-maximising price is where the incremental margin percentage equals the reciprocal of the absolute value of the price elasticity demand. [8] Based on pricing rule, the carriers should adjust its price where there are changes in the price elasticity of demand or marginal cost since the carriers compete under oligopoly landscapes with homogeneous services. Airfares have dropped significantly over the years [10] since deregulation which helped to simulate competition resulting in the entrance of several low-cost carriers. This could partially be due to regulator and oligopolies increase efficiencies, putting direct or indirect price pressure on their suppliers as well as putting pressure on the wages and benefits of their employees. Hence, there is growing belief that oligopolies can be price-neutral as opposed to manipulating prices. The strategic variable for airline carrier is pricing in the short run. Generally without product and service differentiation, the basic service offered by the carriers would be rather homogeneous. Under the Bertrand model, the carriers which produce at constant marginal cost and compete aggressively on price in order to gain a bigger share of the market. Under such condition, the market equilibrium is perfectly competitive pricing. However, in a loosely knit oligopoly structure as in the case here, the individual carrier has incentive to offer heterogeneous services. Through heterogeneous services, it can charge personalised pricing or group pricing [9] based on passenger willing-to-pay to achieve higher profits. For example, if carrier X sells its airfares at a uniform price, it loses in two ways. Firstly, some passenger would be willing to pay more than $80 for a ticket during the last hour of the flight. Secondly the carrier does not sell to passengers who are willing to pay more than $50 but less than $60. This is illustrated in Diagram 2 below. By charging passengers at different price, the carrier could profitably sell to a much larger passenger base. Furthermore, with differentiated services, should one carrier cut its price below other carriers price; it would take away only part of the other carriers entire demand. Thus, carriers should have strong incentive to differentiate its offering in order to raise their equilibrium prices. However, there is a risk of loosing the market if the services are not on par with its pricing and demand. The carriers must balance their desire for market share at the same time avoid head-to-head price competition since the less differentiation in their services, the more direct will be in price competition among them and the lower would be incremental margins. IMPACT OF DEREGULATION ON THE US AIRLINE INDUSTRY The 1978 deregulation has path the way that allowed competition to begin to function as the prime regulator of decision making in the airline industry. Competition would allow the airline industry to develop and maintain an air transportation system that rely on actual and potential competition to provide efficiency, innovation, low prices, variety, quality air transportation services at the same time, emphasising safety as the highest priority in air travel.[11] In addition, carriers are free to determine their prices in response to particular competitive market conditions on the basis of such air carriers individual costs.[12] With deregulation, the number of certificated carriers offering passenger service in US has grown rapidly; in real terms after accounting for inflation, airfares averaged 13% lower by 1982; the proportion of air travellers flying on discount fares grew from 48% in 1978 to 80% by 1982. [13] The airline industry expanded at rates significantly greater than before. In fact, its load factors rose to the highest levels in fifteen years while industrys productivity increased with an estimated cumulative savings of some $10 billion. SUBVERSION OF COMPETITION Due to the lack of regulation or antitrust laws to regulate the newly deregulated airline industry, it has allowed large carriers to systematically acquired smaller, regional carriers that were rapidly expanding their routes and competitiveness in the newly deregulated environment. For example, Northwest acquired Republic Airlines, one of its major competitors in the upper Midwest; as a result of the merger, Northwest controlled more than 80 percent of the Minneapolis market and in excess of 50 percent of air travel in and out of Detroit [14]. Texas Air, which earlier had acquired Continental and New York Air, purchased Eastern Airlines and Peoples Express. In all, the Transportation Department approved every airline merger proposed to it once it had been assigned antitrust oversight of the field.[15] This has resulted in large carriers erecting additional barriers.[16]][17][18], obstacles[19][20] and predatory pricing[21][22][23][24] thus crushing what competition might appear. Subj ected to such predation, only thirteen new start-up airlines have emerged in the industry since 1989 and that only eight of these have managed to survive as independent entities. [25] By 1988, the major carriers had reportedly gained control over 48% of the nations fifty largest commuter lines, either through outright ownership or through operating and marketing links. [26] Table 1 show the downward trend of concentration in the immediate aftermath of deregulation was reversed after 1985 and trend upward. At the same time, a powerful system of fortress hub monopolies was erected across the United States as shown in Table 2. Table 1: Airline Concentration, 1978-2001 Combined Share of U.S. Market (%) 1978 1983 1992 2001 Four Largest Carriers 57.7 54.7 69.9 63.1 Eight Largest Carriers 80.4 74.1 95.7 90.3 Source: U.S. Congressional Budget Office, Policies for the Deregulated Airline Industry, Washington, DC, July 1988; Aviation and Aerospace Almanac (Washington, DC: Aviation Week, various years). Table 2: Airline Hub Monopolies, 1980 and 2001 Airport Leading Carrier Market Share (%) 1980 2001 Atlanta 52.5 79.2 Chicago OHare 31.6 45.9 Cincinnati 38.1 92.2 Dallas/Ft. Worth 36.0 61.6 Denver 27.3 65.1 Detroit 20.9 77.1 Memphis 41.6 62.1 Minneapolis 41.7 80.4 Pittsburgh 53.4 75.9 St. Louis 43.3 73.0 Salt Lake City 28.4 61.8 Source: Julius Maldutis, Airline Competition at the 50 Largest U.S. Airports-Update, Salomon Brothers, Inc., May 6, 1993, and Aviation and Aerospace Almanac (Washington, DC: Aviation Week, 2003), pp. 373-80. Nevertheless, it should be noted that the fault is not with deregulation. Instead, the main issues have been the failure of US government to enforce antitrust laws to enable competition to effectively regulate the field. It failed to recognise that deregulation is not synonymous with laissez-faire and that antitrust enforcement is vital if competition is to perform its function in a newly deregulated industry. Effective competition would prevent carriers from charging high and highly discriminating airfares. This is simply because passengers have the option of patronising competing air carriers. Effective competition would prevent carriers from offering deteriorating service at higher fares, which again, because passengers could choose to fly on alternative carriers. An effective competition would surely prevent an industry from being dominated by carriers with the highest costs rather than the lowest. [27] Therefore, a new regulation regime like antitrust law from the Justice Department is necessary to promote and protect competition. [28] With Antitrust law, mergers and alliances by the carriers could have been blocked to prevent any artificial barriers to competition and prosecuting any predatory practices or actions by carriers to ensure competition function effectively. PROSPECTS FOR LOW-COST CARRIERS AND PRICE-CUTTING WARS Low-cost carriers (LCCs) have experienced phenomenal growth in recent years in term of load factors, airlines launched, aircraft order and worldwide distribution. Its growth has come to a momentous point where LCCs is posing exciting challenges and opportunities to the airline industry. According to IATA and ICAD projections, LCCs will outpace their full service rivals in terms of traffic growth and earnings in 2009. With tougher economic conditions and lower fuel prices, LCCs will have a major advantage Ten years ago, LCCs did not have access to as many cities. Now, their reaches are broader thus making it easier for passengers to turn to them as choice selection. Moreover, the amenities cut by larger airlines mean that their offerings are not all that different from their low cost competitors. [29] Cost-conscious mainstream airlines are cutting cost in order to provide the lowest fares. As mainstream airlines slim down, it has given passengers more option to fly both comfortably and affordably. LCCs are able to keep their prices down by flying out of low cost terminals. In other words, it is very much dependent on the airport that can lower its charges [30]. It also relied on the Internet for online booking and providing very basic onboard services. Furthermore, LLCs usually stock their fleets with one type of aircraft to minimise the amount of training for crews. [31] With fluctuating fuel prices, economic downturn and continuing environmental pressures, LCCs need to be able to continue to create value to their target customers in order to gain the market trust. It must continuously evaluate its models carefully in order to identify new revenue streams, attract profitable customers to ensure its long term survival in a highly challenging and competitively industry. The bigger challenge will come from mainstream airlines as they embark on low fares flights. As more and more countries are adopting an open sky policy, this has opened up new routes for LCCs amid tough competition and new entrants. [32] As low cost carriers, it has to constantly keeps it cost down. One of the fundamental issues with LCCs is economies of scale. By exploring new routes, it can enjoy increasing returns to scale; the marginal costs will be lower than the average costs. Since the marginal units of production or service costs less than the average, any increase in production will reduce the average cost. Therefore, the average cost cure slopes downward as shown in diagram 3. This will be more apparent if the aircrafts, maintenance and crews have minimum fixed costs including a fixed quota on the airports charges. Apart from economies of scale, LCCs like JetBlue offers a relatively simple product, with little meal service, at relatively low fares. This helps JetBlue distinguishes itself from other carriers like Southwest by offering reserved seating, leather seats, and LCD TV at every seat. [31] Furthermore, it has offered a more traditional hub-and-spoke route structure and a more traditional mix of long and short-haul flights. Coupled with its friendly service and hassle-free technology (ticketless travel), no discount seats, all fares would be one-way with a Saturday night stay over never required. It strive to be truly customer-friendly with computer terminals that could be rotated to show the customer what the agent was looking at, giving a $159 voucher whenever a flight was delayed for more than 4 hours for reasons other than weather or air traffic, and giving a $25 voucher for misplaced bags. Its attempts to bring humanity back to air travel. JetBlues target market was people who are no t going to travel, people who are disgusted with their current choices, people who would drive, or people who would not go at all. Another differentiation was that JetBlue used new airplanes as opposed to other LCCs that used second-hand planes. In another words, it provided passenger another layer of comfort and safety factors. IMPACT OF GLOBAL RECESSION ON THE AIRLINE INDUSTRY Global recession and rising oil prices have major impact on the airline industry. Industry passenger revenues have declined nearly 15% which is equivalent to $80 billion. The impact was far greater than September 11 disaster. According to International Air Transport Association (IATA), the forecasted revenue loss has gone up by 50% from $4.7 to $9 billion. [33] Generally, first class and business class fliers have switched to economy class. Many businesses have freeze travelling and instead used video conferencing for meetings etc On top of this, cost pressures from rising jet fuel prices in 2008 forced up the industrys fuel bills to $165 billion and precipitated lossesà of about $10.4 billion. Coupled with softer travel demand due to the spread of the H1N1 virus, have created a difficult business environment. [34] These forces that are affecting the industry are creating significant headwinds for the industry. SUGGESTED MEASURES Several carriers have taken the following measures: Reduce capacity on domestic and international routes. Aircrafts were grounded as a result including crews taking no-pay leave or shorter working week. Suspending non-stop services to certain routes. For example, Delta airline suspended its flight between Atlanta to Seoul and Shanghai. Reduce weekly frequencies of flights to certain destination while extending more flights to profitable routes Move quickly to rebrand and consolidate facilities, repaint aircraft and ramp-up our frontline training activities. accelerate integration like mergers and acquisitions MERGERS AND ACQUISITIONS In time of tough operating environment, merger makes more sense than ever particularly for air carriers. This would provide competitive advantage and strengthens its financial foundation. It also will maintain tight controls on its costs and capital spending. [8] Mergers acquisitions (MAs) is the easiest way to add to gross income is through mergers. By buying an established business with developed services and markets is a lot easier than focusing on internal innovation or better business processes. Many companies add 30 percent, 50 percent, even 100 percent to the gross income line simply by making a strategic purchase. Furthermore, there is synergies like greater economic efficiency, economies of scale, critical mass or greater customer base. At the same time, with lesser competition, it helped to stabilise airfares. CONCLUSION The airline industry operates in an oligopoly structure. By recognising mutual oligopolistic interdependence, it must be concerned and be aware of the group profits and group welfare. Under oligopoly landscape, independent, aggressive, genuinely competitive behaviour is perceived as counterproductive-an irrational strategy for the individual carrier. With declining market share by the Big Five network airlines and influx of several low-cost carriers, tacit collusion is becoming more difficult to organise, conceal and enforce. Through innovative and differentiated services, airline carrier could increase its equilibrium prices and avoid head-to-head price competition. New regulatory regimes like Antitrust laws is necessary to promote and protect competition. With Antitrust law, mergers and alliances by large carriers could have been blocked to prevent any artificial barriers to competition and prosecuting any predatory practices or actions to ensure competition function effectively. The prospect of LCCS can be sustained if can offer differentiated services like JetBlue which differentiated itself from the suite of no-frill services to its passenger that is niche and unique. LCCS should focus on cost efficiency and economies of scale by exploring new routes so that marginal costs will be lower than the average costs. The global recession has severely reduced the revenue of the airline industry. Several measures have been taken and adopted by many carriers in order to pull through the bad times. However, to ensure long term survival and competitive edge, carriers need to consolidate through merger and acquisition in order to enjoy greater synergies like greater scale, economic efficiency, economies of scale, critical mass or greater customer base and keeping airfares stable.
Saturday, January 18, 2020
Internet Censorship in China
FYC Ruoxuan (Catherine) Yuan Internet Censorship has negative effects on China Censorship in China has gained much attention recently because of the conflict between Google and the Chinese governmentââ¬â¢s self-censorship policies. In fact, censorship has been practiced since ancient China and the intensity only increases by the years. Nowadays, the most notable measure of censorship is being done on the Internet. More and more restrictions have been put into actions by the Chinese government, which make the life of Chinese Internet users, the Chinese netizens, very inconvenient. With the intensity of censorship increasing and the censoring technology improving, Internet censorship has mainly negative effects on Chinese society. To start off, the current censorship situation needs to be described. In China, censorship is determined by the ruling party, the Communist Party of China, so Hong Kong, Macau, and Taiwan, special administrative regions that are mostly self-governing, are not fully affected by it. But in mainland China, Internet censorship has great impacts on the society. Facebook, Twitter, and YouTube, which people use everyday around the world, are banned in mainland China. Every time a Chinese netizen tries to open these sites, a blank page with bold words ââ¬Å"404 not foundâ⬠appears. This is very inconvenient for Chinese netizens. Moreover, the number of websites that are inaccessible is increasing. Also, Chinese government has forced search engines to adopt the self-censorship policies that force them to filter the search results for certain words. This triggered the withdrawal of Google from the mainland Chinese market. Attempting to search those ââ¬Å"sensitiveâ⬠terms not only results in little or no information being displayed but also in the shutdown of oneââ¬â¢s Internet connection for a short period of time. Some people even suspect that doing so may lead to being spied on and arrested by the government. With so many coercive protocols, Internet censorship affects China in many different aspects, especially in economy, politics and culture. First of all, to boost the national economy, the Chinese government believes that using Internet censorship for economic protectionism is a good method. However, Internet censorship actually hinders the development of economy inside China. No matter in which nation, the best way to improve its economy is to utilize the most updated technologies and to focus on scientific innovations. China has always emphasized the development of science and technology and on learning the latest innovations from foreign countries, and the ex-leader of China Xiaoping Deng famously claimed that science and technology constitute the primary productive forces. However the new technology and innovations need a market of free competition in order to expand their influence and earn more benefits. Without good management ideas and marketing theories, these technologies cannot be applied properly in order to produce qualified commodities. This is exactly what the Chinese Internet censorship has caused. According to the national condition of China, a market combining socialism and capitalism is needed to rejuvenate the economy. However, the Chinese government proclaims its socialist ideology and promotes local businesses in a socialist manner and refuses the influx of some constructive theories, which may contain capitalist ideas in order to ââ¬Å"maintain the stability of the Communist Party and to create a harmonious society. The restricted and narrow-minded economy strategy of the Chinese government, resulted from the Internet censorship, has undermines the development of the Chinese economy. The Chinese Internet censorship not only blocks useful information, but also interrupts communication between companies, therefore negatively affecting the Chinese economy. Nowadays the re is growing cooperation among companies from different countries, which is an important way to promote economic growth in a nation. However, the partial blocking of popular email services and the shutdown of multiple chat rooms has created many problems for local business contact with foreign ones. A famous example took place in May 2006, when Chinese netizens encountered difficulty connecting to Hotmail, which is an important method to communicate with foreign partners, since it is used all around the world. Also, soon after this event, Chinese netizens again reported that the access to POP mailboxes in many mail providers was difficult. Although Chinese netizens have tried to use blogs and forums to maintain communication, many blogs have been blocked ever since then, including Xanga and the LiveJournal. This makes international cooperation difficult. From this, the efficiency of producing commodities and the quality of the products in China cannot catch up with international standards, thus the Chinese economy suffers. Internet censorship and the requirement of self-censorship not only harm the economy inside China, but also are negatively affecting China in aspects of international commercial trade, even as globalization becomes the trend of todayââ¬â¢s world. Chinese Internet censorship is applied to both directions; not only blocks Chinese Internet usersââ¬â¢ access to certain foreign websites, but also prevents foreigners from knowing the truth about China through refusal of releasing reliable information. So when foreign companies want to enter the Chinese market, they face a serious question: ââ¬Å"How do you assess an investment opportunity if no reliable information about social tensions, corruption or local trade unions is available? â⬠It is impossible. All this information is necessary for a company to make wise decisions, to figure out a general plan and to find strategies that suit this market. Since most companies do not dare to enter a new market without analyzing and planning ahead, in this way, China lost the potential influx of many investments, technologies, and new management ideas. Even though some corporations were brave enough to challenge the Chinese market due to the lack of information and the restricted policies, most of them have failed. Examples are many, especially when concerning the Internet companies. ââ¬Å"Many Internet giants have retreated from the countryâ⬠¦ In fact, no major American Internet company has dominated its field in China. These companies, who are ââ¬Å"armed with cash, intellectual property and an ability to manage complex networks and introverted workers,â⬠have failed in the Chinese market. Therefore, it is natural for those companies who are less equipped and less experienced to presume that they will fail as well. Although some scholars assume that Chinaââ¬â¢s restriction may decrease in the future, the block in Februar y 2007 of the French organization Observatoire International des Crisesââ¬â¢ website after it posted an article on the risks of trading with China, makes the claim less convincing. This case of censorship, affecting a very specialized site with solely French-language content, shows the government attaches as much importance to the censorship of economic data as political content,â⬠Reporters Without Borders quoted the organizationââ¬â¢s comment. Hence, Internet censorship has discouraged foreign business to invest in the Chinese market, and it may keep doing so. Internet censorship has also been used as an efficient tool for economic protectionism in recent years, but the effect may hurt both sides. Renren, (original name is Xiaonei) the Chinese version of Facebook, was founded in 2005, and then in 2009 Facebook was banned in mainland China. Tudou, founded in 2005, and Youku, founded in 2006, both are Chinese versions of YouTube. Their shares of the market greatly increased after YouTube had been banned in 2007. The most notable example occurred when Google decided to quit the Chinese market. After warning in January that it might pull out of China, Google shut its mainland Chinese-language portal and began rerouting searches to its Hong Kong site in late March to avoid self-censorship demands from Beijing. Because China recognized that losing ties to the world's largest global search engine would dampen its innovation and business expansion efforts, and Google certainly wasn't happy at the prospect of losing China's online advertizing market, both sides reached a compromise when China renewed Googleââ¬â¢s operating license in July 2010. Yet the damage had been done. Baidu, the Chinese version of Google and Chinaââ¬â¢s top Internet search company, profited greatly and gained a much larger share of the market after Google exited. However, Baiduââ¬â¢s gain is Chinaââ¬â¢s loss. ââ¬Å"The whole industry will become worse. Without competition with Google, Baidu has no motivation to innovate. â⬠said Yu Yang, chief executive of Analysys International, a Beijing research firm. Baidu is known for providing illegal music downloads, although it defended the practice, (Google vs China 2010)saying it simply provides the links. Also, Baidu faced criticism after the local media published reports saying Baidu gave high search rankings to companies selling illegal drugs. Soon after, Baidu signed a multimillion-dollar sponsorship deal with China Central Television, which had broadcast a fake investigative piece on Baidu to ââ¬Å"clear its nameâ⬠. Furthermore, Baidu is very cooperative with the governmentââ¬â¢s censorship efforts. So with Googleââ¬â¢s absence from China, Chinese citizens are forced to use Baidu, whose ethics are questioned and which will increase the intensity of censorship by following every government order. ââ¬Å"Chinese netizens are the biggest loser in this accident. â⬠Additionally, the lacking of information and the coercive use of native providers caused by Internet censorship affects citizens not only economically, but politically as well. As mentioned in the previous paragraphs, censorship does not only apply to one direction; it affects both Chinese and foreign websites. So the Chinese press cannot post any reports on certain issues online, and they cannot report on those issues in any publications, because the Chinese government has always considered these issues ââ¬Å"sensitiveâ⬠and capable of ââ¬Å"inciting subversion of the national regime or overthrow of the socialist system. Therefore, when the Internet was first introduced to China, many Chinese netizens discovered that the Internet can be a great way to gain access to foreign press. In this way, they were able to listen to opinions and comments, even critics, from all areas, which is an important step in learning about the governmentââ¬â¢s advantages and disadvantages and to participate in political lives. However, the Chinese Internet censorship has a focus on neutralizing critical online opinions, especially those that come from foreign press, and the most common way to execute this is to simply make whole websites completely unavailable in mainland China. By doing so, Chinese netizens are unable to know what the international reaction is about a new Chinese policy, or to see the evaluation of China in an international scope and to view the same issue from different sides. For example, the website of BBC, a relatively objective British TV channel, has been banned in mainland China since 2007. Before it was banned, BBC had provided many Chinese citizens access to the latest review on China from an international point of view. CNN, another TV channel, was banned for some time and now is accessible only partially. Chinese censorship policies are applied on Chinese websites as well. Many big Internet companies have to cooperate with the Chinese government, assisting and reinforcing the system of censorship, because they do not want to lose the Chinese Internet market. Therefore, these companies allow the Internet policies to examine their contents and remove anything inappropriate ones right after polices disapprove them. Even worse is that the number of the Internet polices is rumored at more than 50,000. With such an intense level of Internet censorship, critical comments appearing on Internet forums, blogs, and major portals usually are erased within minutes. In this way, Chinese netizens can never gain a full understanding of their own politics and their own government, because all they are exposed to is the governmentââ¬â¢s propaganda. The function of censorship is focused on preventing Chinese citizens from learning more about past and current failures of the Communist Party and about alternative systems of governance. However, as time passes by, the censored subjects are not limited to the Communist Party any more. Anything about politics can be termed ââ¬Å"sensitive,â⬠and reports on political contents are censored carefully since censorship about news reports is always a focus in the censorship systems. Although censorship does not follow any specific laws or regulations, the censorship system is vigorously implanted and the apparatus of Internet repression has become the most advanced and most extensive in the world. Moreover, Amnesty International notes that China ââ¬Å"has the largest recorded number of imprisoned journalists and cyber-dissidents in the world. The offences of which these people are accused include communicating with groups abroad, opposing the persecution of the Falun Gong, signing online petitions, and calling for reforms and an end to corruption. Under such circumstances, the Chinese netizens can only read reports from the Chinese press which are untruthful and biased; on the other hand, the relatively objective reports from the foreign press are inaccessible. The lack of truthful reports harms the political consciousness of Chinese citizens. If one cannot even know about the truth, he or she cannot be aware of the real situation he or she is facing. For example, the Chinese news report website about the earthquake in Sichuan mainly contains the Communist Partyââ¬â¢s propaganda, and lacks useful data or updates of the process on this event. When probing this website, people are more focused on emotions, and they cannot acquire many statistics or real information on the earthquake itself. But when looking at the Japanese news site about the same event, it is clear that its major contents are plain descriptions about the earthquake and the reconstruction process. There are abundant amounts of data, and the reports are largely based on facts and very objective. The American website of the earthquake, although it may not appear to be as objective as its Japanese counterpart, is still very truthful. People can find useful information about the earthquake, and the press also provides some comments and analysis on it. Chinese netizens desperately need the information provided by the foreign press to be politically conscious, but in reality, they cannot gain access to any of these websites, as they are banned by censorship. The government claims that their censorship practices can ââ¬Å"harmonizeâ⬠society, but in fact, they are only intensifying social conflicts and slowing down the progress of political development. In todayââ¬â¢s world, as cultural exchange, which is as important as political communication, becomes more and more frequent, Internet censorship harms China from the perspective of cultural development and cultural communication. A culture is always in a continuous state of change. By communicating and acquiring knowledge from another culture, it is able to learn about the trends of the worldââ¬â¢s cultures and update itself. Thus, such a culture will be greatly changed towards a more modern mode. An important compartment of cultural exchange is the exchange of popular culture. With the gradual spread of globalization, popular culture becomes similar across nations and cultures, and the entire world contributes to its further development. In a manner of speaking, popular culture in the world today is a combination of many cultures, each providing its own features and advantages to make the combination attractive to all kinds of people. By contributing to and learning from this popular culture, a nation can improve its own cultural features, thus providing better contents and even leading the trend in the world. However, Chinese Internet censorship inhibits the flow of foreign popular culture into China. A noticeable case is YouTube, an icon for fashion, freedom, individuality and novelty, which has beens inaccessible in mainland China since March 2008, right ââ¬Å"after dozens of videos about protests in Tibet appeared. The issue about Tibet has long been a ââ¬Å"sensitiveâ⬠topic in China and the Chinese government has used many ways to keep the media out, even if this act is considered violation of the freedom of press. However, in this case denying the access of YouTube not only prevents people from knowing about the issue but also eliminates the communication and interaction between American popular culture and Chinese popular culture. Now it is hard for Chinese netizens to acquire the latest information on fashions in America, and they lose a good chance to be inspired by ideas presented through video clips and to develop their own cultural innovations. In conclusion, Chinese Internet censorship undermines economy improvement, hinders political development, and slows down cultural innovations. Although the Chinese government never admits their censorship policies in public, and although there are no specific laws or regulations addressing the censorship policies, the negative effects caused by Internet censorship are obvious. The president of China, Jintao Hu, vowed to purify the Internet, saying China needed to ââ¬Å"strengthen administration and development of our countryââ¬â¢s Internet culture. However, censorship is not the solution, even though the Chinese government does not want to face the reality. It is trying its best to stop people from discovering the truth and to feign a perfect society. Nevertheless, the public cannot be fooled and Chinese citizens are waking from the mirage. A group of former senior Communist party officials in China have criticized the Internet censorship, stating that strict censorship may â⬠Å"sow the seeds of disasterâ⬠for China's political transition. Although a government spokesman responded that the governmentââ¬â¢s rules are ââ¬Å"fully in lineâ⬠with the rest of the world and that ââ¬Å"no one had been arrested just for writing online content,â⬠reports from the international society opposed this announcement, and Chinese citizens, who are experiencing Internet censorship every day, know the announcement to be a lie. The Chinese people can sense the deep sorrow under the superficial harmony. The nation seems to be prosperous and progressive, but no one knows what unpredictable crisis may happen if the government still insist on the censorship policy so arbitrarily. Although ordinary people may be powerless and vulnerable individually, the strength of the mass cannot be ignored. Chinese netizens have developed some Internet memes to ridicule Internet censorship. Some of them, for example the famous ââ¬Å"Grass Mud Horse,â⬠have become icons of resistance against Internet censorship and have gained media attention globally. These images and slangs cannot change the difficult reality, but they show the citizensââ¬â¢ increasing awareness of problems brought up by censorship. Hence, there is hope that by the effort of the mass, the increasingly pervasive and draconian censorship would end one day, and the government could become as democratic as it always claims to be. Works Cited Barboza, David. ââ¬Å"Baiduââ¬â¢s Gain from Departure Could Be Chinaââ¬â¢s Loss. â⬠New York Times, January 13, 2010. Blum, Suan Debra. Happy news: censorship, nationlism, and language ideology in China. Notre Dame: Ind: The Helen Kellogg Institue for International Studies, 2010. Cheung, Anne S. Y. Self-censorship and the struggle for press freedom in Hong Kong. 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