Starbucks Code Of Ethics - 1601 Words

In a dog eat dog world I find myself asking what companies are willing to do to make a profit. Do they care about their social, economic or environmental responsibilities? Many companies/ organisations stand for great causes and give money to charity but, is there anything else going on behind the scenes? Today stakeholders and consumers demand business to take more social responsibility and business practices. With greater ethical practices companies are more likely to see an upward trend in profits, customer satisfaction and employee commitment. In this essay, I will be examining Starbucks’ code of ethics. I will illustrate how Starbucks can achieve profitable growth in an ethical manner. I will be exploring Starbucks’ code of ethics†¦show more content†¦There are many ways Starbucks professes its goals and social responsibility. For instance, pages on their website are dedicated to their corporate social responsibility. They also have displays in stores with their mission statement and values. To know if they’re doing a good job, we need to know what corporate social responsibility is. Corporate social responsibility (CRS) are business practices that benefit society (Business News Daily). An example would be giving money to charity or implementing a â€Å"greener† business plan. According to Milton Friedman, a company’s social responsibility is â€Å"to use its resources and engage in activities designed to increase its profits so long as it stays within the rules of the game, which is to say, engages in open and free competition without deception or fraud.† (et al. 2017 p.78). Although the beginning statement is correct, this logic will only work until a certain point. Even though companies are trying to gain a profit, it’s important to acknowledge that social responsibility depends on the public and how they view the company. Friedman’s view is based on corporations balancing the economy whi ch stabilises the process for consumers, this, in the long run, creates more opportunities for the public. Going through Starbucks’ Business ethics andShow MoreRelatedStarbucks Standards of Ethics and Compliance1647 Words   |  7 PagesEthics and Compliance Starbucks is a large organization that upholds many standards when it comes to their financial environment. Upholding ethical standards within a business is important if a business wants to become successful and maintains their credibility, Starbucks does not just operate on one ethical standard but eight different ones. They are all different sources that are used for different reason within the company. Starbucks has two specific organization standards they go by that dealRead MoreBusiness Ethics Has Been Difficult For Me Essay1486 Words   |  6 PagesBusiness Ethics has been difficult for me. I have not had any background in business and so learning the vocabulary was definitely a challenge. The course as a whole has many different parts. The lecture and notes as well as the case readings. The case readings tied all of the vocabulary together and helped me to put the information we have learned into a real life scenario. Overall, Business Ethics has been a great way for me to learn about different companies. I also believe this course helpedRead More Starbucks Business Ethics Case Analysis Essay examples1451 Words   |  6 PagesStarbucks Business Ethics Case Analysis INTRO Ethical issues in business are a common placed every day occurrence that will never cease to exist. We will discuss an ethical issue that involves a large American corporation and its practices when dealing with suppliers of produce that is essential but not solely used by this business. We will present several point of views backed by literary findings that suggest ethical practices may or may not be at hand. BODY Mr. DonaldRead MoreStarbucks : A Global Business Essay1384 Words   |  6 PagesStarbucks was founded nearly forty-five years ago as an organization that holds the belief that it was possible to balance good business with uncompromising values. (CITE 1) Starbucks is a global business that operates in over seventy countries and has more than twenty-four thousand stores. Starbucks locations serve hot and cold drinks, whole-bean coffee, espresso, tea, and pastries. Few offerings are limited to seasonal times throughout the year or are specific to the locality of the store. StarbucksRead MoreEthics and Compliance Paper Fin/3701357 Words   |  6 PagesEthics and Compliance Paper FIN/370 Starbucks Coffee Company â€Å"To inspire and nurture the human spirit – one person, one cup and one neighborhood at a time (Starbucks,  2012).† Starbucks mission is to not only provide the highest quality of coffee but also make a positive impact on the world. Ethisphere Institute over the last six years has selected the World’s Most Ethical Companies and Starbucks has made the list every year. What are the key components that make Starbucks one of the most ethicalRead MoreFriendship1725 Words   |  7 Pagesprinciples? Describe how the company’s guiding principles would influence how a barista at a local Starbucks store does his or her  job. How these principle would influence how one of the company s top executives does his or her job. Answer:  Starbucks guiding principle clearly describes the mission and purpose of Starbucks existence. They describe that Starbucks is not just selling Coffee and  earning profit, Starbucks is all about providing people with a second place between their home and work where theyRead MoreEssay on Enviromental Factors For Starbucks1182 Words   |  5 PagesStarbuck’s Environmental Factors Starbucks has wide range of business activity. These activities allow the company to use numerous channels of product distribution. With the company operating in many locations throughout the world, environmental factors play a major role in marketing decisions. Each distribution channel is affected differently and the company’s flexibility in the marketing plan allows the company to adjust their strategies to meet the needs of the environmental factors that faceRead MoreStarbucks and Business Ethics1569 Words   |  7 PagesStarbucks and Business Ethics Different businesses have different ways of advertising their products and contributing to the outside world. Starbucks being amongst these different businesses has an unethical way of marketing its goods. Their advertisements are very broad and manipulative to their customers. Starbucks follows business ethics, which is what makes marketing and global contribution circulate. They also give businesses different objectives they follow to be more fair and truthful toRead MoreMarketing Analysis : Starbucks Corporation1256 Words   |  6 PagesStarbucks Corporation is a globally well-known America company, who has been successfully maintained its stable loyal customer basis around the world. The company was initially established in Seattle, Washington, providing quality premium coffees with a superior level of customer service. The goal for Starbucks coffee is to grow under the highest standards of quality, using ethical sourcing practices, being dedicated in serving the world’s finest coffee and creating best customer experiences. StarbucksRead MoreStarbucks : Ethical And Ethical Issues Essay1089 Words   |  5 PagesAbstract Starbucks is renowned for its morality due to their innovative sustainability and environmental policies and operations. They strive to go beyond mandated regulations by implementing ethics as part of their core practices. However, no matter how flawless their code of ethics is; they, too, face ethical issues and commit unethical acts. First, they are responsible for putting small, local coffee shops out of business which creates a uniform retail culture throughout cities. Second, they advertise

Impact Of The Income Inequality On The American Dream

Impact of the Income Inequality on the American Dream The book called They Say I say with Readings contains multiple articles. However, chapter nineteen focuses on the American Dream. Chapter nineteen, â€Å"What’s Up with the American Dream?† indicates how the article will be focusing on the American Dream. The American Dream changes over the course of time as the income inequality widens between the higher and lower class. Few events occurred that affected the income, which led to a growing gap between the different classes. The income of a person depends on the education that a person possesses, which can affect one’s income. Consequently, causing inequality between the different classes. People believe the American Dream changes over time as situations and circumstances vary. Health care is affected by the income inequality because different choices of insurances and doctors are available to those with specific incomes. The impact of the Income Inequality on the American Dream by the gap increasing between higher and lower class, education, interpretation of the American Dream over time, health care, and gender roles. Various authors from chapter nineteen and others from different resources focus on how income inequality affects the American Dream. Multiple authors from chapter nineteen and other sources believe that the gap between the higher and lower class is steadily increasing. Mr. Saez, collects the information regarding the income from the International RevenueShow MoreRelatedEssay about Death of the American Dream1042 Words   |  5 Pagesï » ¿Death of the American Dream Flashback to the stigma of anti-Communism in the 1950s, communism places extreme emphasis on class divisions, specifically the unfair nature of the upper class’ domination of the working class. To admit class divisions was to invite revolution and socialism. So instead, we told ourselves that, in this country, class did not exist; that a free-market capitalist society permits anyone who wants to improve his socioeconomic status to do so. In his essay Class in America:Read MoreSklar and the Economist: Inequality in America1687 Words   |  7 PagesAmerica was once known as the land of opportunity. However, that is no longer the case. Americans are still suffering from a depression that began three years ago in 2008. According to the Bureau of Labor Statistics, in 2007, the United States unemployment rates were 4.6 percent. In 2009, one year after the depression began, the unemployment rate rose to 7.6 percent. Millions of Americans are living in poverty, unable to afford the b asic necessities. On the other hand, there is a minuscule percentRead MoreWomen’s Income Inequality and The American Dream Essay1358 Words   |  6 Pages Income inequality is a big ongoing problem in the United States. It has a big effect on what America was all about, the American dream. The American dream that everyone is equal and has equal opportunities. Although a big part of what goes on in the Untied States that just doesn’t fit the American dream; women are unequal in the work place. They are put under what is known as the â€Å"Glass Ceiling†. Women do not get promoted in the work place and aren’t getting equal pay as men. This also leadsRead MoreThe Poverty Of The United States1486 Words   |  6 Pagesnations in the world with having a high inequality than other industrialized countries. Inequality exists in income, wealth, power and education. People who are legally and socially poor in the United States tend to stay in a cycle throu gh life, not always by choice, but because they are given less opportunities, education and tools to achieve their success. The poverty stricken class has a significantly larger income gap than the upper class, the American Dream is weakened through opportunity and isRead MoreRaising Taxes By The Middle Class1208 Words   |  5 Pagesfixing the income inequality and gaining more wealth, however, this can be easily resolved by focusing on mobilizing the economy as a whole by raising the tax fairness. I believe that if the focus were mainly on raising taxes, it would allow for some stress and worry to be lifted off of the middle class and those in poverty. As a result, the rich will pay more taxes, which will benefit the middle and lower class. The so called â€Å"American Dream† is slowly losing its meaning when income inequality comesRead MoreChapter 2 Test Political Science Pearson Essay987 Words   |  4 Pageshousehold income Gross domestic product Poverty line Mass production factor 2) The degree of ________in the United States is unusually high compared to other developed countries. Religiosity Political idealism Racism Demographic homogeneity Civil liberty 3) Belief in which of the following ideals is part of the core of American political culture? Government intervention Allegiance to parental homeland Caste system Strength in diversity Foreign diplomacy 4) Income inequality has increasedRead MoreThe American Dream885 Words   |  4 PagesIs prosperity possible The American dream, an essential part of our lifestyles, the American dream, the determination of all Americans, the American dream, a fantasy that is almost impossible to achieve. Were currently the only first world country with third world wealth distribution (Reich), and thanks to the great recession of 2008 which lingers on to this day, and we may never reach wealth equality. Due to a myriad of factors involving the great recession, the wealth gap grew almost exponentiallyRead MoreIncome Inequality in the United States Essay788 Words   |  4 Pagesof all income, while the richest earned 88.9% of all wealth. A big gap between the rich and poor is often associated with low social mobility, which contradicts the American ideal of equal opportunity. Levels of income inequality are higher than they have been in almost a century, the top one percent has a share of the national income of over 20 percent (Wilhelm). There are a variety of factors that influence income inequality, a few of which will be discussed in this paper. Rising income inequalityRead MoreAmerica Seems to Be Moving towards a Two Class System Instead of the Traditional Three Class System1059 Words   |  5 Pagestheir time. Ford had a problem with finding reliable employees. He came to the conclusion that if he offered his employees better pay, he would have employees that cared about their job. The five dollars a day ended up having some major positive impacts on Fords company. Daily absenteeism dropped from 10% to under 1%. Replacement hiring dropped from 53,000 in 1913 to just 2,000 by 1915, even though Ford’s workforce had grown substantially by then. And production in many departments soared by 50%Read MoreWhy Educational Inequality Affects Us All950 Words   |  4 Pages Situation Analysis Educational Inequality affects us all. Regardless if you have children or not it affects your life. Why educational inequality is such an important issue in today’s society? This informative essay is directed towards parents and teachers. Most parents want a great education for their children. A lot of parents have lots of time and energy vested in their children’s education, from teaching their kids there ABC’s to multiplying fractions. It’s a fact that if a child feels

Investment Free Essays

Bicycles Is a London based company, which Is part of rapidly expanding global market. There Is currently huge potential for growth within the Industry. Sales of the folding bicycles are expected to reach 19,000 with a pre tax profit of IEEE,OHO for the year. We will write a custom essay sample on Investment or any similar topic only for you Order Now In a bid to boost production to 50,000 bikes per year they are currently in the process of a El m revamp and the introduction of new management. The lack of growth within Prompt Bicycles is also as a result of the fierce intention from overseas manufacturer’s, which are able to produce more bikes at a much faster rate and with a lower wage cost but Prompt bicycles are unwilling to move locations due to the high investment they have made in tools and specific skill training for their 85 staff. Prompt Bicycles have managed to reduce cost In some areas such as not having to invest In new tools or machinery as a result of their design hardly changing for 20 years. They have also managed to save on marketing cost through relying on word of mouth to promote the business, there are plans to change this In order to try and increase sales in the overseas market Summary of Prompt Bicycles Prompt Bicycles is a London based company, which is part of rapidly expanding global market. There is currently huge potential for growth within the industry. Sales The lack of growth within Prompt Bicycles Is also as a result of the fierce impotently from overseas manufacturer’s, which are able to produce more bikes at a Prompt Bicycles have managed to reduce cost in some areas such as not having to invest in new tools or machinery as a result of their design hardly changing for 20 mouth to promote the business, there are plans to change this in order to try and increase sales in the overseas marketer’s of Prompt Bicycles increase sales in the overseas Summary of Prompt Bicycles increase sales in the overseas market How to cite Investment, Papers

Aviation Management Service Quality and Customer Satisfaction

Question: Discuss about the Aviation Management for Service Quality and Customer Satisfaction. Answer: Introduction The current report revolves around the aviation management of full service network and low cost carriers. It is evident that airline industry has been increasingly developing with the record of carrying around 3.5 billion passengers on its scheduled services. It is observed that the industry is characterised by multiple key airline business models. However, two most effective model is the full service network (FSNC) as well as low cost carrier (LCC). In this context, De Neufville et al. (2013) commented that a distinction was observed in between the scheduled traffic that is comprehensively regulated and non-scheduled traffic in the realm of commercial air transport. On the other side, Shapiro and Varian (2013) also commented that low cost travel has now become one of the most effective ways of flying within Europe. At the e same time, it is notable that the figures of low cost-growth has also become stunning. Nevertheless, it has also been identified that there are some sorts of slowdown in the organic development of the low cost carriers (LCC). This is because of the decreasing average frequencies as well as increasing average route distance. The current report provides an insight regarding the revenue and the cost structure of the full service network and low cost carriers. Likewise, it also describes how the airline services in Australia and New Zealand implements the approaches to increases the revenue and use the cost structure of FSNC and LCC. Describing the revenue and the cost structures of full service network and low cost carriers (LCC) It has been identified that a legacy or the full service network is airline that usually focusses on providing a vast range of pre-flight as well as the on-board services, involving multiple services classes and the connecting flights. In this context, Dobruszkes (2013) commented that since the beginning of FSNCs operation on the hub-and-spoke model, this group of airlines are generally referred to as hub-and-spoke airlines. The below mentioned table 1 shows different types of sources that Full Service Network has been developing to maximise the revenue. This means FSC usually carries freight and it signs the contracts of the governments to carry mail, duty-free on- board to maximise the revenue as well as rent lease equipment to other airlines (Thompson et al. 2013). Revenue Account Medium Revenue Account Medium Passenger Passenger Traffic Charter Available Aircraft Time Freight Freight Traffic Duty-Free On-board Sales Mail Contracts of the government Services Maintenance handling for other airlines Excess Baggage Passenger Traffic Lease Income Lease of Equipment to other airline service Table 1: FSNC Revenue sources (Source: Lee,Seo and Sharma 2013) Likewise, the below mentioned tables demonstrate the airline as well as the aircraft operational expense. In order to minimise the expense, FNCS needs to develop the strategies for short-haul as well as the long-haul flight. Direct Operational Costs (DOC) Flight Operation The salaries and the expenses of the flight crew, the expense of fuel and oil, route charges and other expenses related to aircraft insurance, rental and lease of flight equipment Maintenance and overhaul Cost of engineering staff , spare parts consumed and administration and maintenance Depreciation and amortization Equipment of the flight, ground equipment and the property, the cost of development and crew training Station and ground expense Building, equipment, transport, maintenance costs paid to others and ground workers Passengers services The salaries of the cabin crew and expenses, service costs of other passengers and the insurance of the passengers Table 2: Airline operation cost (Source: Daft and Albers 2013) Discussing the approaches that have been considered to increase the revenue and minimise the costs by full service network and LCCs The cost structure of the FSNC model appears to be no longer an effective business model as they are implementing Low cost carriers operations strategies to decrease the fares as well as compete against the low-cost airlines. In fact, FSNC could continue to exist; they provide widely valuable services to large number of customers. The Full Service Network model could implement the strategies applied by LCS that may not affect the quality of services that they provide to the passengers such as frequent scheduling, inter-flight flexibility. The services also include like comfort on-board, in-flight entertainment, free mail and drinks. Furthermore, it has been observed that FSNCs strategies are designed to reduce the labour cost and increase productivity, transfer services to regional partners and build franchises. The FSNC model also uses the approaches to hire the new staff on less substantial contracts and outsource more activities. As commented by Baker (2013) FSC has been changing much of the techniques into a low-cost carriers. On the contrary, Timmins and Ham (2013) mentioned that a head to head strategy is implemented when FSC airlines implements the low-cost approaches in the particular routes in competition. Therefore, it can be mentioned that FSNs could have a control over the slots at the hub facilities or the ability to keep LCCs away of the hub operation. Cutting out the labour: It is evident that labour cost is one of the major concerns that airline organizations have to manage. In such situation, it is effective to cut down the workforce and adopt technology to get the work done quickly. For example, auto baggage check in could save a lot of time and the passengers would not have to stand on the queue for long. Hub and spoke structure: As mentioned by MacDiarmid (2013), Hub and spoke structure proves to be useful in FSNC, where they can have several spokes as well as a single hub. For example, while considering the Singapore Airline, Singapore being the hub, which has several spokes. Costs associated with the Ancillary: People who travel by air come from different culture and economic background. Some people may not compromise on their luxury. Thus, due to this reason, the airline has to develop different seat capacity. For example, the first class experience in aircraft feels the same as comfortably sitting in the couch at home. In addition, first class passengers get the full access to the luxury lounges in the airport where they could spend time with all facilities. Thus, first class tickets are very costly than any other categories. Therefore, it can be mentioned that selling one first class ticket could be equal to almost four economic tickets. Furthermore, it has also been identified that the majority FSN airlines have not applied the reduction of the flight and cabin crew at the low cost; rather the crew have to work early to flight from the other countries to minimize the accommodation cost. Conversely, Semple et al. (2013) commented that to resolve this issue, FSN are ceasing the secondary airports operations. A number of variables have been found that largely affect the FSNs operation being include the allocation of the seat, number of handle baggage as well as the use of loading bridges as they often delay the turn-around time of the aircraft. Assessing and reporting on the revenue sources and importance of ancillary revenue for Air New Zealand Group (2007-2015) It is observed that Air New Zealand recorded a net profit of $327 million for 2011 to 2015, which is considered as the 24% increase from the previous year. As put forward by Ramasamy, Sabatini Gardi and Kistan (2014), Air New Zealand has attributed to its strong financial performance to maximise the customer demand as well as additional capacity, lower fuel price and effective initiatives to minimise the cost. According to the recent published report, sales as well as marketing costs increased by 8.3% to $303 million, as the outcome of marketing new routes. Another increase of 3.6%o in labour cost has also been experienced. Regional coverage- Behind such excellent financial performance and increased revenue some domestic operation of Air New Zealand Group has also been identified. As mentioned by Gardi Sabatini Ramasamy and Kistan (2014), Air New Zealand operates flights to 42 towns as well as the cities across New Zealand. The studies indicate that Air New Zealand has maintained its services in some particular regions at considerable cost. It has also been identified that over the last few years, Air New Zealand anticipates that it has spent almost $1 million in a month for the providing services to the cities and towns. Furthermore, it has also been identified that Air New Zealand has the best regional network of any country. They provide the services to the towns with the population of 20000 people. Thus, it can be mentioned that the organization increases most of its revenue from the domestic services. Asian market: It is also observed that the number of visitors who travel from China to New Zealand has increased by 138% between 2007 to 2015. However, Ager et al. (2014) provided the sources that revenue for derived from the Asian market by Air New Zealand has decreased from 22% of the revenue generated in 2009 to 2011 to 18% in 2014/2015. It is also observed that Air New Zealand deals with a tough competition from Chinese airlines. Nonetheless, the organization closely work with the Tourism New Zealand. This helps the organization to attract Chinese demographics that adds better value to New Zealand tourism. In addition, due to the healthy climate and beautiful natural view of the country, people across the globe prefer to visit to New Zealand. Air New Zealand tend to attract wealthier people or the visitors who prefer to stay longer and travel across the country. Apart from the above-mentioned sources, some significant sources are there in which, the organization collects the revenue in terms of ancillary. The sources are such as Sustainability Framework, Environmental sustainability, Virgin Australia Alliance and Service out of Wellington. Analysing and describing different Air New Zealand Group cost (2007-2015) It has been identified that Air New Zealand operates its business in a very competitive market and developing the ways to minimise the operational costs, increase the rate of passenger satisfaction. The airline group is determined to differentiate themselves from this stiff competition. The operations involved in the airline services provided by Air New Zealand widely influence the financial performance positively and negatively. Some cost determinants are there in which Air New Zealand invests a large amount. However, there is a cost gap exists in each region of across a degree of cost categories. In this context, Strohmeier et al. (2014) commented that in 2008, there was 36% cost gap in respect of the operational cost. The operational cost of Air New Zealand can be categorised in different sector such as global operation cost, aircraft operation cost, fuel operational cost. It has been observed that the biggest source of unit cost advantages of New Zealand is in labour costs, which accounts for almost $51,435 annually per employee. Labour cost: Air New Zealand has lost more than 5% of its equity on labour cost management. Air New Zealand due to its strong operation both in domestic as well as global market, it has implemented the practice. Air New Zealand has a two-tier tax-free salary system as well as sourced from cheap Asian markets. Fuel cost: It is also observed that fuel cost has usually replaced the labour cost as the largest expense operating the airline services. As mentioned by Dobruszkes (2013), Air New Zealand saved almost 21% as well as 14% more fuel costs than the competitors in the airline industry. Analysing and discussing the year on year trends in the Air New Zealand Group fuel cost (2007-2015) It is evident that fuel cost strategies of the airline organizations have always been developed based on the current trends. As put forward by Lee, Seo and Sharma (2013), there has been a direct reduction to operate the costs with the reduction of fuel expense. It is identified that the rise in the fuel prices in the recent time has dramatically changed the equation of the airline business model as well as it has caused the unexpected demand for the more effective and efficient aircraft. It can be mentioned that decrease in the fuel price could influence the operation of airline service positively. Year Domestic International Consumption (million Gallons) Cost Million Dollars Cost per Gallon Consumption (million Gallons) Cost Million Dollars Cost Million Dollars 2012 1128.0 677.5 0.67 387.0 313.8 0.81 2014 1076.8 789.6 0.72 366.1 267.9 0.81 2015 1176.0 876.0 0.75 446.8 336.9 .083 Table 4: Year on Year on fuel cost (Source: Baker 2013) Identifying and discussing the fuel conversation strategies defined and implemented by the Air New Zealand Group (2007-2015) Environmental sustainability: Air New Zealand acknowledge admits that the aviation industry is one of the big hydro-carbon consumer as well as the polluter. Thus, the airline focuses promoting New Zealands 100 pure image in their collaborative partnership with the department of Conservation. Since the people in the country are doing the Great Walks of New Zealand, the partnership has increased. This enables the organization to develop the services and provide the unique experience to the customers. This eventually influence the financial performance. Commitment to the environment: Air New Zealand is considered as the world-leader in investigating the every aspect of flight operations to minimise the carbon emission by applying the technique of saving fuel. The Air New Zealand makes sure that it could predict fuel usage with the highest range of confidence as well as it could measure the progress appropriately. The Air New Zealand cut fuel consumed by 15% (Lee, Seo and Sharma 2013). Sustainable Bio Fuel: The organization has successfully accomplished worlds first commercial aviation test flight, which is powered by sustainable second-generation bio fuel jatropha. This has played a crucial role in the certification of the aviation bio fuel for the airline internationally. This initiative enables the drive for more sustainable air travel for forthcoming generation. Assessing and explaining the Air New Zealand Group annual profitability trends (2007 to 2015) It has been identified that Air New Zealand has announced its earning for the year 2014-2015, which is more than $805 million compared to $456 million in the year previous years. According to the financial statement recently published, it has been identified that the passenger revue of Air New Zealand has increased to $3765 in 2014 compared to $3876 in 2014 (Airnewzealand.co.nz.2016). However, the revenue from the cargo operation is observed to be $296, which is decrease to $ 287 in 2014. Likewise, the revenue from the contract services decreased to $277 in 2015 from $388 in 2014 (Airnewzealand.co.nz.2016). On the contrary, it has also been identified that the earning before the finance costs and taxation was $634 in 2012; however, it is decreased to $309 in 2014. Conversely, in 2014, it has increased to $ 405. The outcome indicated that in 2012 and 2013, the financial performance or the overall income of Air New Zealand was better than the performance of the recent year. Options 2015 2012 2009 2007 Operating Revenue $3876 $3765 $31689 $30973 Revenue from the contract services $277 $203 $287 $290 Earnings before finance cost and taxation Finance income $403 $309 $675 $432 Table 3: Trends in the financial profitability of Air New Zealand (Source: Airnewzealand.co.nz.2016) Identifying and explaining the key financial performance drivers of Air New Zealand Group (2007 to 2015) From the long-term operation of the New Zealand, some significant drivers have been identified that could largely influence the financial performance of the airline service. Global market presence: The Air New Zealand Group has focused on increasing the global presence, the initiative directly influence the financial performance of the organization. By developing its services, Air New Zealand has created a strong influence in the Asian market. As mentioned by Ramasamy et al. (2014), millions of people from India and China visit New Zealand for education, work, and trip and for other reasons. Thus, the profit margin of Air New Zealand has been increasing, which positively influence the financial performance of the organization. Customers: The Air New Zealand has gained the popularity for long-effective services. The airline service provider delivers a consistent as well as personalised customer experience throughout the journey. The Air New Zealand is determined to persistently applying the innovation in the customer service such as providing seamless check in process and increased loyalty programme membership. Thus, the customer base of Air New Zealand is increasing, which has the impact on the financial performance. Conclusion On the completion of the report, it can be mentioned that there have many factors that could large affect the operation and the financial performance of the airline service. It is also observed that trends and features of airline business model could change based on the current demands of the services. In addition, three more passenger airline business models have been found including the Full Service Network and Low-Cost Carrier and the charter model. In order to decrease the operational cost, increase profits, these business models could use some core strategies such as cost leadership, differentiation and focus strategy. Reference list: Ager, A.A., Day, M.A., McHugh, C.W., Short, K., Gilbertson-Day, J., Finney, M.A. and Calkin, D.E., 2014. Wildfire exposure and fuel management on western US national forests. Journal of Environmental Management, 145, pp.54-70. Airnewzealand.co.nz. (2016). Results Centre - Annual and Interim Results. [online] Available at: https://www.airnewzealand.co.nz/latest-annual-and-interim-reports [Accessed 28 Aug. 2016]. Baker, D.M.A., 2013. Service quality and customer satisfaction in the airline industry: A comparison between legacy airlines and low-cost airlines. American Journal of Tourism Research, 2(1), pp.67-77. Daft, J. and Albers, S., 2013. A conceptual framework for measuring airline business model convergence. Journal of Air Transport Management, 28, pp.47-54. De Neufville, R., Odoni, A., Belobaba, P. and Reynolds, T., 2013. Airport systems: planning, design and management. Dobruszkes, F., 2013. The geography of European low-cost airline networks: a contemporary analysis. Journal of Transport Geography, 28, pp.75-88. Gardi, A., Sabatini, R., Ramasamy, S. and Kistan, T., 2014. Real-Time Trajectory Optimisation Models for Next Generation Air Traffic Management Systems. In Applied Mechanics and Materials (Vol. 629, pp. 327-332). Trans Tech Publications. Lee, S., Seo, K. and Sharma, A., 2013. Corporate social responsibility and firm performance in the airline industry: The moderating role of oil prices. Tourism Management, 38, pp.20-30. MacDiarmid, A.B., Law, C.S., Pinkerton, M. and Zeldis, J., 2013. New Zealand marine ecosystem services. Ecosystem services in New ZealandConditions and trends, pp.238-253. Ramasamy, S., Sabatini, R., Gardi, A. and Kistan, T., 2014. Next generation flight management system for real-time trajectory based operations. Applied Mechanics and Materials, 629, pp.344-349. Semple, S., Ibrahim, A.E., Apsley, A., Steiner, M. and Turner, S., 2013. Using a new, low-cost air quality sensor to quantify second-hand smoke (SHS) levels in homes. Tobacco control, pp.tobaccocontrol-2013. Shapiro, C. and Varian, H.R., 2013. Information rules: a strategic guide to the network economy. Harvard Business Press. Strohmeier, M., Schafer, M., Lenders, V. and Martinovic, I., 2014. Realities and challenges of nextgen air traffic management: the case of ADS-B. IEEE Communications Magazine, 52(5), pp.111-118. Thompson, A., Peteraf, M., Gamble, J., Strickland III, A.J. and Jain, A.K., 2013. Crafting Executing Strategy 19/e: The Quest for Competitive Advantage: Concepts and Cases. McGraw-Hill Education. Timmins, N. and Ham, C., 2013. The quest for integrated health and social care: A case study in Canterbury, New Zealand. London: The King's Fund.