Doubt Is the Key to Knowledge

Doubt is the key to knowledge† (Persian Proverb). To what extent is this true in two areas of knowledge? Firstly, to understand fully the proverb, definitions should be given. Doubt is the psychological status of being stuck between believing and disbelieving, involving uncertainty and distrust in a particular situation or issue or when there is lack of hard evidence and facts to support the alleged information, action, motive or decision.When you question a notion or you are open to inquisition or reassessment of it, you are having doubt. Only when you can find the justification for your doubt, one that satisfies whatever convinces you to think otherwise, then you will no longer have doubts. To have knowledge is like to have an explanation, understanding or reasoning   to things in the world. Knowledge can be both personal and collective, and not all knowledge is a fact. The big bang theory , the theory of relativity, and the string theory etc. rovides us explanations and re asoning to why the world is the way it is. These theories are what we know but are not necessarily the fact – we do not know if these theories are correct, but still knowing these theories count as our knowledge. Knowledge can come from our personal experience as well. This essay will seek to address the extent to which doubt is manifested as a key to knowledge regarding two areas of knowledge, Science and History.According to Academic Press Dictionary of Science & Technology, science is the systematic observation of natural events and conditions in order to discover facts about them and to formulate laws and principles based on these facts and also the organized body of knowledge that is derived from such observations and that can be verified or tested by further investigation. There is a view that science is seen as provisional, which means that it is subjected to being falsified.In an ever-developing world were new discoveries are made all the time leading to new theories and realizations, older theories are always at the threat of being falsified. Even the new theories, the scientific community will vigorously doubt and criticize any ideas until enough evidence is produced to back them up. It is without ground to say that the basis of scientific growth is on inferred or even imagined hypotheses by scientist in an attempt to create or explain something new or unexplained.Experiments are carried out and positive results can turn these hypotheses into theories and possibly knowledge, of course until they are doubted and contested against by new theories that explores the opposition of the theory in question. Throughout the history of Science, knowledge has been derived from the selfsame processes. In early Mesopotamian study, the Earth was believed to be a flat disk with a dome, until Ferdinand Magellan managed to prove that Earth was spherical after successfully circumnavigating the Earth in the 15th Century.Another example would be of the Italian phy sicist Galileo Galilei who, despite the endless controversy, criticism and denouncing made against him, proved false the long withheld notion of the geocentric view that the Earth was at the center of the Universe. Thus, it is evident that through the use of scientific theories, unless disproved otherwise, knowledge is updated and will remain as such through continual doubt. Hence we can see that as long as there is doubt, new things will be explored and old laws might be disproved of although it is perceived as knowledge to everyone.Although doubt leads to more and more correct viewpoint of an issue, we can never be certain that what we think of as knowledge now is definitely the real truth and can never be disproved. However, with that being said, I believe that doubt and doubt alone cannot be the sole key to gain scientific knowledge, but continual doubt can actually leads to wasting of time and effort and worst is to eliminate the correct fact that is suppose to be true which ca n lead to a regression of knowledge.Firstly, there are many theories in science that remain in the gray area that cannot be logically proven with our current knowledge, like for example the existence of black holes. No scientists have been successful in proving its existence. However, one of the many theories of the black hole might actually be true but as nobody can prove it so, scientists in the field may invest pointless effort into developing new theories instead of directing that effort into proving the theory, which is actually true. Also there are truths that can never be doubted or proven otherwise like the fact that the Earth orbits around the word.Thus, although doubt lends to the progress of science and hence knowledge, it also has limitations which might prove detrimental to the growth of knowledge. The next issue is that of religion. Religion is a collection of cultural systems, belief systems, and worldviews that relate humanity to spirituality and, sometimes, to moral values. According to New York Times writer Peter Steinfels, published in July 19, 2008, religion is no longer like it was in the past when religious faith was present in everything people do, even for oubters. Nowadays it is almost inevitable that believers must live in a condition of doubt and uncertainty. We often think that there is no room for doubt within faith, that doubt is weakness. Even worse, most conservative faiths regard doubt as something to be battled against because it is dangerous to one's faith. It can lead to heresy, doubting the existence of God, and, according to their belief, perhaps loss of salvation and eternal torture in the fires of Hell.Of course , it had been pointed out by religious thinkers a long time ago that being doubtful about a religion is not the opposite polar of the religion but it is actually the better way of having faith rather than blind belief. Personally, although I am a devout Buddhist, many a time I have found myself doubting my own re ligion. For example, I sometimes question whether there is such thing called karma or does everything just happen by chance and karma is just a way to scare believers into doing good deeds for they fear of having to suffer the consequence afterwards.Ultimately there are people who are kind-hearted and yet still suffer every day. I found my answer not long ago about how it is related to another issue of reincarnation and bringing over karma. I did feel guilty of doubting Buddha and his words but then I learned that he said: Do not accept any of my words on faith, Believing them just because I said them. Be like an analyst buying gold, who cuts, burns, And critically examines his product for authenticity. Only accept what passes the test By proving useful and beneficial in your life.The Buddha (Jnanasara-samuccaya) Doutb, to Buddha is necessary because there is no point in following a religion blindly. According to the Buddha, religion should be left to one's own free choice. Religion is not a law, but a disciplinary code which should be followed with understanding. That’s why the Buddha told his disciples not to blindly follow his teachings but test them and verify them through their own experience like a goldsmith tests the purity of gold. However sometimes fir belief in the spiritual side of things can be necessary or at least comforting.In the book : â€Å"The Age of Doubt: Tracing the Roots of Our Religious Uncertainty†, an example of a 20-year-old boy was given. He is of an agreeable and intellectual appearance,† but he's soon beset with existential and religiously-inflected questions, tied to his faith, that he feels compelled to ask his doctor: â€Å"What am I? What are all these things that are made like me? Why am I? â€Å". â€Å"Why am I? † is perhaps the most remarkable of these questions, with religion offering an answer more confident and comforting than science perhaps ever could.But as his doctor explains, the patien t finds no comfort in theology. He is in one sense suspended between two options, greater faith and firmer uncertainty, yet neither strikes him as possible or appealing. Ultimately religions are spiritual havens that most followers take refuge in; and by constantly doubt its truth, it defeats the purpose of having religions as people are always have this insecurity that what they are doing, adhering to may not do any good to them despite what their religions says.In conclusion, due to the broadness and ambiguity of the knowledge areas of Science and History, it is impossible to accurately evaluate doubt and its ability to present itself as the key to attaining knowledge. Nonetheless, through careful study and research on these various areas of knowledge, this essay presents the stand that doubt, to a large extent, is an indispensable and important factor as the key to knowledge. 1505 words ———————————â€⠀Ã¢â‚¬â€Ã¢â‚¬â€- [ 2 ]. Sharpe, Alfred. â€Å"Doubt†. The Catholic Encyclopedia, Vol. 5 (New York: Robert Appleton). Retrieved 2008-10-21. [ 3 ]. http://blogs. yis. ac. jp/13hwangj/2011/09/05/definition-of-knowledge/ [ 4 ]. http://en. wikipedia. org/wiki/Religion#cite_note-0 [ 5 ]. http://www. nytimes. com/2008/07/19/us/19beliefs. html [ 6 ]. http://viewonbuddhism. org/dharma. html [ 7 ]. http://www. budsas. org/ebud/whatbudbeliev/277. htm

Easy Jet

The  marketing audit  is a fundamental part of the marketing planning process. It is conducted not only at the beginning of the process, but also at a series of points during the implementation of the plan. The marketing audit considers both internal and external influences on marketing planning, as well as a review of the plan itself 1. Environmental Audict on Easy jet(the factors that can influnce the company) A)Five porter’s forces: *Threats from new entrants : When new airlines enter the market ,how they affect easy jet *Threats from subsititue products: more options to go to a destination such as buses,train.. ow these things affect easy jet *Bargaining power of suppliers: if plane manufacturer factories sell planes with a high price ,how this affect the easy jet’s finance *Bargaining power of buyers: for instance easy jet makes a contract with plane factories for 10 years with the fixed charge so the factory can’t increase the price during this time. Ba rgaining lets you buy products at a cheaper rate *Internal Rivalry: Internal competation ,easy jet fight against other airlines Threat of substitutes-this can be anything that can be a substitute to EasyJet or airline industry in general.For instance, another airline with even lower prices, consumers opting to use other modes of transport (trains for instance). When Heatrow was hit by that huge fog just before Christmas and no planes were flying, Eurostar trains were suddenly all booked. I would think, however, that for Easy Jet, there would be no big threat of substitutes. There is a threat of ever growing competition but this isn't the case of substitutes. Substitues are in other words ‘me too' products which are less likely to occur in airline industry or service industry then in FMCG. I think. Buyers-here you can list down any possible threats from buyers.This is where you look at the relationship between Easy Jet and its targeted consumers. How strong is Easy Jet brand? D o consumers believe in, and to, Easy Jet? Are they loyal to Easy Jet or do they switch to other airlines with no real or perceived risks? If yes, why? If not, why not? Do consumers have alternative to Easy Jet? If yes, and I would say they do, how does the relationship between Easy Jet and its consumers change? Who has greater leverage in this relationship, consumers or Easy Jet? Who is more dependable on whom, why and to what extent? Etc†¦ Ask as many questions as you can and you will get your answer.Talk to someone who has used Easy Jet services, ask them what they liked and disliked about it, would they use it again and why, how do they feel about Easy Jet, how did they decide to fly with Easy Jet, will they choose Easy Jet again B)Swot analysis: 4 main strenghts and the opposite ones are for weaknesses *Finance *Technology *HR Department *Reputation and image EasyJet Airline Company Limited: Strengths: * EasyJet is a leading provider of  low budget, no frills air travel  servicing many of the leading city destinations in the UK and across Europe, including Berlin, Amsterdam, Barcelona, and Prague. They offer a high quality service at competitive prices and offer a number of features including ticketless travel, internet booking and assisted travel services. * They have a  highly distinctive livery  on their fleet of aircraft making them easily recognisable and distinguishing them from their competitors. * They have a  user friendly website  which fully discloses the price breakdown of the passengers planned travel. Offering a full breakdown of the price plan prevents any hidden charges when the customer confirms there booking. EasyJet offers an online promotion alert which is e-mailed to existing customers and contact on the company’s database. * Recognised as a leading brand name in the UK travel industry. * As a market leader in an industry widely seen as a leading contributor to the green house effect and global warming, EasyJet actively embrace there environmental responsibilities and continue to keep these factors as a keep priority when developing their future strategies. * EasyJet operate a fast and efficient service with an average turnaround time of 30 minutes or below.This enables them to maintain a reliable and hassle free service to their passengers. * For the case study,planes and turnaround times means to take short time on departure,use of internet,financial position The easy brand is a well known brand across the UK and  some areas of Europe. It is knownfor ‘low cost for the masses’ which is implied by their orange culture. They want to paint the worldorange, implying that they want to provide goods and services at the lowest possible price. easyJeteasyJet only offers a single fare class. Its pricing strategy is to offer ‘value for money’ and this is  doneby keeping costs to a  minimum.Unit costs are kept  low by eliminating travel agents, maintaining highaircr aft utilisation, focusing on internet sales, eliminating unnecessary service frills, operating a fleet of  similar aircraft and establishing long-term agreements with suppliers. One of the key strengths of easyJet has been the utilisation of the internet. easyJet bookings over theinternet relate to  over 92% of total sales and  is expected to increase. They see themselves as  becomingthe first internet only airline. Strengths: †¢ Cheap tickets. †¢ A simple fare structure. †¢ Image, differentiation on price andbrand. †¢Commitment to customer service. †¢ Multi-base network. †¢ Strong corporate culture. †¢ Flexibility to change bookings on theinternet. †¢ Lower costs than the  established airlines Weaknesses: * Domestic air travel is an extremely competitive industry with  EasyJet’s main competitors being Jet2, BMI Baby, Ryan Air plus a host of smaller independent competitors. These external competitive forces can restrict and shape pricing policy on some of  EasyJet’s less profitable routes as they seek to compete with their competitors. * They do not offer a free food service on longer flights of 2 hours plus. asyJet has many weaknesses but the main include the lack of service,flexibility and  business focus making  the low-cost model  unappealing to  business travellers. Businesstravellers are not included within easyJet’s business model. Since September 11 business  travellersaccount for 50% of passengers and therefore should be a target for marketing and should be included inthe business model. This can be seen as a weakness for not targeting this segment. easyJet’s business model also relies on people flying more often. However, there is a limit as to howoften people fly.The growth is not infinitive, it is possible that the low-cost market will be saturated. Itwill come to a point when the low-cost airlines will not be able to stimulate any more demand fromlow prices . (CPRE: The Future Development of Air Transport in the UK, July 2003 Weaknesses: †¢ Pilots over 65 are not allowed to fly over  France, Italy and Portugal. †¢ No guaranteed departure. †¢ No unaccompanied children under age of 16. †¢ No autopilot. †¢ Lack of service, flexibility and business focusmake the low-cost model unappealing tobusiness travellers. †¢ Focus on price and convenience is reaching itslimit.Differentiation will be difficult. †¢ Due to quick success it is difficult to recruitand train new staff. †¢ No customer retention scheme Opportunities: * Possible opening of alternative routes to major cities in Europe. A key route could be from Dublin to the UK, as this has a large potential for travellers going to soccer matches in the UK plus new links into corporate flyers to and from the UK. * Offering of free refreshments on flights with a travel time of over two and a half hours. This would offer an extra perk and comfort to pass engers making their experience with EasyJet all the more comfortable and enjoyable. Updated versions of the fly on the wall documentaries would provide the brand with more coverage and publicity. The opportunities in the industry mainly come from the Eexpansion. On the 1st of  May 2004, 10 countries will be joining the  EU. Thus, the EU’s membership will be  expanded from 15to 25 countries. The new states include former members of the Eastern Block and smaller â€Å"island†states. (bized. ac. uk) These are Cyprus, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta,Poland and the Slovak Republic.Further EU expansion is expected in 2007 when Bulgaria andRomania are hoping to join the EU, while Turkey is now currently negotiating its membership. (europa. eu. int)The addition of more than 100 million people to the EU’s market of 370 million will present anopportunity for further growth  for the low-cost airline industry. easyJet has already annou nced its newroutes from Luton, Berlin and Dortmund airports to Budapest (Hungary) and from Stansted airport toLjubljana (Slovenia). (easyJet. com) Threats: * Competitors flying the same routes compete very competitively on price forcing pressure on margin on more popular flights and time slots. External market forces can have a significant impact on  EasyJet’s business, e. g. the rising cost of oil can have a significant impact on running costs putting significant pressure on the profitability of less popular routes and time slots. * Pressure from unions and employee relations committees can signifigantly impact on the day to day operations with strikes proving to be very costly to the company’s image. * Economic downturn may lead to a decrease in casual flyers and corporate travel as companies seek to curtail what they see as unnecessary expenditure and in turn make less business trips.   Financial Analysis Within the  low-cost/no-frills  airline industry in  the UK,Ryanair  is easyJet’s main  competitor. Inevaluating the  financial performance of  easyJet, it  is therefore useful to  compare its performance withthat  of Ryanair. For the purpose of  this  comparison, we will be making use of a  number of ratioswhose formulae follow that of FAME. The data used for this financial analysis are easyJet’s unauditedpreliminary results for their financial year ended 30 September 2003, which provided results for boththe year ending  30 September 2002 and  2003.Ryanair’s financial year-end however is 31  March 2004. Therefore in  order to obtain data that  would be directly comparable, it  was necessary to use data fromtheir half-year which ends 30 September 2002 and 2003, and to use figures taken from their financialyear end 31 March 2002 and 2003. This enabled us to obtain figures for a full 12 months ending 30September 2002 and 2003. For a quick overview of all ratios refer to Appendix 3 a nd details of allcalculations  are contained in  Appendix  4. All financial  reports were obtained from downloadsavailable onwww. easyjet. com  and  www. ryanair. com.The first numerical set of data to  be analysed is the Profit and Loss Account. This deals with therunning of the business, i. e. the amount of turnover, the cost of what has been sold, the expensesgenerated during the year and of course the profit that has been made, perhaps the figure that theshareholders are  most interested  in, but there  are other criteria that  could affect the profitability of thecompany PEST analysis for easyJet The following factors are likely to have an influence on the airline industry and should therefore be taken into account when formulating a Marketing Plan for easyJet.Politico-legal factors †¢ Threat of war in the Middle East †¢ The Air Miles scheme is not considered as a taxable perk by the government in the way that company cars are taxed which may cha nge to allow easyJet to compete on more equal grounds with the likes of BA. †¢ A EU east-enlargement may provide access to viable, new markets. Economic factors †¢ Likelihood of increasing fuel costs, congestion and other environmental restrictions, as well as the prospect of higher security and insurance costs to reflect the risk of terrorism. As the recession is likely to last for some more time, business travellers will keep an eye on their travel expenses. †¢ Globalisation should continue to boost traffic in the long-term. †¢ The introduction of the single currency in Europe is likely to bring more business to easyJet as Europe becomes more integrated. Socio-cultural factors †¢ To win over the French and German publics might cause problems as there appears still to be a general reluctance to use credit cards over the phone and Internet . †¢ The public are general quite friendly to the prospect of cheap flights.However they may feel begrudged where t hey see promotions found in newspapers where flight are for ? 10 only to find that the actual cost is much higher for the particular time or day they wish to fly on. Technological factors †¢ A key issue will be the extent to which technological advancements – such as the use of the Internet on distribution and cost synergies from industry consolidation – can offset upward pressures on prices and costs. †¢ easyJet has to keep track of technological developments in the field of e-commerce and aircraft manufacture in order to gain a competitive advantage. CONTINUE..The business environment is a set of political, economic, social, technological, environmental and legal factors otherwise know as PESTLE analysis. These factors are not controlled by the business. Which means that businesses must adapt quickly as the environment changes. These macro factors have a positive or negative impact on the business. The political factor can be affected through tax policies a s Easyjet are charged with landing in different countries, employment laws, environment regulations, trade restrictions, tariffs and the government. The economic factor is forever changing with prices constantly fluctuating.For example oil prices increasing affects overall profits for the company which in return affects how much money Easyjet can invest on improving the airline or giving back to the communities. Baines, Phil and Page (2008a) explain firms are effected by environmental issues such as wage inflation, price inflation, gross domestic product and income sales and corporation taxes. From the social aspect this looks highly on safety of the airline and its staff and passengers. Which then attracts passengers to fly again after being ensured of safe and secure flights.To keep up in technology Easyjet must be internet dependant as flights are booked and checked via the internet. Therefore customers need to be satisfied with a quick and simple service. Easyjet also have a gre at career attitude which commits staff to be up to a excellent standard of service. Technology plays a huge factor within Easyjet as it has to rely hugely on the reliance of technology. Also as things improve technology becomes cheaper which means barriers to entry could be lower for competitors to join which could affect the profit of Easyjet. â€Å"Barriers to entry are designed to block potential entrants from entering a market profitably.They seek to protect the monopoly power of existing firms in an industry and therefore maintain supernormal profits in the long run. Barriers to entry have the effect of making a market less contestableâ€Å". (Tutor2u n. d) To prevent this research and development expenditure can act as an obstruction to potential entrants to industry PEST analysis PEST analysis is chosen, to look at the possible business environmental impacts that may affect theindustry and easyJet. It can be used to infer a variety of trends, patterns and projections which willinfluence easyJet’s future strategic decisions (ACCA 2004).PEST analysis was chosen over SLEPTanalysis as we found it difficult to differentiate between legal and political factors. The legal issubsumed into political. Consideration will be made to the political, economic, social and technologicalenvironments that may affect the industry and easyJet in the future. Political Environment The industry and easyJet must react to any regulations that are imposed by the political party and thecorporate governance code. The EU compensation ruling that will take affect in 2005 is currently beingchallenged by easyJet as well as other airlines.If this challenge is unsuccessful then it would meanincreases, in  legal battles, compensation payouts and  overall increases in costs. As  a result, fare  prices easyJetwill increase and demand will fall. This would make  it very difficult to see  the future for the  low-costindustry. Expansion of the UK airport system will play a major role in the future of the airlines growth model. Stansted is expected to have one additional runway and terminal, increasing UK air traffic growth to402 million by 2020, 501 million passengers by 2030 (Mintel report 2003).The government are seeingthe benefits that the aviation industry can bring to the country. The question that remains to beanswered is, for how long are the government willing to help the growth of the industry before theystart to intervene? Any intervention from the government is likely to be costly in the future to theindustry. Economic Environment The government may decide to impose taxes on  the industry. A possible introduction of  a ‘Green tax’,a tax on fuel to try and reduce the pollution that it causes, would increase the costs and as a result couldraise easyJet’s fares by more than 20% (Financial Times, 1 stNovember 2003). Also the ? 6 billionworth of subsidies that is currently received from the government may be reduced ov er time to limit thegrowth of the industry. The growth of the industry may need to be controlled to keep pollution to aminimum. As subsidies decrease there will be  an adverse affect on  fare prices causing demand to fall. This will also affect the business model as it would need to be revisited. The recent rises in the UK interest rate, which currently stand at 4%, has increased the public’sliabilities.People have less disposable income and as a result are less likely to travel abroad. Theincreases will also affect easyJets’s loan repayments on its new order of aircrafts. At present, paymentsrelating to  the purchase are not  included in the hedging  policy and therefore will affect the liabilities of  easyJet. Social and Cultural  environment The UK population as a whole are aging, people are living longer. The number of people between theage of 25 and 34 has been decreasing but the age group between 55 and 64 are expected to increasefrom 2005 (Mintel r eport 2003).The older age group tends to have more disposable income (SAGAholidays target this group) and therefore should be targeted more by easyJet. Saying this, younger  people who have less disposable income are now starting to go abroad for their holidays. This meansthat the airline industry is attracting more potential passengers because of their low fares. Technological  environment easyJeteasyJet’s use of the internet needs to be enhanced, they are aiming to become the first ‘web-only’airline.Currently 92% of their tickets are sold online and improving this figure will bring cost savingwhich in turn could  be passed on  to the consumers. This will make easyJet more competitive on price. easyJet will need to  keep track of  technical developments in e-commerce and  aircraft manufacturing inorder to compete against its rivals 2. 7ps Marketing Mix of Easyjet Product  Ã¢â‚¬â€œ Easy Jet is a flight booking company located at London. The  ben efits  of Easy Jet being online and on teletext means that they are providing better margins; this is where they are dedicated to customers digitally.Place  Ã¢â‚¬â€œ Not solely online but majority of sales are online so Easy Jet will concentrate on this target market. Today, technology allows us to sell more goods to fewer people, which is far more efficient than selling fewer goods to more people. This is confirmed by Peppers and Rodgers in their Marketing concept. Peppers an advertising executive and Rogers a marketing scholar, their concepts addressed â€Å"one to one marketing†and how it concentrates on providing services or products to one customer at a time. This is by identifying and then meeting their individual needs.It then aims to repeat this many times with each customer, this is so consumers feel relationships are in place when perhaps they are forged. Price  Ã¢â‚¬â€œ With Easy Jet being on the internet for such a long period it means it has cut out aspects such as â€Å"the post†, this is because tickets and boarding passes are now emailed to customers or printable online, therefore â€Å"cutting out the middle man†. Promotion  Ã¢â‚¬â€œ Easy jet’s website is offered through search engines and travel/flight comparison websites, this is both advertising and selling their service.They also send members emails with promotional offers. Physical Evidence  Ã¢â‚¬â€œ Although Easy Jet is based mainly online now, Easy Jet are still booked through travel agents or in the airport itself. Physically offline Easy Jet have recently in the previous few months been advertising in Sainsbury’s stores by staff (uniformed Easy Jet T-shirts), advertising there new partnership. Physical evidence online differs, they have aspects such as â€Å"security icon† and policies in place which gives consumers a sense of security when booking online.People  Ã¢â‚¬â€œ On Easy Jet’s website they have sections, such as blo gs, FAQ’s and a whole section dedicated to customer service to try and give consumers a sense that even though they are online they still have some form of contact to Easy Jet. Process  Ã¢â‚¬â€œ As mentioned above Easy Jet integrates online and offline by having customer service in the airport and online. CASE STUDY Product: Easy jet is an low cost budget airline as well as no frill. The easy brand has been extended to other products. There are now easyinternet cafes,easycar,easymoney and new easycruise products.Price: There 3 types of pricing which are Premium Pricing this is for specific segment of people for example apple targets for certain people. Low cost pricing which is for easyjet,targeting low cost price and low income people. Psycological pricing,99p instead of 1pound They use a low cost price to be competitive Place: It means Distrubition . Distrubition has manufacturer,agents,wholesalers,retailers,consumers. The more distrubition you have ,the more expensive yo ur products will be. easy jet has manufacturers and directly deals with consumers so they save money. lmost 90 percent of tickets are sold through the internet for the 10 percent agents sell so they sometimes deals with agents too. Promotion : internet People : Paperless opeartions since its launch easyjet have simplified its working practices by embracing the concept of the paperless office. they do everything online rather than people going to branches and taling face to face ,everthing can be done online so easyjet saves money for hiring less people Process : Ticketless travel passengers,instead receive an email containing their travel details and confirmation number when they book online. his helps reduce significantly the costs of issuing,distrubuting,processing and reconciling millions of tickets each year Physical Evidence: it means beauty,new planes ,comfort flights†¦ Each boeing is new 737 aircraft and has a list price in the region of 35million gbp. Therefore maximisi ng utilisation of each aircraft reduces the unit cost NOTES FROM THE CASE STUDIES MARKETING:The mutual satisfactions of both suppliers and customers. The method is the process of shaping and managing the marketing mix in a way which takes into considerition the needs of the customer and the goals of the organisation at one and the same time.Marketing is the performance of business activities that direct the flow of goods and services from organisation to their customers. Chartered Institute of Marketing defines marketing as; The management process which identifies ,anticipates and satisfies customer requirements effciently and profitably Professor Philip Kotler 1999 states;Marketing is a social and managerial process by which individuals and groups get what they need and want through creating,offering and exchanging products of value with others. People don’t only buy what they want to ,they buy them because of the value of products they require.Marketing is concerned with cu stomers ,they are the main element in marketing not quality or products. If customers are demanding for new products features,marketing department will have to communicate these requirements to the production department to make provision for new processes and new machinery. On the other hand if the customer change their pattern of shopping or seek more information regarding the safe us of product ,the company may have to recruit new marketing executives to match up to the demand. )Using technology on easyjet One of the most important developments in the UK travel industry in the last 15 years is the growth of the ‘budget’ or ‘no frills’ airlines, easyJet and Ryanair. Both of these airlines were launched when new regulations made it easier to operate between countries within Europe and both used new technology and other methods to sell seats, rather than through traditional high street travel agents.The growth of both companies has been exceptional and the a irlines have used similar approaches in their ‘business models’ * Use of the Internet to reduce distribution costs – easyJet was one of the first airlines to see the opportunity of the Internet when it sold its first seat online in April 1998. Now approximately 95 % of all seats are sold over the internet. * Maximise the time the aircraft is being used – For both Ryanair and easyJet maximising the use of each aircraft reduces the overall cost of running the aircraft. Ticketless travel – Passengers receive an email containing their travel details and booking reference when they book online, rather than a traditional ticket. This helps to reduce significantly the cost of issuing and processing millions of tickets each year. * ‘No free lunch’ – Not offering free catering on-board reduces cost. Passengers can purchase food on-board if they choose to. * Free seating – Unlike traditional airlines, Ryanair and easyJet passengers are not assigned a seat, unless they pay extra to board first.This helps passengers to take their seats more quickly and saves time. * Efficient use of airports – By reducing turnarounds (the time between landing and take-off) to 30 minutes and below, easyJet and Ryanair maximise the use of their aircraft. Not having pre-assigned seating, like traditional airlines, helps reduce turnaround times. * Reduced fares – generally Ryanair and easyJet offer cheaper fares than traditional airlines, especilally for passengers who can book early and take advantage of the deals available. Easy Jet MANAGEMENT 100 800 WORD SUMMARY 836 WORDS EXCLUDING REFERENCES EasyJet EasyJet Airline Company Limited headquartered at London Luton Airport is the UK’s largest budget airline measured by number of passengers carried, operating domestic and international scheduled services. Easy Jet has grown through a combination of acquisitions and base openings fuelled by consumer demand for low-cost air travel. Ryanair another budget airline is currently Easyjet’s biggest competition. EasyJet has adapted cost-cutting measures such as not selling connecting flights or providing complimentary snacks on board.The key points of this business model are high aircraft utilisation, quick turnaround times, charging for extras and keeping operating costs low however EasyJet flies mainly to primary airports. EasyJet also focuses on attracting business passengers by offering convenient services such as the â€Å"Flexi fare† which allows free of charge changes to the flight within a windo w, speedy boarding and a checked in bag. General environment – International dimension According to Samson and Daft (2009), general environment is ‘layer of environment that affects the organization indirectly’. It includes external factors that are not within an organization.One of the dimensions, international dimension is referring to factors that arise from foreign countries that will affect an organization. Factor that will either be an opportunity or threat to an organization will include having to encounter competition globally. An organization will have to face international competitors where it trade on its own even though not involve in exports and operates domestically. Besides, it would be essential to learn to adapt to the changes and trend circulating around the world as technology advances as time passes and political events such as Iraq war.Apart from that, rise of economic power of China has a significant impact on the international economy due t o the massive workforce, brainpower, population dynamics and abundant natural resources that many countries rely on. The always changing worldwide environment has very large impact on organization compared to domestic environment, demanding for great control of the organization. What is a competitive advantage A competitive advantage could be defined as a unique position a firm develops in comparison with its competitors (Hyvonen 1995, 334).It is imperative for firms to understand what it’s competitive advantage is and take advantage of them as it can change rapidly (Anthony, Perrewe, Kacmar, 1996, p. 468). One of the ways to create a competitive advantage could be, through lower prices or differentiation (Woodruff 1997, 139). Lower prices is a competitive advantage when a firm is able to sell their product cheaply to consumers. Lower prices may be dependent on lower costs, however lower cost itself is not a competitive advantage as it should come along with lower prices for the advantage to be formed (Kotha, Vadlamani 1995, 76).Differentiation can be achieved through, providing superior goods and services, through the firm’s image, flexibility, total supplies and speed (Kotha, Vadlamani, 1995, p. 76; Sashi, Stern, 1995, p. 126; Helms, Ettkin, 2000, p. 1) Easy jet as a buget airlines has set its competitive advantage through lower prices. How The International Dimension Impacts Easy Jet’s Competitive Advantage There are many ways in which the International Dimension has affected Easy Jet’s Competitive Advantage. After the 9/11 attacks the airline industry suffered extensively. Passengers opted to use less of the big airlines.This allowed Easy Jet to be more successful as passengers were choosing their services over the big Airlines in Europe. When the number of people who used Easy Jet’s services increased it would have allowed the airlines to spread their fixed costs, which in turn reduces overall expenses and meant that the y were in a position to lower their prices thus impacting their competitive advantage in a positively contributing to the overall success of Easy Jet. (Easy Jets Market Structure 2012) Another factor in the International dimension that affects Easy Jet’s competitive advantage as that EU had ruled an ‘Open Skies’ agreement which meant that Easy Jet was given the choice to serve flight paths that may have been normally associated with some specific airlines. This allowed them to choose the routes that they preferred allowing them to choose routes that gave them the most benefits. (Easy Jets Market Structure 2012) Easy jet is also influenced by rising fuel prices. Increased fuel prices meant that the entire airline industry around the globe and Europe had raised their prices.However, increasing fuel prices meant that even Easy Jet had to raise the price, and this does not work well with their low cost, low price strategy. Therefore there is a negative and positive e ffect by the rise of fuel prices (Topham 2012) Conclusion In conclusion, the international dimension of the general environment represents event originating in foreign countries as well as opportunities for Easy Jet in other countries. International dimension affects competitive advantage in various way. Easy Jet has proved to be robust and competitive in a tough general environment.This is due to its large competitive advantages, which is its low cost prices. However, it is the report on the overall international dimensions which affects the competitive advantages of Easy Jet shows that Easy Jet is a highly successful company, which is expanding rapidly. Besides, by engaging with the international dimension, Easy Jet not only get more benefit from its competitive advantages but also increase it’s cash flow from operating activities throughout United Kingdom. References Anthony, William P. , Perrewe, Pamela L. nd Kacmar, Michele K. (1996): Strategic Human Resource Management, Fort Worth: Dryden Press Bamberger, Ingolf (1989): Developing Competitive Advantage in Small and Medium-Size Firms, Long Range Planning, 22 (5): 80-88. Easy Jets Market Structure. 2012. Competitive Advantage and Developing a Competitive Advantage Over Rivals. Accessed September 18, http://www. 123helpme. com/view. asp? id=122608 Helms, Marilyn M. and Ettkin, Lawrence P. (2000): Time-Based Competitiveness: A Strategic Perspective, Competitiveness Review, 10 (2): 1-14.Hyvonen, Saara (1995): Competitive Advantage, Bargaining Power, and Organizational Performance: The Case of Finnish Food Manufacturing Firms, Agribusiness, 11 (4): 333-348. Samson, Danny, and Richard L. Daft. 2009. Fundamentals of Management. Australia: South Melbourne, Vic: Cengage Learning Australia, 2009. Kotha, Suresh and Vadlamani, Bhatt L. (1995): Assessing Generic Strategies: An Empirical Investigation of Two Competing Typologies in Discrete Manufacturing Industries, Strategic Management Journal, 16 (1): 75-83.Sa shi, C. M. and Stern, Louis W. (1995): Product Differentiation and Market Performance in Producer Goods Industries, Journal of Business Research, 33 (2): 115-127. Topham, Gwyn. 2012. EasyJet losses narrow despite fuel cost rise. http://www. guardian. co. uk. /business/2012/may/09/easyjet-losses-narrow Woodruff, Robert B. (1997): Customer Value: The Next Source for Competitive Advantage, Journal of the Academy of Marketing Science, 25 (2): 139-153.

Netflix’s Business Model and Strategy Essay

Netflix is the largest subscription service for sending DVD’s by mail and streaming movies and TV episodes over the internet. Netflix’s revenues grew from $500 million in 2004 to $519.8 million in 2010. Company’s net income increased from $21.6 million in 2004 to $141-156 million in 2010. It attracted 1.6 million subscribers in 2004 and had to 15 million subscribers by 2010. Reed Hastings founder and CEO of Netflix have pushed the company to outcompete its movie rental competitors by building the world’s best internet movie service. Netflix is the world largest online entertainment subscription service and revolutionized the way that people rent movies. Netflix has outcompete its rivals on the basis of differentiation features, with their higher quality, wider product selection, added performance and services, and has superior technology. Netflix has a large selection of DVDs to choose from. It maintains relationships with entertainment providers to expand the title selection. Movies are prescreened for customers based on peer reviews. This allows Netflix to increase their inventory with movies chosen by viewers. There are no late fees. Netflix technology is superior because movies and TV episodes can be streamed directly onto nearly any device in a matter of seconds. Netflix business model and strategy can be analyzed with the 5 competitive forces in the movie rental marketplace: 1-substitute, 2- buyers, 3- suppliers, 4- potential for new entrants, 5- rivalry Substitute-It does not matter who sells the movie or the TV episode at the end the end user is getting the same product whether he got it from Walmart or Blockbuster. Substitute for Netflix and a potential threat is pirating movie files from the internet and illegal. This is a substitute that is inexpensive or free copy of the file. Buyers- Have the power to select where they are going to get movies or TV episode. They are going to look provides the best price and best quality. Buyers are not loyal and can get this product from other vendors. Competitors compare industry prices and quality. They will reduce cost in order to attract the buyer. Suppliers-Such are Hollywood are likely to increase cost if the industry profits increase. Suppliers have the capability to make movies and TV episodes harder to get by limiting license agreements. In order for suppliers to maximize their revenues they sell large number of movies and TV episodes the outcome results in competition and does not allow supplier to have much power on the product. Potential for new entrants- Blockbuster, and Netflix are the dominant retailers in the market it is very difficult for new entrants to succeed. Rivalry- Consumers have multiple sellers they can buy or rent movies and/or TV episodes. Main competitors are online subscription services internet movies and TV episode provider, kiosk services, and DVD rental outlets. From SWOT analysis we found the Strengths as followed, by operation on line is very flexible and very low cost, it has high customer satisfaction levels, and strong knowledge base and brand identity. Weakness are the industry, it is constantly changing at a fast speed, it is supplier dependent, postage is a variable cost (increases), customers need to have internet access and or DVD players. Opportunities are: It can expand globally to international markets because its internet access, new technology. Threats: If it’s not able to adapt or keep up with technology, rivals such as Walmart.com or Blockbuster have capital to compete against Netflix. There are some issues Netflix is facing Netflix needs to watch out for growing competitors with deep pockets and need to keep up with the fast growing changes with technology. It is recommended that Netflix increases its customer base (subscribers). This income will offset the ongoing costs. Netflix should move away from DVD rental, it creates a large percentage of its operating cost. Netflix should find out why people are still ordering DVD’s Netflix should educate customers with their streaming and downloading and focus on encouraging customers to stay with the service. Blockbuster advantage over Netflix is that they are able to release new released titles. Netflix needs to negotiate with entertainment providers to get new releases earlier than the competitors. Finally it is suggested that if Netflix is able to get new releases earlier they should pass a cost for the newest release (separately from subscription download monthly fee).

Leadership Essay Example | Topics and Well Written Essays - 500 words - 3

Leadership - Essay Example As mentioned above, schools obviously function as an open system, taking input from the environment, putting it through a transformative process and producing the changed product back into the environment. The second major frameworks schools function in is rational. A rational system is a system which attempts to achieve a specific goal with maximum efficiency. Though schools have a wide variety of goals, they are often very specific: they want to educate students to the point that they meet required standards (whether the standards are set by a school board, an accredited body, or the school itself). They seek to give students a balanced life, by providing access to education (in the form of physical education classes) and food along with academic pursuits. So clearly schools meet the first part of the definition of a rational system: they have specific goals. Schools also try to meet these goals in as efficient methods as possible; they employ teachers with enough experience to cov er multiple subject areas (such as physical education and another subject), they try to economize by using textbooks which will not become outdated quickly or can be used for multiple classes. So clearly they meet the second definition of a rational system.

History and Laws of Abortion in the US Research Paper

History and Laws of Abortion in the US - Research Paper Example Abortion has always been a controversial but frequently performed practice in nearly all parts of the world whether it is legal or not. Despite all the moral considerations, abortions were performed legally before 1880 in United States of America. After that most of the states banned the practice with the exception of the case for saving a mother’s life. Anti-abortionist movements, politics, and birth control efforts facilitated anti-abortionist or restrictive legislation throughout history. However, the case of Roe v. Wade and Supreme Court’s decision turned the history in favor of abortion forever in 1973.The abortion history before and after Roe v. Wade is entirely different. The law legalized the practice throughout United States considering it the privacy and right of a woman. The paper explores the history of abortion and laws involved with special emphasis on 1973 Roe v. Wade case. According to Webster’s New International Pocket Dictionary 1998,â€Å"The expulsion of a fetus prematurely, miscarriage, the defective result of a premature birth; a monstrosity, and a person or thing that fails to progress or develop normally or as expected† (as cited in Krieg, 1999, p.4).On the other hand, Webster’s New International Pocket Medical & First Aid Dictionary, 1998 refers abortion as, â€Å"The ultimate termination of a pregnancy, either by natural or artificial means† (as cited in Krieg, 1999, p.4). In United States, Abortions became legal after Supreme Court’s decision of the case Roe v. Wade in 1973.But the history of abortions dates back to the time when earliest settlers of this land arrived. In American colonies, English â€Å"Common Law† was adopted that prohibited abortion. It was considered a â€Å"misdemeanor† if performed before â€Å"quickening† while after quickening, it was considered to be â€Å"felony†. In early 1800s, the discovery about conception and

The Dramatic Form and Riders to the Sea Research Paper

The Dramatic Form and Riders to the Sea - Research Paper Example he reader a more diverse set of characters because other than the protagonist and antagonist, characters such as the minor character, stock character, foil, and confidant are present in a drama. In Riders to the Sea, the following characters are identified: Maurya (protagonist), Bartley and The Sea (antagonist), Cathleen (Minor Character), The Priest (Foil; while this character was never actually present in the play, references to him show that his approaches differ from Maurya’s), and Nora (stock character). Moreover, while the reader discovers each character as the piece progresses, they are immediately identified at the start of a dramatic piece. The same can be said about the setting of the drama, which is explicitly stated at the start of every scene. Another common element in a drama is the soliloquy made by the characters. A soliloquy is the speech given by one of the characters that is directed to the audience (Styan, 1960). One of the most powerful soliloquies of Ride rs to the Sea is that of Maurya’s towards the end when she was quite not sure whether to follow Patch’s or Michael’s

Employee Portfolio Motivational Plan Assignment Example | Topics and Well Written Essays - 500 words

Employee Portfolio Motivational Plan - Assignment Example As a matter of fact, he is on the brink of being the ideal employee; he just needs that aspect of motivation. Since Timothy has different needs that are independent of each other but all need to be satisfied, the motivation theory that best explains his situation is Alderfer’s ERG theory. For example, although he prefers to work alone, he aspires to be in a leadership position. At the same time, although he is socially inclined, he is not empathetic. Elza needs attention, emotional support, and better working conditions. She is a very emotional person who tends to get frustrated quickly. This could explain why she has problems with her boss and her juniors. Elza needs to feel valued, understood, and trusted. Her superiors should seriously consider her emotional needs and work conditions in order to bring the best out of her because these appear to be her main areas of concern. The theory that best explains Elza’s situation is Herzberg’s two-factor theory, which identifies motivators and hygiene as the two aspects that cause workplace satisfaction or dissatisfaction. While Elza is committed to her work and exhibits professionalism, her working conditions (hygiene factors) are suppressing her enthusiasm for work. Based on Herzberg’s theory, Elza’s situation embodies low hygiene and high motivation combination (Pinder, 2014). She can perform much better if she is provided with ideal working conditions an d more emotional support. Elza also exhibits certain aspects of McClelland’s motivation theory, specifically the achievement dimension. She wants to excel, prefers to work alone, and is extremely driven to accomplish tasks. Emerick has all the qualities of any organization’s ideal employee. However, he also has some weaknesses that need to be eliminated, although they are not so worrying as to affect his overall performance. This employee needs to be given more indoctrination in the

Assignment - Zara CaseQuest Research Paper Example | Topics and Well Written Essays - 1500 words - 1

Assignment - Zara CaseQuest - Research Paper Example The management at the company understands that the industry is dynamic and many factors continue to drive the change including customer needs and supply. However, supply is second to customer demands. The top management holds that the company must provide what the market demands and not vice versa (Bower, 2002). Zara has various opportunities and resources that would help the group meet its goals in the process of satisfying clients. The company maintains close management of with tight running of the process of production. To achieve this, Zara maintains both manufacturing and design processes in-house. The only exception is having strategic partnerships situated next to the head offices. Across Europe, the company keeps more than eighty percent of its production in-house with Spain having the least at fifty because of being close to the headquarters. Furthermore, the company enters into agreements with local manufacturers to strategically chase the clients appearing elusive. The agreements help in timely delivery of products as well as services. The company maintains flexibility by designing and producing more than twelve thousand new products to the market every year (Casadesus-Masanell, 2006). This is in addition to the benefits emanating from proximity. Application of these strategies makes the work of chasing to achieve their targets besides satisfying consumer needs. Value chasers are intangible and tangib le in terms of benefits received by stakeholders. From the tangible perspectives Inditex that owns Zara operates a net margin of slightly more than eleven percentile both in the market capitalization and operational activities. The working capital in terms of its net is healthy running more than one hundred and thirty-three thousand Euros. The exemplary performance in the financial sector demonstrates the prowess of Zara to run business in the industry. Within four years up to the turn of the century, the

The Idea of Being a Leader Personal Statement Example | Topics and Well Written Essays - 750 words

The Idea of Being a Leader - Personal Statement Example Though these were just a few flashes in the pan did not matter at that time. They helped boost my ego which stayed inflated for a long, long time. The last day of the school had come. Suddenly the world seemed large, wide and menacing. I would be leaving all my dear friends with whom I had grown up, laughed, cried, argued, fought, made up, and in general just took life for granted. They had seen me besides studying, taking the active part in school functions, sports, dramas, elocution contests, and always been there for me and with me. I was not really sure what I was to do after school years. One said to go to college, another said it was not worth it. That my parents could not afford my college fees did not deter me. I simply did not have the will. I did not wish to go through some four grueling years just to prove to the world I was leadership material. This is when I learned the importance of following one's intuition when all else fails to convince. (Dr. Garfield, 322)1. It took me a couple of years to decide that I had better learn some skills and find a job. This led me to take up a course in shorthand and typing. I found some jobs and did a course in business management. But there was something else life had in store. I was not aware of it. But when I was 19, a Christian group met me and told me I need God to help me steer the course of my life. After some hesitation, I gave them a chance. Pilgrim's Progress Working in an auto dealers firm, I took an active part in church activities in my spare times. Evangelism and church planting could seem to be a raw deal in the beginning. But it yields fantastic returns and dividends. I found myself participating in campaigns, leadership meetings, seminars, and even began making my own speeches and presentations. My desire for writing found expression in 1976 when I got an opening to work for a religious magazine run by an American lady editor, Jane McNally, under whose leadership, I was able to polish up my grammar and even learn writing skills. I began participating in writing seminars and competitions and won prizes. Visions and Goals I was moving up in life. I found a job in a large, consumer goods manufacturing firm, and got set to buy an apartment flat. But the pay from my regular job, though decent, was not enough. This is when I decided to give a shot at teaching. My English was good and so was my shorthand. I got a part-time assignment to teach both these subjects at an institute after my regular office hours.

Self centered Essay Example for Free

Self centered Essay In Society, Many people conduct themselves unsympathetic towards one another. A great example of how someone would treat one another in society is in Willa Cather’s short story â€Å"Paul’s Case. Where the Protagonist, Paul, displays a lack of sympathy in the way he conducts himself when he confronts himself with people and stressful situations. For Instance when Paul was â€Å"questioned by the Principal as to why he was there, Paul stated, politely enough, that he wanted to come back to school† (pg171). Even though, he said politely that he wanted to come back to schoolÍ ¾ he lied. Although, it is important to reconsider that Paul didn’t say anything else, due to fear of disapproval from his father. What was more inappropriate was his appearance of the scandalous red carnation in his buttonhole that he wore to the principal’s office that showed he had a lack of submission towards authority to his teachers. Furthermore, when also confronted by his teacher while he ushered at Carnegie Hall. Paul reflected himself â€Å"the tickets had probably been sent her out of kindness†(pg 173), While adding â€Å"she had no business amongst these fine people and gay colors† (pg173). By reasoning this way, Paul shows no compassion towards anyone he knows that may be able to receive the rich possessions or entertainment that he longed ­for. That he would have never experienced unless he ushered at Carnegie Hall.

Analysis And Evaluation Of Change In Avon

Analysis And Evaluation Of Change In Avon The main aim of this report is to investigate an organisation that is undergoing major strategic change. Firstly the report will describe the change that has been adopted. It will then evaluate the effectiveness of the change strategy in terms of the organisations structure, culture and politics. Finally the report will recommend and evaluate an integrated change strategy based on the three aspects. 2.0 A background of the organisation The organisation that has been selected is Avon Cosmetics Limited. Avon is a global manufacturer and marketer of beauty and related products. The company markets to women in more than 100 countries through more than 5 million independent Avon sales representatives. Product categories include: Beauty, which consists of cosmetics, fragrances, skincare and toiletries; Beauty Plus, which consists of fashion jewellery, watches, etc and Beyond Beauty, which consists of home products, gift and decorative products, candles and toys. (Avon, 2008 and Keynote, 2007) Avons company profile has been explored further in appendix 1 2.1 The meanings and theories of strategic change According to Lynch (2000, p921), Strategic change is the pro-active management of change in organisations to achieve clearly identified strategic objectives. It may be undertaken using either prescriptive or emergent strategic approaches. On the other hand Mintzberg et al. (2003) give five definitions of strategy and they are: a plan, a ploy, a pattern, a position and a perspective. It somehow agrees with Hayes (2002, p58) who states that a change strategy is essentially a plan to make things happen. It needs to address all the things that have to be done to bring about the change. However De Wit and Meyer (2004, cited in Hughes, 2006) emphasise that not all change is strategic and that much is operational. Operational changes are necessary to maintain the business and organizational systems, whereas strategic changes are directed at renewing them. 2.2 Avons strategic change Avons vision statement is to: To be the company that best understands and satisfies the product service and self-fulfilment needs of women globally According to Mintel (2006), the make-up market is growing fast in terms of fashion trends and has attracted many new brands over the past ten years. The cosmetic industry is very lucrative, innovative and fast paced industry. Therefore Avon has to watch the economy and rely on their brands. Being a global manufacturer and marketer of beauty and related products, Avon has been through several changes since it was founded in 1886. For over 120 years, Avon has been devoted to empowering women by helping them to look good and feel beautiful. The major strategic change is to: à ¢- ª Commit on brand competitiveness by investing millions in research and development on product innovation and increase advertising; à ¢- ª Re-design the organizational structure to eliminate layers of management in order to take full advantage of the global scale and size; and à ¢- ª Build a better tomorrow for women across the world both through representative earnings and helping millions of women to become entrepreneurs and run their own business. (Avon, 2008) (MultiChannel Marketing, 2007) It is suggested by Johnson and Scholes (2002) that we need to understand the magnitude of the challenge faced in trying to effect strategic change. In order to diagnose the strategic change within Avon, it is useful to consider the type of change that is required. In order to identify the type of change that has been adopted within Avon, we will use the model from Balogun and Hailey (1999, cited in Johnson and Scholes, 2002, p536, exhibit 11.2). Looking at Avons strategic change, it is quite clear that the nature of change will be incremental as it will build on the skills, routines and beliefs of those in the organization and the scope of change will be realignment as it will occur within the organizational beliefs and assumptions. The type of strategic change here will be adaptation as it will be accommodated within the current paradigm. Johnson et al. (2005) go to say that we need to consider the wider context in which change is to occur by understanding the organizational structure, culture, politics and the specific forces that will block and facilitate the change process. However there are other contextual characteristics that also need to be considered before embarking on a programme of change. They are: preservation, diversity, capability, capacity, readiness and power. 2.3 Organisational structure The effectiveness of change efforts is largely determined on how an organization is structured. In a world that is perpetually changing, an organisations design must support the idea that the implementation and re-implementation of a strategy is a continuous process. However, a number of traditional organizational design features tend to discourage change. (Lawler and Worley, 2006) According to Carnall (1999), an ideal organization structure will provide the right balance of information, power and resources to support the various activities within the organization in achieving its objectives. Appendix 2 shows the organisational structure of Avon and describes how it influences the identity and corporate image of the organization. It is clearly evident that Avon has been building bonds with women around the world by offering them a dynamic earnings opportunity to achieve economic independence, accomplish their financial goals and transform their lives. As a top global brand and world leader in beauty and related products, Avon continues to revolutionize the beauty industry by launching innovative, first-to-market products using Avon-patented technology. It also allows Avon a more direct response from consumers and allows them to sell their products without the expensive and lengthy process of getting it into traditional channels. Direct selling/marketing presents many benefits to consumers including avoiding hassles of traffic congestion, parking, lack of time, shortage of retail help and waiting at checkouts. (Wilkinson et al. 2007) Consumers can browse through Avon broch ures in the comfort of their home. 2.4 Organisational culture Just as the structure of Avon should fit the particular strategy it wishes to follow, so should its culture. An organisations culture is its deeply rooted traditions, values and beliefs. (Stacey, 2003) Bradt (2008) states that a winning company culture is simple and emphasizes three areas: serving the customer, growing the business, and developing employees. Whereas a losing culture is confusing and complex, places customer needs behind those of the company, and emphasizes personal gain over team achievement. Sopow (2007) goes on to say that there are high levels of mistrusts, poor communication and strong resistance if an organisations culture is unhealthy. Appendix 3 illustrates Avons organizational culture by using the cultural web model from Johnson and Scholes (2002, p232, fig 5.8). It is suggested by Cameron and Green (2004) that organizations should only involve themselves in culture change if the current culture does not adequately support the achievement of strategic objectives. Avons organizational culture in appendix 3 clearly indicates that the strategic change will be accommodated within the current paradigm and will occur within Avons beliefs and assumptions. 2.5 Organisational Politics In order to investigate the strategic change, it might be useful to regard corporations as political organizations and see strategy and change as part of internal politics within Avon. (Diedenbach, 2007) Johnson et al. (2005) states that there are two views of politics, one being healthy and the other one being unhealthy. While politics ensures that change is questioned and assessed, it also gets out of hand by showing a lack of commitment to a common vision and objectives. Morgan (1986, cited in Cameron and Green, 2004, p89) comments that Many people hold the belief that business and politics should be kept apart. However he contradicts this belief and this has been explored further in appendix 4. The most fundamental question from appendix 4 is whom should Avon be there for to serve? (Johnson et al. 2005) According to Joyce (1999), a stakeholder analysis requires you to identify the stakeholders, how they influence the organization, what the organization needs from each stakeholder and the stakeholders needs and expectations. Through the concept of organisational stakeholders, this question has been addressed in appendix 5. The analysis confirms the statement made by Andrea Jung, Avons Chairman and CEO Avons impeccable reputation is built upon a proud heritage of doing well by doing right. For more than a century, we have been setting the very highest example of integrity and ethics in all of our relationships with our shareholders, associates and Representatives; our suppliers and competitors; governments and the public. Our values and principles are the bedrock not only of Avons past but of its future. Avon was the first company to advertise, not tested on animals back in 1989 3.0 Evaluation of the proposed strategy The report has so far evaluated the effectiveness of the change strategy in terms of Avons organizational structure, culture and politics. It was found that the major strategic change does relate to the objectives of the organization and matches the organisationss capability, including its structure, culture and politics. However, being a global manufacturer and marketer of beauty and related products and a direct selling organisation, Avon is faced with several challenges. According to Wilkinson et al. (2007), direct selling activities vary fairly significantly from country to country. From appendix 1 and 2, we have established that Avons businesses are based on geographical operations in six regions and serving consumers in well over 100 countries. There are many factors to be considered and this involves understanding the market segment, competition, consumer behaviour, government rules and regulations, technological and social background. All of this is actually the external environment, which will either propel or halt the growth of business and so significant consideration needs to be given to them. Some of the competitive pressures that have been identified by Hill (2002) are cost reductions and local responsiveness. In terms of local responsiveness, pressures arise from a number of sources including: differences in consumer tastes and preferences, differences in infrastructure and traditional practices, differences in distribution channels and host government demands. Goll et al. (2007) go on to say that organizations must anticipate and respond to environmental changes to ensure competitiveness and, ultimately, survival. The basic assumptions underlying much of the strategic management is that successful firms change their strategies to attain a better fit with the environment. 3.1 The key environmental influences PEST analysis is a useful strategic tool for formulating business strategies, marketing planning, business and product development. It ensures that the organizations performance is aligned positively with the external forces of change that could impact business environment. (Report Buyer, 2008) According to Strickland and Thompson (1996), firms cannot directly control these external factors. It is stated by Johnson and Scholes (2002) that environmental forces which will be especially important for one organization may not be important for another. For example a retailer may only be concerned with local customer tastes and behaviour, whereas a global company such as Avon will be primarily concerned with government relations and understanding future policies of individual country governments with different political systems. Other factors will be the ability to compete with multinational rivals The PEST framework categorises environmental influences into four main types: political, economic, social, technological. The PEST analysis for Avon is discussed further in appendix 6. From the discussion, it is now possible to identify a number forces for change and forces against change. Carnall (1999) suggests that when major changes are in preparation, or are being implemented, it makes sense to prepare for, and manage change in the more professional ways. Lewin (1951, cited in Hayes, 2002) developed one of the ways called Force Field Analysis. According to Johnson et al. (2005), a force field analysis provides a view of change problems that need to be tackled, by identifying forces for and against change. Carnall (1999) suggests that Force Field analysis proceeds in four stages. Avons major strategy change has been used to conduct a Force field analysis in four stages. See appendix 7 for stages 1 and 2. The key points will now be used to proceed to stages 3 and 4. 3.2 Managing strategy change Lewin (1951) argued that change can only be effectively implemented when the forces driving change exceed the forces restraining change. Stage 3 underlines the forces that are the most important, builds on the change drivers and list actions to reduce the strengths of the restraining forces. In order to decide how Avons strategic change can be implemented, the strengths of the forces will be analysed by reducing the strengths of the forces opposing the change and increasing the forces pushing the change. A SWOT analysis will also be helpful as Avon will be able to use the top rated opportunities, exploit the top-rated strengths, counter the top-rated threats and rectify the top-rated weaknesses. Wickham (2000) states that, a SWOT analysis is an audit of the impact of environmental trends on the business and its external capabilities in terms of responding to them. Nutt and Backoff (1992, cited in Joyce, 1999) recommends combining SWOT analysis with a strategic issue agenda to identif y possible strategic actions. A SWOT analysis for Avon has been explored further in appendix 8. It is stated by Mullins (2002) that an organization can only perform effectively through interactions with the broader external environment. The force field analysis from appendix 7 resulted in a driving change force of 17 and a restraining change force of 21. These figures indicate that despite there being many incentives for a major strategy change within Avon, there are slightly more factors restraining the strategy change. Those individual forces that scored highest (with a score of 5) will now be discussed in greater detail below in order to better assess their impacts. The SWOT analysis in appendix 8 will help to increase the forces pushing the change and reduce the strengths the forces opposing the change. 3.3 Key driving forces for change The level of government intervention worldwide Having a presence in well over 100 countries, Avon is subject to foreign laws, rules, regulations or policies such as restrictions on trade, import and export license requirements, tariffs and taxes.(Avon, 2008) For example in China, the governments decision to ban door-to-door selling, as part of an effort to crack down on pyramid schemes, presented a threat. (Euromonitor, 2006) However in March 2006, the Chinese government granted a direct selling-selling licence. Since then Avon has recruited 300,000 door-to-door representatives in China, thus improving the economy of the country in terms of unemployment. Avon must continue to expand in other developing countries to prove how influential the Avon direct sales method can be and how it can transform the lives of women and achieve economic independence. Lucrative, innovative and fast paced industry In the cosmetic industry, consumers demands and needs change overtime. In order to satisfy the consumers, cosmetics firms are forced to innovate a new product, replace a product, or upgrade its products to meet the demands of consumers at all levels. (Akers and Porter, 1995 cited in Kumar et al. 2006) Through their research and development team in New York, Avon are developing new products and focusing on new technology and product innovation to deliver first-to-market products. (Avon, 2008) Although Avons chief marketing tool is its brochure, it should now expand its global advertising presence and communicate a more unified brand image throughout its international markets 3.4 Key restraining forces for change Cultural differences worldwide Although women all over the world have similar aspirations when it comes to beauty products and share the same desire to look their best, the challenge is to bring out differently formulated products to suit different skins colours and textures. Another factor, climate, should be considered when comparing regional preferences for cosmetics products. For example talc is used in hot countries to relieve perspiration, while in colder regions such as Russia and Eastern Europe it barely gets a look in. (Matthews, 2006). Product choices by country are also determined by consumers ¹ ability to pay. Avon should still continue to exploit the tremendous growth opportunities in other developing countries. Matthews (2006) states that big multinational companies are using consumer educational campaigns as a key means of promoting growth in countries characterized by low disposable income. For Avon with operations in over 100 countries a question of considerable importance is how does a societys culture affect workplace values? The most famous study of how culture relates to values in the workplace was undertaken by Geert Hofstede. He used four dimensions and one of them was masculinity versus femininity. (Hill, 2002). This dimension looks at the relationship between gender and work roles. In the case of Avon, feminine cultures sex roles are sharply differentiated and traditional feminine values, such as achievement and the exercise of power determined cultural ideals. Avon must consider the cultures of countries that are male dominant. Counterfeiting activity are Eastern Europe and China A counterfeit item is as good as cash. Counterfeiters are not just a few guys in a shed mixing cream and pouring them into a tin. They are linked to organised crime, money laundering and in some cases, even terror groups. And they always find the weakest route to the market. (www.cosmeticsdesign-europe.com) According to keynote (2007), the main hubs of counterfeiting activity are Eastern Europe and China. As Avon operates in these two regions, these restraining forces can be reduced by launching anti-counterfeit drives in both regions. It has also been suggested by Eyre (2007) that heat-shrink labels with integrated holograms could help the cosmetics industry in the fight against counterfeiting and forgery. 4 Conclusions This report offers an attempt to understand the major strategic change undergone by Avon Cosmetics Limited. A number of conclusions are evident. Firstly the report evaluated the effectiveness of the change in relation to Avons structure, culture and politics. It was found that the major strategic change does relate to the objectives of the organization and matches the organisationss capability, including its structure, culture and politics. However, being a global manufacturer and marketer of beauty and related products and a direct selling organisation, Avon was faced with several challenges in the external environment. The factors were: fierce competitions from multinational companies, consumer behaviour worldwide, government rules and regulations, technological and social background. Finally, in order to manage the strategic change effectively, the report attempted to increase the two main forces pushing the change and reduce the strengths of the two main forces opposing the change. Bibliography Ansoff I., and M c Donnell, E. (1990) Implanting Strategic Management. 2nd Edition. Harlow: Pearson Education Limited Brooker, K. (2001) It took a lady to save Avon. Fortune. New York: 144 (7) 202-208 Bradt, G. (2008) 5 Simple steps to build a winning corporate culture. Supervision. Burlington: 69 (3) 13-15 Cameron, E., and Green, M. (2004) Making Sense of Change Management. UK: Kogan Page Limited Carnall, C A. (1999) Managing Change in Organisations. 3rd Edition. Harlow: FT Prentice Hall Deresky, H. (2000) International Management: Managing Across Borders and Cultures. 3rd Edition. UK: Prentice Hall International Diedenbach, T. (2007) The managerialistic ideology of organisational change management. Journal of Organizational Change Management. Bradford: 20 (1) 126-144 Euromonitor (2006) China green light for direct sales heats up cosmetics and toiletries race. (Online) Available from http://www.euromonitor.com/Chinas_green_light_for_direct_sales_heats_up_cosmetics_and_toiletries_race. Accessed on 08/03/08 Eyre, C (2007) Anti-counterfeit technology for cosmetics. (Online). Available from http://www.cosmeticsdesign-europe.com/news/ng.asp?id=79126. Accessed on 08/03/08 Goll, I., Johnson, N B., and Rasheed, A A. (2007) Knowledge capability, strategic change, and firm performance; The moderating role of the environment. Management Decision. London: 45 (2) 161 Hayes, J. (2002) The Theory and Practice of Change Management. Hampshire: Palgrave Macmillan Hill, C W L., (2002) Global Business Today. 2nd Edition. New York: McGraw Hill Hughes, M. (2006) Change Management. A critical perspective. London: Chartered Institute of Personnel and Development. Johnson, G., and Scholes, K. (2002) Exploring Corporate Strategy. 6th Edition. Harlow (UK): Prentice Hall Johnson, G., Scholes, K., and Whittington, R. (2005) Exploring Corporate Strategy. 7th Edition. Harlow (UK): Prentice Hall Joyce, P. (1999) Strategic Management for the Public Services, Buckingham Open University Press Keynote, (2007) Cosmetics and Fragrances. Market Report Plus. (Online). Available from http://www.keynote.co.uk. Accessed 18/02/08 Kumar, S., Massie, C., Dumonceaux, MD. (2006) Comparative innovative business strategies of major players in cosmetic industry. Industrial Management and Data Systems. 106 (3) 285-322 Lawler, E E., and Worley, C G. (2006) Designing organisations that are built to change. MIT Sloan Management Revie. Cambridge: 48 (1)19 Lynch, R. (2000) Corporate Strategy (2nd edition), Harlow (UK), FT Prentice Hall Matthews, I (2006) Targeting Cultural and Ethnic Differences in Beauty. (Online). Available from http://www.in-cosmetics.com/page.cfm/T=m/Action=Press/PressID=344 Accessed on 08/03/08 Mead, R. (1994) International Management: Cross Cultural Dimensions. Oxford: Balckwell Publishers Mintel (2006) Make-up -UK Mintzberg, H., Lampel, J., Quinn, J B., and Ghoshal, S. (2003) The Strategy Process. 4th Edition. New Jersey: Pearson Education Limited Mullins, L J. (2002) Management and Organisational Behaviour. 6th Edition. Harlow: FT Prentice Hall MultiChannel Marketing (2007) Avon Cosmetics. (Online). Available from http://www.multichannel.co.uk. Accessed on 27/02/08 Pellet, J. (2000) Ding-dong Avon stalling? Chief Executive. New York: (156) 26-31 Report Buyer (2008) Indian Cosmetics Sector: PEST Analysis. (Online). Available from http://www.reportbuyer.com/consumer_goods_retail/cosmetics_grooming/indian_cosmetics_sector_pest_analysis.html. Accessed on 03/03/08 Rose, S. (2000) Remaking the Avon lady. Money. New York: 29 (2) 46-49 Schneider, S C., and Barsoux, J L. (1997) Managing Across Cultures. Harlow: Pearson Education Limited Sopow, E. (2007) The impact of culture and climate on change. Strategic HR Review. Chicago: 6 (2) 20 Stacey, R D. (2003) Strategic Management and Organisational Dynamics. 4th Edition. Harlow: FT Prentice Hall Strickland, A. J., and Thompson, A. A. (1996) Strategic Management: Concepts and Cases. 9th Edition. London: Irwin Trim, P., and Lee Y (2007) Placing organisational learning in the context of strategic management. Business Strategy Series: 8 (5) 335-342 Wickham, P D. (2000) Financial Times Corporate Strategy Casebook. Harlow (UK): FT Prentice Hall Wilkinson, T J., McAlister, A., and Widmier, S. (2007) Reaching the international consumer: An assessment of the international direct marketing environment. Direct Marketing. 1 (1) 17-37 www.avon.uk.com www.cosmeticsdesign-europe.com Appendix 1- Avons History Avon began life as the California Perfume Company in America in 1886, giving women an opportunity to earn by selling fragrance and cosmetics door to door. Mrs P.F.E Albee was the very first agent taken on by the companys founder David H McConnell, who started life as a door to door book salesman giving away small bottles of perfume which proved to be more popular than the books themselves. In 1939, the company name was changed to Avon and twenty years later, began trading in the UK. Avon Cosmetics Ltd is one of the top 3 beauty brands in the country with growing market share in the UK beauty market. Since then Avon has established itself as a global leader in the beauty industry, serving to customers in over 100 countries around the world. Avon is now largest direct selling cosmetics organisation in the world and their product lines include the well-known brands Anew, Skin So Soft, Avon Colour, Advance Techniques and Today. The product categories include: cosmetics, fragrance, skincare .toiletries, fashion jewellery, watches, home products, gifts, candles, toys, lingerie, health, fitness and wellbeing products. Being a direct selling organisation, Avons shop window is its brochure. The brochure offers a wide selection of beauty and related products at affordable prices. Customers have access to these brochures either at home, work, social or leisure activities. Avon is committed to excellence- every beauty product that carries the Avon name carries with it the highest standards of product safety and integrity. Avon products are enjoyed by millions of women around the globe in over 100 countries through over 5 million independent sales Representatives often known as the Avon lady. Avons vision statement is to: To be the company that best understands and satisfies the product service and self-fulfilment needs of women globally (Avon, 2008) (Keynote, 2007) Appendix 2 Avons organisational structure Avons business is conducted worldwide primarily in one channel, direct selling. They are based on geographical operations in six regions. See below: Avon has sales operations in 63 countries, including America and Avon products are distributed in 51 more countries through distributorships. Sales of products are made through a combination of direct selling and marketing by 5.3 million Avon representatives worldwide. Representatives generally purchase products at a discount from a published brochure price directly from Avon and sell them to their customers. In many countries, representatives can use the internet to manage their own business online, including order submission, order tracking, payment, and a two way communication with Avon. In the US, representatives can build their own Avon business through personalised web pages. The research and development facility is located in New York. A team of researchers and technicians apply the disciplines of science to the practical aspects of bringing products to market around the world. Relationships with dermatologists and other specialists enhance the ability to deliver new formulas and ingredients to market. Satellite research facilities are also located in Brazil, China, Japan, Mexico and Poland (Avon, 2008). Appendix 3 Avons cultural web using model from Johnson and Scholes (2002, p232, fig 5.8) Stories Building bonds with women worldwide since 1886 to achieve economic independence and transform their lives Symbols Ding-Dong Avon calling. Worlds leading direct selling company of beauty and related products Power Chairman and CEO Vice Chairman Executive Vice Presidents Senior Vice Presidents for each of the six regions Routines Avon rep delivering brochures to own neighbourhood, customer chooses products, orders collected by rep products delivered back to customers (worldwide) Paradigm To be the beauty company most women turn to worldwide and creating lifelong customer relationships Controls High standards of product safety and integrity, rigorous quality controls on every product batch and no animal testing Organisation A flatter structure, equal opportunity employer where talent dedication are rewarded a whole range of training opportunities is available (Brooker, 2001) (Pellet, 2000) (Rose, 2000) (Avon, 2008) Appendix 4 The key beliefs of organisations as political systems are: à ¢- ª You cannot stay out of organisational politics as you are already in it; à ¢- ª Building support for your approach is essential if you want to make anything happen; à ¢- ª You need to know who is powerful, and who they are close to; à ¢- ª There is an important political map which overrides the organisational structure; à ¢- ª Coalitions between individuals are more important than work teams; à ¢- ª The most important decisions in an organisation is the allocation of resources, that is , who gets what, and these are reached through bargaining and negotiating. The above key beliefs lead to the following assumptions about organisational change: à ¢- ª The change will not work unless it is supported by a powerful person; à ¢- ª The wider the support for this change the better; à ¢- ª It is important to understand the political map, and to understand who will be winners and losers as a result of this change; and à ¢- ª Positive strategies include creating new coalitions and renegotiating issues Morgan (1986, cited in Cameron and Green, 2004) Appendix 5- Avons stakeholder analysis Bohret (1993, cited in Joyce 1999) suggests that drawing up tables of values to explore the goals and expectations of different social groups. See below for the stakeholder analysis for Avon. Stakeholder Power Interest Attitude Needs/expectations Government Worldwide H H Mixed Avon to meet or exceed all environmental laws of the countries and communities they operate Executive team H H Positive To give full recognition to employees and representatives worldwide, on whose contributions Avon depends and to share with others the rewards of growth and success All other employees L H Positive To achieve economic independence and an opportunity to earn in support of their well-being and happiness Customers L L Positive Active interest in cosmetics and fragrances and keen to look after their ap

Solar Water Heating System in Malaysian Homes

Solar Water Heating System in Malaysian Homes Chapter 1 Introduction 1.1 Project Title A study into solar water heating system in Malaysian Homes 1.2 Problem Statement Malaysia has favourable climatic conditions for the development of solar energy due to the abundant sunshine and is considered good for harnessing energy from the sun. This is because solar hot water can represent the large energy consumer in Malaysia households. But, because of the high initial cost of solar water heating system, and easily to install and relatively inexpensive to purchase electric water heaters, many Malaysia families are still suing electric water heaters to hot their water needs. This research is presented the comparing of solar water heating system from Malaysian’s market with the electric water heater by study the initial cost, price, durability, maintenance cost and environment impact for both systems. The most important is to compare the long term economical benefits for both systems. 1.3 Aims To study solar water heating system in Malaysian Homes 1.4 Objectives To determine the pros and cons for solar water heating system To investigate the popularity of solar water heating system in Malaysian Homes To compare the initial cost, price, durability, and environment impact for solar water heating system and electric water heater 1.5 Background Every day, we are heard with information about global warming, global pollution, wars over energy resources, species depletion†¦the lists go and on. Solar energy is renewable. Solar Water Heating System gets energy from the sun to heat water for homes, there by displacing the use of electricity. The use of Solar Water Heating System has a long history and it is impossible for us to exactly date the first uses of it. But we do know that ancient Greeks and Romans civilizations made good use of passive solar energy in their building designs. The first inventor for Solar Water Heater is Clarence M. Kemp at Year 1891. Until today, Solar Water Heating System is commonly used by residents and becomes one of the action to protect our global. 1.6 Scope of Study The main study will specific on Solar Water Heating System and its pros and cons. The scope of study will focus on the comparison of initial cost, price, durability and environmental impact between Solar Water Heating System and Electric Water Heater. 1.7 Research Methodology  : This research will be carried out by using literature review and questionnaire. Literature review is going to determine the pros and cons for solar water heating system, and also to compare the cost of operation, price, durability, maintenance cost and environment impact for solar water heating system and electric water heater. Questionnaire will be carried out to investigate the popularity of Solar Water Heater in Malaysian Homes at Wangsa Maju. 1.8 Contribution From this research, we gain deeper knowledge about solar water heating system and Malaysian’s family can have another choice on water heating system other than electric water heater. 1.9 Proposed Chapter 1.9.1 Chapter 1 -Introduction Introduction for solar water heating system. 1.9.2 Chapter 2 -Literature review Determine the pros and cons for solar water heating system from journals, books and through internet to support. Compare the cost of operation, price, durability, maintenance cost and environment impact for solar water heating system and electric water heater. 1.9.3 Chapter 3 -Research Methodology 1.9.3.1 Questionnaire The method for this research is using questionnaire. The main purpose of this questionnaire is to obtain facts, data and basic information from every party that involves in this area of study. Questionnaire will be distributed to relevant parties for feedback and will be set in an easy to answer manner to encourage response from the respondents. At the end of the questionnaire section, result will be tabulated in charts, graph, pie forms. This will reflect the trend and indicates the distribution of figure to help in analyzing the problems. 1.9.3.2 Literature Review The information of the second source will be come from literature review. For the topic of this Project and Dissertation, all the information will base on the relevant literature on Solar Water Heating System. For better understanding, some aspects such as the method of installation for Solar Water Heating System, the type of Solar Water Heating System will also included. TARC library and national library is the best way to get all the relevant information. Besides that, internet is also the way to obtain all the relevant information and data. The online resource in TARC library is the best search engineers for the journals articles which related to my Project and Dissertation. 1.9.4 Chapter 4 -Data and analysis After the questionnaire, all the analysis results will be record and explain in this chapter. All the result will base on 40 respondents and given a conclusion whether the majority of the respondents prefer water heating system or electric water heater in Malaysian Homes. 1.9.5 Chapter 5 -Conclusion In this chapter will list down the achievement of objectives for this dissertation and will be concluded and commented. Other than that, my personal opinion and comment will also be in this chapter. Chapter 2 Literature Review 2.1 History of Solar Water Heating System Throughout human’s history the sun has always been a subject of guess and mystery. In fact, most ancient cultures have considered the sun as a god or godlike due to its life-giving and energy-giving. Thus, the subject of solar is one of the oldest subject for human. Besides that, it has gone through many evolutions and has been the subject of many schools of thought- starting with religion, and ending up in the field of science. It is impossible to exactly date the first uses of solar energy, it maybe the Egyptian, Chinese or even the Malay first invented solar energy. But we do know that ancient Greeks and Romans civilizations, made good use of passive solar energy in their building designs. The use of Solar Water Heating System has a surprisingly long history. Year 1891, Clarence M. Kemp became the first man to patent a Solar Water Heater, called the â€Å"Climax†(Bob Ramlow and Benjamin Nusz, 2006, p.2). It was a black painted water tank mounted in an insulated box with glass on one side. The Climax was instantly popular in California. Thousands of Climaxes and similar systems were installed in a short time. Figure 2. 1 An old advertisement for the Climax Solar Water Heater Year 1909, William J. Bailey, a California Engineer began selling a new system Solar Water Heater named â€Å"Day and Night†(Ramlow and Nusz, 2006, p.3). It consisted of a solar collector and a separate storage tank mounted above the collector. Year 1913, a freak cold snap hit southern California and many â€Å"Day and Night† Solar Water Heater collectors froze and burst. To terminate future freezing problem, Bailey installed a coil of pipe within the storage tank to act as a heat exchanger. Then he used an alcohol and water mixture as the antifreeze solution for his heat exchange medium. This system called as a â€Å"closed-loop† Solar Water Heating System. Year 1979, U.S. President Jimmy Carter made the following prophetic statement at the inauguration of a solar-thermal water heater installed on the White House roof: â€Å"In the Year 2000, the solar heater behind me will still be here, supplying cheap, efficient energy. A generation from now, this solar heater can either be a curiosity, a museum piece, an example of a road not taken; or it can be just a small part of the greatest and most exciting adventure ever undertaken by the American people.† (Ondrey, 2009). 2.2 Introduction of Solar Water Heating System One of the biggest uses of electricity, gas and oil is the heating of water in the home. Solar Water Heating System is a very simple and efficient way to grab energy from sun and use it. Solar Water Heater collects and converts solar radiation energy to useful thermal energy into the form of hot water. It essentially consists of solar collectors for absorbing and converting the solar energy and an insulated storage vessel or tank to contain the heated water. The amount of hot water a solar water heater produces depends on:- type and size of the system amount of sun available at the site seasonal hot water demand pattern and installation of the system Solar Water heater used in the homes for supplying domestic hot water are typically installed with some form of back-up heating system such as electricity to ensure a hot water supply during the night time and cloudy conditions. Solar water heater can be considered as per-heater. The Solar Water Heater raises the temperature of water before it enters the water tank. 2.3 Types of Solar Water Heating System There are two types of Solar Water Heating Systems, either is active or passive. Both of the types are working on the same principles. The only difference is active systems have a pump moving the water through the Solar Water Heating System but passive systems rely on nature principles which is warm water rises to the top, and cold water sinks to the bottom. With a passive Solar Water Heating System, the water storage tank must therefore always be positioned above the solar water heater collector. 2.3.1 Active Solar Water Heating System Active Solar Water Heaters rely on electric pumps, and the controllers to circulate water, or other heat-transfer fluids through the collectors. These are the types of Active Solar Water Heating System:- Open loop active systems- circulate water directly from the tank through the collectors (Morrison, 2005, p.226). This design is efficient and also can lower operating costs if there is no problem with the water supply because of calcium deposits quickly build up in the collector. Closed loop active systems- the heat transfer fluid is pumped through the collectors, and a heat exchanger is used to transfer heat from the collector loop to the water in the tank (Morrison, 2005, p.227). The two most common closed loop active  systems are:- Antifreeze- The heat transfer fluid is usually a glycol-water mixture with the glycol concentration depending on the expected minimum temperature. The glycol is usually food-grade propylene glycol because it is non-toxic. Drainback systems- A type of indirect system, use pump to circulate water through the collectors. The water in the collector loop drains into a reservoir tank when the pumps stop. This makes drainback systems a good choice in colder climates. Drainback systems must be carefully installed to assure that the piping always slopes downward, so that the water will completely drain from the piping. This can be difficult to achieve in some circulation. Active systems are usually more expensive and are less efficient than passive system of antifreeze measures are required. Active systems are more difficult to retrofit in houses that do not have basements because space must be found in house for additional equipment (Morrison, 2005, p.226). 2.3.2 Passive Solar Water Heating System Passive Solar Water Heaters rely on gravity and the tendency for water to naturally circulate as it is heated. Due to they contain no electric components, passive systems are generally more reliable, easier to maintain, and possibly have a longer work life than active systems. The two most popular types of passive systems are:- Integral-collector storage systems- combine tank and collector into one unit. These systems are simple and effective (Morrison, 2005, p.225). This system is only good in households with daytime and evening hot water needs due to high heat loss at night. The main limitation with this system concept is it is only a pre-heater and must be connected in series with a conventional water heater if a 24 hours hot water supply is required. Thermosyphon systems- an economical and reliable choice, especially in new homes. These systems rely on the natural circulation of water between the collector and the tank or heat exchanger (Morrison, 2005, p. 223). The tank set up must above the collector due to achieve circulation during daytime and also to limit reverse circulation at nighttime. Water which is heated will rise naturally into the tank and cooler water flows down to the bottom of the collector, causing circulation throughout system. 2.4 Pros and Cons of Solar Water Heating System 2.4.1 Advantages of Solar Water Heating System Installing a Solar Water Heater is an investment that will save our money for the coming years and it is simple to construct. It is almost free once the equipment is installed because of the â€Å"fuel† for the Solar Water Heater is getting from sun. Energy from the sun is renewable. So, we are protected from electricity bill increment year by year in the future. It is four times cheaper than electricity (Pandey and Banerjee, 1998, p.17). Besides that, it is environment free because it produces no greenhouse gases. Solar Water Heater avoids nitrogen oxides, carbon dioxide, sulphur dioxide and other air pollutants created when electric water heater is used to heat water. Solar Water Heater reduces pollutants and contribute to a healthier environment Other than that, Solar Water Heater is extremely safe and clean. We will feel free from the problem which will occur by electric water heater because Solar Water Heater mostly no maintenance, repair work or cleaning is required. By choosing a Solar Water Heater to heat water in home, it is an intelligent, socially aware and environmentally responsible energy source. 2.4.2 Disadvantages of Solar Water Heating System Although Solar Water Heating System consists of a lot of advantages, but it has its disadvantages also. First of all, Solar Water Heater will doesn’t work well on days when it is cloudy, over cast or raining. Besides that, it doesn’t work at nighttime. So, it is typically installed with electric water heater to ensure that hot water is supplied when the day is cloudy, overcast, raining or at night. Other than that, Cost of purchase Solar Water Heater is one the most critical issue. The initial cost of Solar Water Heater is high for Malaysian if compare to electric water heater. Many of the residents will not choose Solar Water heater due to its high initial cost. In addition, appearance of the house will affected due to the collector of Solar Water Heater is being installed on the roof. 2.5 Selecting a Solar Water Heater Before purchasing and installing a Solar Water Heating System, we are required to do the following:-  ·Ã‚  Consider into the economics of a Solar Water Heating System  ·Ã‚  Consider into the needs of hot water required  ·Ã‚  Determine the correct size for Solar Water Heating System  ·Ã‚  Determine the energy efficiency of Solar Water Heating System  ·Ã‚  Estimate and compare system costs 2.6 Method of Installation for Solar Water Heating System The installation of a Solar Water Heater requires skills that overlap many trades. Installer needs to be familiar with plumbing, roofing and electrical. Here will shows the various steps and processes to install a Solar Water Heater. This Solar Water Heating System consists of flat-plate collector, a differential controller, several sensors, a pump, and various valves. Step 1: Collector Mounting Before start the installation, installer must verify that the roof is suitable for the condition of mounting of the solar collector. Installer has to ensure that the roof tiles are in satisfactory condition and the trusses are adequate to support the collector. In general, there is no problem for installing a solar collector on a traditional roof. Besides that, it is recommended that the solar collector to face to south or within 30 º to 45  º east or west of due south. The installer needs to locate the trusses that will be use to attach the solar mounting brackets. After installer locates the trusses, he will then makes preparation for the installing of the collector mounting clips. The collector will then attach to the clips. Installer will carefully remove the roof tiles where the mounting clips will be installed. Four mounting clips will be used to support the collector and also to distribute the weight at the four mounting locations. Lastly, solar collector installs on the mounting clips. Step 2: Roof Pipe Flashing First of all, installer needs to identify and mark down the locations of the piping penetrations. There will be two penetration-collector feed line and collector return line. In gravity drain system, the feed line should penetrate the roof below the collector. Then, make a flat copper flashing with an oversize collar to penetrate the fluid line. Step 3: Piping from Tank to Collector Installer will install the pipe that will connect the water heater to the solar connector. Normally, soft copper will be used in the attic run between the tank area components and the collector lines exits at the roof because by using soft copper, installer does not have to solder any fittings in the attic. Pipe hangers will be used in locations to secure the long piping runs. Besides that, insulation will be installed on all attic piping to prevent heat loss. Step 4: Collector Feed line Piping Installer will measure, cut and fit the pipe fittings for proper length. He will solder the piping and fittings once all of them have been attached correctly. Step 5: Collector Return Line Plumbing Installer will solder fittings that will accommodate the system air vent. The system can prevent air locks that will restrict flow in the system. Air vent is always install at the high point of system and in a true north vertical position. Then, installer will solder more fitting such as pressure relief valve. Step 6: Storage Tank Installer starts the installation for storage tank. this involves plumbing the water heater for cold service, hot outlet, collector feed and return lines. Installer will place insulation on all exposed piping once the piping has been installed to reduce heat loss during system operation. Lastly, he will set the thermostat on the water heater because although the majority of the how water is produced by solar energy, but when cloudy, overcast or nighttime, the electric elements are always the spare for it. Step 7: Controller and Sensors Installer will install controller and sensor for the system. The differential controller is the brains of solar system. It works with two sensors. One of it located at the hottest part of the system which is collector outlet. The other one is located at the coldest part of the system which is the bottom of the tank. Step 8: Pump and Valves A Solar Water Heating System consists of a variety of components. System pump also called as circulator is a critical component for Solar Water Heating System. Its function is to circulate the fluid from the tank to the collector. Then the fluid gains heat in the solar collector and return to the storage tank. Besides that, check valve, drain valves and isolation valves also the components to install. Step 9: Pipe Insulation The last step for installation process is pipe insulation. It is to prevent heat loss from the piping, so pipe insulation is installed on both external and internal system piping. After that, installer should provide the owner of the Solar Water Heater a system operation and maintenance manual. 2.7 A Comparison between Solar Water Heater and Electric Water Heater Solartech (Summer) CX – Direct Heating* Panasonic DH – 3HE1M** Panasonic DH – 3HT1M** Type of Water Heater Solar Electric Electric Power Consumption 2.4 KW (back up heating element) 3.6 KW 3.6 KW Selling Price / unit RM 5,490.00 RM 639.00 RM 449.00 Selling Price (2 units) RM 1,278 RM 1,098 Initial Cost (selling price + installation cost) RM 5,690.00 RM 1428.00 RM 1248.00 Warranty (full warranty) 10 years 1 year 1 year Operation Cost / year RM 170.25 RM 1,109.67 RM 1,109.67 Operation Cost (10 years) RM 1702.50 RM 11,096.70 RM 11,096.70 Total Cost (initial cost + operation cost) for 10 years without maintenance cost RM 7,392.50 RM 12,374.70 RM 12,194.70 Environment Impact free CO2 CO2 Table 2. 1 Comparison between Solar Water Heater and Electric Water Heater * Description is given by Solartech Sales Service Sdn Bhd ** Description is given by Pansasonic Malaysia Sdn Bhd The table above shows the comparison between Solar Water Heater and Electric Water Heater. In the table, it is shown that the total cost for 10 years, environment impact and their operation cost. Firstly, for family consists of 6 persons considered as the study in the table. They installed 2 units of electric water heater in the toilets for their house or a unit of Solar Water Heater. Their need for hot water is 3 hours per day. Besides that, the study is estimating the total cost for 10 years. 2.7.1 Total Cost Method Intention in this study is to let the operation time (N) of a system be variable to find the operation life of the systems. The total cost will be adapted in the study because it allows the comparison between the systems for 10 years time. In general, the total cost of a system can be expressed as the following equation: Total Cost = Initial Cost + Operation Cost( 10years) 2.7.1.1 Operation Cost (OC) For Electric Water Heater, operation cost is the electrical bill cost over the year to provide hot water needs of the family consists of 6 persons. But for Solar Water Heater, the operation cost is yearly electrical bill cost for the back up heating system. OCSWH = 12 months x NOCD x NOHs x price of electricity (RM/KWh) Where, OCSWH operation cost of Solar Water Heater; NOCD number of cloudy day per month; NOHS number of hours switched back up heating system. OCEWH = 365 days x NOH x price of electricity (RM/KWh) Where, OCEWH operation cost of Electric Water Heater; NOH number of hours electricity is used to provide hot water. 2.7.2 Summary of the values of the parameter Solartech (Summer) CX – Direct Heating Panasonic DH – 3HE1M (2 units) Panasonic DH – 3HT1M (2 units) Initial Cost = RM 5,690.00 OC = 12 months x NOCD x NOHs x price of  electricity (RM/KWh) = 12 months x 7 days/month x 3 hours x (2.4 KW x (RM 0.218 + RM 0.345)/2) = RM 170.25 Total Cost = Initial Cost + (OC x 10 years) = RM 5,690.00 + (RM 170.25 x 10) = RM 7,392.50 Initial Cost = RM 1,278.00 OC = 365 days x NOH x price of electricity (RM/KWh) = 365 days x 3 hours x (3.6 KW x (RM 0.218 + RM 0.345)/2) = RM 1,109.67 Total Cost = Initial Cost + (OC x 10 years) = RM 1,278.00 + (RM 1,109.67 x 10) = RM 12,374.70 Initial Cost = RM 1,098.00 OC = 365 days x NOH x price of electricity (RM/KWh) = 365 days x 3 hours x (3.6 KW x (RM 0.218 + RM 0.345)/2) = RM 1,109.67 Total Cost = Initial Cost + (OC x 10 years) = RM 1,098.00 + (RM 1,109.67 x 10) = RM 12,194.70 Table 2. 2 Summary of the values of the paramater From the table above, it is shown that Solar Water Heater is more economical and more attractive than the Electric Water Heater in long term. It is better for the family to use Solar Water Heater when compared to Electrical Water Heater. Besides that, it is more benefits to install Solar Water Heater because of long term economical benefits, environment friendly and a way to avoid from the problem of increasing electricity bill and increasing family size. References Ong, K. S. 1994. Solar Water Heater. Perpustakaan Negara Malaysia: University of Malaya. Gordon, J. 2005. Solar Enegy The State of The Art. London: James James (Science Publishers) Ltd. Ondrey, G. 2009. ‘Solar’s Second Coming’. Chemical Engineering. pg. 18. Pandey, J. L. and Banerjee M. K. 1998. ‘Energy Conservation with the Use of Solar Selective Coatings’. Anti-Corrosion Methods and Materials. 45(1), pp. 16-24. Davidson, Jane, Wood and Byard. 1996. ‘Solar Hot Water for the Home’. Mechanical Engineering. pg. 60. European Journal of Scientific Research. 2009. ‘Economics of Domestic Solar Hot Water Heating Systems in Malaysia’. 26(1), pp. 20-28 Progress Report Task to be completed Second Year Semester 1 (Week)   July 05, 2009 July 11, 2009 July 12, 2009 July 18, 2009 July 19, 2009 July 25, 2009 July 26, 2009 Aug 01, 2009 Aug 02, 2009 Aug 08, 2009 Aug 09, 2009 Aug 15, 2009 Aug 16, 2009 Aug 22, 2009 Aug 23, 2009 Aug 29, 2009 Confirm Title Finalise Proposal 1.0 Introduction 2.0 Literature review Proposed Work Schedule Actual Work Schedule Task to be completed Second Year Semester 1 (Week) July 05, 2009 July 11, 2009 July 12, 2009 July 18, 2009 July 19, 2009 July 25, 2009 July 26, 2009 Aug 01, 2009 Aug 02, 2009 Aug 08, 2009 Aug 09, 2009 Aug 15, 2009 Aug 16, 2009 Aug 22, 2009 Aug 23, 2009 Aug 29, 2009 Confirm Title Finalise Proposal 1.0 Introduction 2.0 Literature review Every element had been done on time according to the proposed work progress except Chapter 1 Introduction. It should be done before August 01, 2009, but in stead it was done on August 22, 2009. The reason for the delay because of Introduction is revised proposal, so I decided to postpone it until the same with the date of completion for literature review. For Literature Review, I started it a week earlier than the proposed work schedule due to I need longer time to search information from TARC library and internet. Besides that, I also needed to get the quotation from supplier so that I started my literature review earlier. Luckily, everything in progress and I finished my literature review on time. My supervisor, Mr. Teh Bin Sin checked my works on August 20, 2009 and I printed out all the chapters for interim submission. Report on Changes Involved Date (Week) Issue of Changes Issue of Amendment July 05, 2009 – July 11,2009 Project Title ‘A Comparison between Solar Water Heating System and Electric Water Heater’ changed to ‘A Study into Solar Water Heating System in Malaysian Homes’ The project title changed because ‘A Study into Solar Water Heating System in Malaysian Homes’ is more specific and to fulfill requirement of supervisor. July 26, 2009 – August 01, 2009 Objectives ‘To compare the initial cost, price, durability, maintenance cost and environment impact for solar water heating system and electric water heater’ changed to ‘To compare the initial cost, price, durability, and environment impact for solar water heating system and electric water heater’ Due to the comment from supplier, which is maintenance cost is difficult to calculate or estimate for the following 10 years for water heater, so I decided to take out the comparison of maintenance cost in objective. Solar Water Heating System in Malaysian Homes Solar Water Heating System in Malaysian Homes Chapter 1 Introduction 1.1 Project Title A study into solar water heating system in Malaysian Homes 1.2 Problem Statement Malaysia has favourable climatic conditions for the development of solar energy due to the abundant sunshine and is considered good for harnessing energy from the sun. This is because solar hot water can represent the large energy consumer in Malaysia households. But, because of the high initial cost of solar water heating system, and easily to install and relatively inexpensive to purchase electric water heaters, many Malaysia families are still suing electric water heaters to hot their water needs. This research is presented the comparing of solar water heating system from Malaysian’s market with the electric water heater by study the initial cost, price, durability, maintenance cost and environment impact for both systems. The most important is to compare the long term economical benefits for both systems. 1.3 Aims To study solar water heating system in Malaysian Homes 1.4 Objectives To determine the pros and cons for solar water heating system To investigate the popularity of solar water heating system in Malaysian Homes To compare the initial cost, price, durability, and environment impact for solar water heating system and electric water heater 1.5 Background Every day, we are heard with information about global warming, global pollution, wars over energy resources, species depletion†¦the lists go and on. Solar energy is renewable. Solar Water Heating System gets energy from the sun to heat water for homes, there by displacing the use of electricity. The use of Solar Water Heating System has a long history and it is impossible for us to exactly date the first uses of it. But we do know that ancient Greeks and Romans civilizations made good use of passive solar energy in their building designs. The first inventor for Solar Water Heater is Clarence M. Kemp at Year 1891. Until today, Solar Water Heating System is commonly used by residents and becomes one of the action to protect our global. 1.6 Scope of Study The main study will specific on Solar Water Heating System and its pros and cons. The scope of study will focus on the comparison of initial cost, price, durability and environmental impact between Solar Water Heating System and Electric Water Heater. 1.7 Research Methodology  : This research will be carried out by using literature review and questionnaire. Literature review is going to determine the pros and cons for solar water heating system, and also to compare the cost of operation, price, durability, maintenance cost and environment impact for solar water heating system and electric water heater. Questionnaire will be carried out to investigate the popularity of Solar Water Heater in Malaysian Homes at Wangsa Maju. 1.8 Contribution From this research, we gain deeper knowledge about solar water heating system and Malaysian’s family can have another choice on water heating system other than electric water heater. 1.9 Proposed Chapter 1.9.1 Chapter 1 -Introduction Introduction for solar water heating system. 1.9.2 Chapter 2 -Literature review Determine the pros and cons for solar water heating system from journals, books and through internet to support. Compare the cost of operation, price, durability, maintenance cost and environment impact for solar water heating system and electric water heater. 1.9.3 Chapter 3 -Research Methodology 1.9.3.1 Questionnaire The method for this research is using questionnaire. The main purpose of this questionnaire is to obtain facts, data and basic information from every party that involves in this area of study. Questionnaire will be distributed to relevant parties for feedback and will be set in an easy to answer manner to encourage response from the respondents. At the end of the questionnaire section, result will be tabulated in charts, graph, pie forms. This will reflect the trend and indicates the distribution of figure to help in analyzing the problems. 1.9.3.2 Literature Review The information of the second source will be come from literature review. For the topic of this Project and Dissertation, all the information will base on the relevant literature on Solar Water Heating System. For better understanding, some aspects such as the method of installation for Solar Water Heating System, the type of Solar Water Heating System will also included. TARC library and national library is the best way to get all the relevant information. Besides that, internet is also the way to obtain all the relevant information and data. The online resource in TARC library is the best search engineers for the journals articles which related to my Project and Dissertation. 1.9.4 Chapter 4 -Data and analysis After the questionnaire, all the analysis results will be record and explain in this chapter. All the result will base on 40 respondents and given a conclusion whether the majority of the respondents prefer water heating system or electric water heater in Malaysian Homes. 1.9.5 Chapter 5 -Conclusion In this chapter will list down the achievement of objectives for this dissertation and will be concluded and commented. Other than that, my personal opinion and comment will also be in this chapter. Chapter 2 Literature Review 2.1 History of Solar Water Heating System Throughout human’s history the sun has always been a subject of guess and mystery. In fact, most ancient cultures have considered the sun as a god or godlike due to its life-giving and energy-giving. Thus, the subject of solar is one of the oldest subject for human. Besides that, it has gone through many evolutions and has been the subject of many schools of thought- starting with religion, and ending up in the field of science. It is impossible to exactly date the first uses of solar energy, it maybe the Egyptian, Chinese or even the Malay first invented solar energy. But we do know that ancient Greeks and Romans civilizations, made good use of passive solar energy in their building designs. The use of Solar Water Heating System has a surprisingly long history. Year 1891, Clarence M. Kemp became the first man to patent a Solar Water Heater, called the â€Å"Climax†(Bob Ramlow and Benjamin Nusz, 2006, p.2). It was a black painted water tank mounted in an insulated box with glass on one side. The Climax was instantly popular in California. Thousands of Climaxes and similar systems were installed in a short time. Figure 2. 1 An old advertisement for the Climax Solar Water Heater Year 1909, William J. Bailey, a California Engineer began selling a new system Solar Water Heater named â€Å"Day and Night†(Ramlow and Nusz, 2006, p.3). It consisted of a solar collector and a separate storage tank mounted above the collector. Year 1913, a freak cold snap hit southern California and many â€Å"Day and Night† Solar Water Heater collectors froze and burst. To terminate future freezing problem, Bailey installed a coil of pipe within the storage tank to act as a heat exchanger. Then he used an alcohol and water mixture as the antifreeze solution for his heat exchange medium. This system called as a â€Å"closed-loop† Solar Water Heating System. Year 1979, U.S. President Jimmy Carter made the following prophetic statement at the inauguration of a solar-thermal water heater installed on the White House roof: â€Å"In the Year 2000, the solar heater behind me will still be here, supplying cheap, efficient energy. A generation from now, this solar heater can either be a curiosity, a museum piece, an example of a road not taken; or it can be just a small part of the greatest and most exciting adventure ever undertaken by the American people.† (Ondrey, 2009). 2.2 Introduction of Solar Water Heating System One of the biggest uses of electricity, gas and oil is the heating of water in the home. Solar Water Heating System is a very simple and efficient way to grab energy from sun and use it. Solar Water Heater collects and converts solar radiation energy to useful thermal energy into the form of hot water. It essentially consists of solar collectors for absorbing and converting the solar energy and an insulated storage vessel or tank to contain the heated water. The amount of hot water a solar water heater produces depends on:- type and size of the system amount of sun available at the site seasonal hot water demand pattern and installation of the system Solar Water heater used in the homes for supplying domestic hot water are typically installed with some form of back-up heating system such as electricity to ensure a hot water supply during the night time and cloudy conditions. Solar water heater can be considered as per-heater. The Solar Water Heater raises the temperature of water before it enters the water tank. 2.3 Types of Solar Water Heating System There are two types of Solar Water Heating Systems, either is active or passive. Both of the types are working on the same principles. The only difference is active systems have a pump moving the water through the Solar Water Heating System but passive systems rely on nature principles which is warm water rises to the top, and cold water sinks to the bottom. With a passive Solar Water Heating System, the water storage tank must therefore always be positioned above the solar water heater collector. 2.3.1 Active Solar Water Heating System Active Solar Water Heaters rely on electric pumps, and the controllers to circulate water, or other heat-transfer fluids through the collectors. These are the types of Active Solar Water Heating System:- Open loop active systems- circulate water directly from the tank through the collectors (Morrison, 2005, p.226). This design is efficient and also can lower operating costs if there is no problem with the water supply because of calcium deposits quickly build up in the collector. Closed loop active systems- the heat transfer fluid is pumped through the collectors, and a heat exchanger is used to transfer heat from the collector loop to the water in the tank (Morrison, 2005, p.227). The two most common closed loop active  systems are:- Antifreeze- The heat transfer fluid is usually a glycol-water mixture with the glycol concentration depending on the expected minimum temperature. The glycol is usually food-grade propylene glycol because it is non-toxic. Drainback systems- A type of indirect system, use pump to circulate water through the collectors. The water in the collector loop drains into a reservoir tank when the pumps stop. This makes drainback systems a good choice in colder climates. Drainback systems must be carefully installed to assure that the piping always slopes downward, so that the water will completely drain from the piping. This can be difficult to achieve in some circulation. Active systems are usually more expensive and are less efficient than passive system of antifreeze measures are required. Active systems are more difficult to retrofit in houses that do not have basements because space must be found in house for additional equipment (Morrison, 2005, p.226). 2.3.2 Passive Solar Water Heating System Passive Solar Water Heaters rely on gravity and the tendency for water to naturally circulate as it is heated. Due to they contain no electric components, passive systems are generally more reliable, easier to maintain, and possibly have a longer work life than active systems. The two most popular types of passive systems are:- Integral-collector storage systems- combine tank and collector into one unit. These systems are simple and effective (Morrison, 2005, p.225). This system is only good in households with daytime and evening hot water needs due to high heat loss at night. The main limitation with this system concept is it is only a pre-heater and must be connected in series with a conventional water heater if a 24 hours hot water supply is required. Thermosyphon systems- an economical and reliable choice, especially in new homes. These systems rely on the natural circulation of water between the collector and the tank or heat exchanger (Morrison, 2005, p. 223). The tank set up must above the collector due to achieve circulation during daytime and also to limit reverse circulation at nighttime. Water which is heated will rise naturally into the tank and cooler water flows down to the bottom of the collector, causing circulation throughout system. 2.4 Pros and Cons of Solar Water Heating System 2.4.1 Advantages of Solar Water Heating System Installing a Solar Water Heater is an investment that will save our money for the coming years and it is simple to construct. It is almost free once the equipment is installed because of the â€Å"fuel† for the Solar Water Heater is getting from sun. Energy from the sun is renewable. So, we are protected from electricity bill increment year by year in the future. It is four times cheaper than electricity (Pandey and Banerjee, 1998, p.17). Besides that, it is environment free because it produces no greenhouse gases. Solar Water Heater avoids nitrogen oxides, carbon dioxide, sulphur dioxide and other air pollutants created when electric water heater is used to heat water. Solar Water Heater reduces pollutants and contribute to a healthier environment Other than that, Solar Water Heater is extremely safe and clean. We will feel free from the problem which will occur by electric water heater because Solar Water Heater mostly no maintenance, repair work or cleaning is required. By choosing a Solar Water Heater to heat water in home, it is an intelligent, socially aware and environmentally responsible energy source. 2.4.2 Disadvantages of Solar Water Heating System Although Solar Water Heating System consists of a lot of advantages, but it has its disadvantages also. First of all, Solar Water Heater will doesn’t work well on days when it is cloudy, over cast or raining. Besides that, it doesn’t work at nighttime. So, it is typically installed with electric water heater to ensure that hot water is supplied when the day is cloudy, overcast, raining or at night. Other than that, Cost of purchase Solar Water Heater is one the most critical issue. The initial cost of Solar Water Heater is high for Malaysian if compare to electric water heater. Many of the residents will not choose Solar Water heater due to its high initial cost. In addition, appearance of the house will affected due to the collector of Solar Water Heater is being installed on the roof. 2.5 Selecting a Solar Water Heater Before purchasing and installing a Solar Water Heating System, we are required to do the following:-  ·Ã‚  Consider into the economics of a Solar Water Heating System  ·Ã‚  Consider into the needs of hot water required  ·Ã‚  Determine the correct size for Solar Water Heating System  ·Ã‚  Determine the energy efficiency of Solar Water Heating System  ·Ã‚  Estimate and compare system costs 2.6 Method of Installation for Solar Water Heating System The installation of a Solar Water Heater requires skills that overlap many trades. Installer needs to be familiar with plumbing, roofing and electrical. Here will shows the various steps and processes to install a Solar Water Heater. This Solar Water Heating System consists of flat-plate collector, a differential controller, several sensors, a pump, and various valves. Step 1: Collector Mounting Before start the installation, installer must verify that the roof is suitable for the condition of mounting of the solar collector. Installer has to ensure that the roof tiles are in satisfactory condition and the trusses are adequate to support the collector. In general, there is no problem for installing a solar collector on a traditional roof. Besides that, it is recommended that the solar collector to face to south or within 30 º to 45  º east or west of due south. The installer needs to locate the trusses that will be use to attach the solar mounting brackets. After installer locates the trusses, he will then makes preparation for the installing of the collector mounting clips. The collector will then attach to the clips. Installer will carefully remove the roof tiles where the mounting clips will be installed. Four mounting clips will be used to support the collector and also to distribute the weight at the four mounting locations. Lastly, solar collector installs on the mounting clips. Step 2: Roof Pipe Flashing First of all, installer needs to identify and mark down the locations of the piping penetrations. There will be two penetration-collector feed line and collector return line. In gravity drain system, the feed line should penetrate the roof below the collector. Then, make a flat copper flashing with an oversize collar to penetrate the fluid line. Step 3: Piping from Tank to Collector Installer will install the pipe that will connect the water heater to the solar connector. Normally, soft copper will be used in the attic run between the tank area components and the collector lines exits at the roof because by using soft copper, installer does not have to solder any fittings in the attic. Pipe hangers will be used in locations to secure the long piping runs. Besides that, insulation will be installed on all attic piping to prevent heat loss. Step 4: Collector Feed line Piping Installer will measure, cut and fit the pipe fittings for proper length. He will solder the piping and fittings once all of them have been attached correctly. Step 5: Collector Return Line Plumbing Installer will solder fittings that will accommodate the system air vent. The system can prevent air locks that will restrict flow in the system. Air vent is always install at the high point of system and in a true north vertical position. Then, installer will solder more fitting such as pressure relief valve. Step 6: Storage Tank Installer starts the installation for storage tank. this involves plumbing the water heater for cold service, hot outlet, collector feed and return lines. Installer will place insulation on all exposed piping once the piping has been installed to reduce heat loss during system operation. Lastly, he will set the thermostat on the water heater because although the majority of the how water is produced by solar energy, but when cloudy, overcast or nighttime, the electric elements are always the spare for it. Step 7: Controller and Sensors Installer will install controller and sensor for the system. The differential controller is the brains of solar system. It works with two sensors. One of it located at the hottest part of the system which is collector outlet. The other one is located at the coldest part of the system which is the bottom of the tank. Step 8: Pump and Valves A Solar Water Heating System consists of a variety of components. System pump also called as circulator is a critical component for Solar Water Heating System. Its function is to circulate the fluid from the tank to the collector. Then the fluid gains heat in the solar collector and return to the storage tank. Besides that, check valve, drain valves and isolation valves also the components to install. Step 9: Pipe Insulation The last step for installation process is pipe insulation. It is to prevent heat loss from the piping, so pipe insulation is installed on both external and internal system piping. After that, installer should provide the owner of the Solar Water Heater a system operation and maintenance manual. 2.7 A Comparison between Solar Water Heater and Electric Water Heater Solartech (Summer) CX – Direct Heating* Panasonic DH – 3HE1M** Panasonic DH – 3HT1M** Type of Water Heater Solar Electric Electric Power Consumption 2.4 KW (back up heating element) 3.6 KW 3.6 KW Selling Price / unit RM 5,490.00 RM 639.00 RM 449.00 Selling Price (2 units) RM 1,278 RM 1,098 Initial Cost (selling price + installation cost) RM 5,690.00 RM 1428.00 RM 1248.00 Warranty (full warranty) 10 years 1 year 1 year Operation Cost / year RM 170.25 RM 1,109.67 RM 1,109.67 Operation Cost (10 years) RM 1702.50 RM 11,096.70 RM 11,096.70 Total Cost (initial cost + operation cost) for 10 years without maintenance cost RM 7,392.50 RM 12,374.70 RM 12,194.70 Environment Impact free CO2 CO2 Table 2. 1 Comparison between Solar Water Heater and Electric Water Heater * Description is given by Solartech Sales Service Sdn Bhd ** Description is given by Pansasonic Malaysia Sdn Bhd The table above shows the comparison between Solar Water Heater and Electric Water Heater. In the table, it is shown that the total cost for 10 years, environment impact and their operation cost. Firstly, for family consists of 6 persons considered as the study in the table. They installed 2 units of electric water heater in the toilets for their house or a unit of Solar Water Heater. Their need for hot water is 3 hours per day. Besides that, the study is estimating the total cost for 10 years. 2.7.1 Total Cost Method Intention in this study is to let the operation time (N) of a system be variable to find the operation life of the systems. The total cost will be adapted in the study because it allows the comparison between the systems for 10 years time. In general, the total cost of a system can be expressed as the following equation: Total Cost = Initial Cost + Operation Cost( 10years) 2.7.1.1 Operation Cost (OC) For Electric Water Heater, operation cost is the electrical bill cost over the year to provide hot water needs of the family consists of 6 persons. But for Solar Water Heater, the operation cost is yearly electrical bill cost for the back up heating system. OCSWH = 12 months x NOCD x NOHs x price of electricity (RM/KWh) Where, OCSWH operation cost of Solar Water Heater; NOCD number of cloudy day per month; NOHS number of hours switched back up heating system. OCEWH = 365 days x NOH x price of electricity (RM/KWh) Where, OCEWH operation cost of Electric Water Heater; NOH number of hours electricity is used to provide hot water. 2.7.2 Summary of the values of the parameter Solartech (Summer) CX – Direct Heating Panasonic DH – 3HE1M (2 units) Panasonic DH – 3HT1M (2 units) Initial Cost = RM 5,690.00 OC = 12 months x NOCD x NOHs x price of  electricity (RM/KWh) = 12 months x 7 days/month x 3 hours x (2.4 KW x (RM 0.218 + RM 0.345)/2) = RM 170.25 Total Cost = Initial Cost + (OC x 10 years) = RM 5,690.00 + (RM 170.25 x 10) = RM 7,392.50 Initial Cost = RM 1,278.00 OC = 365 days x NOH x price of electricity (RM/KWh) = 365 days x 3 hours x (3.6 KW x (RM 0.218 + RM 0.345)/2) = RM 1,109.67 Total Cost = Initial Cost + (OC x 10 years) = RM 1,278.00 + (RM 1,109.67 x 10) = RM 12,374.70 Initial Cost = RM 1,098.00 OC = 365 days x NOH x price of electricity (RM/KWh) = 365 days x 3 hours x (3.6 KW x (RM 0.218 + RM 0.345)/2) = RM 1,109.67 Total Cost = Initial Cost + (OC x 10 years) = RM 1,098.00 + (RM 1,109.67 x 10) = RM 12,194.70 Table 2. 2 Summary of the values of the paramater From the table above, it is shown that Solar Water Heater is more economical and more attractive than the Electric Water Heater in long term. It is better for the family to use Solar Water Heater when compared to Electrical Water Heater. Besides that, it is more benefits to install Solar Water Heater because of long term economical benefits, environment friendly and a way to avoid from the problem of increasing electricity bill and increasing family size. References Ong, K. S. 1994. Solar Water Heater. Perpustakaan Negara Malaysia: University of Malaya. Gordon, J. 2005. Solar Enegy The State of The Art. London: James James (Science Publishers) Ltd. Ondrey, G. 2009. ‘Solar’s Second Coming’. Chemical Engineering. pg. 18. Pandey, J. L. and Banerjee M. K. 1998. ‘Energy Conservation with the Use of Solar Selective Coatings’. Anti-Corrosion Methods and Materials. 45(1), pp. 16-24. Davidson, Jane, Wood and Byard. 1996. ‘Solar Hot Water for the Home’. Mechanical Engineering. pg. 60. European Journal of Scientific Research. 2009. ‘Economics of Domestic Solar Hot Water Heating Systems in Malaysia’. 26(1), pp. 20-28 Progress Report Task to be completed Second Year Semester 1 (Week)   July 05, 2009 July 11, 2009 July 12, 2009 July 18, 2009 July 19, 2009 July 25, 2009 July 26, 2009 Aug 01, 2009 Aug 02, 2009 Aug 08, 2009 Aug 09, 2009 Aug 15, 2009 Aug 16, 2009 Aug 22, 2009 Aug 23, 2009 Aug 29, 2009 Confirm Title Finalise Proposal 1.0 Introduction 2.0 Literature review Proposed Work Schedule Actual Work Schedule Task to be completed Second Year Semester 1 (Week) July 05, 2009 July 11, 2009 July 12, 2009 July 18, 2009 July 19, 2009 July 25, 2009 July 26, 2009 Aug 01, 2009 Aug 02, 2009 Aug 08, 2009 Aug 09, 2009 Aug 15, 2009 Aug 16, 2009 Aug 22, 2009 Aug 23, 2009 Aug 29, 2009 Confirm Title Finalise Proposal 1.0 Introduction 2.0 Literature review Every element had been done on time according to the proposed work progress except Chapter 1 Introduction. It should be done before August 01, 2009, but in stead it was done on August 22, 2009. The reason for the delay because of Introduction is revised proposal, so I decided to postpone it until the same with the date of completion for literature review. For Literature Review, I started it a week earlier than the proposed work schedule due to I need longer time to search information from TARC library and internet. Besides that, I also needed to get the quotation from supplier so that I started my literature review earlier. Luckily, everything in progress and I finished my literature review on time. My supervisor, Mr. Teh Bin Sin checked my works on August 20, 2009 and I printed out all the chapters for interim submission. Report on Changes Involved Date (Week) Issue of Changes Issue of Amendment July 05, 2009 – July 11,2009 Project Title ‘A Comparison between Solar Water Heating System and Electric Water Heater’ changed to ‘A Study into Solar Water Heating System in Malaysian Homes’ The project title changed because ‘A Study into Solar Water Heating System in Malaysian Homes’ is more specific and to fulfill requirement of supervisor. July 26, 2009 – August 01, 2009 Objectives ‘To compare the initial cost, price, durability, maintenance cost and environment impact for solar water heating system and electric water heater’ changed to ‘To compare the initial cost, price, durability, and environment impact for solar water heating system and electric water heater’ Due to the comment from supplier, which is maintenance cost is difficult to calculate or estimate for the following 10 years for water heater, so I decided to take out the comparison of maintenance cost in objective.