The Modern Olympic Games Tourism Essay

The Modern Olympic Games Tourism Essay The modern Olympic Games are a major international event featuring summer and winter sports in which thousands of athletes participate in a variety of competitions. The Olympic Games are considered to be the worlds foremost sports competition with more than 200 nations participating. The Games are currently held biennially, with summer and Winter Olympic Games alternating, meaning they each occur every four years. Their creation was inspired by the ancient Olympic Games, which were held in Olympia, Greece, from the 8th century BC to the 4th century AD. Baron Pierre de Coubertin founded the International Olympic Committee (IOC) in 1894. The IOC has since become the governing body of the Olympic Movement, with the Olympic Charter defining its structure and authority. The evolution of the Olympic Movement during the 20th and 21st centuries has resulted in several changes to the Olympic Games. Some of these adjustments include the creation of the Winter Games for ice and winter sports, the Paralympic Games for athletes with a disability, and the Youth Olympic Games for teenage athletes. The IOC has had to adapt to the varying economic, political, and technological realities of the 20th century. As a result, the Olympics shifted away from pure amateurism, as envisioned by Coubertin, to allow participation of professional athletes. The growing importance of the mass media created the issue of corporate sponsorship and commercialization of the Games. World wars led to the cancellation of the 1916, 1940, and 1944 Games. Large boycotts during the Cold War limited participation in the 1980 and 1984 Games. The Olympic Movement consists of international sports federations (IFs), National Olympic Committees (NOCs), and organizing committees for each specific Olympic Games. As the decision-making body, the IOC is responsible for choosing the host city for each Olympic Games. The host city is responsible for organizing and funding a celebration of the Games consistent with the Olympic Charter. The Olympic program, consisting of the sports to be contested at the Games, is also determined by the IOC. The celebration of the Games encompasses many rituals and symbols, such as the Olympic flag and torch, as well as the opening and closing ceremonies. Over 13,000 athletes compete at the Summer and Winter Olympics in 33 different sports and nearly 400 events. The first, second and third place finishers in each event receive Olympic medals: gold, silver, and bronze, respectively. The Games have grown in scale to the point that nearly every nation is represented. Such growth has created numerous challenges, including boycotts, doping, bribery, and terrorism. Every two years, the Olympics and its media exposure provide unknown athletes with the chance to attain national and sometimes international fame. The Games also constitute a major opportunity for the host city and country to showcase themselves to the world. The Olympic Games program consists of 35 sports, 30 disciplines and nearly 400 events. For example, wrestling is a Summer Olympic sport, comprising two disciplines: Greco-Roman and Freestyle. It is further broken down into fourteen events for men and four events for women, each representing a different weight class. The Summer Olympics program includes 26 sports, while the Winter Olympics program features 15 sports. Athletics, swimming, fencing, and artistic gymnastics are the only summer sports that have never been absent from the Olympic program. Cross-country skiing, figure skating, ice hockey, Nordic combined, ski jumping, and speed skating have been featured at every Winter Olympics program since its inception in 1924. Current Olympic sports, like badminton, basketball, and volleyball, first appeared on the program as demonstration sports, and were later promoted to full Olympic sports. Some sports that were featured in earlier Games were later dropped from the program. Olympic sports are governed by international sports federations (IFs) recognized by the IOC as the global supervisors of those sports. There are 35 federations represented at the IOC. There are sports recognized by the IOC that are not included on the Olympic program. These sports are not considered Olympic sports, but they can be promoted to this status during a program revision that occurs in the first IOC session following a celebration of the Olympic Games. During such revisions, sports can be excluded or included in the program on the basis of a two-thirds majority vote of the members of the IOC. There are recognized sports that have never been on an Olympic program in any capacity, including chess and surfing. In October and November 2004, the IOC established an Olympic Programme Commission, which was tasked with reviewing the sports on the Olympic program and all non-Olympic recognized sports. The goal was to apply a systematic approach to establishing the Olympic program for each celebration of the Games. The commission formulated seven criteria to judge whether a sport should be included on the Olympic program. These criteria are history and tradition of the sport, universality, popularity of the sport, image, athletes health, development of the International Federation that governs the sport, and costs of holding the sport. From this study five recognized sports emerged as candidates for inclusion at the 2012 Summer Olympics: golf, karate, rugby union, roller sports and squash. These sports were reviewed by the IOC Executive Board and then referred to the General Session in Singapore in July 2005. Of the five sports recommended for inclusion only two were selected as finalists: karate and squash. Neither sport neither attained the required two-thirds vote nor consequently was they not promoted to the Olympic program. In October 2009 the IOC voted to instate golf and rugby union as Olympic sports for the 2016 and 2020 Summer Olympic Games. The 114th IOC Session, in 2002, limited the Summer Games program to a maximum of 28 sports, 301 events, and 10,500 athletes. Three years later, at the 117th IOC Session, the first major program revision was performed, which resulted in the exclusion of baseball and softball from the official program of the 2012 London Games. Since there was no agreement in the promotion of two other sports, the 2012 program featured just 26 sports. The 2016 and 2020 Games will return to the maximum of 28 sports given the addition of rugby and golf. The host city for an Olympic Games is usually chosen seven to eight years ahead of their celebration. The process of selection is carried out in two phases that span a two-year period. The prospective host city applies to its countrys National Olympic Committee; if more than one city from the same country submits a proposal to its NOC, the national committee typically holds an internal selection, since only one city per NOC can be presented to the International Olympic Committee for consideration. Once the deadline for submission of proposals by the NOCs is reached, the first phase (Application) begins with the applicant cities asked to complete a questionnaire regarding several key criteria related to the organization of the Olympic Games. In this form, the applicants must give assurances that they will comply with the Olympic Charter and with any other regulations established by the IOC Executive Committee. The evaluation of the filled questionnaires by a specialized group provides the IOC with an overview of each applicants project and their potential to host the Games. On the basis of this technical evaluation, the IOC Executive Board selects the applicants that will proceed to the candidature stage. Once the candidate cities are selected, they must submit to the IOC a bigger and more detailed presentation of their project as part of a candidature file. Each city is thoroughly analysed by an evaluation commission. This commission will also visit the candidate cities, interviewing local officials and inspecting prospective venue sites, and submit a report on its findings one month prior to the IOCs final decision. During the interview process the candidate city must also guarantee that it will be able to fund the Games. After the work of the evaluation commission, a list of candidates is presented to the General Session of the IOC, which must assemble in a country that does not have a candidate city in the running. The IOC members gathered in the Session have the final vote on the host city. Once elected, the host city bid committee (together with the NOC of the respective country) signs a Host City Contract with the IOC, officially becoming an Olympic host nation and host city. By 2016, the Olympic Games will have been hosted by 44 cities in 23 countries, but by cities outside Europe and North America on only eight occasions. Since the 1988 Summer Olympics in Seoul, South Korea, the Olympics have been held in Asia or Oceania four times, a sharp increase compared to the previous 92 years of modern Olympic history. The 2016 Games in Rio de Janeiro will be the first Olympics for a South American country. No bids from countries in Africa have succeeded. The United States has hosted eight Olympic Games, four Summer and four Winter, more than any other nation. The British capital London holds the distinction of hosting three Olympic Games, all Summer, more than any other city. The other nations hosting the Summer Games twice are Germany, Australia, France and Greece. The other cities hosting the Summer Games twice are Los Angeles, Paris and Athens. In addition to the United States, nations hosting multiple Winter Games are France with three, while Switzerland, Austria, Norway, Japan, Canada and Italy have hosted twice. Among host cities, Lake Placid, Innsbruck and St. Moritz have played host to the Winter Olympic Games more than once, each holding that honour twice. The most recent Winter Games were held in Vancouver, Canadas third Olympics overall. The next Winter Games will be in Sochi in 2014, Russias first Winter Olympics and second Olympics overall. (http://en.wikipedia.org/wiki/Olympic_Games, 24 Nov, 2012) London Wins By 15 July 2003, the deadline for interested cities to submit bids to the International Olympic Committee (IOC), nine cities had submitted bids to host the 2012 Summer Olympics: Havana, Istanbul, Leipzig, London, Madrid, Moscow, New York City, Paris and Rio de Janeiro. On 18 May 2004, as a result of a scored technical evaluation, the IOC reduced the number of cities to five: London, Madrid, Moscow, New York and Paris. All five submitted their candidate files by 19 November 2004 and were visited by the IOC inspection team during February and March 2005. The Paris bid suffered two setbacks during the IOC inspection visit: a number of strikes and demonstrations coinciding with the visits, and a report that a key member of the bid team, Guy Drut, would face charges over alleged corrupt party political finances. Throughout the process, Paris was widely seen as the favourite, particularly as this was its third bid in recent years. London was seen at first as lagging Paris by a considerable margin. Its position began to improve after the appointment of Lord Coe as the new head of London 2012 on 19 May 2004. In late August 2004, reports predicted a tie between London and Paris. On 6 June 2005 the IOC released its evaluation reports for the five candidate cities. They did not contain any scores or rankings, but the report for Paris was considered the most positive. London was close behind, having closed most of the gap observed by the initial evaluation in 2004. New York and Madrid also received very positive evaluations. On 1 July 2005, when asked who would win, Jacques Rogge said, I cannot predict it since I dont know how the IOC members will vote. But my gut feeling tells me that it will be very close. Perhaps it will come down to a difference of say ten votes, or maybe less. On 6 July 2005, the final selection was announced at the 117th IOC Session in Singapore. Moscow was the first city to be eliminated, followed by New York and Madrid. The final two contenders were London and Paris. At the end of the fourth round of voting, London won the right to host the 2012 Games with 54 votes to Pariss 50. The celebrations in London were short-lived, being overshadowed by bombings on Londons transport system less than 24 hours after the announcement. (http://en.wikipedia.org/wiki/2012_Summer_Olympics, 24 Nov, 2012) Why was London chosen? A lot of available land to regenerate Government was in favor Many hotels and restaurants Has the right facilities A good transport system In Europe, close to many spectators and potential athletes A good climate during July and August Pre Olympics Preparations for the Games Economics of the Games By almost any measure, staging the Olympic Games was big business. Revenue is generated from five principal sources: à ¢Ã¢â€š ¬Ã‚ ¢ Broadcast rights-the rights to broadcast the Games in countries around the world. In recent times, the rights for the United States accounted for about 50% and the rights for Europe accounted for 25% of the total broadcast revenue. à ¢Ã¢â€š ¬Ã‚ ¢ International sponsorship-the rights for a company to proclaim itself an Official Sponsor of the Olympic Games on a worldwide basis in the four years leading up to the Games. à ¢Ã¢â€š ¬Ã‚ ¢ Ticketing-the tickets to the individual Olympic events. à ¢Ã¢â€š ¬Ã‚ ¢ Domestic sponsorship-the rights for a company to proclaim itself an official sponsor of the Olympics within the country hosting the Games. à ¢Ã¢â€š ¬Ã‚ ¢ Licensing rights-the rights to use the Olympic logos and trademarks on items ranging from stamps and coins to t-shirts and stuffed animals. Preparing For and Managing the Games Using its allocation of the Olympic revenues, the host city London Organising Committee of the Olympic and Paralympic Games had to plan for, organize, and manage the 17 days of the Games, all within the contractual obligations set forth by the IOC. The major tasks included: à ¢Ã¢â€š ¬Ã‚ ¢ Staging the Opening Ceremony, Closing Ceremony, and sporting events à ¢Ã¢â€š ¬Ã‚ ¢ Arranging for the required stadia, arenas, training facilities, and equipment à ¢Ã¢â€š ¬Ã‚ ¢ Housing and feeding the athletes and officials à ¢Ã¢â€š ¬Ã‚ ¢ Anticipating and solving potential transportation problems à ¢Ã¢â€š ¬Ã‚ ¢ Meeting the needs of the media à ¢Ã¢â€š ¬Ã‚ ¢ Providing security to ensure a safe and peaceful Olympics Importantly, while the London Organising Committee of the Olympic and Paralympic Games was responsible for arranging for the Games infrastructure, responsibility for actually providing that infrastructure rested with the host city and country. This included the stadia and arenas to stage the events, the Olympic Village to house the athletes, the national and international transportation systems to efficiently get people to and from the host city, and the local transportation systems to shuttle people to and from the events. If funds were needed to build this infrastructure, they typically were raised through taxation, lotteries, and private investment. Chris Townsend explained: The costs of any Olympics can be broken down into software or people costs and hardware or infrastructure costs. Software costs are the responsibility of the London Organising Committee of the Olympic and Paralympic Games, and include the expenses associated with planning the Games, housing the athletes, and running the events. In contrast, hardware costs are the responsibility of the host city and depend greatly on the existing infrastructure. à ¢Ã¢â€š ¬Ã†â€™ The 2012 Games Great Britain was no stranger to the Olympic Games. It was one of only four nations to compete in all 26 Olympic Games, holding third place in total number of medals won. It had successfully hosted the 1908 and 1948 London Games. And it had bid on the 1992, 1996, and 2000 Games. Winning the rights to the 2012 Games was far from certain, however, with Paris, New York, Moscow, and Madrid also in the final running. The process to select the host city consisted of a series of secret ballots, with each IOC member voting for the city of his or her choice. After each round of voting, if no city obtained a majority of the votes cast, the city with the lowest number of votes was eliminated, and the remaining cities advanced to a new round of voting. By most accounts, Paris was the favourite to win the rights to the 2012 Games. However, many believed the London bid was aided by the addition of Sebastian Coe to the London Bid Committee in 2004. Coe was the 1980 and 1984 gold medallist in the 1,500-meter run, was widely considered one of the greatest middle-distance runners of all time, had served as a member of the British Parliament, and was widely respected both within and outside the Olympic community. In the end, the IOC apparently was impressed by the proposal that the London Bid Committee submitted. As announced on July 6, 2005, to the joy of its many supporters, London had won the rights to host the 2012 Games in a final, head-to-head ballot in which London received 54 votes to Pariss 50. The Plans for the 2012 Games The 2012 Games were scheduled to run from July 27 to August 12, with over 12,000 athletes from 205 countries expected to compete across 26 sports and 300 events. In a perfect world, the organizing committee knew, their decisions would satisfy many criteria. à ¢Ã¢â€š ¬Ã‚ ¢ First, given the importance of ticketing to the Games bottom line, they had a strong incentive to maximize revenues. à ¢Ã¢â€š ¬Ã‚ ¢ Second, given that the entire world would be watching, they wanted to maximize attendance-not just at the Opening Ceremony and swimming finals, which traditionally were easy sells, but also at events like handball and table tennis, which were not. à ¢Ã¢â€š ¬Ã‚ ¢ Thirdly, the wanted to fill the seats with right people- knowledgeable fans who added to the energy and atmosphere of the event. à ¢Ã¢â€š ¬Ã‚ ¢ Finally, tickets had to be accessible not only to the worlds elite but also to average Londoners, many of whom lived around the corner from the Olympic park. With 7.9 million tickets up for sale, the LONDON ORGANISING COMMITTEE OF THE OLYMPIC AND PARALYMPIC GAMES anticipated an average of 500,000 spectators per day to attend the Games, with up to 800,000 on the busiest days. It estimated that roughly 30% of all tickets would be purchased by Londoners, 25% by United Kingdom residents who lived outside of London, 20% by people from the rest of Europe, and 25% by people from the rest of the world. In addition, it expected 10,000 Olympic and political dignitaries to watch some or all of the Games, 20,000 journalists and media personnel to cover the Games, 60,000 security personnel to ensure safety, and 100,000 paid and volunteer workers to help run the Games. Location and Venues A key selling point in the London bid was the plan to build the centrepiece of the Games-the Olympic Park-in East London. As stated in Londons bid document: Great Games leave welcome legacies. Consistent with Londons long-term plan, the Games will stimulate vital economic and social regeneration in what is now a disadvantaged area. Creation of the Olympic Park will involve restoring large tracts of land in East London, with new green spaces and revived wetlands. The Olympic Village will become a desirable and socially diverse new residential area, providing 3,600 new homes in a community transformed by the Games. The intent was to develop 500 acres of existing industrial and waste land in East London into the Olympic Park. By 2012, this would include: à ¢Ã¢â€š ¬Ã‚ ¢ The 80,000-seat Olympic Stadium-for Opening and Closing Ceremonies and athletics à ¢Ã¢â€š ¬Ã‚ ¢ The 17,500-seat Aquatics Centre-for diving, swimming, and water polo à ¢Ã¢â€š ¬Ã‚ ¢ The 12,000-seat London Velopark-for indoor track cycling and outdoor BMX cycling à ¢Ã¢â€š ¬Ã‚ ¢ The 12,000-seat Basketball Arena à ¢Ã¢â€š ¬Ã‚ ¢ The 15,000-seat Olympic Field Hockey Centre à ¢Ã¢â€š ¬Ã‚ ¢ The 17,000-bed Olympic Village After the Games, the plan was to reduce the size of several of the larger venues to fit with the surrounding community, to relocate several of the smaller venues to other parts of the country where they could be better utilized, and to convert the Olympic Village into 3,600 units of affordable housing, with an additional 5,400 new homes to be built later. The remaining sports would use existing venues located throughout London and the UK, including Earls Court (volleyball), Excel London (judo, weightlifting, wrestling), Hyde Park (triathlon), the Millennium Dome (gymnastics), Wimbledon (tennis), and Wembley (football). Transportation A second critical element of the London bid was a plan to make the 2012 Games the first public transport Olympics, with close to 100% of ticketed spectators traveling to the Olympic events by such means. To make this happen, existing transportation links to and from the East London area were to be expanded and upgraded, turning it into one of the best-connected Communities in the city. The most talked-about of these efforts was a 12-car subway shuttle called the Olympic Javelin, which would ferry passengers from Kings Cross Station, in the heart of London, to the Olympic Park in just 7 minutes. These efforts were expected to support the transport of up to 240,000 passengers per hour into and out of the Olympic Park area. In turn, to encourage spectators to use public transportation, the London Organising Committee of the Olympic and Paralympic Games had announced that the price of every ticket to an Olympic event would include the use of Londons public transportation network on the day of that event. Atmosphere finally, the London Organising Committee of the Olympic and Paralympic Games hoped to engage and excite the British public. While Sydney came to be called the Laid-Back Games, and Beijing had been unofficially dubbed the No Fun Games, the London Organising Committee of the Olympic and Paralympic Games wanted the legacy of the 2012 Games to be one of inclusiveness. Toward this end, Sebastian Coe noted: Whilst London will be the principal venue, it is the entire United Kingdom which will be the host. The London 2012 Games will be Everybodys Games. London 2012 will be the most accessible and participative Games ever. Putting on Everybodys Games, we are clear that our stakeholders are the 60 million people living in Britain. Delivering the 2012 games The two groups responsible for delivering the 2012 games were the London Organising Committee of the Olympic and Paralympic Games, which staged the Games, and a quasi-governmental organization called the Olympic Delivery Authority, which built the infrastructure. The London Organising Committee of the Olympic and Paralympic Games forecasting budget was $3 billion. Roughly $1.2 billion of this came from its share of the broadcast revenues and international sponsorships. London Organising Committee of the Olympic and Paralympic Games was responsible for the rest, with a planned $1 billion coming from about 60 domestic sponsors, $650 million from ticket sales, and $150 million from licensing fees. The Olympic Delivering Authoritys total expenses were projected to run about $12 billion: $6 billion for the building of the Olympic park, $4 billion for the transportation upgrades, and the rest for smaller projects, contingencies and taxes. Roughly 60% of these funds came from national taxes, 15% came from London city taxes, and 20% came from the National Lottery. Selling tickets to the games Hired as head of ticketing in September 2007, Paul Williamson was no stranger to large sporting event. Previously, he had helped set ticketing guidelines for several FIFA World Cup Finals, the Cricket World Cup etc. He was well aware of the challenges that London Organising Committee of the Olympic and Paralympic Games faced: Ticketing for the FIFA World Cup was a great experience, but it pales in comparison to the Olympic Games. For a World Cup Final, you sell three million tickets to 64 matches played over 30 days in 10 or 12 major cities. The teams were all of very high calibre, the stadia were all well established, and football was the most popular sport in the world. With the Olympic Games, they were trying to sell almost eight million tickets to 26 different sports played over 17 days, with some sports wildly popular and others a complete mystery to the average person. In reality, they were running 26 world championships in a fortnight. While many ticketing issues were still up in the air, some had already been decided. In particular, it was known that: à ¢Ã¢â€š ¬Ã‚ ¢ A total of 7.9 million tickets would be available for sale across all events. à ¢Ã¢â€š ¬Ã‚ ¢ In late 2010, international and domestic sponsors, the 205 National Olympic Committees, the International Federations, and other IOC affiliates could place requests for tickets- specifying how many tickets at each price point they desired for each event. All would pay full price for any tickets ultimately received and, collectively, these groups would receive no more than 25% of available tickets. à ¢Ã¢â€š ¬Ã‚ ¢ In the spring of 2011, the general public could similarly place requests for tickets, via an online ballot, specifying the event, number of tickets, and price point they desired. à ¢Ã¢â€š ¬Ã‚ ¢ In the summer of 2011, ticket requests from both the IOC affiliates and the public would be processed and individuals would be informed as to whether they had obtained tickets. à ¢Ã¢â€š ¬Ã‚ ¢ Later in 2011 and into 2012, any remaining tickets would be offered for direct sale. à ¢Ã¢â€š ¬Ã‚ ¢ During the Games, tickets still not sold would be available for purchase at box offices throughout London. Williamson noted that those applying for tickets were requesting entry to a particular event within a certain price tier. Not until tickets were matched to requests, in the summer of 2011, would customers find out where they actually sat in the stadium or arena. Managing Ticket Revenues When it came to managing ticket revenues, Williamson and his team looked to the 2000 Sydney Games for inspiration: While the 2004 Athens Games and the 2008 Beijing Games were wonderful events, they do not provide a great ticketing benchmark for the London Games. Athens was hampered by the small size of the city and the limited capacity of the venues. And Beijing tried hard to make tickets affordable for its domestic population, resulting in ticket prices that were artificially low. But the Sydney Games were staged in large venues in the largest city of a wealthy, sports- loving country. People were willing to pay to attend events and the results reflected this fact. The London Organising Committee of the Olympic and Paralympic Games also viewed sufficient ticket revenues as vital to the legacy of the 2012 Games. As Chris Townsend noted: With so much money involved in the Games, it is easy to view ticket sales as a drop in the bucket. What is $650 million when the Olympic Delivery Authority is spending $12 billion to build the Olympic Park and the Olympic Javelin? But putting things in perspective. Last year, Manchester United generated about $150 million in ticket revenues over a nine-month season, while the New York Yankees sold $120 million in tickets over a six-month season. They were looking to bring in four to five times those amounts, which will have a major impact on the financial legacy of these Games. But Williamson knew that maximizing ticket revenue meant more than just charging high prices Peoples willingness-to-pay for a given event will depend on many factors. Theres an expectation about what a ticket should cost based on other sporting events in and around London. Theres the global appeal of a sport, with swimming and gymnastics being very popular around the world. Theres the local appeal of the sport, often driven by the host countries past success in that sport. Theres the event stage, with most people wanting to see those stages where the gold medals are awarded. And then theres a particular team or athlete that makes the difference. Williamson also reasoned that the pricing of tickets at past Games provided only limited guidance for the pricing of the London Games: First, every host city possesses unique tastes, culture, and atmosphere. While beach volleyball may be big in Australia, table tennis is king in China. Second, the reach of the Games varies by location. Given the difficulties in getting into China, tickets to the Beijing Games were largely limited to the Chinese. Given the proximity of London to the rest of Europe, they anticipate a much more international crowd. Third, this will be the first Games where ticketing will be done via the Internet, which may alter demand for some events. Finally, with the current global financial crisis, London 2012 is entering uncharted territories. Managing Attendance The London Organising Committee of the Olympic and Paralympic Games also wanted to fill the many venues during the games. As stated in the London bid document, Great Games generate genuine enthusiasm. This will be demonstrated by full stadia across a wide range of events. Given that organizers expected close to five billion television viewers to watch some part of the 2012 Games, the last image the London Organising Committee of the Olympic and Paralympic Games wanted broadcast to the world was that of half-empty arenas. Everyone at the London Organising Committee of the Olympic and Paralympic Games understood the potential fallout from attendance shortfalls. Pinned to a nearby bulletin board were several articles from recent games. In reference to the 2004 Athens Games, one New York Times headline read, Summer 2004 Games: Seats May Be Empty, But Not the Beaches. And in regard to the 2008 Beijing Games, the Los Angeles Times proclaimed, Empty Seats Are a Mystery at Beijing Olympics. Williamson broke down the challenge of maximizing attendance into two parts. First, you have to get people to buy the tickets. Second, you have to get those who purchased tickets to actually use them. Neither of these was a trivial task. When it came to getting people to buy the tickets, Williamson had no illusions: You just cant sell every ticket to every event. The Opening Ceremony? Sure. The final day of track and field? Sure. Michael Phelps in any of the swimming events? Sure. But what about a preliminary round of handball, table tennis, or archery? The demand is just lower for certain sports. The reality is, there were three classes of events they managed. First, there was big four-swimming, artistic gymnastics, athletics, and the ceremonies-where demand historically far exceeds supply and which likely sold out at almost any prices. They expected about 40% of ticket revenues to come from these four sports. Second, there was football, with almost two million tickets across 58 mens and womens matches. If there was any single sport with which they obsess, it was football. On the one hand, football is the most popular sport in Europe, which worked in their favour. On the other hand, unlike the FIFA World Cup, the Olympic teams were largely limited to players under 23 years of age, eliminating some of the biggest names in the sport. They hope to generate another 10% of ticket revenue from football. Third, there were all the other sports, where supply historically exceeds demand and where they had to work hard to maximize sales. But the challenge did not end with merely selling the tickets. As the Beijing organizers discovered, ge

Great Depression Essay

The Government Didn’t Do Enough |The Government Did Enough | | |Common Knowledge |Common Knowledge | |William Lyon Mackenzie king |William Lyon Mackenzie King | |-wouldn’t give Conservative governments financial assistance |- | |-thought unemployment was seasonal | | |-wanted to balance the budget |Richard B. Bennett | |-king beats Bennett in the 1935 election (New Deal) |-helped out those who sent him letters | |-did nothing after winning election |-Bennett’s new deal | | |Health insurance, Unemployment insurance, Maximum work week, | |Richard B.Bennett |financial assistance to farmers | |-Raised Tariffs | | |-Unemployment reflex camps |Co-operative Common Wealth Federation (CCF) | |-Bennett blanket and buggy |-J. S. Woodsworth – Saskatchewan | | |-public own | |Co-operative Common Wealth Federation (CCF) |-increase social programs | |-J. S.Woodsworth – Saskatchewan |-government spend their way out of the depression | | | | |Social Credit |Social Credit | |-â€Å"Bible â€Å"Bill Aberhardt – Alberta |-â€Å"Bible â€Å"Bill Aberhardt – Alberta | |-Federal government wouldn’t allow it |-everyone to get $25 per month to spend on necessities | | | |Union Nationale |Union Nationale | |- Maurire Duplessis – Quebec |Maurire Duplessis – Quebec | |-emphasis on french language and culture | | | | | |PDF |PDF | |Page 2: kids had to cut street car tickets in half which were|Page 23: relief camps gave you food shelter and transportation. | |12 for a quarter so then they would get 24 for a quarter |Basically everything you needed | |page 5: kids hunted squirrels and gophers for meat |Page 35: Bennett’s new deal. 8 hour work day, minimum wage, | |Page 6: kids would chew grain instead of gum (would chew |elimination of child labour, insurance plan, and controlled | |alfalfa until it became like gum) |prices. –CCF, government has ownership of bank, insurance, bank, | |Pag e 8: kids were told there was no Santa |communication and power companies. |Page 33: men would walk 11 miles to apply for a job only to |Page 19: William Abhardt purposed goal was to give $25 every month| |find out there are hundreds of people all ready there waiting|to increase prosperity | |Page 34: farmers could not afford gas so they would attach |Page 16: hundreds of men would get meals at the soup kitchen | |their car to their horse and called it the Bennett Buggy |Page 29: one didn’t have to pay income tax unless ones income was | |Page 8: unemployment relief camps only paid 20 cents a day. |over $2000 | |Page 20: hundreds of men were found sleeping in a Toronto |Page 12: relief payments sometimes were in vouchers. Could only | |park with only a newspaper covering them. Bennett Blanket |buy specific items | |Page 21: jail cells were in terrible condition. Each cell | | |might have a bed. 200 men waiting for one toilet. Stomach | |troubles because of the food | | |Pa ge 10: Large companies laid off workers from railway | | |strikes | | |Page 3: Bennett raises tariffs | | |Page 2: people committed crimes to go to jail and have food | | |to eat | | |Page 24: innocent bystanders killed because of relief camp | | |strikers | | |Page 36: hard for farmers to be relieved, no way of | | |transportation | | |Page 2: boys were given pointless tasks (dig then fill holes)| | | | | |Page 7: one would pay doctors in food because one had no | | |money | | |Page 10: men in relief camps were treated like dirt/slaves | | |Page 22: paper shack, 79 x 24 with no windows. 88 men | | |Page 33: people tried to sell vacuums, pictures, books, | | |brushes. Too desperate | | |Page 10: government wanted the unemployed men out of sight | | |Page 12: no jobs therefore unemployment so people had lots of| | |dept | |Page 15: cars had disappeared because owners had to buy | | |antifreeze, but anti freeze was costly | | |Page 7: kids did not see an orange until Christmas | | |Page 8: one could not leave the relief camp because there was| | |nothing for about 100 miles. Had to stay | | |Page 14: Canadian government deported/sent back over 10,000 | | |immigrants. Some immigrants risked their lives to come to | | |Canada. No jobs so the government sent them back thinking it | | |was the solution. | |

Natural monopoly Essay

I believe that times change and as they, change rules and regulations must adapt to the times. Therefore, the treatment of the different industries must represent the different industries as they grow. I do not think the Telephone and Broadcast should never have or ever be considered a â€Å"Natural Monopoly†. The concept of natural monopoly presents a challenging public policy dilemma. On the one hand, a natural monopoly implies that efficiency in production would be better served if a single firm supplies the entire market. On the other hand, in the absence of any competition the monopoly holder will be tempted to exploit his natural monopoly power in order to maximize its profits. A â€Å"natural monopoly† is defined in economics as an industry where the fixed cost of the capital goods is so high that it is not profitable for a second firm to enter and compete. There is a â€Å"natural† reason for this industry being a monopoly, namely that the economies of scale require one, rather than several, firms. Small-scale ownership would be less efficient. Natural monopolies are typically utilities such as water, electricity, and natural gas. It would be very costly to build a second set of water and sewerage pipes in a city. Water and gas delivery service has a high fixed cost and a low variable cost. Electricity is now being deregulated, so the generators of electric power can now compete. But the infrastructure, the wires that carry the electricity, usually remain a natural monopoly, and the various companies send their electricity through the same grid. Cable as a â€Å"Natural Monopoly†. Nearly every community in the United States allows only a single cable company to operate within its borders. Since the Boulder decision [4] in which the U. S. Supreme Court held that municipalities might be subject to antitrust liability for anticompetitive acts, most cable franchises have been nominally nonexclusive but in fact do operate to preclude all competitors. The legal rationale for municipal regulation is that cable uses city-owned streets and rights-of-way; the economic rationale is the assumption that cable is a â€Å"natural monopoly. † The theory of natural monopoly holds that â€Å"because of structural conditions that exist in certain industries, competition between firms cannot endure; and whenever these conditions exist, it is inevitable that only one firm will survive. † Thus, regulation is necessary to dilute the ill-effects of the monopoly. [5] Those who assert that cable television is a natural monopoly focus on its economies of scale; that is, its large fixed costs whose duplication by multiple companies would be inefficient and wasteful. Thus, competitive entry into the market should be proscribed because it is bound to be destructive. The Competitive Reality I believe that times change and as they, change rules and regulations must adapt to the times. Therefore, the treatment of the different industries must represent the different industries as they grow. I do not think the Telephone and Broadcast should never have or ever be considered a â€Å"Natural Monopoly†. The concept of natural monopoly presents a challenging public policy dilemma. On the one hand, a natural monopoly implies that efficiency in production would be better served if a single firm supplies the entire market. On the other hand, in the absence of any competition the monopoly holder will be tempted to exploit his natural monopoly power in order to maximize its profits. A â€Å"natural monopoly† is defined in economics as an industry where the fixed cost of the capital goods is so high that it is not profitable for a second firm to enter and compete. There is a â€Å"natural† reason for this industry being a monopoly, namely that the economies of scale require one, rather than several, firms. Small-scale ownership would be less efficient. Natural monopolies are typically utilities such as water, electricity, and natural gas. It would be very costly to build a second set of water and sewerage pipes in a city. Water and gas delivery service has a high fixed cost and a low variable cost. Electricity is now being deregulated, so the generators of electric power can now compete. But the infrastructure, the wires that carry the electricity, usually remain a natural monopoly, and the various companies send their electricity through the same grid. Cable as a â€Å"Natural Monopoly† Nearly every community in the United States allows only a single cable company to operate within its borders. Since the Boulder decision [4] in which the U. S. Supreme Court held that municipalities might be subject to antitrust liability for anticompetitive acts, most cable franchises have been nominally nonexclusive but in fact do operate to preclude all competitors. The legal rationale for municipal regulation is that cable uses city-owned streets and rights-of-way; the economic rationale is the assumption that cable is a â€Å"natural monopoly. † The theory of natural monopoly holds that â€Å"because of structural conditions that exist in certain industries, competition between firms cannot endure; and whenever these conditions exist, it is inevitable that only one firm will survive. † Thus, regulation is necessary to dilute the ill-effects of the monopoly. [5] Those who assert that cable television is a natural monopoly focus on its economies of scale; that is, its large fixed costs whose duplication by multiple companies would be inefficient and wasteful. Thus, competitive entry into the market should be proscribed because it is bound to be destructive. The Competitive Reality 1. A skeptic hearing exhortations that cable television is a natural monopoly that should be locally regulated could have some questions at this point. First, if cable is a natural monopoly, why do we need to guarantee it with a franchise? Economists Bruce Owen and Peter Greenhalgh argue persuasively that given economies of scale, if a cable company â€Å"is responsive and efficient in its pricing and service quality then there will be little incentive for competitors to enter, and no need for an exclusionary franchise policy. â€Å"[9] Thus, if entry restrictions are necessary to arrest competition, the industry by definition is not a natural monopoly. 2. Second, if cable is a natural monopoly, is it necessarily a local monopoly? Some observers use the terms interchangeably, but there is no evidence that economic laws respect municipal boundaries. Given large fixed costs, does it make sense to award a local franchise to one company when another already has facilities in an adjacent community? Yet such â€Å"wasteful duplication,† as the natural monopoly proponents would call it, occurs frequently under the franchise system. Local franchises make no sense in a true natural monopoly setting. 3. These questions, however, go to the heart of natural monopoly theory itself, a doctrine that is under increasing attack. [10] In the face of crumbling conventional wisdom in this area, the burden should be on the natural monopoly proponents to demonstrate that competition is not possible, and further, that regulation is necessary. Such a demonstration will prove impossible in the cable context. Cable is both extremely competitive, facing both direct and indirect market challenges, and, in any event, is better left unregulated. For many decades, economic textbooks have held up the telecommunications industry as the ideal model of natural monopoly. A natural monopoly is said to exist when a single firm is able to control most, if not all, output and prices in a given market due to the enormous entry barriers and economies of scale associated with the industry. More specifically, a market is said to be naturally monopolistic when one firm can serve consumers at lower costs than two or more firms (Spulber 1995: 31). For example, telephone service traditionally has required laying an extensive cable network, constructing numerous calls switching stations, and creating a variety of support services, before service could actually be initiated. Obviously, with such high entry costs, new firms can find it difficult to gain a toehold in the industry. Those problems are compounded by the fact that once a single firm overcomes the initial costs, their average cost of doing business drops rapidly relative to newcomers. The telephone monopoly, however, has been anything but natural. Overlooked in the textbooks is the extent to which federal and state governmental actions throughout this century helped build the AT&T or â€Å"Bell system† monopoly. As Robert Crandall (1991: 41) noted, â€Å"Despite the popular belief that the telephone network is a natural monopoly, the AT&T monopoly survived until the 1980s not because of its naturalness but because of overt government policy. † I hope that the above facts help support my beliefs that these industries should not be considered Natural Monopolies. These companies just executed and had better site than other in the same industry had. Today ATT is just as strong as it ever was. References Benjamin, S. M. , Lichtman, D. G. , Shelanski, H. , & Weiser , P. (2006). FOUNDATIONS. In Telecommunications Law and Policy . (2nd ed. ). (pp. 437 – 469). Durham, NC : Carolina Academic Press. Foldvary, F. E. (1999). Natural Monopolies . The Progress Report. Retrieved January 9, 2012, from http://www. progress. org/fold74. htm Thierer , A. D. (1994). UNNATURAL MONOPOLY: CRITICAL MOMENTS IN THE DEVELOPMENT OF THE BELL SYSTEM MONOPOLY . 14(2).

The Extent of Protection for Women Against Male Violence...

DISCUSS THE EXTENT OF PROTECTION FOR WOMEN AGAINST MALE VIOLENCE BY THE STATE. For this essay I am going to look at Domestic Violence against women and what the State is doing to protect them. Domestic Violence is now a well-known global occurrence affecting not only women but also their children too. Violence against woman has been around since the dawn of time. We have all seen cartoon pictures of the caveman dragging his mate behind him by her hair. It was just something that men did. Woman had no protection against men especially if they were married to their attacker. For the first 75 years of the 20th century women were seen as meek and subservient to their men and were also owned by those men. Men had a social right to keep†¦show more content†¦Violence is attributed to the lower/working classes or black social groups. Sylvia Walby has attacked this approach by saying that this is not the case. Not all under educated, low paid or low status men go out and rape and abu se. Radical feminists see domestic violence as a widespread and classless act. They see that men are expected to take the lead in a situation, they are supposed to be strong and macho. They go to war and fight for their countries. Their strength is something to be looked up to not down on. Their strength is their basis of power. The critics against this approach say that is does not take into account class or race. Male violence is a form of social control and the state does not make an attempt to control and eradicate it. The sate is run by men, for men, to protect men. Figures to show the extent of male violence against women is difficult to truly estimate due to the large number of abuse cases that are never reported to the police. Statistics that have been documented are alarming to say the least.  § 1 in 4 women may experience violence in their relationships with men (Women’s Aid Federation {England} report 1992)  § Severe, repeated and systematic violence occurs in at least 5 of every hundred marriages in the UK: Between 40% and 45% of murdered women are killed by their male partners; Between 1 and 2 women are murdered by their male partners every week; More that 25% of all violent crime repeated to theShow MoreRelatedElizabeth Stanko s Influence On Male Violence And Its Aftermath For The Victims Essay1589 Words   |  7 Pagesbecomes attentive to how females are to blame for the brutality of male violence. She states that â€Å"male violence against women remains a problem of women’s respectability not men’s behaviour† (4). Additionally, she cautions the reader throughout that male violence is condoned, even infrequently punished, by the Criminal Justice System. 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Climate Change Has Been Recently A Hot Debate Among...

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It seems that the Australian government needs to la unch a plan to reduce the carbon emission by a steady decrease in fossil fuel consumption. Despite blaming the fossil fuel due to its significant role in climate change and its consequences, fossil fuel in any form, coal, oil and natural gas has undeniably been the major energy source for technology developments since industrial revolution era. Therefore, to reduce fossil fuel consumption, it is necessary to find out potential alternatives. There are some realistic options compatible with AustralianShow MoreRelatedOne Significant Change That Has Occurred in the World Between 1900 and 2005. Explain the Impact This Change Has Made on Our Lives and Why It Is an Important Change.163893 Words   |  656 Pagescollection document in detail, paradox pervades the time span we call the twentieth century, no matter how it is temporally delineated. 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Adidas and its Ethical and CSR - 1441 Words

Ethics and corporate Social responsibility:- Ethics is defined as what is right and what is wrong. Every business should behave ethically. The moral principles that guide the way a business behaves are business Ethics. Ethics are moral guidelines to people or to an organisation which govern good behaviour. So behaving ethically is doing what is morally right. Doing an ethical business may always be not profitable but it will be more beneficial to company and the people involved in company as well as the people who are getting influenced by the company. If a company is acting ethically then it is trying to differentiate between right and wrong and then chose the right decision for everyone. It is very easy it identify any unethical†¦show more content†¦It provides a conceptual framework that enables Adidas stakeholders — from its 50,000 employees on through to suppliers, customers and communities — to better and more easily understand, assess and realize the multinational footwear and sportswear companyâ⠂¬â„¢s sustainability goals. Adidas 4Ps approach:- Recently Adidas have launched waterless dying technology known as DryDye technology. This technology instead of consuming 25 litters of water necessary to dye one t-shirt, the DryDye technology uses none–instead, the dye is injected using compressed carbon dioxide. The result is a garment using not only 50 percent less chemicals and energy, but in the long run has a lower environmental impact because the CO2-based dye actually lingers in the fabric longer. This concept helps in reduction of consumption of water in dying process. Before Adidas used to produce large number of samples for marketing purpose and we all know that samples produced where all wasteful. Now designers and marketers in Adidas are using Virtual technology which is far better and cost effective. In comparison to 2010 they have reduced the number of samples produced to 600000 in 2011/2012. It helps to save lot more of resources which would have being used in production of samples. 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Challenges Of Enterprise Resource Planning Implementation In Iran Larg

Questions: Identify Project concept, scope, aims and objectives and apply appropriate project management tools techniques for effective and successful implementation of the project and by using appropriate scope, time, quality and cost parameters. Appraise key aspects of the project management strategy to the organizational structure and business environment of the organization. Recommend a suitable structure and processes for project monitoring and control using relevant Project tools, techniques and graphic representation of data. Address organizational aspects like quality, risk management and include financial forecasting, uncertainty risk analysis. Integrate planning with estimating and budgeting, budgetary control and use an appropriate planning, execution, implementation and management strategy. Answers: Introduction The project that has been chosen is Successful ERP implementation for a manufacturing organization. The Project Manager will carry out the complete strategic business management. The process will include project management tools, techniques, and explanation of project life cycle, human resource management, communication plan and key deliverables. ERP stands for Enterprise Resource Planning and for a manufacturing oriented organization, automated system will help in error minimization[1]. Thus, the ERP implementation will relate and coordinate all the business units, manufacturing departments, inventories, and supply chain and accounts management. In this project, the management organization that has been chosen is Kohler Company. This organization deals with manufacturing furniture, tile, cabinetry, generators and engines. This is a private oriented organization and is old enough to support the overwhelming demands at present. Thus, the organization needs to install central based data system, such as ERP, which will help in understanding the present inventory and accounts possibilities[2]. Therefore, in this project, through Work Breakdown Structure and project management tools, ERP implementation will be delivered with several charts and tabulations. The main aim of this project is to reduce the expense for human resource and increase coordination among different departments such as suppliers, vendors, distributors, production unit, managers, inventories, warehouse and accounts. Project Management Plan The project management plan can be described in the following chart: Project Title: Successful ERP implementation for a manufacturing organization Project Manager: Executive Sponsor: Principal Stakeholder: Business Owner Project Charter: Implementation of ERP system for business development and sustainability Scope: Organization is currently progressing with increasing demand, hence with ERP implementation; automated process will reduce production time and technological development. Aim: Enhance the technological innovation and coordination of business units to ensure sustainability. Objectives: 1. To reduce overhead expense 2. To enhance communication and organizational sustainability 3. To create a central based data system Table 1: Project Management Plan (Source: Author) Stakeholder Identification Serial Number Stakeholders Explanation 1 Business Owner The main stakeholder of this project is Business Owner as he holds the political and financial assurance of the organization. The impact of the project will give the best result for the business owner, as the return on technological investment will generate sophisticated positive outcome. 2 Hired Engineers The organization at present has` very less technology usage. Thus, the automated system will need to be enhanced, which will include engineers from other sectors. 3 Sales and marketing department The affected business is not confined to one particular unit and thus, approval relates to sales and marketing department. At most of the time, the officials are not able to coordinate with the vendors and distributors, which will be addressed by ERP Table 2: ERP Project Stakeholder Identification Source: [3] Project Management Plan Figure 1: ERP Project Management Source: [4] Work Breakdown Structure Figure 2: Work Breakdown Structure of Project Source: [5] From the above WBS, four important activities can be identified, which are Project Preparatory, System Architecture Design, Business Blueprint and Configuration and development. Figure 3: ERP Work Breakdown Structure Source: [6] After signing-off configuration, defining authorization is required, which will be followed by data conversion, program development and system testing. Testing of system will help in identifying any problems that have been not taken care earlier. Figure 4: ERP Work Breakdown Structure Source: [7] This model is the final stage of ERP implementation as the system will be tested on existing system which will consist of training, testing and cut-over. Project Life Cycle Project Life Cycle of ERP implementation can be divided into 8 stages. Pre-evaluation Screening There are lots packages available for ERP implementation in the market. With too many packages, the business process becomes complicated[8]. Thus, for this organization, it needs to include less number of package as the business units are comparatively lower than multinational organizations. Evaluation Package After one particular package is selected, the organization needs to identify whether it has the capability of implementing the system, as ERP implementation costs a huge amount[9]. Thus, any package needs to be compared with alternatives and then progress will need to be initiated. Project Planning After the package is finalized, ERP implementation will start where roles, responsibilities, functions, time, resource, deadline and related costs will be segregated and aligned[10]. Work Breakdown Structure will be followed in this stage and each of the activities will be allowed ample amount of time and testing. Gap Analysis Post implementation, this phase is the most critical, as the organization will come to know about the systematic model. Organization will know where they are now and where they want to be in future. Even the best selected package will end by delivering 80% functional support, and rest 20% will contain unavoidable risks. Reengineering Any type of malfunctions and systematic problems will be mitigated by additional human resource deployment. This phase is after testing the WBS and necessary changes will be done in this phase so that system is more concrete and efficient[11]. Team Training In this stage, employees within the organization, who will test the automated system will be given training. Adequate time and cost will be allocated and even those employees will be selected who has the best experience and knowledge of the organization. Testing In this stage, the automate system will be tested in real case scenarios. Extreme cases will be tested such as system overload, invalid data entry, multiple user log in and accessibility of hackers. Weak link is used in this testing stage to determine the least possible risk[12]. Post implementation After testing and implementation is done, the consultants and vendors will operate the system and will confirm the go live. Employees, users and other stakeholders will be made aware of the system so that fluid functioning is processed in future. Figure 5: ERP Project Life Cycle Source: [13] Project Management Process Planning Financial planning is the main factor for ERP implementation. There are four elements of budgeting, which are software, maintenance fees, hardware and implementation services. Microsoft Dynamics GP is the software which has the same price all over the market. 18% of the total software cost will be allocated for maintenance fees. For infrastructure, new server will need to be purchased. Microsoft SQL server will be included in this section. Implementation services is completely unknown, which will vary as per the need of business. Monitoring In order to monitor, the consultants and project team will identify the faults in the system. The whole system will be made automated and thus, each of the departmental progress will be customized in this section. SQL server will help in restoring security evaluation and technicians will determine any alteration. Control Process Groups Control process groups will determine the following tools and techniques for ERP implementation: Database management tools Relational database like Sybase, Oracle, DB2, Microsoft SQL Multiple centralized data flow Interface with permission control Content writing ERP tool Logistics department tool Workflow management tool Modules and data repositories Agiloft Workflow Inetlex Business management Reporting tool Real time data review Browser based installation with charts/graphs/tables Communication tool Automated email and instant messaging Broadcast messaging Analytical tools Predictive analysis and data mining Task scheduling tool Clear vision of activity completion in WBS Current and future workload Table 3: Techniques for ERP Implementation Source: [14] Quality Total Quality Management During the project life cycle, Total Quality management (TQM) will be ensured if all the stakeholders are made aware of the business case. Stakeholders will consist of company executives, consultants, vendors, IT team, sponsors and external agency. Project success metrics will be set according to key success indicators. Business case will be supported by IT technicians from different agencies who will give the best management determinants. Each activity from WBS has to be completed and then next activity will commence. Quality Assurance With each stage of project life cycle, gap is projected. Amount of resource and functionalities are to be justified. Quality assurance will be justified at the time of testing the project by the consultants. Gap of the project can be minimized if each of the activities are looked after just after the completion. Figure 6: Gap Analysis Source: [15] Quality Control Project can be controlled by ERP models, Artifacts and Processes. Central standards need to be defined so that importance of operating life is justified. As the organization operates on cash basis, hence it need to move on to accrual-based practices for accounting, which will change the chart of accounts. Documents and reports related to artifacts are to be provided in weekly basis so that the progress can be tracked. Human Resource Management At present the organization is completely dependent on unitary business processes where all the departments are differentiated. Manual data input is followed and thus, Information Technology team needs to be incorporated. The key players for the project are: Key Players Key Activities Project Champion Team Acceptance of technology and incorporating strategies in the organization Top Management User education and training Consultant Implementation Project management Steering Committee Selection of appropriate package Project Team Customization Vendor participation Data conversion and analysis Change management Business process education Interdepartmental communication Table 4: Human Resource Management for ERP Implementation Source: [16] Steering and consultant team will have to be hired from other agencies who will select the appropriate package of ERP. Key Resources Key Resources Explanation Human Resource IT team Project Consultants Steering team Security team Departmental team Operational team Vendor Project Champion Team System Requirement Software Cloud based server (SAAS) Fitrix ERP License Linux Server Red Hat Enterprise Series SUSE CentOS Ubuntu Debian Hardware CPU: Pentium 4 CPU Speed: 2.8Ghz RAM 16 GB Processor: 64 bit Disk: 128 GB SATA Network Card: Ethernet (10/100/1000) Finance System Requirement $ 5,00,000 (Total cost) Maintenance and testing 20% of total cost IT Team 30 % of total cost Table 5: ERP Resources Source: [17] Organization Chart The steering committee will be responsible for ERP implementation, and thus the organizational chart is below: Figure 7: Organization Chart Source: [18] From the organization chart, it can be understood that steering committee will hold the complete project consisting of project manager and change management committee. The Project Champion Team will be for change management committee. Costing and accounting will be determined by product fabrication. Each of the vital departments such as marketing, accounts, inventory and logistics will have communication with ICT team and consultant team so that most flexible framework is achieved. Communication Plan Deliverable Info (What) Recipients (Who) Delivery Method (How) Schedule (When) Who is responsible Project Information Project Team Conference Calls Team Meetings SharePoint As needed Project Manager Project Status PMO Director Project Planner Email ePortfolio By 4pm every Monday By 12 noon every Wednesday Project Manager Agenda/Minutes Steering Committee Project Team Team meetings SharePoint Email Monthly Project Manager Timeline Update Executive Sponsor Mtgs Steering Committee SharePoint Meetings As needed Project Manager Project Updates Project Manager Conference Calls Team Meetings SharePoint As needed Project Team Project Risks Executive Sponsor Project Team Steering Committee Meeting Minutes Risk Documents As needed Project Manager Table 6: Communication Plan for ERP implementation Source: [19] From the above it can be identified that each of the deliverables will be communicated to the project manager. Project manager will stay in touch with the project requirements and key resources in accordance to activities in Work Breakdown Structure. Preliminary requirements will be done by conference calls and team meetings and SharePoint technology. Intermediate mails and ePortfolio will be generated for each of the members of project planner[20]. Once in a week report will be delivered to the manager and necessary communication will be done through the portals. Steering committee will create individual employee portal through which necessary communication will be done at the training and testing schedule so that any faults are identified immediately. Meeting minutes, test documents, team meetings, conference calls, emails and reports will be the mode of communication[21]. Milestone and Deliverable Figure: Milestone deliverable of ERP implementation according to timeframe Source: [22] The whole timeframe has been divided into 6 parts, and each part denote 6 months. From project planning to testing and training has been delivered for the total time frame of 3 years. The milestone and key project deliverables that can be understood from the above diagram are given below: Serial Number Key deliverables Explanation 1 Project and subsidiary plan Determination of project objective and scope 2 Kickoff presentation Provides the signal for starting the implementation and execution after approval from organization 3 Training courses for team Preliminary teaching of ERP course and system to the existing employees of the organization 4 Scenario list of business Each of the processes of the department is processed 5 White paper blueprint Each of the departmental operations are documented 6 Issues and gaps database Differences between calculated and projected outcome are ascertained, which helps in determining pertaining issues 7 Change management plan User skill upgradation is done by project team so that employees become flexible with the installation of new system 8 Presentation walkthrough Departmental business processes are presented that consist of marketing and sales, accounts, inventories and logistics 9 Scenario script Detailed instruction of each of the business scenario is displayed so that project manager gets to know about the project progress 10 Training courses for user The ERP application details and new operating methods are explained to the employees so that least error is expected 11 User documentation Each of the project deliverables are combined into one particular document in a form of report 12 IT specifications The detailed interfaces, customizations and special projects are displayed to the project manager 13 Migration Plan Mapping out tasks and legacy data entry for conversion will be done 14 Cutover plan Tasks of final week will be documented Table 7: Key deliverables of ERP implementation Project Source: [23] Business Risk The organization currently falls under SME and thus, with the implementation of ERP several risks may happen. Project Management The organization may fail to have timely decision making capability by the top management. Lack of initiative, slow decision making and insignificant communication among the stakeholders such as IT group, executive management and business owners may result in project risk. The project management office (PMO) selects the steering committee but often it is found that the members do not know about their responsibilities and information of the organization[24]. This may fail the ERP project management, leading to a huge loss of business. For the concerned organization, such risk is moderate and can be mitigated if the top executive gains motivation and initiative to implement ERP. Project Schedule and Plan Most of the ERP implementation projects fail because of improper timeframe and schedule[25]. For this organization, the whole timeframe has been divide into 6 parts, which is enough, but some of the activities are too much interdependent in WBS. This may delay the activities making the project more complex and resource consuming. The impact is huge for Kohler, as it may run out of resources and can be mitigated if number of staffs in steering committee is increased. Change management This organization is hundred years and most of the employee are old enough to understand the new automated system. Such advanced change may not be suitable for the employees, which may incur a huge loss for the organization. The severity of the risk is high and can be mitigated if new employees are recruited. New employees will be divided into each department who will stand for the organization future. Cutover Cutover indicates shutting down existing system prior to the ERP go live. Many employees will be deployed and new staffs will be added. This is moderate risk for the organization as it may not have the support of old employees and historical methods of handling the critical situation. This risk can be mitigated by extending the cutover time. Conclusion From the project management, it can be concluded that for a SME, Enterprise Resource Planning is vital for its sustainability. The organization needs to incorporate infrastructural change and for that system automation will help in best possible way of communication. From inventory to distribution, the production cycle will be enhanced leading to more sales and a competitive strategy in the industry. On the other hand, the organization will need to incur some risk related to finance and human resource. The timeframe is of 3 years, which is sufficient, but the WBS activities will have to be processed out efficiently so that project is accurately managed by all the stakeholders. 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