Alitalia Airlines: Financial Crisis Management

Alitalia Airlines: Financial Crisis Management Crisis survival for Alitalia:  Strategy re-evaluation for its continuous  viability in the medium and long term. Contents (Jump to) Introduction Alitalia Management Re-focusing Alitalia Recovery Conclusion Bibliography Introduction Based out of Rome, Alitalia is the national airline of Italy which was founded on 16 September 1946 under the name ‘Aerolinee Italiane Internazionali’ and is known as ‘Linee Aeree Italiane S.p.A. (Alitalia, 2006). Alitalia is 49% owned the Italian Ministry of the Treasury, other shareholders, which includes its employees at 49% as well as Air France – KLM which holds a 2% stake (Alitalia, 2006). As the leading airline in the country, Alitalia flies to more than 100 locales from its hubs in Milan and Rome, utilizing a fleet of 175 aircraft (Hoover’s, 2006). A major factor t be remembered and considered throughout this analysis and examination that Alitalia is a state owned airline and history has shown that the large staffs, inefficiencies, lower productivity and higher operational costs associated with such institutions makes them uncompetitive when matched against private industry. That legacy befell the fates of Sabena, Swissair and saw KLM Royal Du tch Airlines become an acquisition by Air France in May of 2004 (BusinessWeek online, 2004). The liberalisation of the European airline industry was the beginning of the downward spiral for the indicated airlines as the process, as deregulation entails the removal of government restrictions which opened the domestic markets of all European Union countries to any company in Europe (Badi et al, 1995, pp. 245-59). The process of deregulation increased competitive levels in the industry thereby promoting heightened productivity, increased efficiency and lowered prices as markets were pen to the laws of supply and demand. Under the deregulation process implemented by the European Union, legal monopolies as well as government aid for carriers disappeared, and aid reduction was supplanted by public funds, with most airlines finally becoming privatized (Ng and Seabright, 2001, pp. 591-619). Thus, the open sky policy, as it is termed, caused European airlines to restructure the manner in which they conducted business internally, through improving efficiencies as a result of direct competition. The main strategy that has arisen from the preceding has been the increasing of productivity. The emergence of the low cost carriers as a force in the industry has created additional pressures for the traditional full service airlines. The low cost carrier model of no frills, utilization of secondary airports and concentration on lower ticket prices has shaken the underpinnings of the traditional full service carriers which took off in Europe after the events of September 11th which generated a global melt down thro ughout the industry. Prior to deregulation, the national flag carriers, such as Alitalia, were supported by monopolies, legal, and were dominant throughout the European community (White, 1979, pp. 545-73). Airlines during that era shared intra European routes as a result f bilateral agreements and the airlines companies were primarily owned by governments with their losses underwritten by public funds (White, 1979, pp. 545-73). This structure left little incentive for bottom line accountability, productivity or innovation, a situation which aptly describes Alitalia, and this atmosphere served to shape the company’s operational and management culture as a job with Alitalia was decidedly plush and devoid of the usual performance standards. Today’s market has seen a shift to where almost all of these carriers have been privatized, with the disappearance of the corresponding government aid, and the legal monopolies have disappeared. Alitalia has always been a plodding governmental type airline operation, burdened with over staffing and low productivity. Examples of the foregoing can be found in the fact that Alitalia pilots average less than 500 flying hours per year versus the industry average f 600 to 700 for most carriers in Europe (BusinessWeek online, 2004). Half of the company’s fleet consists of high maintenance McDonnell-Douglas airframes that cost twice as much to operate than the newer more efficient airframes resulting in what analysts estimate as operational costs that are between 30% to 40% above the industry norm of other European Flag airlines (BusinessWeek online, 2004). The historical summary of the airline climate in Europe prior to deregulation, and the nuances of the monopolistic environment surrounding the flag carriers is an important background variable in understanding the manner in which Alitalia evolved, and the underpinnings of its organizational and cultural structures. Indicative of the waste which is prevalent in the company, as indicated by the examples of pilot flight hours and the age as well as composition of its fleet, is that the crews for the Milan hub live in Rome and commute via the airlines flight to work, occupying on average 60 percent of the seats on the morning flight (Business Report Independent Online, 2006). The preceding example along with the other samples of waste serves to illustrate the spending and lack of fiscal accountability at the carrier. Also at fault, as a main contributor to the operational waste the airline generates, is the political climate of the country and how it impacts on the carrier. As a governm ent controlled entity â€Å"Alitalia has always been a place where politicians could get their people hired †¦Ã¢â‚¬  stated Allessandro Frigerio, fund manager for Pigoli Consulenza (Business Report Independent Online, 2006). This type of mentality says more about the climate the company operates in than any other, thus over staffing is a natural outgrowth. The preceding represents the historical corporate culture setting which prevailed during the industry shaking events of September 11th. As a result of the foregoing that date is utilized as a starting point for the discussion of the company’s financial situation. In revisiting this date, it must be remembered that the global economy was in the throws of a recession. The United States economic slowdown was pegged in March of 2001, and Japan along with Germany exhibited nearly zero growth (Drakos, 2002). The foregoing was the economic stage upon which the events of 9/11 transpired setting off shock waves in the global economy, inhibiting both leisure as well as corporate travel as a result of fear and the recession. The last year Alitalia recorded a profit from operations was in 2000, and the company has been unprofitable for 11 of the past 16 years (Business Report Independent Online, 2006). In 1999, Alitalia registered a net income of â‚ ¬380 for each of the companyâ€℠¢s 20,770 employees as compared to losses of â‚ ¬23,400 for each employee in 2003 (Business Report Independent Online, 2006). The aviation industry lost an estimated $25 billion since the eventful date of 9/11 through 2003 and airlines have reacted to the economic realities by laying off in excess of 100,000 employees as well as remove an estimated 700 airframes from service to cut costs (Amos et al, 2004). The culture of Italy is adverse to shedding employees as a cost cutting measure, as evidenced by a 1970 statute that requires any business with more than 15 employees to appear in court to justify any layoffs or firings, failing that, company’s would have to rehire said workers and compensate them up to three months in lost wages (Bloomberg.com, 2004). In response to the economic crisis prompted by the global recession and the events of 9/11, the then Chief Executive Officer of Alitalia, Francesco Mengozzi announced a plan whereby 1,200 jobs would be outsourced to effect economies in operations, and an additional 1,500 jobs would be cut, with wage scales frozen. The preceding action resulted in th e company’s unions initiating three strikes, one of which resulted in the cancellation of half of the airline’s flights, upsetting the plans of more than 18,000 customers (BBC News, 2004). The layoff plan was an attempt by management to cut costs in an effort to head the company back towards profitability and possible privatization, as well as a potential alliance with Air France and KLM Royal Dutch Airlines (BBC News, 2004). The Italian government led by Prime Minister Silvio Berlusconi fired Mengozzi and replaced him with Marco Zanichelli who subsequently put forth a plan to either fire or contract out a total of 3,300 jobs. That recommendation also got Zanichelli fired, paving the way for the installation of Giancarlo Cimoli as Chairman and Managing Director. The problems created as a result of the global economic slowdown and the events of 9/11 were further exacerbated in Europe by the introduction of the low cost carrier business model, which was based upon the successful concept utilized by Southwest Airlines in the United States (Southwest Airline, 2006). Companies such as Ryanair have successfully entered the Italian market and accounted for 45% of the flights originating in Italy in 2002, which increased to 51% in 2003 and rose to 66% in 2004 (Business Report Independent Online, 2006). The low cost model has proven to be a successful concept in that southwest Airline in the United States has rem ained profitable throughout the recession and events of the recession of 2001 as well as 9/11 and subsequent events, while in Europe easyJet, Ryanair and other low cost carriers have been expanding at the expense of flag carriers such as Alitalia (Drakos, 2002). The European airline market differs from the American airline industry fundamentally in the areas of their respective regulatory histories as well as the smaller size of their carriers (Ng and Seabright, 2001, pp. 591-619). Baumol et al (1981, pp. 231-56) advise that corporate theory to address the effects of reduced earnings owing to adverse economic and or competitive conditions is to utilize the conditioned demand function with defines the operation of cost functions. This states that the reduction of costs and implementation of diversification and innovation are solutions to be addressed in such circumstances. The failures of Alitalia in effectively implementing such measures over the past 16 years, along with the company’s corporate culture, unions and the political climate of the country have hampered all efforts to return the company to profitability and compete with rivals. Prime Minister Silvio Berlusconi has stated that the airline â€Å"†¦ has twice as many wo rkers as necessary and this has been something that has been inherited from the past †¦Ã¢â‚¬  (Bloomberg, 2004). Berlusconi when on to add that it is difficult to cut costs at the carrier â€Å"†¦ because any cuts provoke the kind of reaction from unions and workers †¦Ã¢â‚¬  (Bloomberg, 2004) that result in strike and work stoppages. The preceding effectively indicates the reasons behind the financial crisis facing Alitalia presently: an oversized and unproductive work force that resists management actions to implement measures to cut costs, a company as well as political culture that is still rooted in policies of the pre deregulation era, a lack of response to the inroads of changes in the airline industry as marked by Emirates and Singapore airlines that emphasis customer satisfaction and service, as well as a failure to respond to the inroads and profit generating models as shown by the low cost carriers Customer opinions regarding the company are reflected in the Skytrax survey of 2005, which reveals the following on varied areas: Table 1 – Alitalia Customer Survey Comparison (Skytrax, 2006) Legend 5 stars = Excellent 4 stars = Good 3 stars = Fair 2 stars = Poor 1 star = Very Poor The preceding indicates that while unprofitable, the staff at Alitalia is performing at levels that are comparable to one of the world’s acknowledged best airlines, Emirates, and at a level that exceeds Ryanair, the market leader in passenger flights in Italy. Dealing with the aftermath of the economic events of 9/11 and the new competitive market will require the company to make changes in the manner in which it does business internally to enable it to cut costs and offer product route that are profitable. Alitalia Management The effects of deregulation and the introduction of the low cost carrier model in the airline industry has changed the context of management within the industry in Europe. The state supported monopolies and subsidies as well as the protectionist climate has given way to a true business model whereby the cost of the product to reach destinations represents one of the most important considerations. As shown via Table 1 Alitalia Customer Survey Comparison, the company compares favorably with Emirates Airline on service and score well ahead of Ryanair in all facets, yet Emirates is regarded as one of the best carriers in the world, and Ryanair has accomplished the feat of securing 66% of all passenger departures in Italy. These facets point to operational modes regarding overhead as the key reasons for the company’s dismal earnings and profit performances. Delfmann et al (2005, p. 20) advise that the â€Å"†¦ the most spectacular growth over the last 20 years among all tran sport sectors has occurred in aviation †¦Ã¢â‚¬ . This contrasts to the 11 years of unprofitable operations shown by Alitalia over the last 16 years. Delfmann et al (2005, p. 20) add that â€Å"†¦ increasing competition between network carriers has been given added impetus by the emergence of new, low cost carriers†. This climate has provided passengers with a wider array of destination choices, timetables and prices from which to select. As a fiercely competitive business, to prosper and survive in the airline industry, carriers must address the factors which prompt passengers to fly as well as streamline internal operations to reduce costs so that they can trim ticket prices. This model has proven successful in the low cost segment, and also has served the full service carriers in working their way back to profitable operations. Ryanair has captured a huge segment of the departures from Italy by adherence to these principles, which Krzos et al (2003) refer to as the application of knowledge management skills to define the key aspect of operations and thus focus on getting said areas up to and exceeding industry standards. Knowing what the problems are is the first step to devising solutions, and the application of knowledge management skills such as (Krzos et al, 2003): Flight Scheduling Pricing Support Services Crew and Staff Scheduling Represent internal key to aid in competitiveness. Flight scheduling represents charting and understanding the departure, arrival and destination preferences the market has and is showing and responding to these patterns through the arrangement of flights to met this demand (Krzos et al, 2003). Pricing represent a function of internal operations and efficiencies whereby waste, over staffing, and productivity impact on operating expenditures and the reduction of these costs permits reduced ticket pricing. The preceding brings up the issue of support services and crew / Staff scheduling which are personnel, policy and corporate culture problems at Alitalia. McAfee and te Velde (2004) indicate that the utilization of yield management is an important set of strategies that increase profits through the understanding of metrics in industries such as airlines. Yield Management is helpful when a product has two important characteristics (McAfee and te Velde, 2004): The product has a pre-set expiration at a definitive point in time, as evidenced by hotel rooms, airline tickets, and or time-dated products, and the capacity for same is known and fixed in advance and can only be changed at a high cost McAfee and te Velde (2004) state that forecasting the preceding utilizing present sales, competitive data, overall demand and forecasting provides companies with the ability to vary elements of their fixed cost, such as staffing, equipment, and facilities to put these resources to work at where they will meet the supply demands and reduce waste. The application of yield management has shown results for American Airlines which generated an additional $500 million through the application of this technique. Bieger and Agosti (2005, pp. 41-64) advise that management needs to be cognizant of and focus on: asset utilization, such as facilities, fleet costs, landing charges, handling charges and pro-rating of tickets, increased utilization of low cost subsidiaries to take over operations where the market model indicates a better fit with a division within the company, understanding the operational cost of fleet dynamics, fuel and operational costs of equipment alliance strategies for key business areas, staffing, airports These core business areas, with respect to the airline industry represent the means via which to focus operations on profitable business generation and reduced internal costs to maximum returns. Alitalia’s management practices have exhibited operational aspects that have run counter to the preceding management theory applications. The most obvious hamstring on management operations is a result of the government appointment of top management staff. Such an example is provided by the appointment of Giuseppe Bonomi, who served as Chairman for one year, and was an ally of Prime Minister Silvio Berlusconi, and a member of his Northern League separatist party (Business Report Independent Online, 2006). The problem of political influence has helped to create the company’s choice of a poorly performing fleet which consists of U.S. made MD80 and Boeing airframes that were purchased â€Å"†¦ to please the Americans †¦Ã¢â‚¬  as stated by Oliviero Baccelli, a professor who teaches at Bocconi University in Milan (Business Report Independent Online, 2006). The preceding fleet choices are coupled with Airbus airframes and ATR planes thus creating a highly divers ified fleet which increases ground maintenance, crew training, staff familiarities and inventory problems, having a tremendous upward effect on costs. Baccelli summarizes the preceding mix and match of differing airframes by stating that â€Å"Alitalia has always been managed with diplomatic goals in mind†, a view that is also shared by Marco Ponti, who serves as a professor at Politecnico University, who stated â€Å"Political interference has led to choices to please special interests and not the bottom line† (Business Report Independent Online, 2006). This type of climate has hampered effective operations and efforts on the part of management. Further examples of the preceding as shown as follows (Bloomberg, 2004), (BusinessWeek online, 2004).: The company’s unions have indicated that areas such as contracts for purchasing, as well as commercial costs have been excessive over the past ten years. Through renegotiating contracts the company would stand to gain an estimated â‚ ¬200 million yearly which represents approximately ten percent of costs as represented by areas such a food, fuel and the costs of maintenance. The company either needs to add routes to fully engage its over staffed operations or trim its workforce to match the level of flights. The multi airframe problem is illustrated by a cancelled flight from Malpense to Palermo in June of 2004 as a result of the fact that a replacement tyre could not be found. The politically charged investment in the airport at Malpensa which does not have any highway or fast train links to Milan. Despite this fact, Alitalia increased the size of its workforce at the airport by seven percent in 2001 for additional ground staff which were mostly idle due to reduced flights. The preceding illustrate the inefficient operations as well as limitations and political influence that have helped to hamper management’s efforts in the face of applicable management theory and operations germane to the industry. Re-focusing Alitalia The preceding events and long history of inefficient operations resulted in the appointment of Giancarlo Cimoli as Chairman and Managing Director of Alitalia. The situation had become so dire for the company that Cimoli stated that he had plans calling for splitting the company into two parts and to cut 5,000 jobs as a tactic which got the attention of unions who had effectively blocked all job cutting efforts in the past † (Business Report Independent Online, 2006). The tactic has apparently worked as the company and the unions, along with the government have agreed to a series of agreements that were signed in May of 2004 that paved the way for guidelines for the company’s restructuring plan (Alitalia, 2004). The â€Å"Director’s report on the activities of the Alitalia Group and Alitalia Linee Aeree Italiance S.p.A. in the first six months of 2004† stated â€Å"†¦ it has been clear for some time that the grave financial and profitability crisis th e Company finds itself in requires a prompt change of approach†. This sobering thought is seemingly back up by sweeping changes as contained in this plan, which are as follows (Alitalia, 2004): A ‘Bridge Loan’ amounting to â‚ ¬400 million the company as guaranteed by the Italian Government under EU regulations to enable the company to meet its fiscal obligations through March of 2005. The business plan for the period 2005 through 2008 devotes itself to the creation of conditions that will result in a rapid and sustained return to profitability, utilizing restructuring as a means to increase efficiency and set the stage for what the company terms as a re-launch in 2007 as represented by more favorable economic, market and business conditions. Said plan calls for: the moderisation of the company through the restructuring of procurement contracts for fuel, food, maintenance, general purchases and all commercial activities. A major re-launch and restructuring of the following: Restructuring of the two hubs in Rome and Milan to provide increased company exposure and the lack of adequate use of assets. This area is meant to respond to the inroads of Ryanair that holds 66% of departures from the country. Increase of flights and attractive routes to stave off competitive inroads Improvement of the company’s airframe fleet to remove aging aircraft and provide a smoother mixture of maintenance and parts inventory via a reduction of model types. Reposition and improve the brand name to exploit its ?Italian Style’ by focusing on customer satisfaction and improving services to improve public image. Restructure the pricing of products, yield management techniques, through an overhaul of the fare structure and change in pricing procedures to meet competitive innovations. Upgrade the use of technological innovations such as the Internet to sell tickets and provide customer information in keeping with the Internet oriented practices of the low cost model with has proven to be user friendly and used by customers in securing tickets. Redesign of the support and operational activities in flight as well as procurement and operations. Enhance the airline’s positioning in the European as well as Italian market to defend the company against inroads from rival carriers and then to aggressively pursue the acquisition of increased market share through winning back demand and use by Italian passengers as well as Europeans. Cimoli implemented the creation of AZ Fly, which handles the core business activities of the company as represented by (Alitalia, 2004): Marketing and Network, Flight Operations Sales and Distribution, Product Integration and Delivery, Cargo, Specified Corporate activities, and the Governance of activities constituting this new subsidiary In addition, Cimoli created AZ Servizi which will handle (Alitalia, 2004): Engineering and Maintenance, representing engines, allied components and engineering services, As well as ground handling, ICT, Sale of services as well as products to third parties, Shared services such as Administration, Planning and Control, Human resources, Centralized Business Services, and Call centers Cimoli’s plan divides the airline’s operations into external (customer, flight and related public activities), and internal operations to split the union’s influence and thus make each service or operational center accountable for achieving operational goals. This technique is described by Delfmann et al (2005, pp. 65-96) as consolidating the business model and shifting the orientation of the business to customer centric operation (Delfmann et al, 2005, pp. 97-117). Recovery The global economic recovery has aided in Alitalia achieved measures of success n its restructuring plan. The following list the areas that the company has achieved since Cimoli’s plan was implemented: The company trimmed its losses in 2005 to â‚ ¬167.5 million from the â‚ ¬858 million it lost in 2004 by the spin off of divisions indicated in the Director’s report on the activities of the Alitalia Group and Alitalia Linee Aeree Italiance S.p.A. in the first six months of 2004, which contained Cimoli’s restructuring plan. The preceding has not been accomplished without clashes with the company’s unions over job cuts that have reduced labor costs by close to one third. In addition the company’s revenues increased by twelve percent to â‚ ¬4.797 billion, and increased passenger traffic by eight percent over 2004 levels (BBC News, 2006). Implemented the cut of 3,700 jobs, representing an estimated one sixth of the workforce thus amounting to â‚ ¬280 million in savings (USA Today, 2004). The acquisition of Gandalf Airlines, a regional carrier that is based out of Orio al Serio Airport in Milan that flies jet as well as turboprop planes to such destinations as Barcelona, Bari, Madrid, Paris, Milan, Catania, Brescia, Pisa, Stuttgart and Verona. This move enabled Alitalia to gain access to additional slot facilities at a number of European airports and helped to increase passenger traffic (Alitalia, 2005). Reduced fuel costs in 2005 by 10% (Alitalia, 2005). Reduced sales cost to 13.5% in 2005 from 17% in 2003 (Alitalia, 2005). Increased Internet ticketing to 49% in 2005 from 11% in 2003 (Alitalia, 2005). Increased personnel productivity by 43.4% (Alitalia, 2005). Increased passenger traffic by 7.8% over 2004 (Alitalia, 2005). Increased passenger traffic revenues by 11.3% over 2004 (Alitalia, 2005). Increased pilot productivity by 12% over 2004 raising pilot flight hours to 563 from 504 (Alitalia, 2005). Increased the medium and short haul fleet utilization turnover by 15 minutes in 2005 over 2004 (Alitalia, 2005). Increased revenues by 11.6% to 4.797m euros from 4.299m in 2004 (Alitalia, 2005). Decreased operating costs by 2.9% to 4.537m from 4.674m in 2004 (Alitalia, 2005). Reduced the losses to 168m euros in 20

Gangs Research Paper Essay

Gangs have produced a culture of their own; surprisingly similar to many other groups in mainstream society. Religious, political, and special interest groups can all be compared to gangs and their ideology. Typically, groups are born through a shared idea or goal by similar individuals. Many ideas may be radical or may not follow the â€Å"norms† set by mainstream society. Conflicts between groups are neither rare nor uncommon because of the simple fact that not all ideas will be shared by everyone in society. In history, the basis of many wars has been mainly caused by religious differences. A similar comparison can be made between gangs and the other members of society. Different groups in society have different ways of achieving a variety of set goals such as money or status. Gangs do not have the same means of achieving wealth, happiness, respect or social status as mainstream society does. These ideas of innovation are a result of gang members rejecting socially accepted means but accepting the ends or set goals. Deviant behavior has developed in gangs because of their way of obtaining money and status. Mainstream society has set the example that a â€Å"successful† individual in life will conform to the idea that many years of education will lead to a career which will essentially provide a steady income. In theory, gangs resort to violence and criminal activity because of their rejection to socially accepted, mainstream goals. For example, as the unemployment rate increases, research has found that property crime increases as well. Gang members, as mentioned by Bobrowski’s studies, contribute mostly to Part II offenses such as property crime. In addition, Reiner mention’s that one of the three realities of life that drive gang crime is unemployment. With this evidence we can conclude that there is a positive correlation between gang crime and mainstream issues like unemployment rates. In conclusion, we can see how gangs are seen as a problem in society because of their lack of conformity to social norms. The prevalence of gangs Gangs have played a significant role in the criminal justice system and society overall. These groups overwhelm in numbers, according to the United States Department of Justice there are an estimated 800,000 members in over 24,500 gangs spread out over 3,300 jurisdictions. While most gang crimes occur on the streets, a 2006 survey conducted by the â€Å"National Gang Crime Research Center,† out of 212 U. S. schools, 25% of American schools reported a gang shooting near their school in the past year alone. In a more broad sense, gang activity was reported in more than half of state and local law enforcement’s jurisdiction. Most, if not all, gangs have been born in or around a big city like Los Angeles, California. These gangs root from these major cities but, often they â€Å"franchise† or branch out to increase in numbers. The relevance of theoretical explanations of gang behavior There are a myriad of theories that have been created to attempt to explain human deviant behavior related to gangs specifically. These theories are categorized according to their discipline; biological, sociological, psychological. Generally speaking, there are a number of theories used when analyzing criminal and deviant behavior such as: labeling, deterrence, anomie, strain, social learning and self-control theories. There are also classifications or levels of theories such as: systems, social and individual level theories. Criminal theorist and researchers join forces in an inductive process, in which they interpret quantitative data, make empirical generalizations then finally produce a theory, leading to a factual-based hypothesis. The emergence of criminal theories is extremely important, especially when attempting to explain gang crime. Given these assumptions, we can scrutinize theories carefully and develop policy implications to improve the criminal justice system. Different theories explain the wide variety of factors that contribute to deviant behavior within a gang. For example, the â€Å"labeling theory assumes that formal labeling of offenders motivates them to take on more serious criminal careers† (Criminological Theories 158). In addition, some theories such as strain theory explain how social â€Å"strain† or stress is experienced by an individual when they accept society goals but, experience blockages while attaining those goals. A theoretical explanation of gangs and gang crime Closely observing the strain and anomie theory we can see that it explains how gangs create their own socially disapproved means to obtain the goals that are promoted by mainstream society. Strain and anomie theories are complementary even though, strain theory is in the individual level and anomie theory is in a social level theory. Strain such as unemployment rates, housing availability, economic instability, and lack of educational opportunity enhance gang behavior in one way or another. Robert Merton explains 5 goals of adaptation to strain and these are conformity, innovation, ritualism, retreatism and rebellion. When analyzing gangs we classify them as innovators. They seek the approved goals society has publicized, yet they create a new way or new means to obtain that goal. Mainstream society and law abiding citizens accept the means they are given to obtain the ends that are promoted; this is considered conformity. Essentially anomie/strain theories, as stated in Criminological Theories, â€Å"perceive blocked goals as producing deviance-inducing strain. Gang members are typically lower-class members of society and as result, there is a lack of resources available. This strain will cause gang members to become deviant separating them furthermore from the middle and upper classes. Separation and peer rejection are other elements in strain theory even though there has been weak correlation between these deviant behavior and peer rejection. In addition, a big component evaluated in strain theory is the perspective an individual has towards the stressful event. The event must be seen as unjust and high in magnitude in order for the individual to act upon the stressful event in a deviant matter. For example, if an individual loses a close relative due to a gang related murder; the strain will be of greater impact than if the individual experienced frustration in school. In this case there is great probability that the individual will resort to gang violence. A review of the research on the theory’s viability Research supports general strain theory and prevention programs involving family therapy strengthen Merton and Durkheim’s theoretical contributions. Delinquent gangs continue to be concentrated in lower class and minority neighborhoods and empirical research has been consistently finding positive correlations between gender, social class and deviant behavior. These variables are important to analyze when researching gang crimes because they are unarguably causes of strain to individuals. Members of lower socioeconomic class will almost always innovate new, usually illegitimate, means to achieve the goals set by society and data gathered throughout the years has proven this statement. From Durkeim to Merton and, most recently Cohen, and Cloward and Ohlin, have all improved upon strain theory with research data and facts. Conclusion and recommendations I personally believe that the strain/anomie theory has very strong points, even though; I see no concrete separation between strain and anomie. Many argue these as two separate theories but, I see one large, information-packed theory. It can be overwhelming analyzing so much possible explanation for gang behavior and strain/anomie theory adds on to the bombardment of possible justifications. Fundamentally speaking, strain/anomie theory explains the different paths individuals take and what stressors affect them along the way. Many stressors affect individuals in a different way. Not all minorities and lower class members will deny legitimate means to obtain certain goals such as, not all gang members are searching for the same goal law-abiding citizens are. I believe policy implications arising from strain/anomie theory are more closely related to other theories like social bond theory and self-control.

The British Culture

People can generally identify themselves as part of a larger culture, which means that they hold many of the same values and beliefs as those around them. But they might not be aware of being part of one or more subcultures. These exist within the larger culture but are marked by differences. A subculture is a group of people who are part of a larger culture, but who separate themselves by their own unique beliefs and behaviours. In the 1950s David Riesman, a United States sociologist, distinguished between the majority that passively accepted the styles, standards and meanings given to them and a minority. This subculture sought its own meanings of things, interpreting them in what Riesman calls â€Å"subversive values. † Culture sociologist Sarah Thornton believes that subcultures raise their status through their subculture so as to differentiate themselves from other groups. Ken Gelder states that subcultures are very social, sharing conventions, values and rituals with those in their subculture even if they do not share those values with the greater culture, in the following research; we will see all the different British subcultures which make the United Kingdom one of the richest cultures in the world.. The England culture: It sometimes becomes difficult to separate the culture of England from the influences of the culture of the United Kingdom. England Culture has come along way and has developed over several millennia, to recent movements such as Brit Art and now encompasses a variety of forms which include photography, painting, sculpture and performance art. Cuisines of England also influence the England culture to a great extent. The urbanized workers of England were in many cases cut off from regional food traditions as the country was the first industrialized country of the world. More recently, a new style of cooking called Modern British has emerged that combines traditional British ingredients with foreign culinary influences. English folklore that has evolved in England over a number of centuries is yet another aspect that influences the Culture of England. England thrives with folklore in all forms such as the traditional semi-mystical Arthurian legends and semi-historical Robin Hood tales, to contemporary urban myths and facets of crypto zoology. Culture of England is lame till we include the heritage of the country as it is massively affected and influenced by it.  Also you can read about  History of the Culinary Arts. In recent years, Stonehenge has become a focus for modern summer solstice celebrations. Though the Stonehenge pre-dates the existence of England as a nation, it is believed by many English people to hold an iconic place in the culture of England. English literature has been made rich by the famous works by the popular writer of the past like William Shakespeare, Charles Dickens, Thomas Hardy and many more. Just like literature, English music has been instrumental in influencing the England Culture to a large extent. Talking about food, there are few food-related taboos in England. Some of the English avoid some foods for so-called hygienic reasons, such as onions and leeks, which can cause bad breath. There are also some types of foods that are considered uncivilized. Traditionally, the people of England have never eaten horses, dogs and other carnivores or insects. Slowly, the eating of meat is looked on as uncivilized. As part of the shift away from meat toward fruit, vegetables, and fish, people have become more distanced from the production of the meat they eat and less willing to eat as wide a variety of meats. The Scottish culture: The Culture of Scotland will give you a glimpse of the rich historical past of the country. Scotland is a nation which is well positioned in the north-west part of Europe. Scotland also beautifully shares a border with England. It is bordered by the Irish Sea and the North Channel to the southwest, the North Sea lies to the east while the north and west part of Scotland is bordered by Atlantic Ocean. The Culture of Scotland is influenced by the residents of the Scottish Highlands who basically belong to the Celtic descent. To the Southern part of Scotland, the residents are Scots with little bit of Nordic and Anglo-Saxon influence. The people of Scotland have a love for learning. If we look at the history of Scotland it is found that their history is full of educated persons who acquired university educations. In the beginning of the 20th century, Andrew Carnegie who was the Scottish-born American industrialist made education easy. In the Culture at Scotland, we can find the celebrations of Hogmanay, which is basically the celebration of to mark the beginning of New Year. In the Culture of Scotland, there is the tradition of taking out Torchlight Parade in Edinburgh. People take part in the Torchlight Parade which is held on the 29th December on each and every year. The people taking part in this parade carry wax torches and walk on foot through the popular streets of the city. The Hogmanay street party organized on New Years Eve last for three nights. We can also find the celebrations of Christmas like that of any other European countries. People take part in Christmas celebrations with great pomp and glory. During this period people go to churches and arrange gala lunch and dinner parties for ones friends and relatives. There is also many Scottish celebrations, one of them is the Burning of the Clavie which celebrates the New Year, old style, which falls on 11 January (unless 11 January is a Sunday, in which case the celebration is held on 10 January). The Clavie is a half-cask, mounted securely on a pole, and filled with staves of wood and inflammable liquid. If we are interested in the Scottish food, the region has a very distinctive cuisine that is usually based on traditional foods. Food of Scotland mainly comprises of the Scottish foods. Food of Scotland is really mouth-watering which will positively satisfy your appetite. Some of the popular traditional Food of Scotland that you can try out while on a tour to Scotland is: -Scottish Beef: The beef cattle belonging to Aberdeen Angus breed reared in Scotland. Steaks made from these cattle beefs are really very tasty. Bannocks or Oatcakes: This dish is an oat flour biscuit that is baked on a griddle. Nowadays people usually prefer to sample bannocks with cheese. The culture of Wales: The nation of Wales is a major part of United Kingdom but the Culture of Wales is quite distinct from the rest of England. The nation of Wales is known to preserve its own distinguishing culture, language, art and music. The national emblem of Wales includes leek and daffodil. The Welsh Dragon is a significant part of the Culture of Wales. The country of Wales is extended 274 kilometers in the north to south and about 97 kilometers east to west. The eastern side of the country of Wales is bordered by England, the southern side is covered by the Mor Hafren or the Bristol Channel, the western side has St. George's Channel and the northern side has the Irish Sea. The total area of the coastline is over 1,200 kilometers and includes several islands that lie off the Welsh mainland. The Welsh culture exhibits the true essence of the region and tourists are introduced to the colorful and vibrant cultural heritage of the nation. Gradually with the change in times a mode rn outlook developed among the Welsh and thus a different meaning was attached to the Culture of Wales. Cultural Tours of Wales provide you an idea of the religion, arts and crafts of the region as well as the language. Religion, music and sport are among the indispensable part of the Cultural Heritage of Wales. Basket making, candle making and knitting are among the popular arts and crafts of Wales. Wales is famous for music and poetry and Culture of Wales has a great affinity to the most well-known musical image of Wales. Wales has a long tradition of folk song and has a long history of the instrumental tradition. The most widely practiced religion in Wales is Christianity and include to the diverse Culture of Wales. Culture of the performing arts in the Swansea provides you great source of entertainment. Festival of Music and the Arts plays an important part in promoting Wales Tourism. The Festival of Music and Art brings a great cultural gathering. Culture of Wales is presented mainly at the Swansea, Pembroke, Llandeilo, Narberth and Tenby. These places are perfect for the region's deep-rooted cultural aspect that includes arts and craft and musical performances. When it comes to entertainment, the country of Wales posses a rich culture and history and the people here enjoy lots of festivals. Festivals and Events in Wales are celebrated throughout the year; the festival of Eisteddfodau for example, known as cultural gathering, is one of the major Wales Festivals and Events. The biggest celebration is the Royal National Eisteddfodd of Wales, which is generally held in the early period of the month of August. There is another version of this festival of International Eisteddfod festival that is held every year in the month of July. The festival of Eisteddfod is a cultural competition that has its root in the ancient times. This festival celebrates the victory of the British from the Norman invasion. Among the other Festivals and Events in Wales, one is the Royal Welsh Agricultural Show. This festival is held in July and in these festivals there is a wonderful exhibition of several spectacular agricultural products that have their own beauty and are unique. You can also enjoy a host of oddball events throughout the year. The city of Brecon is known for its jazz festival and the fine food festival of Abergavenny is also very popular. The Irish culture: Ireland is rich in history and has also been the home to many talented writers including the likes of Oscar Wilde. Ireland has made a large contribution in literature and the very traditional folk music combined with the beautiful steps of the Irish dance all reflect the rich culture of Ireland. The people of Ireland are known to be very hospitable and friendly in nature. Having a family life is considered of great importance in Ireland. The traditional ways of the Irish culture can be seen in the rural areas of Ireland. Here, a lot of traditional customs are followed which is quite a contrast to the modern life that is led in the urbane areas of Ireland. Ireland also has a large number of people who own their own palatial residencies. The modern Irish culture follows a more open method of communication between the Irish people. The Irish believe in displaying their affection rather than curbing the same. English still remains to be the most spoken language today. The native dialect can be found in some of the rural areas of Ireland. The Irish language was introduced by the Celts and many senior citizens can be found speaking in the traditional Irish language. The homes in Ireland still follow the same rule and are built in a similar fashion, as was the pattern of the olden days. Bright and cheerful colors can be seen splashed on the walls of most homes with colorful doors. Homes of Ireland are generally terrace houses with the central heating system having replaced the traditional fireplace. Although there is no official religion for Ireland, special consideration has been given to the Catholic Church. One can see the Roman Catholics, Methodists, Jewish, Presbyterianism and even a small percentage of other religions such as Islam existing in Ireland. Talking about food, Stories related to the old Irish culture have the mention of honey being widely used especially to make mead. Meat was widely eaten along with poultry products. The potato formed a major part of the food in Ireland amongst the labor class. Today, the food habits have influences from all over the world. Although meat has always been the main item in Irish food, fast food has also taken over. New Irish dishes are being churned out to maintain some healthy eating habits amongst the Irish people; these focus mainly on fresh vegetables. The British norms & values Norms are defined as specific but tacit standards of what is socially and individually acceptable; values as explicit but general statements of principle, of which the content is continually changing through changing norms, changing circumstances, changing policies and the accompanying ethical debate. The relation of norms, values and policies is shown by an historical example. The inherent conflict within both norms and values is discussed and the role of the policymaker is defined, both as an artist in conceiving and devising one among many possible but always partial realizations of contemporary norms and values, and as a partially conscious agent in reshaping the norms and values of his time. The psychological implications of this are briefly indicated. Britishness is the state or quality of being British, and is used to refer to what binds and distinguishes the British people and forms the basis of their unity and identity, or else to explain expressions of British culture, such as habits, behaviours or symbols that have a common, familiar or iconic quality readily identifiable with the United Kingdom. Dialogue about the legitimacy and authenticity of Britishness is intrinsically tied with power relations and politics; in terms of nationhood and belonging, expressing or recognising ones Britishness provokes range of responses and attitudes, such as advocacy, indifference or rejection. In the 16th and 17th centuries most people in this island lived in small village communities. They knew all their neighbours. They dressed alike, and almost all of them were white. The vast majority belonged to the same religion, and spoke much the same language. And, at regular intervals, these very similar people, possessed of very similar values, would cheerfully go and watch some of their number being burnt alive at the stake, or slaughtered with swords, because they were deemed to possess the wrong brand of Christianity. As this suggests, promoting common â€Å"British values†, even assuming that we knew what these were, is never going to be enough to prevent some stray, impassioned individuals in our midst from wanting on occasions to kill their neighbours on God's behalf. Acts of violence against one's own countrymen that are legitimated by religion are emphatically not new. Nor have such acts ever been unique to Islam. Historically – in this country, as in most other countries – religion has often proved a more consistently lethal and divisive force than any secular ideology. It has also often been a more divisive force than race. Yet, in recent decades, pundits and politicians have devoted far more time to worrying about racial divisions in British society, than they have to thinking imaginatively about the consequences of our new religious pluralism. This, despite the fact that, since 1945, Britain, like other European states, has entered uncharted territory as far as religion is concerned. Before the Second World War, most Britons were at least nominally Protestant. Now, all the world's religions are represented here. It is a great experiment. But it comes accompanied with new risks, tensions and uncertainties. Gordon Brown, the Prime Minister of the United Kingdom, made a speech in 2006 to promote Britishness. Brown's speech to the Fabian Society's Britishness ( British intellectual socialist movement ), Conference proposed that British values demand a new constitutional settlement and symbols to represent a modern patriotism, including a new youth community service scheme and a ‘British Day' to celebrate. In 2007, the majority of people in many non-white ethnic groups living in Great Britain described their national identity as British, English, Scottish or Welsh. This included almost nine in ten (87%) of people with mixed heritage, 85% of Black Caribbeans, and 80% of Pakistanis and Bangladeshis. Non-whites were more likely to describe themselves as British than whites. One-third of people from the White British group described themselves as British; some respondents opted to call themselves English, Welsh or Scottish. 19] A study conducted for the Commission for Racial Equality (CRE) in 2005 found that, in England, the majority of ethnic minority participants identified primarily as British, whereas white English participants identified as English first and British second. In Wales and Scotland, the majority of both white and ethnic minority participants identified as Welsh or Scottish first and British second, although they saw no incompatibility between the two identities. 20] Other research conducted for the CRE found that white participants felt that there was a threat to Britishness from large-scale immigration, the ‘unfair' claims that they perceived ethnic minorities made on the welfare state, a rise in moral pluralism and perceived political correctness. Much of this frustration was found to be targeted at Muslims rather than minorities in general. Muslim participants in the study reported feeling victimised and stated that they felt that they were being asked to choose between Muslim and British identities, whereas they saw it possible to be both at the same time.

Aging Society Aging Population - 1661 Words

Aging Society During the years of 2000 and 2050, the overall population of the elderly population is anticipated to rise by 135%. The elderly population that is aged 85 and over, is expected to need more health and long-term care services, which is anticipated to rise by 350%. The burdens of the upcoming aging in population in the US is not so much originated from the rise in the aging population, by itself, but rather from the slower anticipated rise in the non-elderly, employed population. The gradual expansion of the employed population will result that there will be a smaller amount of individuals to pay the taxes that are needed to back up public programs for the elderly population and a lesser amount of individuals to supply and give the services that the elderly population is needed. II.The aging population will see a change in acute to more chronic illnesses. The elderly population will require more attention on chronic diseases such as, Alzheimer’s Disease, Heart Disease, and Osteoporosis. â€Å"The style of medicine will need to change from one-time interventions that correct a single problem to the ongoing management of multiple diseases and disabilities; doctors and patients will have to have an ongoing relationship designed to help patients cope with illnesses rather than curing them (Weiner Tilly, 2002).† Individuals who have chronic illness, could also have to deal with disabilities, and this could lead to them needing long term services for example, nursingShow MoreRelatedModern Society : Aging Population1496 Words   |  6 Pagesdecades, vantage point of our modern society has been changed about aging population. There are huge differences between past and present social view of point for aging population. In modern society, people have thought about aging population that they are burden for their present as well as future life. There are many facts such as country economy, health care issue, economic challenge, social changes and so on, which support these modern thinking of society. But, this is universal fact that afterRead MoreThe Australian Population Is Fast Becoming An Aging Society1974 Words   |  8 Pagesimmigrants who will be accessing aged care services with Southern Cross Care. 1.1 Research Context Research has shown that the Australian population is fast becoming an aging society. A huge proportion of older people accounting for this aging society were born overseas. According to Australian Bureau of Statistics in 2011, 36% of Australia’s older population was not born in Australia. (Appendix A). The percentage of older people from CALD backgrounds is rapidly increasing. 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Population ageing is a global phenomenon that can be expressed by the significant demographicRead MoreEvolution of Program s and Services for Aging Populations Over the Last Fifty Years864 Words   |  4 PagesEvolution of Programs and Services for Aging Populations Over the Last Fifty Years The objective of this study is to examine the evolution of programs and services for aging population over the last fifty years. Toward this end, this brief study will conduct a review of literature that addresses these shifts and changes in policy. The timeline of the history of the services and pogroms for the aging population in the United States is shown in the following timeline and an explanation for these developsRead MoreEconomic Development Patterns Of Employment And Retirement915 Words   |  4 Pagesthe government play in this process, if any? 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