Plant Pigments and Photosynthesis

Plant Pigments and Photosynthesis Analysis 1. The solubility and the intermolecular bonds formed between the solute and the solvent are involved in the separation of pigments as it moves through a filter paper. 2. The Rf values would be different if a different solvent was used because the solvent would have different characteristics which affects the capillary action (because the Rf value is distance pigment migrated (mm) / distance solvent front migrated (mm), the capillary action would have a large impact on the Rf value), attraction of solvent molecules to one another, and each pigment will not be equally soluble to the original solvent. 3. The reaction center of photosynthesis contains chlorophyll a. Other chlorophyll a molecules, chlorophyll b, carotenes and xanthophylls capture light energy and transfer it to the chlorophyll a located in the reaction center. Carotenoids also protect the photosynthesis system from damaging ultraviolet rays. Part B Purpose Condition of Chloroplast vs. Rate of Photosynthesis: The purpose of this lab is to observe and measure the effect of boiled and unboiled chloroplast on the rate of photosynthesis of a chloroplast suspension made from spinach leaves. Presence of Light vs. Rate of Photosynthesis: The purpose of this lab is to observe and measure the effect of the presence of light on the rate of photosynthesis of a chloroplast suspension made from spinach leaves. Variables Condition of Chloroplast vs. Rate of Photosynthesis  · Independent Variable: Condition of chloroplast  · Dependent Variable: Rate of Photosynthesis; this will be measured by determining the percent transmittance of each chloroplast suspension.  · Controlled Variables: Amount of DPIP (mL), Temperature ( °C), and Amount of Phosphate Buffer (mL) Presence of Light vs. Rate of Photosynthesis  · Independent Variable: Presence of Light  · Dependent Variable: Rate of Photosynthesis; his will be measured by determining the percent transmittance of each chloroplast suspension.  · Controlled Variables: Amount of DPIP (mL), Temperature ( °C), and Amount of Phosphate Buffer (mL) Hypothesis If the condition of the chloroplast in the suspension was unboiled, and there was light present, then there will be photosynthesis occurring in the cuvette. Photosynthesis the process by which the chloroplast within the leaf cells of green plants use sunlight to synthesize foods from carbon dioxide and water. In order for photosynthesis to occur, the chloroplast needs to be functioning, and light needs to be present to excite electrons for NADP to bind with. Because unboiled chloroplast and light are both present in cuvette 3, photosynthesis occurred rapidly. But if boiled chloroplast and light were present, photosynthesis would not occur. Boiling the chloroplast would rupture and destroy the chloroplast, therefore ceasing the process of photosynthesis. If unboiled chloroplast was in the cuvette, but light was absent, photosynthesis would not occur. Light is important in the process of photosynthesis. Light striking photosystem II is the cause of the excited electrons that bind to th e NADP, but in this experiment, the compound, DPIP, will be used as a substitute to determine percent transmittance. Therefore, without properly functioning chloroplast and light present, photosynthesis in the cuvette will not occur. Procedure First set up an incubation area that includes a light and a heat sink. Use a 100 mL beaker or flask filled with water to be placed between the light source and the cuvettes. Then, because you need to keep the chloroplast suspension cool, fill a bucket three quarters full with ice. Prepare the cuvettes by wiping all sides clean. Remember to handle them by touching the sides with the ridges. All solutions should be free of bubbles. Place cuvette position with the clear side facing the light source in the colorimeter. Label the caps of the cuvettes with numbers 1, 2, 3, 4, and 5. Then make a foil container and a cap for cuvette 2 and make sure it can be easily removed so you it can be placed into the colorimeter for percent transmittance readings. This will keep the light out of cuvette 2 because it is a control. Remember to replace the foil between readings. Label the provided pipettes â€Å"B† for boiled chloroplast and â€Å"U† for unboiled chloroplast. Obtain the boile d and unboiled chloroplasts. Fill the bulb of each pipette to about one-third its total size. Invert the pipettes and place them in your ice bath. Be sure to keep both chloroplasts on ice at all times. When you are dispensing the chloroplasts into the cuvette, gently shake the pipette to resuspend the chloroplasts. To cuvette 1 add 1 mL of phosphate buffer, 2.5 mL of distilled water, and 3 drops of unboiled chloroplasts; cuvette 2 add 1 mL of phosphate buffer, 1.5 mL of distilled water, 1 mL of DPIP, and 3 drops of unboiled chloroplasts; cuvette 3 add 1 mL of phosphate buffer, 1.5 mL of distilled water, 1 mL of DPIP, and 3 drops of unboiled chloroplasts; cuvette 4 add 1 mL of phosphate buffer, 1.5 mL of distilled water, 1 mL of DPIP, and 3 drops of boiled chloroplasts; cuvette 5 add 1 mL of phosphate buffer, 1.5 mL + 3 drops of distilled water, and 1 mL of DPIP. Link the computer to the colorimeter, and prepare Logger Pro. Add three drops of unboiled chloroplasts to the water and ph osphate buffer as indicated in the table. Cap the cuvette, place it into the colorimeter and use it to calibrate the colorimeter. Finally, add three drops of unboiled chloroplasts to cuvette 2, immediately start your stopwatch, and record the time and transmittance in the data table. Return the cuvette to its foil container and place it behind the heat sink. Add three drops of unboiled chloroplasts to cuvette 3, immediately record the transmittance and time. Add three drops of boiled chloroplast to cuvette 4, and record the time and transmittance. Check and record the transmittance of cuvette 5, which is the control. Record time and transmittance. Remember to check the transmittance of each cuvette at five-minute intervals from when the chloroplasts were added up to 15 minutes. Conclusion Functioning chloroplasts and the availability of light are two important factors for the rate of photosynthesis. Light is needed to excite the electrons from the water molecule. Then the excited electron binds with NADP, or in this case, DPIP. When the DPIP accepts the electron, the compound begins to degrade. A greater concentration of DPIP is easily seen inside a cuvette because of the dark blue dye associated with the DPIP. As DPIP degrades, the color of the chloroplast solution begins to get lighter. A solution without DPIP would be clear. Percent transmittance would be greater if more light passes through the solution in the colorimeter. If a cuvette had functioning chloroplasts and was exposed to light, the DPIP would be breaking down at a faster rate in the controlled time, which would mean there are less DPIP compounds in the cuvette, resulting in a lighter colored suspension; the amount of DPIP is directly related to the shade of the solution. The percent transmittance is de termined from the shade of the suspension; the lighter the solution, the smaller the amount of DPIP remaining. Therefore, the decrease of DPIP in the given time would indicate that photosynthesis is indeed occurring in the cuvette. Our hypothesis is supported by the data because we hypothesized that fully functioning chloroplast with the presence of light would result in the occurrence of photosynthesis. In this experiment, we tested and observed the effect of the condition of chloroplast and the presence of light on the rate of photosynthesis. In cuvette 2, we added unboiled chloroplast and did not allow light to penetrate the cuvette. So we used aluminum foil to block out the light from the light source behind the heat sink. At 0 minutes, the light transmittance was at 17.5%. But 10 minutes later the percent transmittance was at 19.9%. The data indicates that where was a small amount of DPIP reduced. When we removed the cuvettes foil shell to measure transmittance, light was introduced to the suspension. This indicates that the very little photosynthesis that occurred was the result of the light that excited electrons for DPIP to accept during the seconds between the removing and the replacing of the aluminum cuvette castings. In cuvette 3, there was unboiled chloroplast and light introduced to the mixture of distilled water, phosphate buffer, and DPIP. As you can see from the provided data table and graph, at 0 minutes, the transmittance was 18.09%. But 10 minutes later, the percent transmittance rose to 96.26%. Light struck the functioning chloroplast, excited electrons, and caused DPIP to break down as it accepted the electrons. This is evidence of photosynthesis occurring at a very fast rate inside cuvette 3. But 15 minutes later, the transmittance of cuvette 3 was to 96.83%. This shows that the rate of photosynthesis slows down, but this was the cause of the scarce amount of DPIP. The rate of photosynthesis was so fast that it used up almost all of the available DPIP in 10-15 minutes. In cuvette 4, there was boiled chloroplast in the suspension, and light was present. At the initial time, 0 minutes, percent transmittance was at 24.32%. 10 minutes later, the solution had a 28.47% tr ansmittance. There is a slight increase in transmittance, but exposure to light can cause DPIP to break down. If photosynthesis had occurred, it would have occurred at a much faster rate. The data would be similar to cuvette 3s data, but because of the slight increase of transmittance, photosynthesis did not occur. This proves out hypothesis that for photosynthesis to occur, light and functional chloroplast must be present. When the chloroplast was boiled, this destroyed the chloroplast. Therefore, without functioning chloroplast, photosynthesis will not occur. Cuvette 5 was the control; chloroplast was not added to the solution. At 0 minutes cuvette 5 had a transmittance of 25.22%. 10 minutes later cuvette 5s transmittance was 22.60%. This decrease is due to experimental error. Without light, functional chloroplast would be no use. In order for photosynthesis to occur, light must be present to excite the electrons. Because of the absence of light, DPIP will not degrade due to accepting excited electrons, for instance, cuvette 2s data. Without fully functional chloroplast, there will not be any electrons in photosystem II to excite, and the DPIP will not degrade because there arent any excited electrons to bond to, for example, cuvette 4. This data proves that for photosynthesis to occur, fully functional chloroplast and light must be present. Analysis The DPIP will be used to substitute the NADP electron acceptor. When light strikes the chloroplasts, the electrons are boosted to a higher energy level, which will reduce the DPIP, turning it from blue to colorless. The DPIP replaces the NADP molecule. Electrons used to reduce DPIP are obtained when a water molecule is split. The colorimeter in this experiment measures the amount of light received at the sensor across from the light source in the colorimeter. If the chloroplast suspension, which is placed in between the light sensor and the light source, is darker in color, then we can imply that the DPIP in the solution has not yet broken down, which confirms that photosynthesis is not occurring. Darkness inhibits the reduction of DPIP; because the light waves are not exciting the electrons in the chloroplast, the DPIP is not breaking down. Therefore, the DPIP remains in great numbers in the chloroplast suspension. The more DPIP, the darker the solution. Boiling chloroplasts does not affect the reduction of DPIP. When the chloroplast is boiled, it is nonfunctional. Because the chloroplast is nonfunctional, the photosystem II is unable to receive the light and excite the electron. Because the electrons are not excited, the DPIP is not reduced. Chloroplasts that were incubated in the light are able to harness the energy from the light to excite electrons that is then accepted by DPIP. This causes a reduction of DPIP, which makes the originally blue chloroplast suspension to lighten in color. The lighter the solution, the greater the percent transmittance, because more light can pass through the solution in the colorimeter. Chloroplasts that were kept in the dark do not receive light and cannot excite electrons. The DPIP compounds are not broken down, which results in a darker blue suspension. When this is placed into the colorimeter to measure percent transmittance, less light will be able to travel through the suspension due to the dark-blue color of the suspension. Cuvette 1: was used to calibrate the colorimeter. This cuvette did not contain DPIP, which would resemble 100% transmittance because of the lack of dye in the solution. Cuvette 2: contained unboiled chloroplast and was kept in the dark. This was used to confirm that both functional chloroplast and light are needed for photosynthesis to occur because the combination of unboiled chloroplast and the absence of light did not produce a significance increase in percent transmittance. Cuvette 3: contained functional chloroplast and was placed in the light. The significant increase of percent transmittance proves that both functional chloroplast and significant light are necessary for photosynthesis to occur. Cuvette 4: contained boiled chloroplast and was placed in the light. The function of this cuvette was to prove that functional chloroplast and light are needed for photosynthesis to occur, but the small increase in percent transmittance may have been the result due to the light breaking down DPIP. Cuvette 5: did not contain any chloroplast or light. This cuvette was used as a control. It would be used as the â€Å"baseline† when analyzing data because it can reveal any effects that is experienced by the cuvette that did not result from the presence of chloroplast or light.

Foreign Direct investment policies Essay

Recently Egypt has made some impressive reforms in reforming its foreign direct investment policies but there are still some significant barriers. Currently the FDI stands at 12. 2 Billion up from one billion in 2001. Barriers to entry have been eased for foreign investors; the country has dedicated a ministry to propel the number of foreign investors. Egypt streamlined its tax system with a reduction in corporate income tax rate from between thirty two percent and forty percent to a uniform of twenty percent. In manufacturing, foreign investment has been fully liberalized other than in industries related to defense activities. Foreign equity is allowed to participate in privately owned communication and financial services up to one hundred percent. It has become cheaper and quicker for foreigners to register new companies (Ikram et al 1980) In some sectors such as transport, electricity and construction, foreign investment is restricted. For example in construction foreign companies have to set up a joint venture, in which the equity of foreigner is only limited to forty nine percent. Economic Structure and performance The economy of Egypt is undergoing a steady growth in the last quarter of 2008. Egypt’s annual growth domestic product had risen from 7. 3 in 2006 to 8. 6 in 2008. The rate of inflation has also dropped from 18. 3% in 2003 to 3. 21% in 2008. However with the current economic downturn inflation rate in Egypt stand at 10. 87%. With the economic reforms that the government has undertaken, private sector commands over eighty percent of Egypt’s economy. As economic reforms take root, the annual growth domestic percent is likely to accelerate. It has been predicted that it will hit 13. 5 % by 2010. Economist agrees that the economic climate that currently exists in Egypt is the best one for investing. The Egyptian economy as it is now is able to create more opportunity for domestic growth of wealth and also has enormous potential over long term because of the following reasons: strong economic growth of 8. 6% in 2007, incentives and reforms given to foreign investors, low cost of living and availability of cheap labor. Since 2001, Egypt consumer price index, has registered a significant growth from 12. 68% in 2004 to 3. 6% a fact that is attributed to the rise in the value of the Egyptian Pound. The current account of Egypt has also grown from a deficit of 1. 8% of the annual gross domestic product to an estimated 6. 1% in 2007. (CIAO/EIU Partnership 2008) With the high population in Egypt, the county has a wider market of both skilled labor and unskilled labor. The ministry of education has always ensured that the courses offered in both private and public learning institutions are at par with the requirements in the job market. With the assistance of IMF and World, Egypt has embarked on a program that will see the private sector takes a big role in the county. Egyptian government entrenched Law 203, which was to speed privatization of the public sector. Currently the degree of privatization in Egypt is high (72 percent). By 2007, the government had privatized over eighty percent of the 314 public enterprises which it had earmarked for privatization. The ministry of public enterprise in Egypt predicts that by 2010, all the public enterprises that were earmarked for privatization will have been privatized. With privatization of these public enterprises, the benefits accrued to the Egypt economy is an additional savings to the country. The total gain which has so far been realized by privatization is that GDP has grown by 2. 8 %. With the growth in GDP, the country’s infrastructure has also noticed some improvement, because most of the savings that the government is making as a result of privatization is currently being used for development (Sayed et al 2007 pp12-29) The Egyptian’s road network is somehow underdeveloped. It is currently being serviced by a network of over sixty eighty thousand kilometers of both secondary and primary roads. Despite modernizations of roads in Egypt in mid 1980s, most of them are either under construction or are in poor condition. The level of congestion of automobiles has continued to rise due to the increase in the number of licensed automobiles. According to a report released by EIU (2006) country profile, Egypt reported the highest incidences of automobile fatalities in the entire world: it was 44. 8 deaths per one hundred thousand kilometers. In terms of energy Egypt has adequate supply of electricity from Egyptian Electricity Authority which produces over fifteen thousand megawatts of power. Plans are already underway for EAA to increase its power production by more than two thousands five hundred by 2010. Power consumption has reported a constant growth of 6. 1% per year. Telecommunication services are cheaper and modern. According to reports by EIU country profile for 2006/2007, Egypt had more than seven million lines. The lines are increasing at a rate of one million per year. The country has seventy nine internet providers (Economic intelligence unit country profile) Natural and Cultural factors Egypt has a diverse cultural mix which is good for investors. 80 percent of the Egyptian population is Muslims, while Christians and Hindu makes up the remaining percentage. The country observes religious practices like during the holy month of Ramadhan the country is always in a prayer mood. Egypt also has an average temperature of between 13 and 29 degree centigrade. For entry to Egypt, Visa is usually required. EU and U. S nationalities that are traveling or want to invest in Dahab, Taba, Sharm EL Shik and Hurghada are given a free visa stamp upon arriving at the airport Social and political stability Egypt is a democratic country with many political parties. The country has a semi presidential system, where power has been split between the prime minister and the president. In 2005, Egypt changed its constitution to allow for more presidential candidates to take part in the elections. The county also has a good political temperature that is favorable for investors. The country was the first Arab country to embraces political relationship with Israel. It also plays in mediating conflict between different countries in the Middle East. The political life in Egypt is good for investors. Hence U. S businessmen who are currently doing their business there or who want to start doing their business should do so. Recommendation and Conclusion From the analysis carried, the writer of this paper is of the opinion that Egypt is a good country for any American companies who are thinking of investing there or who have already invested there to continue. The writer is of the opinion that Egypt has an attractive and stable market for property investors. The country has an emerging property market in tourist destinations and it is also offering a return that is excellent on property investment. Despite the fact that foreign equity in construction industry is standing at forty nine percent Americans companies should ventures into it because of the high rate of return that this industry commands in Egypt. Reference: Abd al –Salam, Abou Khaf M & Abu Qahf (2005) Foreign direct investment in developing countries, a comprehensive analysis of the determinants, policies, organization & impacts a case study of Egypt. Buckley P (2003) the changing global context of Egypt international Trade CIAO/EIU Partnership (2007) Economic structure of Egypt retrieved from www. ciaonet. org on March 26 2009 Egypt trade summary PDF retrieved from www. ustr. gov/assets/Document_Library on March, 26 2009 Economic intelligence unit country profile 2006/2007 report retrieved from www. eiu. com/index. asp March, 26 2009 Galal A & Lawrence (1998) An Egypt US free trade Brookings Institution Press pp 23 -56 Ikram K & World Bank (1980) Egypt, Economic management during transition period – A mission report sent to Egypt by the World Bank pp 12 -42 Kaudhar- Luis F (2006) Investing in Construction Industry in Egypt Alexandra University Press pp 9 – 30 Marks S & Ken K 2001 a comparative study of foreign direct investment in Egypt Published by USAID pp 9 -14 Olarreaga M & Madani D (2002) Politically Optimal Tariffs- an application of Egypt pp 6 – 29 Sayed S, Idarat A. & Dawliyah (2007) international business in Egypt & Middle East Jordan Publisher 12 -65 Weigel D, Wagle D & Gregory W (1997) foreign direct investment World Bank Publications pp 1 -22

American Airlines Dynamic Pricing - Free Essay Example

Sample details Pages: 7 Words: 2239 Downloads: 4 Date added: 2017/09/17 Category Technology Essay Type Argumentative essay Did you like this example? EXECUTIVE SUMMARY Revenue management is a proven technique to help service industries maximize revenue. It involves management of inventory and distribution channels and prices to maximize profits over the long run. Simply stating the technique involves selling the right product to the right customer at the right time at the right price. The following are the primary activities involved: demand data collection, demand modeling, demand forecasting, pricing optimization, and system implementation and distribution. Though individual airlines in the States are not owned by the government, it effectively controlled their performance until the late 1970s by setting a single price for each route and decreeing which of many carriers could operate where, but from the late 1970s on, the government relaxed the rules. American Airlines (AA) was the first to use basic revenue management techniques, offering dynamic pricing in shape of discounted fares to passengers who booked early, incentivizing customers by reserving seats for higher paying customers, and overbooking seats in the knowledge that some passengers would cancel at the last moment and that others would fail to show up. AA pioneered the revenue management system and reaped the rewards of being one of the first movers in that direction. By using the methods mentioned earlier American Airlines claims to have been able to generate as much as $500 million a year in additional profits from 1980s onward. The methods used and the steps taken highlight the simple use of basic microeconomics principles in that dynamic pricing helps reduce the consumer surplus and deadweight loss and at the same time increases the firm’s profits. Using dynamic pricing (and coupling with yield management) AA decreased demand variability in that the customers understood that the earlier they book the better price they will get. The questions American Airlines asked itself were: How many seats to make available at each of the listed fares, depending on time of year, time of week, remaining seats available, remaining time until departure, what contracts and prices to provide to corporations, how many seats to make available to consolidators and travel agents (if at all), and at what prices, how much capacity to make available to cargo shippers and freight forwarders, and at what prices. The same techniques can (and have been) applied in many other sectors like hotel industry, Ocean cargo industry, car ental industry, restaurant industry, manufacturing industry, retail industry and many others where the goods are perishable and opportunity costs exist including even golf courses and entertainment industry (ticket pricing, advertisement slots etc). Analysis 1. What are AA’s major strategic tactical Decisions American Airlines (AA) faces intense competitive threat as airline deregulation had opened the market to new entrants; the deregulation has also allowed airlines to change their fare s and route structure at will. AA executives have to make major strategic and tactical decision to thwart these competitive threats and maintain AA leadership as airline of choice. * Cost Containment – AA has to keep it cost in control, acquire new fuel efficient aircraft, maintain its labor and pilots productivity and reduce its aircraft maintenance costs. * Route Structure – The evolution of hub-and-spoke model of airlines operation required AA executives to decide on optimal routes, aircraft size, fares and terminal allocation. Marketing AA executives have to find out the optimal way of using AMR’s SABRE reservation system and leverage bit to seek competitive advantage. SABRE system as Quantitative Decision Support System AMR’s SABRE ticket distribution system has information regarding 35% of all airlines reservation in United States wealth of ticketing and routing data that can be leveraged by AA to understand where it stands with respect to the c ompetition. AA can utilize data mining on SABRE system thus converting it into a quantitative tool that can help AA support its strategic and tactical decisions. AA can use route and faire optimization to arrive at its short and long term pricing strategy. 2. Should AA counter Continental’s $159 west coast fare with a relatively unrestricted fare on the non-stop Chicago-west coast flight? American Airlines should actively take measures to meet its breakeven passenger load factor of 56. 0% in September and October, although these measures may not necessarily include countering Continental’s $159 west-coast fare with $10-$20 premiums and high restrictions. Firstly, it may not be a sound strategy for American Airlines to compete with Continental on its core strength: pricing. More specifically, Continental’s post-Chapter 11 reorganization and low-cost structure provides the airline with a non-replicable competitive cost advantage over American Airlines. Ameri can Airlines may need to cut its margins steeply in order to compete with Continental’s low prices. Should American Airlines choose to pursue countermeasures against Continental, however, the company should determine the most cost-effective way of lowering prices. For example, the company should recognize that lowering prices in July and August, months in which their breakeven passenger load factor minimum is already met, is unnecessary. Therefore, the company’s focus should turn to the months of September and October, in which the current load factors are 1. 4% and 0. 8% lower than the company’s breakeven point. American Airlines should also recognize that the average full-coach OD passenger totals actually increases in the months of September and October to 7,389. 5, up from 7,056. 5 in the months of July and August. It is reasonable to conclude that American’s inability to meet its breakeven point is not attributable to its inability to sell Full Co ach tickets, but more a reflection of its Discount Fare ticket sales. Assuming that $10-$20 premiums over the company’s expenses are achieved, its new margins over its current operating expenses per available passenger seat mile of 7. 59 cents would be $10/2,132. 92 = $0. 004 per mile, $15/2,132. 92 = $0. 007 per mile, and $20/2,132. 92 = $0. 01 per mile (there are 2,132. 92 miles between Chicago and San Francisco). If the company cuts its margins to this extent, and is still able to earn $7. 60 per mile over the operating expenses of $7. 59 per mile ($20 premium), it may be able to capture 100% of Continental’s market share in September and October (11. 3% and 11. %). With a total market size of (7095+57261)*100/26. 1 = 246,574 tickets in September, and (57261-7095)/57261 = 87. 6% of tickets being Discount Fare tickets, stealing 100% of Continental’s market share in discount tickets would subsequently increase the American’s Discount Fare ticket sales by 9. 9%, or 24,407 tickets. Similarly, with a total market size of (7684+59724)*100/26. 4 = 255,333 tickets In October, and (59724-7684)/59724 = 87. 1% of tickets being Discount Fare tickets, stealing 100% of Continental’s market share in discount tickets would subsequently increase the American’s Discount Fare ticket sales by 9. 8%, or 24,908 tickets. Assuming linear relationships, a difference of 20,000 tickets reflects approximately a difference of 16% of load factor – i. e. an incremental 1% difference in load factor can be attributed to selling only 1,250 more tickets. In conclusion, it seems unnecessary for American to reduce its prices this steeply in capturing Continental’s entire Discount Fare ticket market share, when it needs only to increase its load factors by 1. 4% and 0. 8% in September and October. In order to meet its breakeven load factor, the company should sell another 1. *1250 = 1750 in September and another 0. 8*1250 = 1000 in O ctober. Because there are 180 seats on a Boeing 737, and subsequently, (7095+57261)/180 = 357 flights in September and (7684+59724)/180 = 374 flights in October, 5 and 3 additional tickets need to be sold in September and October, respectively, in order to meet its breakeven load minimum. Assuming linear relationships again, American Airlines can generate additional sales of 11. 66-7. 59 = 24,407/4. 07 = 5996 tickets per cent of revenue yield lowered in September and 24,908/4. 07 = 6119 tickets per cent of revenue yield lowered in October. In order to achieve its objective of 56. 0% breakeven passenger load factor, the company should, therefore, lower its revenue yield per passenger mile to 11. 66 – 0. 29 = 11. 37 cents and 11. 66 – 0. 17 = 11. 49 cents in September and October. Including Full Coach ticket prices, the airline should ultimately lower the average fare from $248. 70 to $242. 51 in September, and $245. 07 in October. American Airlines may still consider pursuing other options in meeting its breakeven passenger load factor, which do not compete with other airline companies’ core strengths. For example, because United’s core strength originates in its successful flight scheduling, competing with United on another aspect of the business, such as pricing for non-stop flights, may provide American Airlines with a unique advantage, and allow the company to meet its breakeven passenger load factor. 3. What additional information should Santoni collect on a response to Eastern’s pricing decision ? New York-San Juan is critical to AA revenue as it is the largest market in terms of revenue passenger per miles. Performance in this sector ill significantly impact AA’s overall revenue, profits, cost per passenger mile and Load Factor. In order to competitively respond to Eastern Airlines offer and make data driven informed decision AA should further investigate the following areas 1. Overall Market Size: The numb er of passenger travelling between New York and San Juan will impact the decision on number of flights and schedule for this sector to capture even greater market share. We also need to understand the factors that could increase the overall market in this segment. 2. Weekends and weekdays Travelers: The segmentation of the passenger will enable AA to offer different pricing structure to attract each type of customer leading to increased revenue and load factor. 3. Market segmentation: Categorize the passengers based on following criteria- a. Traveler Category: Business, Leisure, Local This segmentation of the travelers will influence the scheduling appropriate to the season and travel trends. For example, significant number of business travelers will lead to fairly constant demand throughout the year. Otherwise, for passengers fall in the leisure category the demand would be higher in the summer than during other parts of the year. Further, the number of passengers that prefer to buy a one way unrestricted ticket would influence our pricing. b. OD versus those originating from other destinations: This segmentation would affect our decision because if there are significant numbers of OD travelers then we may focus more on the NY-SJU sector otherwise we can focus on providing connecting flights, treating San Juan as a transfer hub or devising alliance with local carriers. This would help us differentiate from other carrier as AA can provide a more comprehensive flight package and enable us to charge tickets at premium. 4. Relative market share of the major players in this sector: This would help AA to devising pricing or scheduling schemes to gaining more market share based on our relative market share. 5. Current Schedule of flight by Eastern Airlines in this market: The scheduling of flights depends on the number of aircrafts operated by the carrier in the region. Moreover, the connecting flights for passenger continuing for destinations beyond San Juan will impact the choice of carriers. 6. AA’s load factor in this sector: This would influence our decision of dropping the price of seats to attract more leisure passengers in case the load factor is below the industry average. Else if we have a high load factor then AA can increase the service in this sector to pick up even greater market share. 4. Yield Management The cost of underestimate full-fare passenger is $400 ($499-$99) per passenger and the cost of overestimate full-fare passenger is $99 per empty seat. Since the cost of turning down a full-fare passenger is much higher than the cost of turning down a discount-fare passenger, the airlines should set a high initial authorization level for the full-fare bucket, which is 30 in this example, and then adjust the levels later to reflect the differences between forecasted and actual demand. The total revenue peaks when the actual demand of full-seat passenger equals the forecasted demand. It goes down by $400 when there is 1 more actual demand and by $99 when there is 1 less. Estimated # of full-rate demand| Actual # of full-rate demand| 27| 28| 29| 30| 26| 20,300| 20,300| 20,300| 20,300| 27| 20,700| 20,700| 20,700| 20,700| 28| 20,601| 21,100| 21,100| 21,100| 29| 20,502| 21,001| 21,500| 21,500| 30| 20,403| 20,902| 21,401| 21,900| 31| 20,304| 20,803| 21,302| 21,801| Demand| 10| 11| 12| 15| 20| 25| 30| TotalRevenue| 13,900| 14,300| 14,700| 15,900| 17,900| 19,900| 21,900| AverageRevenue| 9,666| 10,115| 10,559| 11,862| 13,932| 15,879| 17,700| Risk and Contingency Developing and implementing information systems and processes indispensably bear several types of risks. The enhanced automation of pricing and yield management brings market-related risks, operational risks, and financial risks to American Airlines (AA). Market-related Risks The fact that market demand is uncertain naturally causes risks in the processes of demand modeling, demand forecasting, and pricing optimization. The demand va riability is critical challenge for AA in developing profit maximizing revenue management system and the yield management system. Moreover, concerning the pricing activity, the primary uncertainty lies in the demand for different fare types (full- and discount-fare seats) which is affected by economic fluctuation, changes in consumer lifestyle trends, etc. It’s also expected that the level of those risks could be intensified by unexpected economic, political, social events such as economic distress and outbreak of wars. However, these risks are unavoidable and could be minimized through extensive demand data collection and continuous improvement of modeling and systems over time. Regarding the marketing strategy of AA, the cost leadership may not be an unique competitive advantage of AA in the long-run since it could be copied by its competitors. As a result, the strategic and tactical decisions should be made to strengthen both its cost leadership and quality of servic es. Operational/Financial Risks The revenue management system and the yield management system are exposed to system failure risk, information security risk, and integrity risk. In integrating several different information systems and internal and external databases, these risks increase. However, risks will be rationally mitigated through the IT governance policy of AA’s Information Systems Department and the minimum level of risks should be accepted by AA in order to maximize profits. In a financial standpoint, system development, implementation, and maintenance activities require enormous investment and costs. If expected financial benefits are not met, it could fail to generate positive operating cash flow from the investment activities. Don’t waste time! Our writers will create an original "American Airlines Dynamic Pricing" essay for you Create order

Standardized Testing Has Made A Huge Impact Not Only On...

Standardized testing has made a huge impact not only on our educational system, it has also had a negative impact on certain groups of students. One of the groups of students that have been affected by standardized testing the most are English Language Learners (ELL). ELL’s are expected to take and pass a test that they are not able to read and understand. It is not fair to make students take a test in a language that they are still learning and will not be able to comprehend. Although there are modified tests for ELL’s to take hardly any of them can qualify for it. They are left taking a test they are not able to understand. Different accommodations should be made to help the ELL’s who do not qualify for the modified test, but are also not qualified to take the regular test. The No Child Left Behind Act (NCLB) was implemented in an effort to help students learn and meet their full potential academically. The NCLB was put into place by the government to have more of an input in the standards that schools must meet. The Common Core initiative was implemented to make schools in every state equal and have the same curriculum. Texas is one of the states that has decided not to adhere to the Common Core initiative. Texas’s standards are based on Texas Essential Knowledge and Skills (TEKS). Standardized tests are the formal assessments schools use to make sure students are meeting the required state standards. The standardized test that Texas uses for assessment is called theShow MoreRelatedNearly Every State In The U.S. Has Adopted A Set Of Educational1167 Words   |  5 PagesNearly every state in the U.S. has adopted a set of educational standards known as Common Core State Standards, or C.C.S.S. (Shanahan, 2015), put into place in hopes of improving America s educational system. 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