The Illusions Of American Dream - 1448 Words

The illusions of American Dream also presents in â€Å"all men are created equal† in the declaration. As xxx states, it is very clear that â€Å"the white, Protestant landowners was responsible for deciding who keep a voice in the new government, but not the people†. When the country grows and their descendants gradually allow other people (from different races or countries) join the community, and give them equal rights to these â€Å"outsiders† to what they think fit. Human will naturally tend to protect their own circles and remain vigilance to the outside world, thus, it is not an easy thing to do. The Jungle described the tragic experience of the Jurgis family who are immigrants from Lithuania. In order to make a living in America, the Jurgis and†¦show more content†¦These descriptions of the harsh competitive environment become a significant part of The Jungle. The labours are treated as domestic animals as their working intensity is inconceivable that â€Å"they worked with furious intensity, literally upon the run—at a pace with which there is nothing to be compared except a football game.† (chapter 3) The work almost deprived all of the energy of labours. The novel also reflects the brutal competition which is full of deceit and dishonesty. Many people choose to benumb themselves to be an alcoholic in order to avoid competition. For women who are lack of advantages for competition, prostitution and degeneration become the only way to survive. The poor are competing with each other for the sake of food and clothing, while politicians are bribing money from the poor for defeating their rivals, and the police, the judges keep wages of the workers for their own expense. The American society in the eyes of Sinclair hardly has charity, even if there have charity, goodwill always comes from the lower class and the poorest. In fact, â€Å"The Jungle† is a visual definition of the inconstant society, that the industrialization of America is a brutal and bloody jungle world. Jurgis and his family gradually understand that the world in which they had been holding fantasy is hostile and competitive, that peopleShow MoreRelatedIllusion Or Dream : The American Dream1170 Words   |  5 Pages Illusion or Dream The American dream is a fluctuating ideology that motivated and took charge of many generations from the construction of this country. Until current day, People always need something that would help them set life goals and work hard for them their entire life. Up till now, there are not two people who can agree on the definition of the American dream, yet most of the Americans began to believe that this dream is just an illusion. Many Americans want to achieve the American dreamRead MoreThe Illusion Of The American Dream946 Words   |  4 Pages The Illusion of the American Dream 954 Money can not buy happiness, relationships, or life meaning. Multiple people in society base the success and meaning of a person’s life on the amount of money they possess. In The Great Gatsby by F. Scott Fitzgerald, most characters make decisions based on how it will affect their wealth and reputations. One of the main characters, Daisy Buchanan, chooses money and status over others, even if it hurts her and the people around her. Daisy’s character revealsRead MoreThe Illusion of the American Dream Essay727 Words   |  3 Pagesstruggle to get to America, believing the ancient tale of the American Dream, convinced that they will finally make it big in this land of riches. But they find out it is not like that. The American dream is the idea held by many in the United States of America that through hard work, courage and determination one can achieve prosperity. In itself, the American Dream is an illusion. In Merriam-Webster’s dictionary, an illusion is defined as ‘a misleading or deceiving image presented to theRead More Illusion of the American Dream in Death of a Salesman and The Glass Menagerie756 Words   |  4 Pages The American Dream is what all Americans strive to achieve. It is the illusion of prosperity and happiness. The American Dream consists of three different elements, money, sex, and power. The plays â€Å"Death of a Salesman† and â€Å"The Glass Menagerie† are about families who strive to achieve the American Dream. These plays are a lot alike and they have more similarities than differences. In America, money can get you many places in society. In both plays, money plays an essential element. In â€Å"TheRead MoreEssay on The Great Gatsby: American Dream or American Nightmare?1739 Words   |  7 PagesFitzgerald, The Great Gatsby The American Dream, a long standing ideal embodies the hope that one can achieve financial success, political power, and everlasting love through dedication and hard work. During the Roaring 20s, people in America put up facades to mask who they truly were. In The Great Gatsby, Fitzgerald conveys that the American Dream is simply an illusion, that is idealist and unreal. In the novel, Gatsby, a wealthy socialite pursues his dream, Daisy. In the process of pursuing DaisyRead MoreReality And Illusions : The Great Gatsby By F. Scott Fitzgerald1211 Words   |  5 PagesReality and Illusions Struggling with the separation of reality and an illusion, the characters in The Great Gatsby lived lives of deceit, which were not all as fabulous as they may have appeared. Jay Gatsby, Daisy Buchanan, and Jordan Baker were just a few examples of people, who were seemingly flawless and content, but truly they were lost, chasing after a dream they could never grasp. Jay Gatsby was a man obsessed with a dream of love and wealth. In his mind, Gatsby created an unattainable illusionRead More Illusion Verses Reality in Death of a Salesman by Arthur Miller 972 Words   |  4 PagesIllusion Verses Reality in Death of a Salesman by Arthur Miller  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Death of A Salesman, by Arthur Miller, is a play that tells the story of a traveling salesman, Willy Loman, who encounters frustration and failure as he reflects on and experiences his own life. Willys quest for the American Dream leads to his failure because throughout his life, he pursues the illusion of the American Dream and not the reality of it. His mindset on perfection, his obsession with success, and his constantRead MoreEdward Franklin Albee IIi : The American Dream, And The Goat, Or Who Is Sylvia?1313 Words   |  6 PagesENG3U0 Research Essay Edward Franklin Albee III is an American playwright mostly known for his works such as Who s Afraid of Virginia Woolf?, The Zoo Story, The American Dream, and The Goat, or Who Is Sylvia? Albee is perceived to be a leader in the creation of the American absurdist drama theatrical movement. Specifically, Who’s Afraid of Virginia Woolf? Opened on Broadway the same month the world was facing heated nuclear tensions between Soviet and U.S. powers during the Cuban Missile CrisisRead MoreHistory of America Mirrored in American Literature751 Words   |  3 PagesThe history of America is mirrored in American Literature. The American dream, the idea of equality and being able to achieve anything you wanted, meant that millions of immigrants moved to America. America claims to be a country which enables everyone to have equality and freedom however in the texts we can see it is rather a Capitalist and individualist country. The paradox of America can be seen through the fact that th e Statue called freedom was built by slaves. The inequality can also be seenRead Moreâ€Å"The American Dream has become a death sentence of drudgery, consumerism, and fatalism: a garage800 Words   |  4 Pagesâ€Å"The American Dream has become a death sentence of drudgery, consumerism, and fatalism: a garage sale where the best of the human spirit is bartered away for comfort, obedience and trinkets. Its unequivocally absurd.† –Zoltan Istvan. In both This Side of Paradise and This Beautiful and Damned, F. Scott Fitzgerald comments on the corruption of the American Dream. Throughout the beautiful text and prose of his first and second novels, respectively, Fitzgerald mocks the ghastly nightmare the American

Persuasive Essay On Minimum Wage - 1526 Words

Minimum wage is defined by the dictionary as â€Å"the lowest wage paid or permitted to be paid; specifically: a wage fixed by legal authority or by contract as the least that may be paid either to employed persons generally or to a particular category of employed persons.† Minimum wage is also referred to as the living wage. For many in and out of the political arena, minimum wage, is a topic of debate. The discussion involves the fairness of the current wage and the need to raise this wage to correlate with the inflation rate. While arguments can be rightly justified for both sides, many people have a strong opinion about increasing this wage, especially the workers themselves. This topic is part of a larger discussion about changing the†¦show more content†¦Furthermore, continuing with what Hoar stated, an increased minimum wage could result in massive layoffs. It’s quite logical; the more money a business is required to pay its workers, the fewer workers they can hire. Max Ehrenfreud states, â€Å"The city is gradually increasing the hourly minimum to $15 over several years. Already, though, some employers have not been able to afford the increased minimums. Theyve cut their payrolls, putting off new hiring, reducing hours or letting their workers go.† This shows that an increased wage in Seattle has had negative effects on many minimum waged individuals. This could also hurt the city and result in people venturing out of Seattle to find more promising areas to work. Others argue a raise should be earned, not simply given to every minimum wage worker. Most minimum wage businesses already make it possible for their employees to earn a raise, so they feel it is unnecessary to institute a raise. Those feeling this way generally would like it to stay the same and would prefer a raised based solely off the amount of hard work done and the quality of the worker, rather than every employee automatically getting one. Furthermore, be ing noticed for working hard and a potentialShow MoreRelatedMinimum Wage Persuasive Essay1067 Words   |  5 PagesRandy Oczkowski Mrs. Kenny March 25, 2013 Persuasive Essay $7.25 equals two gallons of gas, one fast food meal, or a simple school supply. With the minimum wage at the current rate you must work one hour to earn the seven dollars and twenty-five cents that only supply you with small necessities for everyday living. This problem was encountered before and was resolved with the agreement to higher the minimum wage from $5.85 to the current $7.25. Although that was a big increase in salariesRead MorePersuasive Essay Outline :Minimum Wage964 Words   |  4 Pages Persuasive Essay Outline :Minimum Wage 1 Intro - I want you to think about your very first job .Were you a Bellhop ,cashier ,bartender ,cooks(fast food ),lifeguard, .Now how about your second job were you a airport worker or child care worker.About how m uch were youRead MoreMinimum Wage Persuasive Essay1870 Words   |  8 PagesRaising minimum wage is a very controversial topic. Minimum wage became a federal law in 1938 and only it was only twenty-five cents. Today minimum wage has increased and is currently ten dollars and fifty cents. As one can see minimum wage has increased dramatically and will continue to increase. Minimum wage should not continue to increase at this rate because many businesses will be affected, the price of living will increase and it will alter the way people live. With this minimum wage is hurtingRead MoreMinimum Wage Persuasive Essay1424 Words   |  6 PagesI. Position Statement Is increasing minimum wage beneficial to society? I believe the United States Federal government should increase the minimum wage. Minimum wage has been a controversial topic in the United States for numerous years. Experts are constantly doing studies and finding emotional and logical appeals to support their arguments. Accordingly, when discussing minimum wage, long-term and short-term effects need to be brought into consideration. Throughout my research, I have found a multitudeRead MoreMinimum Wage Persuasive Essay1106 Words   |  5 Pagesmore than the federal minimum wage? If you said yes then perhaps you are unaware of the many negative effects surrounding a higher minimum wage and after reading this you will be educated on why the minimum wage should not be raised. In the beginning, the minimum wage was created with good intentions. It was originally established in 1938 and was $.25 an hour (Sessions). It was created to make sure that businesses would not take advantage over workers. While the minimum wage was and still is a goodRead MorePersuasive Essay On Minimum Wage1174 Words   |  5 Pages The US minimum wage should not be raised to $18.00 an hour for adults by 2020. Raising our minimum wage is just as good as destroying our economy and all the work our government has done to lower unemployment rates. Jamie Richardson, MBA, VP of the fast-food chain White Castle, stated that the company would be forced to close almost half of its restaurants and let go thousands of workers if the federal minimum wage was raised to $15. Peter D. Schiff, an investment broker and investor, stated inRead MorePersuasive Speech Draft (Minimum Wage) Essay745 Words   |  3 Pagesï » ¿Kirsten Burroughs Professor Hart Persuasive Speech 04 December 2013 Intro: People of the middle class all know that the minimum wage of $7.25 is not sufficient to maintain a comfortable lifestyle. There is considerable evidence to show that the current generations comfortable lifestyles require a more luxurious price for standard living. The cost of living over the years has dramatically increased due to high consumer demands of products. As that being said, $7.25 is just not enough forRead Moreminimum wage1601 Words   |  7 Pagesfor the low-income workers and their families whenever the government increases the minimum wage. The United States Congress adopted the Fair Labor Standards Act in 1938. Congress created the minimum wage toward the end of the Depression era to ensure a minimum standard oPremium 2048 Words 9 Pages Macroeconomics: Should the Minimum Wage Increase? Should the Minimum Wage Increase? Minimum wage is the lowest wage permitted by law or by a special agreement that can be applied for an employee or putRead MoreWal Mart : A Necessary Evil? Essay975 Words   |  4 PagesWal-Mart: A Necessary Evil? It does not take a large amount of funding and private studies to see that Wal-Mart is a widely successful corporation that offers cheaper prices than their competitors. In Jack and Suzy Welch’s essay they argue that we should support businesses that help individuals, communities and whole economies prosper, they claim that, â€Å"Wal-Mart helps individuals, communities, and whole economies prosper† (161), so we should support Wal-Mart. 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A Study On Construction Risk Management Engineering Essay Free Essays

string(81) " indispensable first measure in hazard direction and is perchance the most hard\." This paper discusses hazard in the building industry and how building contractors are covering with it. A aggregation of adept sentiments and theories, this paper discusses the general hazard direction theoretical account from hazard designation, appraisal and analysis of hazard, and commanding and pull offing hazard. Discussion of building insurance and building bonding are discussed, every bit good as how they are utilised as tools in building hazard direction. We will write a custom essay sample on A Study On Construction Risk Management Engineering Essay or any similar topic only for you Order Now The experience qualifier is explored in how it is of import in a building hazard direction plan. In add-on, a checklist is provided that highlights the most general points that need to be considered in a hazard direction plan. The building industry could see to be one of the most dynamic, hazardous, and disputing industries in the universe. In add-on, the building industry has a really hapless repute for pull offing hazard, with many major undertakings neglecting to run into deadlines and cost marks ( Mills, 2001 ) . Many times this consequences in hapless undertaking public presentation ( Tah 2000 ) . This is greatly influenced by the fact that this industry is exposed to many altering variables of different magnitudes. Some of the more normally known variables are weather, productiveness of labour and equipment, and quality of stuffs. All excessively frequently, hazards are either ignored, or dealt with in a wholly arbitrary manner. One of these ways may be by merely adding a 10 per cent eventuality onto the estimated cost of a undertaking with the premise that this will cover any of these possible and unknown variables. In an industry like building, this attack may be unequal, ensuing in expensive holds , extenuation, judicial proceeding, or even bankruptcy. Of equal importance, any contractor who has lost a occupation due to turning in a high command, may non wish entertaining the thought that this method of utilizing eventuality as a hazard direction tool may hold been the cause of losing a command on a occupation. A small planning and apprehension of what the possible hazard were for the contract aided by the appropriate actions, may hold allowed the contractor to hold won the command and still be in a place of being protected from these industry variables that may hold been endangering during the life of the building undertaking. In building, building directors and proprietors study hazard, the possible realisation of unwanted effects from jeopardies originating from a possible event on the building undertaking, the appraisal of the acceptableness of the hazards, and the direction of unacceptable hazards ( Hipel, 2000 ) . On a building site for illustration, the chance of a building decease ( unwanted effect ) is a hazard caused that can be caused by a safety job ( jeopardy ) at the occupation site ( event ) . Risk direction is the term for the systematic analysis and control of hazard, such as forestalling building accidents from go oning. Hazard in general pervades modern society and is widely acknowledged, it continues to do ageless contention and argument ( Hipel, 2000 ) . The definition of hazard contains two constituents: the chance of an unwanted effect of an event and the earnestness of that effect. Hazard is the chance that an inauspicious event occurs during a declared period of clip ( Royal Society 1991 ) . The ground that building, when compared to other concern industry sections, has an increased leaning for hazard state of affairss is because of the legion booby traps involved with this industry. These booby traps represent repeating jobs that significantly affect both cost and agendas for about any type of building undertaking ( Palmer 10 ) . The following tabular array illustrates these usual booby traps ( Palmer 11 ) : Owner Interior designer Contractor Failure to fund Defective programs and eyeglasses Decelerate to mobilise Owner-furnished stuffs non available Shop pulling reappraisal and stuff blessing Failure to staff undertaking Major alterations in demands Improper or delayed alteration orders Failure to supply sufficient equipment Failure to do advancement payments Failure to organize between primes Failure to organize Intervention Inadequate information Inadequate undertaking direction controls Risk direction is an of import portion of the decision-making procedure of all building companies. Hazard and uncertainness can potentially hold damaging effects for some building undertakings. Hazard can impact productiveness, public presentation, quality, and the budget of a undertaking. Hazards on a building undertaking can non be eliminated, but it can be minimized, transferred, or retained ( Mills, 2001 ) . It is recommended that directors involved in the building procedure implement hazard direction techniques from the origin of a undertaking to its shutting. While there are different direction theoretical accounts available ( see figure 1 for an illustration ) , they by and large follow a similar form. This form is modeled after the undermentioned stairss: Designation of Hazard Appraisal and Analysis of Hazard Controling and Managing of the Hazard Risk direction is non a new construct and is considered to be a systematic attack to covering with hazard. Much research has been done in rating and direction of hazard ( Kangari 1989 ) . Successful contractors must understand and pull off the hazards that are encountered with building ( Insurance Institute of America 1995 ) . Traditionally it has been applied instinctively, with hazards staying implicit and managed by judgement, informed by experience. The systematic attack makes the hazards clear, officially depicting them and doing them easier to pull off. In other words, systematic hazard direction is a direction tool, which requires practical experience and preparation in the usage of the techniques ( Mills 245 ) . Harmonizing to Godfrey ( 1996 ) , systematic hazard direction helps to: Identify, buttocks, and rank hazards, doing the hazards explicit ; Focus on the major hazards of the undertaking ; Make informed determination on the proviso for hardship, e.g. extenuation steps ; Minimize possible harm should the worst happen ; Control the unsure facets of building undertakings ; Clarify and formalise the company ‘s function and the functions of others in the hazard direction procedure. Identify the chances to heighten undertaking public presentation It has been found that the designation of each hazard is an indispensable first measure in hazard direction and is perchance the most hard. You read "A Study On Construction Risk Management Engineering Essay" in category "Essay examples" The designation of each beginning of hazard and the constituents of that hazard constituent allows the hazard point to be separated from others ( Williams 1995 ) . Consideration of each act uponing factor will simplify the analysis and direction of the hazard. In hazard designation, the cardinal inquiry to inquire is: What are the distinct characteristics of the undertaking ( hazard beginnings ) that might do such failure? ( Godfrey 1996 ) . The pragmatism of hazard estimations increases as the undertaking returns. However, the major determinations should be made early in the life of the undertaking, as eventuality stairss need to be put into topographic point to counter the hazard. So despite the troubles, a realistic estimation of the concluding cost and continuance of the entire undertaking is required every bit early as possible. The Oklahoman that possible jobs and the associated hazards are identified in a building undertaking, the Oklahoman better direction techniques and determinations can be made to guarantee that the undertaking is non a job from the start. There is a 2nd, but every bit of import, ground for the early designation of hazard and uncertainness, it focuses the attending of project direction on the schemes for the control and allotment of hazard, e.g. through the pick of a contract scheme, buying of insurance and bonding ( Mills 248 ) . After hazard is identified, the hazard must be assessed for chance of bing on the building undertaking, and possible effects from happening and analyzed. Risk appraisal is the rating of the comparative importance of an estimated hazard with regard to other hazards faced by the population, the benefits of the activity beginning of the hazard, and the costs of pull offing the hazard ( Hipel 2000 ) . The impact of a hazard can be measured as the likeliness of a specific unwanted event and its unwanted effects or loss and can be shown mathematically where: RI = L x C Where: RI = Risk Impact L = Likelihood C = Consequence Hazard and uncertainness are portion of all building work regardless of the size of the undertaking. Other hazard factors that carry hazard include: complexness, velocity of building, location of the undertaking, and acquaintance with the work. These variables must be assessed in respects to their impact on the undertaking, which is normally fiscal in construction. When serious hazards occur on undertakings the effects can be really detrimental. In utmost instances, clip and cost overproductions turn a potentially profitable undertaking into a loss-making venture. Research has showed that cost and clip marks are frequently missed due to unanticipated events that even an experient undertaking director can non expect. These events are known in progress, but their extent could frequently non be quantified. For illustration, industrial differences, delayed determinations, or changed land conditions may all be anticipated, but their likeliness and impact are difficult to foretell with any preciseness as no two building undertakings are the same ; this makes it of import to place hazard beginnings for each undertaking ( Mills 246 ) . It is recommended that it may be utile to group hazards harmonizing to simple steps of their chance and likely impact, by concentrating on what is of import and the action that controls the hazard. In a building undertaking, the result can ever be unexpected, as costs may be less than anticipated, the conditions may be sort, grosss may transcend outlook. Therefore, hazards can sometimes be viewed every bit good every bit long as they are allowed for. Indeed, it is the function of a building director to pull off hazard on behalf of the edifice client, and in return derive income or net income from the undertaking ( Mills 246 ) . Hazard analysis is the systematic appraisal of determination variables that are capable to hazard and uncertainness ( Edwards 1998 ) . The hazard analysis procedure is a portion of the hazard direction procedure in consisting the chance of happening of inauspicious events ; the scene of assuming bounds to associated uncertainnesss ; and the measuring of the possible impact of hazard event results. When building hazard is to be analyzed, some of the undermentioned hazard factors should be considered ( Insurance Institute of America 1995 ) : A. Project-specific hazard factors 1. Contract-owner related Repute of the contract proprietor Owner ‘s undertaking funding 2. Contract papers related Plans and specifications Contract term Chemical bond signifiers 3. Performance Related Project Management and supervising Size of the undertaking Complexity of the work Site and subsurface conditions The labour force and labour costs Subcontracts Materials Construction equipment Time to get down and finish the work Liquidated amendss Care warrants and care periods Weather conditions Bid spreads Geographic locations Estimated gross net income Contribution to operating net income ( loss ) Dependability of cost estimations B. Work backlog hazard factors Capacity of the contractor ‘s organisation Contractor ‘s fiscal capacity Number of contracts and hazard categorizations There are different tools and techniques used for analysing hazard and doing determinations under hazard. There are many ways to make this, from the reasonably simple to those that require a computing machine as a minimal tool. These tools have different complexnesss. Risk direction is one facet of direction scientific discipline. There are two wide classs of direction scientific discipline techniques: deterministic, and probabilistic ( or called stochastic ) . Deterministic techniques assume that the values of the determination variables are known with 100 % certainty, which is seldom the instance with building ( Flanagan 69 ) . Probabilistic or stochastic techniques on the other manus, are concerned with factors that can non be estimated with certainty, such as most informations associated with building ( Flanagan 69 ) . The following tabular array contains techniques that largely provide quantitative solutions, and integrate some subjectiveness, but are by and large used as decision-making techniques in analysing hazard and reacting to hazard ( Flanagan 1993 ) . Decision-making Technique Where they are used The Risk Premium Hazard Response Risk-adjusted price reduction rate Hazard Response Subjective Probability Hazard Response Decision Analysis -Algorithms -Means-end analysis -Decision Matrix -Bayesian Model Hazard Analysis/Risk Classification Sensitivity Analysis Hazard Response Monte Carlo simulation Hazard Response Portfolio Theory Stochastic Laterality When mensurating hazard, the likeliness, or the chance, of an inauspicious event, is normally expressed in footings of the figure of such events expected to happen in a twelvemonth ( Godfrey, 1996 ) . The effect of an inauspicious event, sometimes called harm, is frequently expressed in pecuniary footings. In the instance of human deaths or serious holds, it is more appropriate to utilize other steps, like yearss lost, or experience alteration evaluation ( Godfrey, 1996 ) . The hazard direction program should order processs that address the inactive and dynamic hazards built-in to the undertaking. The end of the program is to minimise the proprietor ‘s exposure to hazard from the start of design to tenancy and through the guarantee period, every bit good as the contractor and interior decorator ‘s hazards. The program should stress hazard consciousness. It should include processs that will place inactive and dynamic hazards, evaluate their possible loss value, and prescribe ways to efficaciously dispose of them in ways that serve the proprietor ‘s best involvements. The conventional agencies of hazard disposal are to: Extinguish the hazard, by taking an alternate class of action Shed the hazard, by allowing person else bear the load Assign the hazard to others, by understanding or contract Retain the hazard and minimise it through micromanagement ( Haltenhoff 1998 ) . The list of hazards could be significant because it should be every bit comprehensive as pos ­sible. It should be started at the brainstorming session and continued throughout the procedure of the building undertaking until it is complete. Every squad member should be hazard, quality, and safety-conscious and contribute to the list as hazards are identified. The best attack is to ever maintain a â€Å" what if † atti ­tude when be aftering action or pondering determinations. Persons involved in the undertaking should non measure hazards to find their suitableness for the list. All hazards should be for ­warded to the top direction for rating ( Haltenhoff 1998 ) . It is besides of import to keep the hazard informations for usage in future undertakings. The obvious hazards built-in to a building undertaking can be identified by undertaking members and their experience. Typically, this may be the primary beginning for the possibility of hazard on the undertaking. Experienced building companies can probably lend a starter list accumulated from past undertakings and from the hazard informations that was collected. It is of import in hazard direction for the building undertaking members to add hazards to the list as they are discovered and experienced with. Risk direction should be a standing point on every squad meeting docket, because risk-management determinations should be inactive whenever possible. Inactive deci ­sions can merely be made if the hazards are identified early plenty to ease squad action. The major risk-management solution tool to be utilized is insurance ; surety bonding is a close sec ­ond. Loss due to accidents and non-performing contractors has the highest potency of all individual hazards. However, both these hazards are inactive hazards normally dealt with on every building undertaking and should be considered. The end should be to reexamine all identifiable hazards by precedence and set up processs to decrease the potency of each one. Hazard direction is a portion of catching and building that must be micro-managed ( Haltenhoff 1998 ) . In general, it is of import to retrieve that a hazard direction system should: set up an appropriate context ; set ends and aims ; place and analyse hazards ; influence haza rd decision-making ; and proctor and reappraisal hazard responses. ( Edwards 1998 ) . The hazard inherent in every building undertaking can be assumed by another party, assumed separately, or shared by holding parties. The chief guideline in finding whether a hazard should be transferred is whether the having party has both the competency to reasonably measure the hazard and the expertness necessary to command or minimise it ( Hartman, 1996 ) . It was found that both parties must hold a clear and similar apprehension of the hazard. Contracting parties who do non hold a shared apprehension of its answerability may mishandle the hazard event by presuming that the event or its corresponding effects are non their duty ( Hartman 1996 ) . The term â€Å" ownership of hazard † has a assortment of significances including: holding a interest in the benefit or injury that may originate from the activity that leads to the hazard ; duty for the hazard ; answerability for the control of hazard ; fiscal duty for the whole or portion of the injury arising from the hazard should it happen ( Godfrey 1996 ) . In a hazard allotment study by Roozbeh ( 1995 ) , respondents were asked to put hazard associated with building into three classs: allotment of the hazard to the contractor, allotment of hazard to the proprietor, or a sharing of the hazard. The hazard allotment procedure of the respondents is shown in Table I and the degree of importance of hazard is shown in Table II. A similar study carried out by ASCE in 1979 showed that contractors were less willing to accept, or even portion hazard, preferring alternatively that proprietors accept duty for most building hazards. Responses to the two studies showed pronounced differences in sentiment sing third-party holds, Acts of the Apostless of God, damages, and existent measures of work ( Mills 247 ) . Typical allotment of hazard in a building undertaking Hazard ALLOCATION Hazard DESCRIPTION Contractor Labour and Equipment Productivity Quality of work Labour, Equipment, and Material Availability Safety Defective Material Contractor Competence Inflation Actual Measures of Work Labour Disputes Owner Differing Site Conditionss Defective Design Site Access/right of manner licenses and regulations Changes in Government Regulations Delay payment of contract Changes in Work Shared Fiscal Failure – any party Change-order dialogues Contract-delay declaration Undecided Acts of God Third-party holds Defensive Engineering Degree of Importance of Hazard Importance Hazard ALLOCATION Hazard DESCRIPTION Most Important Contractor Contractor Contractor Owner Owner Safety Quality of Work Labor and Equipment Productivity Defective Design Construction Competence/delayed payment Least Important Owner Owner Undecided Undecided Changes in Government Regulations Site access/right of manner licenses and ordinances/inflation Acts of God Defensive Engineering As discussed, building work has many associated hazards. Some of these hazards by nature are risky, and accidents can be frequent and frequently terrible on a building site. The one-year toll of deceases, personal hurts, and belongings harm in the building industry has been highly high at times ( Clough 166 ) . When one is making research on hazard direction, a batch of information sing insurance is found. That is because after building hazards are identified, analyzed, and assessed building insurance is the lone manner to safeguard against the possibility of the appointed hazard from going a fiscal menace. Insurance is one of the most common hazard direction tools available to building directors and proprietors in making a eventuality for the hazard variables that may originate during a undertaking Insurance is a pool of money, sustained by premiums paid by an correspondent group of insured ‘s, that is called upon to cover specified losingss when they occur. Premiums fluc ­tuate in response to losingss as a agency of keeping the degree of the pool. Insurance is a competitory concern where insurance companies are invariably seeking new insured ‘s. Premium charges are competitory from insurance company to insurer and adjusted harmonizing to the loss expe ­rience of the insured ‘s ( Haltenhoff 294 ) . Construction insurance is required in three countries: Owner Protection, CM and A/E Protection, and Contractor Protection. Different building bringing methods and multiple catching do non alter the traditional signifiers and coverage ‘s of insurance but trade with some of them otherwise. Construction industry insurance is a extremely specialised field and building directors are normally non expected to hold insurance experts on their staff. However, a wide cognition of insurance is necessary to assist the proprietor set up a static-risk protection plan that provides effectual coverage and is compatible with the CM catching construction ( Haltenhoff 297 ) . The possible badness of building accidents and the frequence with which they can happen necessitate that the contractor protect himself with a assortment of complex and expensive insurance coverage ‘s. Without equal insurance protection, the contractor would be continuously faced with the fleeting possibility of serious or even catastrophic fiscal loss ( Clough 166 ) . Construction undertakings normally have in force several coincident contractual agreements between different parties. These understandings can be between proprietor and architect-engineer, between proprietor and general contractor, and between the general contractor and his several subcontractors. Contracts that provide for design-construct and building direction services and the usage of separate premier contracts can present extra considerations in the dialogue of the contract. When looking at all of these agreements as a whole within the building undertaking, these contracts can set up a complicated construction of duties for amendss originating out of the building operations ( Clough 166 ) . Liability for accidents can be placed on the proprietor or architect-engineer, every bit good as on the premier contractor and subcontractors whose equipment and employees perform the existent work. Many building contracts typically require the contractor to presume the proprietor and archite ct-engineer ‘s legal liability for building accidents or to supply insurance for the proprietor ‘s direct protection. Consequently, a contractor ‘s insurance plan usually includes coverage ‘s to protect individuals other than himself and to protect him from liabilities non lawfully his ain ( Clough 166 ) . An insurance policy is a conditional contract under which the insurance company promises, for a consideration, to presume fiscal duty for a specified loss or liability. The policy itself is a legal papers incorporating many commissariats refering to the loss against which it affords protection ( Clough 167 ) . Basically, the jurisprudence of insurance is identified with the jurisprudence of contracts. However, because of its confidant association with public public assistance, the insurance field is closely controlled and purely regulated by federal and province legislative acts. Each province has an insurance regulative bureau that administers that province ‘s insurance codification, a set of statutory commissariats that imposes ordinances on insurance companies refering investings, militias, one-year fiscal statements, and periodic scrutinies. Insurance companies are controlled as to their organisational construction, fiscal personal businesss, and concern methods. In most pr ovinces insurance policies must conform to statutory demands as to organize and content ( Clough 167 ) . The province of Oklahoma has the Oklahoma Insurance Department ( hypertext transfer protocol: //www.oid.state.ok.us/ ) with the mission statement to â€Å"serve and protect the insurance purchasing populace. This will be accomplished by guaranting that consumers have available a solvent insurance market, a knowing industry from which to buy insurance, and by supplying high-quality policyholder service and instruction. To this terminal, the Department will implement the insurance Torahs and ordinances of this province impartially and expeditiously.† This organisation is an illustration of a province regulative bureau that administers the province ‘s insurance codification. A loss suffered by a contractor as a consequence of his ain calculated action can non be recovered by the contractor under an insurance policy. However, carelessness or inadvertence on the portion of the contractor will non by and large annul the insurance contract. The contractor must pay a premium as the consideration for the insurance company ‘s promise of protection against the designated loss. Many types of insurance require the premium to be paid in progress before the policy becomes a force and consequence. In the event of a loss covered by an insurance policy, the contractor can non retrieve more than his loss ; that is, he can non do a net income at the disbursal of the insurance company ( Clough 167 ) . Insurance companies can be organized as stock companies or as common companies. The stock companies are organized in a mode similar to that of a bank, and ownership is vested in shareholders. The proprietor of an insurance policy has no ownership in the company and assumes no hazard of appraisal if the insurance company encounters fiscal contraries ( Clough 167 ) . A common company is one in which the policyholders constitute the members of the sing company and association. Every policyholder of the common company is, at the same clip, an insurance company and an insured. If it happens that the premiums collected are in surplus of the losingss, the surplus is returned to the policyholders â€Å"dividends† . By the same item, if losingss outweigh income, appraisals of the policyholders may be possible. State Torahs permit common companies that satisfy certain trials to- bound or extinguish the appraisal that can be levied against the members. Consequently, the policies of many common companies are non-assessable. This varies well with the bylaws and policies of the single common company. In belongings and casualty insurance, a field of insurance particularly of import to contractors, several mutuals are among the largest companies. In life insurance likely a bulk of the largest companies are mutuals ( Clough 167 ) . With the many jeopardies that confront the building concern and the many types of insurance types that a contractor can purchase for protection and hazard direction, it could be considered to be difficult for a contractor to make up one’s mind merely what insurance is truly needed on building undertaking. In world, the contractor rather frequently has no pick. For illustration, it is standard pattern that building contracts require the contractor to supply certain insurance coverages ( Clough 167-168 ) . Construction contracts typically make the contractor responsible for obtaining coverages such as workingmans ‘s compensation insurance, contractor ‘s public liability and belongings harm insurance, and contractor ‘s contingent liability insurance. Property insurance to protect and liability insurance to protect the proprietor may be made the duty of either the proprietor or the contractor, depending on the contract ( Clough 167-168 ) . There are many illustrations of particular insurance being required by contract when the building involves unusual hazards or conditions. When the contract delegates to the contractor specific duty for obtaining certain insurance, it is customary that he be required to subject insurance certifications to the proprietor or the architect-engineer as cogent evidence that the coverage stipulated has, in fact, been provided ( Clough 167-168 ) . Some Construction contracts require the contractor to keep the proprietor and architect-engineer harmless by accepting any liability that either of them may incur because of operations performed under the contract. Most contract paperss that contain such insurance clauses are expressed in necessitating the contractor to secure appropriate contractual liability insurance ( Clough 167-168 ) . With respect to contractual insurance demands, it is ever good pattern for a contractor to subject a transcript of the contract paperss to his insurance company while the occupation is being bid and before building operations commence for analysis. The contractor is non normally an insurance expert and is non truly competent to measure the hazards and liabilities placed on-him by the contract. The contractors insurance agents or agents are qualified to analyse the paperss and rede him refering the insurance demands dictated by the linguistic communication of a given building contract ( Clough 167-168 ) . Certain sorts of insurance are required by jurisprudence, and the contractor must supply them whether or non they are called for by the contract. Workmen ‘s compensation ; motor vehicle ; unemployment ; and old age, subsister ‘s, and disablement insurance are illustrations of coverages required by legislative act. The jurisprudence makes the independent contractor apt for amendss caused by his Acts of the Apostless of skip or committee. In add-on, the premier contractor has a contingent liability for the actions of his subcontractors. Therefore, whether or non the jurisprudence is specific refering certain types of insurance, the contractor as a practical fact must secure several different classs of liability insurance to protect himself from his legal duty for amendss caused by his ain building operations every bit good as those of his subcontractors ( Clough 168-169 ) . Aside from coverages required by jurisprudence and the building contract, it is the contractor ‘s prerogative to make up one’s mind what insurance shall be carried. Such elected coverages pertain chiefly to the contractor ‘s ain belongings or to belongings for which he is responsible. It is non economically possible for the contractor to transport all the insurance coverages available to him. That is why a contractor must measure the hazard with a hazard direction program in order to make up one’s mind which tools of insurance demand to be utilized. If he purchased insurance protection against every hazard that is insurable, the cost of the ensuing premiums would enforce an impossible fiscal load on the building company. The extent and magnitude of a contractor ‘s insurance plan can be decided merely after careful survey, appraisal, and analysis. If a hazard is insurable, the cost of the premiums must be balanced against the possible loss and the chanc e of its happening and a determination must be made to what the contractor is willing to hazard. There are building hazards that are non insurable, and associated losingss must be regarded merely as ordinary concern disbursals ( Clough 169 ) . At times careful planning and punctilious building processs can minimise a hazard at less cost than the premium of a covering insurance policy. This becomes a halfway point of hazard direction. Thus the contractor may take to presume a deliberate hazard instead than to pay a high insurance premium. A contractor with experience in executing this procedure can salvage money and finally make an border over other contractors offering on the same building work. A common illustration by Richard Clough Tells of presuming such a hazard involves building that is to be erected instantly next to an bing construction. If the nature of the new building is such that the bing construction may be endangered by colony or prostration, the contractor has two classs of action unfastened to him. As one option he can include in his estimation the premium for a prostration policy. Such protection is high in cost and is by and large available merely with significant deductible sums. Alternatively, the contr actor can presume the hazard himself without insurance protection, taking to trust on his accomplishment and on extraordinary safeguards in building processs to acquire the occupation done without bad luck ( Clough 1981 ) . Insurance coverages are complex, and each new building contract presents its ain jobs. The contractor should choose a competent insurance agent or agent who is experienced in building work and familiar with contractors ‘ insurance jobs. Without competent advice, the contractor is rather apt either to incur the gratuitous disbursal of overlapping protection or to expose himself to the danger of critical spreads in his insurance coverage. The contractor can frequently cut down his insurance cost by maintaining his representative advised in item as to the nature and behavior of his building operations ( Clough 1981 ) . There are many different types of building insurance coverages, and non every policy is applicable to any one building undertaking. The types vary for each undertaking. The undermentioned checklist ( Clough 170-173 ) is non represented as being a complete list of insurance that could be needed on a building undertaking or as portion of a hazard direction plan, but it does incorporate insurance coverages typical of the building industry. Property Insurance on Undertaking All-risk builder ‘s hazard insurance – This insurance protects against all hazards of direct physical loss or harm to the undertaking or to associated stuffs and occupation equipment caused by any external consequence, with celebrated exclusions. Builder ‘s hazard fire insurance – The basic policy provides protection for the undertaking, including stored stuffs and occupation equipment, against direct loss by fire or lightning. A figure of separate indorsements to the builder ‘s hazard fire insurance policy are available that add coverage for specific losingss. Extended coverage indorsement – This covers belongings against all direct loss caused by windstorm, hail, detonation, public violence, civil disturbance, aircraft, vehicles, and fume. Vandalism and malicious mischievousness indorsement Water harm indorsement – Insurance of this type indemnifies for loss or harm caused by inadvertent discharge, escape, or overflow of H2O or steam. Included are faulty pipes, roofs, and H2O armored combat vehicles. This does non include harm caused by sprinkler escape, inundations, or high H2O. Earthquake insurance – This coverage may be provided by an indorsement to the builder ‘s hazard policy in some provinces. Elsewhere a separate policy must be issued. Bridge insurance – This insurance is of the inland Marine type and is frequently termed the span builder ‘s hazard policy. It affords protection during building against harm that may be caused by fire, lightning, inundation, ice, hit, detonation, public violence, hooliganism, air current, twister, and temblor. Steam boiler and machinery insurance – A contractor or proprietor may buy this signifier of insurance when the boiler equipment of a edifice under building is being tested and balanced or when being used to heat the construction for stick oning, floor laying, or other intents. Unlike other belongings insurances listed here, this type includes some liability coverage. This policy covers any hurt or harm that may happen to or be caused by the boiler during its use by the contractor. Installation musca volitans policy – Insurance of this type provides protection for belongings of assorted sorts such as undertaking equipment and machinery ( heating and air conditioning systems, for illustration ) from the clip that it leaves the topographic point of cargo until it is installed on the undertaking and tested. Coverage terminates when the insured ‘s involvement in the belongings ceases, when the belongings is accepted, or when it is taken over by the proprietor. Property Insurance on Contractor ‘s Own Property Fire insurance on contractor ‘s ain edifices – This coverage affords protection for offices, sheds, warehouses, and stored contents. Endorsements for extended coverage and for hooliganism and malicious mischievousness are besides available. Contractor ‘s equipment insurance – This type of policy, frequently termed a musca volitans, insures a contractor ‘s building equipment regardless of its location. Motor truck lading policy – This insurance covers loss by named jeopardies to stuffs or equipment carried on the contractor ‘s ain trucks from provider to warehouse or constructing site. Transportation musca volitans – Insurance of this type provides all-risk or named-peril protection for a contractor ‘s or proprietor ‘s edifice stuffs and equipment while being delivered. Burglary, robbery, and larceny insurance – This signifier of insurance protects the contractor against the loss of money or negotiable securities through burglary, larceny, robbery, devastation, disappearing, or unlawful abstraction. Fidelity bond – This surety bond affords the contractor protection against loss caused by dishonesty of their employees. Dishonesty, devastation, and disappearing policy – A comprehensive policy of this signifier protects against the loss of money and securities, on and off the premises, caused by dishonesty, cryptic disappearing, or devastation. It insures against dishonesty of employees, loss of money and securities, loss of securities in safety sedimentation, and counterfeit. Valuable documents devastation insurance – This policy protects the contractor against the loss, harm, or devastation of valuable documents such as books, records, maps, drawings, abstracts, workss, mortgages, contracts, and paperss. It does non cover loss by malposition, unexplained disappearing, wear and tear, impairment, varmint, or war. Liability Insurance Employer ‘s liability insurance – This insurance is customarily written in combination with workingmans ‘s compensation insurance. It affords the contractor wide coverage for personal hurt or decease of an employee in the class of his employment, but outside of and distinct from any claims under workingmans ‘s compensation Torahs. Contractor ‘s public liability and belongings harm insurance – This insurance protects the contractor from his legal liability for hurts to individuals non in his employ and for harm to the belongings of others, which belongings is non in the contractor ‘s attention, detention, or control, when such hurts or damage originate out of the operations of the contractor. Contractor ‘s protective public and belongings harm liability insurance – This protects the contractor against his liability imposed by jurisprudence originating out of Acts of the Apostless or skips of his subcontractors. Contractual liability insurance – This signifier of insurance is required when one party to a contract, by footings of that contract, assumes certain legal liabilities of the other party. The usual signifiers of liability insurance do non afford this coverage. Owner ‘s protective liability insurance – This insurance protects the proprietor from his contingent liability for amendss originating from the operations of the contractor of his subcontractors. Completed operations liability insurance – This signifier of insurance protects the contractor from harm claims stemming from his alleged faulty public presentation on undertakings since completed and handed over to the proprietor. The usual signifiers of liability insurance provide protection merely while the contractor is executing his work and non after it has been competed and accepted by the proprietor. Employee Insurance Workmen ‘s compensation insurance – This insurance provides all benefits required by jurisprudence to employees killed or injured in the class of their employment. Old age, subsisters ‘ , and disablement insurance – This all-federal insurance system operated by the United States authorities provides old-age benefits to an insured worker and his household, subsister ‘s benefits to his household when the worker dies, and disablement benefits. Unemployment insurance – This federal-state insurance program provides workers with a hebdomadal income during periods of unemployment between occupations. Disability insurance – This insurance, required by some provinces, provides benefits to employees for disablements caused by non-occupational accidents and disease. Motor Vehicle Insurance Assorted signifiers of insurance are available in connexion with ownership and usage of cars and trucks. Liability coverages protect the contractor against third-party claims of bodily hurt or belongings harm affecting the contractor ‘s vehicles or non-owned vehicles that are used in his involvement. Collision insurance, together with comprehensive fire and larceny coverage, indemnifies the contractor for harm to his ain vehicles. Business, Accident, and Life Insurance Business break insurance – This insurance is designed to reimburse the proprietor for losingss suffered because of and break of his concern. Sole proprietary insurance – A policy of this type provides hard currency to help inheritors in go oning or disposing of the concern without forfeit in the even of decease of the proprietor. Accident insurance on spouses or cardinal work forces Life insurance on spouses or cardinal work forces – This insurance reimburses the concern for fiscal loss ensuing from the decease of a cardinal adult male in the concern. It besides builds up a sinking fund to be available on his retirement. Group life insurance – contractors frequently purchase life insurance for their employees. This affords protection for each participant at a low group cost, the premium for which may be paid entirely or partially by the contractor. Extra sums can frequently be purchased by the employees at their ain disbursal. Group hospitalization insurance – such insurance screens hospitalization and surgical disbursals incurred by covered employees. Policies are frequently written to include the households of the employees. A part of the premium may be paid by the employer and the balance by the persons insured. It is of import to retrieve that insurance used in hazard direction, is valuable merely every bit long as the insurance policy is in consequence. The cancellation of an insurance policy can be lay waste toing if a loss occurs during a period for which no coverage exists. Although an proprietor may non be in a place to qualify that insurance policies can non be canceled, added protection is assured if the proprietor requires anterior presentment of such a cancellation ( Hinze 2001 ) . Surety bonds and insurance are considered to both be inactive hazard transportation devices paid for by premiums. In general, these are the lone chief similarities between these two hazard direction tools. The chief difference between insurance and surety bonds is that insurance companies presuppose that losingss will happen and surety bond companies do non presuppose that losingss will go on refering the building undertaking ( Haltenhoff 294 ) . If the contractor fails to execute in conformity with the contract, a bond can protect the proprietor. Sometimes an proprietor requires a bond from the contractor before a building undertaking is started. Many times, cogent evidence on the portion of the contractor is required to demo if the contractor is able to obtain the defined bond required by the proprietor. The proprietor may pay for this bond but wants to cognize before come ining into an understanding the sum of money required. If a contrac ­tor has an understanding with an proprietor to execute a certain range of work for a specific monetary value and does n’t finish the work, the adhering company will either pay for work to be completed or happen person to finish the work. However, the bonding company is responsible merely up to the sum of the contract ( Gould 2003 ) . Surety bonds underwrite a fiscal duty of one party to another much the same as when a note co-signer hacks up a borrower of financess. If the borrower fails to refund the financess harmonizing to the note ‘s judicial admissions, the co-signer is lawfully obligated to make so. When this occurs, the co-signer ‘s resort is to seek restitu ­tion from the borrower ( Haltenhoff 294 ) . In the building industry, a surety bond is a pledge from a 3rd party ( the Surety ) to finish a contracted duty to a 2nd party ( the Owner ) made by a first party ( the Contractor ) who can non, for whatever ground, finish the contracted duty to the 2nd party. A surety bureau is paid a premium by the contractor for pro ­viding the bond to the proprietor, and the cost of the bond is passed on to the proprietor as portion of the contractor ‘s cost of the undertaking ( Haltenhoff 294 ) . Unlike a building insurance policy, a surety ‘s credence of a contractor as a client is based on the con ­tractor ‘s fiscal resources and public presentation record, non on fiscal ability to pay premiums. The contractor ‘s capacity sing their fiscal resources and public presentation record must be established and maintained to the satisfaction of the surety if a surety-contractor relationship is to be. The fiscal and capital assets of a contractor are an indicant of ability to refund the surety if the contractor defaults on a undertaking and the surety becomes must go involved. Normally, a con ­tractor ‘s fiscal province determines the size of the building undertakings in which the contractor can offer and obtain. A contractor with considerable assets will be permitted by the surety to offer and work on undertakings that contractors with lesser assets will non. By set uping adhering capacities, sureties determine which contractors can offer which undertaki ngs ( Haltenhoff 294 ) . The building contractor is obligated to refund all costs expended by the surety to finish the contractor ‘s duties, even if it forces the contractor into bankruptcy. If the con ­tractor defers to its surety, even though the contractor to the full repays the surety, the surety may break up its relationship with the contractor. Once dropped by a surety, a con ­tractor normally will hold great trouble happening another surety company willing to supply a surety bond. Because surety bonds are required on most public sector undertakings and many private sec ­tor undertakings, losing a bonding beginning excludes a contractor from a big portion of the building market topographic point ( Haltenhoff 294 ) . Since it takes considerable clip, attempt, and resources to restore a building company as bindable, it is ne’er in the involvement of the company to be put in a place of defaulting on a surety. There are many types of surety bonds and three of them are signally of import to con ­struction undertaking bringing: command bonds, public presentation bonds, and labour and material bonds ( Haltenhoff 1998 ) . Haltenhoff described them as: Bid bonds replace teller ‘s cheques on undertakings where a command security is required as portion of a contractor ‘s command. The command security backs up a bidder ‘s pledge to accept a con ­tract award if offered. If the contractor refuses an award, or for some ground can non come in into the contract, an sum equal to the difference between the contractor ‘s command and the following highest command is forfeited by the contractor to the proprietor ( normally as liqui ­dated amendss ) . As liquidated amendss, the sum forfeited can non transcend the difference between the commands or the face value of the command security, whichever is less. If a command bond is provided as security, the surety is pledged to pay the difference, if the contractor fails to make so. The extent of the surety ‘s engagement is stated in the bonding papers. Performance bonds backs up an awarded contractor ‘s pledge to finish his contracted duty to the exact demands and footings of the contract paperss. In the event it is determined that the contractor will non or can non finish his obliga ­tions, the surety is pledged to accept the duty in sort for the contracted sum. The surety has several options. The contractor can be retained by the surety and be made to finish the undertaking. The surety can replace the contractor with another contractor ( s ) . The surety can pay the proprietor the face value of the public presentation bond. In either of the first two options, the outstanding sum due the contractor at the point of default is paid to the surety when earned, harmonizing to the footings of the contract. The nature and extent of the surety ‘s engagement and its specific options are stated in the public presentation bond. Labor and material payment bonds protect the proprietor from paying twice for the labour, stuffs, and services in project building. In the event a party that docs non hold a contract with the proprietor but who has one with a party that has a contract with the proprietor is non paid by the party with the contract, the party that was non paid normally has a legal right to reassign the unpaid sum to the proprietor for direct payment. Most provinces have mechanic ‘s lien Torahs that allow unpaid parties to efficaciously go co-owners of an proprietor ‘s belongings to the dollar value of the unpaid sum. To cast the co-owner ‘s fiscal rights under the lien, the proprietor must pay the sum owed, irrespective of whether or non it was antecedently paid by the proprietor to the party who owed the money to the claimant. The labour and material payment bond shifts the duty for payment to a surety, alleviating the proprietor of the claim. In some legal powers, liens against publ ic belongings are non permitted to supply the same fiscal claim chance to contractors and providers involved in public undertakings, parties who hold contracts with proprietors must supply a labour and material payment bond. The extent and footings of the surety ‘s duty is stated in the bond provided to the proprietor by the contractor. In building, contractors maintain something called an experience qualifier, which is numerical in nature. A contractors ‘ experience qualifier ( EMR ) encourages contractors to better their safety public presentation while leting the insurance industry to roll up the needed financess to pay for the losingss. The insurance premium nest eggs offered through the experience-rating program about ever outweigh the disbursal needed to better safety public presentation. In other words, safety does so pay. Owners use the EMR to estimate the safety public presentation and experience of the general contractor or premier contractor, and the general contractor uses it to estimate the safety public presentation and experience of its subcontractors. An experience qualifier of.80 agencies that the contractor will have a 20 per centum price reduction on its workers ‘ compensation premium. A contractor with an experience qualifier of 1.20 will pay a 20 per centum surcharge on its workers à ¢â‚¬Ëœ compensation premium ( Lew 1999 ) . The experience qualifier is something that is normally an of import portion of the hazard direction plan. A batch of determinations based upon analysis are focused around how they will impact the EMR. Harmonizing to J.J. Lew ( 1999 ) , an experience qualifier had the undermentioned features for a contractor: An EMR is more a contemplation of past safety public presentation than current safety public presentation. The EMR is calculated by three full old ages of paysheet and loss information, stoping one twelvemonth prior to the effectual day of the month of the qualifier. A contractor might hold experienced good safety public presentation in the past, but has let the safety procedure oversight, and will non see the effects for possibly one or two old ages. Under a traditional CCIP or OCIP, the employer ‘s experience rate is the rate the employer has with the province for that peculiar policy twelvemonth as written by its bearer of record. Under a wrap-up, one EMR evaluation is established for the full undertaking and the experience is determined by loss choices conducted by the insurance bearer that is composing the policy. This evaluation does non go with the employer — it is merely used for the wrap-up undertaking. In one case, it does go, and that is if there are subsequent stages of the same undertaking. In puting up a Controlled Insurance Program on a undertaking, it is noted that a significant sum of item is necessary in these plans. How these inside informations are administratively handled tends to order the success of the plan. If set up decently, the followers can besides be considered good due to execution of a CIP: Administrative betterments. CIP plans provide a system for tracking insurance credits, paysheets, and fiscal coverage on a building site. In add-on, certifications of insurance do non hold to be checked for each contractor at the jobsite, extinguishing the possibility of doing mistakes in look intoing the certifications of insurance for each contractor. CIP besides allows for a system for maintaining path of a contractor ‘s experience qualifier ( EMR ) . With a CIP, there is merely one certification of insurance, thereby extinguishing confusion. Improved undertaking safety. The usage of a CIP enables the operation of an efficient, cost effectual, and results-oriented safety plan. This is made possible through the usage of a co-ordinated attack to project safety, typically through the usage of a Program Safety Consultant. In add-on, smaller subcontractors may non be able to supply sophisticated loss control plans on their ain. By utilizing the CIP, the smaller subcontractors can take advantage of extremely proficient skilled safety directors and loss control forces. Proactive. CIP plans are proactive in that through better planning, belongings harm accidents can be reduced or kept from happening while still easing the timely completion of the building undertaking. Allows for competitory commands. The primary benefit that a CIP provides to an proprietor is the chance for obtaining more competitory commands for its building undertakings. This decrease in undertaking cost is made possible by liberating the contractor and all tier subcontractors from the legion and time-consuming insurance-related duties at a building site ( Lew 1999 ) . Godfrey ( 1996 ) found that the greatest grade of uncertainness is encountered early in the life of a new undertaking. Decisions taken during the earliest phases of a undertaking can hold a really big impact on its concluding cost, and continuance. Change is an ineluctable characteristic of any major capital undertaking, but its extent is often underestimated during these early stages ( Mills 246 ) . A technique frequently ignored is to avoid claims is cultivation of a good client relationship. Honesty in attack, regard for the client ‘s intelligence, grasp of the proper function of a professional advisor, and common courtesy ( replying phone calls and letters ) are possibly the best techniques to avoid claims and manage building hazards. These are non-legal considerations in add-on to other types of pull offing hazards ( Sweet 316 ) . In the terminal, the load of duty for placing hazards and covering with them remains with the party that carries the hazard. Appendix 1 contains a checklist of points to be considered in a hazard direction plan provided by the Association of General Contractors ( 2001 ) . Risk direction will non take all hazard from a building undertaking ; its chief focal point is to guarantee that hazards are managed in the most efficient mode. Undertaking directors will acknowledge that the clients must ever transport certain residuary hazards. This hazard must be analyzed in an organized and systematic manner sing the full impact of clip and cost on the undertaking. Risk direction is non intended to kill off worthwhile undertakings, or to stifle degrees of investing. It aims to guarantee that merely undertakings that are truly worthwhile are sanctioned. When using hazard direction techniques, the attitude of the director is of import and stairss should be taken to guarantee that every bit much pragmatism as possible is included in the analysis. Risk direction should be viewed as a positive procedure, and can be one of the most originative undertakings of the undertaking director. Its purpose is to bring forth realistic outlooks and increase the control of the procedure. In add-on, it can open the manner to happening advanced solutions that may non hold otherwise been considered ( Mills 251 ) . Appendix 1 Insurance/Risk Management Checklist Workers Compensation Increase employers liability bound to $ 1,000,000 Reviewed alternate evaluation programs, confined, self-insurance, deductibles, etc. Coverage applicable in all but monopolistic fund provinces Defense Base Act Voluntary compensation coverage Status of executive officers or spouses Status of United States-based employees sent outside the state Foreign employees Aircraft indorsement Repatriation disbursal United States Longshoremen ‘s and Harbor workers ‘ Compensation Act, Maritime, and Jones Act exposures Federal employers liability coverage Stop-gap employers liability coverage Workers compensation deductibles, where permitted Policy day of the months consistent with umbrella extra liability coverage Joint venture policies Checked categorizations and audits Checked overtime charges Over-controlled, contractor controlled or other wrap-up plans Experience Rating Modifier Broad signifier named insured Coverage for newly-formed entities Advance notice of cancellation by earner, 60 twenty-four hours notice of cancellation and/or non-renewal Blanket release of subrogation if required by contract Commercial General Liability ( CGL ) Happening ( CGL ) policy form— $ 1 million/ $ 2 million/ $ 2 million Omission of selected contractual liability exclusions Completed operations and merchandises liability coverage Broad signifier belongings harm coverage broadened Checked pollution coverage for jobsites Notice of happening amended No exclusion of detonation, prostration, or belowground harm Personal hurt liability coverage, take exclusion ( 4 ) Limits of liability General sum bound considerations Per undertaking sum and per locations Broad signifier named insured indorsement Blanket extra insured if required by contract Blanket release of subrogation if required by contract Verified wide signifier liability extensions included Additional insured/protective liability demands Adequate fire legal liability coverage and/or release of subrogation for harm to leased premises Verified host spirits liability coverage included Employee benefit liability coverage, bound of $ 1 million Coverage for foreign operations Policy day of the months consistent with umbrella extra liability coverage Owned or non-owned watercraft liability coverage Owned or non-owned aircraft liability coverage Limits of liability consistent with extra umbrella demands for underlying Joint venture yesteryear and nowadays Residual wrap-up coverage Coverage for newly-formed entities Advance notice of cancellation by earner, 60-day notice of cancellation/non-renewal Business Car Policy Liability coverage applicable to any car, symbol â€Å" 1 † Minimum limits— $ 1 million Check nomadic equipment against car definitions Complete and accurate agenda of cars, garage locations, coverages, and deductibles Automatic coverage for to boot acquired cars without notice to earner Automatic coverage for car physical harm Auto medical payments coverage Personal hurt protection, if desired No-fault benefits, where applicable Underinsured automobilists liability coverage Drive other auto coverage options Assigned drivers who have no personal car insurance Partnerships: Status of non-owned car coverages Additional insured ‘s: Lessors Individual named insured indorsement Auto physical harm coverage Distinct coverages and deductibles by categorizations of cars Deductibles applicable to comprehensive coverage Deductibles applicable to hit coverage Consideration of alternate deductible degrees, premiums Hired cars Foreign car exposures Politician How to cite A Study On Construction Risk Management Engineering Essay, Essay examples

Marriott Hotels

Executive Summary/ Overview of the company: The international hotel industry has a lot of potential with more people participating in leisure, business and tourism all industry participants are formulating and implementing top notch strategies and offering premium services and products activities.Advertising We will write a custom report sample on Marriott Hotels – Product: â€Å"Expensive Rooms† specifically for you for only $16.05 $11/page Learn More The flagship brand of Marriott International, the Marriott Hotels and resort is one of the world’s most leading and legendary hotel franchises with over 2,800 hotels in about 68 countries. The hotels generate close to three quarters of the total income generated by Marriott International and the rest from timeshares. Marriott international is not only well renowned in the hospitality setting but in the top companies of the world. Establish by Willard J. Marriott in 1927 as a hospitalit y company at first known as Marriott Corporation in Arlington County, Virginia but was later separated into two, the Marriott international and the Host Marriott Corporation in 1993. The Marriott’s headquarters today is based in Washington D.C. and headed by J.W. (Bill) Marriott, Jr. (son of founder Willard J. Marriott) who is the chief executive officer of the franchise. Marriott International is simply Marriott group’s hotel and lodgings chain with the amount of business transacted over recent times, is approximated at about US$ 13.3 billion. The hotel chain employs close to 15,000 workers worldwide and operates a number of full service hotels and resorts around the world. A poll conducted by times magazine in 2009 placed the Marriott Group fourth overall in an employee fulfillment research done among UK companies. Marriott’s endeavor to offer the best luxurious service to their customers and clients is well embodied in the words and thinking of the founder of the franchise, Willard J. Marriott: â€Å"†¦A man should keep on being constructive, and do constructive things. (Lim, 2009). Marriott therefore intends to exist and compete with other industry performers such as Hyatt and Hilton and outshine them by offering the complete customer experience.Advertising Looking for report on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Overview of the Company Marriott International Inc. is one of the premiere global operators and franchiser of hotels and associated lodging services. As of the end of 2006, the business owned over 2,800 hotels with a presence in 68 nations. It acquires approximately three quarters of its income from its hotel business and one forth from timeshares. The company has more than 85 percent of its possessions rooted in the U.S. In the fiscal year 2006, the firm announced revenues of USD 12.2 billion along with net proceeds of USD 608 million in comparis on to returns of USD 11.6 billion with net profits of USD 669 million in the previous year. The growth of the company in terms of compounded annual growth rate (CAGR) was recorded at 7.4 percent in the time span of six years from 2000 to 2006 (Oviedo-Garcia, 2008). The Marriott Hotels and Resorts is the flagship brand of the Marriott International. It has several full service hotels and resorts. The head quarters of the company is situated in Washington D.C. It is one of the most renowned companies in the World, not only in the hospitality industry but also in the foremost companies in the World. In a recent poll conducted by the renowned The Times magazine in the year 2009, the company was placed in the fourth position in all the companies of UK in the sphere of employee satisfaction. The brand operates more than 482 hotels and resorts worldwide (Cho, 2010). Initially the company was named as Marriott Corporation. It was a hospitality company and the company existed from 1927 to th e year 1993. The founder of the company was Willard Marriott and Frank Kimball. The first Marriott Hotel was opened in a place called Arlington County, in Virginia. Historically the first international hotel was situated in Mexico in the year in the year 1969. In the year 1993, the company was divided into two parts, the â€Å"Marriott International Corporation and the Host Marriott Corporation† (Cho, 2010).Advertising We will write a custom report sample on Marriott Hotels – Product: â€Å"Expensive Rooms† specifically for you for only $16.05 $11/page Learn More Marriott International It is basically the hotel chain of the Marriott Group. In recent calculation the hotel chain has around 3100 investments which provide lodging facilities in the United States, and over 67 in other countries. The recent turnover of the company is estimated at US$ 13.3 billion. More than 150000 employees work in the Marriott hotels chain worldwide. Ther e are different business segments in the hotel chain and they are as follows: Full Service and Lodging Select Service and Lodging Extended Stay and Lodging Timeshare Synthetic fuel. Some of the very important hotels under the brand are like Marriott Hotels and Resorts, J.W. Marriott Hotel and resorts and Renaissance Hotels and Resorts. In our discussion we will concentrate on the Marriott Hotels and Resorts. The longest running hotel in the Marriott brand is the Key Bridge Marriott which is situated in Arlington. It was opened in the year 1959. If we look at the history of the company we will surely see that the company has rapidly evolved into an international brand name (Oviedo-Garcia, 2008). One of the very important acquisitions of the Corporation happened in the year 1995. In that year Marriott purchased 49% of the share of the Ritz-Carlton Hotel Co. The other very important brands in the Marriott family except the Marriott Hotels and the Ritz Carlton Hotel Corporation are, R enaissance Hotels and Resorts, Marriott Conference Centers, Courtyard ( by Marriott), Fairfield Inn, Springhill Suites, Residence Inn, Tower place Suits, Marriott ExecuStay, Marriott Executive Apartments, Horizons, Ritz-Carlton Club, Marriott Executive Apartments, and the MVCI or the Marriott Vacation Club International (Cho, 2010). Important Brands of Marriott International Renaissance Hotels: The Renaissance Hotel Chain is a boutique like hotel chain which is managed by the Marriott Group. There are a number of hotels in the chain, and some of them are also managed by other franchise license. Marriott Conference Centers: Especially designed for Corporate and other types of conference, the Marriott Conference Centers are one of the most important brands of the company. Courtyard by Marriott: This is a type of hotels that is designed for the business clients and customers. The rooms are fully equipped with different types of facilities, and they are direct competitors of the hotels like Wingate Inn and the Hilton Garden Inn, which are regarded as very important hotels in the Hospitality Industry (Anastasiadou, 2008). Fairfield Inn: It is a low cost hotel brand which is also franchised by the Marriott International. The basic purpose for the hotels is that to provide a place to sleep for the guests with few amenities. The specific chain of hotels allows rents in a very cheap price and is very popular among the regular travelers throughout America. SpringHill Suites: This is especially designed for the all purpose suite system in hotels. As in the year 2009, there were 210 SpringHill Suites in all of America (Lugosi, 2008). Company Mission According to J. Willard Marriott:Advertising Looking for report on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More â€Å"A man should keep on being constructive, and do constructive things. He should take part in the things that go on in this wonderful world. He should be someone to be reckoned with. He should live life and make every day count, to the very end. Sometimes it’s tough. But that’s what I’m going to do† (Lim, 2009). The vision of the Marriott International is to become the Numero Uno in the World in the sphere of Hospitality Service provider. To achieve the target, the business goals of the company centre on the growth of the company, along with special care to the guests and finally keep a strict check on the financial developments of the company (Chung, 2008). As with all the other companies there are some very important foundations of The Marriott International. They are like the employees, the guests, the shareholders, the service providers. In the next paragraphs we will discuss the different visions of the company and how they will help the company to realize their mission. The Business of the Marriott In the hospitality management sphere, Marriott International is the best. They are devoted to bring their guests comfort and satisfaction with their services. There is no blue print in their success, and their only choice is to care their guests in the most efficient as possible. The company believes that they will continue to expand their business with their skills and they will successfully utilize their skills for complete customer satisfaction in different areas, without losing their traditional customer bases (Oviedo-Garcia, 2008). The Shareholders of Marriott As with any business, whether it is international or national, the interests of the shareholders are highly valued in the context of the Marriott Hotels. According to their website, they will guarantee of unquestioned strength to their share holders. To keep this, the company strictly maintains the highest standards in the industry. They also regularly check their pos itions in the stock markets. The financial strength and the market factor help the company to complete their mission. They also give surety of strong and sustainable growth for their shareholders (Cho, 2009). The Customers The most important pillar of strength of the Marriott International is their customer base. The company promises that they will provide World Class services to their customers in every circumstance. The Employees The employees of the Marriott thrive to set high expectations from themselves and the business. They employees will try to build an employee culture among the organization. Individual growth is highly appreciated in the organization. Other than that working successfully in a team will help to realize the expectations of both the management and the guests of the organization. All the employees are determined to spend some of the times to make the community and the environment a better place to live (Cho, 2010). Mission Statement Providing the guests with the finest services possible in the given atmosphere. Every service that will be rendered to the guests and the patrons will be done effortlessly, and this will ensure â€Å"fair price† for the customer. On the other hand it will interest the stock holder for a sound investment choice (Anastasiadou, 2008). Customer is always the first choice, and meaning this as a whole. The Marriott Group is among the World Leaders in innovation, efficiency, along with quality and finally customer satisfaction. Everyone working in the organization has to take care of the brand name of the company, and value it more than anything else (Lim, 2009). Always expect the best from every person working in the concern. Corporate Social Responsibility and Business Ethics According to J.W. Marriott, Jr., the chairman and CEO of the Marriott Hotels, â€Å"We need to stand together to ensure that the travel and tourism industry is always a positive force for good in the world† (Chung, 2008). The Marriott Hotels is a World famous brand and they try to take different corporate social responsibilities to help the society in different ways. The company strives to high ethical quality along with uncompromising standards in their different procedures. The code of business that is followed in the concern enables the managers and the employees to stick to the right path to conduct business. And for that the seniors of the concern always take out their hands of support to the juniors. The processes include many aspects, like advising the employees to the laws related to anti-trust. Unfair contributions from any sphere of society and most importantly, any unfair political connection is strongly reprimanded in the Marriott Hotels. The organization says a strict no to any kind of bribery, whichever type it may be. Also they do not unfairly use their purchasing power. The training program in Marriott Hotels has a specific chapter called â€Å"How We Do Business Is as Important as the B usiness We Do† (Lugosi, 2008), and it teaches the employees what are the required qualities from an employee, and most importantly what are the different human rights the organization thrives to maintain. All the employees, including the senior managers have to go through a yearly internal survey based on the â€Å"Legal and Ethical Conduct† (Lugosi, 2008) of their actions. It is done to see if all the employees adhere to the Marriott Hotel’s â€Å"Ethical Conduct Policy† (Lugosi, 2008). The company also respects the protection of human rights in all the spheres where the business of the company is spread. All the business operations of the company are designed according to their Human Rights policy. Human Trafficking and Exploitation of Children are the two main agendas of the organization. From 2006, Marriott Hotels published their first Human Rights Policy Statement. All the rights issued in the statement have been conveyed to the employees and also pub lished internationally to show the organization standing against these crimes. Most importantly, the Human Rights Policy of the Marriott Group is carefully alienated with the Government and other Non-Governmental Organizations who are relentlessly working on these aspects. The organization regularly and very actively engaged with these groups to endorse the best practices with the aim to stop this improper human conducts. Another very important aspect of the organization is their relation with the suppliers. As per the business context of the company, the suppliers play a very important role in the aspect of maintaining their excellent track record in the field of hospitality. They ensure that they only use high quality products and services. They always endorse organic products as the raw materials and many suppliers have been benefited for their choice of raw materials. And as expected, they want their suppliers to follow all the applicable laws and follow a very high ethical stan dard. And in most cases both the parties maintain the standards and the business becomes ethical (Oviedo-Garcia, 2008). Expensive Rooms The Marriott Hotels guarantee the best deals available in the sphere of hotel rooms. As per the rate of the customer, the organization tries to provide the best suited room for the customer with the help of their â€Å"Marriott Look No Further Best Rate Guarantee† (Cho, 2009) program. It is said to be a generous rate matching program offered by the hotel chain for all their hotels. In the Marriott hotels there are different deals available as per the expensive rooms are concerned. All of them have world class facilities and services. In September 2005, the company unveiled their new rooms. The rooms were made by looking at the new generation and they feature updated technical aspects. Marriott have a special edition of beds that are called Marriott Bed.. All the luxury rooms in the Marriott chain of hotels have these facilities (Oviedo-Garcia , 2008). In the JW Marriott Hotels (it has total 46 hotels under their brand name) the most expensive rooms have a number of facilities. From special butlers to pool tables, the rooms define luxury. The guests have their own luxury cars for transport, with chauffeurs. All the rooms have in built home theater system; libraries and sometimes a multifunctional gym for work out too. J.W. Marriott, another very important flagship brand of the company has special amenities for the most expensive hotel rooms. All the guests with having special butlers and chauffeurs, get free entry to the very special destination lounge called â€Å"Mixology†. In some of the hotels the guests are treated with complementary rides to riverside theme parks. Renaissance Hotels are specially designed to cater to the upper class of the population. The hotels have established its reputation as the boutique hotels in United States. The Ritz Carlton Hotel is one of the most published hotels in this chain of the hotels, and their expensive rooms are something to awe for (Cho, 2010). Generally in all the properties of Marriott International, the most expensive rooms are suites. The suites are especially designed for the ultimate pleasure and satisfaction of the customers. All the suites have multiple rooms and they have more space than any standard hotel room and most importantly, more facilities as mentioned earlier. One of the most important aspects of the Marriott Hotels is that they provide special dinning and office facilities in the suits. In properties like Marriott Conference Centre, the suits are designed for the business purpose and in some suits they can hold official business meetings too. According to the management of the Marriott Hotels, most of their expensive hotel rooms are being used by a special class of people. Sometimes people from wealthy families check into the hotels when there is some remodeling done in their homes. Sometimes film stars pop artists and others al so stay in these rooms. Political leaders also prefer to stay in these rooms (Anastasiadou, 2008). External Analysis A company’s strengths and weaknesses take a critical look into internal factors such as company resources, culture and structure while on the other hand opportunities and threats take a look at a company’s external environment (Wheelen and Hunger 2002). In the business management, external analysis is one of the most important factors of the existence of the company. The basic external analysis is an attempt to match an organization with the outside impacts in which the business is situated and how this influences overall strategy. To understand the external analysis on the Marriott International, we have to concentrate on one property of the hotel. The SWOT analysis on the Hotel is a very important aspect in the case because it assists companies to develop strategies that will either assist them capitalizes on strengths and opportunities while at the sa me time minimize weaknesses and avoid threats (Lugosi, 2008). Opportunities: Emerging Asian Travel and Tourism markets are expanding worldwide, together with the possibility of come up with low-end brands, distinction amongst hotel services offered, Marriot can benefit from the decreased cost of real estate in the United States and Middle East and it can venture on eco-tourism. Furthermore economic integration of markets worldwide also offers a wider range of opportunities that Marriot can pursue using its corporate and unique business strategies (Camillus 1986). Threats: one of its brands, Timeshare, is decreasing on popularity; it was greatly affected by the economic meltdown, which lowered consumer’s spending power; threat from terrorists and extremists who ride in the philosophy of anti Americanism especially in Asia and furthermore tight competition from other industry participants such as Hilton and the Grand Hyatt pose a threat to the comfort that Marriot may enjoy in the hotel and hospitality market and may affect future profits and volume of consumers that Marriott serves therefore Marriott should further create long-term and periodic tactics that will minimize the threats that face their business (Lim, 2009). Internal Analysis The internal analysis of a company basically focuses on the strength and weaknesses of the organization itself, and how they impact the total business scenario of the concern and company strategies (Wheelen and Hunger 2002). In this aspect one thing is very important, what can be determined as strength can change into the weakness in another aspect. There are factors like finance, marketing, and the service providing capabilities, the macroeconomic factors, the technological changes and most importantly the different legal matters that come with the maintenance of the properties (Chung, 2008). Strengths: One of the key strengths of Marriot is that it has a wide range of brands, Marriot strategic locations which as quite advantageous and convenient for consumers; furthermore Marriot has experienced top and well experienced employees who assist in delivering its premium hotelier services making it a global leader in the hospitality market; furthermore Marriott heavily relies on innovative communication techniques such as its website and social networking in conducting its business; Marriot has focused divestiture efforts particularly with international companies; it has implemented successful strategies to attract and retain a pool of staff; it has embraced eco-friendly ways in its operations; and its culture retention balancing against the identities of the products. It is the above strengths that make Marriot’s aggressive expansion and competitive business strategy succeed (Chung 2008). Weaknesses: Marriot Has an organizational culture of heavily relying on the United States market instead of global markets which may offer more opportunity and growth and revenue furthermore over-reliance on luxury products instead of having offer low-end products which may double consumer traffic. Another possible weakness may arise out of the flat organizational structure that Marriott uses such a structure may cause confusion amongst management and also make it hard or difficult for expansion programs to take place because it is highly unsuitable for very big organizations with many employees (Koontz Weihrich 2009). But Marriott has minimized these threats by strategically positioning their hotel chains in high end areas that are highly secure and furthermore contracted security firms of high caliber. Long Term Objectives As per definition, the long term objectives of an organization can be dubbed as â€Å"the performance goals of an organization, be it commercial or non commercial, and the plans are intended to be achieved within five years(in some cases ten years)â€Å" (Lim, 2009). Generally, the long term objectives of a concern deal with different aspects of the concernâ€℠¢s development. As per the classical systems, there are seven different types of Marriott Hotels by the differentiation factors like location and types, and each of the categories are targeted to a different customer base. The hotel industry is one of the most important segments of the service industry. The industry is guided by all the philosophies by the concern. So many commentators believe that to attain all the objectives in the hotel industry, one must do as per their plan and let see what happens. The long term objectives for the Marriott Hotels are mainly concerned with the expansion of the market and retaining its market leader status. For any organization, rather than multinational concern or brand name like Marriott Hotels, plans can be viewed as a direct expression of the different strategies of the concern. For the successful completion of all the objectives, the basic properties of the concern, like the employees and the funding are two most important factors (Porter 2 004). The organization, before enlisting any employee takes them through a thorough training program that helps the employees to integrate inside the organization better and understand all the company policies. But to ensure that the employees understand the long term objectives of the company. It is really tough for the new recruits in a company to understand all the objectives of the company as well as ensure revenue. In this aspect the company has to rely on the effective recruitment procedures. Before recruiting any person the company has to decide what the long term objectives are and how the new recruitments will fit into the scheme (Cho, 2009). After that, they will have to select the candidates who can successfully mould themselves with the different needs of the company as time passes. The employees are the main pillars of a company and only they can make a company successful, and as Marriott always takes care of their employees they are ahead in the aspect. Another very im portant aspect of realizing the successful long term developments is the company must keep a steady finance. It can be insured by a healthy market position. It will lure the investors to invest more and more money on the Marriott Hotel, which can help the organization in many ways. They can increase their hotel chain by acquiring new properties, by building hotels or taking lease on hotels, or redecorating to attract new customers. In recent times corporate tie ups play a very important role in the hospitality industry. The Marriott Hotels can try to attain as much as corporate tie ups as possible, which will indirectly promote the brand name of the hotel chain. All these will be considered as the long term objectives of the Marriott Hotels (White, 2005). Business Strategy Keeping in line with its vision and values Marriot strives to be the top most and well known and famous, especially for its products, skills and expertise as a hospitality service provider worldwide. Achieving thi s is not easy that is why Marriott Hotels has set out the company’s organizational objectives which focus on giving special attention and concern to guests while still at the same time checking on the business’s financial growth, all this with an aim of growing the company and maintaining a very competitive strategy that aims to highly differentiating their products (Porter 2004). Marriott hotels has divided its operations into five different business categories which include: Full Service and Lodging; Select Service and Lodging; Timeshare; Extended Stay and Lodging; Synthetic fuel (Camillus 1986). Marriot intends to use competitive strategies to appeal to the market. Companies can either choose to differentiate their products while serving a narrow or a wide market (Bradford et. al 2000). The other option is for a company to follow a cost leadership competitive business strategy which mainly aims to attract consumers by offering affordable products for a wider or na rrow market. Marriot through its expensive rooms pursues a highly differentiated product and service approach which often involves charging premium for its services. Therefore Marriot is able to attract consumers who desire to enjoy the highest quality of products and services and are willing to pay for it. Not every Hotel within the industry can be able to pursue such a strategy and therefore in turn Marriot is able to stay ahead of other Industry participants. Marriott’s strengths lie in its strong brands that make it well renowned and a market leader in its industrial market share. It has based its operations in most of the considerable in size, extent, degree, and significance markets worldwide through its brands that include Marriott Hotels Resorts, JW Marriott Hotels Resorts, The Ritz-Carlton, Bulgari Hotels Resorts, Grand Residences by Marriott, Courtyard by Marriott, and Towne Place Suites by Marriott. Marriott enjoys extraordinary brand recall for its products. An other aspect that makes it a cut above the rest is the numerous awards that it has achieved, it was voted the most admired company, 10 years in succession in 2008 by fortune magazine. This list is comprised of players within the hospitality industry and they evaluate the industry using eight accepted standards used in making a decisions and judgments about the hospitality service industry which include; corporate asset utilization, social accountability, financial reliability, management quality, long-term investments, innovation, quality of services and products and people management. The franchise has embarked on launching an innovative sales initiative focused on building a customer base centered at or constituting the customers’ needs. This strategy is termed as the- Sales Force One. The newly launched strategy is intend or planned to prove strong enough to enter and spread through unexploited new markets and in the process simplify Marriott’s sales process for c ustomers. This is made possible du tot the strategy’s structure formation which enables customers to transact business with just a singular contact point that acts as a representative of the Marriott franchise (Camillus 1986). This new innovation was brought about by researches undertaken by Marriott identified less motivating general tendencies, behaviors and movements from their customers due to a feeling of disappointment, disorder, exasperation, and weariness caused by unsatisfied desires as a result of having to go through many Marriott employees in booking and reserving rooms. By identifying with this situation where customers found it a very complex method of making their bookings Marriott undertook researches to find out whether their current strategies were efficient and effective in the growth of sales performances among the employees and the business as a whole in both external and internal environments (Chung 2008). Their researches took into consideration all sta keholders associated to it and its employees too as they are the major driving force behind Marriott international. Reactions obtained from a cross-section of respondents who included the company’s sales leaders and contacts interviewed proved clearly and convincingly the need for the franchise group to put in place a logical and unconfused framework of roles and responsibilities for achieving individual goals within the members of the sales team. Consequently the Marriott group in undertaking the creation and implementation of the Sales Force One strategy intends to strengthen and focus on a more customer base centered sales process that defines individual and personal preferences and in turn provides customers with personal sales contact people (Bradford, Duncan Tarcy 2000). Strategies The company can take several strategies to retain its position and competitive edge in global market and further enhance on its popularity. The strategies will centre on keeping the loyal cu stomer base alive and adding up new customers. They will have to regularly update their facilities to ensure they must not lag behind in the break neck completion of the global market (Porter 2004). The hotel industry is a highly dynamic industry because consumer needs are always changing and the business environment is subject to technological advancements and other forms of innovation that take place regularly. Keeping the Customer base: Every company in the consumer World has a loyal customer base, and the loyal customers are the most important factor of their company. The company has to device some important promotional strategies so that the customers always come back to their concern. These strategies include providing a superior customized service for its premium products that is consistent with the specific consumer needs (Bradford, R. et. al 2000). Trying to acquire new customer: As with all the aspects, the hospitality industry is getting competitive day by day. So the com pany has to device new strategies to allure new customers and try to retain them as far as possible. These will increase the boundaries of the company in a new level. The Marriott has devised many plans and they have recently offered different types of economic class hotels for customers from all the economical bases (Cho, 2010). Furthermore consumers are likely to refer to others using word of mouth and therefore the leadership and staff of Marriot has made it clear to the staff the importance of maximizing the consumer experience so that consumers will always have something good to say. When consumers use Word of mouth and lure other consumers it is cheaper than using other means such as advertisement. Increasing Security: In recent times security has been a very important concern for the Marriott Group. A number of hotels of the Marriott group hotels have been under devastating terrorist attacks in recent times. These attacks not only affect the company financially, they also ins tall fear into the minds of the guests too. The company must take strong security policies and try to increase the budget on the security aspect more than ever. Trying to acquire new properties: There are a huge number of Marriott Hotels throughout the World, but still they have to keep on concentrating to expand their business. Expansion and is a corporate strategy that involves either acquiring and opening up new branches with the aim of serving a larger market in order to increase revenue. Always keep an eye on the competitors: Every day new and new organizations are entering into the hospitality market and many of them are entering into the field with very huge financial backing. It is a known fact that Marriott is a very important brand name, but still they have to keep an eye on the companies and what the strategies the companies are taking to make their concerns popular. Marriott has to devise different strategies to encounter these concerns only to keep their customer base ( Anastasiadou, 2008). Organizational Structure: Organizational structures within companies cause or allow views to be brought forward, or presented as a model to be studied on how those businesses are managed and run. If an organization has a clear framework/structure put in place, it is made very clear within the departments in the organization on who does what and so forth thus leaving no room for sloppy work and blame games erupting due to unfulfilled objectives. Different organizations employ different organizational structures depending on their objectives and what they intend to achieve after a set period of time. These structures may either be flat or tall for example Marriott’s organizational structure takes a flat format. These structures are also used to measure subordinates responsibility levels depending on which department they are in. Organization Structure Organizational structures try to explain the relationships between authorities and communication lines in t he organizations (Koontz Weihrich 2009). Organizational structures within companies cause or allow views to be brought forward, or presented as a model to be studied on how those businesses are managed and run. If an organization has a clear framework/structure put in place, it is made very clear within the departments in the organization on who does what and so forth thus leaving no room for sloppy work and blame games erupting due to unfulfilled objectives. Different organizations employ different organizational structures depending on their objectives and what they intend to achieve after a set period of time. These structures may either be flat or tall for example Marriott’s organizational structure takes a flat format. These structures are also used to measure subordinates responsibility levels depending on which department they are in. Marriott’s organization structure is a flat type of organization structure. Such an organizational structure has a limited numbe r of levels of authorities that govern the relationships management between staff and managers. The main advantage is that such a systems aims to highly train employees so that employees can be empowered to take part in the decision making process. Frequently consumers in the hotel industry require quick decisions to be made and therefore bureaucratic type of organizational structure is most likely to fail by increasing consumer dissatisfaction and complaints. Marriot hotel is able to apply such an organizational structure because of the numerous franchise units it owns which exist as semi autonomous units. Flat organizational structure encourage a more decentralizes decision making process and therefore elevating the level of responsibility among baseline employees and eliminating unnecessary levels of management (Koontz Weihrich 2009). In such organizational structures the process of decision is much quicker and more efficient in line with customer needs and wants (Kotler 1999). Leadership and Culture Marriott international prides itself in their strong business leadership culture that focuses on making their employees feel more enthusiastic, confident, and stimulated by having strong foundational values which are vital to their continued growth and excellence in the hospitality industry by catering to the exact needs of their consumers with precision (Koontz Weihrich 2009). Achieving objectives and set goals for any organization is very much hinged on having strong leadership frameworks put in place by the management of the organization so as to be able to uphold its core values, vision and purpose that it has set out to achieve in a given time frame. This is evident in the structure organization of the Marriott franchise where strong firmness is put on a strong business culture, aiming to be the top of not only the hospitality industry that it is a huge player in, but over other top companies worldwide(Kocher, Pogrebna, Sutter 2009). A strong leadership culture is a key aspect in the maintenance of the interrelationship between top management and employees. Top management must lead the organizations’ employees by setting of examples of efficiency and effectiveness within the work place through walking the talk in terms of behavior, action, values and cultural practices within a company. Set out objectives and goals compounded with values and visions of an organization do not mean anything where an organization does not have a clearly set out culture in and of leadership (Kefela, 2010). This results to bogus employees and a lack of loyalty from customers. Managers can learn from past practices on how to instill a strong cultural leadership by not only talking and making big speeches to their employees but by acting out whatever they speak, as workers learn better from watching examples. Becoming a strong leader within any organization is not inborn and has to be learned and achieved. Kefela (2010) argues that it is a process whereby the top managers are supposed to inspire their subordinates through: building team morale and being able to keep it up at a high; maintenance of a high set of standards of discipline; clearly defining and arbitration of roles for the employees; designing logical work plans; proper resource allocation; periodical employee appraisal; proper communication between management and the team; quality control and periodical performance checks; be able to tackle individual problems of different employees; praising and giving credit where it is due; handling conflicts and being able to reconcile them and providing team training on a constant basis. Organizations resolved to meet their set out goals and objectives and capabilities are obliged to adjust and align themselves towards development of the necessary or appropriate frameworks for a specific purpose in its internal composition. All the above aspects should be able to maintain particular standards or/and repeat particular tasks with minimal variations to set out objectives which needs to have the top management’s devotion and dedication, continuing without changing, stopping, or being interrupted in space or time as a necessary precondition to achievement of their objectives. Comparison to another company Grand Hyatt Is a distinct participant in the hotel industry which serves both business and leisure oriented consumers in with five star hotels and resorts located in major cities (i.e. Dubai, Singapore, New York, Australia, Mumbai, Seoul) of the world. The core geographic location of their business is located in Asia. Grand Hyatt is known for their high quality and impressive lobby environments, dining facilities, state of the art technology, fitness facilities and business facilities (Stem 2006). Furthermore Hyatt aims to satisfy its customers by ensuring a highly comfortable stay and therefore the company has gone ahead to offer consumers individual air conditioning facilities, high internet spee d facilities together with iPod docking facilities. A high degree of service and product differentiation can be a good strategy for competing with other industry participants and therefore Hyatt maximizes on these (Kotler 2003). The grand Hyatt hotels are five star hotels with superior interior deco that is in line with the company’s business strategies of offering highly differentiated premium services that give their consumers the total consumer experience (Stem 2006). It is by having superior facilities and services that Hyatt is able to maintain a competitive edge above many industry participants. For example The Grand Hyatt Tampa Bay is located in the middle of 35 acre wildlife preserve and is only two miles from the international airport making it very convenient for both business executives and also leisure clientele (Stem 2006). Hyatt and its worldwide franchises are known to offer excellent customer services, high degrees of cleanliness, and good strategic geographic positioning that is likely to make it easy for consumers to move from place to place. Conclusion The hotel industry exists in a highly complex and dynamic industry which requires that consumer needs and desires be taken very serious. Opinions and desires of consumers are therefore the key to success of this industry this is because the process of planning and creating short-term and long-term strategy depends on the needs and wants of the market. Even more essential is the implementation of the plan and the key to achievement is innovation. Planning is not a static issue. It is inherently iterative. This is where business models come into play. Alex Osterwalder defines a business model as â€Å"nothing else than a representation of how an organization makes (or intends to make) money† (White, 2005). Nevertheless, the actual definition of a business model remains ambiguous. Rightly so, because it is something perceived by a manager who is an individual entity and each individ ual has his own perception. The concept of business model gained popularity only in the recent past. Owing to reduced processing costs, accumulating and distributing information to business units and other intermediates and finally to the client became possible. New methodologies stared being used. Innovation became the order of the day which lead to mature products and services and increased customer base. In the context of the study, the company is already a world class brand name with more hotels and resorts than any other concern. 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