scholarly journals Sources for effective cost management in the aviation industry

2020 ◽  
pp. 16-24
Author(s):  
Iryna NIENNO ◽  
Yurii HRINCHENKO
Keyword(s):  
Cost Saving ◽  
Development Strategy ◽  
Financial Management ◽  
Economies Of Scale ◽  
Cost Management ◽  
Economies Of Scope ◽  
Aviation Industry ◽  
Regulation System ◽  
Hub And Spoke ◽  
Organizational Patterns

The article investigates the process of formation of costs of economic agents of the aviation industry. The transaction costs are considerable in aviation industry, so they shape the organizational patterns within industry. Cost-saving tools are crucial for agents in aviation industry, as it is capital-intensive industry with the large proportion of fixed costs. So the economies of scale and economies of scope are vital factors for cost management. The other ones include outsourcing, airline route design, fuel-efficient aircrafts. The regulation system in case of the aviation industry is broad and intensive, thus it aligns the cost structure and pricing in the industry. Deregulation led to restructuring the industry, application of cost-saving programs, massive merger and acquisitions and competitive pricing. Airports were forced to build partnerships with air carriers balancing their price offers and range of services. The hub-and-spoke airline design set new challenges to airports as for their capacity, convenience and safety. But the need for capital investments also increases dramatically, implying the key role of financial management in airport sustainable development strategy. The dynamics of aggregate indicators of financial results of airport activity in Ukraine for 2014-2018 are analyzed. It is revealed that the formation of cost and revenue centers becomes a tool for optimizing the costs which can be attributed to the efficiencies of scale, efficiencies of scope and effects of concentration. Type by type analysis of operating and non-operating, fixed and variable costs of the aviation industry helped to reveal the potential for cost-saving without considering increase of revenues. The effective using of specific indicators for evaluating the performance of industry agents, in particular RASM and CASM, in the context of the creation of cost centers in the aviation industry has been proved.

scholarly journals Hub location problem in round-trip service applications

2020 ◽  
Author(s):  
Omar Kemmar ◽  
Karim Bouamrane ◽  
Shahin Gelareh
Keyword(s):  
Economies Of Scale ◽  
Location Problem ◽  
Service Providers ◽  
Real Life ◽  
Mixed Integer ◽  
Neighborhood Search ◽  
Hub Location ◽  
Service Networks ◽  
Hub Location Problem ◽  
Hub And Spoke

In this paper, we introduce a new hub-and-spoke structure for service networks based on round-trips as practiced by some transport service providers. This problem is a variant of Uncapacitated Hub Location Problem wherein the spoke nodes allocated to a hub node form round-trips (cycles) starting from and ending to the hub node. This problem is motivated by two real-life practices in logistics wherein  runaway  nodes and  runaway  connections with their associated economies of scale were foreseen to increase redundancy in the network. We propose a mixed integer linear programming mathematical model with exponential number of constraints. In addition to the separation routines for separating from among exponential constraints, we propose a hyper-heuristic based on reinforcement learning and its comparable counterpart as a variable neighborhood search. Our extensive computational experiments confirm efficiency of the proposed approaches.In this paper, we introduce a new hub-and-spoke structure for service networks based on round-trips as practiced by some transport service providers. This problem is a variant of Uncapacitated Hub Location Problem wherein the spoke nodes allocated to a hub node form round-trips (cycles) starting from and ending to the hub node. This problem is motivated by two real-life practices in logistics wherein  runaway  nodes and  runaway  connections with their associated economies of scale were foreseen to increase redundancy in the network. We propose a mixed integer linear programming mathematical model with exponential number of constraints. In addition to the separation routines for separating from among exponential constraints, we propose a hyper-heuristic based on reinforcement learning and its comparable counterpart as a variable neighborhood search. Our extensive computational experiments confirm efficiency of the proposed approaches.

scholarly journals A Cross-Section Analysis of Intra-Industry Trade in the U.S. Processed Food and Beverage Sectors

1993 ◽  
Vol 22 (2) ◽  
pp. 189-198 ◽  
Author(s):  
Darcy A. Hartman ◽  
Dennis R. Henderson ◽  
Ian M. Sheldon
Keyword(s):  
Product Differentiation ◽  
Imperfect Competition ◽  
Economies Of Scale ◽  
Economies Of Scope ◽  
Processed Food ◽  
Industry Trade ◽  
Manufacturing Sectors ◽  
Food And Beverage ◽  
Trade Partners ◽  
Section Analysis

This paper analyzes the determinants of variation across industries in levels of intra-industry trade (IIT) for a sample of thirty-six U.S. processed food and beverage industries in 1987, previous studies of intra-industry trade having focussed on industry characteristics in the manufacturing sectors. The determinants predicted by IIT theory are measures of product differentiation, economies of scale, and imperfect competition; the results of this analysis indicate that IIT variation across the food and beverage industries is positively related to product differentiation, economies of scope, and similarity of tariff barriers among trade partners, but negatively related to industry concentration.

Research on corporate finance: history, challenge and prospect in China

2019 ◽  
Vol 10 (4) ◽  
pp. 487-500
Author(s):  
Yue Lan ◽  
Jianyong Wang ◽  
Shinong Wu ◽  
Jie Yang
Keyword(s):  
Corporate Finance ◽  
Development Strategy ◽  
Financial Management ◽  
Internet Technology ◽  
Practical Significance ◽  
Future Research ◽  
Classical Literature ◽  
Research Topics ◽  
Content Type ◽  
Taxation System

Purpose For the past years, the population of firms in China has increased fast. However, the financial research has always fallen behind the financial practice. Also, the Western financial theory may not be completely consistent with China’s context. In addition, appearing internet technology with big data and its applications to business bring some challenges not only to financial practice but also to the financial literature. Thus, the purpose of this paper is to review historical development of research in corporate finance, discuss the current issues and propose 16 key research topics in China context. Design/methodology/approach This paper surveys Western classical literature and some important literature by Chinese scholars in the field of corporate finance. On this basis, the authors point out the shortcomings of existing research and opportunities for future research. Findings The authors propose 16 key research topics in the near future considering the current reforms on economic development strategy, financial and taxation system and SOE’s property right under the institutional background in China. Originality/value This paper makes a contribution to corporate finance research by exploring frontier topics for future research according to the China context and the global trend. These topics represent the demand from enterprises in China and are challenges for the academic world. It is of practical significance and great theoretical value to implement these studies. It will help the management to solve their financial problems and provide a fundamental basis for constructing the financial management theory with Chinese characteristics.

scholarly journals The Value Assessment and Planning of Industrial Mining Heritage as a Tourism Attraction: The Case of Las Médulas Cultural Space

Land ◽  
2020 ◽  
Vol 9 (11) ◽  
pp. 404 ◽  
Author(s):  
Iria Caamaño-Franco ◽  
María Suárez
Keyword(s):  
Development Strategy ◽  
Financial Management ◽  
Cultural Landscape ◽  
Local Population ◽  
Value Assessment ◽  
Gold Mines ◽  
Documentary Analysis ◽  
Industrial Mining ◽  
Levels Of Support ◽  
Mining Heritage

This article analyzes the heritage construction process or “heritagization” of Las Médulas gold mines, a prime example of how Spain’s mining heritage has been reused for tourism purposes. Based on a methodology combined documentary analysis and fieldwork, informal interviews with territorial actors and surveys targeting residents, this study addresses the complexities of integrating this cultural landscape into a tourism development strategy and analyzes the support and impacts perceived by the local population. The information gathered in this research is intended to facilitate the development of adequate planning and generate recommendations to mitigate the debate that has surrounded Las Médulas and confronted its stakeholders for years. The results show that the existence of multiple agents and institutions acting on the destination leads to problems of management and collaboration. In addition, the local population’s lack of involvement and awareness is also hindering integral tourism planning. There are a number of positive impacts mainly related to the increase in the tourist value of the image of the area and its historical and cultural heritage, as well as the consequences of financial management for tourism, which also help to predict the levels of support of residents to the tourist development of Las Médulas.

INCOME FROM VINEYARD FARMS ACCORDING TO ECONOMIC SIZE IN SELECTED EUROPEAN UNION COUNTRIES

2019 ◽  
Vol XXI (3) ◽  
pp. 277-286
Author(s):  
Mariusz Maciejczak ◽  
Tadeusz Filipiak ◽  
Massimo Gardinam
Keyword(s):  
European Union ◽  
Economies Of Scale ◽  
Family Income ◽  
Economies Of Scope ◽  
Farm Income ◽  
The European Union ◽  
Wine Production ◽  
Eu Countries ◽  
Wine Sector ◽  
Economic Size

The wine sector is of great importance for many national economies of EU countries. The European Union is a world leader in area under grape cultivation and wine production. The goal of the paper was to determine the profitability of farms specializing in winegrape production depending on economic size in selected EU countries in the years 2004-2016. In addition, the level of farm income per 1 ha of viticulture was determined, as well as the level of family income and the share of total subsidies in total income. Overall, it was found that there was an increase in income, however income increased along with economic size. In the examined period, growth was only observed from the fourth economic class (EUR 50-100 thousand). Additionally, the share of income subsidies under CAP decreased along with economic size. The conducted research gave light to information that could prove vital to adapt the European vineyard and wine sector to the opportunities and needs of the market, namely by taking into account the links between economies of scale and economies of scope.

Analysis of Business Development Strategy Straw Mushroom Raw Material Empty Fruit Bunch in Lampung Province

2020 ◽  
Vol 17 (9) ◽  
pp. 4710-4714
Author(s):  
Sarono ◽  
Eddy Irsan Siregar
Keyword(s):  
Development Strategy ◽  
Palm Oil ◽  
Economies Of Scale ◽  
Positive Impact ◽  
Business Development ◽  
Transportation Costs ◽  
Raw Material ◽  
Empty Fruit Bunch ◽  
Business Unit ◽  
Straw Mushroom

In Lampung, many businesses produce mushrooms made from empty fruit bunch (EFB) palm oil, this has a positive impact on companies and communities around the company. The objective of the research is to identify the strengths, weaknesses, opportunities, and threats of the EFB standard mushroom business and the analysis of its development strategy in Lampung Province. The result of the research shows that (1) the development of mushroom industry made from EFB in Lampung Province has the strength of raw material available in large quantities and easily obtained, while the weakness is mushroom is a product that is easily damaged and untreated mushroom waste; (2) the odds are that the need for food mushrooms is still high and tends to increase, while the threat is increasing production and transportation costs and uncontrolled extreme weather; and (3) the main priority strategy for the large business unit is the development of new mushroom processing business and the modernization of mushroom making technology, while for the small and beginner business unit is to encourage business development to reach economies of scale.

Organizational Learning and Entrepreneurial Strategy

2002 ◽  
Vol 3 (1) ◽  
pp. 27-33 ◽  
Author(s):  
Colin Gray ◽  
Eddie Gonsalves
Keyword(s):  
Organizational Learning ◽  
Information And Communication Technologies ◽  
Small Firms ◽  
Economies Of Scale ◽  
Organizational Capabilities ◽  
Business Strategies ◽  
Economies Of Scope ◽  
Future Research ◽  
Entrepreneurial Strategy ◽  
Different Levels

Globalization, deregulation and new information and communication technologies (ICT) are having enormous effects on all types of business. Indeed, ICT are now adding two new sources of entrepreneurial business alongside start-ups and management buy-ins and buy-outs — rejuvenated established firms and downsized, out-sourced former larger businesses. Schumpeter's five key areas of innovation (drivers of competitive advantage and entrepreneurial strategy) have taken on a new resonance as ICT have added others such as supply chain management, market information, financing and distribution. Outsourcing and ICT have made economies of scale quicker and easier to achieve for SMEs, but deeper and more extensive knowledge is required of the capabilities of ICT and of potential partners. Economies of scope also require increased knowledge of internal organizational capabilities and of potential external partners. Various studies in the UK highlight the increased importance to entrepreneurial small firms of ICT-supported networking with other firms and of the organizational knowledge that lies behind successful strategies in these areas. Thus, the ability of individual owners and managers to learn and the capacity for organizational learning within an SME become crucial determinants of success in the new knowledge economy. This paper is based on an intensive study of organizational learning among the smaller members of the UK's Institute of Directors (IoD). It identifies different levels of organizational learning and the characteristics of SMEs at different levels, with particular attention to differences in business strategies. The findings of the IoD study are augmented by findings from the independent non-profit Small Business Research Trust (SBRT). SBRT has collaborated with the Open University Business School in studies on the determinants of management development in SMEs and has longitudinal data for analysing whether there is a connection between growth-oriented, innovative, entrepreneurial SMEs and their propensity to network, to use ICT and to support learning in their organizations. Exploring the linkages between organizational learning and SME behaviour, strategy and performance, the paper concludes with a typology of SME strategies related to organizational learning and suggestions for future research in this area.

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