Theory of knoledge - How does banking in venice during the 1300 to the Essay

Theory of knoledge - How does banking in venice during the 1300 to the 1400 compare to mondern day banking in venice - Essay Example The town life in Italy cities was bigger than in any other country. During this renaissance period, the governments of various nations were under dictatorship. However, due to the wealth created in the Italian cities such as Venice and Milan, they became autonomous city-states, each of which included an enclosed metropolitan center and the neighboring countryside. In addition, this modernization drove the city-states to create a new social system in the country. Wealth and ability was more important than aristocratic titles and ownership of land. During these times, the wealth merchants of the country together with bankers played a huge role in replacing the aristocrats in the upper class. According to their systems, shopkeepers and artisans were classified below the wealthy merchants, therefore forming a moderate and prosperous middle class that created and gave jobs to most of the poor people. The poor people from the countryside were classified at the very bottom of their social and economic ranking together with the peasants who worked in the co untry estates (Hildreth 5). During the same centuries of spiritual exploration, trade and industry revolution, and territory building, Venice was also a center of intellectual and artistic activity. The city had a huge number of mathematicians, philosophers, historians, and even humanists thrived from the fifteenth to the seventeenth century. The availability of such intellects paved way for major developments in the country. Venice became the printing hub of the country and was the most important printing press anywhere in the world at that time due to its high level of technology innovation. The development of a printing press paved way for the creation of receipts, which would then be used to acknowledge payments. The receipts would then be developed and be used as money to pay or settle for depts. This noble innovation paved way for the creation of banks in Italy

White Privilege Essay Example for Free

White Privilege Essay Introduction Research Question: Do individuals in the Midwest experience the affects of white privilege? During this investigation I seek to explore the differences in privilege that males and females, of different race and ethnic backgrounds, experiences in their daily lives. My fellow Sociology of Race and Ethics classmates and I will conduct Peggy McIntosh’s White Privilege survey, in hopes to find any differences in privilege felt by individuals of varying age, gender, race or class membership. My hypothesis is: According to Peggy McIntosh’s White Privilege survey, she suggests that white people are privileged with what she describes as â€Å"an invisible package of unearned assets, which I (Peggy McIntosh) can count on cashing in each day, but about which I was ‘meant’ to remain oblivious. White privilege is like an invisible weightless knapsack of special provisions maps, passports, code books, visas, clothes, tools, and blank checks† (McIntosh, 1988). I suggest that with the changing of times, and ever growing equality that this distinct idea of white privilege is no longer prevalent. I believe that, McIntosh’s view of white privilege is no longer applicable in today’s Midwestern society and culture. I hypothesize that age will have more of an effect on responses to the survey than that of gender or race. I predict that younger people (below 20) are at a greater risk of feeling â€Å"underprivileged†. For my second hypothesis, I suggest that overall people in the Midwest feel privileged versus not. I believe this because I feel that the social stratification in the US, especially in the Midwest, has declined creating a more equal environment for all. Data Collection I will receive my data though the use of Peggy McIntosh’s White Privilege survey. First I will take the survey, while recording my answers, and then give the survey to ten other individuals, recording their answers in the same format. My fellow classmates will do the same, then all of the information will be then collected and charted accordingly into cross-tabulation tables. Each survey participant will be asked to rate their responses on a 1-4 scale: 1 = Strongly Agree, 2 = Agree, 3 = Disagree and 4= Strongly Disagree. The date responses can than be interpreted as answers of Strongly Agree, and Agree indicating a greater response of â€Å"privilege† – which McIntosh believes suggests members in a majority group. The data will then be organized into cross-tabulation tables. Each table will contain only two variables – one independent variable (gender, age, race, member of the class or not) and one dependent variable (each statement from the survey). After collecting the data a few changes were made: age was recoded into groups of ages, while also recoding all responses of ‘Disagree’ and ‘Strongly Disagree’ into one value for each variable, both to make analysis easier. Race was also recoded into ‘White’ and ‘All Other Races’ to expedite analysis. Also the ethnicity variable responses were found to be unreliable, so that variable was removed before running the data. When reading a cross-tabulation table it is important to remember that in order to interpret the data response, you must look for the differences in the percentages of responses not in the difference in the number of responses. Also, the needed information is, if the independent variable (gender, age, race or class membership) seems to make a difference in how a person responds to the dependent variable (the questions). After all the data has been gathered and charted, I will then compare the findings to my hypothesis. In order to discover whether my hypothesis is true or false I will evaluate the cross tables of age, gender, race and class completed from the collected data. Exploring the Data Younger ages (less than 20) have a larger affect than old age in feeling â€Å"underprivileged†. After analyzing the data, I believe my hypothesis that the ages 18-19 feel underprivileged as compared to the older ages, was correct. This is represented in the findings, that of the ten questions surveyed, exactly one half the questions (five of ten) the age group 18-19 had the highest disagreement percentage compared to the other age groups. No other age group had close to the equivalent outcomes, the closest age group being groups 24-34 and 45-50 both with two. The findings show that in one half of all situations this age group is presented with, they feel as though they are underprivileged as compared to other age groups, but by examining just the 18-19 age group or age as a whole, the majority feel as though the ‘Agree’ they are privileged. This finding is universal through all independent variables. While comparing all independent variables, of the 10 survey scenarios no matter what the independent variable is 70% of the time the participants feel they ‘Agree’ to being privileged. Exploring Data – Midwesterners overall feel â€Å"privileged† versus â€Å"underprivileged† no matter the independent factor. After analyzing the cross-tabulations, I feel as though my hypothesis about the Midwestern society is spot on. The data show’s that across any independent factor (age, gender, race and lass membership) a large majority of the participants surveyed feel as though they ‘Agree’ to being privileged. This is an overwhelming statistic that is constant throughout all independent variables; of the ten surveyed scenarios people agree 70% of the time to feeling privileged. In only, one scenario do people as a whole feel as though they are underprivileged. Overall Analysis and Personal Findings I found the collective results very interesting, especially in the age category. I thought it was interesting that older adults feel less privileged more than or equal to that of middle aged adults. I had assumed, that in our society much like that of the Native American societies that respect and privilege comes with age. I found the data surprising that the age group that tended to feel most privileged was ages 20-21. In four of the ten scenarios, the 20-21 year olds surveyed felt the most privileged or ‘Strongly Agreed’ to the situation as compared to all other age groups. I did not expect this, as the previous age group had felt the most underprivileged in half of the scenarios, and in only an addition 1-2 years, the surveyed participant went from feeling the most underprivileged to the most privileged. I had guessed that the feeling of privilege would gradually increase with age groups, leaving the oldest age group (50 and older) with the highest feeling of privilege. I thought this, not only because society often deems wisdom with age, but also because the older participants surveyed may have grown up in a more dominant white privilege society, and those same feelings and thought processes would still be relevant to the way they feel they fit in society. All in all, I found very interesting facts from the data collected in every category. Things that I had thought would hold true, often did not. Such as, when considering the independent variable of gender, I assumed that women would primarily feel as though they were underprivileged as compared to men, but the data shows other wise. From this survey, men felt more underprivileged as compared to their female counterparts 100% of the time. Another fact that I found shocking was that when considering race as the independent variable. My hypothesis that white privilege was no long prevalent in the Midwest was incorrect. Participants of the ‘Other’ race felt underprivileged in half of the scenarios, and the other half they only ‘Agreed’ to feeling privileged. As compared to their ‘White’ counterparts, feeling privileged 100% of the time. I do believe that in the Midwest, things are moving close to equality as this is seen in at least half or more of the situations both the ‘White’ and ‘Other’ race group feel as though they ‘Agree’ to being privileged. No one group stands out as ‘Strongly Agreeing’ to be privileged for the majority. This tells us, that although there are still instances of white privilege, the Midwestern society is moving away from that and more towards social equality. Works Cited: McIntosh, Peggy. Daily effects of white privilege. White Privilege: Unpacking the Invisible Knapsack. Wellesley College Center for Research on Women, 1988. Tues. 19 Feb 2013. .

Home :: essays research papers

Home is more than just a word in the dictionary. First, and most basic, a house is a roof over people’s heads. Second, a residence is a place to go and truly relax. Third, and most important, a household is a place to laugh and cry with loved ones. A home’s most basic trait is its ability to provide shelter from weather. Rain or snow, a house will always be there. In the cold times of the year, the heater will be there to warm the house. The heat of the summer is no problem for a good home. The ideal dwelling definitely must have a dependable central air conditioner. When located in an area abundant with tornadoes and hurricanes, a home must have a safe place. A storm shelter or a basement is an excellent place to hide. Besides shelter from weather, a home will also provide shelter from the storms of life. When work or school is just too much to take, folks can go home, kick back, and reflect on the good things they might have. Kids can go home to hide from the bullies or the kids with cooties. No matter what the problem is, going home and relaxing can provide some relief from them. The most important thing about home is that it is where loved ones will be. On a good day, they will be there to share. A household is a place to share a funny joke or a good story. A haven is a place where people who care about each other can share a quiet night. More important than providing a place to share good times, a home also provides a gathering place for people who care during bad times. A family residence is a good place to get support for the bad happenings in life. The bad times can range from the death of a family member or friend to just a simple bad

Greek Inspired Architecture in Boston, MA

Greek Architecture in Boston My first discovery of classical architecture was made the moment I stepped outside my apartment, as my building has two Doric columns framing the front door. As I meandered over the hill and across the Common I realized exactly how prevalent classical architecture really is. Elements of classical architecture can be found on almost every building in the old residential neighborhoods and many commercial buildings feature columns and arches as well.I saw all three orders of columns, arches, and even a dome. The only architectural element I was unable to find was a iron vault. The Massachusetts State House, about half a block from my apartment, has many examples of classical architecture including a large gold dome, twelve Corinthian columns, and seven arches visible from outside. The State House, which houses the state legislature and the governor's offices, was built in 1798 by leading architect of the time Charles Bullfinch.The dome was originally made ou t of wood shingles but has since been sheathed in copper and covered in 23 karat gold. (http:// www. Satisfaction. Gob/formalities/mischievousness's. Asp) As far as I observed he arches and columns follow the rules of the classical orders except that the frieze above the columns is blank. I'm not sure if the frieze above Corinthian columns is traditionally blank or not. A pioneer, which signifies the importance of the logging industry in Massachusetts, tops the dome. Http://www. Satisfaction. Gob/formalities/ mischievousness's. Asp) I doubt this would be found on domes of the ancient world. Just as classical architecture was meant to convey power and grace in Ancient Greece and Rome, I'm sure Charles Bullfinch used elements are classical architecture n the design of the State House for the purpose of conveying the wealth, power, and beauty of the government and state of Massachusetts. Another building that incorporates classical elements is the Boston Museum of Fine Art.The current MFC building was built in 1909. There are rows of ionic columns and construction that looks like post-and-lintel. In the area that would be the frieze it says â€Å"Museum of Fine Arts† which could probably be loosely considered a continuous frieze. It was especially interesting to me to see the post-and-lintel type openings since most alluding seem to prefer the Roman's arches over the Ancient Greek post-and-lintel system. The Museum of Fine Art is another building that, due to its purpose, should convey an air of greatness.The last building I would like to use as an example is my apartment building, which was built in 1909. There are likely hundreds of residential apartment buildings in the area whose doors are flanked by a column on each side, particularly the apartments that were built in the early sass. The columns of my apartment building are of the Doric order but the abacus of each is rounded, not angular. (Strickland peg 15) There is a session but no cornice, pedimen t, or any other aspect of the Doric order. At night the columns are illuminated.It is clear by the emphasis the building management places on the columned entrance that they believe it to denote a sense of wealth, greatness, or class. While the State House and MFC certainly do this, I find my building does not quite succeed. It feels that without any other of the classical elements the columns are lacking. It is particularly interesting to me how long classical architecture has been in style. It as been used for centuries on everything from prominent government buildings to much more humble residences.Architecture that was once reserved for temples and important public spaces can now be found on everything from strip malls to pharmacies. An important difference in the use of the classical architectural elements is that Ancient Greeks built in their style partly for the logical purpose of creating a building that will stand. Today, even more so than in Ancient Rome, many aspects of t he architecture are purely ornamental. Http:// consistory. Schenectady. Org/temple-of-portions. HTML

Integration Of Goals Essay

What is meant by the term ‘degree of integration of goals’ and how can we achieve true integration? Goals can be define as the overall objectives, purpose and the desire result that a person or organization will plan to achieve. Organization goals, management goals and personal goals differ from each other. The extent that individuals and groups perceive their own goals as being satisfied by the accomplishment of organizational goals is the degree of integration of goals. In every organization it is very important to achieve the true integration for the success but then it’s not a simple task that can be achieved overnight. True integration can only be achieve when goals of management, goals and employees and goals of organization is achieved. The closer we can get the individual’s goals and objectives to the organization’s goals, the greater will be the organizational performance. So for this the goal of the organization should be clear and achievab le enough so that the management and employees become well aware and set their goals accordingly. One of the popular approaches to achieve true integration is management by objective where the objectives of different parties are defined so that management and employees agree to the objective and understand what they need to do in organization in order to achieve them. The employees get strong input to identifying their objectives, time lines for completion and it includes ongoing tracking and feedback in the process to reach objectives. Making the employees participate in the goal setting can also help achieving the desire goals. These types of participation will help them to create sense of self-actualization. Similarly the style and effectiveness of leadership plays a vital role in achieving true integration. They should be able to influence the behavior of the employees and achieve the desire goal.

Free MCSD Practice Test 70-315

Free MCSD Practice Test 70-315 Instructions for the MCSD Practice Test: Begin The Test Read the question and then click on the checkbox that contains the correct answer(s). The small field to the immediate right of the question will either display Yes if you are correct or No if you have selected the wrong answer. Click on the Explanation button to find out more about the answer and click Next Question to continue the MCSD Practice test. Your answers are not graded, so keep track of the topics which with you had difficulty. There are additional MCSD resources on the final page of the MCSD Practice test so be sure to finish. Good luck! Begin The Test Read the Whizlabs Press Release and find out more about their exams. 16 Practice Questions for the 70-315 Exam Instructions for the MCSD Practice Test: Begin The Test Read the question and then click on the checkbox that contains the correct answer(s). The small field to the immediate right of the question will either display Yes if you are correct or No if you have selected the wrong answer. Click on the Explanation button to find out more about the answer and click Next Question to continue the MCSD Practice test. Your answers are not graded, so keep track of the topics which with you had difficulty. There are additional MCSD resources on the final page of the MCSD Practice test so be sure to finish. Good luck! Begin The Test Read the Whizlabs Press Release and find out more about their exams.

NUCORs History and Development

NUCORs History and Development Introduction NUCOR is one of the largest steel companies in America. It has been in existence since 1955 when after a merger, the REO Motor Company changed to Nuclear Corporation of America. NUCOR’s founding father is Ransom Olds. The company has evolved a lot over its existence. It has been through tough times and survived. This case study looks into NUCOR’s history and development, then analyzes its internal and external environment and finally ends with recommendations.Advertising We will write a custom case study sample on NUCOR’s History and Development specifically for you for only $16.05 $11/page Learn More Nuclear Corporation of America practised growth by acquisition of strategic businesses. However, in the beginning, this strategy failed miserably and the company made huge losses. The turnaround came in 1966 when NUCOR hired a new CEO, Ken Iverson. This visionary leader would transform the company’s fortunes thus leading it to success. Ken Iverson studied Aeronautical Engineering. He then worked for different metal companies. This gave him a lot of knowledge and skills that would come in handy in his job as NUCOR’s CEO. Iverson first encountered NUCOR when the company tried to buy a metal company where he worked. This bid failed. NUCOR hired Iverson to find them suitable metal companies to purchase. When he found Vulcraft, NUCOR bought it on condition that Iverson would run it. He agreed. By the time he was appointed CEO, Vulcraft was the only profitable division of the almost bankrupt conglomerate. Iverson had a great task ahead. Iverson loved technological leadership. He led the company to open its first mini-mill in South Carolina. This was the beginning of the company’s success. The mini-mills were created to serve NUCOR’s other divisions. However, on realizing that other companies needed their services, NUCOR expanded to provide services to them too. Iverson continued to g row NUCOR by strategic acquisition and technological leadership too. Nucor’s Strengths This company has several great internal traits that enabled it to survive its 54 years in operation. The first major strength is its leadership. Ken Iverson led the company for 30 years. Iverson had the necessary technical competence and vast experience to lead a great steel company. He also believed greatly in decentralization, which gave divisional managers enough autonomy to run their divisions successfully. The organizational structure with few layers of management and less bureaucracy was motivating to NUCOR’s people. The second strength was NUCOR’s highly productive workforce. The company motivated its workers by implementing bonus pay schemes that saw them earn much more than their counterparts in similar jobs. NUCOR also avoided laying off its workers even during difficult times. Instead, it froze their wages and reduced the Executive’s wage. Iverson and his tea m also engaged the workers in conversation and kept them well informed about the company’s performance. WAdvertising Looking for case study on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More hen the company made profits, everyone benefitted from the profit sharing scheme. In return, NUCOR’s employees remained loyal and produced more than average. All workers’ children were also included in the education scheme. They also remained non- union for a very long time. After all, there were rarely industrial disputes between employer and employee. The third strength is technology. Iverson made a deliberate effort to keep NUCOR at the frontline of new steel technology. He sought and acquired rights to innovative ways of manufacturing. These methods went a long way in reducing cost. NUCOR also had the best inventory management system in its time. The cost savings the company created were passed on to its consumers in form of reduced price. This helped NUCOR to beat its competitors in a market with a homogenous product with no aesthetic value. The company’s factories are also located close to their major customers. This makes it easy to form strategic partnerships. NUCOR had several offshore joint ventures that enhanced its performance. The most significant of these is Yamato Kogyo, a Japanese firm. This venture increased NUCOR’s technological leadership as it entered the Beaming business. NUCOR started to manufacture wide flange beams. The company also practised backward integration of its supply chain; ensuring raw materials were available when needed. When building its plants, NUCOR considered its major customers. It left enough space for such customers to locate near it. This also reduced transport costs. Nucor’s Weaknesses Weaknesses are internal problems that can result in a company’s failure. Though successful, NUCOR has several identifiable we aknesses. First, most of the company’s plants are located in America. This is a weakness because America is a high-wage country. This means that NUCOR absorbs the cost of this expensive labour into its selling price. Having a high selling price reduces its competitiveness against cheaper offshore imports from countries such as China. NUCOR’s second weakness is the failure to research internally. This means that in order for the company to develop, it must depend on strategic acquisitions and external partners. This is quite risky. Supposing these partners fail to innovate, NUCOR will be stuck in a rut. External cost of Research and Development is also likely to be much higher than if the company carried out its own research internally.Advertising We will write a custom case study sample on NUCOR’s History and Development specifically for you for only $16.05 $11/page Learn More The company is highly decentralized, running the different d ivisions like different businesses all together. This is a weakness because it promotes inefficiency and duplication of efforts. The case study indicates that sometimes as many as six different sales people of the company would visit the same client. This is a huge waste of resources and reflects the company poorly before customers. It shows lack of synergy. Sensitive customers may even get irritated and fail to purchase from NUCOR all together. This will reduce income and profits too. Opportunities NUCOR’s major opportunity lies in becoming a globalized company. It can no longer depend on the American market as its only source of revenue. Lately, the demand for steel in this market has slowed down. This has affected negatively on NUCOR’s revenues and profits. However, there is a huge untapped market for steel in Asia and Africa. This is because developing nations still require a lot of steel for infrastructure construction. NUCOR needs to take advantage of this opport unity and enter these markets. These markets are not as saturated as the American market. This will help it to continue on its growth path. This company has a chance to begin carrying out internal Research and Development. This is the only way to guarantee continuous improvement, which is necessary to survive in this dynamic market. The company already has several divisions with a multitude of acquired knowledge over time. NUCOR can leverage on this knowledge and begin its own internal RD department. Having it internal will help reduce dependency on external partners. NUCOR’s major opportunity lies in becoming a globalized company. It can no longer depend on the American market as its only source of revenue. Lately, the demand for steel in this market has slowed down. This has affected negatively on NUCOR’s revenues and profits. However, there is a huge untapped market for steel in Asia and Africa. This is because developing nations still require a lot of steel for inf rastructure construction. NUCOR needs to take advantage of this opportunity and enter these markets. This will help it to continue on its growth path. This company has a chance to begin carrying out internal Research and Development. This is the only way to guarantee continuous improvement, which is necessary to survive in this dynamic market. The company already has several divisions with a multitude of acquired knowledge over time. NUCOR can leverage on this knowledge and begin its own internal RD department. Having it internal will help reduce dependency on external partners.Advertising Looking for case study on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Threats NUCOR depends on the American market for its major revenues and profits. Unfortunately, this market has become flooded with cheaper imports dumped from foreign countries. Since steel is a homogenous, non-aesthetic product, customers have preferred to switch to these cheaper alternatives. Thus, NUCOR has found it difficult to compete on a global front. The US government tried to salvage steel makers by imposing sanctions and quotas. Commerce players criticized this move. NUCOR needs to find ways to compete sustainably in the global market without depending on government subsidies. Environmental agencies have become quite active in the past decade. NUCOR’s operations are energy intensive hence result in pollution. These agencies have the power to compel NUCOR to take steps to reduce its carbon emissions, which could be quite expensive. If NUCOR fails to comply with their demands, these agencies are capable of calling for boycotts of NUCOR’s products. Steel custom ers have an easy time switching suppliers. The cost of switching is almost zero. This is a threat to NUCOR because businesses are always looking for the cheaper option. If NUCOR’s customers find cheaper options, they will obviously opt to switch. This leaves the company with no source of revenue. NUCOR’s process of production is energy intensive. There has been a general increase in energy costs. This is not likely to reverse soon. This also translates into increased production costs hence increased selling price and thus reduced demand of the company’s products. Demand for steel is also cyclical. This pattern results in high steel prices during some seasons and rock bottom prices during other seasons. The final threat is substitutes. Customers are looking into materials that are lighter but as durable as steel. These alternatives are also likely to be cheaper than steel. If this trend catches on, NUCOR could soon be out of business. Corporate strategy The corpo rate strategy refers to the strategic path taken by the company as a whole in an effort to grow. NUCOR has pursued growth by acquisition, thus creating a conglomerate organization. The first successful strategic acquisition was that of Vulcraft, the joists, and girders producer. This division remained the only profitable one during the troubled ‘60s. In the early years, NUCOR purchased smaller companies in order to acquire the technology they possessed. This enabled NUCOR to maintain a position of technological leadership. In later years, NUCOR continued with these mergers and acquisitions because it was cheaper to buy than build a new plant. The strategic partnership with Japan’s Yamato Kogyo was also an essential part of the corporate strategy. It resulted in NUCOR beginning to use the mini-mill technology. NUCOR’s people are also an integral part of its corporate strategy. The company managed to keep its workers happy and non-union for the major part of its ex istence. NUCOR had an incentive pay programme in place that linked pay and productivity very directly. People knew that if they worked hard, and worked well they would be rewarded. Thus, they strived to do well. This resulted in greater productivity for the company. The people were also kept informed on the company’s performance. This helped them to have realistic expectations about pay. The organization structure also played a part in the company’s corporate strategy. Iverson maintained a ‘flat’ organization structure with few levels of management thus reduced bureaucracy. Division managers stayed in touch with their workers and headquarters avoided interfering with the activities of the divisions. Each division operated as a profit centre, managing its own income and expenses. They were required to provide contribution to corporate profits at year-end. It is difficult to point out NUCOR’s business-level strategy. This is because the corporate stra tegy allowed each division to operate in an autonomous manner provided it was profitable. Such a corporate strategy allows each division to pursue any business strategy it sees fit in its circumstances. Conclusion This case study has detailed the evolution of NUCOR from a bankrupt motor company, to one of the largest steel makers in America. The company prospered under the leadership of a great President, Ken Iverson. Iverson combined both the knowledge and skills necessary to lead such a company. It completed many acquisitions and mergers, which positioned it as a market leader. The company’s greatest strength is its people. They have continued to be productive and loyal to their employer. The greatest weakness is that NUCOR lacks a global presence. In turn, the greatest threat is the cheaper imports from lower-cost overseas producers. The government attempted to protect NUCOR and other steel producers. However, this move is not sustainable. Recommendations NUCOR should keep doing what it is doing well. The company should continue with its personnel policies that have guaranteed a motivated work force over time. The lean organization structure should also be maintained. The company should continue to avoid bureaucracy. The new CEO John Ferriola needs to prioritize internal Research and Development. This will enable the company to find cheaper and more effective production methods. Cheaper steel is the greatest competitive advantage NUCOR can have in a global market. Finally, NUCOR should enter other world markets soon. This will reduce its dependency on the volatile American market. CASE 12-SATELLITE RADIO Introduction The development of Satellite Radio began in 1991 when a venture capitalist, David Margolese invested $1 million in Robert Briskman’s company. This company had designed the unified S Band. This technology was the core of the future satellite radio. Briskman had a great idea, but lacked the funds to implement it. Margolese fell in l ove with the idea and set out to commercialize it. The idea was to provide radio services nation-wide and of high sound quality. This was in contrast to the existing analogue radio that existed locally and faded once one moved out of the locality. This new radio service required the company to put satellites into space to broadcast the signal. Before putting the satellites into space, the company had to purchase a license from the Federal Communication Commission (FCC). This license, together with the cost of satellite installation was projected to be quite high. However, Margolese believed in the idea and was willing to put in the required capital. He projected that this new radio would be operational latest by 1997. Apart from the cost, there was the question of how to convince potential customers to purchase new radios that could support the new technology. This would be difficult since almost everyone already had a radio at home and in his or her car. Secondly, cable TV companie s also provided some form of satellite radio at no cost to their subscribers. It would be challenging to convince people to subscribe to this new radio when they could get the old form free. However, the company did market research and found that customers were willing to pay for superior quality radio. The company also faced opposition from Association of National Broadcasters, which predicted that this new technology might lead to the downfall of local AM, and FM radio stations. This would lead to loss of jobs and local content that residents relied on. XM radio was the second company licensed to provide satellite radio services. External Environment The grand plans for satellite radio faced stiff competition from traditional radio. This radio was already established and relatively free. No monthly subscription was required as opposed to Satellite radio, which required users to pay. In order to counter this hurdle, both XM radio and Margolese’s company –now called Si rus Radio- entered into deals with car manufactures to install their satellite radios during manufacturing. This would force the car buyer to subscribe to satellite radio too. The second threat was internet radio. This is also free as long as the customer has an active internet connection. Unlike local AM and FM, Internet radio had the advantage of ubiquity. Users could access it anywhere in the world. Satellite radio also promised to provide service to the whole country, thus creating competition. The third threat was cable radio that came with cable television. Most Americans already subscribed to cable television. Most cable television companies provided cable radio free with the package. Those that charged did not put a high price to the radio. It was almost free too. Sirus Radio would compete with XM radio for satellite radio subscribers. There was a difference of $2.96 in their subscription fees, Sirus Radio charging the higher fee. Sirus justified this fee with the fact that it aired zero commercials on the music channels. XM radio aired a few commercials and planned to earn money from these commercials rather than charge a high subscription fee. The formats for both radio companies were almost similar, differing in very few respects. Sirus had three motor vehicle companies and XM had two motor vehicle companies as strategic partners. These companies would install their radios in their cars. Threats and challenges These companies needed to install satellites in space to broadcast their signal. Each company planned to install two satellites and have a third one on standby ready to launch in case of emergency. This project would cost Sirus and XM $1.2Billion and $1.1 Billion respectively. They were to be launched in 1999 and 2000. This means that the original timeline for launching the satellite radio was pushed forward by over two years. Margolese’s investment would not pay off as fast as he had imagined. The companies also needed to install repea ters to amplify the sound since America was full of tall buildings that interfered with its path. In addition, special studios were necessary for transmission. Infrastructure for this venture was proving to be quite expensive. Sirus and XM both delayed further in entering the market due to technological problems. Sirus had trouble with its receivers while XM had trouble with its satellites. Sirus took two years to resolve its issues while XM took one. In the end, XM launched nine months earlier than Sirus, in2001. This gave XM first mover advantage. By the end of 2002, Sirus had also launched its services. Unfortunately, XM had ten times Sirus’ customers. This trend continued over time. It was enhanced further by the fact that Sirus charged higher subscription fees than XM. The huge capital requirements meant that these companies would take longer to break even than initially projected. XM, the leading company, hoped to break-even by 2004. This was four years after the initia l launch. XM’s lead was also enhanced by the speed with which its automobile manufacturer firm partners installed XM’s radios. In contrast, Sirus’ partners took much longer to install their radios, hence slowing the growth of their customer base. This delay in launching and long time to break even took a huge toll on Sirus. The company almost went bankrupt in 2002. However, it managed to raise more capital in form of debt and equity to keep it afloat. XM radio also faced cash flow problems in 2003 and sought to raise more capital to survive. The company managed to raise an extra $475 million. This way, it was able to survive the difficult times. XM radio also has some trouble with its satellites. They are degrading faster than expected. This has reduced their useful life by seven years. This will also be an additional capital expense in 2008. The huge capital requirements meant that these companies would take longer to break even than initially projected. XM, th e leading company, hoped to break-even by 2004. This was four years after the initial launch. XM’s lead was also enhanced by the speed with which its automobile manufacturer firm partners installed XM’s radios. In contrast, Sirus’ partners took much longer to install their radios, hence slowing the growth of their customer base. This delay in launching and long time to break even took a huge toll on Sirus. The company almost went bankrupt in 2002. However, it managed to raise more capital in form of debt and equity to keep it afloat. XM radio also faced cash flow problems in 2003 and sought to raise more capital to survive. The company managed to raise an extra $475 million. This way, it was able to survive the difficult times. XM radio also has some trouble with its satellites. They are degrading faster than expected. This has reduced their useful life by seven years. This will also be an additional capital expense in 2008. Competitive Advantage Sirus and XM bo th tried to outdo each other and win more market share. Sirus spent a lot of money signing deals to access exclusive content. The company hoped this exclusive content would motivate subscribers to join its network. The most significant deal was with National Football League and it cost $188 million. Sirus hoped to recover this from increased subscriber numbers. The company also signed Howard Stern for $500 million. This exclusive content was projected to attract new subscribers. XM did not take these moves lying down. They also sought their own exclusive deals to counter. They signed a deal with Major League Basketball that gave them exclusive rights to broadcast their content. Additionally, they signed a shock jock that had previously been banned from radio. These new additions would cost subscribers some extra money. For $1.99 per month, subscribers could enjoy the channels. The deal with Major League Basketball cost the company $650 million. These two companies reduced their comp etition when they signed a deal to develop a common radio that could receive both their channels. This meant that subscribers’ switching costs between the two service providers was now quite low. Financial Performance Initially, satellite radio was projected to be launched in 1997. Unfortunately, this delayed until 2001. On launching, the operating costs were still too high and the companies were projected to break even only after 2004. This did not happen. Analysts pushed this broadcast forward to 2007 for XM radio and 2008 for Sirus Radio. The forecast predicted that in 2007, XM would earn a positive cash flow of $51.1 million while Sirus would still make a loss of $154.2. What had seemed to be a grand business idea that Margolese had planned to invest $500 million in, turned out to be a financial disaster. Over ten years after the original idea was conceived, investors were still pumping money into satellite radio with no tangible returns. This is the mark of a bad busines s idea. It is evident that neither of the two companies carried out proper market research. They were fascinated by the idea and proceeded to invest in it without doing the groundwork. Unfortunately, it failed the test of time. Satellie Radio Today Poor financial performance and inefficient operations led the two satellite radio companies to merge in 2008 to form Sirus XM radio. There was stiff opposition to this move by other stakeholders who believed that a monopoly was not in consumers’ best interests. However, consolidating operations was the only way Sirus and XM would survive. This consolidation proved successful and the new company, Sirus XM posted a profit for the first time in 2009. The company has continued to pursue growth through deals with automobile, aeroplane and boat manufacturers. Conclusion and Recommendation Satellite radio was a noble idea. However, its implementation has cost XM and Sirus much more than the returns. It is unfortunate that so much has alre ady been invested into this idea. The companies, which started out as competitors over ten years earlier, have ended up merging into one. Satellite radios are continuing to be installed in new automobiles. However, drivers are still reluctant to subscribe for this service after the trial period expires. The challenge for Sirus XM is to continue marketing and target the new, younger drivers who are more likely to adapt to the idea.