Natural Gas Is A Clean Burning Transition Fuel - 1141 Words

Natural gas is a fossil fuel that plays a critical role in the demand and supply of energy in the United Sates. It is considered to be a clean burning transition fuel. Compared to coal and oil, natural gas combustion does not generate as much pollution and is therefore considered an ideal partner for renewable energy resources. Natural gas is extracted from shale formations underground that require horizontal drilling and hydraulic fracturing – â€Å"hydrofracking† or â€Å"fracking†. This drilling and extraction method is currently considered a global widespread issue due to the rapid increase in the amount of new gas wells that threatens the quality of water around the source (Entriken, Evans-White, Johnson Hagenbuch, 2011). Hydraulic Fracturing is a process where high-pressure fracking fluids are forced into rich shale to extract natural resources. These fracking fluids are a mixture of proppants and â€Å"chemical additives such as surfactants, biocides, fi ction reducers and other compounds meant to help in the process of freeing the trapped gas†. In addition, the million gallons of water injected along with the fracking fluids return as flowback water and this produced water have the â€Å"potential to mix with nearby aquifers and surface water†. As a result, there is a considerable amount of public concern about water contamination due to this process of hydrofracking (Thurman, Ferrer, Biotevogel Borch, 2014). Because of increasing demands of energy, natural gas offers many countriesShow MoreRelatedBenefits Of Dense Energy Storage1148 Words   |  5 Pagesgreatest advantage associated with methane clathrates is that, per amount of fuel, they have a much higher energy potential due to the dense storage of methane in the lattice structure.The concentration of methane within clathrates is 6500 times higher than in saturated aqueous solution (Ripmeester, J.A., Alavi, S., 2016), meaning less clathrates would have to be mined to receive the same energy provided by other fuels, reducing the negative environmental impacts and possibly the cost of processesRead MoreThe Effects Of Air Pollution On The Climate And Civilization Essay1571 Words   |  7 Pagesfactories.† Burning fossil fuels emitted into the air from these sources is what raises the level of carbon monoxide, carbon dioxide, and many other toxic chemical compounds in the air, which causes a rise in temperatures and a rise in ch ronic health issues in people. The United States Environmental Protection Agency states that in 2014, thirty percent of greenhouse-gas emissions came from electricity usage in which sixty-seven percent of the electricity sourced from burning coal and natural gas. ThisRead MoreFossil Fuels : The World s Primary Energy Resources1736 Words   |  7 PagesAbstract Fossil Fuels such us oil, coal, and natural gas are currently the world’s primary energy resources because they originate from living things. Formed millions of years ago from the decomposition of organic materials such as plants and animal life, it is non-renewable resources that supplied U.S. and global economic development over the past century. In fact, Fossil fuel industries mine or drill for this energy resources, burn them to provide electricity. Natural gas and oil are used whenRead MoreFossil Fuels And Its Effects On The Environment1175 Words   |  5 PagesFossil fuels, including coal, oil and natural gas, are currently the world s primary energy source. Fossil fuels have powered economic growth worldwide since the industrial revolution, but they are nonrenewable resources and can severely damage the environment. According to the Environmental Protection Agency, the burning of fossil fuels was responsible for 79 percent of U.S. greenhouse gas emissions in 2010. Alth ough efficiency can help reduce emissions produced by the burning of fossil fuels, thereRead More Effects of Overpopulation and Industrialization on the Environment1402 Words   |  6 Pagesrespectively. (Southwick, 159) Such a massive and still increasing population, combined with the environmentally detrimental repercussions of industrialization (as a result of the need to sustain such a large population), namely pollution from fossil fuels, has begun to take a serious toll on our planet’s ecosystem. Moreover, â€Å"some scientists have calculated that an optimal human population on earth in terms of reasonable living standards is no more than 2 billion people.† (Southwick, 161) Already, weRead MoreFossil Fuels : The World s Primary Energy Source1185 Words   |  5 Pages Fossil fuels, including coal, oil and natural gas, are currently the world s primary energy source. Formed from organic material over the course of millions of years, fossil fuels have fueled U.S. and global economic development over the past century. Yet fossil fuels are finite resources and they can also irreparably harm the environment. According to the Environmental Protection Agency, the burning of fossil fuels was responsible for 79 percent of U.S. greenhouse gas emissions in 2010. TheseRead MoreOcean Acidification : Climate Change s Equally Evil Twin1198 Words   |  5 Pageschange’s equally evil twin.† It s a significant and harmful consequence of excess carbon dioxide in the atmosphere that we don t see or feel because its effects are happening underwater. At least one-quarter of the carbon dioxide released by burning coal, oil and gas doesn t stay in the air, but instead dissolves into the ocean. Since the beginning of the industrial era, the ocean has absorbed some 525 billion tons of CO2 from the atmosphere, presently around 22 million tons per day. Ocean acidificationRead MoreSynthesis Gas : The Interim Exquisite1139 Words   |  5 Pages1.1 Synthesis gas – the interim exquisite Synthesis gas is a versatile intermediate feedstock for fuel and value added chemical synthesis. It is a mixture of hydrogen and carbon monoxide in various ratios. The composition of synthesis gas can be widely varied, depending on the synthesis processes and the composition of the raw materials, i.e. their hydrogen-to-carbon ratios and their reactivity’s. Synthesis gas can be produced not only from natural gas, petroleum, petroleum derivatives, or coalsRead MoreFossil Fuel : Fossil Fuels Essay1626 Words   |  7 PagesFossil fuels play a huge part in our nations backup power.   While clean energy is becoming popular for main energy, fossil fuels are relied on for backup energy for industry and commercial buildings.   Different types of fossil fuels have been used throughout history.   Coal and its byproduct has been used to fuel and improve industry.   While green energy is becoming the newest and cleanest form of energy, the transition between the two will have be d ependent on fossil fuels. Fossil fuels play an importantRead MoreThe Problem For Electric Alternatives1323 Words   |  6 Pagesbut consumers are weary to transition due to the perceived lack of infrastructure. Another alternative to fossil fuel comes in the form of natural gas. The scientific journal labeled A Natural State, extrapolates on natural gas’ utilization in mass transit vehicles, but also describes the natural gas alternative for consumers. Natural gas powered vehicles make up a large portion of mass transit fleet vehicles, but the market segment as of now for consumer natural gas vehicles is small. The question

The American Industrial Life For The Mass Of Americans By...

Discussion 1: Question 1: When Zinn refers to industrialists like Andrew Carnegie and John D. Rockefeller as â€Å"robber barons† he means that those industrialists are taking all the wealth and privileges for themselves and not sharing them with the rest of the country. When Schweikart and Allen refer to the industrialists as â€Å"titans of industry† they mean that they revolutionized the way of their industry and made their products cheaper and better and easier to produce. Question 2: A People’s History of the United States better explains the roles of the industrial elite in late nineteenth-century American history because it’s based purely off fact and it illustrates both the good and bad of the industrial elite at the time. Question 3: Schweikart and Allen and Zinn describe urban-industrial life for the mass of Americans by what they didn’t have and what they were fighting for, not by what they already had. The difference is that Zinn described how bad their lives were while Schweikart and Allen described how the people were trying to change their lives. This shows that although the general idea of how the masses did not have exactly what they wanted, how they went about getting what they wanted is different depending on the source. Question 4: Zinn’s interpretation of late nineteenth-century labor unions and strikes differs from Schweikart and Allen’s by Zinn tells all the bad of the labor unions and strikes while Schweikart and Allen tell all the good of the labor unions andShow MoreRelatedImportant Factors Leading to the Gilded Age Essay1749 Words   |  7 Pages After the Civil War, the Second American Industrial Revolution or Gilded Age made the Americans the most industrialized people in the world. This economic phenomenon was unprecedented in history. There were several factors that led the American economic prowess and prosperity. The Americans were blessed with natural resources and a liberal immigration policy to ensure steady work force. Yet, the most important factors were technological innovation and entrepreneurial ability. As America pushedRead MoreThe Rise of Big Business1522 Words   |  7 PagesThe Rise of Big Business The decades after the Civil War rapidly changed the face of the United States. The rapid industrialization of the nation changed us from generally agrarian to the top industrial power in the world. Business tycoons thrived during this time, forging great business empires with the use of trusts and pools. Farmers moved to the cities and into the factories, living off wages and changing the face of the workforce. This rapid industrialization created wide gaps in society,Read More Big Business and The Robber Barons Essay1473 Words   |  6 Pages The decades after the Civil War rapidly changed the face of the United States. The rapid industrialization of the nation changed us from generally agrarian to the top industrial power in the world. Business tycoons thrived during this time, forging great business empires with the use of trusts and pools. Farmers moved to the cities and into the factories, living off wages and changing the face of the workforce. This rapid industrialization created wide gaps in society, and the government, whichRead MoreThe Legacy Of John Davison Rockefeller1656 Words   |  7 PagesJohn Davison Rockefeller was one of the captains of industry during the gilded age, and is most known for his numerous philanthropies in his later years; however, most people are unaware of his exploitation of America’s free capitalistic enterprise to amass a fortune, the likes of which this country had never seen before. Rockefeller’s company, Standard Oil, helped America explode as an industrial superpowe r on the world stage and, in the process, allowed Rockefeller to amass a billion dollar fortuneRead MoreIndustrialization After Civil War1523 Words   |  7 Pagesthe U.S. society, economy, and politics by the technological advances that were being introduced. The railroad industry, textile manufactures, mining, and mechanical tools are just a few of the many examples that were being introduced during the Industrial Revolution. These few examples are what changed the workforce atmosphere as we know it today, and opened many new doors for U.S. society to gain new skills that would be continued into modern society. 2. Identify three (3) major aspectsRead MoreThe Civil War And The Reconstruction Period Essay1496 Words   |  6 Pages Introduction: American Industrialization emerged from the ruins of the Civil War and the †¦ of the Reconstruction Period. Spurred by the new manufacturing technologies brought over from Great Britain, and the rest of Europe, factories and mills began emerging across the American landscape, slowly transforming the United States from an agrarian society to one increasingly industrialized and urbanized. From 1860-1900, the nation of rural towns, local crafts, family farms, and regional businessRead MoreJohn D. Rockefeller, Sr.2537 Words   |  11 Pages$340 billion. This amount, according to Forbes’s website, is John D. Rockefeller, Sr.’s net wealth in today’s dollars. Mr. Rockefeller built his fortune through the oil industry. He founded the Standard Oil Company, which owned about 90% of American refineries and pipelines. Although John D. Rockefeller, Sr. is arguably the richest man in United States history, he was also a deeply despised man. According to PBS’s vid eo on the Rockefellers, he kept a revolver near his bedside because of death and kidnappingRead Morefamous people1742 Words   |  7 Pagesimportant words in American history: â€Å"All men are created equal.† 4 Franklin Delano Roosevelt He said, â€Å"The only thing we have to fear is fear itself,† and then he proved it. 5 Alexander Hamilton Soldier, banker, and political scientist, he set in motion an agrarian nation’s transformation into an industrial power. 6 Benjamin Franklin The Founder-of-all-trades— scientist, printer, writer, diplomat, inventor, and more; like his country, he contained multitudes. 7 John Marshall TheRead MoreThe Industrial Revolution : A Great Period Of Time Essay2283 Words   |  10 PagesEssay The period of time known as â€Å"The Industrial Revolution† was a great period of time filled with rapid industrialization. The industrialization began in Great Britain, but did manage to spread quickly throughout the rest of the world. Managing to leave a rather substantial impact on the United States. So much so that the industrialization that took place in America is commonly referred to as â€Å"the second industrial revolution†. The second industrial revolution took shape in the nineteenth centuryRead MoreJohn D. Rockefeller as a Robber Baron Essay3605 Words   |  15 PagesJohn D. Rockefeller as a Robber Baron A robber baron was someone who employed any means necessary to enrich themselves at the expense of their competitors. Did John D. Rockefeller fall into that category or was he one of the captains of industry, whose shrewd and innovative leadership brought order out of industrial chaos and generated great fortunes that enriched the public welfare through the workings of various philanthropic agencies that these leaders established? In the early 1860s

Cutlass Olds Free Essays

string(75) " the output shaft of the transmission and senses the speed of the vehicle\." It was purchased a family car, as well as a dally driver to and from work. It rolled off the line from the factory with a turquoise vinyl Interior, bucket seats, a center console, head rests, as well as air conditioning and other accessories. Many stories have been told from the adventures endeavored from behind the driver’s seat of the car. We will write a custom essay sample on Cutlass Olds or any similar topic only for you Order Now Now however, its two tone Cameo White body, and Glade green hardtop remain to be covered In dirt and paw prints. The cutlass’ heartbeat is a 250 horsepower â€Å"Rocket† 350 VI Chevrolet small block tutor, producing 355 lbs. F torque at 2600 Revolutions per Minute (RPM), with a compression ratio of 9:1 (Oldsmobile Informational). It is naturally aspirated with a two barrel carburetor and Is coupled with the optional Hydra-Metal 3-speed turbo 350 transmission, together producing a 10:8 horsepower to weight ratio (Horsham). From there, the power is transferred to the rear axle. This axle is a four-link live axle type, with 3. 23:1 gears installed. This gear ratio was the â€Å"all-round† preferred set to meet somewhere In the middle of top economy and maximum performance (Oldsmobile Informational). With all that â€Å"GO,† this car weighing in at 3650 lbs, (while full of gals needs lots of â€Å"WHOA. † It has drum brakes with self-adjusting dual master cylinders, and 9. 5†³ cast-alloy drums installed on all four corners to bring everything to a stop. The body Is Just shy of 202†³ In length, 76†³ wide, and is mounted on a 112†³ wheel base chassis (Oldsmobile Cutlass). It Is composed of K-braced front cross members and frame torque boxes, which allow for a lower body floor. The rear axle is Informational). This features large coil springs and double-action shock absorbers. The front suspension carries 56. Of the overall car weight (Oldsmobile Cutlass), and is a double wishbone (A frame) design with coil springs and dual action shocks as was for the rear axle. Perhaps one of the most common and well known automatic transmission ever produced was General Motors’ Turbo 350. The Turbo 350 is a fully automatic transmission made up of a 3-eleme nt hydraulic torque converter and two planetary gear sets. The planetary gear sets are used in conjunction with four multiple-disc clutches, two roller clutches, and an intermediate overrun band to obtain proper fiction elements necessary (350 Turbo). Weighing in at 120 lbs. ND being 21 – %† long (Novak), this cast aluminum transmission is much larger than the manual style it replaced and was left unpainted. It is easily distinguishable by its oil pan which is chamfered on the rear passenger side corner, and its integral bell housing. It holds 5 quarts of automatic transmission fluid. They are also identified by the transmission model and code numbers stamped on the side of the servo. This identification will include a prefix code letter(s), followed by a 5, the year of production, and the serial number of the transmission itself (Former). The transmission itself offers three driving SE selections labeled â€Å"D,† â€Å"S,† and â€Å"L. † Normal driving is achieved by selecting the â€Å"S† range. This allows the car to start in first, shift to second and third. As speed decreases, it will automatically shift back down and provide small engine braking. In the â€Å"L† range, the transmission is not allowed to shift into any gear except 1st. This is designed to receive the most power for pulling or for steep inclines and heavy engine braking. The last selection is â€Å"D,† named for the forced detent downshifts. In this range, the transmission can be downshifted from fourth to third and third to second within a select speed range. Reverse is equally as important and is achieved through the use of a friction clutch through adequate oil pressure. This friction clutch is unable to engage after a speed of MPH in the forward motion by a blocker piston to prevent accidentally selecting reverse will moving forward. By putting the transmission in park, the output shaft is locked to the transmission case via a parking pawl that grabs lugs on the backside of the reverse planet carrier. A detent prevents accidental movement into park while still moving in either direction (Former). The power flow in the transmission begins with the torque converter. It uses oil to hydraulically multiply torque when needed. It consists of three major elements, the converter pump, the turbine, and the stator. As the engine turns, it powers the pump, which works as a centrifugal style (much like a water pump) and flings hydraulic oil away from the center. As the oil begins to flow, it pushes on the turbine blades, the turbine is connected to the transmission, which then begins to have torque applied to it and spin as well. The fluid is then forced to change direction by the stator, which directs the fluid from the turbine back to the pump. This increases the efficiency of he torque converter greatly. See Figure 1 . Figure 1 From the torque converter, the power is transferred to two gear sets in the transmission. Each gear set is made up of six major components, the sun gear (the main internal gear), four planetary gears, and an outside ring gear. Each one of these components can either be driven by the engine, or locked in place by a band clutch. Possibilities is what makes it possible for the transmission to shift. It is also equipped with one overrunning clutch. This is a one-way roller that allows engine braking to occur in first, second, and third gear. It achieves this by allowing the input shaft to spin faster, but never slower than the output shaft. Each of these actions are controlled by many different parts and materials working together. To begin is the valve body. This is the brain of the transmission, and ironically represents the looks of one. It is filled with many passages for oil to flow, each controlled by individual valves. These valves may be controlled by many things, including the governor or manual linkages. The governor is attached to the output shaft of the transmission and senses the speed of the vehicle. You read "Cutlass Olds" in category "Papers" As the speed increases, the governor weights egging to fly out, much like the governor setup of older tractor engines. As the weights fly out, the governor allows more oil to flow, as well as higher pressure. As certain pressures are reached, the valves in the valve body release, performing a function, such as releasing or contracting a band brake. See Figure 2. To begin in neutral, all clutches and overrun bands are released, allowing no power transfer from the torque converter to the output shaft. Oil flows from the pump to the regulator valve. When this pressure exceeds necessary line pressure, the excess is diverted to fill the converter. If the transmission is put into drive, or first gear, this engages the forward clutch set. It also locks the intermediate overrun roller clutch. The front gear set receives clockwise power to the ring gear, while transmitting power via the sun gear to the rear unity, producing a converter torque ratio of approximately 2:25 at stall. The rear set receives power via the sun gear, and while the planetary gears are held, transmits the power to the ring gear. This produces The manual linkage directs line pressure to the Reverse, Neutral, and Drive ports, 2-3 shift line pressure is also increased to cushion when the next shift takes lace. The rear roller clutch freewheels in first gear and oil is directed to the gear set and is regulated by governor pressure. This pressure increases with vehicle speed, and acts as a cushion for the 1-2 shift valves. When the governor pressure reaches 46 Pounds per Square Inch (AS’), the oil pressure over powers the 1-2 valve spring which opens the valve. This shifts the transmission by directing drive oil to apply the intermediate clutch. The front gear set continues to receive power at the outer ring gear, however the inner sun gear is held, and the planetary gears provide the output power. This reduction ratio is approximately 1. 52 to 1. Everything else remains the same. This shift into second gear will happen between 42-49 MPH at full throttle, or 9-12 MPH at minimum throttle. As governor pressure continues to increase yet again, the 2-3 shift valve begins to become overpowered by the oil pressure. Once 77 SSI is reached, the direct clutch is engaged by the new oil, this shift is cushioned by the Reverse, Neutral, Drive oil pressure on the other side of the piston. At this point, the intermediate, direct, and forward clutch are now all engaged at once, and the overrun roller clutch is allowed to freewheel. Power is distributed to the front gear set through the sun gear drive shell and turn with a ratio of 1 . This shift into third gear typically happens between 70-79 MPH at full throttle, or approximately 20 MPH at minimum throttle. When reverse is engaged, the forward clutch is disengaged, the direct clutch and low/reverse clutches are both engaged, and the intermediate roller allows oil pressure to enter the reverse valve circuit. Oil flows to the outer area of the direct clutch piston, to the outer area of the low and reverse clutch piston, and to both the 1-2 and 2-3 shift valves. It also acts on the reverse boost valve to increase line pressure to a maximum of 250 SSI at stall. This allows the vehicle to move in reverse by applying torque to the front gear sun gear drive shell and the sun gear. The reverse clutch is applied, which then prevents the carrier from turning. This reverses the rotation of the ring gear, causing reverse and a 1. 93:1 ratio. Much like manual transmissions, these turbo 350 transmissions are equipped with detente to hold each shift in place. Instead of the typical ball and spring, these detente act as valves to hold oil pressure on the downshift valves. These detente are activated by the downshift cable. Each of these valves (manual control, shift, and detent), each act as a piston in a valve-less 2 stroke engine. As they move forward or back, they slowly open or close ports (or valves) for oil flow. See Figure 3. One of the only ways to check all of these functions in the transmission is to run a pressure test. With the brakes applied and the engine running at 1000 RPM, the SSI should be between 60-90 when in drive, between 85-150 SSI while in reverse, and between 55-70 SSI while in neutral. While in drive and the engine at idle, operating SSI should rest between 60 and 85 AS’. Other issues may be caused by worn clutches, bands, or shims. Correct input shaft end play should be between 0. 033†³ and . 064. Correcting this end play is done by adding or removing thrust washers located between the main oil pump and the direct clutch drum. Three thicknesses of pressure plates are used within the transmission. These are . 245†³-. 255†³, . 275†³-. 285†³, and . 305†³-. 315†³. A clearance of 0. 010†³- 0. 080†³ should be obtained between the top faced plate and pressure plate. Each internal shaft is supported by bronze bushings. Each should be installed 0. 010†³ above flush (350 Turbo). After the power has exited the transmission through the output shaft, it has to transfer the torque to the axle, via a drive shaft. The drive shaft on the 1969 Oldsmobile Cutlass begins with a universal slip yoke that slides onto the output shaft of the transmission. This also doubles as a seal for the transmission tail housing and is installed with one once of lubrication and provided with a small vent hole on the back side of the slip yoke. The shaft itself is made of steel, and welded to cast iron yokes. The rear yoke is unique in the fact that it actually consists of a coupling yoke and two set of ball stud yokes. Each half of the yoke takes one half of the angle pitch. Whenever removing these ball stud Joints, be sure to reference disassembly of the connecting yoke and both flanges to retain proper shaft balance. Each set of universal Joints have 25 roller bearings per cap, and have external retaining rings which hold them in place on the internal side of the yoke. The coupling yoke has two sets of ball yokes for the C. V. Joint. These are also held by retainer clips. Once the propeller shaft is installed in the car, it must meet runabout specifications. Being measured at 5†³ from the front weld, in the center of the shaft, and at 2†³ from the rear led, the shaft must be equal to or less than 0. 24†³ of runabout. Flange runabout must not exceed 0. 008†³ Transmission angle should be set at % degrees, and shims should be added or removed to obtain proper setting. Differential nose angle should be set at 10 % degrees, and is corrected by adding or removing shims at the axle. CAUTION: The four point live axle is driven from the prop eller type drive shaft. This axle allows the engine torque to be transmitted into a perpendicular direction. This Cutlass is equipped with A 10 bolt differential (referring to the number of bolts in the differential cover) and 3. 3:1 gears. It is easily spotted by the ribs on the side of the housing and is commonly known as a â€Å"P† style rear axle. The pinion gear stem is 1. 625†³ in diameter and uses 30 spines to connect to the yoke of the drive shaft and drives an 8. 5†³ ring gear. The ring gear itself has 42 teeth, and the pinion has 13 in total (Former). Each axle is machined with 28 spines and use two sealed ball bearings on the end of the axle with an oil seal located inside the axle tube behind the sealed bearings. They have a bolt-in design and do not use c-clips to stay in place (Rolling). The rear axle has a removable carrier. The pinion is mounted by two tapered roller bearings that are preloaded by a collapsible spacer. The pinion depth is set using a shim between the pinion head and the rear pinion bearing. Two tapered roller bearings also support the differential itself. These are preloaded and the differential backlash is set using two threaded sleeves between the bearings and pedestals. This preloaded should be set using inch pounds, and should be 8-12 in/lbs. Using used bearings, or 24-32 in/lbs. Using new ones. The side gears and pinions mounted in the differential are held in place by a lock screw and are backed with thrust washers. Backlash for the pinion to ring gear must be set between 0. 005-0. 009†³, and variation over the entire ring gear backlash must not exceed 0. 002†³. Pinion depth is achieved using cast iron production shims and vary from 0. 210-0. 272†³ in increments of 0. 002†³. Pinions depth will be marked on the pinion gear face. Once proper depth is achieved, the front pinion nut should have been marked before disassembly, then tightened to 1/16†³ past the mark made before. The axles should be bolted into place and have no more than 0. 020†³ end play. If more end play is present, the sealed roller bearings should be replaced. The differential should be filled to within 3/8†³ of the filler hole, or roughly around 4 h Pits. Of S. A. E. 90 GAL.-5 Gear lubricant. Parts for this Cutlass are very readily available as it is a fairly common terrain as well as one that is fairly new as well. Many local parts stores such as Scarcest, Nap, or Advance Auto Parts would carry much of what any restoration would ask for. For those hard to find parts, many salvage yards such as CT Auto Ranch out of Denton TX has many salvaged cutlass’ in stock and parts ready to ship. Other resources may include magazines and blobs such as Hemming Motor News, or Olds Club of America. Naturally, many internet sources exist as well such as Rocket. Com, Illiterateness. Com, Summit Racing, or even Pops. Com. Anything related to the transmission can be found quite easily as it is one of the most common transmissions out there. The detersives yoke however, may be a different story as it is a strange set up with the double rear yoke. If one is not available at a salvage yard, there are many companies around who make custom drive shafts such as Anta’s, or Dyne’s Detersives companies. Technical information is also available quite easily and quickly for this car and Just about anything on it. To start is the Olds Club of America. This club is dedicated to Oldsmobile only and has connections to people who have the answers, they have classified ads, and even Judging guidelines. Another very good source for information MI, the center has many original service manuals, brochures, and catalogues available in person, or on their website. Any original manual is a great place to start. The â€Å"Motor’s Automatic Transmission Manual† is a 740 page volume that includes 240 pages of oil circuit diagrams of which the majority are in color. This book is mentioned in one of my sources. Original pamphlets or brochures are a great source or technical information or selling points of these cars and their components. If all else fails, many blobs and posts are out there on car geek sites to help those tech savvy restorers out there to find the information they need. The research of this paper really taught me a lot. The Olds Cutlass used to be Just a car parked in the back of the shed, and as I grew older it slowly began to mean more and more to me, however I have never taken the time to really look into it. It’s one of those things that you see or walk by every day, but never step back and actually look at it. This paper gave me a new perspective on an old car, my father’s old car. I was shocked with how much information is out there for the Cutlass, and not Just any cutlass, for whichever make or model you may have. Information, brochures, pictures, and clubs are fairly abundant for the Oldsmobile, which is something that I am definitely not used to. Naturally, I learned a lot about the car, all the options available, trim packages, and where to find this kind of information. I also learned a lot about automatic transmissions, which is something I have never looked at in depth before. It took a while to get my head wrapped around it all, but it makes sense now that it has had the time to sink in. It is amazing how much can go into such a small item, let alone an entire car. The amount of specifications, dimensions, tolerances, and other information is absolutely endless. At least for a car of this era. How to cite Cutlass Olds, Papers

Easyjet free essay sample

The aim of this report is to provide a detailed analysis of the viability of Easyjet’s current business model in the highly competitive airline industry. Easyjet’s critical success factor is built around its leading market position in European convenient airports, low fares, and exceptional customer orientated services. However, the successful growth of EasyJet has brought it into direct competition with Legacy Carriers and similar Low Cost Airlines. This Report has been divided into three sections, the first section analyses the business model using the four-box framework: Customer Value Proposition, Profit Formula, Key resources and Key processes. Easyjet’s customer value proposition is based on providing low fares with customer orientated services using key resources and processes such as standardized fleets and online booking systems to maintain its cost structure which is a crucial component of its profit formula. Together with this, to maximise revenue, a number of methods such as sophisticated yield management techniques are in place. The second section analyses the dependencies and constraints of the business model. Easyjet’s business continuity to an extent depends on IT systems, Processes at the London Luton Airport and Markets where customers value low price and quality at the same time. Macroeconomic activities outside its control such as industry consolidation, weakened consumer confidence, inflationary pressure, competition, regulatory intervention, airport charges, and the rising cost of fuel are the constraints that disrupt the viability of their business model. The third section provides resolutions to Easyjet’s current problems. Airport charges are increasing. For instance, Spain and Italy have witnessed a rise of 10. 9%, currently. This has been coupled with an increased competitive pressure from flag carriers in primary airports. To avoid these threats, a solution of moving to secondary airports within closer proximity to their primary counterparts has been examined in detail. 1 BMAN72801 EasyJet’s Business Model Analysis 1. The Business Model of EasyJet 1. 1 Theory The concept of Business Model has been identified by Johnson (2010, p. 22) as â€Å"a representation of how business creates and delivers value both for the customers and the company†. He introduced a four-box business model framework, which includes four key elements: Customer Value Proposition (CVP), Profit Formula, Key Resources and Key Processes. CVP is described as how a company creates value for a given set of customers at a given price. While, Profit Formula outlines how a company identifies its assets, cost structures, margins and resource velocity to create value for itself and shareholders. On the other hand, Key resources and processes form part of the operational model, they are the assets used by the organisation to deliver value to its customers and its business, they include employees, products, technology, brand product development, business rules and behavioural norms (Johnson, 2010, pp. 24-46). 1. 2 Easyjet’s Business Development In 1995, EasyJet was set up as a Low Cost Carrier (LCC) drawing on the business model from the American LCC– Southwest. This was due to the fact that back in those times, the European market was deregulated and low price could drive up the demand of air travel (IMD International, 2002). Compared with legacy airlines, it served passengers the same routes but charged cheaper fares, making travel by airplanes much more affordable for the masses. (Jones, 2005) Stelio Haji-Ioannou, EasyJet’s founder announced that the company’s business principle was â€Å"No frills, No extra†. (Jones, 2005, p. 3) This meant that EasyJet could maximize its revenues, avoiding extra expenses such as travel agents’ commissions and free food/drinks. For the former it focused on direct sales over telephone bookings. Figure 1 highlights the important differences of the four key elements of Business Model Framework between Legacy Airlines and EasyJet. 2 BMAN72801 EasyJet’s Business Model Analysis Figure 1: The EasyJet’s business model compared with legacy airlines at its beginning stage Legacy Airlines Provide high quality and Provide low fare with no frills convenient service to passenger to primary airports with with one package price Customer Value Proposition EasyJet punctual, convenient, and safe flights. ? High fares ? Low fare ? Travel agents – adds on Profit Formula ? Direct sales (telephone and ? High direct costs and high overheads ? High unit margins ? Medium resource velocity website booking) ? Maximize possible revenue from each flight ? Cost structure (lower administrative and overhead cost) ? High resource velocity ? High load factor ? Market regulation ? Market deregulation ? Primary Airports ? Single type of plane ? Well trained staff ? Smaller Airport ? Brand Key Resources ? Online system (lower cost ? High quality service and better information management) ? Sub contract system Key Processes ? Medium ? Reserved Boarding ? Standardized maintenance procedures ? Rapid turn around ? Point to point services ? Non reserved boarding Source: Johnson (2010) Jones (2005) In November 2000, EasyJet announced to float on the London stock exchange at a price of 310p, valuing the company at ? 777 million. Stelio (2000) stated that this move was an exciting moment in the development of EasyJet and aimed to help EasyJet expand its capacity by purchasing 32 new 737700 Boeing jets. Moreover to expand its size rapidly, EasyJet used mergers and acquisitions as a key strategy. In 2002, the company purchased low-cost airline Go (initially set up by British Airways) for 3 BMAN72801 EasyJet’s Business Model Analysis ?374 million. With this acquisition, EasyJet combined its fleet of 35 aircrafts with Go’s 27 aircrafts, and started to operate on 89 routes between 36 airports in Europe. The aggressive expansion of fleet and routes enabled EasyJet to replace Ryanair as the biggest low-cost airline in Europe. Also, EasyJet bought GB Airways in 2007. EasyJet’s chief executive Andy Harrison is reported to have said that, â€Å"This is an acquisition which both strengthens our customer offering at London Gatwick, our biggest base with an attractive catchment area, and allows us to fully capitalise on the potential of the airport through a larger number of slots. † (BBC, 2007) 1. 3 EasyJet’s Current Business Model 1. 3. 1 Customer Value Proposition (CVP) Rae (2001) stated that EasyJet’s mission was to serve customers with low price and safe flights. It is important for EasyJet to ensure safe flights for passengers because people might be concerned about whether the low price covers safety. As a result, for CVP, EasyJet provides low fares with no frills, delivers passengers to the primary airports as legacy airlines and high safety guarantee. Having realised different customers have different demands on destinations and travelling time, EasyJet segmented its destinations into two categories which are business and leisure. The business destinations are such as Glasgow where most people usually go for a short stay for business reasons, while, leisure destinations such as Palma are where people usually go for a long stay. On the other hand, with regards to flight time, EasyJet segments the time according to the two destination segments. Weekdays, early mornings and early evening flights are reserved for business passengers. Whereas, weekends, midday and late evening ones are for leisure ad non-business purposes. (Barlow, 2000) Although EasyJet segments its market, it announces to focus more on business people since 2010. EasyJet CEO Carolyn McCall in 2010 stated they were targeting to increase its market share of the business travellers and boost revenues, marking a significant change in strategy for the LCC. (EasyJet, 2010) It launched a flexible fare option which targeted corporate travellers in that year. The campaign included preferential boarding, free hand luggage and flexibility to change flights two hours before departure. â€Å"We do leisure and we do it really well. The business traveller proposition is another kind of product. † (Bloomberg, 2011) At present, the airline industry has become more competitive with big rivals such as Ryanair and British Airways. In some routes, it cannot compete with other LCCs such as Ryanair in terms of price. (BBC, 2013) Thus, it is crucial for EasyJet to provide better customer service to counterbalance its relatively higher prices. As â€Å"customer service could be high-touch (friendly behaviour is cheap)†. (Johnson, 2005, p. 139) 4 BMAN72801 EasyJet’s Business Model Analysis Figure 2: Overall satisfaction % with EasyJet, 2008-2012 Source: (EasyJet Annual report, 2012) According to Figure 2, the overall customer satisfaction decreased in the year 2010, therefore, EasyJet announced several measures to improve customer satisfaction. As passengers were complaining about the complicated boarding procedures, finally in 2012 EasyJet allocated seating on all its flights. These were approximately more than thousand a day which shorten the boarding times for customers, not affecting the on time departing standards. To provide better customer services, EasyJet asked its staff to concentrate on five promises which are safety first, on your side, a big smile, make it easy and open upfront (EasyJet, 2013) Moreover, in order to attract more customers, EasyJet offers a special Fearless Flyer course which can help those nervous flyers to conquer their fears of flying. In addition to this, EasyJet has benefited a lot from the development of internet. Its user-friendly website is highly efficient and uncluttered, providing users with an open and short booking process, and has now become the top UK website. (Tnooz, 2013) The average time of internet user surfing on EasyJet’s site is the longest time compared to its competitors (Figure 3). Furthermore, EasyJet developed an online check-in system via website and a mobile boarding card. Both are widely used to reduce the operational costs and simplify the boarding process. 5 BMAN72801 EasyJet’s Business Model Analysis Figure 3: On-site Engagement comparisons in April-June 2013 Source: (SimilarWeb, 2013) However, to keep its key principle of no frills, EasyJet manages its partnership with alliances closely to provide variety of ancillary services. These alliances enable users to make use of services such as Starbucks coffee, travel insurances, car hires, hotel bookings and even charity donations. To avail these services, users have to pay separately. These ancillary earnings also represent a significant part of EasyJet’s supplementary revenues. 1. 3. 2 Key Resources and Key Processes To contribute to its CVP, EasyJet has adjusted its key resources and processes so as to sustain in a highly competitive market. For instance, it keeps the principle of using a single fleet to lower the maintenance costs. At the beginning, EasyJet only used Boeing 737 aircrafts, but in 2002 purchased 120 airbus A319 aircrafts plus 120 options. (EasyJet, 2002) Since then, the Boeing planes have been phased out through wet leasing or sales. Now, EasyJet’s fleet is only from the Airbus A320 family, and is the largest operator of Airbus A319. By using single fleet, same standardized plane, the maintenance cost is relatively lower compared to other airlines that use a mixture of different aircrafts. Apart from using a single fleet, EasyJet uses a young fleet as well. In 2007 EasyJet called on the EU to ban the use of planes which were made before 1990, after 2012. This will ensure the safety of the flights which is EasyJet’s foremost principle. It will also reduce its maintenance cost of aircrafts and improve cost efficiency in terms of fuel. As a result, the average age of EasyJet’s aircraft is just 5 years (Airfleets, 2013) while Southwest’s fleet age is approximately 11. 9 years. (Airfleets, 2013) To ensure safe flights, EasyJet has collaborated with Airbus and Nicarnica Aviation for high altitude testing of AVOID1, a volcanic ash detection technology (EasyJet website, 2011). 1 AVOID: Airborne Volcanic Object Imaging Detector 6 BMAN72801 EasyJet’s Business Model Analysis To reduce overhead and operating costs, EasyJet adopted a sub-contracting system. Apart from providing an aircraft, pilot, cabin crew, and sales people, rest of the tasks were assigned to subcontractors (Sull, 1999). Moreover, in 2012, EasyJet created a Lean Program to save the budget around ? 35 million in 2013’s financial year. EasyJet used three main strategies to achieve this. Firstly, it optimised the crew cost. As EasyJet engaged with unions, it was difficult for them to lay off employees. Thus, the efficiency of crew planning was required. For example, EasyJet spread times of flights from five to fifteen minutes in order to reduce number of crew from seven to four which helped in lowering costs. (Mohanty, 2013) Moreover, EasyJet drives cost efficiencies through strict controls of overhead costs, procurement processes and improvement of operational performance. (EasyJet, 2012). As staffs are providing services through each step of the way, EasyJet stated that their people are one of their key resources. (EasyJet, 2012) Therefore, it puts more effort in training its staff to guarantee the quality of the services such as punctuality and safety. It has launched apprenticeship schemes to train its successful applicants through an Advanced Apprenticeship in Aeronautical Engineering. (EasyJet, 2012) With its excellent staff and crew, EasyJet has the capability to provide quality services. To ensure the improvement of services, EasyJet rewards its employees based on performance only, no seniority system . This means that each employee will be paid differently and this system encourages employee to perform more efficiency (EasyJet, 2013). McCall 2013 explains that EasyJet leads pan-European short-haul network with the highest presence on Europe’s top 100 market pairs. (EasyJet, 2012) It operates routes between primary airports which most people want to fly to, so the unique network is also one of a key resource of EasyJet to build up its competitive advantages. However, it does not recognise the importance of secondary airports in closer proximity that can actually reduce costs without effectively damaging its established clientele. However, to further enhance its network expansion, EasyJet opened new bases in France, UK and Portugal. It has also launched new routes between London -Moscow and also won the rights to fly the last great monopoly route in European aviation between Milan-Linate. At the moment, EasyJet is providing services with 605 routes, 23 bases and 214 aircrafts. (EasyJet, 2012) These key resources and key processes all support EasyJet’s CVP to provide a more differentiated service to customers which in turn generates sufficient profit and satisfaction for the company and its stakeholders. 1. 3. 3 Profit Formula Taking advantage of key resources and key processes towards CVP, EasyJet experienced a steady growth in number of passengers flown over the period 2000-2013, and has achieved more than 60 million passengers by the end of September 2013 (Figure 4). 7 BMAN72801 EasyJet’s Business Model Analysis Figure 4: Number of passengers in 2000-2013 Source: EasyJet Annual Reports (2000-2013) Figure 4 shows a self-generated graph for the increase in passenger numbers. It identifies EasyJet’s growth rate year on year. 2002 and 2003 witnessed the most dramatic rises in passenger numbers, 60% and 79%, respectively. This was due to EasyJet’s rapid expansion through acquiring small airlines and purchasing new aircrafts. However, after 2008, especially in 2009 and 2013, the growth apparently slowed down as a consequence of the ongoing European Debt Crisis which made negative effect on the business of travel market. EasyJet’s attractions to huge number of passengers mainly depend on its affordable price. This also partially explains why in Figure 5, EasyJet successfully improved its load factor and indicated an upward trend, especially after 2007. Figure 5: EasyJet Load Factor Trend in 2001-2013 Source: EasyJet Annual Reports (2001-2013) Normally, the more passengers and higher the load factor in flights, the more likely an airline will get large revenues. EasyJet’s revenues (Figure 6) mainly base on passenger revenues, which are 8 BMAN72801 EasyJet’s Business Model Analysis generated by ticket prices multiplying passenger numbers. EasyJet adopts a yield management 2 system to control ticket prices. Figure 6: EasyJet’s Operating Revenues (? million) 2002-2013 Note: 2012 and 2013 passenger revenues and ancillary revenues are not disclosed. Source: EasyJet Annual Reports (2002-2013) The operating revenue contains Passenger revenues and Ancillary revenues. Passenger revenues shared the majority, so operating revenues roughly increased. Ancillary revenues increased gradually with time. Figure 7 below represents the revenue per seat rose steadily in 2008-2012, which implies EasyJet has improved its revenue model over time. Figure 7: Revenue per seat since 2008-2012 Source: EasyJet Annual Report (2012) 2 Yield management explains why customers pay different prices with same products and services. In EasyJet, the earlier the passengers book a ticket, the less they will pay. 9 BMAN72801 EasyJet’s Business Model Analysis EasyJet focuses on cost leadership, so apart from the revenue model, cost structure is also significant to the business model. In order to investigate the efficiency of the company, Figure 8 analyses its operating costs excluding fuels, while total cost by category is presented in Appendix 4. EasyJet’s main costs were airport and ground handling charges, together counting for 29% by average, and then followed by fuel price counting for 25% of total operating cost. The rises in airport charges are now a concern. (Mohanty, 2013) Figure 8: EasyJet’s Operating Costs excluding fuel charges from 2002 to 2013, ? million Note: Operating costs includes ground handling, Airport charges, Navigation, Crew, Maintenance, Advertising, Selling, Marketing and other costs, excluding fuel charges Source: EasyJet annual reports (2002-2013) Figure 9 compares the growth rate of operating revenues and operating costs. In the recent five years, the growth rate of operating revenues was smaller than what it was prior to 2008, however, relatively more stable. While the growth rate of operating costs generally decreased, showing an improvement of cost disciplines. The little sudden increase in costs in 2012-2013 was because of higher airport charges. Figure 9: EasyJet Operating performance from 2002-2013 Source: EasyJet Annual Reports (2003-2013) 10 BMAN72801 EasyJet’s Business Model Analysis Based on the above analysis of operating revenue model and cost structures, Figure 10 outlines the trends of operating profit in the years 2002 to 2013. Figure 10: EasyJet Operating profit3 2002-2013 ? million Source: EasyJet annual reports (2002-2013) In general, EasyJet has improved its operating profit to 500 Million in 2013, 5 times as much as in 2003. The operating profit decline in 2008 and 2009 was affected by oil price crisis, but it increased steadily afterwards. Figure 11: EasyJet Profit before Tax Margin from 2004-2013 Note: In 2008- 2009, oil price crisis Source: EasyJet Analysts’ presentation (2013) Ryanair Annual Reports (2008-2013) Figure 11 reveals the trend of Profit before Tax Margin (PBT Margin)4, indicating that EasyJet was undergoing profitability in past years and also possibly, this trend will be continued in the future. The 3 Operating profit is calculated by total revenue (passenger revenue + ancillary revenue) minus operating costs including fuel and ownership costs. 11 BMAN72801 EasyJet’s Business Model Analysis development of PBT margin is out of better cost control, improvement of revenue model, and continuous improvements in yield management systems. Margin is very useful when comparing companies in similar industries. Therefore, Figure 11 also compares EasyJet PBT Margin and Ryanair Operating Margins5. They almost had the same margin pattern, but Ryanair’s margins were always higher, which built a competitive competency in the company’s cost management and revenues. This is one of the main reasons why EasyJet cannot set lower prices on the same routes than Ryanair. In order to see how well the company can generate a return on the accumulation of assets, it is important to identify return on assets (ROA)6and return on capital employed (ROCE)7 ratios. Figure 12 shows total assets and ROA for the years of 2001 to 2013, and Figure 13 represents the development of ROCE during 2008 to 2013. Figure 12: Total Assets and relevant ROA from 2001-2013 Source: EasyJet Annual Reports (2001-2013) 4 PBT Margin is a companys earnings before tax as a percentage of total sales or revenues. The higher the pre-tax profit margin, the more profitable the company. 5 Operating Margin represents operating profit as a percentage of total revenues. 6 ROA is the percentage figure describing how efficient management is at using its assets to generate earnings, calculated by dividing a companys annual earnings by its total assets. 7 ROCE is a financial ratio that measures a companys profitability and the efficiency with which its capital is employed, calculated by dividing a company’s Earnings before Interest and Tax (EBIT) by Capital Employed. 12 BMAN72801 EasyJet’s Business Model Analysis The total assets roughly increased over time. Although, ROA was less than 10%, it had increased steadily after reaching the lowest points in 2009 and reached a peak in 2013. Figure 13: ROCE (including operating leases adjustment) in years of 2007-2013 Source: EasyJet Annual Reports (2008-2013) With the introduction of a dividend policy and the needs to maintain a strong balance sheet, EasyJet introduced ROCE as a key performance indicator and â€Å"The director of the airline was paid on the basis of the performance of ROCE † ( Mohanty, 2013, p. 11). The board targeted at an average ROCE of 12% through the five years planning cycle since 2011(EasyJet, 2012). However, in Figure 15, only the year of 2013 achieved that target. Nonetheless, ROCE has continually increased since 2009, which implies efficient utilization of capital employed by EasyJet, and less risks for shareholders to invest in. In particular, ROCE leaped from 11. 3% in 2012 to 17. 4% in 2013, indicating a stronger performance of EasyJet. In conclusion, EasyJet shows a strong performance in terms of revenue growth, capital discipline, return improvements and operational excellence. However, its profit is constrained by such uncontrollable costs as oil prices, airport charges and the exchange rate. Besides, given that the airline industry is highly competitive, the growth rate of passengers and revenues may not be able to boost further as the previous levels. Thus, further analysis of EasyJet’s business situation and feasible solutions to its existing problems will be carried out further in the report. 1. 4 A Circle of Success In a nut shell, all of the four elements come together to create competitive success for an organisation. Interacting with each other, they significantly affect a firm’s business model. Because of their complementary nature, failure in one could break down the whole model, resulting in organisational failure, altogether. To maintain success, EasyJet uses a combination of these elements together. Key 13 BMAN72801 EasyJet’s Business Model Analysis Resources and Processes are linked to its Customer Value Proposition which in turn are related to its financial success. For instance, its standardised and young fleet together with continuous improvement of facilities ensures flight safety, punctuality of service and high brand recognition. This in turn results in higher profitability inherent in its profit formula. Together with this, using a no frills approach enables them to concentrate on maximising seat revenues with supplementary support from ancillary revenues. Their main success lies through a strong network in Europe, facilitating both business and leisure passengers. This in turn again results in overall customer satisfaction and through that sufficient financial viability. EasyJet shows a strong performance in terms of revenue growth, capital discipline, return improvements and operational excellence. However, currently they have started to face a lot of complications. The industry is highly saturated together with high competitive pressures and increased airport charges may not be able to boost further growth of passengers and revenues. To maintain success even in these difficult times, it may be necessary to suggest some minor changes in their business model after rectifying the current problems in the next section. 14 BMAN72801 EasyJet’s Business Model Analysis 2. Dependencies and Constraints 2. 1 Internal and External Dependencies According to Philips and Czaban (2013, P. 61) Business models create particular dependencies that influence competitive success†. Dependencies could be internal or external to the business, some primary (strong) to the success of the business while others are secondary (weak) to the success of the business. Primary internal dependencies arise from the organisations resources, activity systems, control systems and competence, on the other hand, primary external dependencies arises from the product, service and customers (Philips and Czaban, 2013). 2. 1. 1 Internal Dependencies EasyJet creates and captures value via its activity system; some of its activities are done in-house while others are sub-contracted to third party representatives. EasyJet’s business continuity to an extent depends on IT systems and Processes at the London Luton Airport and other designated business areas. Network disruption8 such as loss of systems and access to facilities would have an adverse effect on productivity, reputational and financial performance (EasyJet, 2012). In October 2013, thousands of EasyJet’s passengers faced lengthy delays and cancellations as a result of a Europe-wide system failure†. Gatwick airport faced the worst disruption with 14 flights to and from London Airport cancelled. The technical problem prevented passengers from booking and using online check-in facilities. Stranded passengers were left with no other option but to lodge into a nearby hotel or spend a night at the airport. Passengers booked on the cancelled flight were eligible for compensation, they had the option to either re-book a ticket or claim a refund (Reynolds, 2013). In the first half of 2013, EasyJet cancelled 436 flights which appears to be 12% higher than 2012. Disruption cost has risen by ? 1. 4 million due to the increased pressure from the EU261 passenger compensation payment scheme; in addition, the cost of de-icing created by bad weather is ? 6. 3 million higher. This unforeseen circumstance has an adverse effect on EasyJets brand reputational, operational and hence, financial performance (EasyJet, 2013). A decent proportion of EasyJets activity system depends upon third-party9 service providers. EasyJet is in a contract with third party representatives that represent a significant proportion of its cost base and operational activities. The inability to effectively manage third partys performance, loss of 8 Network disruptions are caused by epidemics/pandemics, forces of nature (extreme weather, volcanic ash etc) and acts of terrorism 9 Third party suppliers are any or all owners/providers of the following: hotels, apartments, villas and other accommodation; transfer services; insurance; car rental; or any other travel services listed on the Website. 15 BMAN72801 EasyJet’s Business Model Analysis contract, failure to re-new contract or negotiate favourable terms would have a negative effect on its future operating cost (EasyJet, 2013). 2. 1. 2 External Dependencies EasyJets external dependencies come from its product/service mix and its customers. EasyJet depends on markets where customers value low price and quality at the same time. Easy jet’s differentiated service is one of its critical success factors. However, Incumbents are beginning to adopt the low-cost business model which appears to be a threat on its value proposition (EasyJet, 2013). The successful growth of EasyJet has brought it into direct competition with Legacy Carriers and Charter Operators. In October 2011, Legacy carrier British Airways (BA) reduced its fares by up to 20 per cent on its short-haul routes from London Gatwick airport. British Airways also introduced one way flights to nine European destinations (Malaga, Amsterdam, Bologna, Bordeaux, Verona, Marseilles, Naples, Turin and Genoa) with prices starting from just ? 39. The introduction of cheaper fares by British Airways and other Legacy Carriers poses a threat on EasyJet’s differentiated service (Mawer, 2011). LCC compete mainly on cost, there is minimal or no customer loyalty since most passengers are price sensitive and would travel with whichever airline that have the lowest fare with reliable services. LCC have been criticized because they use sophisticated yield management; they price the most cost sensitive item as low as possible then charge extras for additional services (McCoster, 2003). Figure 14: Price comparisons for flights from London in April 2013 Source: BBC News (2013) 16 BMAN72801 EasyJet’s Business Model Analysis Due to sophisticated yield management techniques used by LCCs, tickets purchased few days before departure are not cheaper than those available from Legacy Carriers. BA’s fare on the London to Barcelona route appears lower than EasyJet for most of the period. Customers who purchased tickets six weeks before the flight and few days before take-off got the best deals (Gornal, 2013). The competition in the European Airline is becoming overwhelming, Legacy carriers are beginning to adopt the low cost business model are competing on with LCC on short haul routes. According to Bloomberg (2013) BA is looking to expand its capacity by 8 per cent in the next two years, aided by introducing short-haul jets to fly short haul routes. EasyJet responded quickly to competition in the market by offering flexible fare 10 options to woo business travellers away from Legacy carriers. However, the price of the ticket is more expensive than EasyJet’s normal fare: travelling from Gatwick to Malaga between 5th and 12th December’s return flight’s quote came up as ? 476. 98 (Mawer, 2011). Figure 15 shows EasyJet and Ryanairs initial ticket fare appears lower than BA’s fare; however, after including the cost of additional services, BA’S ticket was ? 37. 48 cheaper than EasyJet and ? 50. 68 cheaper than Ryanair (Mawer, 2011). Figure 15: London-Malaga Fare Comparisons Source: Daily Mail (2011) British Airways provides free seat reservation, inflight tea and coffee, debit card usage and holdbaggage allowance weighing up to 23kg, which is 3kg more than EasyJet’s standard allowance. Sport 10 Flexi fare option allows business customers passengers make unlimited date changes, the price of the ticket includes free hold-luggage, priority boarding with no booking fees 17 BMAN72801 EasyJet’s Business Model Analysis equipment’s are also free if it is part of the checked baggage allowance. On the other hand, EasyJet’s passenger would have to pay ? 22 for priority boarding, ? 8 debit card fee, ? 10 for inflight tea and coffee, ? 50 for sport equipment’s on a return trip (Daily Mail, 2011). 2. 2 Constraints EasyJet’s success is created by its business model and its ability to control the assumed dependencies. Dependencies come from organisational routines and resources. It is evident that an organisation’s constraints are derived from its dependencies. A constraint is anything that limits a company from reaching its goal. Philips and Czaban (2013) defines constraints as the casual forces at work that disrupts the viability of a business model, thus, restricts the business in getting the right level of investment to grow and maintain its business activities . In a nut shell, constraints slow down volume. According to