Scientific Journal of Business & Innovation
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Volume 1 Issue 1 · January–June 2021
Scientific Journal of Business & Innovation
ISSN 2749-6899 iii Table of Contents
Editor-in-Chief iv Editorial Prof. Dr. Kyriakos Kouveliotis v Journal Information vi About BSBI Associate Editors 01 Commercial Importanceof a Freshwater Dr. Elham Shirvani Prawn, Macrobrachium Lamarrei: Dr. Maryam Mansuri a Case Study in Its Food Security Aspects 05 Sentiment Analysis of YouTube Video Honorary Senior Advisory Editor Comments Using Big Data: Prof. Dr. Emidia Vagnoni, Helping a Video Go Viral University of Ferrara Italy 09 Embodied Cognition and Subject Roles in the History of Philosophy Editorial Board 13 Relationship Between Investments Prof. Dr. Kyriakos Kouveliotis in Intellectual Capital and Financial Dr. Anastasios Fountis Performance: Evidence from Serbian Hotel Dr. Elham Shirvani Industry 2013–2017 Dr. Maryam Mansuri 21 Direction in Global Market Coping Dr. Anastasia Alevriadou Strategies: Virgin Airlines Case Study Dr. Milos Petkovic 31 A Case Study on Successful Implementation Dr. (MD) Ahmed ElBarawi of Ethics and Responsible Business Dr. Moumita Mukherjee Policies at a Corporate Level Dr. Desislava Valerieva Dimitrova 35 The Status of Sustainable Health Dr. Vivek Arunachalam Governance and Future Role of Eco-Tourism Dr. Christos Lemonakis Model for Eradicating Ex-Ante Child Health Dr. Marios Menexiadis Poverty in Riverine West Bengal, India Dr. Chaditsa Poulatova 43 Will Dexit Follow the Brexit and the Ms. Mina Shokri Consequences of the German Economy Ms. Katherine Boxall and European Union Mr. Anuj Batta 47 PR Watches — Innovative Solution Ms. Zoi Kerou in Alzheimer’s Care Mr. Konstantinos Skamagkas 51 Digital Marketing Campaign for Adidas Ms. Kathrin Bremer to Increase Customer Lifetime Value Ms. Anastasia Kiritsi Guidelines for Authors Call for Papers Table of ContentsTable iv v
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1 1 Mihieka Bose , Kalpesh Jas , I. Introduction based on the town of Santiniketan. The aim of the study is 2 Commercial Importance Aishee Chakravorty , Debottam to estimate the commercial importance of this species, in 3 Bhattacharya , Sourish In India, freshwater prawns (Arthropoda: Decapoda: Crus- terms of consumption rate of this prawn in this area. Till 3 1 of a Freshwater Prawn, Pramanik , Pragya Poddar , tacea), under the subfamily Palaemonidae cover 8 genera date, work on the food security aspects of this prawn is not 4 2 Aishik Surana , Kosturi Sen , and 75 species occurring in diverse habitats. The State of recorded. Our maiden attempt is to elucidate the impor- 5 Macrobrachium Lamarrei: Chayan Munshi West Bengal, in India, accommodates a high number of tance of this prawn as a food item in rural or semi-rural freshwater prawn species, among which, the genus Macro- areas of West Bengal. a Case Study on Its brachium is predominant. This genus has more than 200 species worldwide among which 60 are present in India (Jayachandran 2010; Jayachandran and Indira, 2010). In II. Material and Methods Food Security Aspects India 60–70 percent of the population is based in rural areas, where the main source of income is agriculture and aquatic Since the paper addresses commercial importance and resource (Jayachandran and Indira, 2010). Commercially food security of a prawn species and the factors to consider important species in the Macrobrachium genus include it as an important source of nutrition, an organised survey M. rosenbergii, M. malcolmsonii, M. gangenticum, M. idel- on various aspects was a basic need. After the survey in laidella, M. idellageorgii, M. divakarani, M. equidens, M. the villages, we surveyed the markets of Santiniketan-Srini- sulcatus, M. dayanum, M. lamarrei, M. mirabile, M. scabric- ketan-Bolpur. Survey in the markets helped us to predict and Abstract: ulum, M. rude, M. villosimanus, among which M. rosenbergii, estimate the consumption rate of this prawn in the town area. M. malcolmsonii, M. gangenticum are of aquaculture impor- The market survey was conducted for three alternate days Despite of abundance all over the country and its acceptance as a food item, tance (Jayachandran, 2010). Macrobrachium rosenbergii, in a week. Initially, with the help of Google maps and fish- Macrobrachium lamarrei is still a rather neglected species in India. There is the giant river prawn, has the highest commercial demand ermen, we have surveyed all possible ponds occurring near and is a model species for aquaculture. India produces Santiniketan-Sriniketan-Bolpur. An orientation programme no established protocol for its aquaculture. There is no data on its commercial a large quantity of this species, with West Bengal as the with the local fishermen was done to collect information leading state and generates huge revenue. Macrobrachium regarding the occurrence, cultivation and consumption demand. A case study was conducted at a random timepoint in the town of lamarrei is a common freshwater prawn abundant in differ- of this prawn in the villages. The orientation started with Santiniketan-Sriniketan-Bolpur, to estimate the commercial importance of this ent water bodies, like rivers, ponds, and lakes. Geographi- acquaintance with the fishermen who regularly deal with cally this species of Macrobrachium is distributed throughout the catches of this species. The fishermen were questioned prawn species. Organised surveys were conducted in the villages near the town India (mainly in West Bengal, Bihar, Karnataka, Rajasthan, to know about the prawn catching and selling policies. The and also in the local markets of Santiniketan-Sriniketan-Bolpur to assess the Odisha, Manipur, Maharashtra and Tamil Nadu) (Jayachan- local residents (villagers) were also questioned informally to dran, 2010). The rate of production of eggs or offspring by gain information on their food habits and rate of consump- prawn supply chain and consumption rate. This prawn species is highly abun- an organism is termed as fecundity. This species has a large tion of this prawn, including awareness on its availability. dant in all types of freshwater bodies. Survey results indicate in an inconsistent range of fecundity, depending on season and body length Fishermen helped us to check the ponds with presence of (Hussain and Manohar, 2016). M. lamarrei. A questionnaire was also prepared for the sell- consumption pattern of this species in the town as well as in the villages, prob- The state of West Bengal (area: 88752 km2) in India ers, in the town markets (Santiniketan-Sriniketan-Bolpur) to is divided into 19 districts. Among them, the district of Birb- estimate the quantity of prawns they sell on respective days. ably due to unpredictable supply from the villages. This study is conducted to hum (area: 4545 km2) is considered as medium-large in promote this species for sustainable aquaculture, which may help economically size. Ponds occupy 18.34% of total wetlands in India where West Bengal is considered as one of the wetland-rich states; III. Result weaker population by providing low-cost nutrition and also it can economically 12.4% of total geographic area is wetland and in respect help the local small-scale rural fishermen thus initiating business innovations of wetland coverage, West Bengal lies in the sixth posi- We have surveyed 109 ponds in the rural areas in close tion among other states and Union Territories (total of 36) vicinity to Santiniketan-Sriniketan-Bolpur and were informed for them. We are predicting that aquaculture of this prawn species will have a in India (National Wetland Inventory & Assessment, 2011). (by the local fishermen) about the presence of M. lamarrei positive impact on the food security issues. The wetlands in the district of Birbhum covers 2.5% of the in all of them. The surveyed area is non-industrial where total wetlands in West Bengal and 6.09% of the geographic the local people primarily depend on agriculture to live. area of Birbhum is wetland covered. In West Bengal 7.1% of The villages, surrounded by agricultural fields have a high the wetlands are ponds while in Birbhum, 4.7% of the total abundance of freshwater ponds, which are mainly used Key Words: wetlands are ponds (National Wetland Atlas, 2011). Birbhum for fishing and domestic purposes. Basically, the fishermen Commercial importance, food security, freshwater prawn, economically sustain- is divided into 3 subdivisions and 19 blocks. Bolpur-Srini- from the villages get these prawns as a bycatch. If, the ketan block is the largest among the four blocks of Bolpur quantity caught is profitable, they sell them in the markets able, aquaculture subdivision with 170 villages (Census of India, 2011). Basi- of Santiniketan-Sriniketan-Bolpur otherwise, they distribute cally, all the blocks in Birbhum are of rural status with an the catch among the local villagers. Normally, there are no administrative town or city, which is the town of Bolpur, which such specific ponds allotted for monoculture of M. lamarrei. along with Santiniketan and Sriniketan cumulatively form the The prawns grow naturally in the ponds where fish also most important area of Bolpur-Sriniketan block (administra- occur at a high volume. tive, academic and touristic). Survey in town markets is the only convenient way From our previous knowledge we were sure that M. to estimate the consumption rate or demand of this prawn lamarrei, commonly known as a “kunchochingri” is appre- species, because most of the caught prawns come to the ciated as a food item in this area as in other parts of West markets from the villages. There are four sites (markets) in Bengal. The markets of Santiniketan-Sriniketan-Bolpur have the area of Santiniketan-Sriniketan-Bolpur where they sell a supply of prawns and other fishes from the nearby villages. this prawn. Site 1 and 2 are the most important fish markets This is a case study in the area of Bolpur-Sriniketan block, in this area.
1 Department of Zoology, Visva Bharati University, 731235, Santiniketan, India. 2 Department of Botany, Visva Bharati University, 731235, Santiniketan, India. 3 Institute of Agriculture, Visva Bharati University, Santiniketan, India. 4 DEOMEL, Visva Bharati University, Santiniketan, 731235, India.
4 Bengal Institute of Technology and Management, Santiniketan, 731236, India. Scientific Journal of Business & Innovation Commercial importance freshwater of a prawn, macrobrachium lamarrei: A case study on its food security aspects 3 4
On the first day, approximately 24 kilograms of total anthropogenic activities, prawn populations may decrease prawns were sold, total of all the four sites, on the second in the aquatic ecosystems (indication given by the fisher- day almost 30 kilograms were sold, and on the third day, men). Contaminated runoff draining into freshwater bodies it decreased to only 3.3 kilograms from all the four sites affects these prawns too. It is really an issue of concern as Figure 1 (Figure 1). many freshwater bodies are not being conserved which 35 From Figure 2, we can summaries, site 1, had more directly affect that aquatic ecosystem. 30 supply, on the second day than the first, but, the supply was null, on the last day. In site 2, supply decreased on 25 the second day comparing to the first, while no supply was V. Conclusion 20 recorded on the third day. The scenario of site 3 was like 15 site 1, while it had little supply on the third day. The site 4, People in rural West Bengal have a high percentage of 10 having no supply for the consecutive first two days, but had carbohydrate in their daily meals. In fact, there is a lack of a descent amount on the last day. animal proteins, which is essential for a healthy diet. On 5 enquiry the local people confirmed that rice is the staple 0 food item throughout the year. The diet also includes Day 1 Day 2 Day 3 IV. Discussion seasonal vegetables with a consistent intake of potato, which is another good source of starch (carbohydrate). Total quantity of Macrobrachium lamarrei sold (amount in kilograms) Prawn sales statistics from Figure 1 indicate an inconsistent Intake of protein and fat along with carbohydrate is essen- on alternate days at Santiniketan-Sriniketan-Bolpur. pattern of consumption rate in the given area (Santiniket- tial, M. lamarrei represents a cost-effective source of animal an-Sriniketan-Bolpur). In this context, the salesmen informed protein. Our investigation suggests that this species can be us that most of the time, they trade all of the prawns they cultured at a very low cost as it has a natural high growth get. It is very rare that they have surplus and have to take it rate in any freshwater body without any special care and back to home. Figure 2 also depicts an inconsistent pattern this reason is an important criterion to keep the price of this of prawn availability and selling irrespective of different species low. It is included in the diet of rural people, as it is sites. Figure 1 and 2 are clearly stating that the consumption easy to get. This species is commercially important but at Figure 2 rate (or selling rate) in the town region of Santiniketan-Srin- local level only, as it is not exported to other states or coun- iketan-Bolpur, is not constant and varies between a wide tries. So naturally, the government is not earning any foreign 5.0 range. It may be due to uneven supply. However, estimation revenue in the context of selling this species. However, as 4.5 of the prawn consumption rate in the rural area is hard to we are aware of the fact that this species is appreciated as 4.0 measure but the surveys in villages also indicated the more a food item locally, we are trying to indicate that this prawn or less same pattern as the town. Our survey stands on the should be given more attention in the context of making 3.5 main point of irregularity of this prawn consumption prob- it a more common food item. High abundance makes it a 3.0 ably due to inadequate supply as this prawn is a bycatch. more prominent source of affordable animal protein for 2.5 We learned that a few sellers are trained for various economically weaker population. A scientific aquaculture 2.0 aquaculture practices from the block level officials and by protocol is needed for contamination-free mass production 1.5 RKVK (Rathindra Krishi Vigyan Kendra, Sriniketan). There of this crustacean (Munshi et al., 2020). This will eventually seemed to be no one uninterested, but they would do it have a steady supply of the species in town markets and 1.0 only if proper training and seeding material is provided. the villages. Bondad-Reantaso et al., (2012), clearly stated 0.5 A few sellers exclusively sell prawns in markets as a side that crustaceans are good source of protein can definitely 0 income. Keeping in mind the interest of them, we went for be a part of food security system. In the situation of increas- Day 1 Day 2 Day 3 our next orientation to RKVK to explicitly learn about the ing human population, prawns like M. lamarrei could be aquaculture protocol of this species. Block Fisheries Exten- included as an animal protein supplement. Through this Site 1 Site 2 Site 3 Site 4 sion Officer, informed us on the approach of integrated pilot data we are highlighting the fact that this species aquaculture practice of freshwater prawn with fish, can should be given priority to establish it as a justifiable food Comparative quantity of Macrobrachium lamarrei sold (amount in kilograms), benefit the farmer with extra income. We also gathered item, mostly in the rural areas. We are elucidating that the on alternate days at different markets of Santiniketan-Sriniketan-Bolpur. some basic information on this prawn, which fall in the prawn is a good candidate for a sustainable aquaculture to category of ‘weed fish’ (aquatic arthropods), because of increase its population and supply. In fact, we predict that their high fecundity. Proper seed is the base of aquaculture. this economically viable species is essential for economi- Seeds of common commercial fishes like (Rohu, Catla etc.) cally weaker population (mainly rural) and also helps local are easily available in the market due to the demand for fishermen. It can gain more commercial importance and artificial breeding. Till date there is no report on the availa- induce local small-scale fishermen to commence profitable bility of seeds of this prawn for aquaculture, probably they business innovations. grow naturally although a temperature range of 25o–35o C is required for good growth. A sharp price hike was evident in the last few years. VI. Acknowledgement References: Increase in the cost of weed fishes have several underlying [1]. Bondad-Reantaso, M.G., Subasinghe, R.P., Josupeit, H., Cai, J. and Zhou, X., 2012. The role of crustacean fisheries and aquaculture reasons. High demand and low Supply: in recent years We thank Dr. Subrata Mondal, Subject Matter Specialist in global food security: past, present and future. Journal of invertebrate pathology, 110(2), pp.158–165. heavy metal contamination in Macrobrachium rosenbergii (Agronomy), RKVK, for introducing us to Mr. Kallol Mukherjee, [2]. Census of India, 2011. District census handbook, Directorate of Census Operations, West Bengal, Birbhum, India. [3]. Munshi, C., Biswas, P., Sen, K., Pal, A., 2020. Do Macrobrachium lamarrei demand an attention for aquaculture? 3rd International (Zodape, 2014) created destruction in fishery industries. Block Fisheries Extension Officer, Bolpur — Sriniketan Block. Symposium on Genomics in Aquaculture, ICAR-CIFA, 21st –23rd January 2020, Bhubaneshwar, India. Awareness about food safety has increased, the villag- We are grateful to Prof. Shelley Bhattacharya for her critical [4]. Hussain, S. and Manohar, S., 2016. Reproductive aspects of freshwater prawn, Macrobrachium lamarrei lamarrei (HM Edwards, 1837) in Upper Lake at Bhopal. International Journal of Fisheries and Aquatic Studies, 4, pp.208–211. ers are much more alert and may reject large fishes and supervision and also to Prof. Snehasish Chakravorty for [5]. Jayachandran, K.V. and Indira, B., 2010. Sustainable exploitation of freshwater prawn diversity of India for food and livelihood prawns from their diet in order to avoid heavy metal expo- his suggestions. We also thank Ethophilia, an autonomous security with emphasis on planning. Indian Journal of Scientific Research, 1(2), pp.127–132. [6]. Jayachandran, K.V., 2010. Indian palaemonid decapod crustaceans: taxonomic status, research challenges and conservation needs. sure. In festive seasons Macrobrachium rosenbergii is a research group, for extending support. Indian Journal of Animal Sciences (India), 80(4), pp.46–52. delicacy. Despite having high fecundity levels, the increased [7]. National Wetland Atlas, 2011. Space Applications Centre, Indian Space Research Organisation, Ahmedabad, India. [8]. National Wetland Inventory & Assessment, 2011. Space Applications Centre, Indian Space Research Organisation, Ahmedabad, India. [9]. Zodape, G.V., 2014. Evaluation of metals in commercially important prawns and shrimps species collected from Virar market of
Scientific Journal of Business & Innovation extended Mumbai suburb of (west coast) India. Indian Journal of Applied Research, 4, pp.598–602. 5 6
1 2 Vignesh Babu P J , Anuj Batta I. Introduction analyse large data of comments even when the data extends Sentiment Analysis of to the level of Big Data. The work of Amar Krishna [4] is also Social media platforms have been continuously on the rise on a different line where they have performed sentimental YouTube Video Comments since their inceptions. The ease of use and the simplicity of analysis of the YouTube comments related to popular topics the interface has attracted millions of users to these platforms, and identified trends and seasonality and forecast of the Using Big Data: Helping it contains rapidly changing information generated by this comments to relate them to influence of real-world events. huge volume of users that can affect dramatically a person They have used the naïve Bayes classification technique for a Video Go Viral or an organization. This constantly changing user data has the sentimental analysis. By their work for each comment the raised the importance of automatic sentimental analysis on polarity depends on the number of times the word occurs the contents posted by the users to get better understanding on the positive and negative dictionaries. Their results are of the user opinion. promising to identify polarity trend of the public sentiments YouTube is one of most visited websites in the world, in YouTube but the tools used will not scale to Big Data sets current statistics [1] at the time of the writing indicate total efficiently and takes more time. Our approach involves using number of users as 1.3 billion with 300 hours of video Big Data tools which provides potential to analyse for huge uploaded every minute and 5 billion videos being watched volumes of data efficiently with lesser time. on YouTube every single day by the average of over 30 million The author Smitashree [3] works propose the unsu- visitors to YouTube per day. This tremendous amount of user pervised lexicon-based approach to detect user sentiment Abstract: traffic conveys their opinion through likes, dislikes and number polarity. Her approach also suggests a data driven approach of subscribers for a particular channel and most importantly to overcome the limitation of the existing sentiment dictionar- To define a Big Data based approach for sentiment analysis of YouTube comments which generate huge volumes of data. This data ies, but again they have limited the research to analyse only comments. YouTube is one of the most popular and engaging social media has motivated researches to identify polarity and perform up to 100 comments so their approach might not efficiently sentimental analysis to identifying and tracking user opinions. extend to larger data, which we have performed by using tools. A platform that reveals the community feedback through comments for Analysing YouTube comments is a challenging task and PIG in Hadoop environment. The work of Aliaksei Severyn [5] some level of research work has been done to perform the defines a systematic approach to opinion mining on YouTube published videos, number of likes or dislikes and number of subscribers for a sentimental analysis [2,3] using lexicographic methods and comments by modelling classifiers for predicting the polarity particular channel. While some work has been done to analyse the comments in also on trying to identify trends in the polarity of comments and the type of comment. The approach involves modelling with the current events [4], but we believe with this every using SVM combining structural and vector models which is English of a particular video. With so much increase in YouTube users, sentimental increasing user data in YouTube and billions on comments very complex in nature and given its recursive flow takes more analysis of the comments is now becoming a Big Data task and very little work posted every day, it has become a Big Data task and as time even for data limited to 1000 comments per video. Our per our knowledge little or no work has been performed to approach provides a simple framework to analyse huge data have been done on in Big Data paradigm to analyse the same. We used python analyse the comments in the Big data paradigm. The current of comments in lesser time. to extract the YouTube comments and analyse it in Hadoop ecosystem using researches have always been focused on extracting the All these previous works have been able to perform sentiment considering only the comments in the English and sentiment analysis of the comments with the limitations of the flume, pig and hive. Analysed the sentiments of a YouTube video’s comments deriving the conclusion from them, but with the increase in number of comments being analysed. The work of Ramesh users the count of users commenting in other languages have [7] have extended the sentiment analysis of the social media using only the Big Data Tools. Established a scalable architecture to perform also been in rise and as per our knowledge very little or no to the Big Data task in Hadoop and their work completely real time sentiment analysis on YouTube comments. work has been done to analyse the opinions for comments involves sentimental analysis of the tweets. In contrast our in other languages. approach is significantly different from the previous works to In this paper we carry out research on comments of a establish the approach of performing specifically the senti- Key Words: particular video in YouTube and extract sentimental polarity mental analysis of YouTube comments in Big Data paradigm of them with our main focus of performing the same using efficiently at reduced time. Sentiment analysis, big data, hadoop, YouTube comment analysis, social media Big Data in Hadoop ecosystem with the help of tools such analysis, YouTube sentiment extraction, big data pipeline, flume ingestion, python as Flume to inject the comments and PIG to perform the analysis, and Hive to view the result. The outcome of this II. Material and Methods data collection, hive query, polarity extraction, Apache pig study will enable sentimental analysis on huge volumes of comments in Big Data. We have considered interviews videos Data Collection: of Nana Patekar before and after accusation of harassment The extraction of the comments from YouTube is majorly by Tanushree Datta to find the variation in sentiments on the performed by automated script using YouTube API (API viewers from their comments. can be generated from google developers console), but YouTube allows maximum extraction of only 1000 comments Review of Literature: per video using API. To overcome this limitation, we have built We will look at some of the prior works performed by the a python to extract comments without using YouTube API. The researchers on the YouTube comment sentiment analysis. python script is developed to extract all the comments of a Social media analytics is one of the very highly worked on YouTube video whose id is to be provided as input. The script areas currently. The work of Muhamed Zubair Asghar [2] is performs web scrapping using the external lxml library and very close to our work, who analyse the opinions posted by CSSSelector function from the YouTube page. It extracts all the the user for a particular video on YouTube. They have used comments of the given video in JSON format and stores it in lexicon-based method to determine the polarity of each output file. Figure 1 shows sample comment extracted using comment of the video. The authors have also discussed on the script. At the time of extraction, the old interview video of the event classification and predicting the YouTube comments Nana Patekar had 2644 comments and the latest video had for a video. They have majorly focused on methods for analys- 1757 comments. The data extracted includes: ing individual comments and doesn’t provide mechanism for analysing all the comments for a particular video. Which is the main focus of our work to provide a holistic approach to 1 Data Science Consultant, Gyansys Infotech, India. 2 Berlin School of Business and Innovation, Berlin, Germany.
2 Department of Management Studies, Indian Institute of Technology Delhi, India. Scientific Journal of Business & Innovation Sentiment Video Analysis Comments of YouTube Using Big Data: Helping a Video Go Viral 7 8
• cid: Comment ID • Load flume ingested file into pig using JsonLoader • text: Comment text • Flatten, tokenize comments to individual words • time: Time since the comment has been posted • Compare each word with Affin dictionary to rate each word • author: The name of the comment author • Find average rate of each comment Figure 1
Data Ingestion Using FLUME: This will find the polarity score for each comment of the video. {“cid”: “UgwKemuLRpHhzEbZgeN4AaABAg”, “text”: “A truly amazing and aspiring role model Apache Flume is a distributed, reliable and available service for humanity, his name will go down in history as one of the greats.”, for efficiently collecting, aggregating, and moving large Results Storage and Analysis Using Apache Hive: “time”: “1 month ago”, “author”: “Bolster”} amounts of streaming data into the Hadoop Distributed File Hive is a technology which is developed by Facebook and System (HDFS). It can be used for dumping YouTube comment which turns Hadoop into a data warehouse complete with an Sample comment data extracted from YouTube. data in Hadoop HDFS. The flume is configured to collect the extension of SQL for querying. It resides on top of Hadoop to data from the output file of python script as source log file summarize Big Data, and makes querying and analysing easy. and processed through a memory channel into the given path Apache Hive (HiveQL) with Hadoop Distributed file System for data sink in HDFS. The configuration file flume.conf should is used for Analysis of data. The results of the PIG analysis have agent defined as below: can be stored into Hive directly using HCatalog library and HiveQL is used for result viewing. Hive is a schema-based tool 1. FileAgent.sources = tail hence must have a schema before it can load data into it. The Figure 2 2. FileAgent.channels = Channel-2 steps followed to analyse the PIG results in hive is as follows: 3. FileAgent.sinks = HDFS +4 +3 -2 4. FileAgent.sources.tail.type = exec • Create database A truly amazing and aspiring role model for humanity, his name will go down 5. FileAgent.sources.tail.command = cat
sentiment analysis. The dictionary had list of sentiment bear- 20% ing English words rated for valence with an integer between Neutral minus five (highly negative) and plus five (highly positive). III. Result Old New Each comment can be considered as collection of individ- 30% Positive ual words. To find the polarity of a comment each word is Established a big data pipeline to perform sentiment anal- 5% compared with the dictionary to find its sentiment score. ysis on the YouTube comments, successfully classified the Average score of all the words in that comment gives the comments into Positive, Negative and Neutral polarity. On the Negative sentiment or polarity score for that comment. Figure 2 shows videos analysed the negative sentiment has jumped from 5% 29% example sentiment calculation. A comment with polarity score to 29% and correspondingly positive sentiment has also seen as positive is categorized as positive comment and negative a drop from 30% to 20%, So 15% of viewers with neutral senti- Comparison on viewers sentiment score as negative comment and zero as neutral comment. ment and 10% of viewers with positive sentiment had turned between old and new video. The accuracy of the sentiment detection majorly depends on negative post the accusation on the actor. Figure 4 shows the the dictionary used. viewers sentiment distribution between old and new videos.
Sentiment Analysis Using Apache PIG: Apache Pig is a scripting platform created by Yahoo later IV. Discussion and Conclusion taken over by Apache Foundation which works on data flow language. Apache Pig platform is used for analysing the Social media sentiment analytics is on the rise and YouTube large data sets. Apache Pig can be considered as one of being a major platform for public to express their opinion the best scripting platforms which analysis unstructured and on the published video. In this paper we have presented inconsistent data in very less time by using two important an approach to perform sentiment analysis on the public References: layers of Hadoop: Map Reduce and HDFS. Pig Latin is one of comments in a YouTube video in using big data tools without [1]. Donchev, D (2018), “37 Mind Blowing YouTube Facts, Figures and Statistics — 2018”, available at: https://fortunelords.com/youtube-statistics/ (accessed 30 March 2018). the powerful and valuable languages for Hadoop. The data any kind of training. The data was extracted using a python [2]. Asghar, M.Z. et al., (2015), “Sentiment Analysis on YouTube: A Brief Survey”, MAGNT Research Report (ISSN. 1444–8939), Vol.3 (1). PP: 1250–1257. in JSON format can be loaded into PIG using JsonLoader jar script and later ingested and analysed using Big Data tools [3]. S Choudhury and JG Breslin (2010), “User sentiment detection: a YouTube use case”, The 21st National Conference on Artificial Intelligence and Cognitive Science, 30 Aug – 1 Sep 2010, Galway, Ireland. available at http://aics.nuigalway.ie/index.html file. The algorithm of the piglatin program used to analyse such as Flume, pig and hive. The traditional approach of [4]. Krishna, Amar, “Polarity trend analysis of public sentiment on YouTube” (2014). Graduate Theses and Dissertations. 13670. available at https://lib.dr.iastate.edu/etd/13670 the comments is as below: sentimental analysis of YouTube comments was not suitable [5]. Severyn, A. et al., (2014), “Opinion Mining on YouTube”, Proceedings of the 52nd Annual Meeting of the Association for Computational Linguistics (ACL’14) (2014), pp. 1252–1261, Baltimore, Maryland. available at https://www.aclweb.org/anthology/P14–1118 for huge data. This research provides us a scalable approach [6]. Ramesh, R. et al., (2015), “Big Data Sentiment Analysis using Hadoop”, International Journal for Innovative Research in Science & Technology, Volume 1,Issue 11, April 2015. to analyse very large data in the big data paradigm. [7]. Sangeets, “Twitter Data Analysis Using FLUME & HIVE on Hadoop FrameWork”, Special Issue on International Journal of Recent Advances in Engineering & Technology (IJRAET) V-4 I-2, For National Conference on Recent Innovations in Science, Technology & Management (NCRISTM) ISSN (Online): 2347–2812, Gurgaon Institute of Technology and Management, Gurgaon 26th to 27th February 2016.
Scientific Journal of Business & Innovation [8]. Lydia, E. and Dr. M. Ben Swarup. “Big Data Analysis using Hadoop components like Flume, MapReduce, Pig and Hive.” (2015). 9 10
1 Dr.Elham Shirvani , Dr.Maryam I. Introduction Formation of Metaphysical Subject in Ancient Greece 1 Embodied Cognition Mansuri , Prof. Dr. Kyriakos The issue of knowledge and consciousness in modern philoso- 2 Kouveliotis In his Philosophical Investigations, Wittgenstein argues that phy pertains to the subject. As pointed out above, the subject and Subject Roles a concept could only be defined when one takes part in a here is metaphysical. But what does “metaphysical subject” language game in which the concept is deployed. That is, mean? Before answering the question, we need to provide in the History of Philosophy only a posteriori definitions are possible, and a priori defini- a brief history of how the metaphysical subject was formed. tions are impossible. Thus, a definition of embodied cogni- As we know, the majority of philosophical issues date tion consists in the knowledge of what has been known as back to Ancient Greece, and the issue of the metaphysical embodied cognition. That is to say, the common differentia of subject is no exception. The account we provide of the forma- actual theories within the framework of “embodied cognition” tion of the metaphysical subject might seem unusual at first provides us with its definition. However, what is the common sight, but it might shed some light on the issue. Our account differentia? The thesis of cognition is defined in the entry on begins with an ontological discussion, through which the Stanford Encyclopedia of Philosophy as follows: “Cognition formation of the metaphysical subject will be accounted for. is embodied when it is deeply dependent upon features of This may well be the reason why our account seems unusual. the physical body of an agent, that is, when aspects of the After Kant, we are used to be concerned with epistemology, agent’s body beyond the brain play a significant causal or mainly when the issue at hand, i.e., the metaphysical subject, physically constitutive role in cognitive processing.” (Wilson is mainly epistemological, rather than ontological. Pre-So- Abstract: and Foglia, 2017) cratic philosophers usually remained concerned with being In Hegel’s terminology, any phenomenon is identified or existence in their view of the world and their attempt to The emerging viewpoint of embodied cognition holds that cognitive processes in and by the negation of certain other phenomena. Thus, explain the being, trying to explain the world in terms of an are deeply rooted in the body’s interactions with the world. There is a move- embodied cognition can, by the same token, be identified in element of the being. In fact, they reduced the world of being and by the negation of two other views about cognition: (1) to one or more elements of the world itself. One exception ment afoot in cognitive science to grant the body a central role in shaping the classical theory of knowledge, and (2) classical theories of here is Anaxagoras, and he serves as the key to our interpre- cognitive sciences. tation of the history of the metaphysical subject. mind. Proponents of embodied cognition take as their theoretical starting point According to classical theories of knowledge, cognition Anaxagoras was the first person who introduced the not a mind working on abstract problems, but a body that requires a mind to belongs to a transcendental, or in metaphysical terms, an notion of “reason” (or intellect: nous) into philosophy and immaterial, subject, which is not only beyond the body, but tried to explain the world in terms of reason. “Reason” is an make it function. Anyway, as the history of Embodied; There have happened a also beyond any connections to the physical. Thus, according abstract unobservable concept, which exists in, and directs few important breakthroughs in philosophy of mind, philosophy of religion and to this view, cognition exclusively belongs to the transcenden- the world. Elements appealed to by philosophers before tal subject, and ideally, the role of the body is to provide the Anaxagoras in an explanation of the world, such as the four neurosciences in recent century. These breakthroughs, despite their complexities contents of thought and cognition. That is to say, the body is elements of water, soil, fire, and air, were all parts of the and different opinion about them in each field, almost all of them tend to think solely in charge of perception, playing no role whatsoever world and observable. However, reason, as discussed by in any cognitive processes, conceptualization, categorization, Anaxagoras, lacks such properties. Now a question might of human consciousness as a virtually concrete fact, which is related to physio- reasoning, and inference. arise about the relation is between Anaxagoras’s views and This view is contrasted to the thesis of embodied cogni- the metaphysical subject. To answer the question, we need logic, social and environmental situation. Such breakthroughs bring this question tion, according to which not only is the body involved in all to wait until we explain Plato’s view. about why there has not only been such a dominant attitude in the history of these processes, but also plays a crucial role in the forma- Thus, the standard ontology of the time failed to home tion of the whole cognition. On this theory (or theories), it is in on a principle with which general knowledge was possible. philosophy, but there were a number of inclinations to deny it; In this paper we the body’s organic and neurological properties, as well as Plato had to expand his ontology to find things that lack the will consider this point. its presence in, and interactions with, the environment that properties of actual surrounding entities of the world, and enables and constructs cognition in its different aspects. Thus, yet could explain the existence of the world, and could serve the first turn in theories of embodied cognition has been from as objects of knowledge. Moreover, this expanded ontology Key Words: the metaphysical subject to the embodied environmentally is what we know as the World of Forms or Ideas — a world present subject. in which entities exist in general and eternal unity and in an Embodied knowledge, roots, metaphysic subject, embodied subject Today, much of research concerning embodied cogni- invariable way. It is such a world that can serve as the object tion takes place in areas of cognitive science, although it of our knowledge. Here, Plato draws on Anaxagoras’s nous. is fundamentally different from earlier theories of the first In fact, Plato accommodated his general concepts within a generation of cognitive scientists. According to earlier world of reason, where they cannot be infected with particu- theories in cognitive science, cognition has to do with the larity and the flow of the concrete world. In Plato’s world of “mind” and mental functions, as well as the manipulation of ideas, only kinds exist, not individuals — the human exists, but abstract symbols. These theories overlook the role of body Socrates, Plato, and Aristotle do not (they exist in the concrete and embodiment, as well as the interaction between the world)3; the fire exists, but this or that particular instance of body and the environment; as if all matters of cognition are fire does not, only the universal fire exists. exhausted by mere manipulation of abstract symbols, regard- Anyway, as it is evident, Aristotle takes the soul to be less of organic dimensions of the body and its interaction detachable from the body to avoid relativism — to be able 1 Faculty, Berlin School of Business and Innovation, Germany. with the environment. However, recent theories of cognition to judge; that is, to know. For we perceive matters of beings 2 Provost and Chief Academic Officer, Berlin School of Business and Innovation, Germany. 3 In the philosophy of Plato, we deal with a hierarchical structure of existence, in such philosophy “existence” is predicated based on stronger and weaker and higher or radically challenge those assumptions, hence creating the with our senses, and we perceive their forms with our intel- lower beings. The particular entities, placed in the world of the senses, have a weaker and lower existence than beings existing in the world of the ideas. Thereby, when we second dangerous turn by introducing the body as a knowl- lects. And forms are conceptual and universal. Thus, the active mention that that particular beings do not exist in the text, we only refer to the world of ideas and not in general. Our emphasis is on Truth viewed from the world of ideas, not the world of senses. edge-making agent. intellect functions to extract or abstract intelligible (universal 4 However, there were followers of Averroes who gave a proper role to the reason. For more see Gibson 1939. concepts or entities) from sensory and imagery objects, and 5 In Critique of Pure Reason in this part Kant explains his position: The Human Intellect, even in an Unphilosophical State, is in Possession of Certain Cognitions “a priori”. 6 According Aristotle’s definition in Categories (5, 2a11-13) the primary substance is an individual object like this table, that person... He defines first substance as a solid then actualize them, just as light actualizes colors that poten- whole and studies it in his ontology. But In Kant’s philosophy we are not concerned with ontology. It is worth to mention that in his later works Aristotle provides different tially exist in darkness. meanings of the term ‘substance.’ 7 See Aristotle’s De Interpretatione. 8 There is a conceptual distinction between “meanings” and “concepts” in philosophy. However, we use these two terms alongside each other to establish the position that an account of concepts as self-organizing and separate from meanings and words is wrong. Such an error has been perfectly pointed out by philosophers such as Wittgenstein. 9 By the latter group, we mean to refer to philosophers such as Kant and Hegel. According to Kant, a concept is what arises from applying categories to sense data, and
Hegel’s spirit explains concepts as self-organizing. Notwithstanding this, the two philosophers finally accept the intelligible and have to acquiesce to do dualism. Scientific Journal of Business & Innovation Embodied Cognition and Subject Roles in the History of Philosophy 11 12
3. Modern Philosophy and the Issue of Embodiment over time, it cannot occupy such a unifying role. Transcenden- we use the word “this,” it has no meaning except as a symbol by proponents of the metaphysics of truth are merely wills Modern philosophy is distinguished from medieval philos- tal subjects can provide such unity.” (Kant, 1999, A107, 232) for a full proposition. For example, it can be short for “there to power, which is closely tied to the human body as an ophy in virtue of its views of the place of the reason (or With the above background in mind, we can return and is something in this place; take note of it.” This is easier to active force: “Most of a philosopher’s conscious thought is intellect) and sources of knowledge. Contrary to modern provide a better answer to the above question: “what is a discern in the case of other words. secretly directed and forced into determinate channels by philosophy, medieval philosophy generally assigned a low metaphysical subject?”: the metaphysical subject is a non-em- the instincts. Even behind all logic and its autocratic postur- (or at least not much high) place to the reason. Most medi- bodied, independent, and a priori subject, which grounds the 3.2. Body in Modern Philosophy ings stand valuations or, stated more clearly, physiological eval schools of thought did not consider the reason to be prior and transcendental conditions of any consciousness and 3.2.1. Schopenhauer requirements for the preservation of a particular type of life.” sufficient for knowledge, maintaining that, without the Divine cognition, and without it, cognition is impossible. Schopenhauer can be referred to as the first philosopher (Nietzsche, 2002, p. 7) Revelation, the reason is inadequate. It should be noted that this definition of subject has who has characterized the body as a knowledge-making The will to power, which pursues its desires via drives However, in modern philosophy, when the Divine Reve- a crucial difference from its pre-modern definition. Despite agent. Moreover, he has characterized the body as an entity and instincts and constructs the illusion of consciousness, lation was dismissed as a source of knowledge, deficiencies their similarities: the word, “subject,” is originated from the to which knowledge is attributed. In his famous work, The treats the truth as so higher value entity that is deemed too of the reason, which was to bring about salvation for the Latin, “subjectum” which literally means thrown under (Critch- World as Will and Representation, he portrays the world as a great to depend on low-level bodily instincts (p. 6). In his human being, had to be compensated in one way or another, ley, 1995); that is, a substratum on the existence of which representation of the will. Concerning the human knowledge, essay, “On Truth and Lie in an Extra-Moral Sense,” Nietzsche while nothing but the reason itself was left for modern philos- the existence of other things depends. Interestingly, back in he believes that the world of which the human is aware is presents us with a more profound aspect of his view of the ophy. Attempts to preserve the place of the reason were, in the pre-Cartesian period until sometime after the Cartesian not the world in itself. Instead, it is the world that represents relation between the body and truth. In this essay, he regards fact, attempts at the revival of foundationalism, that is, to period, in philosophical terminology, the word “subjective” the will in nature, wherein human beings, the will in nature, concepts and thoughts that we know as truths to be mere base all knowledge on certainty-providing and indubitable refers to what we refer to today as “objective.” That is to say, occur via the body. In the case of humans, the will in nature metaphors, which are anthropomorphic and dependent on foundations. The undeniable fact was that of innumerable the meanings of “subject” and “object” were the reverse of and the will in the body will be the same: “there is no causal neural stimuli: “What, then, is truth? A mobile army of meta- “errors” of the mind. However, interestingly the “body” was how they are philosophically used today. connection between the act of will and the action of the body, phors, metonyms, and anthropomorphisms—in short, a sum of blamed for the errors. for they are directly identical” (Schopenhauer, 1958, p. 248). human relations which have been enhanced, transposed, and Two founders of modern philosophy, Descartes and 3.1. The Role of Language Schopenhauer considers embodiment at both levels embellished poetically and rhetorically, and which after long Bacon, were looking for ways of avoiding errors and obtain- Probably (and not positively) the reason why concepts found of perception and thought, in both of which the body is key use seem firm, canonical, and obligatory to a people: truths ing positive knowledge. For Descartes, knowledge was a central role for many philosophers is that if we break down to, and an agent of, cognition. In his view, not only do we, are illusions about which one has forgotten that this is what mostly a psychological phenomenon, separate from the the language into its part, its most fundamental part would at the level of perception, perceive in ways in that depend they are; metaphors which are worn out and without sensuous material substance. Thus, the body as a material entity was be words, rather than language as a whole, or a sentence on bodily properties and structure but also, at the level power; coins which have lost their pictures and now matter put out of the realm of knowledge. consisting of two propositions (for example, conditional prop- of thought, we think in ways in that depend on the bodily only as metal, no longer as coins.“ (Nietzsche, 1989, p. 250) Although Descartes’s error theory aims to establish the ositions), or a single proposition, or complex phrases. One structure and the will in nature which is manifested in such superiority of the will over understanding, rather than the body, might object that letters and phonemes are more basic than structure (Schmicking, 2007, p. 93). In general, he conceives Descartes rules the body and embodiment out from the realm the former. However, these linguistic parts do not signify of consciousness and intelligence as a function of the bodily IV. Conclusion of knowledge, indeed. The point becomes more evident if we meaning. In fact, words are the most basic “meaningful” units organism: “The organism is the will itself, embodied will, recall that he denies any reason or soul in non-human animals, of language. If we ignore words such as “and,” “if,” and “or,” in other words, will objectively be perceived in the brain. Entering reasoning into philosophy, and it becoming the on the one hand, and treats the human body as being the which have no meanings on their own, we will be left with For this reason, many of its functions, such as respiration, dominant paradigm of philosophy, ended up in neglecting same as the animal body, on the other hand. ordinary words of the language, including nouns, adjectives, blood circulation, bile secretion, and muscular force, are the role of body in knowledge. For many Greeks after Anax- Although Kant presents us with a profound epistemo- and relations. Furthermore, since words are universals in the enhanced and accelerated by the pleasant, and generally agoras, there was a universal rationality which rule cosmos logical turn, his subject is, nonetheless, a transcendental view of these philosophers, we arrive at concepts. robust, emotions. The intellect, on the other hand, is the mere and its inner affairs. That rationality had a ontological justi- rather than an embodied subject. By “categories,” Kant refers We seek to show that knowledge is propositional, function of the brain, which is nourished and sustained by the fication; however, the Greek analysis about language and to factors leading up to knowledge—the keys to knowledge. rather than conceptual. As pointed out, earlier philosophers organism only parasitically. Therefore, every perturbation of truth, as well as, their fear of and concern about irrational, Without a priori categories that are prior to any knowledge, mainly begin their linguistic analysis from meaningful words, the will, and with it of the organism, must disturb or paralyze skeptical world of sophists lead them too such a point of view. no conceptualization and cognition would be possible, unaware that this analysis is propositional in turn. Words the function of the brain.” (Schopenhauer, 1958, p. 216) On one hand, the correspondence theory of truth, which was indeed. Cognition obtains only in light of these categories have no meanings or concepts on their own. They acquire one of Greeks’ supposition, needs such a rationality; on the (Kant, 1999, B 161, 261). However, these a priori categories their meanings or concepts within propositions. Concepts in 3.2.2. Nietzsche other hand, their language analysis, which was word-minded, have nothing to do with the body; instead, they are related traditional philosophy or meanings in contemporary philos- The next philosopher who seriously grappled with embodi- not propositions, built fixed concepts that were firm and to a transcendental subject. Kant does not explicitly talk ophy are generally present either in a Platonic world or as ment and assigned a pivotal role to the body in the process unchangeable and were insensitive to different contexts; a about the substance of this subject. However, his distinction an intelligible in this world. However, if we take the level of of cognition and consciousness was Nietzsche, who was, in kind of approach, which could be found in Aristotle’s work, between the empirical ego and the transcendental ego analysis from words to propositions, then the question will no turn, influenced by and an admirer of Schopenhauer. For On Interpretation. Also the evidence in the modern philoso- reveals that he separates the body from the transcendental longer be the application of a concept to particular entities; Nietzsche, cognition and knowledge that are appealed to phy, neuroscientist idea, in this part. subject as well. Thus, in Kant’s analysis, the body as a knowl- instead, the question will be about relations between proposi- edge-making agent is ignored. Therefore, the body was not tions themselves, or between propositions and external things. studied long after Kant. Hegel was right that there is no direct knowledge. Just like empiricists, Kant put aside essentialism about Even when we try to avoid concepts altogether and focus objects — a position influenced by Aristotle’s definition of on our experience here and now, there is nothing that we References: the primary substance . In the first instance, Kant defined an can immediately grasp. The assumption that there is some- [1]. Aristotle. (1962). Categories. On Interpretation. Prior Analytics. Cambridge University Press. object as a multitude of sense-data which are distinct from thing here and now, which can be grasped without our [2]. Aristotle. (2006). Metaphysics. New York: Oxford University Press. one another. 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1 Milos Petkovic I. Introduction mostly in high technology companies, financial institutions Relationship Between (Ting and Lean, 2009), pharmaceutical and hotel industry Company’s goal is to improve its performance. Taking into (Mehralian et al., 2012). Tourism industry is a fast, growing and Investments Intellectual Capital consideration that the global market is highly dynamic, vibrant industry (Fishbin & Roth, 2015). In 2017, it was estimated competitive and uncertain, improving and increasing compa- that every 10th person in the world has been working in the and Financial Performance: ny’s current performance is not an easy task. In the last two field of tourism. (UNWTO, 2018). Investments in hotel person- decades, the measurement methods have been changed nel impacts their job satisfaction. (Costen & Salazar, 2013). Evidence from Serbian dramatically. Current national accounting frameworks cannot Involving company’s employees improve final performance follow adequately value creation processes as before (Owolabi and Abdul-Hameed, 2011). Satisfied employees in a because of the high importance and role of intangibles. Tradi- hotel tend to provide a better service quality to a customer as Hotel Industry 2013–2017 tional measures are highly unsuitable mainly because they they feel more enthusiastic and inspired with their job (Kong et are based on conventional accounting principles (Gan, 2008). al., 2010). Apart from the fact that satisfied employees provide After traditional financial measurement, it was necessary to better service, they also show a higher intention to stay in the include non-financial — qualitative measures of performance. company and impact the final financial result of the company There was a need for balanced approaches that will include (Chiang et al. 2008). both financial and non-financial, quantitative and qualitative Serbian tourism and hotel industry follow international measurements of performance in one unique system (Burgess trends when it comes to the increasing number of participants Abstract: et al., 2007; Ghalayini and Noble, 1996; Olve et al., 2000). In in international travels. Furthermore, in the last five years, the the last few decades growing awareness and importance growth rates in the tourism industry are higher than global and The purpose of this study is to identify the relationship between the investments in of intangible assets are coming directly from the increasing European average (Statistical Office of the Republic of Serbia, intellectual capital and company’s financial performance based on the Serbian difference between market and book value of companies 2018, World Travel & Tourism Council, 2018, Government of the (Lev, 2001). In the current global economy, intellectual capital Republic of Serbia, 2016). Along with the increased number in evidence of Hotels. Various studies proved the presence of positive relationships creates future company’s value (Edvinsson and Malone, 1997). arrivals and overnight stays, a dynamic growth in the number Bontis et al. (2000) proved that the intellectual capital is a of hotels has also been recorded (Ministry of Trade, Tourism between intellectual capital and company’s performance. Developing such significant contributor to the company’s performance despite and Telecommunications, 2018). The tourism economic impact a relationship shows the transformation process from investments in intellec- different types of industry. Because of the importance of intan- on the local economy in Serbia was estimated to 2,3% directly gible assets, companies’ investments are about 50% only in the to GDP and 6,7% of total contribution to GDP, which is still signif- tual capital into value. Intellectual capital is a strategic resource that plays an sphere of intangible assets, precisely in research and devel- icantly lower than global average (direct 3,2% and total 10,7%) important role in value creation process. The intellectual capital topic has been opment, personnel development, infrastructure (Fuller, 2002). (World Travel & Tourism Council, 2018). The aim of this study is to make an empirical investi- There are many studies that prove the strong posi- interesting last few decades taking into account that the twentieth century is a gation of effects of investments in intellectual capital on the tive relationship between the intellectual capital and organ- century of ideas, knowledge, innovations, information and changes. Parallelly, company’s financial performance by implementing the model izational performance (Bontis, 1998; Bontis et al., 2000; of Molodchik et al. (2012). Kamukama et al., 2010; Cabrita and Bontis, 2007; Seggie et the financial market became influential in the global market, so the intellectual The analysis is composed of 42 Serbian hotels over the al., 2007). If an organization wants to achieve its performance, period from 2013 to 2017. In the research paper, the following it is not possible without an existence of intellectual capital capital found very important role for itself. Analysis covered 42 Serbian hotels quantitative methods of research are implemented: descriptive (Sydler et al., 2014). Pucci et al. (2015) shows that there is a in the period from 2013 until 2017. Financial information are obtained from the statistics, stepwise method of correlation analysis and complex positive link between the company’s performance and intellec- regressions on all three research models. tual capital. The intellectual capital plays an important role in financial database “CUBE Team”. In the study was used descriptive statistics, step- The paper is organized as follows. Section 2 develops the value creation process in a company (Powell, 2003). Even wise method of correlation analysis and complex regression statistical analysis literature review related to existing literature and the most though, the intellectual capital does not exist in the balance prominent authors from the topic. Section 3 explains devel- sheet, it influences without a doubt on a company’s perfor- on three main research models in order to identify relation between dependent, oped research methodology. Section 4 presents empirical mance (Brooking, 1997). independent and control variables, precisely investments in intellectual capital findings, whereas Section 5 concludes the paper. Review of Literature: For Dzinkowski (2000) the most and financial performance. The study confirmed high positive link between important company’s intangible asset is the intellectual capital II. Material and Methods investments in intellectual capital components and financial performance on a that will enhance performance and that is defined as compa- ny’s knowledge-based equity. The importance of intellectual The present paper is a modern attempt to determine invest- sample of Serbian hotels. The study contributes to the literature of the manage- capital is emphasized in the revolution in information tech- ments in intellectual capital on one side, seen as input, and nology and the information society, the rising importance of final performance and value-creation, seen as output on the ment sciences by confirming that investments in intellectual capital components knowledge-based economy and knowledge in general, the other side. The main model used in this study was developed improves the Serbian hotels’ financial performance. changing requirements and the network society of innovation by Molodchik et al. (2012) and it is called the Intellectual Capi- as the principle determinant of competitiveness (Petty and tal Transformation Evaluating Model (ICTEM) that investigates Guthrie, 2000). the process of intellectual capital transformation in a compa- Key Words: Investing in intellectual capital is highly important for ny’s performance. companies that want to realize operationally their strategies This study is based on the financial data obtained from Intellectual capital, financial performance, hotel industry, value creation and achieve its performance (Riahi-Belkaoui, 2003). Rodri- the financial statements of 49 Serbian hotels for the period guez-Castellanos et al. (2011) proved that companies who from 2013 until 2017. The financial data was collected from invest in intellectual capital have better economic result than the financial database provided by the company “CUBE those that do not. Very often investments in intellectual capital Team”. The selection criteria required all companies to have do not generate immediate results and returns. The intermedi- demanded variables for the last 5 years. Companies that ate period is necessary to produce effects on the company’s failed to meet these requirements were excluded from the performance. The results today must come from the invest- sample. Furthermore, only companies that operate four-star ments made in previous periods (García-Zambrano et al., hotels were selected for this study. As hotels are classified 2018). The potential influence on corporate values differs within the same scale, we assumed they should provide a from industry to industry. For instance, the positive link exists comparable quality of accommodation and services. To justify
1 Berlin School of Business and Innovation, Berlin, Germany. Scientific Journal of Business & Innovation Relationship Between Investments Intellectual Capital and Financial Performance: Industry Hotel 2013–2017 Serbian from Evidence 15 16 the selection of only four-star hotels further on is due to the fact 6 composed of the regression coefficients are presented in that Serbian hospitality market is polarized with four-star hotels. model number 2. This table shows that Personnel costs have a The dependent and independent variables are justified in the Beta of ,827 while Company Size has a negative relationship at Justification of Variables following order by the literature: a very low level of statistical significance. Finally, Table number (Table 1) The size of companies was fairly balanced, comprising 7 where we used Operating Revenue as a dependent variable 11 mid-size, 18 small and 14 micro companies. There are no showed the best model fitness from all model developed for Variables — • Operating Revenues (OpeRevenue) (Edvinsson and Malone, 1997; ICM Group, Inc., 1998) large companies that operate with hotels in Serbia. Descrip- this study. Results from table number 7 indicate that invest- Dependent • Operating Income (OpeIncome) (Edvinsson and Malone, 1997; ICM Group, Inc., 1998; Lu et al., 2014) tive statistics from the sample is provided in the table below: ments in intellectual capital explain over, 94 of the variance • Net Gain or Loss (NetResult) (Baroroh, Niswah, 2013; Bontis, 2001, 1998; Edvinsson and Malone, 1997; Kamukama et al., 2010; For the purpose of this study, three multiple regression in Operating Revenue. As in the first two models, Personnel Maria do Rosário Cabrita and Nick Bontis, 2007; Seleim et al., 2004; Wang and Chang, 2005) models were developed. All models demonstrated significant costs showed highest coefficients with Beta over, 65 followed effects and showed a significant explanation of the dependent by Intangible costs and Costs of product development. Variables — • Personnel Costs (PersoCosts) (Ballester et al., 2002; Bontis and Fitz-enz, 2002; Bukowitz and Petrash, 1997; García-Zambrano et al.,2018; variables. We used stepwise method to run the analysis with Independent Koch and McGRATH, 1996; Lajili, K. and Zeghal, D., 2005; Martín-de-Castro et al., 2011; Ordóñez de Pablos, 2003) • Costs of Product Development (CostsProduct) (Martín-de-Castro et al., 2011; Ordóñez de Pablos, 2003) the estimation in the r2 change. Results from the research are • Intangible Costs (IntaCosts) (Allen and Wilburn, M., 2002; Cohen and Kaimenakis, 2006; Corrado, C. et al., 2006; Ordóñez de Pablos, 2003) presented in the following section. IV. Conclusion
The research covered in total 42 Serbian hotels over the period III. Results from 2013 to 2017. For the purpose of this study three regres- sion models were developed using stepwise method in an First model, as showed in table number 3 estimated the attempt to provide the empirical investigation of the impact of impact of Personnel Costs, Cost of product development investments in intellectual capital on the hotel’s revenue, oper- Descriptive Statistics and Intangible costs on Operative Income. Stepwise method ating income and net result, seen as the company’s financial used Personnel costs as a primary variable which explained performance. Results from this research confirm the findings (Table 2) roughly, 0457 of the variance in Operative Income. With the from previous studies that demonstrated that investments N Statistic Min. Statistic Max. Statistic Mean Statistic Mean Std. Error Std. Deviation Statistic Variance Statistic addition of next independent variable i.e. Cost of product in intellectual capital explain and lead to positive financial development, the model showed explanation of, 503 with performance. However, the significant contribution of this study OpeRevenu 44 0 93883520 166152511, 30539641,2 202577062,5 41.037.466.262.325. PersoCosts 44 6400 23139660 44915432,1 8528231,15 56569885,74 3.200.151.972.747. statistical significance demonstrated on the degree of free- was demonstrated that investments in intellectual capital influ- CostsProdu 44 0 19895720 27271787,1 5821733,56 38617011,75 1.491.273.596.666. dom of 95% but not at the level of 99%. Additional variables ence most significantly hotel’s Operating revenue, while there IntaCosts 44 34200 17619620 19501533,7 4523074,67 30002683,19 900.160.999.089.120 were excluded from the first model as they didn’t show any are significant space left to explain in Operating income and OpeIncome 44 0 15828020 23360945,8 5430762,53 36023603,33 1.297.699.997.111.9 statistical significance. As for the regression coefficients, in Net Result. These findings should benefit hotel managers, NetResult 44 0 24110340 23455546,2 6558475,52 43504005,01 1.892.598.452.426.5 the table number 4, it is evident that investments in human who put their efforts daily to stay competitive in a fast growing AvgSalary 43 179923 2333000 776300,33 67703,169 443959,369 197.099.921.564 capital significantly explain the variation in Operative income. and turbulent hospitality market that Serbia is at the moment. AvgNumEmp 44 0 196 48,98 7,265 48,189 2.322 Size 44 1 3 1,95 ,117 ,776 1 When combined with Cost of product development, Person- Limitations from this research fall to the sample size that was Valid N (listwise) 43 nel Costs still explain over 40% of the variance, while Costs limited due to the number of hotels that had available data of product development remain at, 367. The second model and operate in Serbia, as well as a multicollinearity that was was developed by using Net Result as dependent variable, encountered during the statistical tests. However, previous while same variables as in the previous model were used as research brought us to the opinion that variables tested, in independents. Model summary is presented in table number reality, are quite independent, and that they could be used in 5. Again, stepwise linear regression was the method to run the model. Further research should confirm the findings from the test. This time, only personnel costs and company size this study on hotels from different scales and different markets. Model 1. Summary with Operating Income as Dependent showed significant effects. However, even though size showed (Table 3) statistical significance at 0,05, adjusted R Squared for the sample size showed less explanation of the variance and no V. Acknowledgements Adjusted Std. Error R Square Sig. F statistical significance at level ,001. Once again, investments Model R R Square R Square of the Estimate Change F Change df1 df2 Change Durbin-Watson in human capital explained over 0,5 of the variances of Net The first author is supported by the research project (Decision 1 ,685a ,470 ,457 26725802,670 ,470 36,343 1 41 ,000 Result indicating a strong relationship between investments No. WGB-2/13/Z/2020) by Wroclaw University of Economics, 2 ,726b ,527 ,503 25556233,895 ,057 4,839 1 40 ,034 in human capital and company’s performance. Table number Wroclaw, Poland. 3 ,729c ,532 ,496 25745909,361 ,005 ,413 1 39 ,524 2,714
Figure 1 Model 1. Regression Coefficients Inputs Transformation Outcomes (Table 4)
Intellectual resources’ External and Companies’ value added as Unstandardized Unstandardized Standardized Model Coefficients B Coefficients Std. Error Coefficients Beta t Sig. quality and quantity internal factors of a return on investments in IC 1 (Constant) 3790618,480 5267076,210 ,720 ,476 (resource-based approach) transformation (value-based approach) 1 PersoCosts ,438 ,073 ,685 6,029 ,000 2 (Constant) 2361538,906 5078308,332 ,465 ,644 Framework for Intellectual Capital Transformation Evaluating Model 2 PersoCosts ,262 ,106 ,411 2,481 ,017 (Molodchik et al., 2012) 2 CostsProduct ,340 ,155 ,364 2,200 ,034 Scientific Journal of Business & Innovation 17 18
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Unstandardized Unstandardized Standardized Model Coefficients B Coefficients Std. Error Coefficients Beta t Sig. 1 (Constant) 14709607,226 13373443,003 1,100 ,278 1 PersoCosts 3,379 ,184 ,944 18,333 ,000 2 (Constant) 8198826,970 10719379,129 ,765 ,449 2 PersoCosts 2,717 ,198 ,759 13,729 ,000 2 IntaCosts 1,852 ,372 ,275 4,978 ,000 3 (Constant) 5336058,108 9795069,850 ,545 ,589 3 PersoCosts 2,342 ,218 ,654 10,749 ,000 3 IntaCosts 1,529 ,355 ,227 4,313 ,000 3 CostsProduct ,951 ,311 ,182 3,057 ,004 Relationship Between Investments Intellectual Capital and Financial Performance: Industry Hotel 2013–2017 Serbian from Evidence
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Moumita Direction in Global Market Mukherjee1, Maryam Mansuri2, Coping Strategies: Elham Shirvani3 Figure 1 Virgin Airlines Case Study Social Environmental Political Easy access to Carbon inefficiency Brexit decision information about flights Disruption in making process Easy access to information biodiversity Brexit impact on Rolls Royce about substitutes Global displacement Impact of demographic USA-Iran disagreements transition in Europe Government policy Safety and security issues
Economic Disruption in supply chain Increase in fuel price Technological & Abstract: Trade tussle between Information USA and China Innovation in operations Legal Virgin airlines founded by Sir Richard Branson is an example in aviation industry Impact of Brexit on market Innovation in Corruption and rules anticipation departmental functions related compliance about how to overcome multi-dimensional challenges through innovative strat- Decreased investment Digitised supply chain Data protection egies in order to ensure efficient operations followed by accomplishment of in transport sector agreement business leadership goals. Though from macro environmental perspective it is facing several PESTILE factors, it efficiently manages the situation through design PESTILE analysis. of respective adaptation and mitigation strategies. To deal with these factors Virgin airlines creates modifications in its value chain, enhances capabilities to create rarity in service, broadens and deepens capacities to reduce imitability under the overarching umbrella of organizational support. These analyses are I. Introduction (Grant, 2008). Given this backdrop, the current work analysed the challenges faced by Virgin airline in its macro and microen- followed by SWOT and TOWS analyses. SWOT analysis is conducted to find inter- Virgin group was founded by Sir Richard Branson in the year of vironments, how its responses and based on the analyses; three 1968 (Grant, 2008). It started its business with ‘Student’ maga- likely scenarios are built followed by recommendations. nal and external factors affecting Virgin’s operation. Then TOWS is developed to zine and gradually extended to Virgin Records, Virgin Atlantic analyse how strengths can be used and weaknesses can be overcome to seize Airways, Virgin Cargo, Virgin Communications, Virgin Holidays and many more during 1970 to 2006 (Grant, 2008). Virgin group II. Material and Methods opportunities and avoid threats. After TOWS analysis, three likely scenarios are offers different services in the field of Entertainment, Health & built to show what would be the possible best case, middle case and worst-case Wellness, Leisure, Money, People & Planet, Space, Telecom & The study uses tertiary data from literature to conduct PESTILE Tech, and Travel (Virgin Atlantic Airways Ltd., 2019). Within 10 analysis, Porter’s five force analysis and SWOT analysis. Factors scenarios with Virgin taking two assumptions of uncertainties — nature of entry of Travel services Virgin has Virgin airlines comprising Virgin Atlan- used in PESTILE analysis are given above. Industry analysis new firms and buyers’ price sensitivity pattern. In middle case scenario, Virgin tic and Virgin Australia. Virgin started airline business 35 years with Porter’s 5 force covered 5 dimensions — Competitive ago. It flies in different significant regions of Europe, USA and rivalry, Threat of potential entrants, Bargaining power of buyers, may implement IoT and other new technology, launch new services in existing Caribbean, Asia and Africa. Virgin Australia caters to different Bargaining power of suppliers, Threat of substitutes. Under cities in Australia and flies to long-haul destinations connecting SWOT analysis internal and external factors are considered market to serve with new service to existing customers and increase the customer to different places of Europe, Asia-Pacific, The Americas, The which are affecting the Virgin’s performance effectiveness. switching cost. On the other hand, it may bring this new service in new markets Middle East and Africa. According to the Virgin Atlantic annual SWOT analysis was followed by TOWS analysis of the Virgin’s report (2018), currently they serve 5.4 million passengers, earn strategies to make recommendations in order to improve the to build new customer base. In worst case, Virgin may modify existing strategies £2.8 billion revenue, and have 46 aircrafts on fleet. Further- performance indicators. to reduce cost of operations e.g., copying service strategies of new operators. more, from sustainability and social responsibility perspective it is evident that Virgin is the first commercial airlines which use sustainable fuel of LanzaTech. The $13 billion joint venture with III. Results Delta Air Lines, Air France and KLM increases service to more than 340 destinations all over the world. Virgin holds the second Macro Environmental Analysis Key Words: largest individual slots in the most capacity-constrained airports — e.g., 27 slots at London Heathrow Airport. Virgin’s headquar- Political Factors TOWS analyses, SWOT analyses, Virgin Airlines, PESTILE factors ter is at Crawley, UK and employed more than 10000 human Brexit decision making process: Among the Key issues, like- resource globally. In the history of airlines, the market position of lihood of currency devaluation due to delay in Brexit decision Virgin airlines was as market challenger where British Airways making would increase operational cost of Virgin airlines. was the major rival. In the 90’s decade, British Airways applied a Predictions reflect that the aggregate demand for aviation ‘dirty trick’ to destroy Virgin airlines by hacking Virgin’s database, industry is more likely to fall in UK market. As a result, it will started price war and tricks to take away Virgin’s customers and impact significantly Virgin airlines also. There is a further possi- tried to spread rumors. However, British Airways failed in front bility of weakening in supply chain causing disrupted service in of Branson’s strategic responses and ultimately Virgin became distribution channel. Virgin responds to this environment with
1,2,3 Faculty, Berlin School of Business and Innovation, Berlin, Germany. Scientific Journal of Business & Innovation Direction Global in Market Coping Strategies: Virgin Airlines Case Study the market leader removing British Airways from its position both adaptation and mitigation strategies. 23
Brexit impact on Rolls Royce: Another key issue is produc- Increase in fuel price: Virgin airlines faced increase in fuel tion and supply of Rolls Royce engines those are used by price by 21.9%. There is an increase in fuel price from $55/bbl Virgin airlines getting affected by Brexit tension. This aircraft in 2017 to $72/bbl in 2018 (Virgin Atlantic annual report 2018). manufacturer of Virgin decided to shift part of its design Decreased investment in transport sector of UK economy: Figure 2 approvals of larger jet engines in Germany. This will lead to Given the current situation, economists are predicting that there fall in job opportunities in UK and side by side, increase in will be further fall in economic growth (loss of £800 million a 3 operational costs and delivery delay lead to fall in their profit week including primary, secondary and tertiary sector) and 2 by £1.2 billion a year. It may raise the price of aircraft engines rise in inequality in UK following Brexit compared to before 1 for Virgin (Bloomberg News, 2018). (Business Times 2019). 0 European economic crisis due to ‘in-migration’ caused by global displacement of war victims and other refugees: Social Factors -1 The key issue in this aspect is massive global displacement Easy access to aggregator’s websites: Access to social -2 from conflict affected countries like Syria, Libya, Afghanistan media has increased access to different aggregator -3 and currently 22 million people count the displaced refugees websites like makemytrip, TripAdvisor, Booking.com, Vayama, in Europe (UN International Organization for Migration, 2018). asaptickets, yatra, sparefare, cheapflight where customers Brexit decision Brexit impact Global USA-Iran Government Safety and Huge political debate is involved in EU policies on migrants get detail information about basic and augmented services, making process on Rolls Royce displacement disagreements policy security issues and refugees and the airport destinations are becoming reasons of price differentiation and many more. However these more vulnerable given the increasing number of war migrants. sites also help them to find information about substitutes given Direction and level of impact of political factors (+3 very high, +2 high, +1 low, 0 neutral). It resulted in strict immigration regulations at airports leading the low switching cost between airlines. to 300% increase in flight delay compared to 2017 in airports Demographic transition in Europe: Europe is facing Low birth like Madrid, Palma de Mallorca, Lisbon, Lyon, Paris-Orly, rate (10.018 per 1000 population), low death rate (10.261 per Milan or Brussels (CNN Business, 2019). 1000 population) — as a result proportion of elderly population USA-Iran disagreements: As US President Donald Trump is increasing and the upper portion of the population pyramid differs the nuclear deal with Iran, the relation between these is getting heavier in European countries (World Bank, 2019). two countries are worsening with time. For example, USA Higher proportion of elderly population in the population Figure 3 sends airstrikes and Iran shoot down US drone in the sky composition implies requirement of higher amount of pension of Strait of Hormuz (BBC News, 2019). All such incidents are fund per year. Conversely less young population implies 3 raising tension for long-haul flights having route over the lower workforce participation leading to inadequate earning 2 Middle East (CNN Business, 2019). It reduces operational of government through tax collection to compensate pension 1 efficiency in terms of increasing operational cost, fuel cost requirement. due to flying longer route; higher sky congestion of both 0 passenger and freight service increased travel time (The Technological Factors -1 National, 2019). Technological innovation in operations and supply chain: -2 Government intervention leading to global policy Virgin airlines uses Internet of Things and Artificial Intelligence -3 changes: New and dynamic socioeconomic policies bring to ease the operational process, increase efficiency through latest regulations on aspects like safety issues which modify reduction of time and cost of rendering service. Disruption in global Increase Trade tussle between Impact of Brexit on Decreased investment definitions and features about flight rights. Eventually this Innovation in operations: Virgin airlines uses Information supply chain in fuel price USA and China market anticipation in transport sector factor influences routes and reroutes, slot access, data Technology to efficiently manage different functional processes. protection, ensuring environmental sustainability through Any cyber threat or attack leads to disruption in operations Direction and level of impact of economic factors (+3 very high, +2 high, +1 low, 0 neutral). corporate social responsibility (Virgin Atlantic annual report, leading to revenue loss. 2018). Digitised supply chain: Operational systems of different tier Impact of safety and security issues on supply chain: of suppliers in the supply chain are linked through Cloud. Threat Assessment of terrorism and security related incidents in the linked domain may impact the operation of Virgin airlines. for timely response is required for steady and consistent operational and financial performance of aviation industry Legal Factors (Virgin Atlantic annual report, 2018). Compliance with anti-bribery and corruption: Unethical behaviour of employees affects service delivery negatively Figure 4 Economic Factors leading to revenue loss. Non-compliance is handled through 3 Disruption in global supply chain: Virgin Atlantic depends fines as defined in legislation. 2 on major suppliers with respect to aircraft, augmented services, Compliance with rules and regulations: Under aviation uniforms, foods and beverages etc. Any failure or inefficiency sector, Virgin has to follow rules and regulations of different 1 on the supplier side would delay operational performance authorities for e.g., Civil Aviation Authority (CAA). 0 and impact Virgin’s customer relationship strategies. Data protection agreement: As per General Data Protection -1 Trade relation between USA and China: US levied 25% tariff Regulation 2018, fine is levied to the person or organisation if -2 on $200 billion of Chinese goods and China — in response — there is breach of contract or non-compliance. imposed 25% tariff on $60 billion of US goods. IATA expressed -3 that this trade war will have impact on passenger traffic and Environmental Factors cargo business of airlines (South China Morning Post 2019). Environmental impact of fuel leading to carbon ineffi- Easy access to information Easy access to inforamtion Impact of demographic Influence of Brexit decision on demand for air travel: ciency: Shortage of engine supply forced Virgin to use Boeing about flights about substitutes transition in Europe A survey of 7000 business in UK has shown that economic A330-200 instead of environment friendly Boeing 787-9. growth in UK is getting stagnated leading to negative impact Catering service causes disruption in biodiversity: Virgin Direction and level of impact of social factors (+3 very high, +2 high, +1 low, 0 neutral). on aggregate demand for services rendered by aviation indus- serves 10 million meals onboard each year. Food supply try. It implies aviation sector will face lower demand for both sustainability compliance is a major issue to protect environ- B2C and B2B services (British Chambers of Commerce 2019). ment under corporate social responsibility. Scientific Journal of Business & Innovation 26
Industry Analysis Force: Threat of potential entrants Degree of strength: High Competitive Forces (Porter’s 5 Forces) According to literature, the threat of new entrants in aviation Figure 5 industry is high. According to Baxter (2018), 1300 new airlines Force: Competitive rivalry entered into global market in last 40 years. Factors influencing 3 Degree of strength: Very high new entry include demand-side economies of scale, access 2 Competitive rivalry is very high and intense in aviation industry. to service distribution channels, access to secondary buy 1 Different macro environmental factors influence the degree and sell of airport slots, low customer switching cost and new of rivalry. Homogeneous and perishable nature of service, government policies etc. Virgin’s strategic response to these 0 oscillation in industry growth, high exit barrier, difference in factors are analysed below. -1 firm’s operational structure, need for capacity adjustment Causes of rivalry: -2 etc. are some factors affecting the degree of competition • Point to point air travel market is easy to enter (Shaw 2016). -3 among airlines. • Large firms find entry easier due to strong brand position, Causes of rivalry: economies of scale, extensive distribution, large route Innovation in Innovation in Digitised • Increasing local competitors. network, large scale of operation (IATA 2011). operations departmental functions supply chain • Intangible service cannot be stored. • Virgin serves long haul routes and face threat of new entrants • Cost on developing and offering capacity is sunk cost per in distant markets. For example, geographical area nearer Direction and level of impact of technological and information factors (+3 very high, +2 high, +1 low, 0 neutral). aircraft in nature resulting in impact on price discounting to the hub of its competitor. (Baxter 2018). • New entrants get easy access to service distribution chan- • FSCs and LCCs sell homogeneous products and services. nels through travel information websites. Nature and degree of differentiations are copied by • New entrants start serving in congested airports if slot capac- competitors (IATA 2011). ity of existing airlines is reached or infrastructural expansion • Higher fixed and variable cost at individual level is evident has been done. and marginal cost per passenger decreases with increase • Loyalty programmes generally have strategy in lesser Figure 6 in scale of operation (Baxter 2018). degree to prevent switching of customers. • Barriers to exit retards to take decision on reducing cost • In some countries government policy approves new entries. 3 while facing higher variable cost. Virgin Airlines’ response: 2 • Sale of aircraft leads to capital loss. • Virgin is making exhaustive code-share contract with Flybe • Closing of one FSC destination has flow-on effect on other integrating wider network of domestic destinations, sched- 1 FSC services. ules and designs services in such a manner so that it can 0 • To maintain compliance with rules and regulations it has to streamline response from large number of customers — to -1 follow mostly the scheduled routes. manage threats of other LCCs (BBC News 2019). -2 • Reduction of capacity due to reduction in demand • Started different flight deals for different market segments increases average cost. to compete with Lufthansa offers, Emirates Executive, Qatar -3 • Maintaining higher capacity with many connections cover Executive and Etihad’s ‘The Residence’ service. For example, marginal cost but not the capital cost. special rates for Upper Class with Add-ons through flying Compliance with anti- Compliance with rules Data protection • Rapid industry growth is heterogeneous across geographic club and onboard services, different flight + hotel deals from bribery and corruption and regulations agreement areas and leads to experience repetitive shorter profita- different destinations. bility phases. • For P2P air travel service Virgin enjoys economies of scale Direction and level of impact of legal factors (+3 very high, +2 high, +1 low, 0 neutral). • Higher price competition — competitors like Norwegian Air through alliance and serves in partner’s markets with cost Shuttle, Wow Air follow cost leadership strategy. leadership. Virgin Airlines’ response: • Virgin’s loyalty programme — Flying Club — offers different • Partnership with Delta. tiers of services for different price. Red Tier earns miles, • Impact on price discounting is reduced by capturing value spends miles on reward flights, upgrades; Miles plus Money from premium and economy class i.e. through market benefits if purchased with hotel and car services. Silver Tier segmentation. earns 30% more miles, offers premium check, priority board- Figure 7 • Service differentiation — e.g., — increased value by offering ing along with Red Tier services etc. Gold Tier offers 60% 3 Chauffeur service to business class travelers. more miles with complementary seat, extra baggage, upper • Aircraft acquisition. class check in for any cabin etc on top of that. 2 • Follow Hybrid model of both differentiation and cost lead- • Virgin’s alliance helps to operate with larger slot capacity. 1 ership to combat both price competition and differentiated 0 service offerings of competitors. -1 • Alliance with Delta, Air France-KLM helps Virgin to optimize routes and connection networks, code-sharing to cover -2 partner’s market with cost efficiency (Baxter 2018). -3 • This alliance helps in risk sharing for the other partner in own existing market (Evans et al. 2012, Inkpen & Ramaswamy Impact of fuel causing Catering service causing 2005). carbon inefficiency disruption in biodiversity
Direction and level of impact of environmental factors (+3 very high, +2 high, +1 low, 0 neutral).
12 Full Service Carriers.
Direction Global in Market Coping Strategies: Virgin Airlines Case Study 13 Low Cost Carriers. 27 28
Force: Bargaining power of suppliers Force: Bargaining power of buyers Degree of strength: High Degree of strength: High Suppliers’ bargaining power in airlines industry is high due to Buyers’ bargaining power in aviation industry is high and interplay of different macro and micro level factors influencing increasing as the availability of aggregator websites Figure 8 the industry. Geopolitical situation determines the level of increases with transparent details about adequate number dependency on particular supplier for a certain tier in the of flights by price differences and service differentials. Corpo- External factors: Opportunity supply chain. Suppliers’ bargaining power related factors rate customers leverage more power compared to individuals Internal factors: Strength Potential with booming tourism industry in aviation industry and respective response of Virgin is and strategies are required to retain the customer base and Higher profitability Increase in demand for long-haul destinations described below. simultaneously maintaining the revenue targets. Strong market position Agreement with other airlines Good network alliance Causes of rivalry: Causes of rivalry: in a strategic manner • Engine and airframe manufacturing is concentrated among • Increased access to online booking websites helps to few suppliers. compare prices and benefits offered by different airlines. • Switching cost between suppliers is moderate because Corporate customers purchase tickets in bulk and leverage higher fixed cost involved in installing new engine type; power to lower the price. Exhaustive information and low External factors: Threat time lag between order placement, production, delivery switching cost are responsible for higher bargaining power Internal factors: Weakness High degree of competition and installation; less number of suppliers (Baxter 2018). of individual customers. Fall in revenue Rigid regulation in the aviation industry • Market for suppliers is big and they face competing • Travel agents possess good power to switch corporate Limited scale of operation Unforseen events customers (Pride 2014). customers from one airline to another. • Airline industry depends on skilled personnel and cost • Business travelers are highly important for airlines as for them is higher. Furthermore, unionised airlines face frequency of flight booking and availability is a key distin- higher cost if employees’ bargaining power increases with guishing factor to them. SWOT analysis. change in labour regulations in the operational country. • Individuals prefer low cost leisure trips and switch to airlines As risk mitigation strategy at matured state of the industry offering lower price. trade off between bearing union related expenditure and Virgin Airlines’ response: encouraging new entrants is conducted. Sometimes, entry • Virgin’s alliance use one global distribution system under is allowed at the cost of competitive advantage. their distribution system to make detail information • Airports enjoy monopoly depending upon the number of available. Micro Environmental Analysis • Improve the digitisation of the value chain through more traffic it allows a day to different airlines. Airport switching • Virgin airlines and its alliance use their own travel agents efficient use of IoT and SaaS so that cost involved in the costs are high especially for FSCs. to retain and develop new corporate and individual SWOT analysis supply chain can be minimised. • The need for catering services at all flights is met either clients. They offer special incentives for agents to maintain SWOT analysis to assess microenvironment of a business • Strategic partnership with tourism industry, launching new through in-house catering service or outsourcing of the motivation towards Virgin (Baxter 2018). helps to understand the internal and external factors influenc- long-haul flights with local LCC and FSC; relating to the same. Switching cost between service providers is low • Airlines use Loyalty programmes to create switching costs ing the overall functions. Strengths and weaknesses denote existing market of partner firms to increase the number of however existing regulations pose entry barriers and they and Virgin’s frequent flyer programme of three tiers is a the internal positive and negative factors while opportunities customers and sales revenue. become monopoly (IATA 2011). strategy for customer retention of different segments with and threats represent factors related to external environment. • Financers ask for higher return on capital due to high risk highest focus on premium class passengers. Below SWOT analysis of Virgin airlines is conducted. ST: Options that use strengths to avoid threats prevails in the aviation industry. • Virgin and its alliances strategise on price differentiation • Virgin’s strong market position in Europe and USA can be • Suppliers who control air traffic at times have monopoly based on frequent flyer benefit offers, onboard services TOWS solutions used to combat higher degree of competition emerging power and airlines pay higher price for that. and augmented services like hotel and car rentals. These SWOT analysis is followed by TOWS to find ways how Virgin with new LCCs. Virgin Airlines’ response: strategies are modified based on response to marketing can use its Strengths to take advantage of Opportunities and • Strong promotional activities are to be increased to bring • Virgin and its alliance maintain and nurture values in campaigns and advertisements (Baxter 2018, Virgin Atlantic avoid Threats, explore options to overcome Weaknesses and the difference in quality and commitment to service that relationship with suppliers to mitigate and adjust supplier Airways Ltd 2019). take advantage of Opportunities and avoid Threats. Virgin offers compared to low cost carriers. power (Baxter 2018, Virgin Atlantic Airways Ltd 2019). • Virgin and its alliances have a number of hubs globally — Force: Threat of substitutes SO: Options that use strengths to take advantage of WT: Options that minimise weaknesses and avoid threats Heathrow and Gatwick of Virgin, Paris Charles de Gaulle Degree of strength: Low opportunities • Increase scale of operation with new alliances (as built of Air France and multiple hubs of Delta airlines. These Threat of substitutes is relatively low and Virgin’s response • Arrange special long-haul flights for travellers of thematic with Delta Air Lines for FSC or Flybe to compete with LCC) hubs are connected to several spoke cities. Moreover, related to the threat is presented below. tourism under Virgin Holidays and Vacations or limited targeting geographical regions with entry barriers or strict Virgin maintains good relationship with airport authorities Causes of rivalry: editions. regulations for new entrants. to sustain long-term relationship. • Airlines industry service is the fastest mode of transport • Develop partnership with different tourism and hospitality • Adopting economies of scope and diversification to offer • Virgin has its own catering service which offers several compared to railway or other modes. services, five and seven star hotels and offer special service by copying LCC pricing — i.e., middle way of varieties with special deals. The foods are environment • Declining real cost of air travel due to high competition discounts to their tourists. differentiation and cost leadership strategy in new market friendly. make air travel attractive. • Create new alliance with Middle East FSCs like Emirates along with existing ones. • High speed railway networks are developing rapidly and Airlines, Etihad Airways and Qatar Airways to develop competing with air transport. market and build a strong position. Scenario development Virgin Airlines’ response: • Increase efficiency in the value chain with alliances and To build the scenarios for Virgin airlines two different contexts • Virgin offers comprehensive service packages like Air code-shares and reduce operational and marketing cost. of uncertainty are assumed for the analysis. Based on previous + Hotel + Car which are not available in other forms of research works, it has been found that airlines industry may transportations. WO: Options that overcome weaknesses to take advan- face two types of new entrants in their market of operation — • Virgin also started Virgin trains — though it is not so tage of opportunities firms with new technological knowhow i.e. explained by Schum- successful like other Virgin products and services, it tried • Increase the scale of operation where Virgin faces peter as creative destruction (if firm applies new innovative to enter into the substitute market. competitive advantage. technology and serves with enhanced or new product in the • Increase sales revenue through strengthening value market) or without new technological knowhow (Pisano 2015). propositions — e.g., in terms of wider network coverage, It is also evident from literature that degree and direction of innovative ways of customer satisfaction. price sensitivity among buyers affect marketing and opera- tional strategies of airlines (Wulf, Brands and Meißner 2011). Scientific Journal of Business & Innovation Direction Global in Market Coping Strategies: Virgin Airlines Case Study 29 30
IV. Discussion Worst case scenario Uncertainty increases when new entrants apply innovative Best scenario technology while entering the market and at the same time Figure 9 Uncertainty is lowest when new entrants do not possess any buyers’ price sensitivity is high or increasing — this is the new technological knowledge and therefore do not apply worst-case scenario. To deal with the situation, Virgin may Decreasing price sensitivity innovative technology while entering the market and buyers’ modify its existing strategies to reduce cost of operations among buyers price sensitivity is low or falling — this is the best case scenario. e.g., copying service strategies of new operators — their tech- In a scenario when new firms are entering in the market with nologies along with flexibility and dependability strategies no special technological knowhow and at the same time through capability-cost focus in strategy building. Addition- there is decreasing price sensitivity among customers, Virgin ally, it may pay commission to some of the influencing travel may adopt new technology to improve its value chain, extend agents and aggregator websites to control buyers’ choices
Middle of the road Best case to new market e.g., Virgin Atlantic in Middle East making and preferences. scenario scenario alliance with existing FSCs and LCCs as well as render new service like special aircraft in collaboration with emerging needs in tourism industry. Therefore it may depend upon V. Conclusion broadening of its services with capability-differentiation focus. Entry with The Virgin group has shown very effective design of contex- Schumpeterian no special Middle of the way scenario tual strategies in order to mitigate the impact of macro and entry technological know-how Uncertainty is moderate in two situations which are named as micro-environmental challenges faced by them in their history middle of the road scenarios. The situation can be described of operations for decades. Macro challenges like impact of as — a) the market is facing low or decreasing price sensi- Brexit on the supply chain, global displacement, fuel price tivity among buyers and new entrants make Schumpeterian hike, trade conflicts, demographic transition were efficiently Worst case Middle of the road entry; b) new entrants possess no such technological knowl- tackled with business process innovations, operational and scenario scenario edge but existing firms are facing increasing price sensitivity environmental steps. In addition to this further, the micro level among buyers. In such a situation, Virgin may implement IoT, internal organizational factors affecting Virgin’s operation new applications and analytic techniques to enhance the impacted performance through fall in revenue and the global service in its supply chain as it started in fleet 787, launch scale of operation whereas the external factors like increas- new services in existing market to serve with new product ing magnitude of competition, strict regulations and covariate and service endowment to its existing customers and increase Increasing price sensitivity shocks also had influence in its performance. The TOWS anal- among buyers the customer switching cost. On the other hand, it may bring ysis has shown that how using the network alliance, exploiting existing service bucket in new markets to build new customer strong market position and existing competitive advantage base. Therefore, it combats the situation with either extend- would increase the scale of operation and how it would use ing capabilities using capability-cost focus or deepening their the differentiation and cost leadership strategies for market Broadening existing capabilities applying capability differentiation focus. penetration and extension. The strategic scenarios help to understand the possible ways towards innovative solutions through capability-cost focus and capability-differentiation focus and broadening as well as deepening the approaches New operational New technology towards accelerated effectiveness. strategies with innovative implementation in domain knowledge for market reengineering for market development and service develoment and service extension diversification References:
[65]. A Medium Corporation (2019) Quick Review of Artificial Intelligence and IoT in business/aviation/longer-journeys-higher-costs-expected-as-airlines-avoid-iranian- the Aviation Industry [online] available from
penetration and service penetration and service [69]. BBC News (2019) ‘Flybe rescued by Virgin and Stobart’. BBC News [online] 11 [82]. Morales, A., Katz, B. (2018) ‘Rolls Royce adds to Brexit alarm sounded by UK January. available from
Direction Global in Market Coping Strategies: Virgin Airlines Case Study airspace’. The national [online] 24 June. available from Chaditsa Pulatova1, I. Introduction II) Concepts: Definition and Justification A Case Study on Successful Anastasios Fountis1, In 1968 Carr (1968), suggested it was acceptable for business Peter Houlis2 The European Commission defines Corporate Social leaders to be wheeler-dealers, responsible only for accumu- Implementation of Ethics and Responsibility (CSR) as “a concept whereby companies lating wealth for themselves and their companies. Friedman integrate social and environmental concepts in their busi- appears to support this notion claiming “the primary and Responsible Business Policies ness operations and their interaction with their stakeholders only responsibility of business was to maximise shareholder voluntarily” (European Commission 2001:4 and 2002:3). The wealth” (Friedman, 2007). Both definitions promote respon- Organisation for Economic Co-operation and Development sible business as being the one that focuses on increasing at a Corporate Level Commission (OECD) following a close cooperation with busi- its financial gains. However, high profile incidents, such as ness, trade unions and NGOs, introduced an alternative Nike’s employment practices in developing countries have term of Responsible Business Conduct (RBC). Described initiate penetrating examination of business activities and as “making a positive contribution to economic, environ- policies (Wazir, 2001) combined with pressure from the media, mental and social progress to achieve sustainable devel- non-governmental organisations (NGOs), the European Union opment and avoid or address adverse impacts related to (EU) and United Nations (UN), (UN/Amnesty Report; 2004; an enterprise’s direct and indirect operation, products or Clark, 2000; Brammer and Pavelin, 2004). Furthermore, nega- services” (European Commission). In short, organisations tive publicity campaigns have made it clear that a responsible should conduct their business ethically.This study examines business has a duty not “abandon” its “social” responsibility. how the Managing Director (MD) of Lion Limited, an award- In 2002, the World Business Council for Sustainable Abstract: winning security integrator reliant on public sector clientele, Development (WBCSD) defined CSR as “business commitment This study examines how the Managing Director (MD) of Lion Limited, an award- including major governmental bodies, NHS Trusts, local to contribute to sustainable economic development, working authorities and Universities,as well as a growing blue-chip with employees, their families, the local community, and soci- winning security integrator reliant on public sector clientele, including major customer base managed a contemporary ethical issue of ety at large to improve their quality of life” (WBSCD 2002). governmental bodies, NHS Trusts, local authorities and Universities, as well as “alleged” sexual harassment to one of its employees. The Taking into consideration the European Commission’s defini- first part introduces the dilemma, defines the concepts of tion mentioned earlier, it becomes clear that CSR is a diverse a growing blue-chip customer base managed a contemporary ethical issue of responsible business, sexual harassment and ethical issue concept that depends on the nature of an organisation and “alleged” sexual harassment to one of its employees. This case study is using and clarifies why Lion Limited is a reliable business as well the industry sector in general. It is highly contingent on cultural, as why sexual harassment allegation is a moral issue and geographical and political factors (Maignan and Ferrell, 2003; the company name Lion Limited to protect the integrity and confidentiality of the for who. The second part scrutinises the matter in question Welford 2005; Habisch and Jonker 2005) but ultimately is from three distinctive levels; individual, institutional and envi- of benefit to both the organisation and society. Taking into company involved, where a freelance consultancy was provided by the authors ronmental, and how they contributed to the issue. Finally, the account the above comments, Lion’s customer type; blue-chip, on implementing CSR. third part looks at how this business’ response compares public and pseudo-public sector, and the operational culture with less responsible companies in similar circumstances. described in their CSR policy, it is safe to conclude that Lion Limited is a responsible business. The Company comply with Key Words: legislation and adhere to professional standards operating II. Material and Methods transparently and conducting business in an open, honest and Corporate social responsibility, business ethics, management ethical manner. Providing a level of service that they would I) The Dilemma expect to be reciprocated while maintaining integrity and In February 2010 Lion Limited appointed a new General confidentiality and embracing partnership and cooperation Manager, a post considered by the board as essential to the with the communities in which they operate. While negative MD’s strategic development of the business. The selected unlawful workplace behaviour such as harassment, intimida- candidate Anna, stood out from the other interviewees, was tion and discrimination, are taboo, (Lion Limited). appointed just two months before the UK’s pre-eminent The Equality Act, Section 26 (2) EqA 2010 defines sexual security exhibition and conference, which Anna requested harassment occurring when A engages in unwanted conduct to attend. As she felt the event would provide both a great of a sexual nature against B. Where that behaviour has the insight into the industry and the ideal opportunity to meet in purpose or effect of violating B’s dignity or creating an intim- person some of Lion’s key suppliers. Anna agreed to travel to idating, hostile, degrading, humiliating or offensive environ- the exhibition, early on the first day of the exhibition; Monday, ment for B (Millington et al., 2015:109-110). The definition is by car with Simon, two other members of the sales team and biased in favour of the claimant’s perspective. Thus, if a victim the service manager. That night, Anna and her colleagues had made it clear that he or she found the conduct unwelcome, were joined by two other sales staff, John and Josh, and they the continuation of such behaviour will constitute harassment all attended a supplier’s function. On Tuesday, Anna returned (Millington et al., 2015:110). Finally, Ferrell & Fraedrich (1991) by car with the MD, sales manager and John; the others left consider “an ethical issue either a problem, situation or oppor- earlier. During the trip, the MD sitting on the front passenger tunity which requires an individual or organisation to choose seat with the sales manager driving, had to ask John to tone from among several actions that must be evaluated as right or down his conversation with Anna, as it was felt inappropri- wrong, ethical or unethical” (Ferrell & Fraedrich, 1991). ate. On Wednesday, the following morning in the office, the The sexual harassment allegation, in this case, is not MD apologised to Anna for John’s behaviour, which was only a legal issue under the Equality Act 2010, it is also an deemed unacceptable. In response, Anna dismissed the ethical issue for the MD of the Company. The complainant, incident saying, “I can handle myself and male attention”. Anna, was considered the ideal candidate to fill the newly However, on Thursday morning, Anna submitted an official created GM post considered essential to the company’s stra- letter of complaint about the actions of one employee. In her tegic goals. Furthermore, the MD, a fellow female, needs to letter, Anna alleged that Simon had overindulged at the free remain indiscriminate and see it as of paramount importance bar, and made sexually explicit comments and unwanted to do the right thing and investigate the allegations following advances in front of clients and staff members. This action the Rawls’ theory of justice principle (Michelman, 1972). Part II was unexpected as at no previous time was it mentioned. expands on the individual factors to a greater extent. 1,2 Faculty, Berlin School of Business and Innovation, Berlin, Germany. 3 Independent Consultant. Scientific Journal of Business & Innovation A Case Study on Successful Implementation of Ethics and Responsible Business Policies at a Corporate Level 33 34 Individual an escalation route. Becoming the leading investigator had reporting procedure and healing mechanism. In addition, III. Discussion The MD, who considers herself an ethical leader who through- its pros and cons, on the one hand, the MD was very familiar regular training was conducted to inform employees that out her career in the security industry, has guided by her prin- with the organisation, the business culture of the company, sexual harassment was unacceptable. Given the nature of What would have happened if…? ciples and values, which go well beyond any financial profit. and would provide a less intimidating process for both parties Lion’s business, the MD promote protection of its clientele’s This section considers the same issue but from a different Anna in her complaint letter raised a preeminent issue alleging involved. On the other hand, the MD ran the risk of being assets along with ensuring that her company was protecting angle. Would we have been talking about Lion Limited as an sexual harassment by a colleague, failure to address it would accused of a lack of objectivity and an actual or perceived its employees. ethical business that dealt with sexual harassment allegations have brought a series of adverse outcomes one of which conflict of interest (Lieber, 2012:88). To prevent the latter and in the appropriate manner if Anna had not been offended by being personal reputation damage to the MD herself. An anal- be charged with a “runaway investigation” (Lieber, 2012:88), Environmental John and Simon’s conversation of a sexual content, but Josh ysis of the Institutional implications follows in the section below. the MD requested that the HR Consultant provided a clear and Sexual harassment has gained considerable attention in the who was also present was? The initial reaction would come Nowadays, the shift is towards viewing the business well-structured process for the investigation. Before the investi- context of equality of opportunity at work (Gutek, 1985; Wise from Section 26 (2) EqA 2010, which has already discussed leader (MD) as a professional with a responsibility to promote gation started, Anna was informed about the MD assuming the &Stanley, 1987; Kremer & Marks, 1992). But despite its exist- above and approaches sexual harassment from the claim- and deliver the company vision, inspire and motivate employ- leading investigator role and whether she objected or not. She ence in the US Civil Rights Act of 1964, and the Race Relations ant’s perspective who has to be agent B who received the ees, develop brand culture, embrace diversity and manage was advised of her right to be represented and given a list of Act and the Discrimination Act of 1975 in the UK. Was for actions of agent A. Would Josh be able to count on the law if resources and change, Patel, (2017). Leaders with ethical integ- pertinent witnesses as well as relevant information, gathered many decades left under-reported and understated. It was he submitted the letter of complaint or legally would it have rity, like companies with moral integrity, align their personal and documented in a logical and timeline order. not until 2017 and the #MeTooMovement that the years of been weak and unsubstantiated? Would peer pressure be and company goals for the benefit of all the stakeholders. During the process, it was becoming clear that the situ- trivialising accusations of sexual impropriety finally, saw many exerted from the #MeeTooMovement, and would there be any Profit, in this case, is a consequence of serving stakeholders ation was not as it was initially portrayed. Anna could not alleged perpetrators experience adverse consequences for implications on the reputation of the company? From Lion’s interests (Stewart & Paine, 2012). substantiate her statement “he wanted to get into my knickers their behaviours (Gibson et al., 2019). Before 2017, for the perspective, its CSR Policy states that “Unlawful workplace For Brown et al. (2005:120) ethical leadership is “the and show me a good time”, and showed explicit preference to most part, the sexual harassment of males and females was conduct; discrimination, intimidation or harassment will not be demonstration of normatively appropriate conduct through indulge in sexual banter with John (the younger salesman) but largely endured in silence (Gibson et al., 2019: 2018). For Lion, tolerated” which could to an extent make Josh’s case worth personal actions and interpersonal relationships, and the unhappy with similar talk from Simon (the older man). The latter an ethical business that complies with employment law and filling? In which case, Lion and their MD would surely continue promotion of such behaviour to followers through two-way was reported by witnesses who were happy to be interviewed, its CSR policy, whose aim is to protect its client’s assets and its to view staff as one of the most valuable assets and for that communication, reinforcement, and decision-making. Ethical some of whom were not even working for Lion Limited. esteemed reputation in the industry. Underrating Anna’s offi- reason would not alter anything in her approach to an ethical leaders encourage and promote mutually beneficial relation- What also became clear was that Simon admitted he cial letter of complaint on alleged sexual harassment would issue arising. ships with employees that expand beyond specific financial was drunk but denied making any sexually overt comments. be detrimental. It would violate its core principle, would have exchange agreements and social norms or reciprocity (Brown Furthermore, Simon agreed to a reconciliatory meeting that a damaging effect on its brand reputation and ultimately may and Trevino, 2006; Walumbwa and Schaubroeck, 2009). Highly was arranged by the MD, where he was informed about his have resulted in bankruptcy. Business is all about making IV. Conclusion ethical leaders don’t bend under external influence. Instead, inappropriate behaviour towards a fellow member of staff that profit, and no prestigious client would ever trust an irrespon- they act according to their fundamental values and beliefs. was unprofessional. He was also cautioned to moderate his sible company that fails to tackle an ethical issue. Discerning This study has presented a case of alleged harassment When leaders work harmoniously supporting and in line with alcohol intake and submit a letter or unreserved apology to clients would not think twice about cancelling nor renewing presented in a very formal manner to the MD of the company, their values, their reward is a perception of openness and Anna. Anna was advised to remain professional at all times as their contracts. a female who is very proud of being an ethical leader of a truthfulness from employees (Cha and Edmondson, 2006). well and not allow any window of opportunity to any member responsible business. Who has not only got to the bottom of Being an ethical leader, the MD ensured that inappro- of staff during office hours and while representing Lion Limited a serious ethical issue and resolved the matter without further priate behaviour was not tolerated regardless of where it to make any sexual comments. escalation but also maintained the company’s standing in the emanates from, and as will be discussed in the institutional On behalf of the company, the MD presented in writing security sector. Being a responsible business is not an easy section below, encouraged all employees to report such to Anna the actions taken in response to the official complaint task, and this was very clear while conducting the research, but behaviour and even included it in the employee handbook. and the following statement “I understand from you that you failure to do so can jeopardise the company’s short and long Furthermore, the MD conducted an initial assessment of the have accepted John’s apology, and acknowledge that the term reputation. Moreover, this study has provided a glimpse alleged incident to determine the appropriate form of action incident has been satisfactory managed. Furthermore, you of how the whole case could be different if one single aspect and whether it requires formal or informal treatment. Accord- now wish to put it behind and that no further action is required”. changes. Therefore, complying with the company’s CSR and ing to Darroch & Gill et al., (2006: 3), “investigations may have Anna confirmed in writing that the matter was concluded to HR rules is of paramount significance. a variety of purposes. Such as identifying miscreants, apply- her satisfaction. To defend her ethical leadership, the integrity ing internal disciplinary measures, justifying dismissals and of the investigation, the data gathered and the actions taken facilitating civil litigation or merely a revision of policies and should it have been challenged in court, the whole process procedures”. Given the nature of the allegation, the MD quickly was documented while preserving the confidentiality of all References: realised that despite having a law degree, she lacked the parties involved (including the witnesses). experience to investigate without the appropriate support. [10]. Business Dictionary (BD). Available at http://www.businessdictionary.com/definition/ [23]. 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Nike Accused of tolerating sweatshops: New report says workers Humanity & Society, 43(2), 217-224. still on low wages despite pledge. The Guardian 20/05/2001 Available at https://www. The HR Consultant advised that the MD to become an are not encouraged. Moreover, in the employee handbook, [20]. Gutek, B. A. (1985). Sex and the workplace (p. 46). San Francisco: Jossey-Bass. theguardian.com/world/2001/may/20/burhanwazir.theobserver internal investigator, with the Operations Director witnessing it was clearly stated the importance of employees report- [21]. Habisch, A., & Wegner, M. (2005). Overcoming the heritage of corporatism. Corpo- [35]. Welford, R. (2005). Corporate social responsibility in Europe, North America and rate social responsibility across Europe, 111-123. Asia. Journal of Corporate Citizenship, (17). every single step of the process, leaving the HR Consultant as ing inappropriate behaviour – by providing a well-structured [22]. Kremer, J. M., & Marks, J. (1992). Sexual harassment: The response of management [36]. Wise, S., & Stanley, L. (1987). Georgie Porgie: Sexual harassment in everyday life. Scientific Journal of Business & Innovation A Case Study on Successful Implementation of Ethics and Responsible Business Policies at a Corporate Level and trade unions. Journal of Occupational and Organizational Psychology, 65(1), 5-15. Pandora Press. 35 36 Moumita I. Introduction intrauterine growth retardation (UNICEF, 2018). Every year 2.6 The Status of Sustainable Mukherjee1, million babies die before their first birthday (UNICEF, 2018). Anastasia Kiritsi1 The main challenges facing health and nutrition service Who survives mostly becomes malnourished after certain Health Governance and Future delivery are factors affecting performance at each level age. Under-nutrition implying chronic or acute protein-energy of governance including community responsiveness to poli- deficiency as well as vitamin and mineral deficiency is respon- cies and programmes (Lewis, 2006). Evidence suggests that sible for 2.2 million deaths and 21 percent disability adjusted Role of Eco-Tourism Model good governance as well as community inclusiveness are life years among children under the age of five in low- and important to ensure effective service delivery and ensures middle-income countries (Black et al., 2008). It is responsible for Eradicating Ex-Ante Child returns to investment in health and nutrition if governance for poor survival rates among newborns, infants, and children issues are addressed (ibid.). Effective health systems govern- (UNICEF, 2012). Previous studies show that significant corre- Health Poverty in Riverine ance includes availability of equitable health and nutrition lates of low achievements in health and nutrition are different services on time and with quality as well as reduction of socioeconomic, geographic, demographic, environmental West Bengal, India healthcare expenditure to reduce health poverty (Ranabhat and institutional vulnerabilities which are pushing children et al., 2018). Community inclusiveness implies that policies under vicious circle of poverty and poor health outcomes and programmes are to be designed in such a manner which (Ligon & Schechter, 2003; Mallick, 2008; Azam & Imai, 2009). can ensure social acceptability and economic affordability of As an obvious consequence of adopting coping strategies health and nutrition services to reduce child health poverty to combat health shock, a poorer household having weak (Thomson et al., 2018).In current context, it is critical for the endowments with less market access; multiple shocks are Abstract: policy makers not only to achieve socioeconomic equality likely to reduce household consumption further due to incur- The primary focus of the review is to explore avenues on how to generate but also to ensure solidarity (Wagstaff, 2002). Ensuring social ring of catastrophic expenditure while accessing healthcare justice includes improvement of child development indicators service (Baeza & Packard, 2006). Again, when poor house- effective governance model for health security of poor and vulnerable children from the time of conception to the age of five with equitable holds have malnourished or morbid children, they suffer from in India after reviewing the suboptimal performance of health governance in access to good quality service delivery in vulnerable socio- lower school attendance, become victim of child marriage, economic and geographical pockets (UNICEF, 2012; IIPS & unsafe migration and are likely to deliver premature babies riverine rural West Bengal in India and how building a sustainable social tourism ORC Macro, 2007, Kanjilal et al., 2010). in the future due to early child bearing — leading to slip- model can enhance the local livelihood to reduce the impact of health poverty. ping down to deeper health poverty (ibid.). In this context, current governance structure is facing barriers to reduce Since poverty acts as basic influencing factor to health status and health seeking II. Material and Methods child mortality with inadequate access of community people to social protection mechanism and fail to free the society behaviour, poverty reduction through livelihood generation and boosting health Context of Vulnerability, Child Health Condition and from future increase in child poverty (UNICEF, 2012). Litera- system to increase access to service — will have double impact on child health Governance ture suggest that civil liberties or access to social rights via In the developing world, the fall in infant mortality is facing effective governance play pivotal role to ensure economic poverty in sustainable manner. diminishing return due to higher percentage of neonatal development compared to the contribution of economic free- deaths. Failure to address the burden of neonatal death is dom (Saha et al., 2017). Different multinational agencies and mainly due to lack of smart data-driven planning in policy donor organizations are concerned about mainstreaming the Key Words: directives. The health system fails to address the immediate health systems governance in poverty reduction strategies Child health, poverty, tourism, health governance, sustainability causes of neonatal deaths like asphyxia, newborn sepsis to sustain economic development which is needed to be and underlying causes like maternal under-nutrition causing properly targeted (Shekar & Lee, 2006). Figure 1 Sustainable tourism as Strengthening health means to generate governance to increase livelihood with focus Malnutrition Higher morbidity universal access to save biodiversity to healthcare Low income and uncertain Higher healthcare livlihood in shockprone area expenditure Child health Sacrfice of basic poverty necessities The vicious circle of vulnerability to child health poverty, morbidity and malnutrition 1 Faculty, Berlin School of Business and Innovation, Berlin, Germany. Scientific Journal of Business & Innovation The Status of Sustainable Health Governance and Future Role of Eco-Tourism Model for Eradicating Ex-Ante Child Health Poverty in Riverine West Bengal, India 37 38 III. Results and appropriate tourism developed. Action research initi- ative is required in future to facilitate the management and Strengthening Health Systems Governance development of sustainable tourism at World Heritage Figure 2 Literature reveals that the factors related to governance properties through fostering increased awareness, capacity contributing to poor child health outcomes are systemic gaps and balanced participation of all stakeholders in order to in monitoring and evaluation component of the policies and protect the properties and their Outstanding Universal Value programmes increasing inequities in health outcomes with (UNESCO, 2020). Balancing the use of Balancing economic time lags followed by increasing economic costs (United environmental resources growth and development Nations, 2015). Keeping in mind such phenomenon during • Current situation in India’s Tourism regarding National Parks and changes to the social/ and the impacts design of Sustainable Development Goals (SDG) after MDGs, • Wildlife sanctuaries and national parks face restrictions as community values of of development United Nations and other donor agencies are emphasizing Indian government promotes ‘eco-tourism’ those environmental on community/social on strengthening of monitoring and evaluation systems of • No ‘ecotourism’ guidelines currently exist in India Environment resources Society values Economy implementers (United Nations, 2016). Therefore, one major • The country’s 733 wildlife sanctuaries and national parks need of the hour is bringing improvement in existing M&E could soon face stricter regulations systems and processes under the governance to keep the • Wildlife safaris are now popular and make up a third of implementation of policies on right track so that it will help to India’s tourism Balancing the use of environmental resources and the economic benefits of tourism reach outcomes at given timeframe and help to reduce Child • Park admission prices could also see a hike Health Poverty (World Bank, 2013). (Daily Mail, 4 March 2017 -‘Wildlife sanctuaries and national Sustainable Tourism Model parks face restrictions as Indian government promotes Sustainable tourism model (Part 1). The quest for sustainable tourism presents a challenge to ‘eco-tourism’) integrate economic, social and environmental issues in tour- ism planning and — in order to implement this — to change Tourism in The Sunderbans Unesco heritage Site attitudes and traditions among the different stakeholders The Sunderbans National Park is many things at once, a within tourism. This calls for involvement of the different stake- biosphere reserve, national park and tiger reserve, such is holders in the change processes towards sustainable tourism the richness of this mangrove ecosystem. What we commonly and, accordingly, the creation of new patterns of interaction call the Sunderbans is actually a large delta spread across Figure 3 and collaboration between the stakeholders. (Kernel, 2003) 40,000 sq. km between India and Bangladesh. Just to give Further research is required to tempt to shine a light on issues an idea of how vast it really is, consider this. It stretches from of importance within sustainable tourism and to encourage River Hooghly in West Bengal, India, all the way to River researchers from different disciplines in investigating the Baleswar in Bangladesh. In this UNESCO World Heritage Accessible Site (it was declared a UNESCO World Heritage Site in 1987), tourism inter-relationships among community/culture, environment/ Population Community ecology, energy /water/food more broadly and health the mangrove trees stand lazily on the mudflats, which are and health tourism management/access. visible during low tides, and submerged in height tide. Its name means “beautiful forests” in the local language, and it Critical Factors on collaboration within tourism is not hard to figure why. Other reasons are the Sundari trees, Rigorous analysis is required based on frequent collection which are dominant in this mangrove area. Their unique- Sustainable ness lies in their roots which shoot upwards for respiration, of data to assess the challenges and critical factors for the society Behavioral Eco-tourism economics development and management of a form of wildlife tourism particularly during waterlogging during monsoons (Naitthani that is based on an active and practice‐near role of natural & Kainthola, 2015). sciences knowledge, and that, ultimately, can contribute to sustainability. Comparison with case studies like: ‘The study of The Context of the Sundarbans Delta: A bit more into it a specific firm located in northern Norway which has devel- ‘The Sundarbans’, a density of Sundari trees, is known as oped a scientific form of wildlife tourism, the main challenges ‘Sodorbon’ (in local terminology). The area is not uni-charac- Low-carbon Sustainable Sustainable Sustainable Political are identified in the limited access to competent and dedi- teristic; it is a conglomeration of multidimensional diversities. tourism enviroment tourism economy economics cated human capital and the difficulties related to networking, It is a land of adverse features as well. Such poetic co-habitat especially in the local area. The case study suggests that of ‘beauty and the beast’ is rare across the globe. Fishermen the factors that contribute positively to the attractiveness of risk their lives inside the unknown world of sea every day, wildlife tourism are also the ones that tend to affect its devel- woodcutters roll deep into the dense forest to bring wood opment negatively. (Giovanna Bertella, 2011). for making their lives. The habitats collect their inspiration of Alternative Circular life, happiness and joy from the emotion that evolves from tourism Sustainable economics culture Challenges and barriers in Tourism toward sustainable the unavoidable brutal reality of the geography. The cult and tourism culture of the Sundarbans is reflected in the epistle of inter- To overcome the challenges and barriers, a few implemen- national and national tourists since ages. Some of them are tation strategies on achieving sustainable tourism from the – Romila Thapar, Bipan Chanda, Ramsharan Sharma, Goutam Rural Heritage aspects of policy/regulation, institution, finance, technology Bhadra and similar others. Population of the Sundarbans is tourism integrity of mixed nature. People from various regions of West Bengal Culture and culture are required to be explored further, along with the tourism framework and details of a key performance indicator system. migrated to the Sundarbans to earn their livelihood, espe- cially who were landless and poverty-stricken. Exploitation, World Heritage Site and Scope for Sustainable Tourism tyranny, poverty and ignorance generated food insecurity The UNESCO World Heritage and Sustainable Tourism and famine. Sustainable tourism model (Part 2). Programme represents a new approach based on dialogue Two-third of the Sundarbans is in Bangladesh and the and stakeholder cooperation where planning for tourism and rest is in West Bengal. In the Indian part, the total area of heritage management is integrated at a destination level, the Sundarbans is 9630 sq.km., of which 5700 sq.km area is the natural and cultural assets are valued and protected, land and 4264 sq.km. area is covered with mangroves. The The Status of Sustainable Health Governance and Future Role of Eco-Tourism Model for Eradicating Ex-Ante Child Health Poverty in Riverine West Bengal, India 39 40 as well as some basic health services to infants, pregnant V. Conclusion women and lactating mothers (DH&FW, 2007;DCDWD&SW, 2007).But even though the NHM and ICDS programmes cover Rationale behind linking the two concepts through vulner- communities at micro level (5000 population per sub health ability lens centre and 400-800 population per anganwadi centre) with Current socioeconomic policies and programme structures substantial amount of Government funding, the effectiveness in the developing world are facing barriers to reduce basic is still questionable from different aspects of service delivery social issues like child morbidity, malnutrition, open defeca- (Gragnolati et al., 2006). Lots of community-based studies tion or water borne diseases and altruistic donor agencies and evaluation of effectiveness covering health and ICDS feel that need based programme adjustments are required facilities are conducted in different parts of India to assess to free the society from such poor outcomes (UNICEF, 2012). the causes behind the service delivery failure. A few stud- In addition to this further, such problems increase manifold ies found that poor effectiveness of training and capacity if those children are exposed to covariate shocks like natu- building is one major reason of failure (Gadhkar et al., 2006; ral disaster (UNICEF, 2018). Evidence from UNISDR (2013) NIPCCD, 2005a; NIPCCD, 2005b). A few other research works and World Bank (2013) have shown that in last two decades, focused on how active community participation can improve natural disasters affected 4.4 billion people, killed 1.3 billion the service delivery (Banerjee, 1999; Balsekar et al., 2005; and world economy incurred $2 trillion loss. It is evident from Sampath, 2006; DCDWD&SW, 2007). Evidence also suggest Millennium Development report of United Nations (2015) that factors like family’s awareness about health and nutri- that some of the low and middle-income countries including tion services, the perceived quality of care as well as the India failed to achieve MDGs by 2015 on given timeframe. basic infrastructure of service delivery centres determine For example, the socio-geographical area under present the service uptake (Vinnarasan, 2007). Several evaluation review depicts poor health and nutritional achievements of studies tried to measure the effectiveness of NHM and ICDS children and the entire population of the area lives under programme and recommended improvements in implemen- abject poverty, geographical inaccessibility, faces frequent tation process (CIRC, 2006;Forces, 2005a; Forces, 2005b; extreme climatic events influencing accessibility to service Forces, 2005c; Forces, 2005d; Forces, 2005e; Forces, 2007; delivery (IIHMR,2010;Mukherjee et al., 2012). Lots of literature archipelago consists of 104 islands of which 54 islands have tiveness and resilience of existing established and new play- DES Haryana, 2004; IIMB, 2005). Development practition- exists on multiple influencing factors that are responsible for human existence and the non-deltaic part is connected to the ers in the tourism sector. Besides identifying the benefits that ers and donor organizations agree that evidence collection worse achievements in those areas but study focusing on mainland. A number of rivers and estuaries have intersected BDAI brings in the tourism sector, the research is required to through research and creative policy suggestions depending current vision is dearth and the research in this direction in the area from north to south and narrow tidal creeks from implement this technology to overcome challenges in this on the context are today’s necessity to bring universal service future will help to improve the condition of vulnerable and east to west (IIHMR, 2010). Around 29-30 violent cyclones delta region (Samara, 2020). coverage through strengthening of contextual governance marginalized population followed by the accelerated inclusive exploded in the region between 1960 and 2010. (WHO, 2013). growth in the state. The Sundarbans Delta Region of India — World Herit- Creating and implementing a model for sustainable age Site declared by UNESCO — is characterized by chronic development of tourism in west bengal, India poverty, insecure livelihood, geographical adversities and The quest for sustainable tourism presents a challenge to inte- extreme climatic events. The geo-volatility of the Sundar- grate economic, social and environmental issues in tourism bans makes it special not only with respect to livelihood and planning and — in order to implement this — to change atti- survival of its people but also in terms of people’s health and tudes and traditions among the different stakeholders within Figure 3 nutritional status. A typical resident of the Sundarbans carries tourism. This calls for involvement of the different stakeholders an extra load of ill-health and health risks compared to others in the change processes towards sustainable tourism and, living within the same district. As it has been found, the chil- accordingly, the creation of new patterns of interaction and dren are the worst sufferers; most of them are chronically collaboration between the stakeholders. Case study analysis Voice The State Compact malnourished and, hence, perennially suffer from dispropor- on how a project on sustainable tourism development in tionately higher burden of respiratory and gastro-enteric trou- Mid- and North Jutland, Denmark, has engaged 26 small and bles. In brief, with about 4 million people currently estimated medium sized tourism enterprises in an incremental change Politicians Policymakers to live in the region, this neglected population has become process towards sustainable tourism. Using the theory of a major reservoir for a wide spectrum of health conditions collaboration, the paper analyses the process of identifying that are not always well recognized by the existing formal the common interests, defining the problems, setting the Long route of accountability (problematic in fragile states) health sector (IIHMR, 2010). The Sundarbans National Park is directions, and developing and starting the implementation a famous Tiger Reserve and a unique biosphere reserve. In of a four-step model for sustainable development in tourism 1973, ‘Sundarban Development Board’ was founded to attend enterprises (Kernel, 2018). Short route of accountability the misery, illiteracy and poor health of the inhabitants, and also for repairing the embankments and transport system. Although quite a few have been implemented, there are still IV. Discussion Citizens/clients Providers a wide gap between targets and achievements. Client power Crisis Governance in Healthcare: Aspects to be focused Use of Big Data and AI in Running sustainable tourism in the Sundarbans Delta Nonpoor Poor Frontline Organisations through building social enterprise To reduce inequity in health and nutritional status among Services The findings of successful case studies imply that Big Data children and pregnant women, Government of India launched & Artificial Intelligence create value for the tourism sector National Rural Health Mission which is now National Health Coalitions Management through appropriately identified disseminations. 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As Brexit has finally been implemented and the challenges (Blockmans, 2016) says quoting the European Union Global and the Consequences arising for UK is the Post Brexit recovery. The world trade is Strategy (EUGS): “[W]ith most world growth expected to take going through a phase of slow recovery and the conservative place outside the EU in [the] near future, trade and investment of the German Economy politics is moving towards liberal politics with the change of will increasingly underpin our prosperity: a prosperous Union Government in the United States. This change of Government hinges on a strong internal market and an open interna- has had its repel effects in global politics with a New govern- tional economic system. We have an interest in fair and open and European Union ment in Israel, revigorating the EU-US Transatlantic Relation- markets, in shaping global economic and environmental rules, ship, a Softer US- China trade relationship and the G-7 Summit. and in sustainable access to the global commons through Amongst the European Union States, the German Federal open sea, land, air and space routes”. Elections are to be scheduled by the September of 2021. The German upcoming elections is witnessing the rise of RCEP and the Rise of China right-wing politics, left wing politics, the Green party and Ever since the inception of globalisation and free trade, the the Centre. As the elections approach, the populist state- rise of Asia has led to new power centres and new alliances. ments and commitments increase. The rise of interference of The western nations expected India and China to be low-cost other countries with vested interests is a matter of concern for outsourcing destinations, but the countries quickly grasped the Germany as it could impact on the Poll Outcomes. The AFD technological superiority and both nations developed their Abstract: has mentioned in its Manifesto that it would support the DEXIT own competitive advantages with China leading in Manufac- As the BREXIT has been successful with the UK walking out of the European (Deutschland Exit). This article reflects the views of the Author turing Sector and India in the Information Technology sector. on the impact of a Scenario called DEXIT and its impact on This led to the creation of jobs, wealth and subsequent rise of Union, there are rising concerns amongst the other European countries to walk the European Union and Global Economy. the economic powers. The nations started nurturing industrial out of the EU. Since the European Union has an interesting unique structure with firms which started to expand beyond borders and grew Brexit and Politically Ambiguous EU steadily in the fortune 500 firms of the world such as Alib- Supranationalism and intergovernmentalism, it has modelled the European Britain exiting from the European Union could be a great step aba, Infosys etc. Trade and prosperous economy are the Governance to the world. However the challenges in economic prosperity, xeno- for the beginning of the decade. The Free Trade Agreements spine for social progress and this led to job creation. This led with its partners and new investment policies could boost the to the nations which were industrial economies to develop phobia, migration crisis, movement of labour, ageing population, skill shortage UK Economy post 2023 . The US has supported the Brexit and themselves into Knowledge Economies and Entrepreneurial has promised UK with new trade deals to cushion the post Economies. This has woken up approx. 45% of world popu- for the future technologies are posing a challenge to the existence of the Euro- Brexit growth . Inspite of the teething struggles, Britain is slowly lation to be industrially competitive and thereby triggering pean Union. Would another exit of Germany from European Union happen and overcoming the Political (Scotland and Ireland) struggles the global demand. High efficiency, labour intensiveness, and rebuilding its economy . The UK firms are getting a clear high scale of adaptability to changing times and innovation, if so what could be the consequences on Economy? The paper is a perspective picture and the Banks predicting a rise in the investments economic incentives and creation of intuitions have regulated article of the author’s analysis and opinions. in UK. This has also pushed the overseas investments of UK and increased the trust of foreign investments. “Opportuni- further with strengthened bilateral trade relationships. Even ties are never lost and the loss of one person is the gain though the UK has taken the advantage of moving out of the of another person”. The jobs of the west were grabbed by Key Words: European Union, it needs the NATO and the US for geopoliti- the east because they could produce at low cost and with cal interests, military and other strategic issues. It does have higher efficiency. This has led to the various political actions Post brexit, knowledge spillover, dexit and European Union, China trade ties and its advantage of strengthening its own armed forces though such as the global trade war between the US and China, in the short period of time, it struggles to invest due to its trade protectionism, a sentiment that jobs are taken away RCEP, trade policy, multilateralism investments in other important areas relating to economy by immigrants, disintegration of allies, distrust over governing (Howorth, 2017). Therefore the Brexit has helped UK benefit institutions, populism and polarisation politics. The research from the complex policies it once had when with the EU. As of (Cox, 2017) cites that the whole world is going through a (Blockmans, 2016) quotes Gordon Brown the Ex-Prime Minis- populist politics with political leaders appeasing voters on ter of UK: “Meeting the needs and aspirations of the British both the sides. A staunch example of the rise of Asian Econ- people in the twenty-first century requires us to let go of the omies is the Regional Comprehensive Economic Partnership past, acknowledge that the present is defined by globaliza- (Secretariat, 2021) with 16 countries amounting to approx. 30% tion, and recognize that the future is filled with opportunity”. of the Global Trade. This shows the powerful rise of China UK had issues and wanted an exit from the EU espe- in Global trade and in forming new alliances. The Silk Route cially with the focus on Job Creation, Tax Reforms, Terrorism, and investments in Africa are asserting the powerful growth Immigration and Workers’ Rights (Brown, 2016). Though it of China. In a Post Brexit UK, China expects a “Golden Era” could be understood that immigration was one of the main of trade between the UK and China. China’s growth has reasons for the Brexit to happen (Goodwin & Milazzo, 2017), extended beyond the silk route to the European Union with the it could be understood that anti-immigration populism stokes New EU trade and Investment Strategy. This has led to China the polarisation amongst people. expanding to new horizon of economic supremacy (Wu, 2020). Though the UK is restructuring for the new challenges The growth is coupled with fast rising GDP, Political Muscle ahead, how is the EU prepared for the future considering Flexing and Dominance, Rapid progress in Technology and the challenges such as an Aggressive Asia, Distanced US Innovation and Monopolising the future technologies. China relationship, annoying Russia and growing rumbles inside has shown the world that it is the most dependent manufac- the EU member states. The ongoing Health Pandemic, Job turing floor of the world and thereby all the industries and Losses, Demands from the Member Countries and the rising nations are dependent. 1 Faculty, Berlin School of Business and Innovation, Berlin, Germany. Scientific Journal of Business & Innovation Will Dexit Follow the Brexit and the Consequences of the German Economy and European Union 45 46 Circumstances of the DEXIT and the AFD Manifesto • Jobs could be created but at the disadvantage of the II. Conclusion i) access to education for all; ii) skills development (initial The pull-out of UK from EU has pushed many countries to Supplier side economics in terms of labour cost, efficiency and continuous training); iii) activation policies and securing rethink of a circumstance of pulling out of the EU. As (Oliver, and a ceiling only to semiskilled labour. In high skilled Germany exiting out of the European Union would immensely employment; iv) reconciliation of work and family life; v) inte- 2017) mentions on the Brexit could also push Grexit and lead labour, Germany would be defunct if it Exits (though could affect Germany since, Germany needs the European Union gration and immigration of skilled labour (Nicola Duell, 2020). to disintegration of the EU. The European Union from the always invite skilled migrants but will minimise the quality for Land, Labour and Energy. Even though Germany has Though Dexit could be seen as a Populist political idea, if past has enjoyed an “Sui Generis Structure” with a mix of of innovativeness and cultural integration). immense capital, an ageing population is a challenge it is implemented, Germany would be drastically affected supranationalism and intergovernmentalism (Jacobs, 2018). • As the land Size goes small, the need for importing since there is huge widening gap between the contributors since a lot of investments have already taken place which Will this be feasible and how would this impact the nations? increases. Thus, Germany would be forced to be import and pensioners in the Social System (Bartels, 2018). Since will lead to brain drain. Germany and European Union’s frag- Though an exit requires a lot of planning and alliance support, products from its neighbours and thereby the costs of Germany has the challenges of skill shortage especially in mented relationship could continue and make trade slow and the populist policies seem to be growing amongst people imports could increase higher and on preference. Free certain sectors such as the health sector, the construction incompetitive to an aggressive Asia and America, but still it with the right wings emerging with Germany exiting the Trade Agreements could be a solution to avoid this but sector and some manufacturing industries, as well as the ICT would not disintegrate and follow Britain. If a disintegration, Euroepan Unionin their manifestoes . (Gaarsted, 2017) in his involving FTA could involve transactional costs. sector and in ICT roles across all sectors, the need for labour the transactional cost could be colossal and make all the dissertation states that: • DEXIT would affect the Geostrategic advantages and is essential for Germany to sustain its economic dominance. nations in Europe and in the European Economic Area go weaken the NATO and this would affect the military and In order to do so the government has invested on five pillars: through a Lose- Lose Situation. • Right wing populism arises due to people’s dissatisfaction other strategic issues to the whole of the European Union. or representative politics Even though countries could develop their own armies and • Rise of populism is normal in terms of crisis national security, it could create a competitive threat or insecurity amongst all. This article highlights few questions and opinionates the author’s views on those circumstances. Can Germany afford As (Walt, 2016) mentions the challenges for Europe are a Dexit like Brexit and what will be the impact on the econ- ageing populations, troubled economies, resurgent xeno- omy? What will happen to the EU and could new Geo Political phobia, and a deteriorating security environment on their alliances be successful? borders. The report also quotes that “Europe’s greatest stra- tegic challenge, however, is recognising that it is no longer Consequence of a Scenario of DEXIT (Deutschland Exit) viewed by the US as the most important region of the world, Disadvantages for Germany thus signalling that Europe can no longer rely on American • Germany doesn’t possess the Labour skills and is a protection alone”. homogenous country and thereby the biggest challenge “Europe and the US will remain close economic part- is bringing in quality labour for its industries. The German ners, but European security will no longer be high on Amer- industries technological innovations will collapse without ica’s foreign policy agenda and security cooperation will skilled migrants and labours. decline as Washington focuses its attention on Asia”. • In the futuristic world of Internet of Things and Artificial Intel- ligence, Germany will be shunted in technological progress. Advantages for Germany • In a changing global business model with network exter- • Germany could increase the exports and strengthen the nalities and platforms being the essential infrastructure value of its currency. and concept, Germany cannot build its own competence • An increase in federal reserves would help the country without integration through the internet. increase its funding in domestic enterprises and investing • Since the Big 3 firms are Internet firms and the competitors more into innovation and the entrepreneurial ecosystem. in the industry are also from the internet industry, Germany Thereby strengthening the entrepreneurial ecosystem with • German Industries will lose their technological dominance more number of knowledge parks and tech parts. and would lead to a situation of knowledge deficit, poor • Germany exiting out of the EU, would enforce other nations industrial competence and failure to adapt to technological to perform and be competitive. This would create an EU disruptiveness. with competitive economies and thereby create a knowl- • In the foreign policy, Germany would no longer possess edge spillover. the dominance that it currently possesses other than being • The European Nations such as Estonia that are industrially seen as an Economic Powerhouse. As of now, it enjoys competitive and well prepared for the future technological being the Power Centre of the European Union. adaptations would be well known individually. This would • The collapse of the governing institutions such as the EU push competitiveness in the region. could affect weaken the whole of European Union and • Setting the house in order by minimising the domestic would mainly affect Germany and withheld the powers financial leakages, regulating the aids to member states, that it enjoys while negotiating with any other economy. improvising the law and order, a better idea of the migra- • The complexities in breaking down the EU could destabi- tion crisis with a solution for the future and minimising stray lize the trade, policies, judiciary and other frameworks in incidents of radicalisation. EU for at least a decade and push majority nations to a • Germany can strengthen its own armed forced and eye lose- lose situation. on its own strategic interests. This would benefit Germany • There is a possibility of Russia to bully the weaker nations in the areas of counter terrorism, investments in its areas References: in the European Union after they disintegrate and thereby where it has its own geopolitical and economic interests. [1]. Bartels, B. (2018). Germany’s pension system overhaul shifts burden to young workers, raising risks to fiscal sustainability. Berlin: Scope Ratings. it would also compromise on the EU value system that has • Protecting the social, cultural and the artistic values of [2]. Blockmans, S. (2016, July). Brexit, Globalisation and the Future of the EU. Intereconomics, 182-183. been incorporated. Germany. [3]. Brown, G. (2016). Britain: Leading, Not Leaving. [4]. Cox, M. (2017). The rise of populism and the crisis of globalisation: Brexit, Trump and beyond. Irish Studies in International Affairs, 9- 17. [5]. Gaarsted, J. B. (2017). The rise of right-wing populism: Populism in Denmark and the US . Denmark: Master Thesis . [6]. Goodwin, M., & Milazzo, C. (2017). Taking back control? Investigating the role of immigration in the 2016 vote for Brexit. The British Journal of Politics and International Relations, 19(3):450-464. [7]. Howorth, J. (2017). EU defence cooperation after Brexit: what role for the UK in the future EU defence arrangements? European View 16, 191–200. [8]. Jacobs, F. B. (2018). Will the EU Become Stronger or Weaker or Even Disintegrate as a Result of Brexit? The EU after Brexit, pp 7-13. [9]. Nicola Duell, T. V. (2020). The employment and Social Situation in Germany. Policy Department for Economic, Scientific and Quality of Life Policies. [10]. Oliver, T. (2017). The EU Falling Apart? Theoretical Discussions of Brexit, Grexit and Other Exit Scenarios. Solidarity in the European Union, pp 131-144. [11]. Secretariat, T. A. (2021, June 28). Regional Comprehensive Economic Partnership (RCEP). From RCEP: https://rcepsec.org/about/ [12]. Walt, S. (2016). Towards an EU global strategy – Consulting the Experts. European Union Institute of Security Studies. European Union Global Strategy. Scientific Journal of Business & Innovation Will Dexit Follow the Brexit and the Consequences of the German Economy and European Union [13]. Wu, J. Y.-M. (2020). The Dynamics of China’s Trade Ties After a Brexit Announcement, UK and EU. Brexit and After, pp 181-187. 47 48 Dr. Shilpa Nair1, I. Introduction Burden of Disease study had put India at 154th among 195 PR Watches — Dr. Vivek countries on the healthcare index. The doctor-patient ratio is Arunachalam2 Entrepreneurship is a great path where you can use your also 1:1674, which shows the need for robust healthcare infra- Innovative Solution talent to create new products and ideas on your own, and structure. (Ajaikumar, 2018). The entrepreneurs take all these still be responsible for social welfare. As a healthcare worker, issues as an opportunity to make an impact both socially in Alzheimer’s Care contributing your knowledge and talent to generate some- and economically. thing which can be helpful for the community is the priority. That’s why I choose to go with social entrepreneurship. The • Contribution of private sector — Although the government product detailed below will bring a huge relief in the life of invests in healthcare, the private sectors’ support is essen- Alzheimer’s patients and their family. Here we are discussing tial to fill the gap between the patient and the technolo- about the business and its different aspects in different coun- gies necessary to improve healthcare services. They can tries and how an entrepreneur can make it a huge success... be considered a good break for India’s startup culture, bringing innovations and advances into the healthcare industry. A report by India Brand Equity Foundation shows II. Material and Methods Indian healthcare sector as one of the fastest growing with a growth rate of 22.87%. (Ajaikumar, 2018). My product’s name is PR Watch (Pulse Rate Watch), which is • Entrepreneurship is the key — One way to open the path designed by Change in Care (CIC). It’s a company solely dedi- for the advanced healthcare sector and provide societal Abstract: cated to healthcare innovation currently focused on dementia benefits is social entrepreneurship. When a health entre- Dementia is a chronic illness that involves progressive loss of cognitive and care. This particular product consists of a Watch and an appli- preneur establishes a business, they are more focused on cation that the caretaker or doctor needs to download. This need-based market and works with their domain experi- functional responsibilities. Alzheimer’s is the most common form of Dementia watch works according to the patient’s pulse rate fluctuations ences towards the health sector. affecting millions of populations globally and in the resent years has become and can display the details stored through air screen tech- • Substantial healthcare models — The healthcare industry nology or Hologram. As for the patient’s location, the family businesses that are merely focused on enhancing their a major cause of geriatric deaths. The disease puts heavy burden on patients members can locate them with GPS installed in it. profitability cannot sustain in the market. Social entrepre- as well their families considering the care and costs. Here we are discussing an neurship started with a community-based outlook can help Watch: It can sense the change in Pulse rate/ Heart rate the healthcare industry grow and attain its original goal. innovative and advanced Alzheimer’s care product called PR Watches — creat- as soon as the patient gets anxious. When the patient with Alzheimer’s steps out of the house alone or maybe if they This low-cost device will help families concerned about the ing a comfort zone for such people. Considering the soaring number of cases might have run away, and upon realizing the unknown envi- whereabouts of their elderly parents suffering from Alzheim- and the damage caused by this disease, transforming the idea into an ideal ronment, the patient becomes anxious, and the heart rate er’s disease by enabling them to keep tabs on their loved increases, leading to pulse fluctuation. These watches with ones at any given time. And with this innovation, we might healthcare product is possible through startup organization. sensors will activate as pulse rate fluctuates, sending an be able to decrease the mortality rate also. Our product is alarm signal to the devices which have the application unique with its high-end technologies and easy handling. installed. The other unique feature which gets activated is the This device can be of great relief for the Alzheimer’s patient’s Key Words: Air Screen technology or Hologram, displaying the person family. Introducing such innovative care products can boost Alzheimer’s disease, PR watches, dementia, entrepreunership closest to the patient with a voice assistant. (But unfortunately, India’s healthcare services. Dementia care centers and other this won’t be much helpful in case of advanced Alzheimer’s). people will have access to the effects on any online platform or physically at the stores. Application: The Caretaker and the Doctor should down- load the apps. When signals are sent from the watch after it Company: The Change in Care comes is a social entrepre- gets activated, they can use the navigation system to track neurship focusing on the healthcare industry and its innovative down the patient. And all the Vitals will be recorded by the future. It’s a company funded by the Alzheimer’s Associations, watch and sent to the doctor for monitoring. The family and Helpage India. Dementia is a rising health issue globally, and Doctor will also have the advantage of seeing the patient by it becomes worse when it comes to developing countries with video call after the watch’s camera starts. So, they can calm poor healthcare services. My vision for this product: a secure down the patient by talking to them. (Author, 2021). and comforting future in Alzheimer’s care. Country of origin: The CIC is in India. Being a country with a Partners: ElderEase is an e-commerce store for geriatric rapidly growing economy and a huge population can prove products in India, delivering products at their doorstep. It an excellent choice for healthcare companies. Alzheimer’s has collaborated with many technological brands providing is one of the top five chronic diseases in the world. In India, innovative solutions to the elderly. Healthgenie provides all around 5.3 million people suffer from dementia, and over types of health and fitness products, including elderly prod- worldwide, approximately 44 million. As life expectancy ucts from various brands. Dementia daycare centers where increases with more aged populations, Alzheimer’s rate people with all kind of dementia is taken care of. might rise to 7.3 million by 2030. (Gandhi, 2020). Healthcare innovation is a continually maturing sector in Social entrepreneurship: Social entrepreneurship is devel- the industry. This is the industry that needs more attention, oping or generating ideas or running a business for socie- especially in developing countries. And now, healthcare has ty’s welfare and making a profit. In the case related to our finally entered the digital age, which can ease the healthcare product, many profit and non-profit organizations related industry’s problems. In this sector, the entrepreneur must give to Alzheimer’s associations like alz.org India and ARDSI. value to the social responsibilities more than the company’s In India, healthcare access is very impoverished. Global profitability. 1 Berlin School of Business and Innovation, Berlin, Germany. 2 Concordia University Chicago. Scientific Journal of Business & Innovation PR Watches — Innovative Solution Alzheimer’sin Care 49 50 Engaging the workforce in entrepreneurship: The concept to the US, with a high EEA of about 6.5%. High Total Entrepre- from pursuing their careers and entrepreneurship. But the facilities have expanded giving a chance to the entrepreneurs of success and entrepreneurship can differ from company to neurial Activity and Entrepreneurial Employee Activity shows expansion of many organizations and online support will to grow. And it will continue to grow immensely in the coming company and their leaders. Some are more profit-oriented that business can flourish from both startups and established bring women empowerment in India soon. But there are years. Applying these U.S cultural models and customer or believe in advancing technology, while others are more companies. As a growing economy with a developing entre- always exceptions everywhere. (Yadav, 2016) services are helping many startups to grow swiftly. focused on fulfilling social responsibility through their business. preneurship rate of about 8.8% in 2019, India can be a perfect Whatever the target may be, engaging the employees to platform for launching new businesses and startups in various Indian entrepreneurs are also growing quickly in the current adapt to the entrepreneurial work culture is important. For divisions. (Kelley, Brush, Corbett, & Majbouri, 2020; Shukla, situation. Many resources for startups, education initiatives, VII. Conclusion companies that want to become the best in the industry, the Chatwal, Bharti, Dwivedi, & Shastri, 2020) and extensive internet usage build the entrepreneurial leader must value their employees equally. Few ways to India’s entrepreneurship is different from that of the community in India. Nowadays, there are many advisors Above we discussed about the Entreprenurial concepts and engage employees in entrepreneurship are: US-based on many internal and external factors. Entrepre- and supporters for startups, making it easier to step into how to handle them, so that you can build your own company. neurship differs according to the culture, economy, society, and the business world. India has double the small businesses The product PR Watches introduced here will bring a change • Define and promote the etiquette you are expecting — target market, where fulfilling the needs might also change. estimated to be about 48 million compared to U.S which is in the way we see the Alzheimer’s care. Creating something Motivation and positive feedback from the leaders create 23 million. 98% female Indian entrepreneurs believe that their innovative while paying back to the society through your talent a sense of value in the employees, encouraging them to • The way of seeing failures in life has a significant impact businesses must create a social impact in the society, while is incredible. To make any business or organization a huge repeat the good work. So, saying ‘Thankyou’ to the employ- on an individual or business’s future success. In India, only 46% females in U.S believe so. (Agrawal, 2016). Before success and to make it sustainable in the market is what we ees rather than constantly pointing out their mistakes will failure is described as an end of the road, leading to India had more close family business, but after the evolution learn in the entrepreneurship. So, to conclude let’s say that significantly impact its work culture. discouragement and dropping off the work. This resulted of IT they were forced to move into institutional. Compared entrepreneurship is the key to future success of any country. • Give rewards — Acknowledge the employees’ efforts, even in many entrepreneurial careers coming to a halt or some to a decade before, the transportation and communication if it’s trivial, to avoid any discontent towards the work. Those from even starting their business. But the same word, failure, who have achieved something great must be considered is seen as a chance to try something new and exciting. Such first, but all of them must be recognized. All recognitions culture affects the youth and will degrade the chance of cannot be the same. Appreciation is not just about providing people entering entrepreneurship. To avoid startup failures, bonuses but bringing out the best in the people. Indians must encourage people to apply the experiences • Generate culture metrics and share them — Most of the from the failures to a new success. Figure 1 employees in startups feel that their work culture is weak, • Funding is one of the main elements in establishing and the leader’s engagement is very infrequent. Bosses a business. If you have a great concept and proposal also agreed that they go through the employee’s records plan about the product or your business idea in the US, just once a year and not even discussing. Going through they are ready to fund the startup. This gives the startups Creativity & innovation Critical thinking the data once in a while with your employees can reinforce opportunities to launch their products or services in the the significance of work culture. market and prove their value. However, in India, it’s not the • Expand the conversation circle — Nowadays, people have case when it comes to money. Generally, they have access a say in everything and anything. So, including the employ- to the funding only if they have a functional product and Future orientation Flexibility & adaptability ees in your decision–making can broaden the views on the a well-prepared model of the services and development. concept. Together come up with new ideas and solutions for Investors will solely finance when they are confident your business that will decrease your entrepreneurial issues. enough about their profit returns. If you do not even get • Deepen the social connections — When people are associ- to start smoothly, it’s much tougher to grow and produce Comfort with risk Communication & collaboration ated socially, the possibility of them staying at the company revenue for your startups. increases, leading to a rise in production, and new ideas • Employee management depends on the work culture are unfolded. Here encouraging the employee’s instructive- of that particular company and the country where its ness and the leader will build a strong connection with the located. In the US, the competition is often fierce, and Opportunity recognition Initiative & independance company and others. the companies provide talented employees with many • All type of businesses must sort out their financial status, benefits and a good atmosphere. American startup culture even though it’s a non-profit organization. Because creating values employees’ entrepreneurial spirit, supporting Characters of an entrepreneur. (Author, 2021) profitability is essential for the company to sustain and to them to pursue innovative projects of their own. And in grow continuously. (Dornfeld, 2016) India, employees often hang on to their paychecks rather than building their value. Thus, companies having great Entrepreneurial mindset: Entrepreneurs help uplift the econ- revenue and market sustainability mainly attract talented omy, increase job opportunities, and contribute to creating employees. Encouragement towards something new and new services and products to make the world better. Coming exciting is less seen in India. References: up with a new idea is a lot easier, but building a successful • Satisfied Customers are the key to sustain any business [1]. Agrawal, A. J. (January 08, 2016). The Differences Between Entrepreneurship in India and in the U.S.. Inc.Com. Retrieved from https://www.inc.com/aj-agrawal/the-differenc- business is considered an entrepreneurial talent. This kind of in the market. Firms in the US are known for their best es-of-entrepreneurship-in-india-compared-to-the-u-s.html mindset needs you to be creative, motivated, communicative, customer experiences. India is also known for its customer [2]. Ajaikumar, B. S. (January 12, 2018). How Entrepreneurship Can Unlock Hidden Potential in Indian Healthcare Sector. Entrepreuner.India. Retrieved from https://www.entrepreneur. and still be brave enough to face the risk and failures. In services but in a different way. Startups are not trying to com/article/307400 [3]. Alzheimer’s and Dementia Resources. (n.d). Alzheimer’s Association. Retrieved from https://www.alz.org/in/dementia-alzheimers-en.asp today’s innovative world, opportunities are evolving readily understand the customers and retain them, making them [4]. Author. (2021). PR Watches. (Unpublished Manuscript). CCU. [5]. Bosma, N., & Kelley, D. (2018). Global Entrepreneurship Monitor 2018/2019 Global Report. Global Entrepreneurship Monitor 2018/2019 Global Report. Retrieved from https:// where the mindset of the new generation needs to be crea- lose many businesses. Improving customer loyalty can help www.gemconsortium.org/file/open?fileId=50213 tive and enthusiastic. Below are some important characters build new businesses within India. [6]. Dementia Caregiver Resources across India. (n.d). Dementia Care Notes. Retrieved from https://dementiacarenotes.in/resources/india/#dignity an entrepreunership must posses: • Gender equality in entrepreneurship is a point that still [7]. Dornfeld, C. (November 01, 2016). 5 Things Smart Entrepreneurs Can Do to Engage Their Workforces. Entrepreneur.India. Retrieved from https://www.entrepreneur.com/ article/284522 seems far away. But in recent times, the US has shown [8]. Elder Ease. (n.d). ElderEaseIndia.com. Retrieved from https://www.eldereaseindia.com/ Comparison of US and India in entrepreneurship: The great support for women entrepreneurs. But India still [9]. Entrepreneurial Mindset: 5 Characteristics to Cultivate. (n.d). ACCION. Retrieved from https://us.accion.org/resource/entrepreneurial-mindset-5-characteristics-to-cultivate/ [10]. Entrepreneurial Mindset. (n.d). Nfte. Retrieved from https://www.nfte.com/entrepreneurial-mindset/ Total Entrepreneurial Activity (TEA) in the USA increased to lags regarding women’s employment. Genpact’s study [11]. Gandhi, D. (November 22, 2020). Just a fraction of an estimated 5 million Indians with dementia and Alzheimer’s are diagnosed. Do we need a new policy to ensure their 17.4% in 2019, showing a 10% difference from the previous shows how women are still outnumbered by men in the well-being? THE HINDU. Retrieved from https://www.thehindu.com/sci-tech/health/just-a-fraction-of-an-estimated-5-million-indians-with-dementia-and-alzheimers-are-diagnosed- do-we-need-a-new-policy-to-ensure-their-well-being/article33147938.ece year. And for India, the TEA rate showed an increase from companies, with only 15% of organizations having women [12]. Healthgenie. (n.d). Healthgenie.in. Retrieved from https://www.healthgenie.in/elderly-care 7.9% to 11.4% in 2019. The Entrepreneurial Employee Activity on their executive board. It’s believed to be because [13]. Kelley, D. J., Brush, C. G., Corbett, A. C., & Majbouri, M. (2020). Global Entrepreneurship Monitor 2019/2020 United States Report. 2019/2020 United States Report GLOBAL ENTREPRENEURSHIP MONITOR. Retrieved from https://www.gemconsortium.org/file/open?fileId=50518 (EEA) India’s position is considered very average compared of the traditional customs blocking the path of women [14]. Shukla, S., Chatwal, N. S., Bharti, P., Dwivedi, A. K., & Shastri, V. (2020). Global Entrepreneurship Monitor India Report 2018/19. Global Entrepreneurship Monitor. Retrieved from https://www.gemconsortium.org/file/open?fileId=50586 [15]. Yadav, A. (August 18, 2016). How Startup Culture In India Differs From The U.S.. Forbes. Retrieved from https://www.forbes.com/sites/ajayyadav/2016/08/18/how-startup-culture- Scientific Journal of Business & Innovation PR Watches — Innovative Solution Alzheimer’sin Care in-india-differs-from-the-u-s/?sh=4fafe10bbedb 51 52 Rajkumar Vijayan1, I. Introduction Adidas SWO analysis Digital Marketing Campaign Elham Shirvani2, Adidas is a Global Organization with strategic key locations in Katherine Boxall2, The world is constantly evolving from traditional ways of Germany, Amsterdam, Boston, Portland, Panama, Shanghai Maryam Mansuri2 communication to increased use of services provided over the and Hongkong- have been helpful in sourcing capabilities for Adidas to Increase internet, notably during the times of the COVID-19 pandemic and marking in retail operation. Moreover, the financial (Online Nation, 2020). In this world with media saturation, stability of the company is a serious challenge as the Global Customer Lifetime Value many big brands do not deliver the right message at the right pandemic outbreak of Corona Virus has posed to all healthy time to the relevant people that can affect marketing effec- companies. There was a major decline in sales by € 800 tiveness. This is the reason for this #shoesforfuture campaign Million (-58 %) in China market alone during the Q1 2020 from ADIDAS to keep its strong brand value and reputation. (Adidas, April 27,2020). This #shoesforfuture campaign will enable Adidas to effectively promote Adidas X Parley shoes made from a Strength high-performance recycled Parley Ocean Plastic. This report • Adidas is a company with strong sourcing capabilities is limited to the most recent online information available and strategically located retail operations, enabling the during the times of the Corona virus (COVID-19) pandemic. company in the speedy movement of finished products and This report involves analyzing existing online information raw materials by leveraging its geographic advantages. related to the company Adidas, its various shoe products, • Adidas has a strong product-oriented Research and and the European market specific to Germany by synthesis development, which always strives to deliver environment Abstract: of data from textbooks, published academic journals, news friendly products for a better future. In the year of 2019, € and review articles, statistical databases etc.. 152 million was invested in R& D activities. (Refer Figure1) Adidas is the second biggest shoe manufacturer in the world after its competitor • The work culture at Adidas is focused on environmental Nike. Adidas has been the trendsetter in the 80s and 90s in Europe. Most sustainability and innovation, and thus positioning the II. Material and Methods company as a strong market leader in the global markets. European countries are thriving towards environmental protection and sustainable • Strong Branding among the young population through development with Germany in the front line. Keeping this in mind, the proposed Mission sponsoring sports clubs such as FC Bayern Munich, ‘To be the best sports company in the world’ Juventus, Manchester United F.C etc. Sports icons such as digital marketing campaign will position Adidas as an environmentally friendly Lionel Messi, David Beckham, James Rodriguez, Serge company among the country’s population. The product Adidas X Parley Ultra Adidas AG Gnabry etc. Will have a heightened brand desire. Adidas is a multifaceted global organization, with its deep boost shoes mark the attributes of innovation, environmentally friendly, one of roots in Germany and employs 59.000+ employees around Weakness its kind in the world. The organically driven applause and amplification from the world from 100 different nationalities. The company is • The Company has a huge long-term debt of U.S $ 3.028 engaged in production, design and marketing of Apparels, Billion, for Q3 Sep,2020, which applies to 70.28 % increase the social media platforms for shoes for future campaign will exert a peer footwears, sport wears, sport equipment, accessories over the previous years. (Statista, 2020) and toiletries under the Brands Adidas, Reebok, Ashworth, • With the Outbreak of the Global Pandemic, Adidas has pressure among the affluent millennials who are more focused on a sustainable Runtastic, Five Ten, Adidas golf, Adams golf. suffered closing of many stores which has apparently led environment for the future. To be sure, this digital marketing campaign will focus to a decline in sales. (Adidas, April 27, 2020) Business plan on brand building activities accelerating customer loyalty, thereby achieving ‘Creating the New’ is the strategy of Adidas, to the road ahead. Opportunities Customer Lifetime Value (CLV) eventually. This report will emphasis on the This strategy defines that sport is an attitude, a lifestyle to • E-commerce has paved the way for Adidas to increase its be reinvented into streetwear and fashion. This enabled market share and thereby increase its sales and revenue, concepts of the marketing communication as an integrated channel thereby a strong connection with the consumers and their success by leveraging a Shop option, products Check out feature examining the current and contemporary digital marketing techniques applied contributed to the company’s success in return. Adidas is truly in Instagram and similarly Shop now featured on Facebook clear that success can be achieved only in close proximity to and Snapchat. to business strategies. its consumers. To achieve proximity adidas has three strategic • With an evergreen consistency in demand for sports and choices — speed, cities, and open source. fitness apparel and footwears there is no sign of turning back for adidas. Further, this has created an impulse in Value proposition economic markets in Asia and Americas for premium prod- Adidas is always good at understanding the people of diverse ucts, thereby an increase in income is soon expected in the Key Words: cultures and working closely together with the athletes and near future for Adidas. Digital marketing, customer, analyses, business plan sports icons to caters for the needs of performance footwear. The USP of Adidas is to produce high quality light weight Threats and convenient sports apparel and footwear which the • The advantages of ECommerce have paved the way for Rivalry does not make. Adidas is always an active listener of small and medium sized new market entrants in online its consumer needs. This is achieved through questioners in retail. Even the major Rivals such as Nike, Puma and retail outlets, online polls and surveys through personalized Under Armor etc. are on the Rapid adoption/expansion emails and social media channels. The winning team culture of to changes in Markets. ADIDAS lies in its key 3Cs: confidence, collaboration, creativity. • The fluctuations regarding foreign exchange pose a major threat to the company. • Empower Confidence; To enable quick decisions and to • The slowdown of the Global economy since the outbreak take risks to learn new things, even failures are a part of of the Pandemic is a Major threat to Adidas like any other the learning process. Global Company. • Inspire Collaboration; To encourage openness, inclusive- • Customers have the tendency to switch to other brands for ness and trust in each other’s ability and talents. the benefit of better price deals, quality, and style. • Enable Creativity; which is the core DNA of ADIDAS, to explore innovative ideas, be open and never settle for less. 1 Student, Berlin School of Business and Innovation, Germany 2 Faculty, Berlin School of Business and Innovation, Germany Scientific Journal of Business & Innovation Digital Marketing Campaign for Adidas to Increase Customer Lifetime Value 53 54 Consumer market analysis Marketing goals Everyone is hoping that things will get better in the near Adidas has always influenced the purchasing decisions future. Germany’s economy continues to recover at a slow of more consumers by embracing e-commerce in more Figure 1 but steady pace. ‘In 2020, Germans spent between €70 efficient ways that are appealing to the consumers. The billion and €100 billion less than in ordinary years’ (DW, Global sales strategy and excellency team will handle the 2020). This difference in spending will hopefully be balanced differential strategy of Adidas. as the flow in consumption resumes back to normal. As this report emphasizes on the Grassroots Marketing efforts of Smart goals Adidas to personally engage with the individual consumers, • Specific: By December 31, 2022, the Adidas Marketing Founder: CEO: the geographic segmentation is limited to Germany (i.e. the team should have 1 million followers in social media Adolf Dassler Kasper Rorsted consumer profiling is limited to inhabitants of Germany only). platforms (presently Adidas Instagram has 697K followers by December, 2020) which can deliver 10,000 Qualified Situation analysis leads every month. Adidas is now focused on a Direct-to-the-consumer approach • Measurable: Through this Campaign, the company wants after the Pandemic Outbreak (COVID-19), which has to grow the leads generated each month by amplification eventually led to the closure of several retail stores across and applause from social media by 5%. the globe. This can be achieved by leveraging the broad • Actionable: The number of leads generated by each month reach over the internet and different means of delivery. The should increase by 3X on average from social media. Formerly Headquarters: products of Adidas are eminent, and now Marketing will • Relevant: The campaign is focused on increasing the Number of Dassler Brothers Shoe Factory Herzogenaurach, be the specific key to achieve close relationships with is percentage of new visits to adidas website, to have a lasting employees: (Gebruder Dassler Schuh Fabrik) Germany consumers. visitor loyalty and revenue conversions. 59,533 (2019) 1924–1949 • Time bound: The campaign is aimed at achieving 3000 Demographics organic leads in the next 24 months (about 2 years) through • The targeted population in Germany is 83.1 million (DESTA- its increase in social media followers by 40 percent/ 300k. TIS, 2020). • The women population in Germany is 42.1 million, which is Return on Marketing Investments 1 million higher than the men population (DESTATIS, 2020). Marketers are focused on the effectiveness and efficiency • The average Gross income of a household in Germany is of the Marketing Campaign, as it can always have no Area served: Revenue: € 4,734 (DESTATIS, 2020). measurable effects such as brand image, brand awareness, Europe and €23.640 billion • 98 % People in the Age group of 16-44 and 91% of people in customer loyalty etc. #shoesforfuture campaign will have worldwide (2019) the age group of 45-64 use internet daily (DESTATIS, 2020). heightened effects on the online metrics such as cost per click • An average of 5 hours and 57 minutes is spent by an indi- (CPC), cost per thousand impressions (CPM), increased web vidual every day on leisure activities which may include site traffic, Ad impressions and purchase conversion. sports, hobbies, other cultural activities, taking a rest, using This can be analyzed by the construction of a digital a computer/smartphone etc. (DESTATIS, 2020). version of a marketing dashboard. The Marketing dashboard Quick facts about Adidas AG. will present a broad insight into new customers, lost customers, Spending power and priorities and win-back customers to average customers. Through An average spending of an individual on clothing and this campaign consumers have an opportunity to create footwear per month is €106 or 4.1% of the monthly expenditure brand awareness or recall, can recommend, and influence (DESTATIS, 2020). a purchase of a environmentally sustainable product. The dashboard also enables us to narrow down the satisfaction • 94.3 % of the population in Germany have access to internet level on the scale of very dissatisfied customers to highly Figure 2 and 97.5 % of the population are users of Mobile phones- satisfied customers. of which 84.5 % are smart phones users (DESTATIS, 2020). • 74 % of Men and 73 % of Women in Germany Purchased online during the 1st Quarter of 2020 (DESTATIS, 2020). III. Result Buying attitude ‘Good marketing is no accident, but a result of careful planning Dawes, John (2009) emphasizes that Adidas enjoys impressive and execution using state-of-the-art tools and techniques.’ Cities brand loyalty through its inseparable association with elite or (Kotler et. Al, 2011) iconic sportspersons and sports clubs. In 2018, 42 % of the Top line & market share growth Brand population in U.S preferred to buy adidas clothing, shoes, and Adidas X Parley shoes Focus Gross margin expansion desire Culture Operating leverage accessories, as adidas is a popular brand for high income In the last five years, Adidas has lived the promise of creating Open source earners in the U.S (Ensight.com, 2020). Adidas has also built a better future for Oceans. Ultra-boost shoes are made from Speed a loyal customer segmentation among the teen and youth the yarns and filaments of marine plastic waste. This Shoes populations in the U.S (Ensight.com, 2020). The consumers reflect the collective commitment of Adidas and Parley in especially buy a product not only to satisfy their needs but conserving and protecting the Oceans, the underwater also to fulfil their emotional desire. The decisions are made habitats, and their ecosystem. Creating a strong tie, by based on rational experiences such as design, comfort, ease, impacting on social benefits or adding financial benefits, is convenience etc. and emotional fulfillment such as social status, a key to improving loyalty. This campaign #shoesforfuture peer affirmations, lifestyle, etc. is aimed at retention building process. This campaign will Sustainable tourism model (Part 2). integrate the ‘Voice of Adidas customers’ to address the unspoken needs of the hour. Digital Marketing Campaign for Adidas to Increase Customer Lifetime Value 55 56 Flash mob Direct email • At the start of the #shoesforfuture campaign, the company Direct mail is always helpful, as it caters to selective custom- has planned to make a One minute choregraphed dance ers with privileges to personalization. Moreover, direct mail video in a beach with 100 people wearing Adidas Parley has flexibility regarding time, which means that prospects Figure 3 shoes, and this video will be broadcasted in Adidas can be reached when solicitation requirements are necessary. YouTube in Germany. At the ends of the video, the crew Through personalized mail the company can deepen the rela- in the video will ask the customers of adidas to send their tionship between valuable customers and Adidas. “SPECIAL 23 pictures wearing an Adidas X Parley Shoes across the OFFER FOR CREATOR CLUB MEMBERS. The wait is finally over, social media platform such as Facebook, twitter, Instagram Get Your 50% discounts On Adidas X Parley Ultra Boost Shoes. Housing, energy, maintenance of the dwelling with the hashtag # Shoes for Future. Let us Go!” • In return consumers get patronage awards, price off / Transport Food, beverages, tobacco discount coupons, exclusive offers, health tips, and inform- Consumer market analysis 4 ative newsletters. Everyone is hoping that things will get better in the near Recreation, entertainment and culture 11 future. Germany’s economy continues to recover at a slow but Clothing, footwear With the spread of the Corona virus (COVID-19), the significant steady pace. ‘In 2020, Germans spent between €70 billion 35 lives of everyone have paused. Even though we last many and €100 billion less than in ordinary years’ (DW, 2020). This Other private consumption expenditure lives to the biggest pandemic ever, we still have the strength difference in spending will hopefully be balanced as the flow 14 to continue. The importance of empathy, hope and persever- in consumption resumes back to normal. As this report empha- 14 ance are felt tremendously, and that is why the success of this sizes on the Grassroots Marketing efforts of Adidas to person- campaign is unquestionable. ally engage with the individual consumers, the geographic Individuals can do so many things, but still better things segmentation is limited to Germany (i.e. the consumer profil- Private consumption expenditure in Germany, 2019. can be done together. The main motto of this campaign ing is limited to inhabitants of Germany only). Percentage shares, €2,574 total. is to share and receive individual’s hope from the Adidas Statistisches Bundesamt (Destatis), 2020. community across, to deliver a strong message to the world, Situation analysis of the new commitment to a meaningful action. As Sport is Adidas is now focused on a Direct-to-the-consumer approach the core of happiness and health of Society, it has the power after the Pandemic Outbreak (COVID-19), which has eventu- to changes people’s lives. ally led to the closure of several retail stores across the globe. This can be achieved by leveraging the broad reach over Mobile marketing the internet and different means of delivery. The products of In a developed country like Germany, the deeper penetration Adidas are eminent, and now Marketing will be the specific Figure 4 of cell phones is an advantage to mobile marketing. Through key to achieve close relationships with is consumers. this campaign, adidas can listen to the individual needs of 57 Total consumers, the preferences, satisfaction and organize a data- Return on marketing investments 73 base of information. Adidas can send personalized promo- Marketers are focused on the effectiveness and efficiency of tional deals and patronage awards to customers through the Marketing Campaign, as it can always have no measura- 57 Male SMS, who opt for receiving communications (creator club ble effects such as brand image, brand awareness, customer 74 members). This information is collected through amplification loyalty etc. #shoesforfuture campaign will have heightened 56 and applause from social media. effects on the online metrics such as cost per click (CPC), cost Female per thousand impressions (CPM), increased web site traffic, Ad 73 Social media impressions and purchase conversion. This can be analyzed (Instagram, Twitter, Facebook, Snapchat, etc.) by the construction of a digital version of a marketing dash- 2010 2020 According to Kotler (2011), ‘Twitter can be an early warning board. The Marketing dashboard will present a broad insight system, that permits rapid responses while Facebook allows into new customers, lost customers, and win-back customers Percentage of online purchases by Internet users in Germany (results refer to the 1st quarter). deeper dives to engage consumers in a more meaningful to average customers. Through this campaign consumers Source: Households in the information society (ICT). way.’ Initially, the one-minute choreographed video will be have an opportunity to create brand awareness or recall, can Statistisches Bundesamt (Destatis), 2020. featured in the Social media platforms of ADIDAS Germany recommend, and influence a purchase of a environmentally such Instagram, Facebook, Twitter etc. with a hashtag #shoes- sustainable product. The dashboard also enables us to narrow forfuture. With a quote: “Now our Social media is open for a down the satisfaction level on the scale of very dissatisfied Cause. Proud Patrons from Adidas, if you want to share your customers to highly satisfied customers. care for Sustainable future. Post it with #shoesforfuture.” This campaign will spread through word of mouth and through social media platforms. Positively word of mouth/mouse VIII. Conclusion happens with a little support from effective marketing eased References: through news feeds, blog posts and social media conversa- The Digital Marketing Report and the campaign is successfully tions. This campaign will be driven by Organic feed created prepared by evaluating the current digital marketing practices [160]. 2020. Adidas at a Glance. [Online] Available: https://www.adidas-group.com/en/group/profile/ [Accessed 12 December, 2020] [161]. 2020. The Key to Success. 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Scientific Journal of Business & Innovation [172]. 2020. Parley for the Oceans. [Online] Available: https://www.parley.tv/#fortheoceans [Accessed December, 2020] Guidelines for Authors Reviewing process person who significantly contributed to the scientific research work. For financial or other non-scientific reasons, an author All manuscripts are peer reviewed by at least two independ- may not be excluded from or added to the author list. The ent referees confidentially. During the reviewing process the originally submitted author list is not changeable. We do names of the authors and referees are treated with strict not publish any paper with different author-list than the orig- confidence, these are only known by the editor-in-chief, and inally submitted one, and we do not pay back any fee, in Call for Papers: the managing technical editor. 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