The Cinematography Of American Beauty Film Studies Essay

The Cinematography Of American Beauty Film Studies Essay Cinematography is an art form, not just an aspect of a movie. Cinematography affects the mood and tone of a movie as well as the viewers feelings while watching a movie. In American Beauty this is demonstrated beautifully through camera techniques, lighting, and the framing of the shot. Camera techniques include aerial, deep focus, pan, shallow focus, slow motion, soft focus, and the tracking shot. Lighting is more than just shining a light on a character. The cinematographer must know how to manipulate the lighting to create the mood and the correct throw of the light. He must know when to use soft light and when to use hard light to create the lines and shadows desired. The framing of a shot also adds to a movie. Framing the shot is the placement of objects and people in a scene to create the mood or to direct the viewers focus. These are all elements to think about when watching a movie and they are all shown superbly in American Beauty. American Beauty is narrated by Lester Burnham, the husband of Carolyn Burnham and father of Jane Burnham. He informs the audience that he has less than a year to live but in reality he is already dead; and the whole movie looks back at his life through his eyes. Lester Burnham is a 42-year-old who is unhappily married and is despised by his wife and daughter. Behind the red door of their home, the family is falling apart. The dinner table is a battleground, where the mother and father tear apart one another s unhappy lives and their daughter retreats into a balanced yet flawed reality she has no thought of being loved. Carolyn is only driven by success and Lester has just had enough. He makes friends with the cool, confident Ricky Fitts (who supplies him with drugs) and becomes a rebel, no longer even pretending to accept his family s criticisms. Meanwhile his wife has an affair with the real estate King, Buddy Kane, and even when Lester finds out he does not care. Lester develops an obsession with his daughter Jane s friend Angela and his only goal in life is seducing her because he believes she is the personification of beauty. Ricky likes to film things that are beautiful which includes Jane. At first this freaks her out, but in the end the two develop a relationship. Lester attains his chance with Angela but he discovers that he has been living a fantasy and she is nothing more than a scared little girl. In the end, Lester is killed by Colonel Fitts (Ricky s father). The movie opens with an aerial shot of the street where the Burnhams live. The nameless, one of many streets in the city, provides a sense that the Burnhams are small and unimportant in the world. For the first part of the movie, Lester is shot from above and small in the shot, making him seem small and unimportant. However, as the film progresses and Lester becomes more powerful, shots of him tend to come from below, depicting his power. Also in the office the camera shoots a still deep focus shot, or a shot that keeps the entire image in sharp focus, of the cubicles in the office showing the ceiling. The shot of the ceiling with the lights glaring down makes the scene feel oppressive, like the office is more powerful than man. When the neighbors come to welcome the Fitts to the neighborhood, the camera shows Colonel Fitts opening the door and when the door; swings in front of the camera, it switches to a shot of the people at the door. Cutting the scene when the door swings by make s the scene appear seamless and smooth to the viewer. A swish pan, or a very fast panoramic camera movement, is used when Ricky is filming Jane through his window and his dad comes in yelling. Ricky turns fast to look causing the camera image to blur giving a sense of chaos to the scene. After Lester is shot, he talks about his life and remembers the good times. A left to right tracking shot is used for this scene, making all the memories flow together smoothly and the left to right movement of the camera imitates his life. These are just a few examples of the camera techniques used in American Beauty to help bring the movie to life. Lighting also plays an important role in the audience s perceptions of characters while creating the mood for the scene. Lester has a dream where he walks down a hallway and finds Angela in a bathtub in a room filled with steam at the end of the hall. The entire scene is in soft light, light not directly from the source, to provide the impression of a dreamlike state. Also whenever Jane and Ricky are together, they are filmed in low soft light. The darkness and the soft light help add to the romantic mood and create a kind of calm feeling about the shot. Lester wants to get in shape for Angela so he goes down to the garage to find his old weights. He then undresses and looks at his reflection in the window. The shot of Lester looking at his reflection is lighted from above to make him seem overly chubby. One of the best example of framing the shot are the shots of the Burnham family at the dinner table. Carolyn is seated at one end, Jane in the middle, and Lester at the other end of a long table. This long shot frame that includes all the people and some of the surrounding environment shows the distance between Carolyn and Lester and yields the impression that Jane is just caught in the middle. After an argument at the dinner table Lester talks to Jane in the kitchen. The camera shot from outside through the window shows the window pain splitting Lester and Jane as a sort of dividing line between them giving the impression of a wall. Another example of framing the shot is that of Carolyn driving home from the gun range and the camera shows her gun sitting on the seat next to investment books, suggesting that money kills. Many people share the opinion that American Beauty is a great movie. Michael Wilmington and Jay Carr, two men that review movies, both agree. Its a picture with a great cool shiny surface, and it boasts superb actors, witty and iconoclastic writing, vigorous and imaginative direction and brilliantly stylized cinematography states Wilmington (Wilmington). Also, a millennial classic says Carr (Carr). American Beauty received five, well deserved, Academy Awards one of them for cinematography. For cinematography to be good, the techniques used should not be apparent to the viewer: they should only add to the movie. Conrad Hall shows his style and mastery of the camera and lighting in American Beauty. The audience is not consciously aware of the techniques used but subconsciously they have a big impact on the viewers emotions. Truly, Conrad Hall is a master of the big screen.

Vertical Boundaries

Chapter 10: Vertical boundaries Chapter 10: Vertical boundaries Aim of the chapter To understand the factors that influence the ways in which transactions on a vertical chain (value chain) should be/are located on the market–organisation continuum. Learning objectives On completion of this chapter and the essential reading, you should have a good understanding of the following terms and concepts: †¢ transaction cost economics †¢ strategic calculation. Essential reading Buchanan, D. and A. Huczynski Organizational behaviour: an introductory text. (London: Prentice Hall, 2008) Chapter 18. Douma, S. nd H. Schreuder Economic approaches to organisations. (London: Prentice Hall, 2008). Further reading Besanko, D. , D. Dranove and M. Shanley Economics of strategy. (New York: Wiley, 1996). Coase, R. H. ‘The problem of social cost’, Journal of Law and Economics 3 1960, pp. 1–44. Grossman, S. and O. Hart ‘The costs and benefits of ownership: a theory of vertical and lateral integration’, Journal of Political Economy 94(4) 1986, pp. 691–719. Williamson, O. E. ‘The economics of organization: the transaction cost approach’, American Journal of Sociology 87(3) 1981, pp. 548–77. 10. 1 IntroductionAs noted in Chapter 1, we may regard the basic unit in organisational analysis as an exchange or transaction generated in the division of labour. The division of labour (exogenous/endogenous – Chapter 3) creates value or vertical chains; for example as shown in Figure 10. 1(a) running from crude oil extraction to the retailing of petroleum products. We now operate at the level of organisations or firms (recognising that at a greater level of disaggregation the points in the chain are also based on chains of the division of labour) and pose the question as to where their boundaries should be located on the value chain.In fact the picture is usually more complex than the one depicted in Figure 10. 1(a). Activities usually depend on inputs at all points down the vertical chain, as depicted in Figure 10. 1(b). So organisations or market exchanges could control and coordinate each of these transactions. Furthermore, some of these inputs may be common to the points on the main chain (see Appendix 1. 2 in this guide), like accounting services, in which case the picture looks more like Figure 10. 1(c). Note the use of di-graphs once again. 91 Organisation theory: an interdisciplinary approach a) Oil extraction Refining Retailing †¢ (b) Shipping or pipe †¢ †¢ †¢ Distribution †¢ †¢ †¢ †¢ (c) †¢ †¢ †¢ Accounting †¢ Figure 10. 1 †¢ †¢ †¢ In general we are asking the question as to whether a particular transaction should be internalised (make) or left in the market (buy), as depicted in Figure 10. 2; that is, whether a point on the chain should be a department/ function or division or remain independent. For the momen t we restrict our attention to this simple choice rather than the more elaborate positioning on the market–organisation continuum.We shall return to the more elaborate issue later on. †¢ †¢ Market (Price mechanism) Figure 10. 2 Start by asking what the benefits and costs of using the market might be. The benefits could include the following: †¢ Independent firms may be able to reap the benefits of economies of scale (i. e. operate at an output that minimises unit costs) whereas internal departments may not. Unless the firm itself can absorb all the efficient output of the department, it must either operate below the optimal output level or sell on to another firm.This might compromise any information advantages of the purchasing firm (see below). †¢ Independent firms are more subject to market disciplines than departments and may hold down costs they can control more effectively. Costs may be difficult to identify in departments. Firms might, though, attem pt to replicate market incentives inside organisations. Tapered integration refers to a situation where a firm is supplied partially by an independent firm and partially by its own department. This allows their relative cost structures to be compared. Independent firms (i. e. their managers) may have stronger incentives to innovate when compared with managers of departments. †¢ †¢ Organisation †¢ 92 Chapter 10: Vertical boundaries The costs of using the market might include the following: †¢ Private information may be leaked to independent firms – particularly if there is a need to share technical information. †¢ The focal firm becomes to a degree dependent upon an independent supplier (depending upon switching costs).Thus the latter has a power resource (see Chapter 6) and may use it to hold up the focal firm. It may prove difficult to control and co-ordinate flows of goods and services down a vertical chain of independent firms. This may be particul arly so where there is a need to fit the products closely. ‘Just-intime’ methods seek to overcome this problem and permit independent firms often with long-term relational contracts (see below). The way most economists (following Coase and Williamson) think about the choice between a market and organisational exchange/transaction is entirely predictable – choose the arrangement that minimises costs. The innovation here is to ntroduce the idea of transaction costs – the costs involved in making (controlling and co-ordinating) the transaction. They are sometimes referred to as agency costs, and agency efficiency is found where they are minimised.So, if both production costs (which relate to technical efficiency) and transaction costs vary between organisational transactions and market transactions, then the total costs should be minimised. Activity Now read Sections 8. 1 and 8. 2 in D and S. If you would like to read a slightly more comprehensive economic ap proach to vertical integration, then read Besanko et al. 1996). In a world of fully informed, rational actors where contracting is complete, there are no transaction costs and the choice between market and organisational exchange is of no consequence (at least as conceived within this framework) unless production costs vary (which, again, they should not under the same assumptions). It is because we relax both the assumptions of full rationality and full information in the context of ‘real markets’ that transaction costs arise and the choice between market and organisational transaction is pertinent.Transaction costs theory is used both in a normative and positive sense. The new assumptions are as follows: †¢ Individual bounded rationality: people are intentionally rational but limitedly so. Individuals are neither able to make very complex calculations nor to assimilate large amounts of information. As you might expect, sociologists tend to like this assumption; t hey see it as more realistic than the full assumptions of rationality. †¢ Opportunism: individuals are not only self-interested but behave with guile.For example, in the context of game theory, individuals will issue promises which are not credible, make use of asymmetric information and they cannot be trusted. †¢ Contracting about transactions is incomplete because of inherent uncertainty and incomplete information. †¢ Contracting can thus lead to ex ante opportunism (namely, adverse selection) and ex post opportunism (namely, moral hazard). †¢ These hazards will be exacerbated to the degree that there is little choice of transacting partners and therefore reputations (see Chapter 7) in respect of third parties will not constrain opportunism – small numbers exchange. 3 Organisation theory: an interdisciplinary approach †¢ Anticipated repeated interaction will make reputations important to both parties but if in the process there is learning by doing, it is then costly to later switch exchange partner. Williamson (1981) calls this the ‘fundamental transformation’ – it ties the parties into the relationship. †¢ Williamson also observes that parties to a transaction might have a preference for a certain type of transaction in addition to the costs and benefits. He calls this ‘atmosphere’. In effect Williamson is introducing wider motives/utilities.Although the vocabulary introduced by Williamson is rather daunting at first sight, it has the advantage that it should link your thoughts into many of the ideas you have already encountered. Activity Think of transactions as a prisoner’s dilemma or trust game. Both parties would like to contract to achieve Pareto efficiency but each is wary of the other and in the absence of some mechanism to offset this wariness, the exchange does not materialise – the Nash equilibrium. So what mechanisms are available? You should be able to list the mechanisms.They can be derived as follows. Competitive market – the price as a sufficient statistic; here the prisoner’s dilemma does not model the situation. Organisation – three possible mechanisms which can produce the Pareto-efficient outcome rather than the Nash equilibrium are: 1. Authority and power. 2. Trust (cultural mechanisms). 3. Repeated transaction and reputation effects. As we have seen in earlier chapters, alongside monitoring and employment contracts (incentives), we expect organisations to avail themselves of a mixture of these mechanisms.But note, if we think in terms of ‘real markets’ rather than the ideal type of perfect markets, then the price mechanism is not sufficient and perhaps these mechanisms might also apply at different positions on the market–organisation continuum. We shall return to these matters later. Transaction cost economics embraces not only an unorthodox model of the individual but characterises aspect s (‘dimensions’, to use D and S’s terminology) of transactions that impact upon the transaction costs.Activity Now read Section 8. 3 in D and S. The argument is that asset specificity (sometimes called ‘relation-specific assets’), uncertainty/complexity and frequency of exchange all increase the likelihood that a transaction will be placed (governed) inside an organisation (that is, make) rather than left to the market (that is, buy). Asset specificity comes in different forms: †¢ site specificity – adjacent sites, usually to economise on transport and communication costs †¢ physical asset specificity – e. g. pipeline delivering crude oil †¢ dedicated assets – assets of a particular buyer dedicated to a particular relationship †¢ human asset specificity – skills dedicated to a particular relationship which would be less valuable elsewhere. 94 Chapter 10: Vertical boundaries So we now have a predictive t heory about vertical integration and, incidentally, contracting out. By and large, empirical evidence has supported transaction cost theory – particularly the impact of complexity in the context of uncertainty – though one should bear in mind what Williamson terms ‘atmosphere’.If there are widespread specific preferences – for instance, managers might prefer the power implied by organisation – this would complicate the picture. Furthermore, other factors might influence the choice between market and organisation. Regulation and taxation can confer advantages in deciding where profits are generated. For instance, taxation might favour small firms, and firms operating across different national tax regimes may find it an advantage to contract out. An organisation might vertically integrate to gain a monopoly or acquire information or to limit the flow of information to competitors (see below).Given all these possibilities, it is perhaps surprisi ng that such strong empirical support for transaction cost theory is found. Appendix 10. 1 in this guide gives a slightly more formal approach to Williamson’s reasoning. The transaction costs approach still leaves open two questions: 1. Will the integration, if appropriate, be backwards or forwards? 2. What type of organisation – e. g. centralised or decentralised hierarchy? (I leave an answer to this question to Chapter 12. ) An extension of transaction costs theory called property rights theory (which is not covered in D and S) provides an answer to the first question.When a transaction is internalised within an organisation, then ownership should (note the normative word) go to the party with the greatest impact upon the post-contractual rents. Activity Although this theory falls beyond this course, you might like to read Grossman and Hart (1986). Property rights theory is essentially a theory of bargaining power. Incomplete contracts mean that residual extra-contra ctual control of assets is important. Ownership confers bargaining power over operational decisions when enforceable contracts break down.Anticipation of post-contractual hazards determines earlier investment decisions. We now need to complicate the picture by reintroducing the market–organisation continuum, as in Figure 10. 3. I use the term ‘continuum’ with a certain amount of licence as the alternative positions on it vary in a number of respects and could be reordered. The continuum runs from perfect competition, at one end, to integration or organisation, at the other. The question now is: where should a transaction be placed on the continuum?Before answering this, let us look at what B and H have to say about the issues we have been discussing. 95 Organisation theory: an interdisciplinary approach Spot markets (perfect competition) Real markets Bargaining Franchising Long term contracts (network organisations) Tapered organisations Virtual organisations All iances Joint venture Monopoly (small numbers) Externalities Asymmetric information Fixed cost (risk to supplier) Risk sharing Cost plus (risk to buyer) Decentralised Integration (up/down) organisation Figure 10. Activity Now read Chapter 18 in B and H. Again, this chapter in B and H is extremely detailed; you need to master the main ideas running down the left-hand margin. None of them is inconsistent with anything you have learned from D and S; though note that the definition of vertical integration is in fact backwards vertical integration. Table 16. 3 in B and H gives a good overview of what I have termed the organisation–market continuum. So let us now return to the continuum – see Figure 10. 3 – keeping the rich descriptions in B and H’s chapter in mind.First, look at what I have termed ‘real markets’. Here we recognise that in the real world the market environment is often far from perfectly competitive. If the transaction is left to th e price mechanism, then various market distortions may undermine the price as a sufficient statistic. If, for instance, a supplier holds a monopoly, then backwards vertical integration may look attractive to a buyer. Likewise, a buyer might be tempted to vertically integrate backwards in order to acquire information or to reap benefits of vertical synergies (externalities).Long-term contracts (which will inevitably be incomplete) enable organisations to engage in a protracted relationship. They often occur between buyers and suppliers in a vertical chain. D and S introduced the idea of ‘relational contracting’ (an equivalent term). Remember, whenever you think in terms of contracts you need to think of the incentive, risksharing and information aspects. Fixed-term contracts put the risk of, say, increases in input prices to the supplier on the supplier’s back. Cost plus contracts reverse the situation. Between these two extremes, risk-sharing contracts can be des igned.If the buyer and supplier have differing risk preferences then, other things being equal, an optimal contract can be found. Network and virtual organisations (see B and H) are usually based upon long-term relational contracts, as are alliances. Joint ventures imply equity contribution from both the supplier and buyer. Centralised 96 Chapter 10: Vertical boundaries So the question now is: where should a particular exogenously generated (by the division of labour) transaction be placed on the market–organisation continuum? (The normative question. Alternatively, where is it placed and why? (The positive questions. ) Transaction cost economics claims to be both normative and positive and answers both questions – minimise transaction and production costs! But as we have seen, this is only part of the story. Activity Now read Section 9. 8 in D and S. In summary, the choice of the position of any vertical transaction on the market–organisation continuum may be s haped by: †¢ economies of scale †¢ anticipated information leakage †¢ acquiring information †¢ transaction costs †¢ residual property rights †¢ market imperfections †¢ regulation.But how are these various strands to be woven together? Unfortunately there is, as far as I am aware, no embracing theory. B and H introduce you to the concept of corporate strategy and to what many organisation theorists term strategic choice. Although the idea that organisational arrangements designed to control and co-ordinate activities are a matter of choice was first introduced by sociologists in reaction to an earlier tradition that spoke of ‘determinism’ – often technological determinism – we can now see this as an unhelpful distinction.Economists will always speak of choice where changing technology might either enhance or restrict the opportunity set which rational decision-takers face. We might then like to think of technological deter minism when for whatever reason, the opportunity comprises a single option. I encourage you to think in these terms even if you want to question the restrictive notion of rationality (see Chapter 1). Activity Now read Chapter 9, particularly Sections 9. 1–9. 7, in D and S. Sections 9. 1 to 9. 6 of D and S cover issues of strategic planning that impinge upon organisation theory but are more often encountered in courses on management theory.You will benefit from reading them but they are not central to this unit. The central idea in management theory concerns the sources of what is termed sustained competitive advantage (SCA). Why do some firms/organisations manage to sustain a better performance than their competitors, while operating in the same markets? Statistics tend to suggest that this is a common experience in many markets. Firms often earn above-average returns (loosely rents) on their assets over relatively extended periods of time. The assumption is that they have so me characteristics (but which? that their competitors find it difficult to replicate or improve upon, at least during the time in which the advantage is sustained. From an organisational theory point of view the question to ask is – are there ways of organising which can confer SCA? Notice that when an organisation possesses a competitive advantage, for whatever reason, then this implies that perfect competition is not operating. In so far as those running organisations seek SCA, they are trying to undermine 97 Organisation theory: an interdisciplinary approach competitive forces.The early sections of D and S’s chapter show how game theory is an indispensable tool in studying competitive strategies. 10. 2 Vertical contracting and strategic choice Consider a transaction between B and S, as in Figure 10. 4. The problem is to design a contractual relationship to gain any possible rents. In terms of competitive advantage this amounts to placing the transaction on the marke t–organisation continuum more effectively than the competition. Assume that there is need for relation-specific assets and a complete contract cannot be signed because of inherent uncertainties.Suppose now that B would like to persuade S to make the relation-specific investment. S’s ex ante problem is that in the absence of trust and credible promises, s/he anticipates that, once the investment is made, B will take advantage of the situation. S anticipates that B will always be able, once the contract is entered into, to find contingencies not covered by the contract. By making the investment, S in effect confers bargaining power upon B – who may even use this power to renegotiate the original contract (attempt to reduce the price of the good or service exchanged).S will then anticipate these moral hazards and accordingly not invest; the transaction will fail and both S and B will be less well off than they could be. Thinking in terms of the (for the moment, one -shot) prisoner’s dilemma, S and B find a Nash equilibrium rather than the Pareto-efficient outcome. So what can be done to achieve the Pareto superior outcome? S Figure 10. 4 B Some possibilities (neither exclusive nor exhaustive) are: †¢ B makes the relation-specific investment (but then B confers bargaining power to S) †¢ B nd S make a joint investment – an alliance or joint venture †¢ S continues to make the investment but enters into a long-term contract with B (note that relation-specific investments tend to imply long-term relationships in the first place) †¢ forward or backward integration (here non-market incentives/ monitoring/authority/power/culture achieve the move from the Nash equilibrium to the Pareto outcome). But let us continue to assume that B wants to find a non-integration solution and still to encourage S to make the costly upfront relation-specific investment.S/he might do this in the recognition that S, as an independent orga nisation, may be relatively small, flexible and focused. S, furthermore, may be driven by a more entrepreneurial spirit than if it were to be a division or department in B’s ‘bureaucracy’. An independent S may be more innovative. Also small organisations tend to have lower labour costs (production costs). If so, then both S and B can benefit. The strategic problem is whether or not the transaction costs (ex ante and ex post) can be kept down while reaping these potential advantages.To offset S’s anticipated moral hazard problems, B needs to search for ways of reducing her/his own and increasing S’s relative bargaining power. To the degree that this proves possible, the strategy will offset S’s anticipated moral hazards. B needs to make her/himself more dependent upon S before the contract is signed. One notable way s/he can secure this is to decentralise some design and innovation responsibilities to S. B now becomes partially dependent 98 Ch apter 10: Vertical boundaries upon S. Furthermore, B can commit not only to a long-term contract but also to relatively unconditional contract renewal.These strategies do of course put B at some risk. But since we are thinking in terms of incentives to transact, you should by now recognise that risk-sharing is another aspect of the possible contracts between S and B that can be subjected to strategic reasoning. Not unreasonably, I think, assume that S is risk-averse and B is risk-neutral. So S will accept a reduction in rent in order to reduce his/her risk and, relatively speaking, B will be prepared to shoulder more risk. So, a risksharing, long-term contract can conceivably lead to a Pareto improvement. Think in terms of post-contractual price negotiation.With a fixed-cost contract any increase in S’s costs will have to be borne by S. S will be reluctant to sign such a contract. With a cost-plus contract, on the other hand, B will bear all the risks of S’s cost incre ases. Furthermore, S will have no incentives to hold costs down nor, perhaps more importantly, to innovate in order to reduce costs. Clearly, B wants S both to innovate and, where possible, to hold down costs. It is not in B’s interests to take the risk from S and undermine these incentives. How can s/he provide appropriate incentives while reducing S’s risks and in so doing make the contract interesting to S?What B needs to do is to accept those risks of cost increases which S cannot control while making S responsible for those s/he can control – a tricky business. B needs to know the nature of S’s cost structure (an information problem – no problem with full information but with information asymmetry it is another story) before s/he can achieve this. Of course, integration might dispel this problem but then we encounter the bureaucratic losses mentioned above. What can B do? Go back to your principal–agent model (see Chapter 4). We can reg ard B as a principal and S as an agent.P (B) can acquire information by having more than one agent (S) operating in the same environment (in practice this is not easy). This is called multiple sourcing. It could be achieved by either multiple external sourcing or having an in-house comparator (tapered sourcing). But, of course, one needs to ask whether B’s sourcing requirements are of sufficient magnitude to reap any economies of scale across the multiple sources. If not, would it be sensible – from an information leakage point of view – to allow the sourcing organisation to sell to other organisations on the open market?If B has decentralised design to S then this might prove hazardous. As we have observed, long-term relationships (see Chapter 8) can invoke trust and reputation effects. Traditionally it was assumed that one of the advantages of integration into an organisation derives from the repeated interaction effects. B and S being in the same organisation , they repeatedly interact and, indeed, they will assume that there is a high enough probability that they will once again interact in the future. Thus prudent calculation can overcome the moral hazards in incomplete contracting.In game-theoretic terms B and S may play TFT (the folk theorem). B may also wish to protect her/his reputation for fair play. In short, an organisation can control and co-ordinate vertical relations by cultural means. However, long-term contracts with a continuation clause also produce repeated interaction (the Japanese were largely responsible, in the 1980s, for recognising this) and, thus, reputation and trust can be generated at other points on the market–organisation continuum. Cultural mechanisms can operate outside formal organisations.If B and S can trust each other not to behave opportunistically, then the advantages of S’s independence and reduced transaction costs can be realised. 99 Organisation theory: an interdisciplinary approach Finally, reverting to an extended value chain where S’s suppliers are also brought into the picture, we obtain the situation as in Figure 10. 5. †¢ †¢ R S B Price and market > †¢ > †¢ †¢ R S B Long-term contracts > †¢ > †¢ †¢ R S B Organisation span of co-ordination = 3 > †¢ > †¢ Figure 10. Should the whole chain be co-ordinated by integration (span of coordination) or perhaps co-ordinated by long-term contracts, etc.? If the latter, should B contract with S and R or should B contract with S and S with R? In either case we have examples of network organisation and even virtual organisation if the relationships are mediated by modern information technology. The strategic complexion of these sorts of organisation is little understood. Why don’t you have a go! I hope this section has given you some appreciation of how to analyse organisation choices from a genuinely strategic point of view.Much of the abo ve reasoning can be underpinned from a game-theoretic standpoint. This further supports my earlier contention that modern organisation theory often requires a knowledge of strategic thinking and game theory. A reminder of your learning outcomes On completion of this chapter and the essential reading, you should have a good understanding of the following terms and concepts: transaction cost economics strategic calculation. Sample examination question 1. Explain why a transaction should be placed in a market or an organisation. 100

Conspiracy Theory of John F. Kennedy´s Assassination

On November 22, 1963 President John Fitzgerald Kennedy arrived in Dallas to an excited crowd of people lining the streets hoping to get a glimpse of the President. At 12:30 in the afternoon, the President’s car made the last, fatal turn. As the car turned left onto Elm Street, past the Texas School Block Depository and headed down the slope that leads through Dealey Plaza, Governor Connally’s wife said, â€Å"Mr. President, You can’t say that Dallas doesn’t love you† (Report of the Presidents Commission on the Assassination of President Kennedy 48). Immediately after that, John Fitzgerald Kennedy, the thirty-fifth President of the United States was shot once in the neck and again in the head (Report of the Presidents Commission on the†¦show more content†¦This not only exposed President Kennedy to the sniping position of assassin Lee Harvey Oswald, positioned at the book depository, but also exposed the President to the grassy knoll and the Dal-Tex building, the two other locations eye witnesses suspected of hearing shots fired. Turning onto Elm Street â€Å"also caused the drivers to slow down to an estimated 10 miles per hour† (Groden 10). The Secret Service had to have approved the unexplained changes (Garrison 118). As thousands of individuals heard the shots and witnessed the death of President Kennedy, a few key individuals were composed enough to provide crucial information regarding the horrific act. There were many photographers and individuals videotaping in the Dealey Plaza who captured one of the most devastating moments in United States history. Abraham Zapruder shot the â€Å"Zapruder film,† perhaps the most famous film from November 22, 1963 (Groden 20). Zapruder’s film is a relentless â€Å"clock† of the assassination. It not only gives a visual record of the reactions to the gunshots, but also represents a device to verify the timing between the shots fired, which occurred in an incredibly short time span, less than nine seconds (Groden 21). Video evidence from Zapruder and many others indicates that policemen and Secret Service agents on the scene did not turn towards the book depository when hearing the shots, but towards the grassy knoll. â€Å"More than 80 percent of eye witnesses interviewed were drawnShow MoreRelatedThe Assassination Of John F. Kennedy1626 Words   |  7 PagesThe Assassination of John F. Kennedy John F. Kennedy, the 35th President of the United States, was assassinated on November 22, 1963 at 12:30 p.m Central Standard Time in Dallas, Texas while riding in a motorcade in Dealey Plaza.[1] Kennedy was fatally shot by Lee Harvey Oswald while he was riding with his wife, Jacqueline, Texas Governor John Connally, and Connally s wife, Nellie, in a presidential motorcade. A ten-month investigation by the Warren Commission from November 1963 to September 1964Read MoreAssassination Of John F. Kennedy1002 Words   |  5 PagesThe Assassination of John F. Kennedy â€Å"Our most basic common link is that we all inhabit this planet. We all breathe the same air. We all cherish our children’s future. And we are all mortal.† President Kennedy stated in his commencement speech at American University on June 10, 1963. John F. Kennedy was an American politician who served as the 35th President of the United States from January 1961 to his assassination in November 1963. There are numerous conspiracy theories involving Kennedy’s assassinationRead MoreJohn F. Kennedy s Assassination1739 Words   |  7 Pages John F Kennedy grew up in a wealthy and very political family. His assassination was a shock to many. It was a time of Cold War and the peak of US involvement in Vietnam. It is important to understand the John F. Kennedy regime including both its national and foreign policy. You also need to look into his personal life. This would help to create motives, and find the primary aspect to consider when looking into any homicide, a ssassination or murder. He was the first president who was a Boy ScoutRead MoreThe Kennedy Assasination Mysteries Essay1401 Words   |  6 PagesThe Kennedy Assasination Mysteries The Kennedy assassination was a huge part of the 1960s. It still is today due to the lack of information. This lack of information has caused the real truth to become hazy. There are numerous books, web sites, and reports that are filled with stories of conspiracy and lies that were supposedly involved in the Kennedy assassination. This is one of those papers. However, this paper is committed to the research of the truth. The truth being that Lee HarveyRead MoreJfk, An American Thriller Directed By Oliver Stone1349 Words   |  6 Pagesshooting of President John F. Kennedy and the ensuing cover-up perceived through the eyes of former New Orleans District Attorney, Jim Garrison, who is played by renowned American actor, Kevin Costner. Some years following President Kennedy’s assassination, Jim Garrison filed charges against New Orleans entrepreneur Clay Shaw, who is played by actor Tommy Lee Jones. Clay Shaw was accused of allegedly conspiring against and contributing to a plo t to murder President John F. Kennedy, for which Lee HarveyRead MoreJohn F. Kennedy Assassination1618 Words   |  7 PagesJohn F. Kennedy Assassination Was John F. Kennedy’s assassination a single shooter or was it a conspiracy? Since November 22, 1963 people around the world have wondered who it was that shot President Kennedy, and what for. So many questions have formed around this event, not just about who the shooter was, but also questions like what might the world have been like today if the shooting didn’t happen? The Kennedy assassination has been a mystery for many years. A lot of people hear about the differentRead MoreThe Assassination Of Jfk Assassination Theory1385 Words   |  6 Pagesresearch essay is the JFK assassination theory. I would like to research this because I have seen documents and videos online and on television about the conspiracy but I have not done full research into it to see the facts. With the presidents of the United States they are able to make or break the country with their decisions, with that JFK was assassinated due to that and other reasons. I will be going into this research thinking that there is a conspiracy behind the assassination of JFK that it wasnRead MoreKennedy s Conspiracy Conundrum By John F. Kennedy1504 Words   |  7 PagesKennedy s Conspiracy Conundrum Ask not what your country can do for you, ask what you can do for your country. These few words are some of John F. Kennedy s most famous; they were given in his Inaugural Address on January 20, 1961. He would serve, as some say, the most difficult presidential term, enduring the Cuban Missile Crisis and the Bay of Pigs. He would also pass some of the most beneficial laws such as housing for the public, minimum wage policy, and social security. Unfortunately, hisRead MoreAssassination Of Jfk. In The Assassination Attempt On John1345 Words   |  6 PagesAssassination of JFK In the assassination attempt on John F. Kennedy, the 35th President of the United States of America, on 22 November 1963 in Dallas, Kennedy (1917-1963) was fatally shot by Lee Harvey Oswald. As a suspect, Lee Harvey Oswald (1939-1963) was arrested and killed two days later by the nightclub owner Jack Ruby (1911-1967) in police custody. Kenny s successor, Lyndon B. Johnson, the Warren Commission concluded that Oswald was the only culprit. A later convicted investigativeRead MoreWho Killed Jfk? The Kennedy Conspiracy?1047 Words   |  5 PagesKevin Myers Professor Vollaro ENC 1101 June 8, 2016 Reader Response Essay â€Å"Who Killed JFK? The Kennedy Conspiracy† In The Week’s article, â€Å"the CIA, aliens and the Illuminati, those shots are continuing to reverberate across the US.† I believe the John F. Kennedy’s assassination was an inside job, the only problem is they’re so many variables, and so much controversy in that particular fragment of history; Politics, The Mafia, The Soviet Union, Possibly the CIA, our own government could all have

The Tempest Analysis Discusses Morality and Fairness

This analysis reveals that Shakespeare’s presentation of morality and fairness in the play is highly ambiguous and it is not clear where the audience’s sympathies should lay. The Tempest Analysis: Prospero Although Prospero has been treated badly at the hands of the Milan nobility, Shakespeare has made him a difficult character to sympathize with. For example: Prospero’s title in Milan was usurped, yet he did much the same thing to Caliban and Ariel by enslaving them and taking control of their island.Alonso and Antonio cruelly cast Prospero and Miranda out to sea, yet Prospero’s revenge is equally as cruel: he creates a horrific storm which destroys the boat and throws his noble counterparts into the sea. Prospero and Caliban In the story of The Tempest, Prospero’s enslavement and punishment of Caliban is difficult to reconcile with fairness and the extent of Prospero’s control is morally questionable. Caliban had once loved Prospero and showed him everything there was to know about the island, but Prospero’s considers his education of Caliban as more valuable. However, our sympathies firmly lay with Prospero when we learn that Caliban had tried to violate Miranda. Even when he forgives Caliban at the end of the play, he promises to â€Å"take responsibility† for him and continue to be his master. Prospero’s Forgiveness Prospero uses his magic as a form of power and control and gets his own way in every situation. Even though he does ultimately forgive his brother and the king, this could be considered to be a way to reinstate his Dukedom and ensure the marriage of his daughter to Ferdinand, soon to become King. Prospero has secured his safe passage back to Milan, the reinstatement of his title and a powerful connection to royalty through the marriage of his daughter – and managed to present it as an act of forgiveness! Although superficially encouraging us to sympathize with Prospero, Shakespeare questions the idea of fairness in The Tempest. The morality behind Prospero’s actions is highly subjective, despite the happy ending which is conventionally employed to â€Å"right the wrongs† of the play.

How I Met My Husband And Araby Analysis - 1550 Words

There is a certain time in everyone’s lives in which they experience the phenomenon known as immaturity. Everyone was once a child and makes thus have a record for making wreckless mistakes. However, as the years pass by, we all have come to realize our mistakes and learned from them in order to mature. In How I Met My Husband and Araby, both authors showed how their main characters developed over time. Each main character from both stories transitioned from a child to a young adolescent. However, each character’s path differs in order to find themselves. For instance, How I Met My Husband is told in the first person point of view and the main character is a girl. Whereas, Araby is told from the perspective of a young boy. Both characters†¦show more content†¦In the story, Munro wrote, â€Å"He put the cake away carefully and sat beside me and started those little kisses, so soft, I can’t ever let myself think about them, such kindness in his face and l ovely kisses, all over my neck and ears, all over†¦.and we lay back on the cot and pressed together, just gently, and he did some other things, not bad things or not in a bad way.† Edie unquestionably liked Chris and made her believe she was an adult because he liked her in return. Similarly, in James Joyce’s Araby, the young boy who isn’t identified, has a crush on a girl that is around his age. However, Chris is much older than her and is aware that he’s twice, if not three times her age. In addition, Edie even admits that, â€Å"I (she) had only kissed a boy on a dare before, and kissed my (her) own arms for practice.† For that reason, Edie has never experienced anything other than a meaningless kiss and isn’t knowledgeable of the situation she is in. In the same way, the boy from Araby is inexperienced with girls and tries to impress her by going to the bazaar she wasn’t able to attend. Nevertheless, at a young age, teenagers are naive and ignorant about the process of growing up and soon enough learn from their mistakes. For instance, Mrs. Peebles tells Edie, â€Å"Calm down. Don’t get hysterical. Calm down. Stop crying. Listen to me. Listen. I’m wondering, if you know what being intimate means. Now tell me. What did youShow MoreRelatedANALIZ TEXT INTERPRETATION AND ANALYSIS28843 Words   |  116 Pagesï » ¿TEXT INTERPRETATION AND ANALYSIS The purpose of Text Interpretation and Analysis is a literary and linguistic commentary in which the reader explains what the text reveals under close examination. Any literary work is unique. It is created by the author in accordance with his vision and is permeated with his idea of the world. The reader’s interpretation is also highly individual and depends to a great extent on his knowledge and personal experience. That’s why one cannot lay down a fixed â€Å"model†

New Balance Athletic Shoes Case Free Essays

Operations Management and Management Science Case Study Capacity Planning New Balance Athletic Shoes Summary James Davis is the president and general manager of New Balance Athletic Shoes. The Boston, Massachusetts based company began producing corrective shoes and arch supports in 1906. New Balance garnered a reputation for quality specialty footwear when in the 1950’s it began producing running shoes for men. We will write a custom essay sample on New Balance Athletic Shoes Case or any similar topic only for you Order Now It is the beginning of 1978 and Mr. Davis has a number of important decisions to make regarding the future of his growing company. In recent years the demand for running shoes has experienced explosive growth. The increasing popularity of the sport of running requires James Davis to carefully evaluate the accuracy of the company’s sales forecast. Mr. Davis knows that precise forecasting is the key to providing good-quality service by meeting customer demand. Another effect of increasing demand on New Balance is the necessity for expansion. Mr. Davis must evaluate a number of options for expanding production capacity in order to meet increased demand for his company’s products. This report will attempt to offer James Davis sound advice in regards to the evaluation of sales forecasts and expansion options. We will also present Mr. Davis with an alternate sales forecast and an evaluation of New Balance’s sales representative network. Analysis: Upon reviewing New Balance’s 1978-1981 domestic sales forecast, it is decided that James Davis may have reason to be apprehensive. Davis needs to be sure that the forecasted sales increases, which range from 117% to 286% of 1977’s sales, are truly warranted. Although Davis knows that demand for running shoes is skyrocketing, he should also know that that does not guarantee sales. The maturing preferences of the shoe consumer have been evident in the ever changing ratings of Runner’s World magazine’s top ten shoes. Upon reviewing the lists of top ten shoes we realized that product development is not only a key to New Balance’s success, but is also a key to success for a majority of its competitors. While only 2 of the top 10 running shoes of 1975 were introduced within a year of being rated, the following two years of ratings were filled with a majority of newly developed products. The 1976 ratings listed 7 of 10 running shoes which had been introduced within a year of being rated, and the 1977 ratings listed 6 of 10 running shoes which had been introduced within a year of being rated as well as 1 of the 10 that had been substantially redesigned. The achievement of new products in Runner’s World magazine’s rankings proves that product development is going to be one of the biggest keys to New Balance’s future success. While New Balance has a reputation for producing quality footwear, we must urge Mr. Davis to insure that his company remains on the leading edge of running shoe development. In the past, New Balance has been able to distinguish itself by offering its shoes in varying widths. While making varying widths available has set the company apart from its competition in the past, we predict that it will eventually become an industry standard. Much of the recent success of New Balance was due to the rave reviews of the newly developed 320. New Balance product designers, working in unison with a world-class distance runner, found that a built up heel wedge and midsole greatly improved the comfort of the shoe. The design team also reduced the sole thickness of the 320, which in turn reduced the shoe weight and thus the runner’s level of fatigue associated with their footwear. These are the innovations that New Balance must continue to excel in if it wishes to meet its forecasted sales. Development of new shoe designs and the use of new materials will allow New Balance to produce the lighter and more flexible shoes the running public desires. Another product development related recommendation we would like to make to New Balance is in regards to its competition. New Balance can no longer be content following industry leaders such as Adidas and Nike. Although the two large shoe manufacturers produce nearly 70% of the product available, smaller companies such as New Balance, Brooks, and Etonic have been able to make enormous headway into the market. Adidas and Nike, being larger more top heavy corporations, will naturally have longer time periods between research and development and product release. We suggest that New Balance take advantage of its smaller size by releasing the types of new products previously detailed at a faster pace than their larger competitors. It is in this area that we feel New Balance’s demand forecast is flawed. The forecast’s short term reliance on current products in the company’s shoe line is an error that may cause New Balance sales. As evidenced by the average two year appearance in Runner’s World ratings, the life span of a running shoe is short. We do not believe that New Balance can rely on the 320 to carry sales until their new trainer is available (;1yr. ) to gain market share. New Balance needs to rapidly release newly developed, state of the art running shoes prior to both industry leaders to put the company in a position to capture additional market share. In addition to believing that New Balance’s product mix has been forecasted incorrectly, we also contend that it has been somewhat overestimated. The following alternate demand forecast estimates overall market demand, as well as demand estimates for specific consumer categories. Please take note of the assumptions that were made in the creation of the forecast. Next, we look at New Balance’s sales representative network and its relationship to the company’s production facility location. The most important aspects to note concerning New Balance’s distribution, is the over representation in the northeast, and the under representation in the West. While New Balance has been able to maintain a strong market share in the northeast where a majority of its sales representatives are located, the company’s market share is low in the west where the largest portion of the running shoe market is located. Due to this under representation, the western sales region represents a great deal of untapped potential for the company. Although having its production facility located in the northeast has helped New Balance build up its market share in that particular region, the company should consider the advantage of having a more westward located facility to help strengthen its presence in the region. Finally, we are going to address New Balance’s various options for capacity expansion. In addition to running a second shift, alternate sites for new facilities have been located in Lawrence, Massachusetts, the state of Texas, and the country of Ireland. The following table details the financial aspects associated with each expansion option. Beginning with the option of starting a second shift, you can see that Mr. Davis’ belief that this option is not viable holds true. On the one hand, a second shift is not the best financial decision for New Balance because of both higher expenses (Labor Cost), and lower projected earnings due to lower capacity (1500). On the other hand, a second shift is not the best option from a human relations perspective. Mr. Davis has made mention of various concerns regarding company employees such as finding good stitchers and supervisors, keeping morale high, and preventing unionization. Mr. Davis has also located an available production facility in Ireland. This site does have the advantage of having a lower labor cost, a lower facility cost, lower equipment costs, and savings from both a tax holiday and available grants. While the Ireland location does have certain benefits, there are a number of critical drawbacks. The negative aspects of the Ireland facility are a slightly lower capacity potential, and very costly international freight costs. Both of these factors greatly reduce Irelands estimated after tax earnings, and are the reasons we are recommending Ireland as the second worst choice for New Balance. The next site to be considered is the Lawrence facility. This location has qualities that should appeal to New Balance. The Lawrence site is the largest of the company’s options, has local government willing to offer relocation assistance, and is close to the Everett St. ocation and its network of material suppliers. In addition to these qualities; it has been found that there are a number of local experienced shoe workers in need of work. Although these factors make Lawrence attractive to the company, they are offset by the site’s shortcomings. Lawrence has a higher labor costs, moderate rental costs, a short lease term, and a high state tax liability which makes the site the second best choice for New Balance. Texas remains as the last site evaluated, and is the recommended site for New Balance. Although there are some negative aspects in regards to Texas, such as higher materials and overhead costs as well as higher rental costs, they are outweighed by the sites positive points. While moderate labor costs, the absence of state taxes on corporate income and the availability of skilled workers are all good reasons to recommend Texas, it is its westward location which is the key to Texas’ potential. As mentioned earlier, New Balances lack of presence in the west is costing the company potential market share in an area highly populated with runners. Having a centrally located production facility will no doubt improve its Texas and west coast market shares. Conclusion: From the above analysis, we draw the following conclusions: 1. New Balance’s sales forecast is overestimated and their forecasted product mix is in error. The company should use the alternate forecast provided. Additionally, New Balance should rely less on its current shoe models by working towards more rapid product development. 2. In order to develop an accurate demand forecast, particular attention should be paid to the expected growth of both serious and women runners. . There is an effect on regional market share based on the location of the production facility. If New Balance would like to increase market share in regions other than its own it should seriously consider a more westward production facility. 4. After taking both financial and non-financial aspects into consideration, the opening of a Texas facility is recommended. Another benefit of havin g an additional production facility located in Texas will be the company’s ability to fulfill the previously mentioned lack of western regional market share. How to cite New Balance Athletic Shoes Case, Essay examples

Austravel Pty Ltd Law of Contract

Question: You work for an advertising company and are asked to review a holiday package from a brochure before it goes to print. You are asked to provide advice to the advertising company on the legal effect of the representations in the brochure. Answer: For the purpose of making the report for the present assignment, the holiday brochure of an Australian company needs to be selected. Therefore, the brochure of Austravel Pty Ltd has been selected. This brochure has been designed to provide information to the consumers. Therefore the contents of this holiday brochure have been evaluated in order to make the present report. This analysis is done for the purpose of seeing if there is any information presented in this holiday brochure that can be treated as unconscionable, misleading or deceptive. Similarly, it also needs to be seen if the information that has been mentioned in the brochure by the company makes a false representation. Similarly, this holiday brochure also needs to be evaluated in order to see if any prize or gift has been provided to the consumers by the company or if there's something in the brochure that amounts to bait advertising. Under the law of contract, the terms of a contract may fall in the category of conditions or warranties or representations. It is also worth mentioning at this point that while in the past, only two categories of the contractual terms were present, conditions and warranties, but after the decision given by the court in Hong Kong Fir Shipping v Kawasaki (1926), third category of innominate terms was also created. It is very significant to correctly decide in which category, a particular term of the contract falls in. The reason is that the remedies that may be available to the innocent party in case of a breach of contract may rely upon the category in which the contractual term falls (Khoury and Yamouni, 2006). It has also been provided by the law of contract that any false or misleading claims should not be made by the parties to the contract concerning the supply of goods or services. In the same way, the law also prohibits from making false or misleading claims related with the description of the goods or services that the party is offering under the contract. Hence, the law prohibits the businesses from making false and misleading claims that may be related with the quality, value or the standard of the products that have been provided to the customers (Carter and Harland, 2004). A term of the contract can be described as a condition if it is a significant term and this term goes to the root of the contract. Therefore, in case such a term has been breached, the law provides the right to the other party according to which the contract can be terminated by such a party. At the same time, the innocent party is also allowed by the law to claim damages. However, if only a warranty has been breached, which can be described as a minor term, the law does not provide the right to terminate the contract to the innocent party. Therefore, the innocent party can only claim damages for the breach of a warranty (Graw, 2011). As mentioned above, apart from the category of conditions and warranties, a third category has also emerged. This is the category of innominate terms. Therefore, in case of a breach of an innominate term, the court looks into the effect of the breach of the term of the other party. Hence, if the court finds out that due to the breach, the innocent party has been deprived from nearly all the benefit that it was going to achieve under the contract, the court may allow such a party to terminate the contract and at the same time, such party can be allowed by the court to claim damages (Sweeney, OReilly and Coleman, 2013). At this point, the provisions of Australian Consumer Law, particularly section 18 should also be considered. Section 18 provides that, while entering into the contract, the parties cannot be involved in conduct that can be termed as misleading or deceptive while they are going to supply goods or services. For this purpose, it has been stated by the courts that misleading or deceptive conduct may include actions of the party and also the silence of the party. In the present report, the contents of the holiday brochure of Austravel Pty Ltd need to be examined in order to see if these terms fall in the category of conditions or warranties. It is also worth mentioning at this point that all the terms that have been mentioned in this agreement need to be analyzed in order to see if they fall under the categories of conditions or warranties. Similarly, it also needs to be mentioned at this point that in Australia, the advertisements are governed by common law as well as the statute law. At the same time, the government agencies, along with self-regulation is also present regarding the claims that are made in the advertisements. When the Austravel brochure is analyzed, it is found that there are a number of terms that have been mentioned in this agreement. These terms fall under the categories of conditions and warranties. For instances, according to a particular term mentioned in this brochure, it has been stated that the consumers will have to pay $35 per day to the company they decide to take along their pets on the holiday. Hence, the brochure clearly states that this amount will have to be paid by the consumers. According to another term that has been mentioned in the brochure, it has been stated that the accommodation provided to the consumers will match the description made in the holiday brochure. However, it is worth mentioning that it has not been clearly stated if the image of the accommodation that has been shown in the brochure is a description of the real accommodation that will be provided to the consumers. Due to this ambiguity, it is likely for a number of consumers to believe that they will be provided the same accommodation that has been shown in the brochure of the company. There are certain legal rules related with the statements that have been made by the company in fine print. The law provides that by using these statements made in fine print, a company cannot evade its duties. In view of these provisions of law, an obligation has been imposed on the company by the law that it should clearly mention if the consumers are going to be provided with the same accommodation that has been shown by the company in its brochure or the accommodation will be equipped differently (Vermeesch and Lindgren, 2011). There is another term present in the holiday brochure of the company which it has been stated that the company cannot be held accountable for providing any compensation to the consumers in case a loss or damage has been suffered by them. Therefore, all the responsibility lies with the consumers only. It appears that through this term present in the holiday brochure of the company, which has made an attempt to restrict its liability in case the consumers suffered any loss or damage. But the consumer law provides that a company cannot rely on the disclaimers if the conduct of the company can be described as misleading or deceptive. At the same time, it is also worth mentioning that the consumers cannot ignore such a disclaimer totally. According to the law of contract, the company can rely on such a disclaimer for the purpose of limiting its liability if the disclaimer has been brought to the notice of the consumer before entering into the contract. Hence, such a clause can provide pro tection to the company if it has been properly included in the contract. But in the end, the enforcement of an exclusion clause is a matter that depends on the facts of each case. There is another clause present in the holiday brochure according to which, it is the responsibility of the holidaymakers that they should leave their rooms tidy and clean. The brochure of the company mentions that in case the company has to incur extra expenditure for cleaning the room, the company reserves the right to charge these expenses from the consumer. In this way, the consumers have been clearly informed that if any extra amount has to be spent by the company on the cleaning of the room, the company has the right to charge these expenses from them. There is another clause present in the agreement of Austravel through which the company has tried to exclude its liability in case the goods of the passengers are lost or damaged. Hence this term, states that in case the belongings of the consumers are lost or damaged otherwise, the company cannot be held responsible to pay damages in such a case. By inserting this clause in the agreement, an attempt has been made by the company to place full responsibility on the consumers alone regarding their belongings and the company owns no liability in this regard. According to another clause present in this agreement, it has been stated that the company will not refund the booking amount to the consumers in case anybody wants to cancel the booking. It is also mentioned in this clause that if the total charge of the holiday is less than $100, in such a case the consumers are required to deposit the full amount. In this way, effect of this clause is that if the consumer is going to book a holiday that costs less than $100, and later on wants to cancel the booking, it is possible that the company may refuse to return the whole amount. Another exclusion clause has been implemented by the company in this agreement. Through this term, an attempt has been made by the company to exclude its liability or at least to limit the liability of the company. This term mentions that the holiday company cannot be held liable for any loss or damage suffered by the consumers due to reasons like mechanical failure, inclement weather, acts of government, etc. in the same way, there is another clause present in this agreement, which provides that the company is not accountable for the loss or damage caused to the consumers due to acts of God like fire or flood or similar other causes. In the same way, there is another clause, which provides that in case any loss is suffered by the consumers from the neighboring properties, in such a case also, the company cannot be held accountable. In this way, the analysis of various terms of this agreement reveals that these terms have been mentioned in the brochure of the company with a view to e xclude or limit the liability under certain circumstances. Bait advertising generally takes place when a particular product is advertised by the business at a certain price, but the business does not have the reasonable supply of such a product so that the consumer is made by it (ACCC v Channel Seven Brisbane Pty Ltd., 2009). What can be termed as 'reasonable supply' depends on several factors, including the nature of the product and what was claimed by the business in its advertisement. However the analysis of the present knowledge of mission has revealed that there is no bait advertising on part of the company. In the same way, the company has not offered any gifts or prizes to the consumers in its holiday brochure. References Carter and Harland, 2004, Contract Law in Australia, 4th ed., Butterworths Lexis Nexis Graw, Parker, Whitford, Sangkuhl, 2015, Understanding Business Law 7th ed LexisNexis Butterworths Graw, S., 2011, An Introduction to the Law of Contract, 7th Ed., Thomson Reuters. Khoury and Yamouni, 2006 Understanding Contract Law, 7th ed., Butterworths Lexis Nexis Latimer, P, 2016, Australian Business Law CC, 2016 Edition Sweeney, OReilly Coleman, 2013, Law in Commerce, 5th Ed., LexisNexis. Vermeesch,R B, Lindgren, K E, 2011, Business Law of Australia Butterworths, 12th Edition Case Law Australian Competition and Consumer Commission v Channel Seven Brisbane Pty Limited [2009] HCA 19 Hong Kong Fir Shipping Co Ltd v Kawasaki Kisen Kaisha Ltd [1961] EWCA Civ 7