Economic Effects of Terrorism in the UK

Economic Effects of Terrorism in the UK Terrorism has deep history science the cold war but this issue become most salient after terrorist attacks in September 11 2001. This incident affected the UK and international business community in various ways. On one hand the world business community was affected financially, the other hand it suffers due to legal and security issues. The international business between countries was most seriously affected due to security and safety concerns and legal issue. Especially UK, US and other developed countries were compulsion to protect their territory and people on the cost of business with the rest of the world. Many businesses found themselves floundering financially in the months after the terrorist attack on world Trade Centre, while businesses located in world trade centre lost their personal and business locations. According to U.S department of state (2002) more than 3000 people of different nationalities were killed in the terrorist attacks only in the United States in Septemb er 11, 2001. The attacks were the conspicuous example of terrorism on global level. According to the overview of European commission (2001) this was the one of the major event in the past decades which diversifies the viewpoint and outlook of people around the world. Terrorism affects both the long term and short term perspectives of the businesses around the world. Czinkota (2002) cited that terrorism influenced long term karma of entire industries, for example tourism, retailing and manufacturing industries. In this competitive age, the business environment is changing dramatically. The international business has culminated in a global economy, with diverging cultures. But, there are strong protests against globalization echoing its destabilizing effects from many corners of the world. Terrorism can be seen, in substantial part, as a result of this backlash to the businesses. There are number of definitions of terrorism, in the world of Alexander et al (1979) à ¢Ã¢â€š ¬Ã…“terrorism is a threat or use of enforcement and inclemency to achieve a political goal by means of intimidation fear, and coercionà ¢Ã¢â€š ¬?. In the present world context, the European Union (2001) define the terrorism relevant to international business in the following words. à ¢Ã¢â€š ¬Ã…“Terrorist offences are certain criminal offences set out in a list comprised largely of serious offences against persons and property which, given their nature or context, may seriously damage a country or an international org anisation where committed with the aim of: seriously intimidating a population; or unduly compelling a Government or international organisation to perform or abstain from performing any act; or seriously destabilizing or destroying the fundamental political, constitutional, economic or social structures of a country or an international organisationà ¢Ã¢â€š ¬?. In UK terrorism is not new phenomenon but businesses were highly affected due to September 11, 2001 and July 7, 2005 incident. Although the economic impact on UK businesses has not been detrimental as initially feared but it is very important not to diminish the impact of even small unforeseen costs can have on businesses in particular. However many UK businesses were relived that tangible impact of terrorist attacks had been very small but business confidence is the key and has inevitably been affected in short term. The biggest economic impacts of past twenty years terrorist attacks is the damage to confidence in the UK businesses and people. This study is another attempt to research and investigates the impacts of terrorism on the UK businesses activities and we will also discuss different approaches for reducing and handling the terrorism threats. 1.1 Research Aim: The aim of this research is to analyse and explore the economic effects of terrorism on businesses in the United Kingdom. The second part of this research is to critically analyse and recommend the most appropriate strategies for management to deal with the terrorist threats or scrutinize the different business strategic views to avoid and minimise the impact of terrorism on UK businesses. 1.2 Research Objectives: This research has the following individual objectives: Critically analyse the economic impact of terrorism on UK organizations and the entire economy in UK. Evaluate the managerial performance in organizations, before, during and after the happening of the terrorist attacks and in uncertain environment. 1.3 Research Questions: What are the economic effects of terrorism on business? How to development strategy for managers or adopt a better approaches to deal with above mentioned issues? 2. Literature Review: In this era terrorism is arguably one of the biggest threats to the business around the world. It can take many shapes and forms. The last twenty years have seen a dramatic rise in terrorism. Terrorism did not begin in 21st century after World Trade Centre terrorist attacks on 11 September 2001. The terrorism history is as old as humansà ¢Ã¢â€š ¬Ã¢â€ž ¢ willingness to use violence to affect politics. Europe, United States and other continents have a very long and sad history of terrorist attacks. In past century IRA in UK, ETA in Spain, Brigate Rosse in Itely, Rote Armee Fraktion in Germany, 7 November in Greece are the few worse examples of terrorist groups in Europe. In United States we remember the bombing in Oklahoma City in 1994, World Trade Center bombing in 1993 and 11 September 2001 terrorist attacks. But September 11 2001 attacks have changed the world, as UN Secretary General Kofi Annan has said, à ¢Ã¢â€š ¬Ã…“none of the issue that faced us on 11 September 2001 has beco me less urgentà ¢Ã¢â€š ¬?. Now the terrorism has grown to an unprecedented limit and in multiplicity. As we know that, even terrorist without the use of weapons of mass destruction can kill thousands of people and destroy businesses (Gabriele G.S. Suder 2004). According to Blomberg et al 2004 à ¢Ã¢â€š ¬Ã…“terrorism is associated with a diversion of spending from investment to governmentsà ¢Ã¢â€š ¬Ã¢â€ž ¢ expenditureà ¢Ã¢â€š ¬?. To fund these government expenditures, they borrow from foreign financial institutions and governments. The develop countries with less volatile currencies normally issue long term debts to cover the deficit and less developing countries confronting terrorism by government spending through sale of foreign reserves, printing more currency and increasing inflation. Gupta Clements (2004) reached the same conclusion, that the terrorist activities severe impacts on less develop countries than developed from monetary policy perspective. Terrorism has its massive effects on economy and business activities. It effects deleteriously on marketing strategies, buyer demand and market supply effect immensely. Most firms operating in the affected area gets impact from the thrust of government policies to quell terrorism. This kind of wide-spread results predict an escalate attractiveness of terrorism, as part for that group which assume to develop the core of businesses. It is impossible to secure all of the targets of terrorism at the same time. In the number of attacks done by small terrorist groups with least resources the loss was massive. If costs of an attack be measured by the loss which businesses faced, the businesses always paid far great amount than the cost to terrorist group. Hoffman (1998) cited that the cost of the bomb was not more than $400, which was the reason of the loss of $550 millions in the blast of World Trade Centre 1993. The amount which is sending to protect the world from terrorism is many billi on dollars, while the terrorist cost nothing in front of it. This threat of terrorism attacks poses a continuous threat and create atmosphere of risk for the businesses. This risk itself creates extension for treatment of risk in management theories. The majority of management literature theories adopt term à ¢Ã¢â€š ¬Ã‹Å"uncertaintyà ¢Ã¢â€š ¬Ã¢â€ž ¢ as a factor of unpredictable environment which may influence the performance of firms in certain ways. The environment effected by terrorism also has a factor of unpredictability in it. Businesses internationally and locally particularly affected by terrorism because when some thing happen it disrupt the supply chain and business activities in addition to interrupt information flows, and effects on the demand for industrial side as well as consumer side. Every year more than trillion dollars are spent on combating terrorism. This along with billons dollars lost in property damage, loss of human resources and decrease in key industries potential profit. It is a plague on global economy and affects on everyone from entire countries to all the way down to individual. Terrorism in recent years has sparked, increase in fear and demand higher level of security. The cost of terrorism can be broken down into number of areas and come down to direct effects, response costs and negative effects on key industries. For example, Manchester bombing was carried out by IRA in 1996 targeted the city centre infrastructure and economy caused widespread damage. According to the BBC News (2004), over 400 businesses within the half a mile of the blast were affected and 40% of which did not recover. Another example of terrorist attack on businesses is Baltic Exchange bombing 1992, which damaged the Exchange and surrounding buildings and caused  £800 millions worth of damage. The latest terrorist attacks in UK was July 7 London bombing, which had massive effects on UK businesses. According to the LCCI (2005) report, business confidence in London had slumped to the lowest levels not seen since the start of Iraq war. Because, terrorist attacks disrupt supply chain and other business activities. Alexander (2004) says in his book Business Confronts Terrorism, à ¢Ã¢â€š ¬Ã…“terrorismà ¢Ã¢â€š ¬Ã¢â€ž ¢s implication on business merits closer scrutiny given its relation to economic security. Terror metamorphoses business causing business to deal with current threats and craft plans to reduce future challenges. Terrorists weaken society and business through their mani pulation of economic systems componentsà ¢Ã¢â€š ¬?. Terrorism interrupts information flows and effects on the demand form both business and consumer side. This falling demand may have different outcomes which may comprises of losses of customers contracts, customer trust, reduces market share, decline in turnover and profitability and also result business failure. For example according to the LCCA report, UK tourism industry badly effected by July 7 terrorist attacks. The Guardianà ¢Ã¢â€š ¬Ã¢â€ž ¢s research shows that after July 7 Bombing, Londoners themselves who are leaving the centre in the evening rather than the tourists. Within a month after these attacks, it has been estimated that terrorism cost UK tourism industry in excess of  £300 million. According to U.S Department of state (2002) à ¢Ã¢â€š ¬Ã…“terrorist select businesses for attack compare to other targetsà ¢Ã¢â€š ¬?. The most kind of attack is bomb blast, although armed attacks and kidnapping are also some kinds of terrorist attacks. According to Council of Foreign Relations (2002) report, à ¢Ã¢â€š ¬Ã…“the majority of victims in terrorist attack are civilians and the relatively large number of business may not prepare to face these kinds of risksà ¢Ã¢â€š ¬?. Managers and decision makers remain confident about handling unexpected risk. However the scenario has changed as it was at the time of terrorist attack in 9/11. Kunreuther et al (2003) cited that during the days of terrorist attacks in 9/11 a common feeling came into mind of people that it could be me. But with the passage of time this may give way to may be it will not à ¢Ã¢â€š ¬Ã‹Å"meà ¢Ã¢â€š ¬Ã¢â€ž ¢ next time. This kind of behaviour is more common now a day in south Asia. But it is a common thinki ng that it is extremely easy for terrorist that to attack any where in the world. Even in low cost and low tech attacks terrorists achieve to disrupt the world economy. After the September 11 terrorist attacks many UK international organisations have badly affected legally because new laws introduced and they struggle to keep up with new rules and regulations imposed by international community in the effort to prevent further terrorist attacks. Anne Slaughter (2005) cited that new international laws restricted the companies for shipping goods across international borders and requires them to keep proper track of their activities. The anti terrorist laws have made very complicated for organizations to conduct their business activities across the international borders as a result many organisations have restructured theirs companies to allow them to meet demands of international anti terror laws. Another major issue that effect the international organizations is security and they have to invest huge amount of money to improve both internal and external security. External security is most important because terrorist target organizations to achieve thei r targets. Internal security also need to improve to ensure that organisation have financial records, employees records and ensure that employees do not have any criminal backgrounds or involved in terrorist activities in the past. It is vital for all organizations that they protect themselves and their stakeholders from terrorist activities. The international organizations should not underestimate the impact of terrorism because they make billions dollars each year and provide employment millions of people around the world. In this modern era, it is very easy for terrorist to attack international organizations in such a way that they would stop them from operating in an effective manner. It is very difficult to explain, why terrorism has become the major problem for big and international organizations. Modern terrorism is particularly onerous, because of characteristic of its impact. The impact of terrorism on macroeconomic is crucial, customers feel themselves in stress and some kind of continuous fear which definitely effects the spending patterns. Managerial behaviour in macro economy also feels consequences of terrorism. Media have its vital role in ending fear among the society but very often it fails. Many of times, because of the irresponsible reporting it generates scenes of ever present possibility of terrorist act. According to Crenshaw (1990) the new and fastest ways of communication allow people to know about happens in the other part of the world within minutes about any terrorist attack. On the other hand terrorist groups are adopting the latest techniques to communicate with each other and even sometime just for spreading fear with in the specific community to achieve their targets. Czinkota et al (2004) cited that terrorist also using old traditional ways to communi cate which are unable to penetrate. The latest ways of transportation system gives terrorist groups better way to move around. The impact of terrorism can be calculated from a number of ways. According to Czinkota et al (2004) the micro level research is a moderate degree of research. It help to analyze effects of terrorism on specific regions, value chain or cross industry level, but can be determine and examine more specifically than those of macro level. When terrorist events happens if effects businesses direct and indirect way and disrupt the economic process. To make the effects of the terrorist activities stronger terrorist groups try to make businesses their direct targets. Business are more attractive target for those groups as their presence is everywhere and their aftermaths are more deep on society and on the economics. 2.1 Conclusion: Terrorism effects business activates deeply. This threat compel almost every department of business which cause decline in the profit of firm and on the other side the whole economy has to bear the cost of every single act of terrorism. According to LCCI (2005) report, after 9/11 terrorist attacks, majority of organizations fear high risk of terrorist attacks and they have contingency plan in place to deal with uncertainty. As globalization integrates multinational organizations and financial markets, events like terrorism which spurn economic uncertainty have increasingly international consequences. Terrorism causes unpredictable political and economic consequences, infuses the public with fear and prevents the free flow of capital, labour, and free market principles. Because of their disastrous impacts, occurrences of terrorism have serious implications on the performance of international and UK organizational. Immediate responses are felt in financial markets and the effected industry sectors. These sustained reactions can be observed through macroeconomic impacts, economic policy responses and investor confidence. As world move towards more liberal economies and democratic political structures, organizations must have the ability to adapt and respond to terrorist events. In order to do so, decision makers and policy makers need a more complete picture and understanding of the deleterious effects of terrorism on organization. 3. Research Methodology: The main proposed research methodology is secondary research which is based on the critical and comprehensive analysis of the existing published literature related to the specific area of research. Books, published journal articles, published research reports, surveys, organizational records, qualitative research and internet (websites and search engines) will be used to collect secondary sources data. I think these sources will help me to complete my research work. I will use all the above mentioned secondary research methods for my research work and I am highly interested to use the deductive method because it is more logical and authentic way to prove my research. Moreover I will use both quantitative and qualitative techniques to critically analyze my collected data and to reach the conclusion. But in this research work, I will prefer to use more qualitative method of data collection. According to Lincoln and Guba (1985) a qualitative method captures a more complete picture of individual lived experience instead of a narrow perspective of generalizations. The qualitative data provide me an opportunity to study the material of the recent or more distant past to gain the more insights information for methodological and theoretical purposes. 3.1 Advantages of secondary research methodology: This kind of research helps in examining large scale trend. It is easy to accessible so researcher can consume most of its time in critically analysing data rather than collecting it. Sometime primary data collection is not necessary for the research, because of the available secondary data is completely suitable to draw a conclusions and answers of the questions and sufficient for solving problem. The collection of secondary data is far cheaper than the collection of primary data. For the same level of research budget secondary research definitely gives relatively more information than the primary research can give. The time consumption is much less in the collection of data and conducting results in comparison with the primary research. The results obtain from secondary source of information may more precise than the result obtain from the primary data collection. It may not happen all the time but if research is about at large scale. 3.2 Problems of Secondary Research: In secondary research the researches have to be careful about authenticity of secondary resources. Because at the same type of data or idea two different types of department or persons have different type of opinion. Some time material available for research is too old and out dated, so it may difficult for researcher to interpret results. The source of the data and material may not reliable each time, so it may impact the reliability and authenticity of results of the research. Sometimes secondary research has lack of firmness of perspective. If data and material collected from non authentic sources it is difficult to check its biasness and inaccuracies. The published material and statistics often raise more questions than answers. 3.3 Limitations: There are some limitations the data may have and the problems that could arise if these limitations are ignored. The verification of existing data is difficult. Secondary data can be general and vague and sometimes it may cause difficulties in decision making. It is possible that data could be out dated and the sample used to generate the secondary data maybe small. The data publisher company may not be reputable. While keeping in mind those limitations of secondary data, I will use data for my research from reputable academic websites and published literature. 3.4 Conclusion: A use and search of secondary data should be preceding any primary research activity. Secondary data definitely helps to solve and understand the problem and gives valid answers. The process of collecting secondary data for research is far cheaper and quicker in compare with primary data at in some cases it could be more accurate. There is always a need of evaluation about data and its source before using it for research. Where possible it is better to take same data from different sources so the biasness and errors can be double check for the more accurate results. 4. Research Structure and Design: This research consists of six chapters. It begins with chapter 1, which reveals the need, aim and objectives for this research to be attained. Chapter 2 of my research will discuss the methodology, which enables me to fulfil the requirements of this research. Chapter 3 is an extensive and deep interpretation of literature review about terrorism. Chapter 4 of this research will explore the impacts of terrorism on businesses. Chapter 5 of this research evaluates performance and adaptation of suitable strategy by management on different kind of business activities and also scrutinize the different business strategic views which a business can adopt for minimizing the effects of terrorism. Finally chapter 6 of this research is the conclusion and recommendation chapter which will answer all the key questions, aim and objectives of this research seek. 5. Research Implementation Plan: Research Plan Week beginning Date. 23-10-2010 No. Of Weeks 1 2 3 4 5 6 7 8 9 10 Background reading and literature review x x Research design and plan x Choice of methodology x Gathering data x x Data analysis and refine x x Writing up draft x x x Editing final document x x Produce final document x Document passed to supervisor to read x 6. Research Ethics: While carrying out the research, the most important thing to keep in mind and practice is the ethical considerations. And in my research work this is very critical and of prime consideration. I will follow all the ethical considerations and guidelines. As my research work is based on secondary research, so what ever the secondary data I will use to achieve my research objectives, I will follow the all terms and conditions of ethical considerations. Throughout my research I will practice honesty in processing and reporting all the data, this will be my own work and I will not copy the other researcher data or work, I will not be bias in my research while collecting or processing the data. I will try my utmost to avoid the omissions and errors while analysing the data and will keep all the record of the data and their valid sources. I am fully aware that the plagiarism is a serious academic crime, so I will not plagiarise my research. I will quote all the citations and that will be ful ly referenced. Economic Effects of Terrorism in the UK Economic Effects of Terrorism in the UK Terrorism has deep history science the cold war but this issue become most salient after terrorist attacks in September 11 2001. This incident affected the UK and international business community in various ways. On one hand the world business community was affected financially, the other hand it suffers due to legal and security issues. The international business between countries was most seriously affected due to security and safety concerns and legal issue. Especially UK, US and other developed countries were compulsion to protect their territory and people on the cost of business with the rest of the world. Many businesses found themselves floundering financially in the months after the terrorist attack on world Trade Centre, while businesses located in world trade centre lost their personal and business locations. According to U.S department of state (2002) more than 3000 people of different nationalities were killed in the terrorist attacks only in the United States in Septemb er 11, 2001. The attacks were the conspicuous example of terrorism on global level. According to the overview of European commission (2001) this was the one of the major event in the past decades which diversifies the viewpoint and outlook of people around the world. Terrorism affects both the long term and short term perspectives of the businesses around the world. Czinkota (2002) cited that terrorism influenced long term karma of entire industries, for example tourism, retailing and manufacturing industries. In this competitive age, the business environment is changing dramatically. The international business has culminated in a global economy, with diverging cultures. But, there are strong protests against globalization echoing its destabilizing effects from many corners of the world. Terrorism can be seen, in substantial part, as a result of this backlash to the businesses. There are number of definitions of terrorism, in the world of Alexander et al (1979) à ¢Ã¢â€š ¬Ã…“terrorism is a threat or use of enforcement and inclemency to achieve a political goal by means of intimidation fear, and coercionà ¢Ã¢â€š ¬?. In the present world context, the European Union (2001) define the terrorism relevant to international business in the following words. à ¢Ã¢â€š ¬Ã…“Terrorist offences are certain criminal offences set out in a list comprised largely of serious offences against persons and property which, given their nature or context, may seriously damage a country or an international org anisation where committed with the aim of: seriously intimidating a population; or unduly compelling a Government or international organisation to perform or abstain from performing any act; or seriously destabilizing or destroying the fundamental political, constitutional, economic or social structures of a country or an international organisationà ¢Ã¢â€š ¬?. In UK terrorism is not new phenomenon but businesses were highly affected due to September 11, 2001 and July 7, 2005 incident. Although the economic impact on UK businesses has not been detrimental as initially feared but it is very important not to diminish the impact of even small unforeseen costs can have on businesses in particular. However many UK businesses were relived that tangible impact of terrorist attacks had been very small but business confidence is the key and has inevitably been affected in short term. The biggest economic impacts of past twenty years terrorist attacks is the damage to confidence in the UK businesses and people. This study is another attempt to research and investigates the impacts of terrorism on the UK businesses activities and we will also discuss different approaches for reducing and handling the terrorism threats. 1.1 Research Aim: The aim of this research is to analyse and explore the economic effects of terrorism on businesses in the United Kingdom. The second part of this research is to critically analyse and recommend the most appropriate strategies for management to deal with the terrorist threats or scrutinize the different business strategic views to avoid and minimise the impact of terrorism on UK businesses. 1.2 Research Objectives: This research has the following individual objectives: Critically analyse the economic impact of terrorism on UK organizations and the entire economy in UK. Evaluate the managerial performance in organizations, before, during and after the happening of the terrorist attacks and in uncertain environment. 1.3 Research Questions: What are the economic effects of terrorism on business? How to development strategy for managers or adopt a better approaches to deal with above mentioned issues? 2. Literature Review: In this era terrorism is arguably one of the biggest threats to the business around the world. It can take many shapes and forms. The last twenty years have seen a dramatic rise in terrorism. Terrorism did not begin in 21st century after World Trade Centre terrorist attacks on 11 September 2001. The terrorism history is as old as humansà ¢Ã¢â€š ¬Ã¢â€ž ¢ willingness to use violence to affect politics. Europe, United States and other continents have a very long and sad history of terrorist attacks. In past century IRA in UK, ETA in Spain, Brigate Rosse in Itely, Rote Armee Fraktion in Germany, 7 November in Greece are the few worse examples of terrorist groups in Europe. In United States we remember the bombing in Oklahoma City in 1994, World Trade Center bombing in 1993 and 11 September 2001 terrorist attacks. But September 11 2001 attacks have changed the world, as UN Secretary General Kofi Annan has said, à ¢Ã¢â€š ¬Ã…“none of the issue that faced us on 11 September 2001 has beco me less urgentà ¢Ã¢â€š ¬?. Now the terrorism has grown to an unprecedented limit and in multiplicity. As we know that, even terrorist without the use of weapons of mass destruction can kill thousands of people and destroy businesses (Gabriele G.S. Suder 2004). According to Blomberg et al 2004 à ¢Ã¢â€š ¬Ã…“terrorism is associated with a diversion of spending from investment to governmentsà ¢Ã¢â€š ¬Ã¢â€ž ¢ expenditureà ¢Ã¢â€š ¬?. To fund these government expenditures, they borrow from foreign financial institutions and governments. The develop countries with less volatile currencies normally issue long term debts to cover the deficit and less developing countries confronting terrorism by government spending through sale of foreign reserves, printing more currency and increasing inflation. Gupta Clements (2004) reached the same conclusion, that the terrorist activities severe impacts on less develop countries than developed from monetary policy perspective. Terrorism has its massive effects on economy and business activities. It effects deleteriously on marketing strategies, buyer demand and market supply effect immensely. Most firms operating in the affected area gets impact from the thrust of government policies to quell terrorism. This kind of wide-spread results predict an escalate attractiveness of terrorism, as part for that group which assume to develop the core of businesses. It is impossible to secure all of the targets of terrorism at the same time. In the number of attacks done by small terrorist groups with least resources the loss was massive. If costs of an attack be measured by the loss which businesses faced, the businesses always paid far great amount than the cost to terrorist group. Hoffman (1998) cited that the cost of the bomb was not more than $400, which was the reason of the loss of $550 millions in the blast of World Trade Centre 1993. The amount which is sending to protect the world from terrorism is many billi on dollars, while the terrorist cost nothing in front of it. This threat of terrorism attacks poses a continuous threat and create atmosphere of risk for the businesses. This risk itself creates extension for treatment of risk in management theories. The majority of management literature theories adopt term à ¢Ã¢â€š ¬Ã‹Å"uncertaintyà ¢Ã¢â€š ¬Ã¢â€ž ¢ as a factor of unpredictable environment which may influence the performance of firms in certain ways. The environment effected by terrorism also has a factor of unpredictability in it. Businesses internationally and locally particularly affected by terrorism because when some thing happen it disrupt the supply chain and business activities in addition to interrupt information flows, and effects on the demand for industrial side as well as consumer side. Every year more than trillion dollars are spent on combating terrorism. This along with billons dollars lost in property damage, loss of human resources and decrease in key industries potential profit. It is a plague on global economy and affects on everyone from entire countries to all the way down to individual. Terrorism in recent years has sparked, increase in fear and demand higher level of security. The cost of terrorism can be broken down into number of areas and come down to direct effects, response costs and negative effects on key industries. For example, Manchester bombing was carried out by IRA in 1996 targeted the city centre infrastructure and economy caused widespread damage. According to the BBC News (2004), over 400 businesses within the half a mile of the blast were affected and 40% of which did not recover. Another example of terrorist attack on businesses is Baltic Exchange bombing 1992, which damaged the Exchange and surrounding buildings and caused  £800 millions worth of damage. The latest terrorist attacks in UK was July 7 London bombing, which had massive effects on UK businesses. According to the LCCI (2005) report, business confidence in London had slumped to the lowest levels not seen since the start of Iraq war. Because, terrorist attacks disrupt supply chain and other business activities. Alexander (2004) says in his book Business Confronts Terrorism, à ¢Ã¢â€š ¬Ã…“terrorismà ¢Ã¢â€š ¬Ã¢â€ž ¢s implication on business merits closer scrutiny given its relation to economic security. Terror metamorphoses business causing business to deal with current threats and craft plans to reduce future challenges. Terrorists weaken society and business through their mani pulation of economic systems componentsà ¢Ã¢â€š ¬?. Terrorism interrupts information flows and effects on the demand form both business and consumer side. This falling demand may have different outcomes which may comprises of losses of customers contracts, customer trust, reduces market share, decline in turnover and profitability and also result business failure. For example according to the LCCA report, UK tourism industry badly effected by July 7 terrorist attacks. The Guardianà ¢Ã¢â€š ¬Ã¢â€ž ¢s research shows that after July 7 Bombing, Londoners themselves who are leaving the centre in the evening rather than the tourists. Within a month after these attacks, it has been estimated that terrorism cost UK tourism industry in excess of  £300 million. According to U.S Department of state (2002) à ¢Ã¢â€š ¬Ã…“terrorist select businesses for attack compare to other targetsà ¢Ã¢â€š ¬?. The most kind of attack is bomb blast, although armed attacks and kidnapping are also some kinds of terrorist attacks. According to Council of Foreign Relations (2002) report, à ¢Ã¢â€š ¬Ã…“the majority of victims in terrorist attack are civilians and the relatively large number of business may not prepare to face these kinds of risksà ¢Ã¢â€š ¬?. Managers and decision makers remain confident about handling unexpected risk. However the scenario has changed as it was at the time of terrorist attack in 9/11. Kunreuther et al (2003) cited that during the days of terrorist attacks in 9/11 a common feeling came into mind of people that it could be me. But with the passage of time this may give way to may be it will not à ¢Ã¢â€š ¬Ã‹Å"meà ¢Ã¢â€š ¬Ã¢â€ž ¢ next time. This kind of behaviour is more common now a day in south Asia. But it is a common thinki ng that it is extremely easy for terrorist that to attack any where in the world. Even in low cost and low tech attacks terrorists achieve to disrupt the world economy. After the September 11 terrorist attacks many UK international organisations have badly affected legally because new laws introduced and they struggle to keep up with new rules and regulations imposed by international community in the effort to prevent further terrorist attacks. Anne Slaughter (2005) cited that new international laws restricted the companies for shipping goods across international borders and requires them to keep proper track of their activities. The anti terrorist laws have made very complicated for organizations to conduct their business activities across the international borders as a result many organisations have restructured theirs companies to allow them to meet demands of international anti terror laws. Another major issue that effect the international organizations is security and they have to invest huge amount of money to improve both internal and external security. External security is most important because terrorist target organizations to achieve thei r targets. Internal security also need to improve to ensure that organisation have financial records, employees records and ensure that employees do not have any criminal backgrounds or involved in terrorist activities in the past. It is vital for all organizations that they protect themselves and their stakeholders from terrorist activities. The international organizations should not underestimate the impact of terrorism because they make billions dollars each year and provide employment millions of people around the world. In this modern era, it is very easy for terrorist to attack international organizations in such a way that they would stop them from operating in an effective manner. It is very difficult to explain, why terrorism has become the major problem for big and international organizations. Modern terrorism is particularly onerous, because of characteristic of its impact. The impact of terrorism on macroeconomic is crucial, customers feel themselves in stress and some kind of continuous fear which definitely effects the spending patterns. Managerial behaviour in macro economy also feels consequences of terrorism. Media have its vital role in ending fear among the society but very often it fails. Many of times, because of the irresponsible reporting it generates scenes of ever present possibility of terrorist act. According to Crenshaw (1990) the new and fastest ways of communication allow people to know about happens in the other part of the world within minutes about any terrorist attack. On the other hand terrorist groups are adopting the latest techniques to communicate with each other and even sometime just for spreading fear with in the specific community to achieve their targets. Czinkota et al (2004) cited that terrorist also using old traditional ways to communi cate which are unable to penetrate. The latest ways of transportation system gives terrorist groups better way to move around. The impact of terrorism can be calculated from a number of ways. According to Czinkota et al (2004) the micro level research is a moderate degree of research. It help to analyze effects of terrorism on specific regions, value chain or cross industry level, but can be determine and examine more specifically than those of macro level. When terrorist events happens if effects businesses direct and indirect way and disrupt the economic process. To make the effects of the terrorist activities stronger terrorist groups try to make businesses their direct targets. Business are more attractive target for those groups as their presence is everywhere and their aftermaths are more deep on society and on the economics. 2.1 Conclusion: Terrorism effects business activates deeply. This threat compel almost every department of business which cause decline in the profit of firm and on the other side the whole economy has to bear the cost of every single act of terrorism. According to LCCI (2005) report, after 9/11 terrorist attacks, majority of organizations fear high risk of terrorist attacks and they have contingency plan in place to deal with uncertainty. As globalization integrates multinational organizations and financial markets, events like terrorism which spurn economic uncertainty have increasingly international consequences. Terrorism causes unpredictable political and economic consequences, infuses the public with fear and prevents the free flow of capital, labour, and free market principles. Because of their disastrous impacts, occurrences of terrorism have serious implications on the performance of international and UK organizational. Immediate responses are felt in financial markets and the effected industry sectors. These sustained reactions can be observed through macroeconomic impacts, economic policy responses and investor confidence. As world move towards more liberal economies and democratic political structures, organizations must have the ability to adapt and respond to terrorist events. In order to do so, decision makers and policy makers need a more complete picture and understanding of the deleterious effects of terrorism on organization. 3. Research Methodology: The main proposed research methodology is secondary research which is based on the critical and comprehensive analysis of the existing published literature related to the specific area of research. Books, published journal articles, published research reports, surveys, organizational records, qualitative research and internet (websites and search engines) will be used to collect secondary sources data. I think these sources will help me to complete my research work. I will use all the above mentioned secondary research methods for my research work and I am highly interested to use the deductive method because it is more logical and authentic way to prove my research. Moreover I will use both quantitative and qualitative techniques to critically analyze my collected data and to reach the conclusion. But in this research work, I will prefer to use more qualitative method of data collection. According to Lincoln and Guba (1985) a qualitative method captures a more complete picture of individual lived experience instead of a narrow perspective of generalizations. The qualitative data provide me an opportunity to study the material of the recent or more distant past to gain the more insights information for methodological and theoretical purposes. 3.1 Advantages of secondary research methodology: This kind of research helps in examining large scale trend. It is easy to accessible so researcher can consume most of its time in critically analysing data rather than collecting it. Sometime primary data collection is not necessary for the research, because of the available secondary data is completely suitable to draw a conclusions and answers of the questions and sufficient for solving problem. The collection of secondary data is far cheaper than the collection of primary data. For the same level of research budget secondary research definitely gives relatively more information than the primary research can give. The time consumption is much less in the collection of data and conducting results in comparison with the primary research. The results obtain from secondary source of information may more precise than the result obtain from the primary data collection. It may not happen all the time but if research is about at large scale. 3.2 Problems of Secondary Research: In secondary research the researches have to be careful about authenticity of secondary resources. Because at the same type of data or idea two different types of department or persons have different type of opinion. Some time material available for research is too old and out dated, so it may difficult for researcher to interpret results. The source of the data and material may not reliable each time, so it may impact the reliability and authenticity of results of the research. Sometimes secondary research has lack of firmness of perspective. If data and material collected from non authentic sources it is difficult to check its biasness and inaccuracies. The published material and statistics often raise more questions than answers. 3.3 Limitations: There are some limitations the data may have and the problems that could arise if these limitations are ignored. The verification of existing data is difficult. Secondary data can be general and vague and sometimes it may cause difficulties in decision making. It is possible that data could be out dated and the sample used to generate the secondary data maybe small. The data publisher company may not be reputable. While keeping in mind those limitations of secondary data, I will use data for my research from reputable academic websites and published literature. 3.4 Conclusion: A use and search of secondary data should be preceding any primary research activity. Secondary data definitely helps to solve and understand the problem and gives valid answers. The process of collecting secondary data for research is far cheaper and quicker in compare with primary data at in some cases it could be more accurate. There is always a need of evaluation about data and its source before using it for research. Where possible it is better to take same data from different sources so the biasness and errors can be double check for the more accurate results. 4. Research Structure and Design: This research consists of six chapters. It begins with chapter 1, which reveals the need, aim and objectives for this research to be attained. Chapter 2 of my research will discuss the methodology, which enables me to fulfil the requirements of this research. Chapter 3 is an extensive and deep interpretation of literature review about terrorism. Chapter 4 of this research will explore the impacts of terrorism on businesses. Chapter 5 of this research evaluates performance and adaptation of suitable strategy by management on different kind of business activities and also scrutinize the different business strategic views which a business can adopt for minimizing the effects of terrorism. Finally chapter 6 of this research is the conclusion and recommendation chapter which will answer all the key questions, aim and objectives of this research seek. 5. Research Implementation Plan: Research Plan Week beginning Date. 23-10-2010 No. Of Weeks 1 2 3 4 5 6 7 8 9 10 Background reading and literature review x x Research design and plan x Choice of methodology x Gathering data x x Data analysis and refine x x Writing up draft x x x Editing final document x x Produce final document x Document passed to supervisor to read x 6. Research Ethics: While carrying out the research, the most important thing to keep in mind and practice is the ethical considerations. And in my research work this is very critical and of prime consideration. I will follow all the ethical considerations and guidelines. As my research work is based on secondary research, so what ever the secondary data I will use to achieve my research objectives, I will follow the all terms and conditions of ethical considerations. Throughout my research I will practice honesty in processing and reporting all the data, this will be my own work and I will not copy the other researcher data or work, I will not be bias in my research while collecting or processing the data. I will try my utmost to avoid the omissions and errors while analysing the data and will keep all the record of the data and their valid sources. I am fully aware that the plagiarism is a serious academic crime, so I will not plagiarise my research. I will quote all the citations and that will be ful ly referenced.

Effective Leadership Essay

Leaders in the workplace play a unique and vital role in the success or failure of a business. Their responsibilities are great in number and are continuously evolving to meet the growing needs of the employees and the communities they serve. In order to be effective, leaders must constantly strive to create a work environment conducive for team unity and collaboration (Llopis, 2012). Good leaders pride themselves on being visionaries with the ability to lead by example. They have a charismatic gift to inspire and encourage others to work together to meet a common goal (Bateman and Snell, 2009). Contrary to what some believe, leadership is a shared vision. It involves accepting feedback from all involved and the competence to put all the pieces together so that they align with the vision. It is believed that motivation is one of the most powerful emotions that employees bring to the table in the workplace (Heathfiled, 2012). Directly associated with that is the leaders role in cultivating that motivation through joint vision and communication. Good leaders must therefore be great motivators. Some would have individuals to believe that emotions have absolutely no place in the workplace. However, others are inclined to believe that removing emotions from the workplace is a huge mistake. For example, if a work environment is plagued by fear and anxiety, leaders must counteract those emotions with more powerful emotions like faith and optimism. Here is where the leader’s motivational skills must be put into action. Motivation is often referred to as a force that energizes or moves persons to action (Bateman and Snell, 2009). Nehemiah 2:16-18 (NIV) tells a story of how others were moved to action by motivation. Nehemiah challenged Jewish leaders by providing a detailed description of the problem at hand. He painted a vivid picture of how buildings and walls had fallen down and how the gates had been burned. He went on to share with them how outsiders now viewed them as a defeated, fallen and defenseless nation. The people were quite aware of the destruction that had taken place; but Nehemiah’s reminder served as motivation to get them up and moving. Additionally, he motivated them by providing them with a goal to works towards. The city had been destroyed because of sin. Restoration of the wall would be an indication of restoration of favor. Nehemiah had excellent motivational skills – he was honest about the negative and positive effects of the destruction, while giving them a reason to believe that they couldrecover from the destruction. Leaders have the awesome task of keeping employees motivated effectively and efficiently so that productivity does not suffer. One of the most successful ways of doing so is encouraging teamwork among employees. Ecclesiastes 4: 9-12, â€Å"Two are better than one, because they have a good reward for their labor. For if they fall, one will lift up his companion. But woe to him who is alone when he falls, for he has no one to help him up. Again, if two lie down together, they will keep warm; but how can one be warm alone? Though one may be overpowered by another, two can withstand him. And a threefold cord is not quickly broken† (NIV). This passage is a clear indication that teamwork is imperative for organizational structure It increases productivity, quality, cost savings, speed, change, and innovation (Bateman & Snell, 2009). Teamwork allows each member to reap the benefits of contributing to a goal; however leaders must be aware of the fact that conflict will arise. It is during these times that leaders must take a Christian worldview approach and seek guidance from a higher being to effectively resolve the conflict. Additionally, leaders must be able to communicate effectively when dealing with conflict as it relates to teamwork or any other situation in the workplace. Communication improves relationships and creates an effective environment that further promotes teamwork. Great leaders take the time to communicate with everyone directly and indirectly involved with the business because they are the ones who ultimately influence outcomes and decisions (Llopis, 2012). Knowing the essentials of how and when to communicate is of utmost importance. Leaders must acknowledge that communication is a two-way conversation – there is sender and a receiver and all parties involved are playing the roles of both the sender and receiver (Bateman and Snell 2009). Being a great communicator builds trust among employees. Great leaders strive to master the art of being a sender and receiver and must be willing to give the same respect he would like to receive. Ephesians 6:5-10 gives an account on how different entities should treat each other regardless of their roles. Christian bosses, company presidents, managers, crew chiefs, government officials and supervisors are to have the same attitude. The secular work of a supervisor, just like the work of his or her employee, is to be accomplished from a completely different perspective than the world understands. Matthew 7:12 sums up what daily life should consist of and that is â€Å"do for others what you would like them to do for you† (NIV). A good leader lives by this passage and consistently promotes success and sustainability. Leadership success begins and ends with vision and is heavily dependent on the leader’s ability to effectively motivate. References Bateman, T.S., & Senll, S.A. (2009). (pp. 461, 470, 508, 564) Management: Learning and Collaborating in the Competitive World (8th ed.). Chicago, IL: Irwin. Heathfiled, S. (2012). Management Matters Most in Motivation. Retrieved from About: http://humanresources.about.com/od/motivationsuccess/a/Management-Matters-Most-In- Motivation.htm Llopis, G. (2012, July). Effective Managers. Retrieved from Forbes: http://www.forbes.com/sites/glennllopis/2012/07/10/effective-managers-earn-trust-quickly-by- doing-5-things-well/ The Holy Bible (NIV)

The Unknown Details About Dissertation Editors That People are not Aware Of

The Unknown Details About Dissertation Editors That People are not Aware Of You as a pupil typically are not able to manage all the scholastic workload because of various elements, maybe that you don't have sufficient expertise about the job that should be carried out by college essay writing services or maybe you have inadequate time to fill out the job to your preferred taste. For all of us, it is extremely important to meet your expectations. If somehow, students achieve to finish the intricate task, then they need an expert to proofread their papers and do all the important modifications to enhance the quality. As a consequence, such students start looking for the best essay help to make certain that their project is going to be produced at the maximal level in accord with all academic standards. Vital Pieces of Dissertation Editors Dissertation EditorsEditors for students can be difficult to find. They nowadays are not only associated with academic activities. Often th ey are able to write a dissertation on topics that do not fetch them good grades. In USA, they need to participate in different social activities. Dissertation Editing is a simple requirement for a great many research scholars. References list is formulated based on the specific reference style which has been recommended by the university. Order top-notch essay at this time and certified specialists will do their very best to supply you with higher quality at fair price. Then quit surfing different websites on the web, for the best services to assist you, as Essay CD is here in order to fulfil your requirements. Our clients return to us over and over again as a result of simple fact they know we are the best online, and they're satisfied to place their name to their referrals for that exact same component. To aid you, services are readily available to improve your writing. The customer will know the purchase price of the order till they place it and allow it to be definite. It's possible to check the feedback of our editors to find that prior customers have been highly pleased with their performance. Dissertation writing is an ambitious job and time consuming also. It's very reasonable to anticipate an estimate of the price of editing your dissertation. Writing a winning quality dissertation isn't an easy issue to achieve. APA dissertation editing may also help you save money. Want to Know More About Dissertation Editors? Dissertation is among the most difficult from of writing which demands a whole lot of research and time. A dissertation is usually divided into various chapters t hat assist in the analysis and comprehension of the subject of the dissertation. For the majority of us, the dissertation is an intimidating expertise in 1 way or another. For instance, a technical dissertation will require the use of technical words that are many times utilised in that area. As a way to write a productive dissertation, you've got to select suitable research procedures. Abstract is the brief description of the total dissertation. Topic selection is the main job of dissertation writing. Let's get going on boosting your dissertation today! You ought to take expert's advice to be able to decide on a suitable research approach. On the flip side, in secondary research, you've got to collect information from authentic resources like journal and press release. You've got to conduct research as a way to gather information from the prior research. The actual men and women highly praise our essay help site.

Essay about Walt Disney Case Study - 1867 Words

The Walt Disney Company The Entertainment King I. Executive Summary After analyzing the Walt Disney case, we found that the root issues include the need to increase revenue to reach the 20% growth target set by upper management and to expand into new markets and/or industries. We used a Porter’s Five Forces analysis to develop our alternatives (Please See Exhibit A for further information). The alternatives that we proposed were to expand globally and enter the Internet and cable distribution industry. We analyzed these alternatives against a set of selected criteria including: the time to implement, how the alternatives fit with Disney’s corporate culture and corporate synergy, if the alternative would provide a competitive†¦show more content†¦We believe that Disney’s root issue at hand is its declining growth and revenue due to loss of market share, and that one of the ways it can deal with this problem is moving into the cable provider realm by acquiring or merging with one of the large cable providers of today. How ever, since Disney would most likely merge with one of the largest cable providers, this would affect the time it would take to implement the merger and integrate itself with the other company. Since Disney already owns several television networks such as The Disney Channel, ABC, and ESPN, it has the means and know-how to compete in the cable industry, so there are many overlapping interests with Disney and a large cable provider. This would prove to be very helpful on the account that Disney actually merges with a provider because it should not be as hard to transfer their competencies from one to another. The time it takes to fully implement the merger should be shortened by the fact that these competencies exist, and it should also help to make the integration of the cable provider with Disney easier. We can use the time to implement and integrate as a criterion of how successful the merger would be by comparing it to other known mergers that have taken place recentlyShow Mor eRelatedWalt Disney Case Study2980 Words   |  12 PagesJanuary 2013 I – Executive Summary The Walt Disney Company is one of the largest media and entertainment corporations in the world. Disney is able to create sustainable profits due to its heterogeneity, inimitability, co-specialization and immense foresight. During the late twentieth century, Michael Eisner founded and gave a rebirth to Walt Disney Company. Eisner revitalize TV and movies, Themes Park and new businesses. Eisners takeover for fifteen years had climbed the revenuesRead MoreCase Study : Walt Disney Company1789 Words   |  8 Pages1 – Chapter One 1.1 – Case Study Background: The Walt Disney Company was founded on October 16, 1923 when Mr.Walt Disney signed a contract with Mr. Winkler for producing a series of Alice Comedy. Then the company never stop. Its first cartoon Trolley Troubles was released in 1927 whereas, very first â€Å"Mickey Mouse† cartoon was released in 1928 and it was also the first appearance of â€Å"Minnie Mouseon† on screen. Moreover, the first full-color cartoon Flowers and Trees was released in 1932 whichRead MoreCase Study : Walt Disney Company5336 Words   |  22 Pages1 – Chapter One 1.1 – Case Study Background: The Walt Disney Company was founded on October 16, 1923 when Mr. Walt Disney signed a contract with Mr. Winkler for producing a series of Alice Comedy. Then the company never stop. 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The step from making short cartoons to doingRead MoreConflict at Walt Disney- Case Study1170 Words   |  5 PagesConflict at Walt Disney Eve Stapler Webster University Conflict at Walt Disney Within every organization there is some type of conflict, whether the conflict is personal, organizational or emotional. But the key is to manage the conflict so as to not hinder the profitability, functionality or public image of the company so that it is viable competitively. In the case of the Walt Disney Company, although the company had conflict within the organization, this did not hinder its competitivenessRead MoreA Strategic Management Case Study on the Walt Disney Company8543 Words   |  35 PagesA Strategic Management Case Study on Erika Erro | Mimilanie M. Mabanta | Javi Mendezona | Clara Poblador Tour 198 Prof. Emma Lina F. Lopez Introduction Company Background When brothers Walt and Roy Disney moved to Los Angeles in 1923, they went there to sell their cartoons and animated shorts. One could only  dream  that their name would one day be synonymous with entertainment worldwide. But then again, that is how The Walt Disney Company has made their fortunes over the last severalRead MoreEssay on The Walt Disney Company Case Study2812 Words   |  12 PagesBUSMRH 4490 Strategic Management Case 2 The Walt Disney Company: The Entertainment King Kaitlyn Kisiday Alex Maicks Chelsea Parker Jonathan Russ Ryan Terek 1.) Why has Disney been successful for so long? Disney has sustained prolonged success for a variety of reasons. One source of success was the way Walt and Roy Disney decided to manage the company internally when the organization was founded in 1923. Disney emphasized teamwork, communication, and cooperation in the workplaceRead MoreThe Walt Disney Companys Yen Financing, Harvard Case Study1352 Words   |  6 Pagesnext six months, meaning that it becomes more expensive to buy  ¥ and more expensive to buy the foreign import. Risk can work both ways: if the ex-rate is 125 ¥ / $ (dollar appreciates, Yen depreciates) in 6 months, the cost is only $800. In this case, the dollar got stronger, so it became cheaper to buy Yen, and the foreign product (priced in a fixed amount of Yen) became cheaper. Ex-rate volatility (currency risk) means the cost of parts could range between $800-1250 over the next 6 months forRead MoreInternational Business Case Study: Problems and Key Issues of the Joint Venture Between Walt Disney Co and Hong Kong Special Administrative Region686 Words   |  3 Pagesof the Case The joint venture between the Walt Disney Co and Hong Kong Special Administrative Region (HKSAR) government (Landreth 2005) is at a risk and the magic of Disney is no more working in Hong Kong due to several reasons. The purpose of writing this paper is to analyze the case and find out why the park which was perceived to be a profitable market is suffering from losses since its opening in September 2005. 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