Thursday, December 26, 2019

Amazons Strategic Positioning - Free Essay Example

Sample details Pages: 17 Words: 5109 Downloads: 10 Date added: 2017/06/26 Category Marketing Essay Type Case study Did you like this example? Executive Summary This report reviews Amazons strategic positioning in the E-commerce segment in the recent period and how it (the company) has been able to maintain competitive advantage by constantly evolving itself in the dynamic market. It also reflects how Amazon can continue to grow in constant endeavour to achieve its mission and vision of being earths most customer centric company (Analysis of this statement would help the board understand how Amazon measures up and h they as a board see the progress of the company. The recent financial crisis has weakened the retail sector but Amazon has succeeded in maintaining growth in its 3rd quarter of 2009. Don’t waste time! Our writers will create an original "Amazons Strategic Positioning" essay for you Create order The result of the financial analysis indicates that Amazon is in a good financial position, though these strong figures are partly based on the good credit terms obtained from Amazons suppliers (so a risk? How great etc). We further suggest strategies for the short, medium and long term which focuses on consolidating operations, market research analysis (for what?) and foray (drive/push/entre/test) into the emerging markets to evolve as global leader in its niche business area respectively (explain more [email  protected]/* */ niche). The report concludes by exploring Amazons future plans in terms of products, markets and strategy. Directors Reports Finance Amazon has recorded total revenue of $15billion in first three quarters of 2009, which is 20% higher than total revenue during the same period in 2008. In 2009 (why, with consumer demand down has the company opened up new markets, taken market share from competitors, increased its penetration of the existing markets etc?, the gross profit has increased from 22.6% in 2008 to 23.7%. Our increased sales and operational efficiency have helped us to maintain the profit margin (so savings of sale or margin contribution?) although there is an increase in operational costs (margins then were higher, diluted by increased operating costs.? Our operating margin has been stable at 4.4% over the past years showing a consistency in operations. (So the increased sales did not lead to improved operating income?) Based on our previous years performance and experience, we project total revenue of $8.5billion in the last quarter of 2009. This will lead to total revenue of $23.5 billion for 2009, w hich will be an increase of 22.6% from year 2008. The steady increase in yearly revenue primarily reflects our market competitiveness. Our projection in the increase of sales by 22.6% in 2009 is based on the global economic slowdown and changes in customer purchasing preferences. Meanwhile, the basis of our estimate for the current quarter is based on our previous trend wherein sales increased during the Christmas season and low price offering. Based on our previous sales records, our last quarter sales were 35% to 37% of total revenue. The inventory turnover has improved (explain 11.5 from 13 is a decrease?) by 12% in trailing twelve months of September 2009 to 11.5 from 13.0 in 2006 and 2007. The asset turnover has increased slightly in trailing twelve months of September 2009 to 2.79 from 2.31 and 2.29 in 2008 and 2007. This reflects our improved efficiency in inventory and asset management. Our current ratio and acid test ratio have improved marginally to 1.40 and 1.05 fro m 1.30 and 1.00 respectively in 2008.These ratios augment confidence of our investors and suppliers on us in this global credit crunch where cash or liquidity is considered vital for continuing operation. We have been able to lower our debts through regular repayments. As at 30th September 2009, our debt to equity ratio is 0.03. This is a considerable improvement from debt to equity ratio of 0.18 and 1.09 in 2008 and 2007 respectively. Our account payable days were 62 and 57 for 2008 and 2007 respectively. Our account receivables day of 17 days is low because quick settlement of customer payments made through credit/debit cards. Our principal source of fund is generated from operations and cash/cash equivalent received from customers, suppliers and sellers. The cash/cash equivalent and marketable securities were $3.7billion and $3.1billion in 2008 and 2007. In terms of market performance, our share price drop to $43.20 in October 2009 and subsequently went up steadily to $1 34.03 as at 25th November 2009. The share value has increased by more than $90 after the announcement of our 3rd quarter results. The appreciation of share prices reflects share holders trust on Amazon, and it will further help us in Zappos.com acquisition. Sales and Marketing Sales Amazons sales are generated from media, electronics, other general merchandise and non-retail activities such as other seller sites, co-branded credit card agreements and miscellaneous marketing and promotional activities. Marketing We direct customers to our websites through a number of targeted online marketing channels such as our Associates program, sponsored search, portal advertising, e-mail campaigns and other initiatives. The marketing expenses are largely variable based on growth and changes in ex. rates. Our marketing expenses increased from $344 million to $482million in 2007 and 2008 respectively due to increased spending in variable online marketing channels, such as our Associates program and sponsored search programs. By September 2009, we had incurred $406million on marketing, a 30% increase from $313million in September 2008. (Is the 40% year of year run rate slowing?) The recent launch of Amazon Mobile Payment in October 2009 has increased the choices of mode of payment for the customers and it will be the stepping stone for the company to enter markets where mobile penetration is high but banking infrastructure is developing. (How reliable is the method?) In order to boost sales, th e company strategy needs to be aligned with the growth prospects in E Commerce in emerging markets. Tapping booming market segments in on line gaming and Travel sector in India and on line gaming in China seems a viable option in this direction. (What research statistics/data do we have to support this market entre?) We will continue to rely on customer loyalty and innovative advertising as well as other platforms available to us. (To do what?) Operations We create value for our customers by offering satisfactory (or superior) services. This is done by managing retail operations with efficient use of technology. Operational efficiency is a basis of strength for Amazon and supports the management to maintain our competitive advantage and enhance corporate performance. (Will we become more efficient?) Our principal sources of liquidity are cash flows generated from operations. In that regard, one way of reducing operational and performance variation, is to implement a uniform production platform increasing process efficiency. (Is this part of our planned strategy?) As can be gleaned from our third quarter report for fiscal 2009, compared to the same period in the prior year, operating expenses have increased. This is due in part to a settlement to Toysrus LLC for $51million and increase in other costs. There are a number of pending lawsuits against Amazon that must be factored in our decisions. (Is operation efficiencies are to be improved then reducing law suites is a way forward?) As our operations are segmented between North America and International, there are a number of issues we are uncertain about, but actual results could differ. These concerns are: fluctuations in foreign exchange rates, (do we hedge as a practice?) changes in global economic conditions and consumer spending, world events, the rate of growth of the Internet and online commerce. Information Systems Future Development Amazon will continue to improve the IT services related the e-commerce and supply chain management. The areas of future development include: Amazon Elastic Compute Cloud Amazon Elastic Compute Cloud (Amazon EC2) is a web service that provides resizable compute capacity in the cloud. It is designed to make web-scale computing easier for developers. Amazon S3 Storage Amazon S3 provides a simple web services interface that can be used to store and retrieve any amount of data, at any time, from anywhere on the web. It gives any developer access to the same highly scalable, reliable, fast, inexpensive data storage infrastructure that Amazon uses to run its own global network of web sites. The service aims to maximize benefits of scale and to pass those benefits on to developers. Amazon Cloud Front Amazon Cloud Front is a web service for content delivery. It integrates with other Amazon Web Services to give developers and businesses an easy way to distribute content to end users with low latency, high data transfer speeds, and no commitments. Amazon Fulfilment Web Service Amazon Fulfilment Web Service (Amazon FWS) allows merchants to access Amazons world-class fulfilment capabilities through a simple web services interface. Merchants can programmatically send order information to Amazon with instructions to physically fulfil customer orders on their behalf. Amazon continues to develop the IT systems related to the support of the Kindle e-book reader. In particular the online Kindle Book Store and the related Whisper net' wireless distribution network. Kindle issues An Overview Amazon Kindle is a software and hardware platform developed by Amazon.com subsidiary Lab126 for rendering and displaying e-books and other digital media. Three hardware devices, known as Kindle, Kindle 2, and Kindle DX (Figure 1) support this platform, as does an iPhone application called Kindle for iPhone. The Kindle hardware devices use E Ink brand electronic paper displays, and are able to download content over Amazon Whispernet using the Sprint EVDO in the USA or, for newer Kindle 2 devices, ATTs network internationally. Kindle Sales and Earnings We are yet to make profit on Kindle. The Kindle hardware is based on a cut-down Linux/PC configuration. As you can see from Figure 2.4 the teardown cost for the Kindle 2 have been estimated to be $185 per unit. This represents approximately 50% of the present sale cost of $400. Therefore, the margin per Kindle must be slim once development, manufacture, shipping and promotions costs have been factored into the unit price. The Future of E-Book Readers: The Potential Market A number of analysts have predicted a large market for e-book readers. Forrester research has predicted the potential market (Figure 2.5) based on the sales of similar products, such as IPods and mobile phones. If Forresters predictions are correct then there is a large potential market. Threats to Kindle The main factor in determining if Kindle will be a successful is content. There are number of free books that have elapsed copyrights, which are available for the Kindle and other e-book readers. However, the main source of revenue for the e-book market is predicted not to be books but newspapers, magazines and journals. These limited life documents would be transmitted directly to the reader via the mobile phone network: the Kindle DX, Sonys e-reader and Barns Nobles Nook have this functionality. (Googles recent announcement on e-books? Do newspapers and similar already offer some for of e-news through their web portals?) Sony has been creating alliances with a number of publishers to produce content for its e-reader. The highest profile publisher is Rupert Murdochs News Corp that prints large number of leading newspapers and magazines. This is the main threat to the success of Kindle. This situation has similarities to the format battle between HD DVD and Blue Ray DVD formats . Sony won this format battle by forming alliances with the Hollywood studios. These studios agreed to produce content solely for the Blue Ray format. Human Resources and Administration For 2008 fiscal year, our payroll and administration expenses were $279million compared to $235 million in 2007 and the increase was primarily due to increase in staff recruitments, payroll related expenses and professional services fees. In reference to our employees, staff complement increased by 22%, from 17,000 in 2007 to 20,700 in 2008. At present, there have been no redundancy exercises made in the company and we are focusing on retaining employees in order for them to remain engaged and loyal to the business in the long-term. (Have we increased manning in 9m to 30/09/09, over and above seasonal increases?) As the companys main revenue comes from the 4th quarter, we expect to increase the volume of temporary employees in order to meet customers orders. We will continue to supplement all our teams with additional staffing and will continue to add some capacity particularly in the international region to prepare ourselves to serve our customers during our busiest time of the year. In 2008, Amazon UK was accused of treating staff harshly. However, this has been hyped by the media and till date there is no accusation of breaching the law. (There is a difference between breaching the law and treating staff harshly are we sure of our position?) We greatly appreciate and reward our employees with a basic wage complemented by performance related pay. Meanwhile, employees are represented by a democratically elected employee forum who meets regularly with senior management of which any matters will be discussed accordingly. (Is this window dressing or does the method work, how is it implemented globally?) Business Development We recently acquired the online shoe retail shop, Zappos.com for the sum of $928million and $40million during the year for acquisition of Yieldex, Lexcycle Inc., Booktour, Foodista, Talk Market Inc, and Snap Tell Inc. These acquisitions will help us maintain the sales growth rate in this current crisis. (Has there been analysis to support these statements about growth rates?) Our international activities are significant to our revenues and profits, and we plan to further expand internationally in the long term due to the recent economic situation. Our international expansion will be focused on the BRIC countries specifically China and India as the markets are still untapped and will be good for us. Based on the little experience in the future market segments, proper research and risk analysis have to be done to enhance our? Legal Amazon has always ensured that we comply with government and other regulatory authority policies in the different countries that we operate in. We are involved in claims, proceedings and litigation dating back from 2001 to date. We currently have fifteen patent infringement cases against us pending in various courts with ten claims filed in 2009. We were acquitted in our lawsuits with Actus and Cordance in September 2009. (Is the board worried about this level of litigation?) In order to reduce the volume of lawsuits against us, we have decided to: Conduct a proper research of existing technological platforms before embarking on the usage and deployment of the platform. Where the already platform already exists, we will seek permission or leave of the rights and pay fees for the usage. We will also embark on developing our own technological platforms. We are also involved in the issues relating to the avoidance of sales tax in some states in the country. These states include New York, North Carolina and Hawaii. New York Legislative has passed a bill compelling Amazon to pay sales tax and other states are hoping to follow soon. Financial impact analysis of this legislation? Are disputed sales taxes reserved for in the B/S? Supply Chain Management In Amazon, the inventory policies drive the operating expenses and working capital requirements. Items are shipped as and when customer orders are received through the central servers. Our ability to meet customers demands with precision timing and accuracy has been a source of competitive advantage and customer loyalty. We currently have fulfilment centres (how many and located where?) for stocking the merchandise. We aim to improve our delivery time to gain more advantage, loyalty and long term alliances by introducing the cross docking concept where we identify suppliers who can readily agree to facilitate unique packaging facility at their locations. The financial burden of this arrangement will be borne by Amazon but the cost of packaging will be offset by the savings generated from reducing the inventory. What is the model for this? Is there an upside supplier cost, now or at some time in future? Section 4.1.1 bullet 1 lists $20m saving or 1.5% We hope to use this to re duce the inventory holding costs, shipping costs, operational costs as well the working capital requirement for the supply chain function. Strategic Analysis Internal and External Analysis Amazons brand has established high levels of recognition around the world, making it the first port-of-call for much of the rapidly expanding internet retailing consumer base, with the reputation of offering a wide choice of products and services. To this end, detailed analysis of the following will be undertaken: Amazons internal capabilities and resources (see appendix SWOT Analysis and VRINE Analysis) Weighing our competitive advantage (see appendix External Analysis (Porters Five Forces). To expand in China (see appendix E-Commerce in China and PESTLE Analysis) Strategic Position Amazon has been able to maintain sustainable competitive advantage based on three operational strategies. These are low cost-leadership, customer differentiation and focus strategies. Low cost-leadership is pursued by Amazon by differentiating itself primarily on the basis of price. We believe that offering low prices to our customers is fundamental to our future success. We seek to partially mitigate the costs of lowering prices over time through achieving higher sales volumes, negotiating better terms with our suppliers, and achieving better operating efficiencies. Amazon makes sure that it offers the same quality products as other companies at a considerably cheaper price. Analysis of competitors? Are there services we (can/could) offer using our infrastructure that could command a premium price? With our customer differentiation strategy, Amazon provides current and prospective customers with differentiation through design, quality or convenience by selecting a strategy t hat is different among the competitors. The focus strategy takes one of the two other strategies and applies it to a niche within the market Based on this, Amazon focuses on outstanding customer service as a niche but not the whole market because each niche has its own demand and requirement. Expand? Recommended Strategies Survival through Operational Efficiency The recent financial crisis and Amazons financial performance in recent years has shown that we have to optimally utilize organisational resources hence to be in better position to handle crisis situation and hence we propose the following: Reduce Operational Costs Sales are high but the costs associated with the sales have ranged between 75% -80% of sales in recent years. In order to be more efficient in our operations, we propose to cut the expenditure by 2 % in the following: Reducing cost in inventory by usage of cross docking by which we project to save $20million i.e. 1.5 % of the fulfilment? cost by the next fiscal. Research Development cost projected to be cut by $50million which 5 % of the present budget. How? Marketing budget projected to be slashed by $10 million. Impact? Put a hold on diversification and acquisitions. A review of existing alliances, diversifications and acquisitions should be done to determine the non-profitable business and decisions should be made about the appropriate strategy to be considered. The review has not been done before? Legal Dispute Settlement The sum of $500million has been set aside to settle the lawsuits pending the court judgements. Analysis needed why we have so many law suites, is this now part of our culture and that we ignore risks in the belief we are smart etc? Improve Kindle Sales It is clear that the e-reader market is embryonic and has great potential. For the Kindle to survive, Amazon has to adopt a similar strategy to that of Sony, which is to develop alliances with content providers. Googles recent announcement? We can consider cutting Kindle prices based on increase in sales in the future leading to economies of scale which can help boost our profit margin. (What is the model for this?) If this can not be achieved, in the long-term, should consider selling the Kindle design and patents rights to a third party who has a greater expertise in hardware development. F/A? Short Term (1-3 years) Expansion to China Objectives To attain a market share of 20-30% of Chinese internet retailing sector. How? Target Company for acquisitions Sohu.com Inc Sohu is a China based internet media company providing a network of web-properties and community based web 2.0 products which offer an array of choices regarding information, entertainment and communication to the Sohu user community. Sohus products and services are advertising, aggregated content, e-commerce, communication and community tools, internet access and services, search engines, sponsored search, web-properties, wireless communication, on-line games. (Might this company be in the process of dressing up their performance to attract a buyer?) Price of Acquisitions The ultimate purchase price will depend on a number of specific factors, including the targets current market value, its intrinsic value, and the value to be gained from any potential synergies between the target and buyer. Approximate costs of acquisitions can vary from $700million. To what? Potential Obstacles and Challenges Small number of credit card users 75 million credit cards in circulation by 2007. Payment systems are now safer no longer a technical problem, but a problem of customer confidence. E-commerce logistics: Size and vast distances in China delivery for most companies limited to major metropolitan areas using couriers Cost as a % of sale price compare with other locations? High delivery cost due to the small scale of some logistics enterprises Over 70% of all purchases in the B2C market are paid cash-on-delivery. Over 70% of all purchases in the B2C market are paid cash-on-delivery Duplication of point 4? Buying online is a dramatic change from conventional shopping practices: Consumers in China still prefer to look over the goods, determine their quality, and then, if satisfied, pay in cash. Probably a model which existed in west in earlier years when discretionary spending was limited? On-line commerce, in comparison, is an alien experience that only increases risk. Kindle clone $190. Define more clearly? Risk Factors Intense competition. Expansion into new products, services, technologies and geographic regions are subjects to additional business, legal, financial and competitive risks. Unsuccessful in efforts to expand into international market segments. Foreign exchange risk. Hedge? Payments related risks. Credit cards? SWOT Analysis STRENGTHS Largest e-retailer with lions share of the e-commerce market. Strong brand position and brand associations. Customer Relationship Management (CRM) and Information Technology (IT) support Amazons business strategy. Amazon is a huge global brand. It is recognisable for two main reasons. It was one of the original dotcoms, and over the last decade it has developed a customer base of around 30 million people. Highly effective advertising and marketing. Effective use of technology and partnerships. Recent positive cash flow. WEAKNESSES Loss of focus on core products. Weak economy which could lead to low sales. High advertising and marketing costs due to no brick-and-mortar presence. OPPORTUNITIES Selling of developed technologies. Extension of brands into new areas. International expansion specifically India and China and other emerging markets. Opportunities with non-competitive businesses for mutual benefit. THREATS Unexpected changes in regulatory requirements both in the U.S. and abroad. Legal Issues in patent infringement: 15 court cases. International issues export and import restrictions, tariffs and other trade barriers, fluctuations in currency rates, political instability, longer payment cycles, adverse tax consequences External Analysis Porters Five Forces Threat of new entrant High The cost involved in setting up an online bookstore is low and this poses a threat. With the right resources and knowledge, a new entrant could set up a similar website to compete with Amazon. Low Amazons technology platform and knowledge might make it difficult for entrants to come in and compete as the costs and experience involved might be high. Brand Recognition and customer loyalty may also make it difficult for a new entrant to compete Bargaining power of supplier High Bargaining power of supplier is relatively high in their electronic business sector. Amazons Low Cost strategy has made it difficult for it to buy electronic product directly from the main distributors such as Sony, Panasonic and Pioneer. Medium However, bargaining power of supplier in Amazons online book sector is relatively medium. Their power is medium as Amazon.com is dependent on Publishers for its supply. Threat of product substitute High Threat of product substitute is very high in Amazon.com online business. Physical bookstores have an established brand name in their brick-and-mortar business and customers might not be comfortable buying books online. A competitor that might be able to offer better services and prices might be able to substitute Amazons products. However, Amazons One-click shopping might be able to reduce the threat. Industry rivalry High As the result of huge and wide presence of competitors for the book business, Amazon.com faces high industry rivalry in their online book business. Established bookstores have the advantage of a larger and well established customer base, brand recognition, awareness and a wider selection of books. The entry of established bookstore into the online arena has further increase industry rivalry in this sector. Amazon.com also faces intense rivalry from their online music sector. For example, Amazons entry into the online music market has caused CD-Now to take steps in reduce Amazons threat in the sector. CD-Now has more advantage because they are well established and has more brand recognition in comparison to Amazon.com. E-Commerce In China Reason for expansion One of the fastest developing countries in the world. Leading and most reliable emerging market. World largest foreign direct investment (FDI) destination country since 2002. Market realization from potentiality due to recent well-ordered economy development, personnel disposable income increasing, infrastructure and transportation investment, rural economy development, speeding-up of foreign invested retailers in China. Market overview Transaction volumes of online retail in the country reached $18.8 billion in 2008, up 129% from 2007 according to iResearch, a Chinese internet research company. The market is predicted to reach almost $35 billion by the end of 2009 and offers huge potential. The number of online shoppers rose against the economic crisis by nearly 14 million from 74 million to 87.88 million. One out of four Chinese Internet users shops online, while two out of three Internet users in countries with high Internet Penetration like Europe, America and Korea are online shoppers. Chinas potential of online shopping is yet to be released. Additionally, the government has attached great importance to e-commerces stimulus to the economy, and has released a series of policies to regularize and guide e-commerce development. Industry e-commerce also grew vigorously, with more e-commerce platforms emerging and more and more farsighted traditional enterprises setting out for e-commerce. Against the general background, e-commerce is expected to maintain fast growth in the coming years. PESTEL Analysis for China Political Single party leadership with consistent policies. Unique socio economic political model centrally planned economy to a more market-oriented version with a rapidly growing private sector. Good relations with the US, Free Trade agreement with ASEAN (by 2010). Has been able to maintain a stable growth rate of 7-8% in the last few years. Inflation is between 4-5 %. Government focus on equitable growth thru liberalization policies by building good relationship with other countries which lead to a growth in its trade. Have good road, railway, air and shipping links to support the business activities. Economic Maintained strong economic growth over the years, 2003-2008, average GDP growth of 10.3% due to capital inflows, low real-interest rates and free market economy. Unemployment rate is high due to rural-urban shift. Transition shift from agricultural to industrialized country of which the service sector provides secure wages. The reformed IT and telecom policies and focused initiatives for the development of core technologies showcase Chinese plans to build its domestic prowess. By 2020, China will invest around 2.5% of its GDP in RD. China also wants to raise the contribution of technology to economic growth and limit its dependence on imported technologies. The country has also emerged as one of the main hubs for investments in RD, IT and ICT services. Socio Cultural Rising population with increase life expectancy and education level. Reduced poverty level by increasing per capital income. In 2008, Chinas per capita income was $2,770, which is one of the highest in Asia. Social richness prefers to inspect products before purchasing and haggle price for special deals. Online payment is less prevalent due to lack financial service. Banks provide debit card usage on specific stores and geographic areas. Technological Telecoms links are still of questionable quality outside major cities and do not have an expert courier system like DHL of FedEx. At the moment shipment to outside cities will take 3 weeks. Has been focusing on the areas of information and communication technologies (ICT), energy, health and life sciences, bio-technology and agriculture. Network security is non-negligible, and potential safety hazards may restrict the development of transaction applications like e-commerce and online payment. Environmental Major environmental problems: air pollution, diminishing biodiversity, land degradation, soil erosion, water pollution and shortage, shortage of resources, China will soon exceed the US in terms of greenhouse emissions. Implemented a green strategy, waste management policy (e.g. biogas production), China has accepted and ratified Kyoto protocol, and developed first national plan for climate change. Planning to reduce energy usage by fifth before 2010 and increase the amount of renewable energy Planning to increase in the use of wind, nuclear and hydro power and increasing the efficiency of coal plants Legal Weak implementation of intellectual property rights (IPR) laws continues to be problematic and, not surprisingly, receives frequent international attention, causing concern about the situation among international companies. Clear and fast legal procedures have been a major facilitator of foreign direct investment (FDI) in the country. The judicial system in China is plagued by a shortage of judges, particularly in rural areas. Risk Factors The risks envisaged are as follow: Intense competition There are many new competitors entering the business with greater resources, long histories, more customers and greater brand recognition. They may be able to negotiate better deals and at cheaper costs with the suppliers. Expansion into new products, services, technologies and geographic regions are subjects to additional business, legal, financial and competitive risks With limited or no experience in new market segments, there is a possibility of customers not adapting to the new product or service offered. Therefore, it would have an effect to the gross profits and could also damage the companys reputation, growth and operating results. Unsuccessful in efforts to expand into international market segments Little experience in operating in future market segments may not benefit from any first-to-market advantages or otherwise succeed. It is costly to establish, develop and maintain international operations and websites and promote the companys brand internationally. International sales and operations are subject to a number of risks such as local economic and political conditions, government regulation of e-commerce or other online services and restrictive governmental actions Foreign exchange risk The results of operations and certain inter-company balances associated with international websites are exposed to foreign exchange rate fluctuations. Upon translation, operating results may differ materially from expectations, and will record significant gains or losses on the re-measurement of inter-company balances. Payments related risks Payment options to customers are subject to additional regulations and compliance requirements. Failure to comply with the said rules or requirements will have an adversely affect to the operating results as the company is subject to fines and higher transaction fees. There is also the risk of fraud cases.

Wednesday, December 18, 2019

A Young Aspiring Teen Walking Down Washington D.c

A young aspiring teen walking down Washington D.C. might be amazed. They’d see the monuments built by calloused damaged hands and feel proud. They’d see the endless stripes of red and white and feel a sense of fullness while missing the red blood that made it. They’d see the green trees and paper and feel the full effects of the staged aesthetic. They’d see the house that represents the proud and joy of America, the White House, and feel happy that they live in a land of fair leaders, but all of these would only be a beautiful sparkling ocean with a littered black bottom. Through politicians, the American Dream has led to the corruption of the political system by greed, the need to be at the top, and making it difficult for others to obtain the dream; although some may argue that the American Dream built the modern day political system, one person’s dream doesn’t represent everyone’s dreams. For many, achieving the American Dream typically involves having money. Some interpret this as being financially stable or having enough money to rule the world. The latter is accurate for politicians in the United States. The greed that evolves from the American Dream can be seen in today’s society through taxes, debt, and salaries. Taxes are one of the many ways that American politicians display their greed. Many politicians believe that the greatest way to fix the country’s economy is by taxing the rich less and the middle class more. This does make sense in some way considering thatShow MoreRelatedFundamentals of Hrm263904 Words   |  1056 PagesOpportunity Employment 72 The Role of the EEOC 72 Office of Federal Contract Compliance Program (OFCCP) 73 Current Issues in Employment Law 74 What Is Sexual Harassment? 74 Are Women Reaching the Top of Organizations? 75 DID YOU KNOW?: EEOC Reaches Out to Young Workers 76 HRM in a Global Environment 78 Summary 79 Linking Concepts to Practice: Discussion Questions 52 Developing Diagnostic and Analytical Skills 52 Case 2: Nine-to-Five No More 52 Working with a Team: Making a Layoff Decision 52 Learning anRead MoreStephen P. Robbins Timothy A. Judge (2011) Organizational Behaviour 15th Edition New Jersey: Prentice Hall393164 Words   |  1573 PagesMichigan State University Philip Roth, Clemson University Dale Rude, University of Houston Holly Schroth, University of California at Berkeley Jody Tolan, University of Southern California Debra Schneck, Indiana University Marilyn Wesner, George Washington University Over the last editions this text has grown stronger with the contribution and feedback of the following instructors: David Abramis, California State University Chris Adalikwu, Concordia College Basil Adams, Notre Dame de Namur UniversityRead MoreOrganisational Theory230255 Words   |  922 PagesMicrosoft Way, Redmond, Washington 98052-6399 U.S.A. All rights reserved; NI Syndication for extracts from ‘Society of the future?’ by Alan Hamilton published in The Times 1st October 2005 and ‘Intelligence chiefs appoint businessmen to bring management expertise’ published in The Times 12th January 2005; The Washington Post Writers Group for an extract from ‘McDonald’s Goes for Gold With Olympic Sponsorships’ published in The Washington Post 14th August 2004  © 2004, The Washington Post. Reprinted with

Monday, December 9, 2019

Hamlet Analyzed in Terms of Aristotle’s Poetics Essay Example For Students

Hamlet Analyzed in Terms of Aristotle’s Poetics Essay Aristotles Poetics is considered the guide to a well written tragedy; his methods have been used for centuries. In Aristotles opinion, plot is the most important aspect of the tragedy, all other parts such as character, diction, and thought stem from the plot. Aristotle defines a tragedy as an imitation of an action that is serious, complete, and of a certain magnitude; in language embellished with each kind of artistic ornament, the several kinds being found in separate parts of the play; in the form of action, not of narrative; through pity and fear effecting the proper purgation of these emotions(p. ). Shakespeares Hamlet follows this definition for the most part, and even though it is not always in agreement with Aristotles guidelines, it is still a great and effective tragedy. Aristotle states that tragedy is an imitation of an action that is serious, complete, and of a certain magnitude(p. 22). Hamlet is an excellent example of this. The play centers around Hamlets quest to avenge his fathers death, this is a serious action. It is also complete in the sense that all the loose ends are tied together in a sensible, believable manner. Hamlet is able to avenge his fathers death by killing his uncle. Shakespeare also follows Aristotles idea of the tragedy being of a certain magnitude. The characters are supposed to be the most perfect people whom the audience can still relate to. Hamlet is a wealthy prince, however he deals with the same problems as the common man. He is confused, paranoid, and angered about the circumstances surrounding his fathers death. He is also unsure of himself and how he should handle the situation. The audience can relate to this uncertain feeling and they are able to empathize with Hamlet. Aristotle believes that in order for a tragedy to be effective, it must convey pity and fear. He defines pity as a felling that is aroused by unmerited misfortune (p. 27). Hamlet undoubtedly suffers this unmerited misfortune. He has done nothing to bring about his fathers death. To make the situation even more painful, his mother has married his uncle whom he suspects is responsible for the tragedy. These circumstances illicit pity from the audience. The fear of impending evil is also prevalent in the play. As the plot progresses, it becomes clear that the king is plotting to kill Hamlet and Hamlet is planning to kill the king. Hamlets plot is what Aristotle considers complex. It is accompanied by Recognition, which is a change from ignorance to knowledge, producing love or hate between the persons destined by the poet for good or bad fortune(p. 26). The Recognition occurs when the play within the play is staged for the king. The play is a reenactment of what Hamlet believes happened to his father. His uncle is so upset and flustered by the play that he runs from the room. This action indicates to Hamlet that his suspicions were correct and his uncle is indeed responsible for King Hamlets death. Hamlet later finds the king in a church praying and is tempted to kill him there, but decides against it because he will go to heaven since he is praying. From this, the audience is able to infer that Hamlet will attempt to kill his uncle later in the play. Aristotle stresses that diction is important to make the tragedy believable. Shakespeare utilizes diction perfectly and everything his characters say is appropriate for them to be saying. For instance, the king speaks like a king, he always dodges like a true politician. .u933b867ce98d9f62ceadf6b71ed33cf9 , .u933b867ce98d9f62ceadf6b71ed33cf9 .postImageUrl , .u933b867ce98d9f62ceadf6b71ed33cf9 .centered-text-area { min-height: 80px; position: relative; } .u933b867ce98d9f62ceadf6b71ed33cf9 , .u933b867ce98d9f62ceadf6b71ed33cf9:hover , .u933b867ce98d9f62ceadf6b71ed33cf9:visited , .u933b867ce98d9f62ceadf6b71ed33cf9:active { border:0!important; } .u933b867ce98d9f62ceadf6b71ed33cf9 .clearfix:after { content: ""; display: table; clear: both; } .u933b867ce98d9f62ceadf6b71ed33cf9 { display: block; transition: background-color 250ms; webkit-transition: background-color 250ms; width: 100%; opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; background-color: #95A5A6; } .u933b867ce98d9f62ceadf6b71ed33cf9:active , .u933b867ce98d9f62ceadf6b71ed33cf9:hover { opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; background-color: #2C3E50; } .u933b867ce98d9f62ceadf6b71ed33cf9 .centered-text-area { width: 100%; position: relative ; } .u933b867ce98d9f62ceadf6b71ed33cf9 .ctaText { border-bottom: 0 solid #fff; color: #2980B9; font-size: 16px; font-weight: bold; margin: 0; padding: 0; text-decoration: underline; } .u933b867ce98d9f62ceadf6b71ed33cf9 .postTitle { color: #FFFFFF; font-size: 16px; font-weight: 600; margin: 0; padding: 0; width: 100%; } .u933b867ce98d9f62ceadf6b71ed33cf9 .ctaButton { background-color: #7F8C8D!important; color: #2980B9; border: none; border-radius: 3px; box-shadow: none; font-size: 14px; font-weight: bold; line-height: 26px; moz-border-radius: 3px; text-align: center; text-decoration: none; text-shadow: none; width: 80px; min-height: 80px; background: url(https://artscolumbia.org/wp-content/plugins/intelly-related-posts/assets/images/simple-arrow.png)no-repeat; position: absolute; right: 0; top: 0; } .u933b867ce98d9f62ceadf6b71ed33cf9:hover .ctaButton { background-color: #34495E!important; } .u933b867ce98d9f62ceadf6b71ed33cf9 .centered-text { display: table; height: 80px; padding-left : 18px; top: 0; } .u933b867ce98d9f62ceadf6b71ed33cf9 .u933b867ce98d9f62ceadf6b71ed33cf9-content { display: table-cell; margin: 0; padding: 0; padding-right: 108px; position: relative; vertical-align: middle; width: 100%; } .u933b867ce98d9f62ceadf6b71ed33cf9:after { content: ""; display: block; clear: both; } READ: Karl Marx (1881 words) EssayThere is an obvious and necessary difference between the way he speaks and the way the gravediggers speak. The gravediggers are common men and therefor, speak as thought they are common men. There are some aspects of Poetics that Shakespeare does not follow. For instance, Aristotle states that in a great tragedy, there should be unity of time, place, and action. By this he means the action of the play should take place in the amount of time it takes to perform it, it should occur in one setting, and there should be one main plot or action. Shakespeare breaks all these rules. The play spans over a significant period of time. Also, the action occurs in various settings ranging from the palace to a plain in Denmark. Finally, there are several plots taking place simultaneously. For instance, as Hamlet is struggling with the death of his father, Ophelia is going insane because Hamlet is not returning her love or showing any interest in her. The audience feels pity for Ophelia throughout her ordeal as well. Aristotle would not approve of all the subplots that occur within this play. Shakespeares Hamlet is a great and effective tragedy which follows most of the guidelines set by Aristotle in Poetics. There are some aspects of Poetics that Shakespeare does not include or follow, however the play still effects the audience in the desired manner. In reality, Hamlet would not have the same impact if it followed all the guidelines. For instance, the whole aspect of the subplot about Ophelias insanity adds so much to the play. Shakespeare broke some of Aristotles rules and still wrote an effective tragedy that has been appreciated by audiences for centuries.

Monday, December 2, 2019

Unmanned Aerial Vehicles Applications and Human Factor Essay Example

Unmanned Aerial Vehicles: Applications and Human Factor Essay Recent technology has introduced to us a new form of aircraft in aviation.   Perhaps due to the increasing incidents of aircraft accidents during these past decades, which often resulted in the deaths of even the most experienced pilots, airline conglomerates and military authorities had painstakingly searched for the completion of the invention of Unmanned Aircraft Vehicles, or UAV. In this paper, we shall be witnesses to a technology that has the potential to virtually eliminate pilot casualties, whether in war, espionage missions, or even in commercial flights.   We shall also see how human factors affect such technology, in terms of control and manipulation of the aircraft, and the causal possibilities of human error in accidents. Background The United States’ Department of Defense defines the UAV as, â€Å"powered aerial vehicles that do not carry a human operator, use aerodynamic forces to provide vehicle lift, and can fly autonomously or be piloted remotely† (Bone, 2003, p. 2).   United States’ war on terrorism has put UAVs missions as important in the gathering of intelligence data.   Its unquestionable successes in the wars in Iraq, Kosovo, and Afghanistan had opened the military minds on its advantages during wartime.   Missions that used to be reserved for Air force top guns, now the UAVs are slowly taking the front seat.   UAVs have two obvious advantages over manned aircrafts: first is, they are found to be cost efficient; and it eliminates the dangers faced by the pilots’ during missions (Bone, 2003, p2). We will write a custom essay sample on Unmanned Aerial Vehicles: Applications and Human Factor specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on Unmanned Aerial Vehicles: Applications and Human Factor specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on Unmanned Aerial Vehicles: Applications and Human Factor specifically for you FOR ONLY $16.38 $13.9/page Hire Writer Bone cites a number of reasons on the seeming delay of the technology of UAV.   One is because the technology to effectively fly a UAV mission has only recently been made available.   Another is due to the Air Force’s slowly fading silk scarf syndrome, which gave preference to manned over unmanned flight missions, thus allowing for the UAV to gain more flight hours.   Yet another is due to the earlier absence of a global crisis, which could have allowed for a quicker invention of the UAV due to the extreme shortage in the U.S. military of an espionage aircraft (2003, p.5). UAVs size varies from a few centimeters in length to that of a 747 jet liner.   U.S. Department of Defense currently has in its possession five types of UAVs: The Predator and Global Hawk of the Air Force; the Pioneer by the Navy and the Marines; the Hunter and the Shadow by the Army (Bone, 2003, p2). Despite the notion that UAVs have only recently been developed in the United States, it has been in existence in aviation for almost a century.   UAVs were first tested in 1920, during World War 1, but the United States did not put it into combat action.   It was Germany who had laid the foundations on this technology during World War 2, with the invention of the V-1 Flying bomb.   But it was to be in the Vietnam War that UAVs were first used as an espionage plane, with AQM-34 Firebee.   Firebee epitomized what the UAV should be: versatile, easy to operate, transportable to other areas, and can easily be converted to payload missiles. In a speech by former President Bush in December of 2001, he had expressed his belief in the UAVs technology, particularly The Predator, as the future of warfare; as stated in a report to the American Congress in 2003 by Elizabeth Bone: â€Å"This unmanned aerial vehicle is able to circle our enemy forces, gather intelligence, transmit information instantly back to commanders, then fire on targets with extreme accuracy†¦We’re entering an era where unmanned vehicles of all kinds will take on greater importance† (p. 7). U.S. Military U.A.V.s 1. MQ-1 Predator: It is about half the size of an F-16 fighter jet, a tail shaped like an inverted V, and is 27 feet in length and 7 feet high.   It reaches a maximum altitude of 25,000 feet, but for the fitted video cameras to work at its best, it needs to be at about 10,000 to 15,000 feet in altitude.   Its take off and landing capabilities are similar to that of the normal aircraft, with the pilot on ground control.   The Predator’s main job is airborne reconnaissance and accurate target pinpointing.   It is equipped with a Synthetic Aperture Radar, or SAR, enabling it to see through bad weather conditions.   Newer models also have capabilities to launch smaller UAVs to carry out varying missions.   Each Predator unit’s estimated cost is $4.5 million, and $30 million for the whole system (Bone, 2003, p. 25). 2. RQ-2 Pioneer: This UAV is the only type on the Navy’s and Marine’s arsenal (Bone, 2003, p. 29).  Ã‚   It was obtained by the U.S. Navy in 1986 from Israel after proving its worth with their war with Lebanon.  Ã‚   RQ-2 Pioneer is about half the size of the Predator, at 14 feet in length, and its maximum attainable altitude is 15,000 feet.   It can remain airborne for 5 hours straight, and since its acquisition, it has accumulated over 23,000 flight hours giving support to the Navy and the Marines.   The cost of Pioneer is estimated at $250,000 to $1 million, depending on the payload (Bone, 2003, p. 30). 3. RQ-5 Hunter: The Hunter weighs 1,600 lbs, is capable of flying at 25,000 feet altitude, and can stay airborne for 12 hours straight.   It is equipped with E-O/IR sensor which enables it to fly in night missions.   Recently, plans have been made to use Hunter to act as a reconnaissance to a squadron of attack helicopters, such as the Apache and RAH-66 Comanche, to maximize the helicopters’ attack zone.   In 2002, a successful experiment was made wherein Hunter’s control was linked to the mainframe computers of the Apache’s during flight missions.   The success of the experiment greatly maximized Apache’s efficiency during battle conditions.   Weapons payload includes the Brilliant Anti-Armor submunition, or BAT, an effective annihilator of tanks and armored personnel carriers.   Hunter’s cost with payload is $1.2 million, ad the whole system at $30 million (Bone, 2003, p. 33). 4. RQ-7 Shadow 200: Shadow 200, a product of AAI Corporation, is 11 feet in length and has a wingspan of 13 feet.   It was strategically designed for brigade operations, thus its range is only 30 nm and has a flight duration of 4 hours.   And although its maximum attainable altitude is 14,000 feet, it works best at only under 8,000 feet altitude.   The Shadow is equipped with an E-O/IR sensor video camera for day or night missions, and has the capability to transmit data to ground control in real-time.   The Shadow cost is pegged at $350,000 while the whole system is at $10.7 million (Bone, 2003, p. 36). 5. FQM-151 Pointer: All the branches of the U.S. military have, in the past, tried to develop their own type of hand-launched Pointer that measures around 6 feet in the last 15 years, and some of them had been on war missions, particularly in gulf War and Dessert Storm.   However, the design officially approved by the Military is the AeroVironment’s Pointer UAV, which weighs 10 pounds, and has a wingspan of 9 feet.   It can stay afloat for 90 minutes and has an up to 3-mile operational distance from ground control, within altitudes of 100-300 feet.   Pointer UAVs have been best-suited for pay loading experimental miniscule sensors and have been a popular choice for Drug Enforcement Agency, National Guard, and Special Operations Forces (Bone, 2003, p. 37). 5. RQ-4 Global Hawk: This UAV is by far the most expensive ever produced, with per unit cost amounting to $75 million (Bone, 2003, p. 39).   It specializes in high altitude, long duration flights that provides near real-time videos of large geographical sections.   It is also the first ever UAV to make a successful trans-Pacific flight, when it travelled from California to Australia in April 22-23, of 2001 (Bone, 2003, p. 37).   Its effectivity was tested in Afghanistan, when it flew more than 50 combat missions accumulating more than 1,000 combat hours, despite still being on its experimental stage.   Global hawk is about the size of a corporate jet, measuring 44 feet in length and weighing 26, 750 lbs.   Its maximum altitude limit is almost double than that of a commercial liner, at 65,000 feet, and is capable of flying over 35 hours without refueling.   However, Global Hawk’s most apparent advantage is its capability of taking off, flying, and landing autonomous ly in any kind of weather.   Commanders in the battle field aptly call this UAV as, â€Å"the theater commander’s around-the-clock, low hanging surveillance satellite† (Bone, 2003, p. 38).   Global Hawk’s pay load consists of a 2,000 pound group of sensors, which is much larger than on any of the previous UAVs.   it includes an all weather SAR with a Moving Target Indicator capability, E-O digital camera, IR sensor, and a Signals Intelligence Sensor, or SIGINT, making it a virtually multi-intelligence UAV (Bone, 2003, p. 38).   As a testament to its technological superiority, Global Hawk’s radar-sensors and IR cameras were able to accurately pinpoint Iraqi targets in March 24-27, of 2002, despite of having a near-zero visibility on the ground due to a relentless sandstorm in Iraq. 6. Unmanned Combat Air Vehicle: UCAV is the first ever unmanned aero-system designed primarily and purely for combat missions.   It is similar in size to the Air Force’s Predator, at 27 feet in length and a wingspan of 34 feet.   Equal to manned fighter jets in weaponry and stealth capabilities, the U.S. Armed Forces plan on having one-third of its deep-strike fighter jets be unmanned by the year 2010 (Bone, 2003, p. 42).   Due to its 1,000 to 3,000 pound-weapons payload, UCAV’s primary combat mission would be SEAD, or Suppression of Enemy Air Defense, to be followed by precision targeting of enemy installations. 7. Vertical Takeoff and Landing Tactical UAV: Commonly known as VTUAV Fire Scout, it is a helicopter-looking design intended as a replacement for the Pioneer.   It is about 23 feet in length, with a maximum altitude of 20,000 feet and maximum flight duration of 6 hours.   Its maximum distance of operations is 110 nm from the control ship and has a speed of 115 knots (Bone, 2003, p. 43).   UTUAV Fire Scout, unlike the Pioneer which utilizes a net in order to be recovered in a ship, ha the capability of autonomously taking off and landing through the use of sensors.   Fire Scout is an unmanned equivalent of the commercial-use Schweitzer helicopter, it ahs an E-O/IR sensor that also serves as a laser targeting designator.   It is also capable of mine-detecting, and is equipped with Hellfire missiles.   Fire Scouts are being utilized in special operations support and homeland security services (Bone, 2009, p. 44). 8. Dragon Eye: it is the opposite of the Global Hawk in terms of range and size.   Being a 5-pounder, with just a 45 inch wingspan UAV, the Dragon Eye can provide marines with over-the-hill surveillance of enemy troops, making it an ideal UAV for urban warfare, chemical, as well as biological-oriented missions.   It is portable enough to fit in a backpack and can be launched by hand or with a bungee cord.   This UAV can stay aloft for 1 hour, at a height of 300-500 feet, with speeds of up to 40 mph.   Because of its small frame, its production cost which includes three planes, is only at $90,000 (Bone, 2003, p. 47). 9. Dragon Warrior: Resembling a small helicopter of about 105 inches long and flight range of 50 miles, and maximum duration of 3 hours, this will be a vertical take off and landing UAV designed for surveillance in urban areas.   It will also be equipped with E-O/IR sensor camera and a laser target designator. 10. A-160 Hummingbird: The Hummingbird is also an unmanned helicopter designed to have longer flight duration and distance over the other models, with a range of 2,000 nm and a duration lasting for 48 hours, respectively.   With its maximum flight altitude of 30,000 feet and a speed of 130-140kt, it will greatly assist in surveillance, targeting thru laser designation, communications relaying, weapons delivery to infantries, and special operations missions (Bone, 2003, p. 49). 11. Scan Eagle: Boeing’s UAV can be optionally launched from a ship, on land, or even from a submarine.   The idea if to have a horde of 4-foot UAVs linked directly on a submarine for reconnaissance purposes. 12. Eagle Eye: This type of UAV takes off like a helicopter, and then flips its rotor blades to fly like an airplane.   Its speed is up to 220 knots and has a distance of 300 miles.   This type of UAV is suited for patrolling the coastline, locating ships in distress, and also has the capability to transmit videos to command centers.   Production cost for the Eagle eye is at $3 million per plane (Bone, 2003, p. 50). 13. Micro Air Vehicle, MAV: unlike the UAVs, MAV is only inches in length, and production costs would be in the thousands and not in millions.   As an example, the Organic Air Vehicle, or OAV, measures only 9 inches wide.   It has a ducted fan design, and carries an E-O sensor, which comes in infrared or acoustic models.   Because of its very small size, MAVs can be programmed for watch-and-stare missions on enemy troops while on air, and also while on land.   These MAVs can autonomously lift off and land on itself.   Modifications have also been done, resulting in the advent of UCAR, or Unmanned Combat Armed Rotorcraft.   These will have the capability as a reconnaissance to ground troops, as well as offensive purposes.   It will also be capable of system-linking with other manned and UAVs for performing synchronized attacks (Bone, 2003, p. 51). Human Factor in UAV Flights Since unmanned flights have slowly been gaining popularity in both military and commercial uses, perhaps it will be sooner than we expect for UAVs to replace manned flights permanently.   It would be wise for us to give insights on issues concerning cognitive factors affecting the pilots, especially since accident occurrences in UAV flights have been proven to be over thirty times more common than in manned aircraft flights (McCarley Wickens, 2005, p. 2).   It is also possible for UAV pilots to be manning more than one aircraft simultaneously, entailing never-before-encountered workload pressures. Manual v Automated Flights 1. It has been widely accepted that the effect of automation has not resulted in the elimination of human workload but the introduction of new ones, forcing the pilots to develop new strategies (McCarley Wickens, 2005, p. 4).   The changing of strategies is often the result descriptive of an imperfect system, not of the computer software type, but of the factors that even a perfectly-running automation system would not be able to detect, such as the icing of an UAV wing. 2. The present UAV take off and landing automated procedures differ according to the model.   Such that the Hunter and the Pioneer require an on-site external pilot; the Predator to be controlled on a separate aircraft within the Ground Control Site; while there are some cases, as in Global Hawk, where full automation is integrated.   These differences seem to be significant, take off and landing errors make up for a majority of accidents attributed to human factors; Hunter with 67% and the Pioneer with 78%, both are externally controlled (McCarley Wickens, 2005, p. 6). 3. An external pilot of a UAV basically relies on computer imagery in controlling the aircraft.   The visual quality of the imagery, however, has the possibility of being diminished due to factors affecting bandwidth, resulting in poor resolution or a delay in image uploading.   Situations such as these may prejudice overall aircraft control and visibility of air traffic.   This poses a clear danger in military missions, more so in the planned commercial implementation of autonomic control of commercial flights. 4. On way of solving the problem stated in #3 is by the use of enhanced reality, or synthetic vision (McCarley Wickens, 2005, p. 7).   In this system, images from the actual camera shots of a UAV will be converted to display landmarks on a given terrain, thus creating a virtual reality world that the external pilot can manipulate.   The problem with this system is that pilot’s over reliance on synthetic imagery would lead to a possible neglect of some natural landmarks not visible in the imagery system.   Thus, using this method would be beneficial for the UAV performance but comes with a potential risk. 5. One of the resulting effects of separating the pilot from the aircraft is that the pilot would be denied of his real-time sensory reactions otherwise available in a manned aircraft, and that he would have to rely on computer monitors provided for by the cameras onboard the UAV.   Hence, we can conclude that the external pilot only functions in a relatively sensory isolation from the UAV he is controlling.   It would be of utmost importance for the developers to design an alarms system to keep the pilots abreast of the real-time environmental situations and probable system failures. 6. Since UAV pilots are not in danger of injury or death in the event of their aircraft crashing, this could, in theory, prove to be a big difference in the pilot’s risk-taking decisions, such as in going through a flight plan on a bad weather.   Sensory isolation factor could be magnified during these situations (McCarley Wickens, 2005, p. 10). 7. The accepted norm during long endurance UAV flights had been to switch control among different external pilots within a single flight.   This process usually takes on three types: First is the transfer of UAV control from one Ground Control Station to another; second is through the transfer of control from one team of operators to another, within the same GCS; and last is through the transfer of control from one pilot to another within the same team.   It has been documented that a significant number of UAV accidents happened during the transfer from one pilot to another, because the GCS taking over control of the UAV was not properly briefed beforehand (McCarley Wickens, 2005, p. 10). 8. Instances of a total failure of the Ground Control Station-UAV communications link would prove to be disastrous.   This scenario can be considered as a human factor because of the need for the Automated Traffic Center, or ATM, to be aware of the default programs of the UAV system in order to properly manage air traffic within their area.   It would also be of the utmost importance for the external pilots themselves to be aware of the communications link failure as quickly as possible. 9. Researches on whether experienced manned pilots are better operators than novice manned pilots have ended in differing conclusions.   Although generally, as the experiments revealed, experienced manned pilots reached the desired level of performance in landing and basic maneuvering skills faster than that of the novice’s.   Other studies, however, based on the Army’s Job Assessment Software System, or JASS, revealed that piloting skills does not constitute a great deal in UAV operations, thus making the selection of top pilots as UAV operators insignificant (McCarley, Wickens, 2005, p. 13). 10. Questions on medical qualifications of the UAV operator should also be brought into light.   Since physical factors concerning high altitude temporary mental perception failure does not concern AUV pilots, still some type of medical fitness qualifications must be practiced.   These must be able to determine if: the said qualifications should be more stringent or less for the UAV pilots; and, work duration limits should be established for long endurance missions. 11. Since the pressures and work load of a UAV pilot differs from that of a manned aircraft, and since formal training in flight schools are usually focused on instructing pilots for manned vehicles, which constitute less amount of time on simulations and more on the actual flight, the need arises for a training more attuned to giving more flight simulations to pilots of UAVs.   This should be able to determine up to what extent trainee pilots should spend time on simulations in order to obtain a UAV certification. 12. Technological researches must be made to improve on the controls of the external pilot.   At present, the controls of the UAV are similar to that of a radio-controlled hobbyist’s plane.   This design poses a problem in the directional movement of the UAV with respect to the controller.   As such, when the UAV and the pilot differ in position by 180 degrees, a rightward movement on the rudder will result in leftward movement of the UAV, and vice versa.   Control rudders must be made to conform to the principle of human motion compatibility as to avoid further confusion for the pilot (McCarley Wickens, 2005, p. 6). References McCarley, J. S., Wickens, C. D. (2005). Human Factors Implications of UAVs in the National Airspace. Technical Report AHFD-05-05/FAA-05-01. New Jersey: Federal Aviation Association. Bone, E. (2003). Unmanned Aerial Vehicles: Background and Issues for Congress. Congressional Research Service.   The Library of Congress.