Tourism Industry in Amsterdam

Executive Summary The tourism industry in Amsterdam has become important for the economic development of the city. It attracts millions of people who may have different lifestyles, interests, and values. It is characterized by extreme competitiveness among businesses.Advertising We will write a custom report sample on Tourism Industry in Amsterdam specifically for you for only $16.05 $11/page Learn More The growth of this economic sector can be attributed to the cultural heritage of Amsterdam and entertainment opportunities that it can offer. This area of economy is still open to new entrants. Introduction This report is aimed at examining the peculiarities of tourism industry in Amsterdam. In particular, it is necessary to focus on the way in which various external and internal factors can shape it. Much attention should be paid to political, social, economic, technological, and other forces. Moreover, one should concentrate on the competitive environme nt of this industry. In this context, the term tourism industry can include various organizations such as hotels, restaurants, travel agencies, and other businesses. Contemporary Amsterdam attracts people who have different values, priorities, or interests (Dunford 2003, p. 53). This popularity of this city gives rise to the development of a very competitive tourist industry (Statistics Netherlands 2012). These are the main issues that should be examined. Industry Analysis Industry overview and major trends This paper will be focused on hospitality institutions that operate in Amsterdam. Among them, one can distinguish hotels, restaurants, cafes, resorts, and other organizations that provide services to travelers. In the global context, its role is not very important since it constitutes only a small fraction of the national economy. Nevertheless, it does contribute to the development of global economy. For instance, in 2010, the city was visited by 5.3 million tourists (Research an d Statistics Economic Development Department, 2011, p. 1). They brought extra revenues to airlines, and travel agencies that could be located in various countries. Overall, researchers believe that there are positive trends in the development of the Amsterdam tourism industry. In particular, they look at such indicators as the number of tourist arrivals or bed nights1 (Research and Statistics Economic Development Department, 2011, p. 1). Even during the economic recession, these indicators were growing. For example, the number of tourist arrivals grew by more re 10 percent during the period between 2007 and 2009 (Research and Statistics Economic Development Department, 2011, p. 1).Advertising Looking for report on communications media? Let's see if we can help you! Get your first paper with 15% OFF Learn More Therefore, tourism industry in this city is resistant to the effects of global recession. This is one of the main aspects that should be taken into account. The city of Amsterdam and tourism Amsterdam can be viewed as the commercial and technological centers of the Netherlands. According to various rating agencies, this city is one of the most comfortable ones (Hobbes 2009, p. 115). This means that it has necessary infrastructure, educational organizations, recreational facilities that are important for the wellbeing of an individual. Furthermore, the city hosts numerous attractions such as Van Gogh Museum, canals, Hermitage Amsterdam, cannabis coffee shops, and so forth. Therefore, this city can appeal to tourists with different values and attitudes. There are two important effects of globalization on this city. In particular, one can speak about the growing number of in-coming travelers and intensification of trade. Currently, the population of Amsterdam is 802,938 people. In turn, the Amsterdam Area has 11 percent of the national GDP2 (Statistics Netherlands 2012). The economy of Amsterdam as well as the Netherlands is formal. This means that businesses are monitored and regulated. The main consequence of this regulation is that the rights of clients are better protected. These are the main aspects that can be singled out. PESTL Model The external environment of the industry can be examined with the help of PESTL model that can throw light on political, legal, economic, technological and ecological forces. Political and legal environment The government of the Netherlands can be described as a parliamentary democracy and constitutional monarchy. This country does not face any risk of civil conflict or political instability. The strong protection of property and civic rights is the main political and legal factor that will contributes to the growth of hospitality industry (Musterd 2003, p. 88).Advertising We will write a custom report sample on Tourism Industry in Amsterdam specifically for you for only $16.05 $11/page Learn More For instance, it can lead to the increased flow of direct investment into various hotels, restaurants or other hospitality institutions. There are other forces that strengthen the confidence of investors and customers. Among them, one can single out transparency of the legal system and extremely low levels of corruption (Taekema 2011, p. 7). Moreover, economists focus on such an indicator as ease of doing business. Amsterdam is ranked 26th in this rankings (Amen 2013, p. 186). Therefore, the representative of the tourism Industry can find this legal and political environment very attractive Economic forces influencing the tourist industry in Amsterdam The growth in this industry is determined by the increasing globalization and the growing number of travelers. Hospitality institutions can be affected by various economic factors. Much attention should be paid to the purchasing power of clients who come from other European countries and the United States. Therefore, the tourism industry in Amsterdam can be influenced by many other industries . The Netherlands is regarded as a country where entrepreneurs can easily find credit for their businesses. Moreover, the country is an advanced economy with very low inflation rates (Banach 2008, p. 58). One can say that the tourism industry in Amsterdam is very competitive. This is why it is difficult for a single company to gain leadership. They have to provide services with the best ratio of price and quality. Socio-cultural environment and tourism industry in Amsterdam There are several social and cultural forces that can be important for the development of tourism in Amsterdam. Although, Dutch is the only official language, local people can also speak German, English, and French. Therefore, tourists do not find it difficult to communicate with local people. It should be noted that religion does not play a strong role in the social or cultural life of the country. Moreover, the cultural norms adopted in the Netherlands as well as Amsterdam tolerate different forms of religious worship. This issue is also of great importance to leisure travelers. Finally, one should remember that the country has legitimized the use of cannabis, and this policy led to the growth of drug tourism in Amsterdam (Dunford 2003, p. 53).Advertising Looking for report on communications media? Let's see if we can help you! Get your first paper with 15% OFF Learn More Technology and the tourism industry Technology has been critical for the hospitality institutions in Amsterdam because with its help they can better attract clients. For instance, many hotels and restaurants develop their own websites in effort to attract clients from various countries. Amsterdam can also be viewed as a place where technological innovation is encouraged. As a rule, the emphasis is placed on the adoption of technologies which can reduce the pollution of water, air, or soil (McDonald 2011). This issue is particularly relevant if one speaks about transportation. This policy makes the city more appealing to tourists. Overall, Amsterdam has a well-developed infrastructure which includes information technologies, sea transportation, and advanced medical care. Ecological and environmental challenges The main environmental challenge is the increased risk of floods. It affects various types of businesses including hospitality organizations. They have to spend extra costs on flood insurance (Botzen 2013). This environmental challenge can become more important in the future, especially if sea level rises. Competitive environment and Five Forces Analysis The competitive environment of this Industry can be analyzed with the help of 5 Forces Model which helps to examine the internal and external environment of an industry. The threat of new entrants Hospitality institutions that are based in Amsterdam should remember that in this industry the threat of new entrants is high. This situation can be explained by the fact that the capital requirements are lower in comparison with other industries. Furthermore, there are no legal barriers that can prevent other companies from entering this market. The threat of substitute products The threat of substitute products is very low in this industry. Amsterdam offers a unique combination of various cultural sites and entertainment opportunities. Therefore, it is not likely that the tourists can go to a different locatio n. The bargaining power of suppliers In the tourist industry, there are businesses that act as suppliers. One should focus on the role played by travel agencies. These organizations provide information about various hotels in Amsterdam, restaurants, airline companies, and so forth. In other words, they can shape customers’ opinions. Secondly, it is important to speak about the suppliers providing foods and beverages to the hospitality industry. Yet, their bargaining power is not very high because they have to compete with one another. Moreover, hospitality organizations are important for their profitability. The bargaining power of buyers The bargaining power of clients is very strong because they do not have to face any switching costs. They can choose among different hotels, restaurants, airlines, and so forth. Furthermore, the services offered by local hospitality organizations are not very differentiated. This is why buyers can profoundly influence the performance of the tourism industry in Amsterdam. Intensity of competition The tourism sector in Amsterdam is characterized by intense competition. It should be kept in mind that there are many businesses which can offer similar services to clients. This is why they have to improve their services or even lower prices in order to attract customers. This is how they try to differentiate themselves among consumers. Ethical Dimensions The representatives of the tourist industry in Amsterdam have to make sure that their customers are not exposed to any risks. This issue should be considered by the managers of coffee shows where clients can purchase cannabis (Owens 2009). Similarly, Amsterdam is a popular destination for people who are interested in sex tourism. Therefore, the organizations should take precautions to safeguard their privacy and confidentiality. Key findings Overall, the examples provided in this paper can be used to identify the main traits of the tourist industry in Amsterdam. One should f ocus on the following aspects: intense competition among various hospitality organizations; the diversity of cultural sites and entertainment opportunities; the presence of legal safeguards that protect investors and clients; attractiveness to people who may have various values and lifestyles; well-developed infrastructure. Although, this industry is very competitive, it can still offer opportunities for clients and new businesses. This is the main argument that can be put forward. Appendixes Picture One: Tourist arrivals and bed nights (Research and Statistics Economic Development Department, 2011, p. 1) Picture Two: The economic performance of Amsterdam Region (Statistics Netherlands 2012) References Amen, M 2013, Cities and Global Governance: New Sites foar International Relations, Ashgate Publishing, New York. Banach G 2008, Policies in the European Union Unfair for Certain Countries?, The University of Southern Mississippi, Hattiesburg. Botzen, W 2013, Managing Extreme Clim ate Change Risks Through Insurance, Cambridge University Press, Cambridge. Dunford, M 2003, The Rough Guide to Amsterdam, Rough Guides, Boston. Hobbes, J 2009, World Regional Geography, Cengage Learning, New York. Research and Statistics Economic Development Department 2011, City of Amsterdam: Fact Sheet. Web. McDonald, G 2011, Frommer’s Amsterdam Day by Day, John Wiley Sons, Boston. Musterd, S 2003, Amsterdam Human Capital, Amsterdam University Press, Amsterdam. Owens, L 2009, Cracking Under Pressure: Narrating the Decline of the Amsterdam Squatters’ Movement, Amsterdam University Press, Amsterdam. Statistics Netherlands. (2012). Greater Amsterdam economically powerful region. Web. Taekema, S 2011, Understanding Dutch Law, Eleven International Publishing, Amsterdam. Footnotes 1 Please, refer to the Appendixes, Picture 1 2 Appendixes, Picture 2 This report on Tourism Industry in Amsterdam was written and submitted by user L1l1ana to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.

Using Calculus to Calculate Price Elasticity of Supply

Using Calculus to Calculate Price Elasticity of Supply In introductory economics courses, students are taught that elasticities are calculated as ratios of percent changes. Â  Specifically, they are told that price elasticity of supply is equal to the percent change in quantity supposed divided by the percent change in price. While this is a helpful measure, it is an approximation to some degree, and it calculates what can (roughly) be thought of as an average elasticity over a range of prices and quantities. To calculate a more exact measure of elasticity at a particular point on a supply or demand curve, we need to think about infinitesimally small changes in price and, as a result, incorporate mathematical derivatives into our elasticity formulas. Â  to see how this is done, lets take a look at an example. An Example Suppose youre given the following question: Demand is Q 100 - 3C - 4C2, where Q is the amount of the good supplied, and C is the production cost of the good. What is the price elasticity of supply when our per unit cost is $2? We saw that we can calculate any elasticity by the formula: Elasticity of Z with respect to Y (dZ / dY)*(Y/Z) In the case of price elasticity of supply, we are interested in the elasticity of quantity supplied with respect to our unit cost C. Thus we can use the following equation: Price elasticity of supply (dQ / dC)*(C/Q) In order to use this equation, we must have quantity alone on the left-hand side, and the right-hand side be some function of cost. That is the case in our demand equation of Q 400 - 3C - 2C2. Thus we differentiate with respect to C and get: dQ/dC -3-4C So we substitute dQ/dC -3-4C and Q 400 - 3C - 2C2 into our price elasticity of supply equation: Price elasticity of supply (dQ / dC)*(C/Q)Price elasticity of supply (-3-4C)*(C/(400 - 3C - 2C2)) Were interested in finding what the price elasticity of supply is at C 2, so we substitute these into our price elasticity of supply equation: Price elasticity of supply (-3-4C)*(C/(100 - 3C - 2C2))Price elasticity of supply (-3-8)*(2/(100 - 6 - 8))Price elasticity of supply (-11)*(2/(100 - 6 - 8))Price elasticity of supply (-11)*(2/86)Price elasticity of supply -0.256 Thus our price elasticity of supply is -0.256. Since it is less than 1 in absolute terms, we say that goods are substitutes. Other Price Elasticity Equations Using Calculus To Calculate Price Elasticity of DemandUsing Calculus To Calculate Income Elasticity of DemandUsing Calculus To Calculate Cross-Price Elasticity of Demand

Business Term Paper Example | Topics and Well Written Essays - 2000 words

Business - Term Paper Example Even though it floundered after the early years of its inception (dating back to 1976), for the past nearly two decades Apple Inc. has consistently led the technology markets in product innovation and brand loyalty. Many credit the vision of one of its earliest developers and current CEO, Steve Jobs, with its repeated successes thanks to such powerhouse creations as the IPod, IPad, and IPhone (to name a few) – a point that is difficult to argue. Even so, recent bouts of illnesses that have caused Jobs to be ‘off the job’ on several occasions have left shareholders edgy about the future of the company and the continued value of their investment in the coming years. In this essay we will briefly review the origins of this organization that began as a brainchild in a garage and follow its history to the present day. Finally we will consider the projected future scenarios of Apple Inc. alongside expert opinions on the likelihood of a company’s success in genera l (and Apple Inc.’s in particular) when its founder and spokesman is no longer a driving factor in its daily and future operations. In the Beginning It would probably not surprise the reader to know that there are dozens of books on the market that offer the definitive history and ‘inside story’ of the Apple Company. Certainly the tale of the creation of the first apple computer has a bohemian aura. According to one author the original designer of the device was not Steve Jobs at all – but Steve Wozniak and a friend of his named Bill Fernandez. Wozniak had dropped out of engineering school and he and Fernandez (who by now had introduced a friend named Steve Jobs) â€Å"built their first computer from parts rejected by local companies for cosmetic flaws† (Linzmayer, 2004). It is true that the first computer they built was in a garage – and the photos of them with their then stylish hair hanging over their foreheads while poring over a part com plete the picture of an era in which people began to believe in the power of their own thinking (versus group thought). This belief is seconded in another recently published tome on the subject of the impact that the Apple company has had on the corporate world. The author teases the reader with this nugget: Two guys named Steve, working in a garage, created a prototype computer designed to be different in a way no one thought possible: It would be easy to use. Those two Steves, one now a billionaire and still at the head of Apple, not only succeeded with that product, but they also broke ground in the business world in ways few thought possible: They proved you could not only have fun at work, but pursuing a capitalist dream could be hip. (OGrady, 2009) It was the beginning of a revolution in this country and the world. Jobs, Wozniak and Fernandez were in and out of each other’s lives over the next few years – supporting each other in technology and money-making ventu res. However, Fernandez was not a part of the Apple Company when it was finally established in 1976. And then there were 2 – Jobs and Wozniak - as a third party sold his shares back to Jobs (for $800) when they incorporated in 1977. Here it becomes difficult to decide what should be put in and what should be left out of the story for sake of time and relevance. The fact is that the