The Air of Spring (Air des Clochettes 2)

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He did not see her standing there. She didn't know how long she'd been staring at him but she was pretty sure she'd been there awhile. She was captured with the way he seemed to be following a young pretty girl in a plain grey dress. Why was this man captivated by lower class? He seemed to be well dressed and responsible. I'll admit, she was good looking. Maybe he has a real big heart, maybe he just wants someone to love. But what did she know, after failed marriages she was beginning to lose hope in men. The spring was alive and brought about a new enthusiasm, and she was once again rejuvenated, feeling the pangs of loneliness nip at her like the insects in the garden. The young girl in the grey dress turned and made eye contact with her. What did she think? Was she judging me? Does she know he's there? She must, for he is quite obvious in his actions. I better turn away, thinking to myself. I wonder what's on her mind, is she thinking the same of me? Surely she must be attracted to my pretty red dress and my expensive jewellery. Her mind drifted off as she thought about her past husbands. Most had married for money or because her father was a top-notch lawyer and they wished to climb the ladders of success, and most of them had been introduced to her by her parents. Being brought up with everything she wanted she did not quite understand and appreciate the value of money, for it had only made her miserable. Now, here she was, 5 and unhappy. She often took walks in the gardens. Young men frequented the area and the sights, sounds, and scents of the gardens captivated her. She moved over to a bench adjacent to the young man. She'd made up her mind, the next husband would be her last and she would do anything at all to keep him. As she was daydreaming, the young man had risen and turned off to follow the young girl. She leaped from the bench and took off around the corner, there they were. The way he diffidently followed the girl gave her a warm feeling, so she gave in and started following. He strode so poignantly, so strong. She could see herself, strolling down the aisle with him. The way all of her friends would envy her, with her handsome rich boyfriend. They would have wonderful, beautiful babies. Soon, he would inherit her fathers house and they would live in the biggest house for miles. Yes, she could see it. She could here the people calling, there goes Misses Jaynie Brougham and her husband. And he would look at her and say, "Jaynie, Jaynie" and then she snapped to and realized it was her chauffeur calling her. "Just another minute, Roberto, I'll be back soon" she replied to him. He diligently got back into his car, and she skipped to keep up with the man. She was thinking of a way to get his attention, a way to meet him more formally. Air des Clochettes was playing at the opera house tonight, she shall ask him to join her. She hated the show, but her father would be there and he probably enjoyed the opera, most high class people did. As she thought the words, she looked around and realized she was not in a high class area. It was getting into the brick row houses that permeated the slums of the city. She began to feel cold, so she buttoned up her jacket now. She checked her watch, almost 500. She had spent hours following the mystery man, only to follow him to his shack in the ghetto. She watched as the woman went inside, and he turned around, hailed a taxi, and was gone. If only she'd had the courage to be seen or talk to him. But maybe it was for the better, what would her father say if she brought home a peasant. Reality was coming on like the spring, and the thoughts had no sooner past than the afternoon. She walked back to the car and got in the back. "Take me home" she said to the driver, and the air rumbled with the sound of the big American car as it drove off toward the big gates of her house.

Written as a second part of air des clochettes to demonstrate use of point of views.

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Activity-based costing

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The method of Activity-Based Costing (ABC) was developed primarily for solving problems which emerged from traditional cost management systems. Troubleshooting in the management of companies throughout the late 70's and especially the early 80's held a constant presence.

The problems generated were mainly from the traditional cost accounting systems' way of functioning which provided the management with inaccurate data. Where the old cost accounting systems failed badly was in supplying the company's management with inappropriate information in order for crucial decisions to be taken in the correct and true perspective of a given company's true position in its market territory. Since this currently accessible "itemized" information could not be provided to a company's decision making sector, the information provided had an impact which of course distorted the decision which would have otherwise been taken in the light of different and more accurate information.

This misinformation had an adverse impact on a multitude of managerial decisions especially in the multi-product firm sector in respect of long-term, mid-term and short-term consequences such as investments in technology, quantity and specification of product production. The accuracy of data on which management decisions are based in order to maximize efficiency and establish one's company identity in a competing market through, besides quality, a selection of sound marketable prices applied in the proper time scale to all of a company's product range, is of paramount importance.

In other words activity based costing pin-points problems by focusing on the activities associated with operating the business. The traditional cost systems haven't the capability to afford this insight, and so do not touch the subject, only in the case of reports that isolate salaries, benefits, and so on.

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If a manager were told that the cutting of cost was first on the list of priorities, he or she would cut headcount, understandably believing that it might possibly be the only largest cost contributor in the entire company. But today people are not the major cost contributors, it is, in fact, the cost of the activities that people are engaged in which contribute more to the firm's costs. How often have we heard the lament, the workload is the same although we have cot down staff by ten percent? Activity based costing allows managers to attribute costs to activities and products much more accurately than conventional accounting methods. This method is more than an accounting tool. These tools give you a view of what you have done financially and are fundamental to shareholding disclosure and the statutory reporting. But it is just as equally important to have the ability to be able to translate this cost information into the language of operational units and the business in which it is to be applied. With activity based costing management is in a position get a strong and comprehensive, internal view of the company products or services and customers. Armed with this information, the management of a company is automatically put in a position where financial, operational, and strategic decisions can be made, such as outsourcing and pricing.

Activity based costing identifies the activities that are responsible for costs. It is sometimes calles Transaction costing and its major advantage over other methods is that it can greatly enhance the tracability of overhead costs. This can result in more accurate unit cost data for managers, if placed into the correct hands. Activity costs are passed on to products or services only if the product or service uses the activity, for example activities consume resources, and products or services consume activities and so on. As the number of activity measures increases, activity based costing is better able to capture the underlying economics of the companys operations, and the reported costs of activities, products and services come to light. In addition, activity based costing analyzes all activities that exist in a company in order to support production as well as possible and deliver goods and services as efficiently as possible.

The optimum accuracy in costing can be attained by recognising four general levels of activities within a company, each of which can be further subdivided into specific cost activity centres. These four are as follows;

Unit level activities. These arise as a result of the total volume of production going through a facility. An example could be the consumption of power as a result of the number if hours required by a machine to complete all units on a production line which could be thought of as a unit-level activity. Some companies recognise one unit-level activity centre but most companies recognise two; One related to machine activity and the second related to labour activity.

Batch- level activities. These could include things such as placement of purchace orders, shipments to customers. Costs at batch level are dependent on the number of the batches produced rather than on the number of units made, or sold. The actual cost of, say, placing an order would be the same for one item or 10,000 items, so the total cost generated by a batch-level activity would be the function of the times an order would be placed rather than on the total quantity of items ordered.

Product level activity. These are specific and are related to the support of the production of a particular product like for instance special test routines, machine maintainence inventories.

Facility-level activities. All of these activities relate to the production as a whole and therefore are usually combined into a single activity centre. These costs can include such items as insurance, property tax, athletics facilities for the workers.

Where companies are using Activity based costing as a secondary system they should not add facility-level costs to the products. This can lead to misleading data made available to managers and in turn result in wrong decision making, however, most companies do this whether Activity based costing is their primary or secondary system.

There are various approaches for designing and implementing an activity based costing system. The size of the company and desired outcome must be considered before even thinking about, let alone attempting to make the transition from a traditional cost accounting system to an activity based costing system. Larger firms should consider pilot programs before implementing the new system across the whole organization.

The most basic approach is to use activity based costing in conjunction with a companys current accounting system. In this case, software which has been developed over the years for this specific purpose can be bought to help structure the tiering down from the traditional accounting system to a detailed activity based accounting configuration. The traditional accounting system is still used and the activity based costing structure is an add-on or shadow system to be use when specific information is needed for a management based decision. An off line system can allow an organization to improve its cost information without disrupting their current information and financial systems. This is recommended for small firms or as a first step towards full activity based costing integration for a larger firm.

At the other end of the spectrum, activity based costing can be used in place of the traditional accounting system. Every cost related facet of the accounting system would be reported to the activity based costing structure. In order to institute major organizational change, all employees must fully incorporate activity based costing into their work practices and use it as their primary source of business information. Cost and performance measurement systems and all incentive systems, for obvious reasons, have to be tied to the activity based costing numbers. The advantage of using activity based costing as the sole accounting system is that it will be used consistently for daily managemental decision making and employees will not retreat to their old practices. A traditional accounting system usually cannot report costs by processes because the purpose is to help the accounting department keep the books. The purpose of activity based costing is to help operations do their job by making cost information available at a level that everyone can use for day to day decision making.

The biggest obstacle to incorporating activity based costing as a way of life is employee resistance. Unit managers may be afraid that activity based costing is just a way for senior management to discover detailed information about a department or to reveal inefficient practices that had previously been hidden by the traditional accounting system. The corporate culture must be such that new information is not used against a business unit.

Instead, all company employees should be encouraged to dig up problems and inefficiencies so that all of those practices can be changed and decisions can be made that will benefit the company as a whole. The decision to adopt the system taken, it is essential that everyone should understand and agree that a cost-conscious approach is the companys priority, and activity based costing is the tool to make that possible.

Managers of lower levels should be part of the activity based costing system implementation team as well as representatives from manufacturing, engineering and information systems since all of these people will be using the system coherently. A diversified group also helps achieve a higher level of acceptance and ownership throughout the company. Information on the progress of the new system should be available to everyone at any time. Before any implementation is put into action, it is helpful to convince key employees to give activity based costing a fair chance before they are made redundant. Once the system is in place and employees see its benefits first hand, they are likely to be excited about being involved with the new system. To obtain continued support from employees, management must show that information from the activity based costing system is actually being used to make decisions and track performance on every level. When the new system promotes changes that reduce costs and eliminate inefficiencies, employees should be made aware of how their efforts have positively contributed to the increased profitability of the company. By doing this, employees will feel like an important and inseperable part of the new operation and thus offer less resistance when it comes down to implementing the activity based costing system.

Another important step to implementing activity based costing and getting buy-in at all levels is extensive training. All employees must be educated in the principles and mechanics of activity based costing. Depending on the level of involvement, employees may be trained in the basic concepts of activity based costing, problem solving, information analysis or how to build a new activity based costing system.

Implementation of activity based costing can take anywhere from to 15 months depending on the size of the company or plant. After the new system is in place, the old accounting system should be disguarded as soon as possible if activity based costing is to be used exclusively.

The process for setting up a new activity based costing system is not simple and goes beyond the scope of this paper. A matrix must be established for each product that tracks all activities performed for the product and all of the resources the activities consume. This information is probably not readily available and must be dug up. This can be done through searching existing documentation and historical cost information, workshops, surveys and interviews with the people who do the work. Many statistical measurements must be developed to spread overhead costs to products and processes. Larger companies usually hire a professional in activity based costing to help get the system up and running correctly.

The reason activity based costing produces such significant results is that it changes the culture of the organization. If a companys priority is to make cost conscious decisions and eliminate inefficiencies and unprofitable activities, then all employees must be given the tools, the know-how and the encouragement to work towards that objective. Activity based costing provides visibility to information that was previously hidden in a traditional accounting system especially when companies adopt Just-in-time inventory systems, eliminating inventories and reducing costs.

Therefore, it is my considered opinion that if given the right data and correct incentives to make the required adjustments to corporate culture, employees will have the means and the motivation to work towards eliminating excess costs and to work towards achieving the most affordable product possible.

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Self-Evaluation

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I had taken Introduction to Acting last semester and I enjoyed it so much that I decided to take Advanced Acting this semester. The closeness the class develops after they have worked together is something you can hardly experience in another class at college.

I came into the class with some knowledge of acting and I expected to learn as much more as I possibly could. I had done some plays in junior high school, but they were all not the kind that I could say I did with experience. I wanted to know how to connect to my character. My main concern was knowing how to portray myself as the person I am playing. We definitely worked on that in class. I think all the questions that were asked to be answered painted a clear picture of who our characters are. For example, making a history for our character, why is he/she saying this?, who is he/she talking to?, what kind of setting?, etc... All these questions helped me to personalize my characters and to therefore do a better job at performing them.

I think from the time I first came into class till now, the end of the semester, I have definitely changed. We did our first performances without knowing much about what was expected, but as we went along it was explained that what was missing or what needed to change to make the scene work. By the time I was doing my final scenes I already knew what was to be expected. I am not saying I became a professional because I know that takes years (or just plain talent), but I did learn a lot and I am more knowledgeable that any one else at Baruch.

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Along with the professor I have to say that I had a lot of help from my various Self-Evaluation (Cont'd...)

partners. When two people think about the scene the result is much better than if I were doing it myself. Your partner can tell you where your lines might not be working the way your saying them, whereas for you alone it might be difficult to tell. You can also play off your partners emotions better than you can play off the reactions of some imaginary person on the wall. I also have to say that our partners were chosen almost very accurately for us. When the scene partners get along the scene becomes more enriching.

What pleased me about this class is that we had a lot more performing to do than the last class. I thing that is a challenge; to remember all those lines and emotions and not get confused. I like the fact that we did monologues. That was definitely something I have never done and it was a nice experience.

I don't know if I want to pursue acting as a career, but it is something that I would like to consider part time. Not so much television or anything, I know I can't do that, but theater is definitely an option I'd like to keep open. What I' like best are the comedies. I would love to do more comedic plays. I feel I can do my best in those rather than serious plays.

I feel theater has an important role at Baruch because Baruch is a business school. What I mean is that students can get bored really easily of all these classes about accounting and financing, and to make their experience at Baruch more fulfilling, so they won't turn out like zombies, I feel there should be theater classes at Baruch. Theater is like real life. People need to experience at least some type of theater, if not acting then watching a performance, so they can understand real life a little better.

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Alcoholism and Teens

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Alcoholism And Teens

Alcoholism refers to the drinking of alcoholic beverages to such a degree that important things of an individuals life - such as work, school, family relationships, or personal safety and health; are seriously and repeatedly interfered with. Alcoholism is considered a disease, meaning that it follows a characteristic course with known physical, and social symptoms. The alcoholic continues to consume alcohol even though the destructive consequences he/she may face. Alcoholism is serious, and a very difficult habbit to break. If not treated, it may be a habit that cannot be broken, or maybe even a fatal problem.

It is generally thought that once the disease has developed, the alcoholic will not drink normally again. It is important to note that the particular symptoms and pattern of drinking problems may vary with the individual. Alcoholism is, therefore, a very complex disorder, and this complexity has led some researchers to question the accuracy of the disease of alcoholism. There are generally four basic types of alcoholism. The first type is called Alpha Alcoholism. It is being purely psychological dependent on alcohol (Haskins, 84). With Alpha

Alcoholism the person depends on alcohol to relieve bodily and emotional pain.

This stage and all stages are serious in teens drinking, because any alcohol intake is dangerous for teens still developing mentally and physically. Another term for this alcoholic behavior is often called problem drinking.

The second type of the alcoholic behaviors is called Beta Alcoholism. It does not involve either psycological or physical dependence on alcohol. But yet worse on your body than Alpha Alcoholism because the heavy drinking may lead to ulcers, cirrhosis of the liver, damage to the nerves, and kidney problems(Haskins, 85). Beta alcoholics have a shortened life expectancy and suffer from financial and emotional demands due to excessive over drinking. Just like smoking, it costs money like everything else, the demand for alcohol will get to the circumstance of pinching every penny to just get one more drink. The third drinking behavior is Gamma Alcoholism, the alcoholic becomes physically dependent on liquor. So this means that the bodies tissues, become tolerent to the new substance and the tissue becomes immuned to it, and the the bodie tissue needs the constent pressence of alcohol. Gamma alcoholics crave the need for alcohol but yet can only live without alcohol for a short peroid of time. If the

Gamma alcoholic does not get there alcohol there body reacts very violently.

Gamma alcoholics is one of the most common types of alcoholism in the United

States. The fourth type of alcoholism is Delta Alcoholism. In Delta alcoholism the drinker cannot stay away from liquor for even a day or twowithout suffering from withdrawl syptoms. Usually this type of alcoholism is found where alcohol is drank customarily. Addiction to acohol is very much like addiction to heroin.

Alcoholism is a very tough habit to break, many people that have been classified as a alcoholic can never have a normal life again. Teenagers that are alcoholics are much more easily disturbed than adult alcoholics. In the near past the

United States has been expeirenceing a widespread use of alcohols by teenagers (Haskins, 40) Today there aree some 500,00 alcoholics between the ages of ten and nineteen, and it is estimated that one of every fifteen young people today will eventually become an alcholic(Haskins, 4). Teens drink for curiosity and to act like adults, not only that but peer presure and just to look cool in front of friends. Parents are a stong influence to teenagers to not drink or limit the use of alcohol by young people, as statistics show. If none of the parents in the United States drank, then neither would most of there children(Haskins, 105). Teenage drinking is getting to the point where the age group is getting younger and younger, it is now not uncommon to find teenagers with alcohol problems in nine-, ten-, and twelve year olds(Haskins, 1).

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Drama Reflection on "Los Vendidos" by Luis Valdez

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Drama Reflection on

"Los Vendidos" by Luis Valdez

"Los Vendidos" is a wonderful light-hearted play by Luis Valdez, which he creates using, satire, irony, and comedy. Valdez uses many of these elements to portray how Mexican Americans have struggled to find their identity in America. He uses satire to demonstrate how the American government needs the support of Mexican Americans, but does not return that support. He uses irony by using Mexican American characters throughout the play to create various stereotypes of Americans attempting to obtain what they want. Throughout the play Valdez uses a comedic air to portray the stereotypes of Mexican Americans that have been created by Americans and are in some ways expected in our American society. The comedy, satire, and irony all combine to create a wonderful drama about how Mexican Americans have struggled to find their identity.

The play begins with Ms. JIM-emez, who has denied her heritage and pretends to be ignorant to the Chicano ways while at the same time is unable to escape her own culture. Ms. Jimenez, a secretary from Governor Reagan's office, has come to Honest Sancho's Used Mexican Lot and Mexican Curio Shop to search for a token brown-skinned person who can fill a token position in the governor's office. She wants someone who will not stand out too much but will show the Governor has a brown-skinned person on his staff. She is looking for someone who is dark, but not too dark, and suave. Valdez wrote Ms. Jimenez was looking for someone who was "Beige, just the tone." This implied that this token brown-skinned staff member would be beige in politics, too, and a "yes" man to all the politicians who want him around just to make them look good! As Ms. Jimenez continued her search for a Mexican American for Governor Reagan's staff, each character sold-out both their races and their way of life.

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The characters in "Los Vendidos", which means the sell-outs, sold themselves out on both the Mexican American and American way of life. In fact the Mexican American character showed great disrespect for his Mexican heritage when he said, "The problems of the Mexicans stem from one thing alone he's stupid, he is under-educated, he needs to stay in school. He needs to be ambitious and be forward looking, most important he needs to think American." With this statement, he showed some of the imperfections, flaws, and weaknesses of Mexican Americans, which I believe showed great disrespect for his heritage. He definitely cannot decide if he wants to live as a Mexican American or as an American. He is not only selling his heritage out, he is selling himself out.

This was a very enjoyable play that I would love to see portrayed on stage. In fact, having actual Mexican American characters would make it even funnier. Reading it in class with the Mexican accents and Mexican/American accents was hilarious and a wonderful technique. It really made an impression on me. It is just amazing to me how we all stereotype people without even realizing it!

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Resonance Mining

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It has long been known by scientists that sound waves that cause our eardrums to vibrate, thus producing a physical effect that our minds can interpret as sound, have similar effect on others substances. Most notable is the ability of certain opera singers to find a pitch so acute, so exact that when produced with sufficient volume it can shatter crystal. Many have experience the sympathetic thump in one's chest in response to a particularly loud firecracker or the rattling of windows in response to thunder. It perhaps will come as no surprise, then, that scientists have looked into the possibility of using harnessing this effect for industrial purposes.

One such attempt was in mining. In the mid-160's research was done into developing a machine that would use sound resonance to reduce different composites of earth to rubble without the need for digging or blasting. Some of the challenges encountered were inventing an amplifier capable of emitting enough volume to be of any use, manufacturing a speaker big and sturdy enough to emit such a sound without itself disintegrating, and targeting the sound such that only the area needed would be shattered and not all of the surrounding terrain with it.

Constructing the amplifier and speaker was done with much experimentation but relative ease. And the exact frequency of sound required for differing composites of stone was easily found through trial and error. But finding a way to target the sound presented a problem that seemed insurmountable. They tried sound funnels, sound dampening such as white noise, and even placing smaller speakers close to the stone at strategic points. None of these were very spectacularly successful.

Eventually the effort was abandoned for three reasons. First, environmentalists had long been after the government to pass laws against strip mining using high-powered jets of water to completely tear down great portions of land just to find the minerals within and the effect of this sound technology promised to be very similar to that technique. Second, attempts to focus the sound were proving to be increasingly less likely. And thirdly, the mining industry underwent a sudden and steep recession much like the high tech industry has just recently.

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Years later a geologist, Dr. Jerome Fundt, was amusing himself by exploring the reports and papers written on the results of the sound experiments that had been done, and something in them struck him with an idea. As mentioned above a portion of the experiments involved trial and error to determine which frequencies of sound affect which different composites of stone and earth.

Using these findings, Dr. Fundt developed a technique of geographic sampling that was just as effective as core-sampling, in which a long 'core' of earth is literally plumbed from a surface, drawn out and the strata studied for composites. Dr. Fundt developed a technique by which sound was sent into the earth of stone and the resulting resonance was measured. Accurate to within mere fractions of fractions of inches, this technique proved effective in accomplishing the exact same sort of results that core sampling did without the difficulty have having to bore through solid stone and sometimes metal deposits.

Moreover, this technique helped mining companies find deposits of different metals without having to dig around at random seeking signs of them. Using Fundt's sound techniques they could locate specific deposite, dig directly to them for extraction and save much more land than had previously been saved before.

Today the technique includes computer imagery and tri-dimensional modeling, so that not only now can miners find deposits, they can determine the exact length, depth and width of those specific deposits and see a picture represented on a monitor in D. Because of these sound techniques, mining is as much a science today as it is labor, more efficient and cost effective and much more environmentally friendly.

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Enterprise Rent-A-Car: Selling the Dream

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IN THE FAST LANE

On a bright January 18 morning, Dean Pittman, Enterprise Rent-A-Car's area rental manager for Durham/Chapel Hill, North Carolina, got out of his Dodge Intrepid at Enterprise's new office in Durham. He admired the line of clean cars and the new office with its green and white Enterprise sign. To Dean, it seemed that dreams really did come true.

A little over six years ago, Dean had graduated with a degree in industrial relations from the University of North Carolina at Chapel Hill. When he'd first scheduled a job interview with Enterprise, Dean had been skeptical. Although he didn't know much about the company, he wasn't certain that he'd like renting cars for a living or working a retail job that included washing cars. But he'd seen the potential to advance quickly, to develop strong management skills, and to learn something about running a business.

Once hired, Dean had been promoted quickly to management assistant, then to branch manager at Enterprise's new office in Rocky Mount, North Carolina. A year ago, Enterprise had made him an area manager, giving him responsibility for the Durham/Chapel Hill areasupervising three branch offices with employees, 45 cars, and annual revenues of more than $ million. Dean felt as though he was running his own business. Enterprise gave its managers considerable autonomy and paid them based on a percentage of their branches' profits. Dean's starting salary had been in line with those of his classmates, but within three years his pay had doubled, and now it had tripled. There couldn't be many other companies, Dean thought, in which a person his age could have so much responsibility, and so much fun, and such high earnings.

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COMPANY BACKGROUND

Dean's good fortune mirrored that of Enterprise itself. The company's founder Jack Taylor started Enterprise in 16 with a single location and 17 cars in St. Louis, Missouri. Since then, Enterprise had grown dramatically to become the nation's largest rental car company. In fact, Enterprise had grown at a compound annual rate of 5 percent for the past 11 years. By 17, the company had more than ,000 locations, 5,000 cars, $.1 billion in sales, $5 billion in assets, and 0,000 employees.

A WINNING STRATEGY

Analysts attribute Enterprise's success to several factors. First, cars have become a more important part in people's lives. They just can't do without their cars, even for a day or two. And, as more and more families have both adults working or are single-parent families, there is often no one else in the family who can pick up people when they have car problems. Tied in to this, the courts ruled in the 170s that insurance companies had to offer coverage in their policies.

Beyond these environmental factors, the company's success resulted from its single-minded focus on one segment of the rental car market. Instead of following Hertz, Avis, and other rental car companies by setting up branches at airports to serve national travelers, Enterprise built an extensive network of neighborhood locations serving the "home-city" marketpeople who needed rental cars as replacements when their cars were wrecked, stolen, or in the shop being repaired. Because these customers were often stranded at a body shop or repair garage and had no easy way to get to a rental office, Enterprise offered to pick them up.

However, Enterprise's first customer in the replacement market is often the referral sourcethe insurance agent or auto body shop employee who recommends Enterprise to the st4randed customer. Few of Enterprise's customers get up in the morning thinking they'll need to rent a carbut then they're involved in a wreck. So, employees visit the referral sources frequently, often taking them donuts or pizza as a way of thanking them for their business. They call on referral sources that may not be doing business with Enterprise, and they keep insurance agents apprised of a car's repair status.

Auto Rental News, an industry trade publication, estimates that the replacement market is growing at 10 to 15 percent per year (see Exhibit 1). The entire rental car market, including airport rentals and the travel segment is, about $14.6 billion.

Enterprise's rental rates in the replacement market tended to be lower than rates for comparable rentals at airport-based companiessome analysts estimated up to 0 percent lower. The company tended to locate its offices in city areas where the rent was much lower than at the airport. It also kept its cars a little longer than the typical airport-rental company. These two factors, and a focus on efficient operations, helped it keep rates lower.

A second segment of the home-city market that Enterprise has begun to serve is the "discretionary" or "leisure/vacation" segment. Friends or relatives may visit and need a car, or the family may decide to take a vacation and feel that the family car is really not as dependable or comfortable as they would like. More and more people are renting for trips just to keep the extra miles off the family car.

Finally, Enterprise is also experiencing growth in the local corporate market. Many small businesses and some large ones have found that it's cheaper and easier for them to rent their fleets from enterprise than to try to maintain their own fleets. Colleges and universities have realized that it's cheaper to rent a 15-passenger van when the soccer team travels than to keep a van full time for only occasional use.

Enterprise's success in the home-city market has attracted competition. Although Enterprise had the largest share of that market, a handful of major regional competitors, such as Spirit and Snappy, when combined, captured a large market share. The airport rental companies such as Hertz, Avis, and Alamo, got only a small portion of the home-city business. Hertz is just starting a small operation that focuses on the home-city replacement market. Local "mom-and-pop" firms that often have just one office and a few cars serve the reminder of the market.

Enterprise grew very quietly, depending on its referral sources and word-of-mouth promotion. It wasn't until 18 that the company did its first national advertising. At that time, marketing research demonstrated that if you showed people a list of company names and asked them to identify the rental car companies, only about 0% knew Enterprise. The company started advertising nationally but kept its ads low key. By 17, it had more than quadrupled its annual advertising and promotion spending, using the theme "Pick Enterprise. We'll pick you up." However, although the company's research shows that about one-third of those surveyed are aware of the company's pick-up service, and only about one-third are aware that it has branches near by.

THE IMPORTANCE OF CULTURE

Although the company's strategy worked well, that strategy was driven by Jack Taylor's philosophy. Taylor believed that the employees' and the company's first job was to serve the customer. From the beginning Taylor urged his employees to do whatever they had to do in order to make the customer happy. Sometimes it meant waiving charges. Other times, it meant stopping everything and running out to pick up a stranded customer. Employees knew that they needed to do whatever it took to make customers happy.

Further, Taylor believed that after customers came employees. He believed that to satisfy customers, a company had to have satisfied, challenged employees who worked as a team. All of Enterprise's branch employees, from assistant manager on up, earn a substantial portion of their pay based on branch profitability. In addition, the company has a profit-sharing plan for all employees. Enterprise hired primarily college graduates and promoted from within. Ninety-nine percent of its managers started as management trainees at the branch level, so they understand the customer-oriented culture. As important, they understand their local markets and the needs of customers in those markets. Thus Enterprise is really a collection of small, independent businesses, with the corporation providing capital and logistical support.

Finally, Taylor believed that if the company took care of its customers and employees, profits would follow. Sure enough, Enterprise has consistently been profitable in an industry where many firms have not been.

WHAT'S NEXT?

The question is, how can Enterprise continue to grow and prosper in the face of growing competition? The company believes it can double its revenues by the year 001, but to do so it must wrestle with a number of growth-related issues.

First, it must continue to attract and retain college graduates. The company needed to hire over 5,000 management trainees in 17 alone, and that number will increase. Yet many college grads, like Dean Pittman, may know little or nothing about Enterprise and may have negative feelings about working for a rental car company. How can Enterprise do a better job of recruiting college students?

Second Enterprise must exam its marketing strategy. Which market should it target? How should it position itself in those markets? Are there new services it could offer that would make sense given its current strategy? How can it do a better job of increasing Enterprise's awareness among targeted customers? How should it respond as new competitors, including the airport-based firms such as Hertz, attack the home-city market?

Perhaps the most important question is how can Enterprise continue to grow without losing its focus and without losing the corporate culture that has been so important in helping it and its employees, like Dean Pittman, realize their dreams?

QUESTIONS

1. How are the buyer decision processes different for someone renting a replacement car because of a wreck, for someone renting a car for leisure/vacation purposes, for a business renting a car, and for a college graduate looking for a job?

. What are the bases for segmenting the rental car market?

. What marketing recommendations would you make to Enterprise to help it improve recruiting?

4. What marketing recommendations would you make to Enterprise to improve its marketing strategy?

5. Will Enterprise's strategy work in international markets?

Exhibit One The Replacement Car Rental Market Competitors, Revenue Estimates, and Other Market Data

I. Competitor Revenue %Replacement Cars In Services

Enterprise Rent-A-Car .61 billion 78% 15,000

Ford and Chrysler Systems 40 million 8,50

Snappy Car Rental 100 million 100 15,500

U-Save Auto Rental 115 million 60 1,500

Rent-A-Wreck 85 million 5 10,4

Premier Car Rental 66 million 100 ,500

Advantage Rent-A-Car 76 million ,000

Spirit Rent-A-Car 50 million 100 7,500

Super Star Rent-A-Car 4 million 100 5,50

Independent companies 750 million 5

Airport-based companies

Hertz, Avis, Budget, Dollar,

National, Thrifty, Alamo 60 million 100

II. Industry Average Pricing

Estimated industry average price per day for replacement rentals, not including additional insurance coverages or other rentals, such as cellular phones Industry average daily rental is $. Industry average rental period for replacement rentals is 1 days. Additional insurance coverages produce about 5% of revenue, with other rental options producing about % of revenue. Per day rental rates are often established through rational contracts with insurance companies or automobile manufacturers' or dealers' warranty reimbursement programs.

There are approximately 150 major US airport rental markets. Airport-based rental rates vary widely depending on competition. Airport rental companies also negotiate corporate rates with individual companies.

III. Overall Rent-A-Car Market

Overall 16 US market estimated at $14.6 billion broken down as follows

Business Rentals40%, Leisure/Discretionary rentals%, Replacement Rentals7%

IV. Advertising

Advertising Age estimated that US car rental companies spent $84.4 million in measured advertising in 14, about .8% of revenue. It estimated that Enterprise spent $ million in 14 up from $1 million in 1. Enterprise's 14 spending compared with $47 million spent by Hertz, $1 million by Alamo, and $4 million by Avis

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