Business Essay 

Question 4:

There are many arguments in favour of Flylo's project.  Firstly entering the Asian market at this time seems wise. Incomes in selected Asian markets are forecast to rise strongly (7.2%) - which is must faster than Europe; Flylo's alternative market to venture into. Demand for air travel is increasing quickly in the Asian market due to it being such a huge place and it's the easiest form of transport, unlike in Europe where other transport methods are popular. Also, as an increase in demand has risen to 12 %, this results in new customers seeking air travel which may lead to Flylo gaining customer loyalty. 

However, there are many reasons why entering the Asian market may be a bad decision for Flylo. The average rate of return on the Asian project is 17.5% which is lower than past figures Flylo have managed to achieve in years such as 2011. Investing so much money in a part of the world new to the business is risky enough. Despite connections with Air Thailand, Flylo have little knowledge regarding the Asian air transportation market, therefore the 17.5% figure does seem discouraging. 

Alternatively, the net present value for this project for the first four years is £84 million, which seems positive - especially considering this would be the first four years of the investment in this type of project. Rhona has admitted a real profit and a relevant share in the market will take some time, but forecasted sales do show a steady rising investment. This suggests that the current time is an ideal opportunity for Flylo to enter the Asian market. 

On the other hand the investment Flylo needs to raise to enter the market (£400 million) is enormous, especially considering Flylo have already borrowed money in the past. The businesses non-current liabilities have risen since 2011 - taking the companies gearing ratio to 52.29%, which is higher than the 50% statistic that suggests a business is highly geared, resulting in a possible rise in interest rates which may lead to Flylo being unable to pay off the loans when payments are due. 

As well as this the company have a poor liquidity rate. Figures decreasing in the past few years along with venturing with Air Thailand (a company in a weak cash position) could threaten and damage the project as a whole. Risky, considering the early stages of the project only suggest small profits. 

However, entering a joint venture with Air Thailand could be deemed a smart thing to do. As Flylo are entering a market completely new to them, teaming up with a company already established in the Asian market and with knowledge of it may help Flylo to establish themselves in the market and although Flylo will have to pay 8% of its Asian revenues annually, the help of Air Thailand giving up some routes etc seems more than worth it. 

When considering both aspects of the argument, it is a close judgement with many pros and cons to each side. Personally, I would recommend Flylo do enter the cheap air travel market in Asia, as I believe there is an open window for it at the moment and Flylo may miss their chance. The rise in Asian incomes as well as air travel being the easiest method of transport in Asia is very encouraging for Flylo and do suggest now is the perfect time. The case study also suggest Rhona Jackman's main aim is to grow the business as a whole and the Asia opportunity would fully support this aim. The fact that it's a joint venture, makes it much less risky especially in the marketing sector. 

As long as Flylo keep costs and prices low in the developing market, I believe they hold a great chance in enjoying a good share in the market that is growing quickly. Flylo should go ahead and venture into the Asian market. 

"Words are, of course the most powerful drug used by mankind.'' - Rupyard Kipling

"Words are, of course the most powerful drug used by mankind." - Rudyard Kipling.
The English Language. To most people just a simple mother-tongue of communication, but to me; an ambition and hopefully my future.
I am a student at Wyke College studying English Language, Law and Business. My greatest skills lie in the ability to communicate effectively through my writing. I have always been fascinated with the English Language and how it has evolved over time, but even more so regarding the patterns in which we put sentences together to create beautiful pieces of work.
My choice of A level subjects and part time work outside of college have enabled me to acquire the skills needed in order to attain a successful career in English.
Studying Business has primarily given me the skills to help interpret and learn pieces of factual and logical information. Studying Law has offered me an additional insight into the way the world works. I have specifically enjoyed learning about how Laws are configured, introduced, and the way in which they are drafted.  I find the various uses of the English Language enthralling, and even more so understanding Latin terms as many Latin words we use in our language today. Both subjects have broadened my recognition of ethical and cultural predicaments, and have thus complemented my study of English. English has helped me analyse and evaluate multiple pieces of text leading to a great understanding of why we all speak the way we do. I find the transformation of the English Language completely intriguing and admire people like William Caxton for playing such a huge role in this compelling evolution of language. Whilst studying the media syllabus of this subject, I became severely conscious of the persuasion we are all subjected to. I found the power of the press phenomenal, and I was fortunate enough to acquire a job right in the heart of journalism at the Press Association; Howden.
I am a copy taker and my job requires me to speak to reporters and type up journalism for national papers such as The Times, The Sun and The Daily Mail. Strict accuracy in grammar, spelling and punctuation is an absolute must, which has lifted my literacy skills to a superb standard. Although working at a fast pace in a busy environment grounded by the need to make deadlines can be stressful; it has emphasised the importance of English and encouraged me to follow my dreams and pursue my hopes of becoming a journalist. As well as being a copy taker, I was lucky enough to take part in some voluntary work to gain more of an insight into the world of journalism. This involved me writing music, leisure and theatre listings for clients such as: The Guardian and The Kent News.  Although constantly writing listings can be repetitive, the buzz I felt when seeing my very own words in print felt wonderful and this prompted me to strive for more.
This lead me to search for further voluntary work experience which resulted in me writing music previews for The Metro in Glasgow. This suited me down to the ground and reassured me that being a music journalist would be my absolute goal. My interests fundamentally stem from music. I established a great love for music early on and this is why I spend my spare time attending in and out of town gigs and festivals that I then write about on my music and culture blog. Attending Glastonbury 2013 was a brilliant adventure for me as it gave me so many fascinating experiences to write about. Although I do this out of enjoyment, I feel it has also elaborated my writing considerably and I therefore want to study English further as a catalyst for my own writing and to heighten my knowledge of a subject that I love.
I am a conscientious, enthusiastic and devoted student and I am confident that I naturally have the skills required to succeed at university.  I look forward to the challenges that a demanding course will bring and the opportunities to learn so many riveting things along the way.