Michelin Star Rating System Analysis

Michelin Star Rating System Analysis Michelin Star System Chapter 2 Literature Review The system of rating organisations with a particular business sector according to the value and quality that these organisations provide to the end user, by methods such as those used by the Michelin Guide Star System is nothing new. However, it is important for the owners of these organisations to understand the relevance of such systems. For example, are they most relevant to the consumer in terms of meeting their needs and expectations and thus influencing behaviour or to the organisation in terms of improving its standing within the business sector and strengthening brand awareness? Commencing with the consumer, this critical literature review is intended to provide an understanding of the current theories and observations relating to these particular issues. 2.1 Consumer needs and satisfaction Abraham Maslows (1998) hierarchy of needs theory is recognised by most academics as having created the foundation for all subsequent research into understanding the consumer, providing a framework that allows organisations supplying a product of service to better understanding how they need to present these in order to satisfy the consumer need, thus achieving their objective of increasing market share. The research carried out by Szmigin (2003) and Porter (2004) also confirms that the success of a businesses strategy is also dependent upon the extent to which that strategy is designed to meet and therefore address the perceived satisfaction levels of the consumer. Figure 1 Maslows hierarchy of needs Esteem needs achievement, status, responsibility, reputation Self-actualization personal growth and fulfilment Belongingness and Love needs family, affection, relationships, work group, etc. Safety needs protection, security, order, law, limits, stability, etc. Biological and Physiological needs basic life needs air, food, drink, shelter, warmth, sex, sleep, etc. In relating the Maslow theory directly to the satisfaction of needs of the consumer with regards to their restaurant experience, it can be seen from the above diagram (figure 1), that this is dependent upon the level at which the consumer is within the hierarchy. For example, it is likely that those at the three basic levels of need will be less driven by optimal quality than price and pace to fulfil that need (Noone et al 2007 and Namkung and SonCheong 2007). The satisfaction of these levels of need is likely to be more important for the tourist sector of the hospitality industry, where the meal is expected to form just a part of their overall vacation experience (Atila and Fisun 2003). However, where esteem and self-actualisation becomes more important is when the consumer wants to make a statement that separates him or her from the crowd. For example, if a salesperson wishes to make an impression with a prospective client, they are likely to want to dine in a restaurant that delivers a higher level of quality. In other words they will be looking for a perfect experience that will satisfy those they are trying to impress (Gupta et al. August 2007 and Chemlinski, R., 2006). 2.2 Consumer behaviour The behavioural patterns of consumer, as with all human reactions, are dependent upon reactions that can result from a psychological, emotional or physical influence. One of the most influential factors that influence consumer behaviour is that of memory. Everything we do is affected by memory, and this will drive our conscious and sub-conscious reaction to a particular event and the ultimate choices that we make. However, the memories formed are also affected by the manner in which pre-existing experiences interpret them (Zaltman 2003, p.186). For example, if we have had a bad experience at a particular restaurant in the past, it is likely that this will deter us from repeating the experience, irrespective of how that particular restaurant may try to re-package the experience. One of the difficulties that the restaurant owner has with delivering satisfaction of needs to the consumer of their product results from the fact that memory determinants of consumer choice are driven by both conscious and unconscious thought processes and therefore can be almost impossible for an outsider to see and measure, let alone alter (Zaltman 2003, p.15). This is certainly true in relation to actions resulting from subconscious memory as, in this case, as Bagozzi et al (2002, p.132) observe, even the person making the choice could be unaware of why they have reacted in the way they did. The memory processes will influence the manner in which the consumer makes a judgement about the benefits of the restaurant product and service being offered. Based upon previous memories it will subconsciously inform the consumer whether the expected experience is likely to be negative or (Zaltman et al 2002, p.68). Furthermore, the consumer will also then use that memory to judge whether th e experience will lead to a satisfaction of their current level of need (Maslow 1998). 2.3 Branding and the consumer Brand image is another important factor that will influence the consumers choice of purchase. It is an almost automatic reaction of the consumer to make an association between the brand and what it denotes. For example, in terms of restaurants and hospitality, the brand McDonalds automatically conjures up an image of fast, cheap food or the burger type variety. Irrespective of the adjustments that the burger chain tries to make to their products, such is the depth of that association within the mind of the consumer that it will be almost impossible to change Haig (2004, p.78 and 85). Once a brand has been created therefore, changing the consumers perception of it is extremely difficult. One of the problems that the Michelin Star System has in respect of brand image is that it has, consciously or unconsciously within the mindset of the consumer, created an image of quality, but with that quality being achieved at a price. In the minds of certain segments of the consumer public this puts their recommendations beyond the bounds of affordability, irrespective of whether it will satisfy their needs (Surlemont et al 2005). However, Porter (2004) would argue that the differentiation in terms of the quality of the product and the price premium could have certain competitive advantages. For example, it would appeal to those who wish to set themselves apart from the masses or, as indicated earlier, are trying to create an impression for their own purposes. Furthermore, as the research on consumer behaviour conducted by Zaltman (2003, p.227) suggests, this differentiation may also be able to produce satisfaction in terms of another influential factor that exists within the con sumer decision-making process, this being peer influence. It is well recorded that our perception of what others think has a significant influence upon the way we make decisions. For example, we will often make decisions simply in an effort to be connected to a particular group or segment of people. As mentioned earlier, within the restaurant experience this may manifest itself in the need to impress others. However, in the hospitality sector it can be said to be equally true that people will dine at a certain restaurant simply as a means of making a statement, which indicates to others that one is within a different consumer group. In this case, the consumer will be satisfying the Maslow (1998) levels of need that relates to self-esteem and actualisation. 2.4 Restaurant recognition Literature does however show that the Michelin rating system and the recognition it brings does make a difference within some areas of the sector (Guide 2008). From listening to the videos of the comments of Gary Rhodes and Anthony Demetre (Video Links 2008), it is apparent that to the proprietors of the restaurants concerned both consider that it improves the quality of their respective brands, which in turn will enhance the business drive for success. This view is reinforced by the reaction of those who lose or fail to gain stars, which shows obvious disappointment (Latest news 2008). 2.5 Summary In the opinion of the author, the literature evaluated for this review shows why there is such a diversity of opinion regarding the relevance of the Michelin Star System within the current restaurant sector of the leisure and hospitality sector. There are those whose theories argue that, except for the higher levels of satisfying the consumer needs (Maslow 1998), which relate to self-esteem and actualisation, it has little impact upon the average consumer. Similarly, many consumers perceive that its influence is more related to the pricing strategy and restaurant environment than in delivering service satisfaction to the consumer (Snyder and Cotter 1998). However, employees and owners within the industry would argue that the Michelin Star has a beneficial impact in that it increases the strength of the brand (Balasz K 2002) and that it denotes an assurance of quality that the consumer can rely upon. Chapter 3 Research Methodology As McGivern (2006, p.4) observes within her study on the subject, research is about a systematic investigations to find things out, which means that the researcher has to devise a system of methods and rules to facilitate the collection and analysis of data (Hart 2006, p.28). Thus it follows that the particular method adopted for any research project has significant importance in relation to the intended aims and objectives of the study being conducted. Essentially, data used in a research studies can be collected through one of two methods. These are the primary resource, which often entails the direct collection of data through the use of surveys, interviews and questionnaires, or the secondary resource, which relies upon the use pre-existing data (Clark 2002). The decision that every researcher faces is which of these methods, of combination thereof, is most appropriate to the subject matter of their research project. Bearing these factors in mind, the intention of this chapter is to provide the reader with an outline of the methodology chosen by the author for this study into the Michelin Star System. 3.1 Choice of research design The restaurant sector of the leisure and tourism industry in which the Michelin Star System operates is diverse, both in terms of the numbers of participating market players, the business models used and the consumer audience to which they appeal. With the UK Michelin guide covering a total of over 4,500 hotels and restaurants (Hickman 2008) it is also a sizable sector for any research to cover. Furthermore, due to the importance of the restaurant sector in relation to the leisure and tourism industries, together with its influence upon the consumer, there is a proliferation of pre-existing academic and practical data available in relation to this sector, which is being increased on a regular basis. These include empirical studies in targeted leisure and hospitality journals, observations from external stakeholders such as magazines and newspapers and numerous regularly conducted questionnaires and surveys. The considerations to be given to the choice of the research design was therefore to assess whether this level of secondary data would provide a sufficiency of information to add value to the research being conducted or if approaching the research using a primary data approach would prove to be of more relevance to the aims and objectives that form the basis of this paper. In the final analysis the author decided to design the research around the secondary data approach. In reaching this decision, there were several reasons for the discarding of the primary option. The first of these took into account the limitations that would attach to primary data collection. Of necessity, the completion of this research is restrained by a definitive time set for its completion. Furthermore, in view of the size of the sector, it was considered that to construct and conduct a sufficiently robust primary data choice, through the use of questionnaires and interviews would be cost prohibitive. For example, there would need to be a sufficiently large sample of such data collection achieved through restaurant employees, consumers and other stakeholders to create a representative sample, which in the authors opinion could not be achieved within the prevailing limitations. It is recognised that secondary data has two potential disadvantages. Firstly, with this method, the researcher is reliant upon the validity of data being collected from an external source over which they have no control; therefore there is no direct knowledge of the responses and theories available. Secondly, there is also the issue of the validity of the data to be considered. However, its main advantage is the depth and breadth of the amount of data available. It choosing a design based upon secondary data it is recognised that there are two potential disadvantages. Firstly, with this method the researcher is reliant upon the validity of data being collected from an external source over which they have no control; therefore there is no direct knowledge of the responses and theories available. Secondly, there is also the issue of the validity of the data to be considered. However, in addition to the limitations attached to the collection of primary data, there were also positive reasons for choosing the use of secondary data as the foundation for the design of this research paper. The first of these relates directly to the fact that, from an initial exploratory examination of the data field, it is apparent that much of the secondary information is of a higher quality and has a more extensive coverage than could be achieve from a primary method (Punch 1998). Secondly, as the aim of this dissertation concentrates upon the current value and relevance of the Michelin Star System, it is necessary to study the differing views and theories of academics and researchers in respect of those who are likely to be affected by the system, including the restaurant operators and their customers. In this respect the theory relating to business branding, quality and competitive advantage, such as those promoted by Arnold (1992) and Porter (2004) need to be considered. From the customer aspect, understanding the needs, expectations and behavioural patterns need to be included. For this area was considered that the academic studies and theories promoted by authors such as Abraham Maslow (1998) and Szmigin (2003) are also relevant. It is generally accepted that these authors have a high level of expertises and therefore, as Dingwell (1997) and Steward and Kasmins (2003) suggest, their works will adds a higher level of quality to the research being conducted for this study. In reaching the choice of using secondary data for the design of this particular research, the author took the same view as other researchers, such as Steward and Kamins (1993), McGivern (2006) and Hart (2006). These authors suggest that the type of methodology used is not overly important providing the data and information collected is reliable, trustworthy and resolves the questions being posed within the research aims and objectives. The author is confident that the choices for secondary data made fulfil these criteria. 3.2 Construction of the chosen method It is important that the correct approach is used in dealing with the quantity of data collected and its subsequent analysis and evaluation. This is particularly the case in terms of eliminating any bias that exists within the mind of the author. In this particular case it is the considered view of the author that, potentially, the research may conclude that the Michelin star system is only of relevance to the internal stakeholders of the restaurant sectors, namely the chefs and owners, and is paid little regard to from the consumers viewpoint. Therefore, in selecting a range of between thirty and forty references from a range of databases, which includes books, professional journals, reports and surveys, websites and other online resources, these issues have been borne in mind. For example, in order to balance the potential bias, resources have been chosen that support the current relevance of the Michelin Star System current relevance as well as those sources that take the opposite viewpoint. Similarly, for the same reason it was felt the relationship between consumer needs, behaviour and branding also needed to be addressed, as this will provide a view of the influence that a Michelin Star brand has upon the end user of the restaurant facilities. 3.3 Sample The sample of literature used within this research has been chosen from a number of relevant sources. In the main the concentration has been upon selecting resources from the most current available sources, being generally that produced within the last two to three decades, as this was considered to be the most appropriate for the issues being discussed. Similarly, the sampling was concentrated mainly upon the UK. The only exception to this was in cases such as Maslows hierarchy of needs, which is considered to contain the founding principles of consumer behavioural determinants. With the exception of the theoretical literature, where the approach of author choice was made for the reasons discussed in section 4.1 above, the sampling method used was based upon the maximum variation approach (Hart 1998 and 2006) as this was felt to provide a firm foundation from which to address the objectives of the study. 3.4 Procedure The procedure used for the collection of the secondary data was through the normal database channels of journals, books accessed from libraries and speciality bookshops and online resources. However, these searches were further defined to ensure that there was a direct relevance to the tourism and leisure industry, with particular concentration upon hospitality. 3.5 Data analysis Having collected the data using the previously defined methods and selection choices, it then needed to be analysed and evaluated. A dual approach was used for this purpose. The first stage involved correlating the data into differing viewpoints, for example those who considered the Michelin star relevant and those that did not. The second stage required evaluating the relevance that the various theories studied had in a practical application. Chapter 4: Findings As has been discovered within the literature review, there are conflicting opinions as to whether the Michelin Star system of quality measurement is of value within the restaurant industry. Using available secondary data within this chapter is in tended to present an analysis of the findings of the current opinion and research on this issue, which will then be discussed in depth. 4.1 The Michelin Star reward system The Michelin Guide, which derives its name from the Tyre company from which it originated, was first introduced in France in 1900 (Johnson et al 2005). Its original intention was to assist drivers with technical and travel advice. From there it developed into a tourist guide until eventually, in the 1930s, it became the gastronomic guide that it is renowned as today. By 2005 the Red Guide, as it had become known, was selling over one million copies across eight countries (Johnson et al 2005). Restaurants and other eating establishments cannot be included within the guide until their location has been visited and the meals judged by a dedicated team of inspectors. In order to avoid accusations of bias and to ensure independence, these inspectors are employed by Michelin and are required to pay for their meals and any accommodation that may be required. In fact, they also do not inform the establishment of the reason for their visit until after their inspection has taken place. In this respect, Michelin suggest, and other research has confirmed (Balasz 2001), the results of the inspections show a greater level of independence than that of some other guides, which give advance notice of the inspection and do not expect to have to settle the meal bill. According to the Michelin Guides Direct, Mr Naret, the Michelin inspectors are also not swayed by the name of the chef or the establishment. This was made evident in a recent interview where he said, Inspectors arent looking at the name. They dont care whether the chef is on television or how many of his cookbooks you might have on your shelf. They enter the restaurant and look solely at what is on the plate: the quality of ingredients, how they are cooked, how well the flavours are kept, presentation, personality and consistency (Foster 2007), although as will be discussed later, there is some disagreement over this claim. The Inspectors, of which there are currently around 70 operating throughout Europe, are persons who have had at least five years experience within the hotel and catering industry, particularly in respect of the cuisine element. Prior to being allowed to commence their inspection duties, these persons also have to undergo a vigorous six months training programme to ensure that they meet with and maintain the required Michelin standards (Johnson et al 2005). Michelin states that on average one inspector will perform the following tasks during the course of a year: Inspect 240 meals per annum Undertake 130 overnight stays Submit 1000 reports It has to be stated that this is an exceptionally heavy workload for one person. It is partially because of this level of activity that some expert observers, and indeed restaurateurs themselves, have called into question the quality, appropriateness and validity of the inspection teams work and conclusions. This element of concern is discussed in later sections within this chapter. The guide includes a wide range eating establishments, most of which are included simply for information purposes, with these totalling around 50,000 in number, a level that is constantly increasing. However, amongst this number around five percent are picked out for special mention, these being rated based upon the awarding of the coveted Michelin Star to them. There are up to three stars available, the awarding of which depends upon the consistency of quality and, as Johnson et al (2005) explain, To some extent tradition. Michelin denote the definition of their stars as follows: One Star A very good restaurant in its own category Two Stars Excellent cooking, worth a detour Three Stars Exceptional cuisine worth a special journey. One always eats extremely well here, sometimes superbly. In 2005 a further merit recognition was introduced, which was called the Bib Gourmand. This is awarded to an establishment that had not quite managed to reach the level of quality required to achieve one star status, but which was considered by the inspector to be able to achieve that position within the near future. Although there is limited information available as to the criteria which is used for the determination of the star level being awarded, in the main this relies upon the standard exhibited within the following five areas: Meal ingredient quality Culinary skills exhibited in preparation and the combination of flavours Level of creativity that has been displayed How consistent the meal standards at the establishment are Monetary value of the product 4.2 General academic perception of the Michelin Brand and competition Academics such as Johnson et al (2005), Yuksel and Yuksel (2003) and Balasz (2001) have mixed views about the quality and relevance of the Michelin Star system. Yuksel and Yuksel (2003) in their research into the systems entry into the Japanese culinary market, suggest that, in that country at least, the guide fails to take into account the people factor. In other, it is being suggested that by using paid professionals, the Michelin organisations does not pay sufficient attention to the qualities of reliability and satisfaction that lead to repeat usage of the establishment by the consumers. This area is considered by many academics that study consumer behaviour to be of equal importance to the standard of the fare being offered (Bagozzi et al 2002) and should therefore be incorporated into the Michelin procedures. The second element of concern expressed related to the pressure that the Michelin Star System placed upon the establishment chefs and owners. Although, as Johnson et als (2005) research concluded, the possession of a Michelin star does not guarantee profitability, its loss was discovered to have serious implications for the business, with some experiencing revenue reductions of up to 50% when this situation occurred. Issues of a practical nature in relation to the Michelin Start system have also been raised by many observers. There is a general view that the reflection of changes within eating establishments is not dealt with efficiently by the Michelin inspectors, with the awarding or removal of stars failing to keep up with these changes in many cases. There is little doubt that the excessive workload of the Michelin inspectors outlined in section 4.1 is a contributory factor in the occurrence of these delays. Furthermore, it is felt by many that, outside of the Star system originating market, France; the rating system lacks the same level of reliability. This will be evidenced by the response from the Japanese restaurant industry presented in the following section. Surlemont and Johnsons (2005, p.589) research also indicated that, in their opinion, there were some flaws within the Michelin star system. In the first of these it was noted that there were restaurants included within the varied stars that did not merit their positions, which adds to the perception that there might be a problem with the quality and reliability of the system and its operating procedures. Secondly, the lack of a structured measurement process being implemented by Michelin, its awarding of stars being solely at the discretion of inspector reports, did mean that the chefs had no definable target to aim for. Instead they simply had to develop their own style and be patient, and hope that it would be noticed and appreciated by the Michelin inspectors at some stage. Another area that has been questioned with regard to the Michelin Star system is its prevalence for print guides. Although the company has recently introduced online facilities for consumers to respond to the content of the guides, the main method of information distribution is through the published guides, which at prices starting at around 9.99 ($20.00) is seen by some consumers to be quite expensive, especially as access to restaurant reviews and comments is freely available through the Internet. Bagozzi et al (2002), indicate that consumers pay a considerable amount of attention to peer pressure and comments, and the Internet provides them with access to this type of response. Others such as Zaltman (1998) also suggest that the reliance upon peers can be a strong determinate for purchase, thus if consumers recommend restaurant brands in many cases this will produce a more positive effect upon others than the professional approach of recommendations provided by Michelin. The recen t drop in guide sales in Europe shows that this situation is affecting the strength of the Michelin brand, at least in this geographical area, and is seen as part of the reason for the guides expansion into the US and Asia. In addition, there are competitors to Michelin Guides. There are two that are particularly worthy of note. The first, which has built a significant market share in the UK, is the AA Rosette system, which is awarded to hotels and restaurants for their culinary standards. In this case there is a five star system in operation, with the lowest being awarded to restaurants of note in their particular location to the highest being awarded to establishments that are considered to be world class. There are consumers and observers who believe that the AA Rosette system is a more reliable indicator of quality than Michelin. The other guide that is receiving good reviews, and like the Michelin guide originates from France, is the Zagat guide. What has brought this guide to the attention of culinary observers is the fact that its rating system is based upon an aggregation of the opinions of unpaid individual consumers their experiences of the restaurant establishment (Gobe 2002, p.139). Michelin would argue that this is not a professional approach to the determination of quality, standards and culinary skills. Nonetheless, the fact that the Zagat guide is increasing in popularity indicates that it is having an impact upon consumer choice and behaviour. 4.3 Industry reaction to the Michelin Brand Within the culinary industry itself there is considerable debate about the value of the Michelin star system, with the supporters and opponents of this accolade being equally vocal in expressing their views on the subject. For example, in terms of country bias, a survey of 791 Michelin-ranked restaurants conducted by Johnson et al (2005) conducted throughout eight countries indicated that France was favoured in the awarding of stars, with it being home to 62 percent of the one-star restaurants, 67 percent of the two-star restaurants, and 25 of the 32 three-star operations. Furthermore, its financial importance to financial success is also argued. For example, whilst Belasz (2002) suggests that holding a Michelin star can provide an establishment can be a key determinant for its financial success, Johnson et al (2005) disputes this claim, finding in their research that in most cases there was no indication of this being the case, at least in terms of profitability. However, Johnson et al did concede that the Michelin star made a difference to revenue in most cases, although this does not mean that the restaurant became more profitable as a result. The impact that the Michelin stars have had upon chefs and their reactions to the system has also been diverse. As Balasz (2001 and 2002) mentions in her research into behaviour and leadership within the hospitality industry, chefs belong to the rare species of individuals who are able to take on the duel role of businessperson and creator at the same time. Referring also to their dedication to the craft of culinary creation, Balasz also mentions that chefs approach this with an almost sacred obsession and in this respect they aspire simply to be the best. Therefore, it is not surprising that the Michelin star system has a significant affect upon these people. There are many chefs and culinary establishments that crave being awarded the stars and make little secret of this desire. For instance, in addition to the response from TV chefs Rhodes and Demetre (Video links 2008), one of their peers Gordon Ramsey, whose various establishments are said to currently hold the most number of stars (12), was also delighted with the recent additions to this elite club, which occurred with the recognition of his restaurant based in Manhattan, New York. In the Editorial (2007), Ramsey expounded the view that it showed the quality and customer value that the staff at the restaurant delivered to the customer. However, other US food critics and observers did not share Michelins opinion, branding the food as overcooked, rubbery, leathery and a distinct disappointment. Nevertheless, other American chefs are supporting of the Michelin rating system. Eric Ripert and Mario Batali, both of whom have been starred by Michelin have indicated that it is important to their businesses (Petkanas 2006). Ripert s

Decision Making Condition & Example Essay

1.1 Introduction Decision Making is very important thing that we do in everyday lives. According to Harris, R (2010), decision making is the study of identifying and choosing alternatives based on the values and preferences of the decision maker and making a decision implies that there are alternative choices to be considered. In addition, we are not on to identify as many of those alternatives as possible but to choose the one that has the highest probability of effectiveness. Just as there are different types of decision, there are also different approaches to decision making that are appropriate in different situation. Some decisions are made logical and rational thinking, while others are made using experience and sometimes based on the performance of a practiced skill. Decision making also can be described as the act of choosing one alternative from among a set of alternatives available. The decision making process includes recognizing and defining the nature of a decision situation, identifying alternatives, choosing the best alternative, and putting it into practice. In the decision making environment, there are three categories that is decision in certain condition, in uncertain condition and also in risky condition. The certain condition in making decision is where we have confidence and belief to get the best outcome in a single answer. The decisions maker also have to gain the comprehensive information regarding the situation occur in order to assist in his/her decision making. Meanwhile, uncertain condition in making decision is when the decision maker does not have knowledge of information where it is impossible to accurately describe for future outcome, more than one possible outcome. The decision maker also needs to have a high tendency towards risks to make the decision. Risky condition in making condition is where the decision maker has very limited of information and as a result, it is hard for them to predict the outcome. This risky condition can only be assumed based on information provided and probability that situation will occur and whether the situation really happen or otherwise cannot be completely ascertained as suggested by Shahrul A.A. et al (2011). He also said that decision maker or manager has limited information to assist in making the decision in risky condition even though the information obtains is not complete. In this topic, we will analyze the three conditions in decision making environment, examples for each category and also conclusion for the topic. 2.0 Decision Making in Certain Condition Decision making in certain condition implies that we know with 100 percent accuracy what the states of nature will be and what the expected payoffs will be for each state of nature. Harold. K(2009). He also believed that decision making under certainty is the easiest case to work with because with certainty, decision maker assume that all of the necessary information is available to assist them in making the right decision, and their can predict the outcome with a high level of confidence. This condition is ideal for problem solving and it is simply to study the alternatives and choose the best solution. Decision making in certain condition also occur when we know all information about alternatives and the best chosen one is the most effective. Meanwhile, Dr. John Bukowski (2012), believed that one method we can use to help decide is the cut-off screening method. Here, the decision maker predetermines a cut-off for each criterion. Then, the decision maker goes through each criterion and eliminates any choices that don’t meet the cutoff. If more than one choice remains, the decision maker could consider additional criteria or restrict the cutoffs. If all choices have been eliminated, the decision maker can relax the cutoffs. 2.1 Example of Decision Making in Certain Condition There are several examples using the certainty condition in different kind of situation. One of the example, is during making a choice of transportation from point A to a point B. Transportation ABC can take the person from point A to a point B in 10 minutes with the amount of RM 2.00. While transportation XYZ can take the person in 15 minutes with the same amount. With having limited time and money, and using the information completely given, the rational decision maker is able to know the best choice of transportation that he/she have to use to get to the destination, that is transportation ABC. In this situation, the decision maker can make the decision easily without any other probability of deciding for other option. 2.2 Second Example of Decision Making in Certain Condition Another example of making decision in certain condition is buying a new house. Mr. Ali is working at the city but he is currently living in flat house and his house located quite a distance from his workplace. Mr Ali getting promoted to the senior level, thus, he is thinking to buy a new house. His budget is RM 300,000 and he is looking for a house near at his workplace. House option A provides a bungalow house that near to the workplace, but the price is higher than his expectation that is RM 500,000. Meanwhile option B provides a new double-storey house also near to his workplace but with a less amount that is 280,000. From the information, Mr. Ali can make a decision using his budget limitation and also time saving going to work daily, the best option for Mr. Ali is Option B. 2.3 Third Example of Decision Making in Certain Condition The next decision making is on certainty is buying a car. Mr. Edward have his own family with 3 kids. Currently, Mr. Edward want to upgrade his car from his compact car into MPV size and is willing to pay not more than RM85,000 for the new car. There are several car manufacturers that selling the MPV Segment that is Proton Exora that cost RM 80,000 with value for money, good re-sell value and good maintenance. While Nissan Grand Livina will cost RM 90,000 and Toyota Wish will cost him RM 130,000. Using this information, Mr Edward have sufficient information to decide which one is the best option in term of value for money, maintenance, quality, insurance, and also re-sell value. Using this complete information, and the decision that based on facts, opinions and reasonable info, the best option for Mr Edward is Proton Exora. 2.4 Fourth Example of Decision Making in Certain Condition Mr. Gopal are trying to decide between three used cars, all of which are priced the same. If he want to buy used car number one, there is a 70 percent probability that he will have to spend RM400 to get the engine back in shape. However, there is a 30 percent probability that the engine will have to be replaced, which will cost him RM2, 000. If he chooses car number 2, there is a 50 percent probability that he won’t have to spend any money at all, a 30 percent probability that radiator repairs will cost only RM450, but there is a 20 percent chance that the car will require a new set of radiator that will cost him RM 1,500. If he choose car number three, he will face a 60 percent probability of an RM200 transmission repair, a 35 percent probability of a small transmission adjustment, and a 5 percent possibility that he will need to spend RM500 to fix the engine and the transmission. After considering information that he have and the cost for repairing of each used car, the best buy for him is the used car number 3. 3.0 Decision Making in Uncertain Condition A decision making in uncertain condition is when there are many unknowns and no possibility of knowing what could occur in the future to alter the outcome of a decision. It is also when the information received by decision maker is so poor that he/she cannot even assign probabilities to the likely outcomes of alternatives, thus making it an uncertain condition. Decision making under conditions of uncertainty is also an everyday task. When we decide whether or not to go out without bring the umbrella fearing it will rain, when deciding on whether or not to wear a helmet for cycling on the street or when deciding whether to take the bus or bus to work, the decision maker have to make a decision that involves outcomes that are in uncertain condition. According to Martin T. Schultz et al (2010), uncertainty can be classified either as input uncertainty or model uncertainty. Input uncertainty arises from a lack of knowledge about the true value of quantities used in analyzing a decision. In practice, model uncertainties are much more difficult to deal with than input uncertainties because they require the analyst to propose and evaluate competing models (Casman et al. 1999). 3.1 Example of Decision Making in Uncertain Condition Ahmad runs a small company that manufacture low-cost ergonomic stool and he sold via the Internet. His company has several popular models, each with annual sales of RM100,000 to RM150,000. He has an opportunity to invest in a new technology of manufacturing stool. Ahmad knows that a new technology will cost RM220,000 and is unsure whether there will be sufficient demand for the stool to cover this large investment. If the market is good, he thinks he can sell 4,000 chairs at a profit of RM100 each, generating a cash flow with present value of RM400,000. On the other hand, if the market is poor, he thinks he might sell only 1,000 chairs, generating a cash flow with present value of RM100,000. In this situation, ahmad does not have any information to help him decide and it is hard for him to make a decision from each probability that he made. Therefore he must use his rational and his business experience to make a best choice in order not to make his company loss in profit. Ahmad needs some skills and methods to make decisions under uncertainty. He needs techniques that match the limited time and money budgets of his small company. Therefore, this situation on decision making, he will try to have higher propensity and more practical level for the small business. 3.2 Second Example of Decision Making in Uncertain Condition Hassan, who is recently retired, has the opportunity to pursue his lifelong dream of operating a charter fishing business on the Langkawi Island with his retire savings of RM 50,000. Hassan has located a used charter fishing boat that he can purchase for RM 40,000. He realizes that this is a risky investment with many uncertainties, but he must reach a decision on whether or not to buy this boat by the end of the month. If he does not operate a charter fishing business, he will leave the money in an existing investment that is guaranteed to yield a 5% annual return. Hassan’s decision has been framed as a choice between a charter boat investment and an alternative investment. If the profits from his charter boat investment would exceed the returns from the alternative investment, he will invest in the charter boat. In this example, Hassan has applied the passive approach to adaptive management because the information he uses to update his decision is not obtained. Although the information is not obtained as part of the decision-making process, he used past experience and information to make the decision. According to Dr. Hossein, A.(2001), Business decision making is almost always accompanied by conditions of uncertainty. Clearly, the more information the decision maker has, the better the decision will be. Treating decisions as if they were gambles is the basis of decision theory. This means that we have to trade off the value of a certain outcome against its probability. 3.3 Third Example Decision Making in Uncertain Condition Another example is when analyze the weather patterns in the city ABC, forecasted by meteorological department. Sometimes the data provided by meteorological department is not always accurate to the people thus involved uncertainty condition. The most common weather that usually occurs was high winds, heavy rain, and lightning storm. For example they are predict City ABC will get a storm and heavy rain at night and as a result one of the live concert will be held at night do not know whether to cancel the show or go on due to the forecast. In this situation, people will understand that forecasts involve uncertainty with the future weather forecast because when they do not enough information, they have to estimate on their own and in this uncertainty, people have only a rely data base, they do not know whether or not the data are reliable, and they are very unsure about whether or not situation may change. According to Keltie, Denise.(2007), they used both rules and tools to deal with the uncertainty created by weather conditions and in terms of rules, they often relied upon heuristic strategies (cognitive rules of thumb) to help with decision making. 3.4 Fourth Example Decision Making in Uncertain Condition A local film producer has a developed a script and it is starting to cast the movie. The budget allows for the film is RM 50,000 for the male lead actor and RM 30,000 for the female lead actor. There are three actors that may be suitable for the male lead, and just two female actors that may fit the part of the leading lady. How does the producer decide on the individual actors and on the combination of two actors? According to Sharaf N. R.(2012), he suggested that in areas such as movie business, book publishing, and television programming, decisions are often reached on intuition, hunches, opportunities, and the pressure that a decision has to be made by a certain date. He also said, in the absence of time, relevant data, and funds, the decision makers rely on their intuition, gut feelings, and experience. In such situations, common sense suggests that an experienced person is more likely to make a better decision than an inexperienced person is. 4.0 Decision Making in Risky Condition In a risky situation, factual information may exist, but it may not complete. Rowe, W (1988) believed that whenever the decision maker has some knowledge regarding the state of nature, he/she may be able to assign subjective probability estimates for the occurrence of each state and in such cases, the problem is classified as decision making under risk. Shahrul A.A (2011) suggested that the decision maker will not know for sure the situations that will occur in the future and minimal information will only give some insight in predicting what will occur. He also said, whether the situation really will happen or otherwise, cannot be completely ascertained. The situation in risky condition usually related to management that has to deal with the market, insurance and investment. With limited resources and information, it becomes clear how important to make the right decision to avoid any losses or damage for decision maker. According to Geoffrey, C and Thomas, W. (1999), in risky condition, decision maker must assign a probability to each State of Nature and in some cases, research will reveal historical relative frequency information that we might conclude reveals the underlying probabilities. 4.1 Example of Decision Making in Risky Condition One example of risky decision can be seen in car running system. Car used to have simple ignition systems, with a distributor driven from the engine, the accelerator was a linkage from the pedal to the old system of carburetor. If the car was not running right, or there was another problem, it was simple to monitor and repair. Today’s car ignition systems are computer controlled with many sensors and actuators, the linkage from the gas pedal has been replaced with a computer, and the carburetor has been replaced by a fuel injection module. If something goes wrong, we can read out a manual code and try to determine which of the components and interconnections for each of the problem. The car running system is an example of the need for a more formal approach to risk based decision making and also risk management in car design and technology. 4.2 Second Example of Decision Making in Risky Condition Another example of a decision made under risky condition might be in the following situation, A manager in a supplier department decides to spend RM1,000 on a magazine ad believing there are three possible outcomes for the advertisement to have influence in their sales. A 25 percent chance the advertisement will have only a small effect on sales, a 55 percent chance of a moderate effect, and a 20 percent chance of a very large effect. This decision is made under risk because the manager can list each potential outcome and determine the probability of each outcome occurring. 4.3 Third Example of Decision Making in Risky Condition The following situation is in hypermarket department store. Their monthly sales statement for every month is increase. Thus, their manager is able to assume that the company will obtain net profit this year after making losses last year. Without obtaining other information such as operational cost, change of taste in consumers and environment influence, they can only assume that the company will obtain a profit based on the sales trend for the past few months. Therefore, state that the probability that the company will obtain profits is 60% and the probability that the company will make losses is 40%. With this, the manager will make a decision to increase investment. Here, the manager made a decision in a risky condition that is, it is not known whether the company will really be making a profit or otherwise. 4.4 Fourth Example of Decision Making in Risky Condition An example of a decision made under risky condition would be, for a manager of a medical research company, the decision of whether to spend RM 10 million on the research and development of a new technology on surgery equipment. The profits from the research and development spending will depend on whether the government will imposes new plan for the price regulations on new technology in the medical industry. Thus, on this condition, the manager must take the risk whether to carry on with the plan or cancel for the research. The two states of nature facing the manager in this problem are, 45 percent the government will impose price regulations or 55 percent the government will not impose price regulations for the new technology. While the manager have the limited information with the profits that will occur under either state of nature, the manager has risky condition of the probability that price regulations will be imposed on new technology. Under such conditions, a decision is made under risky condition. 5.0 Conclusion The decision making is an everyday task for us. We make decision making in environment using three kind conditions in everyday of our life, whether when we should use the car to go work, when we buying a new house, make a investment, expand our business, travelling and more. There is a lot of possibility and choice that we have to decide using these three conditions that is certain condition, uncertain and risky condition. We have to decide using the information and experience because good decision making requires not only knowing the facts, but also understanding the limits of knowledge. If we don’t have good understanding, experience and knowledge in decision making, we might ended in losing profits in our investment, regrets in purchasing a new car or house and even loss in our business. 6.0 References : Casman, E.A., M. G. Morgan, and H. Dowlatabadi. (1999). Mixed levels of uncertainty in complex policy models, Risk Analysis 19(1):33-42. [3 November 2012] Daniel Straub, Isabell Welpe. (2011). Decision-making under risk: a normative and behavioral perspective. Geoffrey Churchill, Thomas Whalen. (1999). Robinson College of Business Georgia State University: Decisions under Uncertainty. Retrieve at http://www2.gsu.edu/~dscthw/8350/decis-w.pdf [16 November 2012] Harris, R. (2010, November 22). Evaluating Internet Research Sources. Retrieved from http://www.virtualsalt.com/evalu8it.htm [6 November 2012] Harold Kerzner. (2009). Project Management: A Systems Approach to Planning, Scheduling, and Controlling, Tenth Edition. John Wiley & Sons Publisher. [5 November 2012] Hossein Arsham . (2001).Tools for Decision Analysis:Analysis of Risky Decisions. Retrieve at http://home.ubalt.edu/ntsbarsh/opre640a/partix.htm [11 November 2012] John F. Bukawski. (2012). Quantitative Reasoning, by Alicia Sevilla and Kay Somers, ISBN 1-931914-90-7 . Retrieved at http://jcsites.juniata.edu/faculty/bukowski/ma103/topic11.htm [4 November 2012] Keltie, Denise. (2007). Ski Operations Managers’ Decision Making Under Uncertainty: Management Decision Making. [6 November2012] Kiker G.A. et al. (2005). Application of Multicriteria Decision Analysis in Environmental Decision Making. Integrated Environmental Assessment and Management, 1(2), pp. 95–108.[4 November 201] Martin T. Schultz, Kenneth N. Mitchell, Brian K. Harper, Todd S. Bridges. (2010). Decision Making Under Uncertainty: U.S. Army Engineer Research and Development Center. [5 November 2012] Rowe, W. (1988). An Anatomy of Risk. R.E. Krieger Publishing Company [10 November 2012] Shahrul Aman Ahmad. et al. (2011). Principles of Management BBPP1103. V. Nov 2011. OUM. [2 Nov 2012] Sharaf N. Rehman.(2012). Decision-making Under Conditions of Uncertainty: The American Association of Behavioral and Social Sciences Journal.(The AABSS Journal, 2012, Volume 16).[5 November 2012]

Inadequate Disposal Of Wastewater In Mauritius Environmental Sciences Essay

It was in 1984 that Mauritius started recognizing that unequal disposal of effluent in Mauritius is going a turning menace to the belowground H2O, the surface H2O resource every bit good as to the Marine and coastal ecosystem ( United Nations 2004 ) . In 1988, the Government of Mauritius ( GOM ) , with the aid of the World Bank, prepared the National Environmental Action Plan ( NEAP ) and was endorsed by the GOM in 1990. In 1992, the sewage Master Plan was developed by the GOM based on the recommendation of the NEAP, which has for aims to suppress a sound effluent direction in the state ( United Nations 2004 ) .1.1 Why H2O is treatedAlthough nature has an astonishing ability to get by with little sums of H2O wastes and pollution, it would be overwhelmed if we did n't handle the 1000000s of gallons of effluent and sewerage produced every twenty-four hours before let go ofing it back to the environment. Wastewater intervention cut down pollutants in effluent to a flat nature can manage . The major purpose of effluent intervention is to take every bit much of the suspended solids as possible before the staying H2O, called wastewater, is discharged back to the environment. As solid stuff decays, it uses up O, which is needed by the workss and animate beings populating in the H2O. Treating effluent therefore helps us to take attention of our environment and our ain wellness. Keeping our H2O clean is an of import precedence for many grounds. ( WMA, 2010 ) 1.2 Purpose of the undertaking: – To transport out a critical rating of the wellness effects on the dwellers populating near the intervention workss in Mauritius. 1.3 Background: – Cognition about intervention works as environmental jeopardies and their wellness impacts is mostly missing in Mauritius and there have been really small study carried out internationally in this subject, therefore earlier surveies have besides been taken as mention.2.0 Literature reappraisal: –In this subdivision, the assorted surveies on wellness issues related to intervention works have been reviewed.2.1 DefinitionsThe definitions below were quoted from the Oxford dictionary eight edition. Health ( Page 543 ) : – ( 1 ) â€Å" The province of being good in organic structure or head † ( 2 ) â€Å" A individual ‘s mental or physical status † ( 3 ) â€Å" Soundness, clairvoyance. fiscal or moral ( the wellness of the state ) † ( 4 ) â€Å" a toast rummy in person ‘s honor † For this undertaking we will see merely the definition 1 and 2. Perception ( page 883 ) : – ( 1 ) â€Å" Capable of comprehending † ( 2 ) â€Å" Reasonable, spoting, observant †2.2 Types of intervention PlantsIn Mauritius there are two types of intervention workss: –( 1 ) Solid waste intervention works. ( 2 ) Wastewater intervention works.2.2.1 Solid waste intervention worksThe Ministry of Local Government and the Rodrigues Regional Assembly are responsible for solid waste direction. Solid waste aggregation is undertaken by the local governments in countries under their legal power and disposed of at the Mare Chicose landfill via a web of transportation Stationss situated at St Martin, Roche Bois, Poudre d'Or and La Brasserie. The transportation Stationss carry out compression of waste prior to their transit to the landfill site. The Mare Chicose landfill, which was originally planned to have 400 metric tons of waste day-to-day, is now having about 1000 metric tons as the Mare D'Australia landfill has non been implemented. Hence, the life span of the disposal site at Mare Chicose has dramatically been reduced from 19 old ages to 8 old ages. Green ( or garden ) waste is estimated to stand for a important portion ( every bit high as 60 per centum ) of collected waste, imparting itself really easy to composting. ( WMA 2009 )2.2.2 Wastewater intervention works.Effluent or sewerage or waste contains polluted stuffs which are suspended, dissolved or left in the environment ( Gobba 2006 ) .If the untreated sewerage is straight discharge to a watercourse, it will do terrible pollution and will show danger to public wellness. Therefore a intervention works is designed to take wastewater that is acceptable to the environment. ( Thorn et al. 2001 )Long-run aims of a intervention worksThe long-run aims of intervention undertaking are to – Prevent the spread of diseases. – Prevent the prevalence of conditions offensive to spy and smell. – Control the taint of H2O resources. – Prevent and control dirt and land H2O pollution. ( Rylander 1999 )2.4 Specific aims of a intervention worksThe specific aims of the intervention undertaking are to: – Establish a reliable intervention works that is cost effectual option to conventional mechanised intervention and disposal installations. ( WMA, 2009 ) Pull off the infective hazard inherent in effluent to run into the wastewater discharge criterions set by Mauritius Ministry of Environment and the MOH & A ; QL. ( WMA, 2009 ) Eliminate or pull off the safe disposal of sludge. ( WMA, 2009 ) Every state generates waste ; municipal, sewerage and risky waste are inevitable by merchandises of the developed and developing states ( Harrison 2003 ) . To revise how intervention works signifiers portion of the immediate environment ( Elliot et al. 2001 ) reported that 80 % of the United Kingdom population lives within 2 kilometers of a pumping station.2.5 Components of intervention workssA intervention procedure is classified into different classs: – ( 1 ) Screening chamber ( 2 ) Imhoff armored combat vehicle ( 3 ) Biological trickling filter ( 4 ) Humus armored combat vehicle ( 5 ) Sludge dry bed ( 6 ) Deposit pool ( 7 ) Leaching field. 2.5.1 Sreening Chamber: – coarse solids are prevented to come in the imhoff armored combat vehicle by the saloon screen. 2.5.2 Imhoff armored combat vehicle: – this armored combat vehicle like a infected armored combat vehicle and has combination of two procedures. Sedimentation takes topographic point in the upper part of the armored combat vehicle and accumulate sludge undergoes anaerobiotic decomposition at the underside. 2.5.3 Biological dribbling filter: – wastewater go forthing the imhoff armored combat vehicle goes into a dosing chamber and so to the biological trickling filter, which consist of extremely permeable media. Presettled wastewater from the dosing armored combat vehicle is equally distributed over the filter bed by revolving distributer and drips down through the bed. The wastewater which comes out, the latter goes to a humus armored combat vehicle. 2.5.4 Humus armored combat vehicle: – wastewater that goes to the humus armored combat vehicle and it is pumped back to the imhoff armored combat vehicle. This procedure is called re-circulation and it improves the operation of the filters. 2.5.5 Sludge drying bed: – the sludge accumulated in the imhoff armored combat vehicle is emptied on drying beds and left to opened air for drying. 2.5.6 Sedimentation pool: – the deposit pool is besides call ripening pool and its major importance in the system is to take infective beings from the wastewater. 2.5.7 Leaching field: – the intervention provided by agencies of subsurface soaking up besides known as leaching field, provides a combination of physical, biological and chemical mechanism which treat the wastewater farther. ( Hammer et al 2001 )2.6 International perceptual experience about sewerage intervention worksA public perceptual experience study on sewerage intervention workss carried out in selected countries in Selangor and Kuala Lumpur by C.P Tso, revealed several interesting and unexpected findings. The general perceptual experience forms sing smell, noise and ocular impact suggest that the sensed strength is a map of clip ( C.P Tso 1990 ) .It was noted that plagues constitute a serious nuisance to which version was non possible ( C.P Tso 1990 ) . The manner a sewerage intervention works is managed has a great influence on the perceptual experience of public ( Narain 2006 ) . A intervention works was inaccurately build in the Republic of Lebanon, where this state of affairs non merely did non do the authorities to lose a batch of money but the public sentiment was on intervention works worsened ( MEFA 2006 ) In India, the state of affairs is more helter-skelter, Delhi has already got 17 sewage intervention workss, which together add up to 40 per cent of the sum installed sewerage intervention capacity in India. But the fact is that these workss remain grossly underutilized. The metropolis does non hold drainage to convey all the body waste to the sewerage intervention workss. It is expensive to construct sewage drainage but even more expensive to keep it. Today, the majority of the metropolis is non connected to belowground drainage. It besides finds that it can ne'er mend plenty. The terminal consequence is that where there is a sewerage intervention works, there is no waste to handle. Yamuna is Delhi ‘s river ; the fact is that Delhi has already spent a immense sum on cleaning the small stretch of the Yamuna which flows through the metropolis. The grounds are the flower and bury mentality of people in Delhi ( Narain 2006 ) .2.6.2 Situation in MauritiusIn Mauritius 25 % of the pop ulation is connected to sewer pipes which goes to a pumping station by the action of gravitation and from at that place, the sewerage are pumped to interventions workss, there, the sewerage are treated and the treated H2O is used for irrigation or is safely dispose in the ocean. WMA is responsible for the sewage substructure and sewerage and intervention installations in Mauritius. 75 % of Mauritanian discharges their effluent in unfastened underside cesspools or infected armored combat vehicles. When these overflow, they hire a vacuum truck to empty them and the wastewater is brought to the intervention works. ( L'express 2009 )2.6.4 Treatment workss in MauritiusIn Mauritius there are 18 intervention workss and 36 pumping station as shown in table 1.0 in Appendix A ( beginning: WMA 2009 )2.7 Sewage disposal – A tabu topicSewage and its disposal have frequently been considered forbidden topics, peculiarly in Asiatic Countries, and therefore necessitate more than merely technology cognition to cover with them efficaciously. Perceptibly, sewerage is considered a forbidden substance because it reveals to adult male a negative side of his being that he would prefer to bury ( Faechemet et al. 1981 ) .2.8 Concern of the common people about sanitationAlthough, long ago, authors like Xoomsai ( 1988 ) and Hamsa ( 1989 ) have pointed out the deficiency of equal sanitation installations in the development states, it is now that common people have started speaking about. The populace are the most of import participants in the sewerage generation-transmission-treatment- disposal rhythm and their positions and attitudes should be considered earnestly ( Kuszmider 1997 ) . The common feeling that the populace ‘s function is merely in the coevals stage of the sewerage rhythm has to be abolished if efficient planning is to be effected. The governments may hold significantly by sing the positions and attitudes of the populace.2.9 Rules and Regulations to be followed before constructing a intervention works.In Mauritius, there are certain regulations and ordinance about edifice of a intervention works.2.9.1 Environmental Impact AssessmentFirst of wholly, an EIA study should be prepared in conformity with the Part IV of the Environmental Protection Act 2003. The undermentioned subdivisions should be considered individually:

Technology Is A Wonderful And Ever Advancing Science That

Technology is a wonderful and ever advancing science that has now created another host of problems for parents in this day and time. Internet and other data usage is often a source of conflict for teens and their parents. This leaves the parents with a choice to determine what level of restriction and monitoring that they feel is necessary for their children. The internet and the numerous social media applications are a great way for teens to stay up to date, but it is becoming increasingly dangerous. Children as young as 8 years old now own smartphones and are logging onto the internet and social media accounts. The design of social media accounts and the internet are drawing more and more children in each day thus leading to more†¦show more content†¦Often these crimes go unnoticed until the child reach legal age and attempt to do one of these tasks for themselves. Many applications require personal and often sensitive information and require the parent to discuss with the ir child what information is appropriate to submit online. There are several different signs for a parent to be tipped off that someone is misusing their child’s personal information and committing fraud. These include receiving notice from the IRS that the child has not paid income taxes, or that their social security number has been used on another tax return, the child was turned down for government benefits, or by retrieving a copy of the child’s credit report. Children and their parents need to realize that their privacy is at risk each time that they log onto or use the internet. Cyberbullying is another threat that children face when logging onto the internet or social media accounts. Cyberbullying and cyber threats are serious problems in our nation today. 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