The Crisis Of The New Millennium - 1418 Words

In 2007, the United States experienced a crippling recession in the mortgage/real estate field. This crushed the American economy as countless individuals lost their homes due to foreclosure as banks and other various lending institutions were forced to freeze their practices to ensure their survival. While this seemed to happen virtually overnight, there were several factors that served as signs and eventual learning points, providing insight into the cause of the crash. One of the contributing factors to the mortgage crisis of the new millennium is an old age issue that has affected our country for years but has gone largely unnoticed because at times because it has the ability to have a positive or negative affect, consumerism.†¦show more content†¦In response to having an influx of these types of potentials borrowers who were not the most desirable candidates to lend to, the mortgage industry increased the practice of sub-prime lending, another cause of the mortgage crash. This is the concept of approving loans for individuals that are high risk or may have a greater chance of default on the loan. Some defining characteristics of these individuals include: low or bad credit score, low income, debt and no assets. To be fair this practice existed long before the mortgage crisis but was done in moderation and carefully monitored. But as the number of high risk applicants increased, the lending institutions allowed the practice of sub-prime l ending to be practice regularly. While facing pressure from the applicants to provide these loans, many lending institutions also faced pressure from within their own companies. Loan officers who are responsible for overseeing the loan process, began to direct the company underwriters to do whatever was necessary to make the loans successful. The underwriters responded by not accurately disclosing the risk of lending to these types of applicants and the loan closed successfully. This backfired when many homeowners validated their high risk status by being unable to make their loan payments as

Hospitality Industry Knowledge free essay sample

Hospitality Industry Knowledge 1. List six sources of current industry information: Media: Such as newspapers, television, magazines and radio. The media publicises current information, trends developing and any government initiatives. Customers: By doing customer questionnaires this can inform enterprises as to what they need to improve, as well as which staff are working well. Information services: For example the Australian Bureau of Statistics and Tourism NSW (all these services are provided by the government) and provide a whole range of issues within the industry. Internet: Sites such as The World Tourism Organisation (WTO) provide information on environmental issues and trends frequently. Anyone can publish anything on the internet, so it is important to check that the information sourced is credible and correct. Industry Journals: (Also known as trade magazines) are not available from local industries and usually require a subscription, as they are extremely valuable sour ces of current information. Within the either national / international journals hospitality positions are advertised, trends are addressed and practices of various enterprises are shown. Training courses: May either be on-site or off-site, and provide the opportunity for staff to experience specific training in a chosen area. 2. Differentiate between primary and secondary sources of information: A primary source is when information is gathered first hand, whereas secondary source is when the information is gathered from a source that has already conducted the research. 3. Indentify the basic research skills that are required when researching: It is important to recognise that the source is credible and that it is of relevance. . List three channels that may be used to disseminate information once collected: Media, Internet and customers. 5. Explain the importance of updating hospitality industry knowledge: Updating hospitality industry knowledge ensures quality service is maintained and the customer’s needs are constantly being met. 6. Analyse recent government initiatives affecting the hospitality industry: Government initiatives are acts by the government t hat result in a number of impacts on the industry. Promoting Australia’s image overseas: In campaigns such as â€Å"where the bloody hell are you? † and ‘Australia week’ in the USA; and enhances Australians quality of life as well as boosting tourism in regional areas. Australian tourism industry: Over $600 million was allocated to the Australian tourism industry in the 2004/05 federal budget. The government set up a new body in 2004, ‘Tourism Australia’, having $120 million allocated to the body in 2004 in order to market Australia internationally as a holiday destination over the following years. To market tourism within regional areas of Australia, an extra $45 million was allocated. The federal government is now taking on apprentices (New Apprenticeship’s Scheme). This will help with the costs accompanying training new apprentices and offers and encourages employers to take on new enterprises. By introducing these further funds for enterprises, it has also allowed students to take on a part-time apprenticeship whilst attending school, as well as enabling more flexibility for those wishing to pursue a career in commercial cooking. Obesity: This issue has been constantly reported via the media, statistics stating that now over 50% of the Australian population are overweight. This is a result of certain lifestyle changes: individuals are now less active, have increased their consumption of fatty/high energy foods, and often resort to fast food because they believe they do not have enough time to cook themselves. The health problems connected to being overweight have pl aced a lot of pressure on the health system. This has resulted in the government introducing healthy eating campaigns and new school canteen food requirements. Farmer kits: Was launched by the Federal Minister for Tourism in 2003: ‘Farm and Country Tourism on your Property: Assessment Tool’ These kits were for families looking to enter the agricultural tourism industry and enables them to see whether or not their farm is suitable. 7. Explain recent trends in emerging markets and the importance of internet presence for business: The Internet has enabled the hospitality industry to access a wider market, allowing budding customers to view the available products and services of different enterprises, and to make a booking online. Internet booking have increased dramatically over the past few years (due to the ‘technically savvy’ Y-Generation) and has resulted in an increase in competitiveness between hospitality enterprises. 8. Analyse the impact of social issues on the hospitality industry: Some enterprises choose to become involved with the community by doing things such as participating in community fundraising (e. g. providing a complimentary meal) or by contributing left-over food to charities. The obesity epidemic has also caused the hospitality industry to provide healthier menus, so that consumers now have the option of having either fatty or healthier food. Doing so has caused the face of the hospitality industry to change, as they are no longer regarded as selling only fatty foods. Racial tensions were a result of the Cronulla Riots in Sydney. A number of businesses were closed down, and when re-opened were not able to operate due to a lack of customers. Due to an increase in intoxication and binge drinking licensed premises must ensure they do not serve intoxicated people, as intoxicated people are more likely to commit crimes. The government has responded to this by introducing curfews and lockouts within problem areas. They have also raised the price on Alco-pops to discourage young people from drinking excessively. 9. Outline factors that have caused expansion within the industry: Factors that have caused expansion within the industry include: International sporting events: attracts a large number of short-term visitors Cultural events: attract people to specific regions Seasonal influences: increased travel during holidays, in particular the Christmas and summer holiday period New liquor licensing laws: may encourage more small bars to open Medical tourism: hospitality provides forming partnership with hospitals 10. Outline factors that have caused retraction within the industry: An oversupply of facilities after the 2000 Sydney Olympics Incidents (such as war on Iraq, tsunami, SARS) resulted in less abroad people travelling to Australia, although inbound tourism did increase Competition among enterprises caused them to slash their prices (reduced profit) World oil prices increased which resulted in airline tickets increasing and households to restrict their extra spending money (due to increased cost in petrol) Rising food prices caused higher menu prices, which may deter customers from dining out Credit crisis 1. Describe current labour issues and their impacts on enterprises: Labour turnover: Employee’s left with few hours during the quieter months may choose to leave and find alternative employment. The cost of losing / replacing staff members is quite substantial and costs thousands per employee. Shortage of qualified chefs: result of more students staying to year 12 rather t han leaving in year 10 Hiring staff with illegal visa statuses Paid unjustly: a number of employee’s in the industry are unaware of their rights and may be paid lower wages 2. Explain technological issues affecting the hospitality industry: Has improved the delivery of customer service and impacted on the delivery of training Systems and procedures are now more efficient and has reduced many errors and has enabled service to be provided more timely. Addressed skills shortages by allowing individuals to complete training courses in a more flexible environment through registered training organisations on-line.