OPEC Current Trend as an International Oil Producer Cartel

Question: Critically discuss different policy measures that non OPEC member States can take to mitigate the impact of OPECs current trend as an international oil producer cartel. Answer: Introduction Petroleum is the most essential element for every country throughout the world but it cannot be produced in a factory as it is a natural thing. In world market petroleum plays the most important role in respect of the economic stability. Twelve countries along together has formed an organization in relation to control the conducts of import and export of petroleum. This organization is known as Organization of the Petroleum Exporting Countries in abbreviation it is famous in the name of OPEC. In the world economy OPEC performs a major role in relation to the exporting of petroleum throughout the world. But apart from these twelve countries there are a lot of country in this world who are also seeking petroleum and they are financially also much stronger in comparison to the OPEC countries like USA, Soviet Union, UK and many others. Some of the members of OPEC are UAE, Venezuela, Iran, Iraq and some other countries as well (Chapman and Hodges, 2011). Here in this context various aspec ts relating to the conducts and strategies of the countries who are not the members of the OPEC are going to be discussed along with relevant statistics and formations adapted by non OPEC member countries. OPEC countries manipulate the price level of petroleum in the international market in a normative manner (Rugman and Hodgetts, 2003). Sometime it becomes very difficult for the non OPEC countries to regulate their conducts in the international market in relation to petroleum related issues. The strategies that may be adapted by the non OPEC countries in relation to petroleum related issues are going to be discussed under the following: Nationalization (Strategy 1): By way nationalization of oil producing organizations and corporations impact of privatization in the market of crude oil can be diminished that will not only refer more revenue to the government sectors but also promotes a balance in the international crude oil market. This procedure must not be confused with the restrictions upon the exportation of crude oil. It has represented one of the most important turning points in relation to the development of policies relating to oil trade in the international market. Privatized business conducts are eliminated by the nationalization, as resources of oil in the oil producing nations are controlled by the private international corporations. It permits oil producing nations to obtain control over private properties, though it may violate some of the existing legal contracts. If these nations become the only proprietors of this confiscated resources by violating the law of contract, they will be in a superior position to manipulate the price of the crude oil in the international market, and they will decide the way by which the actual current value of their known stock of petroleum under the ground can be maximized. A number of major implications may be observed as the consequence of nationalization of crude oil. On the other hand, nationalized oil corporations are in some occasion torn among the expectations of the nation that they ought to carry the national flag and their personal goals in relation to success in trade; it could signify a level of emancipation relating to the confines of the national agenda(Rugman and Brewer, 2001). Considering historical background (strategy 2): In the year of 1949Iran and Venezuelawere the foremost nations to be in motion towards the formation of OPEC by making an approach Saudi Arabia, Kuwait and Iraq, signifying that they swap over visions and investigate boulevards for usual and quicker communication between oil manufacturing countries (Rittberger, Zangl and Kruck, 2012). In the year of 1959, the IOCs (International Oil Companies) abridged the prescribed value for Venezuelan rudimentary at 5, thereafter 25 for each barrel. And the same for Mid-East crude at a rate of 18 for each barrel (Energy indicators, 2008). In Cairo, Egypt, the foremost Arab Petroleum Congress assembled. There they recognized an Oil Consultation Commission in relation to that IOCs ought to present value alteration tactics to establishment of manufacturing nations (Kazim, 2007). In the year of 1959, Abdullah Tariki to Juan Pablo Perez Alfonzo has been introduced by a reporter Wanda Jablonski in Cairo, at the Arab Oil Congress. They were both exasperated by the slash in prescribed values by IOCs as well as International Oil Corporations. Maadi Pact or Gentlemen's Agreement was the consequence of this meeting (Ricks, 2000). In the year of 1960, reporterWanda Jablonskiaccounted a noticeable antagonism in the direction of the West and a rising disagreement in opposition to malingerer landlordism in the central of Eastern region. In his prominent book permittedThe Prize: The Epic Quest for Oil, Money, and Power In this book it is described by Daniel Yergin that the process by which theregular Oil, which proscribed 75 per cent of the petroleum industry of United State. In the month of August of 1960 with no straight caution to petroleum exporting countries, declared slash of up to 7% of the prescribed values of Mid-East rudimentary oils. Most of the oil producing corporations uniformly abridged the prescribed value for Mid of Eastern region crudes. Mid-East nations previously sensed bitterness towards the Western region above the malingerer landlord customs ofMultinational Oil Corporations that at the time forbidden all oil related procedures inside the congregation nations (Noreng, 2002). In the period of 10th to 14th September of 1960, the Baghdad convention was apprehended by the inventiveness of Juan Pablo Prez Alfonso the Hydrocarbons ministerand Abdullah al-Tariki the Venezuelan Minesand the Saudi Arabian Energy and Mines minister. The administration bodies of Venezuela, Kuwait, Iraq, Saudi Arabia and Iran, met inBaghdadwith an object to talk about the ways to amplify the value of the rudimentary petroleum created by their particular nations and act in response to independent proceedings by theMultinational Oil Corporations, they at that period of time proscribed all oil related actions inside the hosting nations. "Collectively along with the Arab and non-Arab manufacturers, the Organization of Petroleum Export Countries (OPEC) has been formed by Saudi Arabia for the purpose of securing the unsurpassed available value from the most important oil companies. From this period of time OPEC countries always tried to control the international crude oil market and they wanted to establish supervision upon the transactions of developed countries in relation to oil import and export (Middle East Oil Trade, 2010 and 2011, 2012). Considering political issues (Strategy 3): In accordance with the confer with compact PFC Energy, only 7 per cent of the anticipated oil and gas reserves throughout the world are in nations that permit private global corporations gratis rein. Entirely 65 per cent are under the control of nationalized corporations for instance Saudi Aramco, along with the other concerning nations like Venezuela and Russia, where admittance by the Western corporations are not easy. The PFC study entails unfavorable political collection to capitalism in several nations is inclined to perimeter upon oil manufacture enlarged in Iran Mexico, Kuwait, Iraq, Russia and Venezuela. Saudi Arabia is also preventive capability extension, but for the reason that of a self imposed limit, nothing like the other nations (Kirton, 2009). As per the publication made by theNew York Times,the oil bradawl thump in the United States has been augmented petroleum manufacture by more than 70 % from the year of 2008 and has abridged the United States petroleum importation from OPEC countries by 55% (Energy indicators, 2008). Increasing production capacity (Strategy 4): From the year of 2011 the United States of America has engrossed the speedily augmented home manufacture of light, sweet, tight oil by way of plummeting same kind of or parallel status, brings in crude petroleummainly from Nigerian and some other suppliers of African territory.Since 2011 to the year of 2013, 50 per cent of petroleum importation diminution collision light crude. Just about 96 % of the two million barrels every day, which is around 290,000m3/d of its expansion, arrives from sweet crude from stiff source development. As home manufacture prolongs to amplify, the United State is in front of upcoming confronts of fascinating the sweet stiff oil (International Crude Oil Trade, Year 2013, 2014). In the year 2011 the United States brought in 1.7 million barrels every day which is around 270,000m3/d. In the year 2013 crude petroleum importation were abridged to one million barrels every day which is around 160,000m3/d.In the early months of 2014, light rudimentary importations to the average of United States was only 0.6 million barrels every day which is around 95,000m3/d (International Crude Oil Trade, Year 2011, 2012). In the month of July of 2014 the non-OPEC manufacture was envisaged at 1.7 million barrels every day that is approximately 270,000m3/d along with the Canada and United States manufacturing 1.6 million barrels every day that is around 250,000m3/d in 2014 . In the month of June 2014 petroleum prices unexpectedly go down by around a third as United State, oil manufacture greater than before and the demand of China and Europe for petroleum reduced. Just previous to the United States quickly reversed out of the rudimentary oil importation marketplace for the reason that of thriving nationwide creation, the smudge value ofNorth Sea Brentcrude petroleum fatigued as on 17th June of 2014 at supplementary than US$115 for each barrel. Obtaining good quality oil from other resources (Strategy 5): Nigeria is the biggest manufacturer ofsweet petroleumin OPEC. On July 2014, as the United States clogged bring in sweet crude oil, additional crude petroleum has become obtainable to processing plant in China, South Korea, Japan and India. They together bought at around 42 per cent extra Nigerian crude oil in the year 2014 in comparison with 2013. Opening in June of 2014 Saudi Aramco national oil and gas company of Saudi Arabia and the biggest oil producing corporation of the world in expressions of production, reduced the value of its rudimentary oil to refineries of Asia to contend with petroleum from African and other Nigerian suppliers. In announcement as on 27th of November in the year 2014, in the OPEC seminar in Vienna, it was declared that the'OECD-Americas' has been the most important non OPEC petroleum supply provider to an predictable contribute enlargement of 1.4 million barrels every day that is 220,000m3/d, to an average of 57.3 million barrels every day that is 9,110,000m3/d, throughout the year of 2015. Since the year of 2011 until middle June of 2014 the yearly standard value of petroleum was about US$110 each barrel. From the month of June of 2014, nevertheless, the cost of oil slips at $US80. OPEC disagreed that this plummet in the cost of petroleum was not absolutely "accredited to oil marketplace rudiments." at the same time as oil marketplace rudiments, "sufficient supply, reasonable demand, a powerful US dollar and doubts concerning worldwide financial expansion" donated to the fall of value, "tentative movement within the oil marketplace has too been a significant aspect." Attempts towards price control (Strategy 6): Notwithstanding as to the worldwide inundate, as on 27th November of 2014 in Vienna, Oil Minister of Saudi, Ali al-Naimi, barren the application from the shoddier OPEC associate countries, such as Algeria Venezuela, and Iran, for manufacture slash. Standard crude, Brent petroleum pitched to US$71.25, a four year short. Al-Naimi said that the marketplace would be absent to accurate itself. "Ancient strategy of defensive price." has been adapted by OPEC. In according with a number of analysts, OPEC might allow value of Brent petroleum drop to US$60 to sluggish downward US shale petroleum manufacture.Regardless of a concerned financial system in associate nations, al-Naimi has repeated his declaration on Saudi functioning. On November of 2014, with creation at 30.56 million barrels every day that is around 4,859,000m3/d, OPEC go into its sixth month of over and above their combined target of manufacture. On 11th December of 2014 the value of OPEC orientation container of Crudes has been drop to US$60.50and by 13th December of the same year, the value of Brentpetroleumfallen to US$61.85. The 12th January of 2015, value of OPEC orientation container of Crudes has been reduced to US$43.55. On the month of February of 2015, OPEC had come in its ninth successive month of over and above their combined target of manufacture. Conclusion: After the above discussion it can be said that OPEC countries are at the controlling position in the world market in relation to the pricing of petroleum as well as the exportation of crude oil. Though the other countries gave an important contribution to produce oil and also to make refinery plants but these were not so successful as to the mark of OPEC member countries (Citino, 2002). Developed countries like America has given huge effort to the improvement of oil production sector but it was not so appreciable like the associate countries of OPEC. OPEC countries are blessed by nature and that is the main reason of the autonomy in the international crude oil market, but in some stage OPEC is obtaining undue advantages (Buckley, 2009). References Al-Chalabi, F. (2010).Oil policies, oil myths. London: I.B. Tauris. Buckley, P. (2009). Business history and international business.Business History, 51(3), pp.307-333. Chapman, G. and Hodges, G. (2011).Oil. Mankato, Minn.: Smart Apple Media. Citino, N. (2002).From Arab nationalism to OPEC. Bloomington: Indiana University Press. Energy indicators. (2008).OPEC Energy Review, 32(4), pp.267-300. International Crude Oil Trade, Year 2011. (2012).World Oil Trade, 34(1), pp.43-52. International Crude Oil Trade, Year 2012. (2013).World Oil Trade, 35(1), pp.43-52. International Crude Oil Trade, Year 2013. (2014).World Oil Trade, 36(1), pp.43-53. Kazim, A. (2007). Theoretical limits of OPEC Members oil production.OPEC Review, 31(4), pp.235-248. Kirton, J. (2009).International organization. Farnham, Surrey: Ashgate. Middle East Oil Trade, 2010 and 2011. (2012).World Oil Trade, 34(1), pp.151-166. Noreng, . (2002).Crude power. London: I.B. Tauris. Ricks, D. (2000).Blunders in international business. Malden, MA: Blackwell Publishers. Rittberger, V., Zangl, B. and Kruck, A. (2012).International organization. Houndmills, Basingstoke, Hampshire, UK: Palgrave Macmillan. Rugman, A. and Brewer, T. (2001).The Oxford handbook of international business. New York: Oxford University Press. Rugman, A. and Hodgetts, R. (2003).International business. Harlow, England: Prentice Hall/Financial Times.

‘Little Old Lady’ Essay Example

‘Little Old Lady’ Paper The play ‘Little Old Lady’ is set on a train; the play is about no smoking in underground station because of the fire at king’s crosses station in 1980 also the play is about how people were treated in the 1980s. Arnold Wesker wrote this play to show people how people were treated in 1980s. The main characters of the play are Sam and Tracy, they are both 15 years old, Jason is 17 years old, the others in the play, don’t have a real name. The writer called them by the way they are for example; little old lady, she is 65 years old and she’s called little old lady because she’s little and old. The other characters are Harassed Women. She is 45 years old and she’s called harassed women because she worries too much. The Unpleasant man, he is 50 years old and he is called unpleasant man because he’s not a nice person. The play is set in 1980s because at that time society was changing and people were begging to care less about others. Also ,young people respected old people at that time . Arnold Wesker wanted to show people how society was in the 1980 and how it changed so he wrote a play about how people’s views and values were . The stage directions and the dialogue show that it is everyday situation because the way people are talking to each other. Tracey says â€Å"capital of New Zealand† to Sam. Sam says â€Å"you’re getting really difficult, aren’t you? Then little old lady says â€Å"you don’t know the capital of new Zealand? This shows that it is just normal day because the way there are talking is normal and also they are playing a game and that’s normal. Also the place that is happing is in a train and this shows that it’s a normal day and people are acting normal. The setting of the play is good because it shows that it is a normal day and it’s a good place to show people how people are treated in the 1980s and how things are different now than before. The lighting goes on the person to show that he / she is speaking and it is good because u will know who is speaking. The sound that is used in the play shows that it is a normal day. â€Å"Sound of an underground train hurtling through its tube†. This shows that it’s a normal everyday situation. The way the characters are acting shows that it is an ordinary day for example what they are talking about. We will write a custom essay sample on ‘Little Old Lady’ specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on ‘Little Old Lady’ specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on ‘Little Old Lady’ specifically for you FOR ONLY $16.38 $13.9/page Hire Writer The stage direction shows what is going to happen and how people are reacting to the situation. There is something that is not everyday situation and that is the smoke sign. The characters in the play are Tracy and Sam, they are both friends, little old lady, Harassed women, unpleasant man and Jason. The characters are divided into 2 groups and that is unpleasant man on his own, because he doesn’t want to listen to any one,’ he wants to do whatever he wants and that is to smoke in the train but the other people on the train are telling him that he shouldn’t smoke . He doesn’t listen and those people that are trying to tell him that is not allowed are little old lady, Sam, Tracy, Jason, Harassed women. First the little old lady argues with unpleasant man then the rest try to help the little old lady and that’s how the characters are divided, the unpleasant man against everyone else. The actions of the characters shows tension and conflict is when the little old lady argues with the Unpleasant man shows tension in the play because it makes the play worth while drama and this is shown in the play when the unpleasant man says â€Å" And you think yourself lucky you’re an old women â€Å". He says this to the little old lady, the little old lady says something back to get attention, she says â€Å"NO, you think yourself lucky I’m an old women â€Å". This shows that the man is trying to threaten the little old lady and this builds tension. The stage direction builds tension because it tells you what is happening and also what the characters are doing and saying. â€Å"The silence is long. Unease grows†. This shows that the stage direction also builds up tension when it is quiet. The writer is effective when he tries to build tension when it is quiet because it makes the play more interesting to read and the audience won’t get bored because the play is getting good and people like when something that is boring at first and then turns out to be good, makes the reader want to read more. The authors notes at the start are explaining that this play is strictly not about race and is all based on the issue of no smoking in the underground. The author became worried about the play because in those days the race tension was really high, and thought that the director would face difficulty choosing characters for this play . He did have difficulty choosing characters for the play because if he had picked a black student to take part in the play then people will see the play as racist and in 1980 society used to judge people because of there race. â€Å"If a black student plays the anti-social character it is interpreted as a statement about race not as a fact of life†. This shows that in the 1980 society judged people because of their race. For example if there where to watch a play about real life situation and a black student is taken part then they would see the play as racist not about life situation . I think it doesn’t have an effect on the way the play is read and performed because at the start of the play the author tells you that the play is not going to be about race, it’s going to be about life situation. The reader will know what the play is going to be about and they won’t have any problems reading it and they will have some ideas about how the play is going to be performed. I think when the characters ague or fight and the no smoking sign makes the play interesting for people to watch because in the begging of the play it was boring because it didn’t have any action but if it did then it would have been interesting for people to watch but it was good because at the start it didn’t have any action , it was all quiet and you would know that something is going to happen and that why the audience would carry on watching it because the play is going to be good but if it wasn’t then nobody would watch it , they wouldn’t find it interesting . Wesker puts a no smoking sign in the train because so people will know that something is going to happen and it did, in the play the little old lady argues with the unpleasant man because he was smoking and in the train you are not allowed and the little old lady was trying to tell the man that smoking is not allowed but he didn’t listen to her, he just ignored her. This shows that in the 1980 people didn’t respect old people at that time but children did respect old people.

A Modern Technology is not always a Good Choice Essays

A Modern Technology is not always a Good Choice Essays A Modern Technology is not always a Good Choice Essay A Modern Technology is not always a Good Choice Essay Victoria Magana Rdg 52 December-05-2012 My Education My education is one of the most important things in my life. I think that is the base of the life to successful and to be someone important in the future. I was starting my education in Mexico. Im going to kinder garden in Heroes del Chapultepec. I loved going out to lunch and run with my little friends, I was very athletic; this is what I liked about my kinder garden. Sincerely overall theres nothing that I dont liked it from kinder garden. After kinder garden I continued at Mexico too in primary was a 6 ears there at Miguel F. Martinez. For me was one of the best time because is the time of our lives where we learned many things of the life, the best. I didnt like because there were reports and they called your parents to tell them about your citizenship, three reports and we get out the school. Secondary was more difficult for me, but I met good friends there and I think they are not my bests friends but I know that they will be there for me. My secondary was a private school, Instituto Mexico and was intesting because is about Catholics. Every morning we prayed, and always hen a class was to begin, we must pray. That was a three years of a good experience in my life. I liked when we go to spirituals retreats. The whole day we were prayed. We had a sentence that said: Todo a Jesus por Maria, Todo a Maria para Jesus was like the principal sentence of the institute. And the finished with secondary I come here to San Diego to study high school in Southwest High School I started in 10th grade and for me was super different, the classes, classrooms, teachers, students, school everything. For me was a new experience in my life verybody in their tree. Coming lunch and everybody knows where will be they friends, thats was very funny. I loved the assemblys, when we scrammed to win senior vs. Juniors and everybody with everybody but the happiest moment was my graduation, class of 2011. Sadness but at the same time happiness. In high school everything was cool. Well I hated detention and Saturday school. This is a little of my education life, and then of all of this continuing with the college, where I get my general classes and where I met the best teacher ever, Mr. Lynch.

Vocabulary Tips On the One Hand, On the Other Hand

Vocabulary Tips On the One Hand, On the Other Hand Vocabulary Tips: On the One Hand, On the Other Hand The phrase â€Å"on the one hand†¦ on the other hand† is common in English. But what exactly does it mean? And whose hands are we talking about? Well, if you take our (metaphorical) hand, we’ll be happy to walk you through how to use this phrase correctly in your writing. What Does â€Å"On the One Hand, On the Other Hand† Mean? We use â€Å"on the one hand† and â€Å"on the other hand† to present opposed ideas or points of view: On the one hand, I would like to go to the party. On the other hand, I should get an early night. Here, for example, we can see how â€Å"on the one hand† introduces one possibility (i.e., going to a party), while â€Å"on the other hand† introduces a contrasting possibility (i.e., an early night). The phrase therefore works as a conjunctive adverb, which is an adverb that connects two ideas. And as for whose hands we’re talking about here, the phrase draws on the simple idea of offering someone one choice in your left hand and a different choice in your right hand. Can You Use â€Å"On the Other Hand† by Itself? One point of controversy is whether we should always use â€Å"on the one hand† and â€Å"on the other hand† as a pair. In practice, many people use â€Å"on the other hand† by itself to introduce a contrasting idea. For example, we could rephrase the example above as follows: I would like to go to the party. On the other hand, I should get an early night. â€Å"On the other hand† here has exactly the same meaning as it does above. The only difference is that the first â€Å"hand† is implicit rather than explicit. And most English speakers will understand this without any problems. As such, it is fine to use â€Å"on the other hand† by itself in many contexts. However, some consider using â€Å"on the other hand† by itself informal. As such, you may want to avoid this in formal writing, such as academic papers or business documents. In addition, if you do use â€Å"on the one hand† and â€Å"on the other hand† as a pair, try to keep them close together. This is so the reader can see the connection between the two. It could be within a single sentence, or it could be in successive paragraphs. But if there are several paragraphs or pages between the â€Å"one hand† and the â€Å"other hand,† the connection may be hard to spot.

Kinds of accounting Essay Example | Topics and Well Written Essays - 500 words

Kinds of accounting - Essay Example The three major heads in which accounting is divided are financial accounting, managerial accounting and cost accounting. There are other kinds that have been developing as the world is progressing, but they all come under the three umbrellas one way or the other. For clarification and differentiation amongst the three major heads, a brief discussion is presented below (Peter, 2007). The basic purpose that financial accounting serves, is to provide the stakeholders with information to make sound economic decisions (Robert, 2004). Reports are made for the external parties such as the investors, creditors and tax authorities, so that they can extract information regarding how the company is doing. Reports include income statements, balance sheets, cash flow statements and other- they provide a complete picture for external parties to make sound decision and compare them with other organizations’ performances. They are guided by the Generally Accepted Accounting Principles (GAAP) (Robert, 2008). Managerial accounting is another major branch of accounting. It provides information that is crucial for the internal parties or the managers or employees, helping in understanding the running of the businesses. They provide information to the internal stakeholders that help them understanding the management and control functions within the organization. It is forward looking, that is, it is mostly based on projections and assumptions rather than the history of the organization. Management accounting is also termed as cost accounting, where product costing is also a part of managerial accounting. All these types of accounting that come under managerial accounting; help the managers make sound decisions about management and control of the organizational functions (Ray, 2008). Cost accounting comes under the umbrella of managerial accounting but serves a unique purpose. Cost accounting helps in budgeting, establishing the actual

American revolution Essay Example | Topics and Well Written Essays - 250 words

American revolution - Essay Example They considered the British ruling to be unfair. All the peace deals they stroke with them always backfired and the Americans got very little representation in parliament. Most colonists including the French and Indians wanted to move part ways with the British administration thus making the fight for independence in America inevitable. By 1665, the Gross national Product (GNP) of the North America’s economy had grown with a huge margin of close to 25 times the normal rate. This meant that the British colonists led a lavish lifestyle (Foner 45). This made the Americans uncomfortable because they were the ones subjected to heavy taxes. Such a difference in ideological bearing in terms of social status and governance forced the Americans to push for changes and dare the British colonists into war until they could realize their independence. The war had little impact on the religious sector in America. The traditional churches grew stronger than they were before the war. Since churches were good weapons of passing the message to authorities, by 1845, the Methodist Episcopal Church had grown to be one of the largest churches in America. In Mexico for instance, the introduction of formal education suppressed the Mexico’s Indian culture. On the contrary, the art industry improved because Indian and Christian romanticism was mixed to improve the Mural art. A historical journey for America’s independence involved lots of bloody battles, cruelty, perseverance and persistence. It was actually inevitable because the British colonial government was unfair and could often mistreat Americans. The later were subjected to a series of taxes and violation of Acts with the aim of benefiting the colonial masters. Even after revolution, it is evident most Americans restored their cultured with exception of a few minority groups like the Indians, who were suppressed by the introduction of formal

Outrigger Case Study Essay Example for Free

Outrigger Case Study Essay Though the hotel and resorts industry has suffered due to the declining economy over the past several years, Outrigger Hotels and Resorts (â€Å"Outrigger†) has been able to maintain a strong niche market in Hawaii as well as beginning to expand geographically, establishing a stronger international presence. Though they began as major competitors with companies like Marriott, Hilton, and Starwood, Outrigger has been able to diversify its product portfolio mainly through acquisitions to appeal to a wider customer base. Outrigger created OHANA hotels to attract more â€Å"budget travelers† as well as beginning to offer condominiums off the beach front to appeal to regular travelers that vacationed more frequently. In these new markets, Outrigger benefited from no direct competition and is able to benefit from a diversified product portfolio. Outrigger has enjoyed success in these new markets but has faced many problems due to their entrance into these slightly different markets. In spite of Outrigger’s aggressive geographical and product expansion in new markets, it has preferred to maintain a centralized management structure. Along with their centralized management structure Outrigger has tried to develop centralized operations and information systems. Outrigger’s operations and IT infrastructure in Hawaii were highly centralized. Outrigger’s properties in Hawaii all utilized the same Central Reservation Office; however all other properties located outside of Hawaii handled their reservations in house, limiting collection of important customer data and missing out on the opportunity to enjoy significant cross-property traffic. All properties in Hawaii ran on a JD Edwards ERP as the cornerstone of Outrigger’s back office operations while running Stellax, their integrated CRS/PMS, providing revenue management, reservation center support, and enabled data collection for further analysis on their E.piphany software. This integrated IT infrastructure has allowed Outrigger to â€Å"harness the analytical power of E.piphany to do forecasts and generate business intelligence both at the source of business and at guest levels.† Properties outside of Hawaii are not allowed to benefit from integration of IT and information systems since they run on similar but different systems that do not allow for real time electronic interface with other hotel locations and wholesalers of vacations. Outrigger believes that a  centralized IT infrastructure and systems is a source of competitive advantage. However, as the firm has diversified its product portfolio and geographic presence they have been sacrificing the centralization of IT infrastructure and have been unable to harness the potential benefits of integrated systems in their international markets. To remedy this problem of a lack of integration and communication, Outrigger could expand their use of Stellax to its international locations, develop a new PMS/CRS system that better could better handle the different needs of Outriggers’ properties in different markets, or move its information sharing to the cloud for better communication between properties. Expansion of Stellax would benefit Outrigger by enabling consistent data gathering and analysis of important business and customer information that could allow for rewards programs that could increase profitability through cross-property traffic and meeting the needs of the customer better. This expansion of Stellax would be expensive and could create problems due to differences in needs between properties in Hawaii and international properties. Development of a new PMS/CRS platform that would be better suited for the wide variety of needs between different properties, though customization could be achieved through the ap plication of add-on modules that could tailor the new PMS/CRS system to the unique needs of each individual property. This solution could be very complicated and much more expensive then the first alternative due to the degree of customization. In addition, this option could create a more decentralized structure when Outrigger is trying to achieve increased centralization of operations. Lastly, Outrigger could move their information sharing between properties to the cloud. This option is less expensive than the other alternatives but would offer limited benefits. Though properties would be able to share business and customer information, analysis would be limited due to different data gathering techniques and differences between the type of business and customer data that each individual property’s system collected. To enable better integration of properties and to create a more centralized IT and systems infrastructure, Outrigger should develop a new PMS/CRS platform that would meet the needs of their diversified product markets. Though this option is most expensive it offers the most centralized structure and the greatest potential value for  Outrigger. Stellax is very outdated even though it still suits the needs of properties in Hawaii, but not the needs of Outrigger’s international properties. By developing a new customizable PMS/CRS platform, Outrigger would become much more centralized and could create value from its diversified portfolio of projects through the utilization of rewards programs that promote cross-selling of Outrigger properties and harnesses the power of business and customer information that is consistent between Hawaii properties as well as international properties. To track to success of such a large system implementation Outrigger could track the amount of customers that visit multiple Outrigger locations and the success of cross-selling of properties through the tracking of customer’s redeeming rewards points they earned through staying a multiple different Outrigger properties. Implementation of brand new software is risky however if it is properly managed and implemented correctly the rewards could greatly outweigh the cost.