Tourism and Hospitality Industry Essay Example for Free

Tourism and Hospitality Industry Essay Globalization refers to the increments in the relationships of the people, industries, culture and various activities of economy. The term Globalization refers to the economics and all the global distribution of the production of goods and service which ultimately reduces the barriers of international trade like export fees, import quotas and various other tariffs, Cowen (2003). The Globalization has contributed to the growth of economy in a considerable manner. The globalization have accompanied to economic growth in developed and developing countries through increased specialization and the principle of comparative advantage. Globalization means the transnational change between the ideas, languages, and popular culture of different nations and countries so as to increase the diversity in the economy and enhance the growth of economy. It is argued that the decrease in the inter-cultural contact will increase the possibility of international and intra-national conflict. According to Shoa (2002), the globalization impacts the hospitality industry in prospect to the national as well as international hotel and tourism industry as a new occurrence. Actually, there are many hotels which are dealing with the international players even in the eighties. However, these days, the phenomenon has become so common that some company’s claim fifty percent of their profits will emanate from foreign companies, Pimentel (2008). The major factor behind the higher impact of globalization is that the hospitality sector has attracted international hotels into foreign countries and they are exploring the efficient and cost effective methods of doing business. The economies of scale are not just a theoretical phenomenon. it equally works in the hospitality sector and has considerable impact of globalization on the same. The hotels have realized that the larger they become the lower their production costs and the higher their profit margins. Besides that, the business within the industry will take their business to overseas and they can tap the unexplored markets that would never have been reached in local markets. Another reason that has increased the impact of globalization and has also increased the propensity for globalization within hosp itality industry is increasing competition within local markets. Consequently, in order to expand their respective businesses, the hotels and tourism  industries have started exploring the untapped markets and therefore, the globalization have started impacting the growth and profitability of the overall hospitality sector. However, it is necessary to look for the new markets as the increasing numbers of players in this industry are increasing the internationalism and competition within the hospitality industry. According to McAlister (2005), it is also likely that there are so many competitors which are now entering into new markets because they will allure the global brands. In contract to local brands, international markets would have to tailor their brands to suite specific conditions in the local market. However, with increasing talk about global brands, now international hotels can market their services to a wide array of consumers who happen to be agents of globalization themselves. Most of the consumers are multicultural in this scenario and always looking for ways to move themselves and their resources easily across various parts of the world, Dreher (2008). In this case, the main concern of study is to get the understanding of the impact of globalization on hospitality and tourism sector industries. For this case, there has to be geographical location on which the whole study can be done and further geographical analysis will be based on the same. The location which is chosen for the case is India which is a country in South Asia, Roger (2004). The economy of India is the ninth-largest economy by nominal GDP in the world and fourth-largest economy by purchasing power parity. According to Smith (2009), the reason for choosing India for this case is that it has very fast growth rate of economy and is considered a newly industrialized country. However, it also has so many challenges such as poverty, illiteracy, corruption, and inadequate public health. PEST analysis The concern of the study relates to the impact of Globalization on the hospitality and tourism industry and for the same concern, it is necessary to do the PEST analysis which stands for Political, Economic, Social, and Technological analysis and describes the conceptual framework which is used for the macro environmental factors and the environmental factors can be analyzed for the strategic management, Cowen (2003). The external analysis can be easily done by the PEST analysis and the overview of the different  macro environmental factors that the company has to take into consideration has to be done for the betterment of the organization. It is considered to be as a very good strategic tool for understanding market growth or decline, business position, potential and direction for operations. PEST analysis of hospitality sector The hospitality industry is very important to analyze as the hospitality sector includes a broad category of restaurants, hotels, event planning, transportation, cruise line, and so many additional fields. This particular industry is a very growing sector and has a considerable contribution to the economy, Jeffrey (2005).The unit of hospitality such as a restaurant, hotel, or even an amusement park consists of multiple groups such as facility maintenance, direct operations, management, marketing, and human resources which need to be maintained for the betterment of services. The productivity of the people as well as the location has to be improved for the overall growth of the organization, McGrew(2001). Political Environment . The Political environment refers to the various government policies related to the particular sector which can affect the service and hospitality sector such as the degree of intervention in the economy. The hotel industry as well as tourism industry has a basic backbone of the government support, Ross (2006). The huge amount of taxes has been charged by the government for the different category of hotels and therefore it has a huge impact with the political changes that occur. Any small step taken by the government by changing some law it would seriously affect hotel as well as the tourism industry. Economic the economic factors relates to the interest rates, taxation changes, economic growth, inflation and exchange rates. In the recent past, the people are willing to pay large amount of money for the services they get and the more the guests pay the more would the hotel and the industry would prosper ,John (2009) as the paying power of the people or customers will increase, the need for the good and luxurious hotels become massive. The economy of India has faced one of the most minimal drops in the whole world  and it has helped the hotel to get concentrated on the foreign travellers which had reduced and the local market being stable was much of a relief to the Indian Hotel Industry. . Social The social factor refers to the changes in social trends as it impacts the demand for the products of the company as well as the availability and willingness of individuals to work with the particular organization, Suryadinata (2000) As the social factor influences the people up to the certain extent which includes the culture and various other social factors within the society. . Technological There are so many software’s which are used for the management of hotel within the hospitality industry and the standards of the hotel has to match with the technology standards of the industry, Jeffrey (2010). The Hotel management software and technologies used have to match the subsequent level of market and industry. As the technology also reduces the manpower and decreases the cost to the company. So, the technology up gradation has always been proved as a boon to the people and the increased productivity of the organization, For example: If a hotel used the printed KOT and BOT and the stewards had to give it themselves to each of the departments. It could be substituted with the direct computerized sending of KOT and BOT to the kitchen or the Bar. In India, tourism is considered to be as one of the fastest growing sectors of the global economy and there are so many countries which are investing in the tourism sector for the expansion of industry, Pimentel (2008). On the other hand, while conceding that the uncontrolled growth of this industry can result in serious environmental and social problems. In recent years, there is an argument about the sustainability of the tourism industry and the sustainable development to bring together national and local governments, the tourism industry, trade unions and activist groups to realize this goal, Chapman (2009). It has been also considered that the global tourism industry can be propelled towards sustainability which underpins the drive towards globalization. There are so many countries which are facing burdens and worsening trade because of the  tourism industry and the various agencies working on the international basis such as World Bank, World Travel Tourism Council (WTTC) are also involved in the matter of concern for the growth and development of tourism industry and enhance the global presence of the tourism industry, Bruce (1992). However, tourism is often viewed by critics as an extension of former colonial conditions as it has supported and benefitted the international relations of economics whereas it favours the advanced capitalist countries in the North, Turner (2009). Therefore, it has been believed that there are unequal trading relationships and a trend of dependency on the foreign interests, and the division of labour which ultimately relates to the poor countries in the South to becoming tourism recipients and affluent countries in the North to the position of tourism generators. According to the WTTC, there are some certain reasons for the presence of the travel and tourism which includes the following key areas: * The government should accept the travel and tourism industry as a strategic economic development and employment priority * There has to be a move towards the open and competitive markets which supports the technological advancements and activities and at the same time, the liberalization of air transport and deregulate telecommunications in international markets * The barriers for the growth of tourism has to be eliminated and at the same time, the expansion and improvement of infrastructure has to be done for the growth of the tourism industry in a better manner such as development in the increase of airport capacity, construction and modernization of airports, roads and various other tourist facilities Friedman (2008) In many developed and developing countries, more than two-thirds of the revenue comes from international tourism and now a days, the policies of free trade and investment have been launched for the better liquidity in the market , Smith (2006). The globalization and liberalization of tourism will also bring wealth, progress, social achievements and improved environmental standards. It is also significant that the global guidelines could also have the devastating consequences for local and indigenous communities which are based on the social, cultural and ecological manner. The propensity of the tourism industry towards the unrestricted growth and its commoditization of indigenous cultures must be recognized as clearly unsustainable to the industry. The principles of the  tourism are made not only because it is heavily overshadowed by politics of global players but also, the main concern is that the guidelines are to be adopted by the advocates of sustainable tourism at the level of internationalism and the topic remains vague. The tourism industry is overly euphemistic, Tainter (1996). On the other hand, where the companies related to tourism have scrapped or postponed potentially harmful projects, people should know and acknowledge that the projects are scrapped because of the financial crunch, public and private investments in the cut of environmental protection. Moreover, the overall crisis has also resulted in an upsurge of crime and so many social vices related to tourism industry. Overall effects of Globalization Globalization has so many aspects which have their considerable impact on the industry in so many different ways such as: Industrial – The emergence of worldwide production markets and a wide access to the international products for the companies as well as consumers. These are particularly related to the movement of material and goods for the national boundaries , Vierich (2008). Financial – The emergence of the financial markets and the wide access to the financial markets and the overall access to the external financing for borrowers is important and at the same time, the structures have been grown at a very fast pace than any transnational regulatory regime. Competition – The emergence of the global market have enhanced the productivity of the people and increased competition in the market, Graham (2011) Therefore, the market is becoming worldwide and there are so many companies in the hospitality industry which needs to upgrade their products and utilize the technology skilfully in order to face increased competition. Ecological – The challenges of the global environmental challenges which can be solved by the international cooperation, such as climate change, cross-boundary water and air pollution etc. As there are so many companies which are developed in the countries which have very less environmental regulation, globalism and free trade may increase pollution, Barber (2003). Cultural – The overall growth of cross-cultural diversity in the global world can enhance the advent of new categories of consciousness and identities which embodies cultural diffusion, in the different categories of people. There is a desire which has been developed to raise the standard of  living of people within the country and the new technologies have been adopted and the people are participating in a world culture† for the proper transformation of the culture, Dreher (2008). The multiculturalism has to be speeded so as to access the cultural diversity, Gordon (2004). There are some people who may consider the cultural diversity as a danger, since it may supplant the local culture. But there are also some people who consider the multiculturalism to promote peace and understanding between peoples. Conclusion The globalization has their own benefits and effects on the hospitality industry and the other industries as well. The economies of scale are also equally affected as on the larger market base. And this particular reason cannot be ignored as there are lots of further problems which come after the same problem. The further problems can be intercultural difference, organizational structure and looking for investors. The above mentioned problems can be addressed through intercultural understanding, mixing vertical and horizontal organizational structures and marketing homogenous products to investors within the hospitality industry.

Free College Essays - Shakespeares Sonnet 147 :: Sonnet essays

Sonnet 147 SONNET CXLVII My love is as a fever, longing still For that which longer nurseth the disease, Feeding on that which doth preserve the ill, The uncertain sickly appetite to please. My reason, the physician to my love, Angry that his prescriptions are not kept, Hath left me, and I desperate now approve Desire is death, which physic did except. Past cure I am, now reason is past care, And frantic-mad with evermore unrest; My thoughts and my discourse as madmen's are, At random from the truth vainly express'd; For I have sworn thee fair and thought thee bright, Who art as black as hell, as dark as night. PARAPHRASE OF SONNET CXLVII My love is like a fever, still longing, For that which feeds the disease, Feeding on that which prolongs the illness, All to please the unhealthy desires of the body. My reason, love's doctor, Angry that I do not follow his directions, Has left me, and desperate I find that desire Leads to death, which physic (reason) will not allow. Now reason is past caring, now I am past cure, And I am frantic with continual unrest; My thoughts and my words are like a madman's, Lies foolishly uttered; For I thought you were moral and bright (shining as a star), But you really are black as hell and dark as night. Analysis Shakespeare's scathing attack upon the morality of his mistress exemplifies their tumultuous and perplexing relationship. The three quatrains outline the poet's inner struggle to cope with both his lover's infidelity and the embarrassing self-admission that he still desires her to gratify him sexually, even though she has been with other men. The poet yearns to understand why, in spite of the judgment of reason (5), he still is enslaved by her charms. Confused by his own inexplicable urges, the poet's whole being is at odds with his insatiable "sickly appetite" (4) for the dark lady. He deduces in the final quatrain that he surely must be insane, for he calls his mistress just and moral when she obviously is neither. Not until later sonnets (150-1) do we see a change of tone and a cool-headed acknowledgment of the recklessness of the whole affair. In Sonnet 151, the poet admits that he cannot continue the relationship because it betrays his "nobler part" (6) i.

Mamma Mia Paper

The film Mamma Mia! (Lloyd, 2008) is based on the extremely popular and successful Broadway musical which opened in 1999 in London. Since then, this Broadway production has become a global phenomenon which has entertained countless audiences, and still holds on strong as one of the most enjoyed and accepted musicals of this generation (Shenton, 2009). And so it is assumed that the motion picture adaptation of Mamma Mia! would be just as popular; and it was, expanding into one of the highest-grossing films of 2008 as well as receiving two Golden Globe nominations along with many other awards (Mamma Mia! 1990-2009). The film portrays a young woman named Sophie, played by Amanda Seyfried, on the eve of her wedding, who is convinced that in order to feel complete she must find her father. After reading her mother’s diary and revealing that she has three potential fathers, she proceeds to secretly invite all three of them to her wedding. Many of the themes and elements that encompa ss the film are typical of a classical Hollywood musical such as the presence of utopia and spontaneity, the emotional connection between the characters and their audience, and the constant premise of nostalgia.However, Director, Phyllida Lloyd, uses these themes and elements, as well as new techniques in soundtrack development, to make Mamma Mia! unique. She successfully manipulates the conventions of the classical musical and pieces together an updated version that speaks directly to its contemporary audience. Musicals were originally introduced in contemporary cinema by Hollywood in an attempt to create an escape for people during periods of economic and social instability. People who lived during eras such as the Great Depression, and other times of recession, had suppressed feelings of exhaustion, dreariness, and hopelessness.Musicals, with their utopian sensibility, served as a retreat from the real world and brought feelings of happiness, life, and energy to these people, eve n if it was only for a short time. The way in which musicals achieve this is by posing this idea that the characters in the film are ‘real’ people, and their problems and resolutions to those problems are also ‘real’. When the audience ‘suspends their belief’, they forget that what they are watching is an actual construction and get swept up in the euphoric experience that encompasses the film (McMillin, 2006, p. 55).This utopian feel is a key aspect concerning the construction of a musical, since its main focus is to distract its audience from any hardships that may be occuring in their lives. The idea of a utopia refers to the â€Å"imagined or wished for versions of the human condition which are envisaged as actually happening in the world. † (Parker, 2002, p. 11). So if the audience can actually envision and believe that the events taking place in Mamma Mia! can actually happen, it keeps that hope alive within the individual watching the film that this happiness could also come to them. Mamma Mia! llustrates this utopia through the beauty of the film’s setting, the spontaneity of its musical numbers, and its happy ending which wraps up nicely with all characters finding their place in the world and true happiness. Mamma Mia! is set on a remote Greek island called Kalchuri and is filled with vivid shots of the luxurious beaches and a vast mountain side. Total relaxation and happiness is the type of environment that this island paradise presents to its viewers. To further the island’s appeal, Sophie mentions in the film that it was â€Å"once the site of Aphrodite’s fountain, the goddess of love.If you drank the water you were supposed to find true love and perfect happiness. † This mythical fountain ads a mysterious element to the island making it even more appealing to the audience, and also serves as a metaphor foreshadowing the status of absolute utopia that is finally restored tow ards the conclusion of the film. The audience can easily envision themselves in this type of setting, removing them from their harsh reality into this blissful place where almost anything can happen.Therefore, the events which take place in the film seem more believable along with the immense focus on spontaneity, which also adds to the euphoric atmosphere which encompasses the film. The theme of spontaneity is common in most musicals and is prominent in Mamma Mia! taking form throughout the film in random events such as an arbitrary burst of laughter by a group of Greek people for no reason in particular, or a piano placed in the most awkward position on a dock with a man playing the exact cords in time with the song during the â€Å"Dancing Queen† scene.Spontaneity is also exposed in most of the musical numbers where the characters have a tendency to just break into song at any given moment, even when the audience is least expecting it. â€Å"The musical, technically the m ost complex type of film produced in Hollywood, paradoxically has always been the genre which attempts to give the greatest illusion of spontaneity and effortless. † (Cohan, 2002, pp. 34-35). The character Harry Bright, played by Colin Firth, even goes as far as to articulate the word several times throughout the film referring to his own spontaneity, or lack thereof.By the end of the film, Harry’s character breaks through his shell of insecurity and reveals to everyone that he has found true love in the heart of another man. This detail comes as a shock and surprise to everyone, including the audience, furthering the development of his character and his spontaneity. Harry is not the only character in the film that finds true love and happiness at the conclusion of the film. Donna, played by Meryl Streep, and long time love interest Sam, played by Pierce Brosnan, are finally reunited.Her daughter Sophie and fiance Sky, played by Dominic Cooper, decide not to get married , and to leave the island and see the world, which is what they both originally wanted. Another unlikely pair is Bill and Rosie, played by Stellan Skarsgard and Julie Walters, who also find each other and are expected to also live happily ever after. To top it all off Aphrodite’s fountain, mentioned above, is finally discovered bursting through a crack in the courtyard and raining down on everyone symbolizing that ultimate utopia has finally been restored on the island.The way in which the film is wrapped up, is representative of its utopian nature. Many issues presented at the start of the film are no longer important such as the impending question which the whole plot is based on, who is Sophie’s father? The audience does not worry about this minor detail because utopia is reinstated and this happiness allows the audience to overlook the some loose ends that may be present at the end of the film. The feeling of utopia is closely tied in with the emotional connection that the audience feels with the characters and their happiness or sorrow.The emotions of the characters in the film also become the emotions of the audience, thus the appeal of the musical. Musicals most often will use the emotional vulnerability of the audience to ‘extend the fourth wall’ and establish a high level of emotional investment from the audience. One way in which the film attracts its audience is through the development of the soundtrack. Mamma Mia’s soundtrack unique from other musicals in that it is completely comprised of songs by an enormously popular musical group from the 70s and 80s named ABBA.Since these songs are so classic, most of the audience, which mainly consists of younger to middle-aged women, already know the words to most of the songs and become involved with the film by singing along with the characters. This also allows for the audience to become particularly attached to the characters, possibly even putting themselves in the char acter’s shoes. The strongest level of this audience to character relation is most evident during the various musical numbers taking place in the film. Musical numbers are woven into the narrative structure, motivated by character psychology and/or plot development and expressive of the emotions, opinions, or state of mind of the singer. † (Langford, 2005, p. 85). This is evident in the â€Å"Mamma Mia† number, performed by Meryl Streep. The character Donna has just discovered three men from her past in the attic of her old goat house. She has convinced herself that that part of her life was over; however, seeing them again after so many years has made her realize that it still greatly affects her and she cannot resist the urge to see more.The lyrics of the song, â€Å"Mamma mia, here I go again, my my, how can I resist you. Mamma mia, does it show again, my my, just how much I miss you. † show just how torn Donna is. As she sings these lyrics she is stumbl ing around, shocked and confused as to exactly why these three men are here. One can hear the bewilderment and frustration in her voice, and also see it in her actions. There is a constant struggle between what her head is telling her and what her heart wants her to do. The entire musical number is playing off her emotions and her state of mind, causing the audience to feel those same feelings.The mise-en-scene during this scene is interesting; she is alone for most of the scene, but is joined near the end by a group of islanders. This group of people help her in deciding whether or not to confront the three men. The group become just as curious as Donna in finding out why these strangers are on the island. The sight of the men takes Donna back to her past throughout the musical number as all those deep feelings of longing which she has suppressed for so long. The sight of these men makes Donna incredibly nostalgic, which introduces another main theme from the film.Nostalgia is a pr ominent theme in the film, the feeling of longing for the past is brought up several times. The plot itself deals with the idea of bringing Donna face-to-face with her past and the characters themselves are constantly referencing ‘the good old days’. Many musical numbers in the film such as â€Å"Our Last Summer† and â€Å"Slipping Through My Fingers† deal with this issue. One number in particular that references this idea directly is the â€Å"Dancing Queen† scene. At the commencement of this scene Donna’s best friend Tanya, played by Christine Baranski, says, â€Å"Whatever happened to our Donna?Life and soul of the party, el rock chick supremo? † Donna then replies with, â€Å"I grew up† and Tanya says, â€Å"Well grow back down again! † Tanya is reminiscing about the past when Donna was a free soul and encourages her to find that inner youthfulness that they are longing to see in her their old friend. The words of the song openly reference the theme of nostalgia; â€Å"And when you get the chance, you are the dancing queen, young and sweet, only seventeen. † These words transport Donna into the past, back to that carefree girl that her friends were encouraging her to find.This scene also conveys the theme of longing to the rest of the women on the island who are also coping with this same dilemma. Young and old women come together to channel their inner nostalgia and bring back the youthfulness that is trapped inside each one of them. The responsibility and obligation associated with growing old is like a burden over the women keeping them from unleashing their suppressed feelings. This is illustrated in the scene by an older woman who is carrying a bundle of wood on her back.As Donna and the other women pass her singing and dancing, she proceeds to lift the bundle off her back and throw it aside, while singing â€Å"Oh Yeah! † in time with the song and joining the rest of the wome n. The bundle of wood is a metaphor for the burden which is inflicted on all women as they grow older. The message that this scene is attempting to portray is that just because you grow older, it doesn’t mean you should let go of your past and youthfulness. Throughout Mamma Mia! the main aspects of a musical are truly seen and even challenged.Audiences appreciate musicals because the help them escape the, at times, bleak realities of the lives and represent a utopia that they feel is attainable through the extreme emotions expressed by the characters and the storyline. Nostalgia plays a great part in this film in particular because the characters are constantly evaluating their behaviours and questioning the decisions they have made in the past. Mamma Mia! follows the classic structure of a musical but combines an intriguing plot and an extremely popular musical soundtrack creating an appealing film for all audiences to enjoy.Bibliography Cohan, S. (2002). Hollywood musicals, the film reader. New York: Routledge. Langford, B. (2005). Film genre: Hollywood and Beyond. Edinburgh University Press. Lloyd, P. (Director). (2008). Mamma Mia! [Motion Picture]. Mamma Mia! (1990-2009). Retrieved March 11, 2009, from The Internet Movie Database: http://www. imdb. com/title/tt0795421/ McMillin, S. (2006). The Musical As Drama. New Jersey: Princeton University Press. Parker, M. (2002). Utopia and Organization. Oxford: Blackwell Publishing. Shenton, M. (2009). Mamma Mia! Retrieved March 10, 2009, from http://www. mamma-mia. com/showhistory. asp

Primary Government Contract Types

There are three primary types of government contracts: fixed price, cost reimbursable and time and materials. Fixed price contracts have a negotiated price that remains the same over the life of the contract so the amount you will be paid remains the same. Cost reimbursable contracts involve the government paying for the actual cost to complete the work. Cost reimbursable contracts have a variety of schemes for providing a fee or profit to the contractor. Time and materials contracts have agreed to rates for labor and materials that do not change over the contract and are billed as incurred. Time and materials contracts can have annual escalation rates incorporated in them to reflect increasing costs. Cost Plus Incentive Fee (CPIF) A cost plus incentive fee contract is one where the vendor is reimbursed for costs incurred plus fee based on a formula tied to costs. The fee formula can vary and is normally designed to encourage the contractor to keep costs down. Cost Plus Award Fee (CPAF) A cost reimbursement contract where the objectives of the contract are determined to be completed by subjective means. The contractor receives reimbursement for their costs plus the award fee. Cost plus award fee contracts can not be used when cost plus fixed fee or cost plus incentive fee contract would be more appropriate. Cost Plus Fixed Fee (CPFF) A cost plus fixed fee contract reimburses the contractor for the cost incurred to complete the work plus a negotiated fixed fee. The fee does not change based on cost of the work. Cost is calculated based on actual amounts paid for labor and materials plus fringes, overhead and general and administrative rates. Fringe, overhead and general and administrative rates are computed annually and reflect the actual corporate costs. Many government contracts are cost reimbursable. Firm Fixed Price or FFP contracts have detailed requirements and a price for the work. The price is negotiated before the contract is finalized and does not vary even if the contractor needs to expend more or less resources than planned. Firm fixed price contracts require the contractor to manage the costs of the work in order to make a profit. If more work than planned is required then the contractor may lose money on the contract unless a contract modification is obtained. Firm fixed price contracts can also be more profitable if costs are closely managed. Fixed Price Contract With Incentive Fee Target (FPIF) The fixed price contract with incentive fee contract is a firm fixed price type contract (as compared to a cost reimbursable). The fee can vary depending on whether the contract comes in above or below planned cost. These contracts do contain a ceiling price to limit the government’s exposure to cost overruns. Fixed Price With Economic Price Adjustment Fixed price with economic price adjustment contracts are fixed price contracts but they contain a provision to account for contingencies and changing costs. An example is the contract may contain an adjustment for an annual salary increase. Time Materials contracts have rates negotiated before contract award for the cost by labor category and materials. As work is completed the contractor bills against the rates agreed to in the contract regardless of the actual cost. Know which contract type is planned in advance of submitting a proposal as well as during contract negotiations. Knowing the contract type allows you to plan the project and how best to manage it for success. Before a company can get a cost reimbursable contract it must have an approved accounting system.