...Trade theory 1-Mercantilism Thomas Mun (17th century) stated that foreign trade was only beneficial if a country “sells more to strangers yearly than we consume of theirs in value” 2-Absolute advantage (1776, Adam Smith) The ability of a country to produce a product with fewer inputs than another country 3-Comparative advantage (1817, David Ricardo) The notion that although a country may produce both products more cheaply than another country, it is relatively better at producing one product than the other 4-Product life cycle theory A product life cycle refers to the time period between the launch of a product into the market till it is finally withdrawn from it. In a nut shell, product life cycle or PLC is an odyssey from new and innovative to old and outdated! This cycle is split into four different stages which encompass the product's journey from its entry to exit from the market. This theory suggest that products pass through a four-stage cycle: 1- Introduction 2- Growth 3- Maturity 4- Decline 5-New trade theory Free trade implies specialization and requires that nations neither artificially limit imports nor artificially promote exports. It suggested that it might benefit countries with an advantage in producing certain goods to initially protect the trade of such goods. By doing so, the economic advantage for the producing company might be more greatly realized, especially in the future. 6-Porter’s determinants of national competitive...
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...Business Research Report Entering the European Market Table of Contents Executive Summary 3 Introduction 4 Research Findings 4 Customs and Business Etiquette 4 European Law and Finance 5 Researching a Foreign Market 7 Recommendations 8 Conclusion 9 References 10 Executive Summary Expanding a business poses certain risks, and entering a foreign market can be additionally challenging. This report serves to guide foreign expansion in Europe by listing the main areas to be focused on, and recommendations for how to meet these specific needs in order to succeed in international ventures. Learning the customs and idiosyncrasies of the regions where the new business venture is planned is vitally important in order to penetrate the market. Understanding that good business practices can differ in other parts of the world, and applying best practices in all areas of business will create successful partnerships and customer bases. Applying foreign law is likewise important, as failure to comply with regulations where business is conducted can result in sanctions, fines, and have a generally negative overall impact on operations. Europe in particular has certain advantages of standardized laws that are applied throughout all European Union members, 27 countries in all. Thorough research of an organizations chosen market is another key stage to mitigate the risks of entering a foreign market. Through the use of focus groups and in-house research a...
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...Management Dr. Snell May 19, 2014 Case Study: Midas Specialization is a two-edged sword. When an organization specializes, they become experts in a particular process, product, or operation. In exchange for this deeper knowledge and ability in one factor, the organization typically suffers a loss of width in the marketplace therein reducing their potential customer base. Efficiencies should certainly be derived from this specialization and with efficiency may come greater profitability. When examining such an organization, a case study is useful to help break down the scenario and discover real-world effects of specialization. In this paper, the company Midas will be reviewed for their operational efficiencies, potential weaknesses and other negative impacts, and how, through analysis of these factors, a better business paradigm can be developed and implemented. Midas provide vehicle services related to exhaust, brakes, and shock absorbers. They do not offer general automotive services but rather specialize in those three areas. As described by Vonderembse and White (2013), this provides Midas with a number of advantages. Firstly, the limited services allows Midas to maintain a much more limited inventory which enables the workers to have the parts they need readily at hand near where work is being performed. Because of the focus on specific tasks, tools, training, and skills are also specialized and customized to fit the specific needs of the operation. “By increasing...
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...entrepreneur carries around in their head. * It is a very powerful tool for the management of the venture. * It provides a sense of direction by being the light at the end of the tunnel. * It helps the entrepreneur to define his or her goals. * It provides the entrepreneur with a sense of warmth and encouragement when the going gets tough. * It guides the generation of strategy for the venture. * It gives the venture a moral content and helps define social responsibilities. * It can be used to communicate what the entrepreneur wishes to achieve to other people. * It can be used to attract people to the venture and motivate them to support it. * It plays a crucial role in supporting the entrepreneur’s communication and leadership strategy. Communicating and Sharing Vision-the first stage must be to understand why other people will find the vision attractive. Approaches to Communicating Vision 1. I have a Dream-entrepreneurs are explicit about their vision. * They describe the better world just as they see. 2. Talking Specific Goals-entrepreneurs can break down their vision into a specific goals relating. * To the value that will be gained * To the relationships that will be created * To the moral content of the new world 3. Talking Strategy-approach that the business will take to achieving its goals and the task that must be undertaken in order to create the new world. 4. Story-telling-entrepreneurs give their...
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...selling products and/or services based on their environmental benefits. Such a product or service may be environmentally friendly in itself or produced and/or packaged in an environmentally friendly way. The obvious assumption of green marketing is that potential consumers will view a product or service's "greenness" as a benefit and base their buying decision accordingly. The not-so-obvious assumption of green marketing is that consumers will be willing to pay more for green products than they would for a less-green comparable alternative product - an assumption that, in my opinion, has not been proven conclusively. While green marketing is growing greatly as increasing numbers of consumers are willing to back their environmental consciousnesses with their dollars, it can be dangerous. The public tends to be skeptical of green claims to begin with and companies can seriously damage their brands and their sales if a green claim is discovered to be false or contradicted by a company's other products or practices. Presenting a product or service as green when it's not is called greenwashing. 3 Keys to Successful Green Marketing Green Marketing Can Win More Customers If You Do It Right By Susan Ward, About.com Guide See More About: ; be genuine, educate your customers, and give them the opportunity to participate. 1) Being genuine means that a) that you are actually doing what you claim to be doing in your green marketing campaign and b) that the rest of your business policies...
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...Student: Instructor: Class: Date: New Technology Enterprise Resource Planning In a bid to grow in the next five years, GBI manufacturing company can benefit by implementing enterprise resource planning (ERP) software. ERP is management software that is compatible with any business need. ERP is essentially software that integrates all the facets of an organization in terms of receiving, processing, storage and management of data from every stage of a business operation. This business management software enables the assimilation of all the functions of an organization such as planning, manufacturing, sales, marketing, procurement, human resource and finance (Practices, Implementation Best 38-45). Advantages of ERP ERP business management software offers a myriad of benefits. These include: Integration of business operations The basic advantage of enterprise resource planning software is the integration of various business processes in a single platform thereby saving the company millions of money. This software saves money to the company as all the company’s transactions are linked in a single system. As such, fewer computers and their appliances are used. Again, the software utilizes a single server. As a result, the company saves a lot of money through reduced energy operational costs (Yang, Song & Seddon n.p.). As this software utilizes a limited number of machines perhaps one or two per department, the company saves a lot in terms of staff needed to operate the computers...
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...Module 7 Assignment To implement a related business strategy, a firm must begin to engage in business in more than one product or market. The firm moves away from being a single-business or dominant-business to adopt higher levels of corporate diversification (Barney pg. 191). Less than 70 percent of the firm’s revenue will come from a single product market. Also multiple lines of business are linked. An example of a related business strategy is Apple Inc. entering the world of cell phone and tablet market. Since the late 80s, Apple has established themselves as computer company. It is looked upon in high regards with the invention of their Macbook line within the laptop community. When it comes to a luxury laptop no one comes close. Apple didn’t want to just be a force in the computer market but also in the cell phone and tablet community as well. With the edition of the Iphone and Ipad, Apple has widened its range of business. A great idea Apple has implemented amongst their product is the connectivity. If a customer has more than one apple product, information can be wirelessly transferred between the products without internet usage. Other companies such as Samsung who also engage in the trio business of computer, phone, tablet has also adopted this strategy. However even though a related diversification strategy has worked for Apple, others may not flourish within this idea. One disadvantage of a related diversification strategy is operational stress...
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... Direct reservations tool comparison was created to compare single reservation methods with reward programs reservation methods. Two hotels were used to for the comparisons; Hyatt and Hilton. The summary will analyze similarities and differences found between the two hotels; and also between the two reservation methods by way of a matrix comparison tool. Also, we will answer how organizations leverage the information gathered to form a aggressive edge; and how reward programs support those goals more effectively than single, direct reservations. Competitive Advantage Competitive advantage can be derived from various sources. The information that Hyatt and Hilton gathers from its patrons is no exemption. Whether a customer is a rewards member or passing through for a single night, both chains acquire the name, phone number, address and credit card information. Hilton requests the email address and pet preference, while Hyatt obtains bed and special requests for single reservations. Even without a customer’s enrollment in a rewards program, Hilton can use the e-mail addresses provides to market products and even promote its own rewards program. Hyatt’s requested information is primarily useful to save for customer convenience which may contribute to Hyatt being rated best in customer service. By tracking the times that the customers travel and where customers travel, which...
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...Benefits Of BPR Business Process Reengineering (BPR) can be defined as the elemental rethinking and radical redesigning of the businessprocesses in order to achieve remarkable improvements in critical measures of performance like cost, service, quality, and speed. An organization where application of BPR is being done, is process -oriented, where all processes are identified and given specific names. Each individual is aware of the particular process in which he or she is involved and complete process measurement such as monitoring and control is performed. Business Process Reengineering or BPR is also known by other names like Business Process Redesign, Business Process Change Management or Business Transformation. BPR brings numerous benefits to organizations and companies in which it is implemented. Some of the common benefits of BPR are: Increase Effectiveness. As all employees are aware of the processes to which they belong , they have a greater sense of responsibility. All processes are completely monitored under the strict control of the management. The net result of this is that employees deliver high quality products to their customers. Helps to improve efficiency. Proper management and control of all business processes reduces the time lag between different processes, which otherwise is quite high causing delays. This in turn reduces the time to market the product to the target customers and givesquicker response to buyers. Reduces cost. With the proper management...
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...Introduction: Many small businesses grow by taking opportunities to diversify, although there are risks because of limited resources on all fronts. Businesses should weigh up the risks and costs of opting for growth carefully against the benefits. business diversification isn’t just selling more types of products. Developing a business plan that includes well-researched, strategic efforts will not only expand the reach of the business, but also help increase the value of existing services. Definition: Diversification refers to a strategic direction that takes companies into other productsand/or markets by means of either internal or external development. Diversification can take several forms, including: • new, related products or services to existing customers • new markets for existing products • new products for new markets Deciding how and when to diversify depends on you having: • thorough market and customer research for the new product or service • a clear development strategy - including trying a new line or service for a short test period with prototypes and test marketing before totally committing to the new project • sales, marketing and supply chain operations that can cope with the added demands DIVERSIFICATION1.Introduction There are basicallytwo broad forms of diversification as listed below: Related diversification occurs when a company develops beyond its present productand market whilst remaining in the same area. For example...
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...competitive pricing, is the best way to ensure success. The production process is the method that businesses make products and services. A productive process is quite a fluid process. it will be analysed and tweaked as needed continually to make improvements in cost, speed and qualitiy. The main resources and stagesthat are involved to make up the production process are shown here below. How well-organised a business is at performing this transformation process will ultimately determine its success level. This level is what's known as the productive efficiency of a firm and it needs to be as efficient as possible. Efficiency in transforming its input resources into saleable output products lowers production (transforming) costs. This means using the minimum amount of input resources as possible to achieve a set amount of product outputs. While utilising the minimum amount of transforming costs like labour, electricity, waste output Doing this will minimise the production cost per unit and give the firm the ability to sell at a lower competitve price. Thus gaining an advantage over other competitve firms suppying the same product or service. Ultimately, the objective of the production process is to create goods and services that meet the needs and wants of customers. The needs and wants of customers will be met if a business can produce the correct number of products, in the shortest possible time, to the best quality and all at a competitive price. This is the underlying...
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...Goal setting is one of the most important tools used by organizations to guide them towards achieving their plans. Organizations are guided by their mission statement as their overall purpose for being. Vision statements are planned after the mission statement is established to help guide the company towards the kind of company they want to become. There are three types of goals an organization can use to start planning how they are going to execute their plan. Starting at the top with executive leadership, they have strategic goal for the company that includes their long term goals. The strategic plan is then set for up to a period of 5 years. From there, middle management sets the tactical goals. Tactical goals range from establishing policies and procedures to coordinating the work of first-line managers (Kinicki & Williams, 2016). Tactical plans are set for up to a period of 24 months. Lastly, first-line managers are set to facilitate the operational goals. First-line managers plan how to accomplish the goals of middle and upper management efficiently over the next 52 weeks. It is important that middle management and first-line management are part of the strategy process from the beginning (Christian-Liviu, 2013). It is important to bring them in because there will be significant change in the organization that needs to be accepted by all parties involved to guarantee participation by all the workers (Karnani, 2008, p. 515). Now that the organizational goals are established...
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...effective and readily available to most business owners in a package for professional use. This program is great for many businesses that need more organization in their sales, production, or finance departments etc. Secondly, this program is compatible with other programs, like Microsoft Word or Microsoft Excel, for ease of access. Being able to import an Excel spreadsheet into the Microsoft Access database cuts down on the amount of duplicate data. Lastly, Access can help with the collaboration of different departments when reporting to higher levels. For example, Microsoft Access can be utilized: to create a profit/overhead report for the President/CEO of the company, to track how much product each salesperson sells for goal setting/keeping, or just to keep track of your employees’ payroll. Overall, Party Plates will benefit from the use of this program. Although Microsoft Excel spreadsheet does not qualify as a database, this application is extensively utilized to hoard data and is habitually employed in working out uncomplicated database tribulations, since it is a flat file database. However, it is very useful to convert data currently held in Microsoft Excel spreadsheets into a relational database using Microsoft Access. First, converting Excel data into a relational database through Access has the benefit of lesser inaccuracies and variations. The significance of whichever database is to stock up interrelated information in a single place, allowing the user to connect...
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...Marketing Principles Task 3 LO2.2 Propose segmentation criteria to be used from products in different market Market segmentation Market segmentation involves grouping the various customers into segments that have common needs or will respond similarly to a marketing action. Each segment will respond to a different marketing mix strategy, with each offering alternate growth and profit opportunities. Some different ways you can segment your market include the following; Demographics which focuses on the characteristics of the customer. For example age, gender, income bracket, education, job and cultural background. From what have been observed, most Redbull consumers are male aged in the range of 14 to 50. Not concerning their income range, education level, job status or positioning and their cultural background. Psychographics which refers to the customer group's lifestyle. For example, their social class, lifestyle, personality, opinions, and attitudes. Redbull product is an energetic drinks that provides energy to the consumers. Therefore, the targeted consumer group is who are doing sports activities or whose work responsibility requires them to work on site exposed to the sun. Behaviour which is based on customer behaviour. For example, online shoppers, shopping centre customers, brand preference and prior purchases. Geographical location such as continent, country, state, province, city or rural that the customer group resides. The energy drink...
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...the company’s sales and c) a “real” market as defined by customers and competitors (Kulzick, 2007). Market definitions to be complete should include four different factors: 1. Company’s product or service ( Natural – organic personal care products that include: (Lip balm, oral care, hair care, body care, face cleansing and care and outdoor – sun care). 2. Customer ( Someone who pays the money for the service and/or product. According to the Natural Marketing Institute (2007), the Natural-Organic Personal Care Products Market targets consumers classified as LOHAS consumers. LOHAS is the acronym for Lifestyles Of Health And Sustainability. This refers to an integrated consumer group, which has a meaningful sense of environmental and social responsibility and incorporates those values into purchasing decisions. LOHAS is a critical target for companies marketing natural and organic personal care products because these consumers opinions are very influential and help push healthy environmentally- friendly products into the mainstream market. 3. Level in chain ( Develop, manufacture and distribution (Hoovers, 2009). Product develop: to improve an existing product or developing new kinds of products; manufacture: to make or process (a raw material) into a finished product, especially by means of a large-scale industrial operation and distribution: the process of marketing and supplying goods, especially to retailers....
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