...1. Identify the reasons why China outlawed direct selling in 1998. Do you think this action was justified? The Chinese officials issued a ban of direct selling on Amyway Inc. and it was a big threat and a loss of multi-million dollar profits. China issued the ban arguing that there were fears that the company was spreading heretical religion and was ready to start a secret society in China. Another reason for the ban was that China claimed that the organization acted as a base for criminal activity. The reasons for the ban are not justifiable because the company uses the pyramid scheme when selling its products. This is a threat to the Chinese government since it encourages sales people to recruit other members in the company. Further, the marketing strategy scares the Chinese officials and the high profits that the company is making. The ban is unsubstantiated and there is no solid reason to back up the claims. 2. Discuss the differences between adopting the conventional wholesale- retail approach of opening stores versus the direct selling approach. What are the issues of cost, control and commitment involved for each approach? In direct selling, the selling process of products and services involves person-to-person. This takes place in people instead of using another means such as the internet or catalogs. Generally, direct selling is different from the other selling processes in that, it moves the selling floor to the customers instead of making the customer to go to...
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...PYRAMID SCHEMES: Saving the network marketing industry by defining the gray by Kevin Thompson kevin@theadvocategroup.net copyright of Advanced Advocates, LLC. I. INTRODUCTION In these trying economic times, responsible network marketing companies are positioned to offer viable opportunities for people that desperately need them. They combine passion for products with individual ambition to create a powerful testimony to the unyielding principles of free enterprise. With a fair compensation plan, an exciting product, and proper education, independent agents across the globe (also referred to as distributors) can leverage the power of networking to dramatically change their financial circumstances. Network marketing companies are responsible for providing its distributors with marketable products and compensation plans that rewards and motivates the sales force. Ideally, the rewards are designed to be commensurate with the work performed. With a good product and a fair compensation plan, !! the average person is given an opportunity to completely redefine their finances while operating a home based business. Distributors earn income primarily in two ways. First, they can purchase products at wholesale and mark them up for retail sales, thus earning an immediate profit. Secondly, they can form a “downline” by recruiting additional distributors and earn commissions on their sales to customers and purchases for personal use. Since distributors are paid...
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...China outlawed direct selling in 1998. Do you think this action was justified? The Chinese officials issued a ban of direct selling on Amyway Inc. and it was a big threat and a loss of multi-million dollar profits. China issued the ban arguing that there were fears that the company was spreading heretical religion and was ready to start a secret society in China. Another reason for the ban was that China claimed that the organization acted as a base for criminal activity. The reasons for the ban are not justifiable because the company uses the pyramid scheme when selling its products. This is a threat to the Chinese government since it encourages sales people to recruit other members in the company. Further, the marketing strategy scares the Chinese officials and the high profits that the company is making. The ban is unsubstantiated and there is no solid reason to back up the claims. Discuss the differences between adopting the conventional wholesale retail Approach of opening stores versus the direct selling approach. In direct selling, the selling process of products and services involves person-to-person. This takes place in people instead of using another means such as the internet or catalogs. Generally, direct selling is different from the other selling processes in that, it moves the selling floor to the customers instead of making the customer to go to a particular location to make purchases. On the other side wholesale retailing differs from direct selling in that, selling...
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...Proposal for the Online Expansion of Pyramid Advertising Western Governors University QRT2 - eBusiness (0610) Task 1 This paper describes a plan for using online marketing to expand the geographic scope of Pyramid Advertising's clientele and increase its exposure to marketing managers in mid-sized and larger companies. Table of Contents 1. Viability of Online Methods to Increase Demand for Printed Media and Product Sampling.... 3 2. Current Online Competition....................................................................................................... 4 3. Online Marketing Strategies....................................................................................................... 6 4. Social Media Development and Integration............................................................................... 8 5. Conclusion.................................................................................................................................. 9 6. References................................................................................................................................. 11 7. Appendix A............................................................................................................................... 12 8. Appendix B............................................................................................................................... 13 9. Appendix C............................................
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...HBR.ORG Profits at the Bottom of the Pyramid A tool for assessing your opportunities by Erik Simanis and Duncan Duke OCTOBER 2014 REPRINT R1410G Erik Simanis is a senior extension associate at Cornell University’s Johnson School of Management. Duncan Duke is an assistant professor of management at Ithaca College’s School of Business. 2 Harvard Business Review October 2014 This article is made available to you with compliments of FM Global Insurance. Further posting, copying, or distributing is copyright infringement. To order more copies go to www.hbr.org or call 800-988-0886. FOR ARTICLE REPRINTS CALL 800-988-0886 OR 617-783-7500, OR VISIT HBR.ORG PROFITS AT THE BOTTOM OF THE PYRAMID A TOOL FOR ASSESSING YOUR OPPORTUNITIES BY ERIK SIMANIS AND DUNCAN DUKE During the past decade, many multinationals have come up short trying to make a profit by solving the pressing needs of low-income communities. Preoccupied with their social missions, companies have optimistically taken on challenging projects, only to be surprised when weak consumer demand and obstacles such as bad roads October 2014 Harvard Business Review 3 This article is made available to you with compliments of FM Global Insurance. Further posting, copying, or distributing is copyright infringement. To order more copies go to www.hbr.org or call 800-988-0886. PROFITS AT THE BOTTOM OF THE PYRAMID keep revenues low and costs high. Over tretched s and disillusioned...
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...Introduction to International Management Dr. Paweł Krzyworzeka 2015/2016 Grades There are two components: Group presentations (10 points) • We are going to discuss six cases (sessions no. 2, 3, 5, 6, 7, 9) • All groups have to read carefully all six cases and be prepared to give an oral presentation (ad-hoc, at least two times during our course) based on assigned questions (see the table below). • Group can earn up to 5 points for a presentation • Groups are fixed and preassigned (see the list) • Do not prepare any PowerPoint presentation, however, you may want to write up your answers in a form of short paper (1-2 pages) Take-home exam (10 points) Session Date Topics Readings 1 17.03.2016 Thursday Introduction • Globalisation • Competitive advantage of nations Additional readings: Davies, H. & Ellis, P., 2000. Porter’s competitive advantage of nations: time for the final judgement? Journal of management studies, 37(8), pp.1189–1214. Dunning, J.H., 1993. Internationalizing Porter’s diamond. MIR: Management International Review, pp.7–15. Porter, M., 1990. The competitive advantage of nations. Harvard Business Review, 68(2), pp.73–93. 2 31.03.2016 Thursday Global value chain • Outsourcing vs offshoring • Global value chain • offshoring • outsourcing • Resource-based view • Transaction costs • Intellectual property infringement Case: Ecco – Global value chain management 1. Describe the competitive environment of ECCO and determine...
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...Business Report of Shisha Bar named Pyramid Name: Hasan, Mohanad, Vlada Artemyeva, Rayan and Jiaqi Shu Tutor: Tessa Oksansen, Ahmet Zaifer Word count: 3245 Table of content: Executive summary…………………………………………………………………………………………………………………….3 1 Executive summary………………………………………………………………………………………………………………….3 Vision……………………………………………………………………………………………………………………………………….…3 2 Introduction…………………………………………………………………………………………………………………………….3 3 Business goals……………………………………………………………………………………………………………………….…4 4 What the business does…………………………………………………………………………………………………………..4 5 What makes the business different………………………………………………………………………………………...4 6 Legal requirements…………………………………………………………………………………………………………………4 Sales and Marketing…………………………………………………………………………………………………………………..5 7 Market research……………………………………………………………………………………………………………………..6 8 Profiling customers…………..…………………………………………………………………………………………………….7 9 Profiling competitors………..………………………………………………………………………………………………..….7 10 Pricing..………………………………………………………………………………………………………………………………..8 11 Promotion and advertising……………………………………………………………………………………………………8 Running the business…………………………………………………………………………………………………………………8 12 Staff………………………………………………………………………………………………………………………………………8 13 Premises……………………………………………………………………………………………………………………………….9 14 Suppliers…………………………………………………………………………………………………………………………….10 15 Equipment………………………………………………………………………………………………………………………….10 Finance……………………………………………………………………………………………………………………………………...
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...What can APEC do for Business: Fostering Economic Growth through the Business Development Program at the Base Of the Pyramid By Indra Surya, Susantio TABLE OF CONTENTS I. ABSTRACT II. INTRODUCTION III. UNDERSTANDING THE POOR AND THEIR NEEDS i) How Poor are the Poor? : Current Research and Publications on the Base of the Pyramid (BOP) Issues ii) Indonesia Poverty Reduction Programs IV. THE BASE OF PYRAMID : BUSINESS APPROACH i) Preliminary Measures for Forming the BOP Business Taskforce ii) Fair Trade Program iii) BOP Products & Service Expo iv) Duty Free BOP Outlets in major International Airports & Seaports V. FUTURE PERSPECTIVES AND CONCLUSION VI. REFERENCES I. ABSTRACT This essay attempts to emphasize the importance of the private sector’s involvement through APEC participation in fostering economic development at the Base of the Pyramid (BOP). In December 2008, the Asian Development Bank[1] reported that poverty in the Asia Pacific region is estimated to be much larger than earlier reported. The region was also reported to be facing major hurdles in meeting its Millennium Development Goals. Following ADB reports, in January 2009, the World Economic Forum[2], in partnership with The Boston Consulting Group presented a set of new insights and design principles which can help companies tap the economic potential of BOP markets in ways that serve both commercial and societal goals. In fact, both reports concluded that...
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...ASSESSED WORKING PROJECT HAVAIANAS & DUKKY(Chick-Fil-A) Marketing and Value 2010 Marketing Action 1: Havaianas Campaign History The history of Havaianas started in the earliest 20's, when Scotsman Robert Fraser arrived in Brazil and began manufacturing flip flops based on the traditional zori sandals, a Japanese product. At that time, sandals were very different. It was only in 1958 that Havaianas that we know today were designed with rubber. That was the birth of the trademark Havaianas (1962) In the 1960s, Havaianas were sold at small, neighbourhood stores for a low price, displayed between house cleaning products and were purchased exclusively by the lower classes. That kind of product exposition and public turned Havaianas known as “chinelos de pobre” (poor man’s flip flops). The style of the product wasn’t elaborated. The model was basic and it was available only in a limited range of colours (4 colours), even though the products were strong, durable, comfortable and cheap. And that was what made Havaianas so popular in Brazil. Indeed, one year after had been launched more than 13,000 pairs were produced every day The success made raise the interest of other companies and imitations of Havaianas began to appear in the 70’s. To respond to this movement, the company launched a campaign called “Havaianas: As Legítimas” (Havaianas: the Legitimate Ones) embodied by a famous Brazilian humorist, Chico Anysio. It was in 1988 that sales started to decline, going...
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...Date and time received Executive Summary Tennant Company was founded in 1870 by George H. Tennant and initially produced wood products and flooring solutions. Tennant now produces floor-cleaning equipment and technologies, and prides itself on “creating a cleaner, safer, healthier world.” Tennant differentiates themselves from competitors by offering cleaner, safer and healthier products to their customers as well as through direct customer interaction. The Company drew popularity in the 1940s as a cleaning company that offered its services to the defense forces of nations especially those involved in war. The Tennant brand is strong and so is its positioning within the market. They currently hold approximately fifteen percent of the global market share, with sales growing faster than many of their competitors. Tennant’s focus was rare as they chose to deliver a sustainable value to their customers without compromising on price or performance. This strength is not imitable with new companies as it something that is built over time although many existing companies have built the same brand strength with their products. This strength has proved to be a sustainable competitive advantage for Tennant. They have exploited this strength and achieved organization. External Assessment This industry is most affected by growing and shifting consumer expectations demand. This demand is influenced politically (by emerging policy and regulation product standards) and societally...
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...5 Objectives ................................................................................................................... 5 Scope and Limitation .................................................................................................. 6 CHAPTER II ................................................................................................................... 8 Traditional Shopping vs Online Shopping ................................................................... 8 Information Gathering/Shopping ................................................................................. 9 Customer Satisfaction ................................................................................................. 9 Customer Service Pyramid ........................................................................................11 Mobile Technologies...
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...Companies can Make Fortune at the Bottom of the Pyramid Rajesh N. Kumar James Cook University Table of Contents Executive Summary 3 Background 4 Introduction 4 What is the BoP Strategy 6 What is the Driver for MNCs to Focus on BoP Market 9 Is There a Buying Potential at the BoP 9 Behavior of Consumers in Asian Market 10 Sector With Highest Potential of Business in BoP Market 11 Recommendation 12 How to Approach the BoP Community - Innovation 14 Implement Innovative Approach to tap BoP Market 15 References 16 Appendix A 17 Appendix B 18 Executive Summary This report explores published journals, blogs and books around The Bottom of the Pyramid (BoP) being the breakthrough in the Strategy for businesses across segment and analyse what steps would lead to success through the journey of business around the 4 billion population existing in the bottom of the pyramid layer. Methods of analysis include statistical and market trend, and ratios of performance. Main area of focus is Asian market through the report as they account to 3/4th of the population residing in the bottom of the Pyramid, given the uniqueness of this region around culture, market behavior, people mentality and social dynamics. Gaining that knowledge would become important to have a break through into this market and ensure it’s a sustainable business...
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...innovation. These innovations associate with low-cost products like healthcare devices, wind power, micro finance, electric cars and many more. The success of these frugal innovated products enable developed countries to adopt well. Hence, reverse innovation refers to those innovations which are adopted by developing countries first and then by developed countries. These innovative products are a result of cutting edge technology, common sense and ingenious use of local commodities with the price range that is affordable to a huge mass of consumers like Tata's one lakh ($ 1677) car Nano, Nokia's sturdy mobile phones, the Chottu Cool' refrigerator and many more. These products might be conceptualized for the customers at the bottom of the pyramid still not limited by scaled down versions meant for the lower end. This paper is an attempt to evaluate how reverse innovations are possible in emerging markets and how it can unlock business opportunities at a global scale. Keywords Emerging market, frugal, innovation, product reverse, technology 1. Introduction In today's changing and competitive environment, innovation is must for the survival of any kind of business in the marketplace. The primary objective of any business firm is to understand the changing needs, wants and preferences of its customers and design the products accordingly. Innovation serves as a continuous response to changing circumstances; it not only helps to solve a problem but also creates a new capacity and opens...
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...| CW2 - Brand Book Review: Brand Asset Management | DRIVING PROFITABLE GROWTH THROUGH YOUR BRANDS by SCOTT M. DAVIS | Linda Tran 8.3.2013 | Introduction: According to the author, Davis said about his book, "In a nutshell, this book is about helping companies better understand how to manage their brands as assets. But it's not about searching for the silver bullet -- the best name or logo, the coolest service or product, or anything on the Internet. This book is about a mindset shift. Obviously, a long-term commitment is required for this mindset shift to take hold and for the approach I describe in this book to work. This book provides a roadmap to start to achieve Brand Asset Management excellence. It provides some new approaches and leverages successful approaches already established in many companies. And it demands that the brand be looked at holistically, encompassing every functional area within the organization." Davis Create phase and steps as follow: Phase One: Developing a Brand Vision Elements of a brand vision In phase one author is describing what good Brand Vision needs to incorporate the company's strategic and the financial growth goals. The key to the success is to create strong Brand Vision and every single word in it. First What the Brand vision is? How is it used? What kind of key inputs are needed and the last is Four-Part Vision Approach What makes A Brand Vision Statement? * A statement of the overall goal for the...
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...strategy + business issue 26 The Fortune at the of the SECURITY AND S T R AT E GY Bottom Pyramid by C.K. Prahalad and Stuart L. Hart content strategy & competition Low-income markets present a prodigious opportunity for the world’s wealthiest companies — to seek their fortunes and bring prosperity to the aspiring poor. 2 With the end of the Cold War, the former Soviet Union and its allies, as well as China, India, and Latin America, opened their closed markets to foreign investment in a cascading fashion. Although this significant economic and social transformation has offered vast new growth opportunities for multinational corporations (MNCs), its promise has yet to be realized. First, the prospect of millions of “middle-class” consumers in developing countries, clamoring for products from MNCs, was wildly oversold. To make matters worse, the Asian and Latin American financial crises have greatly diminished the attractiveness of emerging markets. As a consequence, many MNCs worldwide slowed investments and began to rethink risk–reward structures for these markets. This retreat could become even more pronounced in the wake of the terrorist attacks in the United States last September. The lackluster nature of most MNCs’ emergingmarket strategies over the past decade does not change the magnitude of the opportunity, which is in reality much larger than previously thought. The real source of market promise is not the wealthy few in the developing world...
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