...Globalization and Poverty Introduction Globalization is the process of international cooperation ranging from world views, products, ideas, and national unique cultures, driven by technological innovation in the process of industrialization. Contemporarily, as the technologies of information, transportations, and telecommunications developed, the distance among nations has been getting closer and closer, fading out the existence of countries boundaries. We can travel to the other side of the world overnight, can easily access to other countries culture such as food, songs, dramas, and news, and can contact to those who live in other country though email or telephone whenever we want to. We are able to know affairs happened in other countries immediately and see and talk to diverse countries people by video chatting on online like a neighbor. As consequence of this development, the speed of globalization is being accelerated more and more. Several decades ago, just a few persons would travel to other countries unlike these days, but now, the number of people, who abroad travel to, have dramatically increased. That is, that happening to go abroad is no more special event and it provides a condition that the relation of nations in the world are approaching together and by extension, combined the world as one village. In addition, as Mohr (2013) claimed, “Economic globalization gives governments of developing nations access to foreign lending. When these funds are used on infrastructure...
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...the People’s Republic of China, Beijing, China Abstract With globalization, countries are more connected than before by trading flows, which amounts to at least 36 trillion dollars today. Interestingly, around 30{60 percents of exports consist of intermediate products in global. Therefore, the trade flow network of particular product with high added values can be regarded as value chains. The problem is weather we can discriminate between these products from their unique flow network structure? This paper applies the flow analysis method developed in ecology to 638 trading flow networks of different products. We claim that the allometric scaling exponent g can be used to characterize the degree of hierarchicality of a flow network, i.e., whether the trading products flow on long hierarchical chains. Then, it is pointed out that the flow networks of products with higher added values and complexity like machinary, transport equipment etc. have larger exponents, meaning that their trade flow networks are more hierarchical. As a result, without the extra data like global input-output table, we can identify the product categories with higher complexity, and the relative importance of a country in the global value chain by the trading network solely. Citation: Shi P, Zhang J, Yang B, Luo J (2014) Hierarchicality of Trade Flow Networks Reveals Complexity of Products. PLoS ONE 9(6): e98247. doi:10.1371/journal. pone.0098247 Editor: Dante R. Chialvo, National Scientific and Technical...
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...The advancements in transport and communication provide a rapid movement of goods and help in lowering inventory levels. In 1880’s, the department stores and mail-order houses used advances in telegraph and railroads to exploit the opportunity of economies of scale and scope while in 1990’s, the global retailers used modern technology and distribution system for the same purpose. The internet, scanner technology, market research, and data obtained from credit cards provide various opportunities for retailers such as economies of scale and scope. The retail stores like Tesco and Wal-Mart price the products lower as compare to their products and this is one of the reasons that people consider modern format retail stores and other reasons include: large variety of products, all ranges available under one roof, and opportunity of “one-stop shopping”. These modern stores have some drawbacks as well and the major one is that they are located far from the city centers. It is critical for both consumers and suppliers though rents of property are less...
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...69% of market share in the UK. Looking at the experience curve (1960: Boston Consultancy Group) A new entrant would have to achieve the economies of scale needed to achieve cost parity with the big 4 and compete on cost advantage. In the supermarket industry achieving economies of scale is not on production but other factors such as efficiency, pricing, range of goods and value of products. Tesco for example have very low cost margins in comparison to the scale of their operations and distribution channels but they are able to achieve high sales because the convenience, range of products and different services they offer. Product differentiation is another barrier to entry, a new entrant would need to achieve and individual level of differentiation and attain an identity through promotions and costly advertising, total advertising costs for the big for in 2009 was approximately £140m. New entrants also face disadvantage in lack of expertise and knowledge of consumer trends, access to distribution channels and location to gain competitive advantage. The big 4 are also highly responsive to competition and what they do, any move will be counter acted to sustain market share. The threat of new entrants in this industry is...
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...decreasing the budget cost of bottling and distribution. The company plans are to acquire several bottling plants in the vicinity of the consumer market to reduce the distributing and manufacturing cost. Similarlyby employing the SAP ERPsoftware, Pepsi cola anticipates the manufacturing and distribution procedures can be standardized. The inventory management system better perform surveillance of the raw material inventory and improve accuracy of stock levels of goods allowing them to meet the need of the market. By implementing this strategy, the cost of manufacturing and distribution will be reducedand Pepsi cola will improve the profitability in the short and long-term beverage market. One initiative Pepsi cola identified in their annual report where to implement growth in the future. The United Statesand other developed countries are not expanding fast enough to accomplish their projected financial performance. Competition appears to be the major factor alongside health awareness and demanding economic circumstances. Because of these financial burdens Pepsi cola must take exploits to make certain the beverage business ensures financial growth. The initiative strategies is basedon induction of new products centered on nutritional products such as Quakers, Tropicana, andGatorade in the global market for health and wellness in consumer packaged goods (The Power of PepsiCo Annual Report 2011). By expanding the beverages business in global...
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...that are either found or stored in nature. Common primary energy sources are coal, oil, natural gas, and biomass (such as wood). Other primary energy sources available include nuclear energy from radioactive substances, thermal energy stored in earth’s interior, and potential energy due to earth’s gravity. The major primary and secondary energy sources are shown in Figure 1.1 Primary energy sources are mostly converted in industrial utilities into secondary energy sources; for example coal, oil or gas converted into steam and electricity. Source Extraction Coal Processing Preparation Primary energy Coal Open or Deep Mines Secondary Energy Steam Thermal Purification Hydro Coke Nuclear Mining Enrichment Power Station Electricity Natural gas Gas Well Treatment Natural gas Thermal Petroleum Oil Well Cracking and Refining LPG Petrol...
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...Understanding the external environment (Industry attractiveness) 1. Identify the industry, product segments and value chain. The industry is the Australian Non-alcoholic beverage industry. Currently, Australian Beverages Ltd is the second largest competitor behind Butlers Corporation. Industry consolidation has been occurring but is not expected to continue in the future due to the relatively high market shares held by major competitors. Core operations cover processing and bottling (not retailing). Product segments include CSD (in decline stage), Diet CSD, Fruit Drinks, Milk Drinks, Energy Drinks, Sports Drinks, and Ready to drink coffee/tea. Entry into the snack food market was recently undertaken. 2. What is the current life cycle position of the industry? The Australian Non-Alcoholic Beverage Industry is at the mature stage of its life cycle. Whereas, the bottled water manufacturing industry is currently in growth stage. Major segments of the bottled water industry are still water and sparkling water. 3. What have been the key issues affecting historical and future industry growth? What was their impact or their likely impact and the overall assessment of the industry’s future growth? Key Issues influencing growth, using PESTEL Model (Analysis of industry as a whole including bottled water industry. Trends in broad industry also impact the bottled water industry) FACTOR ISSUE Historical / Future NATURE OF IMPACT (+ / = / -) Politics Import Tariffs – only affects...
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...Arcor: Global strategy and local turbulence Confectionary industry: Confectionary industry is highly competitive industry. North America and Western Europe accounted for 2/3 of its sales, confectionary company are targeting the emerging market which is very attractive for chocolate and candy companies. Consumer-Largely teens and adults are consumer of chocolate and candy products. Substitute- substitutes of confectionery products are snacks, dairy and bakery products which is easily available in the market. Competitors- c4 ratio for chocolate is very high (86%). But c4 ratio for candy is very low (17%). It means chocolate market is very competitive as compared to candy. Supplier power- supplier power is low because most of the firm has its own supplier. Entry barrier: chocolate- high, high investment requires. Candy –low. Arcor: Arcor, world’s 13th largest and Argentina’s largest confectionary manufacturer is planning an international growth strategy at a time when Argentina is recovering from the worst financial crisis. Arcor has grown both volume and value to be a global player in the confectionary industry. Arcor value proposition 1. Self-sufficiency in producing product input. 2. Low cost, high in volume and offering wide variety of products. 3. Efficient production capability. (1) Arcor global strategy Latin America: Taste preferences and consumption of Latin America is pretty similar to Argentina. So Neighboring country had historically been center of attraction...
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...Global Economic Environment In: Business and Management Global Economic Environment Global Economic Environment Generally, global economic environment is influenced by various factors such as technological, environment, political, socio-cultural, and demographic that directly affects businesses. Economic environment refers to the nature of economic systems and policies, distribution of income and wealth, and level of income. Indeed, economic environment has a complex and very dynamic nature; it is continually changing along with the changes in political situations and government policies. Global Economic Environment Mainly, global economic environment is comprised of several components including the economic systems, conditions, policies, legislations, and environment. Indeed, the economic policies being imposed in every business unit are significantly influences by the overall condition of economy. This includes the improvements that occurred in economic conditions such as the purchasing power of the public, standard of living, distribution of income, and supply and demand. Mainly, these factors reflect the size of the market. Another factor reflecting the economic condition is the business cycle, which is critical to every business unit. It refers to the different stages such as prosperity, boom, decline, depression, and recovery. The economic condition of a country can be understood through its national income, per capita income, and distribution of income, demand and...
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...Global and US beverage industry – macro environment * In 2009 the global sales of beverages industry was $ 1 581,7 billion, with a forecasted sales value of $ 1 775,3 in 2014. * In 2009 48,2% of the market share belonged to carbonated soft drinks, 29,2% to bottled water, 12,4% to fruit beverages, and the rest to alternative beverages. * Consumers were reducing their consumption of carbonated soft drinks, with a growth of – 2,3% in 2009. Consumer preferences have shifted. * The global growth of alternative beverages grew from 2005 to 2009 from $ 27,7 billion to $ 40,2 billion, with a projected value of $ 53,3 in 2014. * The $ value global market growth for alternative beverages grew at a 9,8 % annually between 2005 and 2009, and has a forecasted growth rate of 6,7 % between 2010 and 2014. * Of the alternative beverages market, the USA has 42,3 % of the share, Asia- Pacific has 31,5 %, and Europe has 22,2 % of the share. * In the US, sports drinks accounted for almost 60 % of alternative beverages sales, while vitamin- enriched drinks and energy drinks accounted for about 23 % and 18 % of 2009 alternative beverage sales. * Saturation rate for all types of beverages was high in developed countries. * Market maturity and poor economic conditions caused the US beverage industry to decline by 2,3 % in 2008 and by 3,1 % in 2009. * The entering of new geographic areas, the steady growth of the purchasing power of consumers in developing...
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...essential to fulfilling the commercial and legal requirements. In the event of failure to comply with the stipulated supply of period, the seller may not only get his sale amount back, but may also be legally penalized, if the sales contract so specifies. There is no doubt that better delivery schedule is a good promotional strategy when buyers are reluctant to invest in warehousing and keeping higher level of inventories. Similarly, better and/or timely delivery helps in getting repeat orders through creation of goodwill for the supplier. Thus, as effective logistics system contributes immensely to the achievements of the business and marketing objectives of a firm. It creates time and place utilities in the products and thereby helps in maximizing the value satisfaction to consumers. By ensuring quick deliveries in minimum time and cost, it relieves the customers of holding excess inventories. It also brings down the cost of carrying inventory, material handling, transportation and other related activities of distribution. In nutshell, an efficient system of physical distribution/logistics has a great potential for improving customer service and reducing costs. Logistics has gained importance due to the following trends • Raise in transportation cost. • Production efficiency is reaching a peak • Fundamental change in inventory philosophy • Product line proliferated • Computer technology • Increased use or computers • Increased public concern...
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...A HANDBOOK FOR VALUE CHAIN RESEARCH Prepared for the IDRC by Raphael Kaplinsky and Mike Morris* We are grateful to colleagues in both our individual institutions and in the Spreading the Gains from Globalisation Network (particularly those participating in the Bellagio Workshop in September 2000) for discussions around many of the issues covered in this Handbook and also to Stephanie Barrientos, Jayne Smith and Justin Barnes. An Important Health Warning or A Guide for Using this Handbook Lest anyone feel overwhelmed by the depth of detail in this Handbook, especially with respect to the sections on methodology, we would like to emphasise at the outset: this Handbook is not meant to be used or read as a comprehensive step by step process that has to be followed in order to undertake a value chain analysis. We know of no value chain analysis that has comprehensively covered all the aspects dealt with in the following pages, and certainly not in the methodologically sequential Handbook set out below. Indeed to try and do so in this form would be methodologically overwhelming, and would certainly bore any reader of such an analysis to tears. Our intention in producing a Handbook on researching value chains is to try and comprehensively cover as many aspects of value chain analysis as possible so as to allow researchers to dip in and utilise what is relevant and where it is appropriate. It is not an attempt to restrict researchers within a methodological strait-jacket...
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...and Wuding Planting Base was established to carry out the forward vertical integration. Industry players are adjusting to open market and multinationals were coming into play. Many of YB products had reached maturity and growth potential was limited in current state. To respond to current challenges YB established a series of strategies “one core and four growth areas”. The “one core” would focus on the YB headquarters and the three companies it had acquired, as well as the sales network. Symptoms In order to depict the problem for YB there were three issues. Firstly, it is evident YB has a growth issue. Many of YB's products have reached or were reaching maturity. Secondly, there is a competition and global problem where the Chinese market was open to Global competition in 2002 because of their entrance to WTO. Thus, several diversified and vertically integrated companies had the opportunity to enter the industry. YB must "grow bigger through integration and diversification or they would...
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...| | |UNIVERSITY OF TECHNOLOGY, SYDNEY | | | |Strategic Management 21705 | |Summer 2014/2015 | | | | | |Individual Report on the | |Ann Taylor Case Analysis | |Survival in Speciality Retail | | ...
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...of company. Threat of new Entrants (low) The company has been lunched since 1866 which gave Nestle a wide experience in the food and beverage industry. With substantial brand equity and a base of loyal customers Nestlé is at an insignificant risk from entrants. Nestlé has an advantage of holding majority of the share in the market where competition is becoming increasingly fierce in the world today. Although the food and beverage industry is very competitive and is constantly evolving with entrants, small business don’t have much advantages due to high cost of business, little profit which lead their survival into serious threat. Consumer demand mostly focuses on brand which makes difficult to access new business. Nestle Distribution Channel is indirect. Indirect channel is used by companies who do not sell their goods directly to consumers. (REF...
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