...study the behaviour and decisions of service firms. Firms from Malaysia, as a developing country, with a fast growing economy that increasingly relies on services have shown a remarkable expansion into foreign markets, which has resulted in high foreign direct investment (FDI) outward inflows and increasing exports of services. This paper utilizes the resource-based theory, in which the main determinants of the choice of entry mode are organizational variables compared to environmental factors, to explain the choice of entry strategies made by Malaysian service firms and the motives for it. This study aims to develop a framework for the choice of entry mode strategies that has fewer shortages than others, analyze the determinants of entry mode strategy in order to find the similarities and differences existing between firms in the decision-making process for the choice of entry mode, and consider the role of psychic distance in adopting an appropriate strategy in different markets. Suggestions for future research are also presented. Keywords: Entry mode strategy, developing country, Malaysia, service industries, multinational corporations INTRODUCTION Because of the fast globalization of business since the 1980s, many firms have developed strategies to enter foreign markets and expand their operations beyond their national boundaries. Generally, the destination of such firms was emerging Asian and...
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...PARADIGM INTERNATIONAL OF THEECLECTIC PRODUCTION: A RESTATEMENT SOMEPOSSIBLE AND EXTENSIONS JohnH. Dunning* Universityof Reading and Rutgers University Abstract.Thisarticlereviewssome of the criticisms directed towards of the eclecticparadigm international over production the pastdecade, and restatesits maintenets.The secondpartof the articleconsiders a numberof possibleextensionsof the paradigm concludesby and that it remains robustgeneralframework explaining "a for asserting not of andanalysing onlythe economic rationale economic production and to but manyorganisational impact issuesin relation MNEactivity as well." INTRODUCTION The concept of the eclectic paradigmof international production'was first put forwardby the presentauthorin 1976 at a presentation a Nobel Symposium to in Stockholmon TheInternational Allocationof EconomicActivity.2 intention The was to offera holisticframework which it was possibleto identifyand evaluate by of the significance the factorsinfluencing both the initialact of foreignproduction and by enterprises the growthof such production. choice of the word eclectic The was an ambitiousyet deliberate one. It was meant to convey the idea that a full of of activities enterprises explanation the transnational needsto drawupon several strandsof economic theory;and that foreigndirect investmentis just one of a numberof possiblechannelsof international economicinvolvement, each of which is determined...
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...African and East African Asian Entrepreneurs ESRF Study on Globalisation and East Africa Economies ARGICULTURAL MARKETING AND SUPPLY CHAIN MANAGEMENT IN TANZANIA: A CASE STUDY Elina Eskola12 ABSTRACT This study describes the prevailing marketing arrangements in Tanzania at local, regional, national and export markets using Dar es Salaam, Ifakara, and Mtwara as case study examples. The major impediments for trade in Tanzania has been categorised into three groups: 1) Physical infrastructure, 2) know-how and capital, and 3) institutional framework. Insufficient physical infrastructure in terms of roads increases the cost of transportation, works as an informal market barrier, forms a wedge between the supplier price and consumer price, and increases the loss of perishable products. Lack of know-how shows in poor market orientation and business skills, and leads to difficulties in managing and obtaining loans. Furthermore, the current institutional framework is unable to support the formation of strong traders and producers’ associations and other representative bodies to enhance capacity building and to bargain for fairer terms of trade. In addition, the lack of market information and the weak legal framework lead to difficulties in negotiating trade agreements and enforcing the existing contracts. Currently the necessary institutional framework has been substituted for by long supply chains of middlemen, and relying on personal relationships between producers, traders and brokers...
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...can be found at: http://vis.sagepub.com/content/14/4/309 Published by: http://www.sagepublications.com On behalf of: Management Development Institute Additional services and information for Vision: The Journal of Business Perspective can be found at: Email Alerts: http://vis.sagepub.com/cgi/alerts Subscriptions: http://vis.sagepub.com/subscriptions Reprints: http://www.sagepub.com/journalsReprints.nav Permissions: http://www.sagepub.com/journalsPermissions.nav >> Version of Record - Oct 1, 2010 What is This? Downloaded from vis.sagepub.com by guest on October 31, 2013 MANAGEMENT CASE DISTRIBUTOR SALES FORCE PERFORMANCE MANAGEMENT Jaydeep Mukherjee & Anirban Basu Nestle India had initiated an aggressive market growth strategy which was difficult to implement because of the increasing turnover ofthe distributors' salesmen. The challenge was likely to get aggravated in future because ofincreasing employment optionsfor the salesmen as well as increasing competition for retail shelf space. The salesmen were in the payrolls of the channel partners, and the diversity of the management practices of channel partners made...
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...Invisible hand, Market failure and Government intervention Invisible Hand Invisible Hand, term used in the book “The Wealth of Nations”, by classical economist Adam Smith, to characterize the idea that a guiding force leads individuals seeking their own economic self-interest to act in ways that also benefit society. A vindication of Adam Smith's intuition about the existence of an "invisible hand" bringing consistency and order to the chaos of individual actions - would be remarkable in them. Much of economic theory of the textbook variety is a celebration of the free market system. This celebration has two parts. First, the operation of the price system, in the context of competitive markets, leads to balance between the demand and supply of the different goods and services traded. In other words, flexible prices result in competitive markets clearing. Second, the market-clearing equilibrium - brought about through flexible prices and competitive markets - is a "good thing" in the sense that it is also a point of economic efficiency. In other words competitive outcomes are also efficient ones. The fact that competition leads to efficiency is known as the First Fundamental Theorem of Welfare Economics. The efficient outcome will have been brought about through parsimony in the use of information; the only things that individuals, in making their supply/demand decisions, need to know are the prices of the different commodities. Furthermore, since the efficient outcome...
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...of recent corporate failures there have been increased criticisms and calls for regulatory reform of existing accounting and auditing practices. The issue of regulation within the accounting profession has been highly contentious and led to many debates. Those in favour of a free-market stress that market forces will optimise the allocation of resources and as such regulation is not necessary. Whilst those opposing this view believe that markets are imperfect and as such outside intervention in the form of regulation is required. Both sides hold valid arguments as to why regulation is or is not necessary and this paper shall examine these opposing views before providing an informed opinion. The anti-regulation or free-market approach to accounting is one that has been subscribed to for many years. The main thrust of the American Institute of Accountants in 1934 was anti-regulation, they stressed that, “no attempt [should be made] to restrict the rights of corporations to select detailed methods of accounting deemed by them to be best adapted to the requirements of their business” (May 1934, 80). The argument behind this notion is that the natural market forces or the “invisible hand” of the market will ensure self-regulation. Ross (1979, 379) implies this when he writes, “…disclosure regulations are generally neither required nor desirable, since left on their own, firms will have incentives to report accurately”. The belief that firms have internal incentives to report accurately...
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...In a seller’s market, buyers must adopt new tools and strategies to compete effectively on a new playing field. Consolidating supplier markets, rising energy prices and the growing demand for raw materials in emerging markets have fundamentally changed the purchasing framework. Suppliers are more powerful than ever, which means buyers must adjust quickly to a new playing field. A.T. Kearney developed The Purchasing Chessboard—a compilation of insights and experience from thousands of purchasing projects performed worldwide—to help procurement professionals master the tools of their trade. The Purchasing ChessboardTM Buying in a seller’s market Since the 1980s, most procurement professionals have operated in a buyer’s market. Using relatively simple tools—RFIs and RFPs, bundled products and services, and multi-year contracts—companies could negotiate from 1 to 3 percent annual price reductions from suppliers. But this “golden age” of purchasing appears to be over. The ongoing consolidation of the supplier market, rising energy prices and the increasing demand for raw materials from emerging markets means more companies are in a seller’s market. And buyers must adopt new tools and strategies to compete effectively on a new playing field (see sidebar: A New Playing Field on the next page). New Strategies in a Seller’s Market In a seller’s market, old purchasing strategies such as pitting suppliers against one another, or simply requesting...
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... in recent years it is evident that the strategy of these two companies has tilted in favor of the Greenfield investments. There are various factors responsible for both Aldi & Lidl in choosing Greenfield investment as a primary market entry strategy. Some of these factors are as mentioned below: Degree of freedom: Greenfield investment involves setting up business in the manner as perceived by the investors. They are free to choose their own suppliers, channel of distribution and so this freedom allowed the two companies to change required strategy whenever required in order to adapt to different market conditions in different countries. This strategy involves few rules, regulations, licensing issues that allowed the company to cash in on the brand name, which means ability to attract new customers with relatively low costs. Resource & efficiency: Since Germany had already been exploited, the companies¶ seeked for ways of acquiring resources at much lower rates. So by choosing this stategy , , would help them to compete in the markets with major supermarkets and hypermarkets as they could drive down the costs of products that would lead to attracting more cunsumers loyalty . This could enable them to maximize their market share. Other Factors: Political developments: the end of communism 1990¶s allowed for privatization and expanding their business in international fields had become much easier as a result,. Technological aspects: Developments...
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...Developing a Rural Market e-hub The case study of e-Choupal experience of ITC B. Bowonder, Vinay Gupta and Amit Singh Abstract ICT has potential to make significant inroads in a traditional agrarian economy like India. Indian agro-sector has been exploiting the benefits to ICT. Innovative ICT application platforms are being created by private sector players in conjunction with local farmers. One such private initiative has been by ITC Ltd in the state of Madhya Pradesh. It has helped the farmers in many ways, such as developing of local leadership, shared ownership of the assets created in this initiative, access to the latest knowledge for the agro-sector, sustainable income levels and skill development for productivity improvement. This initiative from ITC[1] has become a benchmark today in the ICT initiatives in agro-sector. Several best practices can be learned from this initiative, namely: § ease of replicability and scalability § customization to meet the specific local needs and § organizational commitment. The success of e-choupal has heralded a new era in the Indian agro-sector. The work needs to be carried forward and replicated in the other untapped areas. Creating business channels that can create a win-win situation both business and farming community has enormous economies of scope. Once a channel is created it could be used for many products and services as shown in this case study. The main reasons for the success of the platform have been the involvement of...
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...which individuals and groups obtain what they need and want by creating and exchanging items of value. 2. [pic]A distributive system: Marketing is viewed as a process whereby in a democratic society, operating within a free market or mixed economy, there evolves a system of distribution that facilitates transactions resulting in exchange and consumption. 3. [pic]A functional area of management: Marketing is seen as a functional area of management, usually based in a particular location within the organisation, which uses a collection of techniques, for example, advertising, public relations, sales promotion and packaging to achieve specific objectives. 4. [pic]An overall business philosophy: Many firms see marketing as the keystone of their business. Marketing is viewed not as a separate function, but rather as a profit-orientated approach to business that permeates not just the marketing department but the entire business. The central mission of the organisation is seen as the satisfaction of customer requirements at a profit (or, in not-for-profit sectors, at a maximum level of efficiency or minimum level of cost). This is achieved by focusing the attention of the entire organisation on the importance of the customer and the needs of the market-place. 5. [pic]A targeting or allocation system: Marketing is perceived as the way any organisation or...
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... Competitive Strategies: Energizer vs. Duracell By LaShonda Griffin BUS 508- Contemporary Business Dr. Laura Jones November 5, 2012 Abstract The U.S. offers a free market where businesses are able to have free enterprise to open and operate an ideal to provide a product or service to the public. There are many businesses that offer similar products and create competition. Consumers are able to have the options in the marketplace. Energizer and Duracell are two companies that offer similar products to consumers. Energizer has been around since 1986 and has grown into a mutli- billion dollar company within the last decade. Duracell first got started in the 1920’s from two scientists, and finally become a brand in 1964. This paper will discuss the two companies’ background, the competition between the two, and how they will thrive to compete in the market place in future. Energizer Energizer is formerly known as Eveready Battery Company and changes its name in the late 1980’s. By the 1990, Energizer has established their brand and had over 30 percent of the domestic market. They were trailing Duracell by 10 percent, who at that time had 40 percent of the domestic market. Energizer is the manufacturer of dry cell batteries and flashlights, with a full line production of in three major categories: alkaline, carbon zinc, miniature and rechargeable batteries. They produce more than...
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...Session 6 Article Summary—From Scotch Whisky to Chinese Sneakers: International Commodity Flows and New Trade Networks in Oshikango, Namibia by Gregor Dobler Development of new trade networks feeding consumption have developed, influencing the way Africa integrates into the global economy. Dobler analyses different trade networks that link Oshikango, Nambibia to the world through four case studies on Scotch whisky, Brazilian furniture, Japanese used cars and Chinese sneakers commodities. Through the case studies, he exemplifies how there has been a shift from old colonial domination of trade to new manufacturing countries or trade routes, as well as the essential role of migrant entrepreneurs in these routes. The similarity underlying the different trade networks is that while the people involved in them are of different ethnicity or country of origin, they share the same profit-seeking motive and the opportunities in the international system shape them to become successful examples as facilitators of global trade. Another key concept from the article is that of global integration via consumption. As trade booms in the town of Namibia, it invariably fuels consumption in the town and Africa as a whole. Consumption choices are a means of self-expression in relation to the world and more Africans aspire towards commodities that reflect social standing and a ‘better life’. This thus creates new dependencies on the trade networks to fulfill these desires. Scotch Whisky Trade ...
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... With these strong margins RC can afford to use two level distribution to further create demand without the costly expense of additional store fronts. While RC’s brand recognition is strong within the Victoria area, by utilizing distribution methods other than direct retail, RC can increase brand awareness outside the local geographic area. The main detractor of increased wholesale sales is the degradation in margin due to added channels of distribution. Nevertheless, increased revenue by expanded distribution will offset decreased margins. Additionally, by first “testing the waters” through distribution in other markets, RC can better target direct markets in which to serve. Open New Storefronts in Western Canada Roger’s Chocolates should utilize one of their core-competencies of the “retail experience,” to increase penetration in different markets. While opening new stores can be...
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...50P Tax Hike Analysis Econ201 2/12/14 50P The 50P tax was a brilliant idea at one point or another. However in this current economy and the market failure this, in my opinion, this is not a piece of legislature that will help anything. The tax was made to help bring in revenue and to make the higher income people to pay their fair share. This seems to be a popular idea that the wealthier individuals aren’t paying their fair share of taxes although the wealthy pay the largest amount of taxes. Majority tax The 50P tax is no different; it raises taxes in a tough economic time and that is always a bad idea it doesn’t matter who the tax is on. When you raise taxes you actually decrease revenue and hurt the economy. To strengthen a stalling economy the “Fed” should pull back as much as possible without causing too many ripples. This would let the free market have reign and give a steady boost to the economy. The 50p plan is one that I like to call simple complex simple or a Majority tax. £35,000 should pay tax around 20%. Income up to £150,000 you will pay tax at 40%, and any income you get above £150,000 you will pay tax at 50% which is where the 50p rate comes from. Great Britain had done away with that policy earlier, but it looks like it is back and here to stay. The total needed to handle Great Britain’s national debt is pitiful compared to America’s but they are two different countries and can’t be compared on that basis. Pros There are some good things to the 50P...
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...Global Business Strategy A firm employing a global business strategy operates in several markets around the world, but offers the same product or service with only minor changes in the local market. These businesses are typically very centralized, with the research and development and decision making taking place in the home country. Coca-Cola uses a global business strategy. It offers the same product worldwide and the firm's decision making is centered in the United States. Multidomestic Business Strategy Firms employing a multidomestic business strategy operate worldwide, but in a very different manner than global firms. Multidomestic firms are highly decentralized, with strategies and decisions being made large in the local market. For example, a firm using a multidomestic strategy may develop different products in different markets and it will usually leave the marketing in specific countries up to the local offices. Local offices tend to have a great deal of autonomy and freedom. Sponsored Links Manufacturers From China Inquire for Lower Prices in China Contact Quality Manufacturers Now! www.globalmarket.com Advantages The advantage of a global strategy is that it allows for greater efficiency. Because everything is centralized with a global strategy, there is no duplication of duties. Furthermore, it is possible to produce goods in one location and to export them worldwide. The...
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