Tasks For Businesses Starting Foreign Operation Economics Essay

Organization go international for assortment of ground but most of import end and purpose is company ‘s growing and enlargement. many company look international market for growing by presenting new merchandise internationally will increase company ‘s client base, gross revenues and gross, company gets higher net incomes in less clip, it reduces the dependableness of organisation on traditional markets, company which can implemented in domestic market and larn planetary fight. This is the purposes of concern traveling international to a stable state ( www.imics.com ) . Business get downing foreign operation in different state is one sort of internationalisation. Internationalization is non a new phenomenon. Peoples have been merchandising acroos boundary line since beginning of history and this procedure of internationalisation refers to growing and international dealingss, international trade, country/regional confederations, etc, organisation has to look into the states economic, societal, political, technological, environmental, legal can civilization and many other factors before it starts its foreign operation in that stable state. The state with most stable economic, societal, political and technological factors can be considered as the most stable state. Economic factors like involvement rates, exchange rates, national income, etc, Social factors like ageing population, attitudes of people towards the work, income distribution. Technological factors like rate of technological obsolescence and innovation. , Political factors like agribusiness and nutrient policy, jurisprudence and order issues in the society, defence policy etc. the state with more freedom and which consist all the characteristics mentioned before are called as stable state for illustration: as per the study generated by Oxford Business Group states that despite the economic challenges in 2009-2010 due to the planetary fiscal crises, the grand Turk of Oman remains one of the most economically and politically stable states in the Middle East in term of concern ( www.zawya.com ) . The repot besides said on trade side, sultanate made different moves to increase the nexus with Asia and Oman is besides ask foring international organisation in industry, touristry and instruction sector to derive land and increase the GDP by 2020.india is given the topographic point of most stable state in south east Asia.India has the biggest democracy in the whole universe.Indian economic system is bettering continuously. The GDP is estimated at 2.96 trillion US dollars in 2 007 and the GDP existent growing rate in 2007 was 8.7 % . India has the 3rd highest GDP in footings of buying power para merely in front of Japan and its behind US and China.so the developed state USA, UK and Canada are attracted toward developing and stable state like India and China.and best illustration for this is ; Microsoft is be aftering to increase its work force in India by puting $ 1.7 billion by 2010 and even Cisco is be aftering to hold its 20-30 % of its employees in India by 2012.all this are the mark for India ‘s growing but the root cause of these are foreign operation and the attraction of India ‘s work force. Outsourcing is one of the major illustrations of foreign operation. Out sourcing is am resistless tendency in the twenty-first century.we can state globalisation has improved the outsourcing activities and its been supported by many states. Many companies worldwide have supported and has moved at that place foreign operation in stable states like India, Philippines. Furthermore many large companies like HP, DELL have the offshore units in the stable state for illustration HP has its client service unit in Mumbai with 3rd parties like Sutherland Global Services and NIKE company direct its designs to their other subcontractor in south Korea and China and so the production takes topographic point in south Korea and China. This helps company to bring forth more net income for there their concern activities.this is as per the information provided in WTO Website. Companies make immense net income by seaward unit for illustration: a company named ‘Xchnaging ‘ , its operating net income increased from 47.3 million lbs in 2008 to 63.9 million lb in 2009 ( The Times News, 2010 ) . And this research was done one of the IT selling research company â€Å" XMG GLOBAL † . And it states that company is one of most successful outsourcing company in India which is established.offshore is means outsourcing or opening foreign operation beyond their location or boundaries in other words traveling international. Foreign operation in stable state concentrates on much broad assortment of different merchandises, services and turning states. The factors set uping the concern are immense and if an organisation privation to travel international or want start its foreign in an stable state the certain points has to be kept in head like economic place of that state like Stage of concern rhythm, Current and projected economic growing, rising prices and involvement rates, Unemployment and labour supply of that stable state, cost of labour and skilled labour has good, Levels of disposable income and income distribution, Impact of globalisation, Likely impact of technological or other alteration on the economic system and alterations takes topographic point in economic environment of the stable state. Socio-cultural factors to be kept in head are Population growing rate of the state and age profile, Population wellness, instruction and societal mobility, and attitudes to these on the state, Population employment forms, occupation market freedom and attitudes to work of the employee. And political position which has to maintain i n head are the type authorities and its stableness, freedom of imperativeness, different regulations of the jurisprudence and degrees of bureaucratism if its has democracy and degree or corruptness every bit good, Regulation and de-regulation tendencies, societal and employment statute law of the state, most of import revenue enhancement policy and trade and duty controls, Environmental and consumer-protection statute law and likely alterations in the political environment. If the some same as to be implemented on a stable state can be done. India is one of the stable state in south west Asia and develop states like USA, UK, etc are attracted towards the development and stable state like India and one of the illustration for this can be seen late when David Cameron visited India and he opened a freshly first rural MNC BPO in India.and there are many factors company has to maintain in head before they enter India and some of the factors and been here and I have tried to pest analyses on it and explicate it Political Factors – India is the biggest democracy in the World. The authorities type is federal democracy. Based on English common jurisprudence ; judicial reappraisal of legislative Acts of the Apostless ; accepts compulsory ICJ legal power with reserves ; separate personal jurisprudence codifications apply to Muslims, Christians, and Hindus. The political Situation in the state is more or less stable. For most of its democratic history, the federal Government of India has been led by the Indian National Congress ( INC ) . State political relations have been dominated by several national parties including the INC, the Bharatiya Janata Party ( BJP ) , the Communist Party of India ( CPI ) , and assorted regional parties. In the 2004 Indian elections, the INC won the largest figure of Lok Sabha seats and formed a authorities with a alliance called the United Progressive Alliance ( UPA ) , supported by assorted left-leaning parties and members opposed to the BJP. Overall India p resently has a alliance led authorities and both major political parties the UPA and BJP, whichever comes in power. Economic Factors – The economic factors in India are bettering continuously. The GDP ( Buying Power Parity ) is estimated at 2.965 trillion U.S. dollars in the twelvemonth 2007. The GDP- per Capita ( PPP ) was 2700 U.S. dollars as estimated in 2007. The GDP- existent growing rate in 2007 was 8.7 % . India has the 3rd highest GDP in footings of buying power para merely in front Japan and behind U.S. and China. Foreign direct investing rose in the financial twelvemonth ended March 31 2007 to about $ 16 billion from merely $ 5.5 billion a twelvemonth before. There is a uninterrupted growing in per capita income ; India ‘s per capita income is expected to make 1000 dollars by the terminal of 2007-08 from 797 dollars in 2006-07. This will take to higher purchasing power in the Hands of the Indian consumers.A Social – India is the 2nd most thickly settled state in the universe with an approximative population of over 1.1billion people. This population is divided in the undermentioned age construction: 0-14 old ages – 31.8 % , 15-64 old ages – 63.1 % and 65 old ages and above – 5.1 % . There has besides been a uninterrupted addition in the ingestion of beer in India. With an addition in the buying power the Indian consumer which preferred local hard spirits which is far cheaper is now able to acquire a gustatory sensation of the comparatively expensive beer market. The societal tendency toward beer ingestion is altering and India has seen an addition of 90 % beer ingestion from the twelvemonth 2002- 2007. This addition is far greater than the addition in the BRIC states of Brazil ( 20 per cent ) , Russia ( 50 per cent ) and China ( about 60 per cent ) . Thus this shows a positive tendency for beer industries in India.Technology – The Indian beer Industry is heating up with a batch of foreign participants come ining the Indian market. The technological knowhow and expertness will besides come in the Indian market with an addition in competition. For illustration beer brewing engineering major Ziemann has entered India and has set up fabrication works in India. Ziemann Group, based in Ludwigsburg near Stuttgart in Germany, has founded Ziemann India. It will get down production in 2008. This will assist convey in technological knowhow and increase the production of beer. SABMiller has merely placed an order for the design and building of two prison guard workss in India to Ziemann. The new workss are planned for Sonipat in Haryana and for another location near Bangalore. Both breweries will hold an one-year capacity of 1 milllion hectolitres each in the beginning and might be extended subsequently. Thus with European engineering come ining the Indian beer market increased production and take downing cost of production could play a major function in the Indian beer market. The OLI Model are the different theories like Ownership: The Indian market provides good ownership chances for Inbev India Internat ional private limited. The Government policies on FDI are loosen uping and companies like Carlsberg has besides invested in breweries in India. Besides cost of fabrication and brewing beer in India is much cheaper. The cost of natural stuff and labour in India is inexpensive therefore giving Inbev India a good opportunity of cut downing cost of production. The fact that European companies are puting up workss in India to fabricate brewing engineering means that in the hereafter Inbev could hold ownership of these engineerings at a much cheaper rate as compared to when bought in other markets. Location: There are a batch of location specific advantages for Inbev India International Private Limited. The Indian beer Industry is all set to heat up with the Indian market ‘s compound one-year growing rate ( CAGR ) of 6.7 % from 2002 to 2006. The beer market volume is set to lift to 1155 million litres by 2011 an addition of 37.4 % from 2006. North India is basking beer like ne'er earlier. During the first one-fourth of 2006, about 5 million instances of beer were sold in Punjab and Haryana as against 600,000 instances in Q1 of 2005-06. This was the instance because the authorities has revised its policy in these provinces and there is an betterment in the distribution channels in these countries. India is besides expected to go the 2nd largest beer market in Asia by 2020 merely after China. Thus all these factors along with India holding adjacent states like Nepal and Sri Lanka, where beer could be exported through India gives Inbev India a good Location advantage.A Inter nalization: Inbev India International Private Limited would desire to hold internalisation because over a period of clip it would lose out on a competitory border in the part if it merely sticks to exporting and non FDI investing. As other houses would come in and develop their substructure and distribution channel, therefore able to bring forth at with low costs. India besides is a immense potency market as mentioned earlier and Inbev would non desire to lose out on the chance it can supply. Besides since there is a batch of ruddy tapism and contractual jobs while exporting etc. It would be better to be in India instead than export. ( hypertext transfer protocol: //www.mysensex.com ) The political construction of European brotherhood have different grouping s like European Union ( EU ) , NAFTA and ASEAN and this groupings are going extremely influential in international trade. In this instance the EU integrating represents non merely economic integrating spot besides political integrating. The chief EU political establishments can be summarized as follows council of curates is the highest law- doing authorization in the EU with executive authorization and ministerial representation from each member province. European committee is the chief legislative map. Headed by a president with appointed commissioners from the member provinces. European parliament is the chief representative organic structure but with limited law-making map and rank of each province is in proportion to the province ‘s population. Otther European tribunal of justness is composed of one justice per member province and its map is to guarantee that EU statute law is interpreted and applied in the some manner in each member province. This tribunal is the 1 of the ultimate and of import authorization in EU jurisprudence and there are many other establishments including tribunal of hearers, European ombudsmen and European information protection organic structure. The political hazard and its impact on international concern has been critical in modern concern. Political clime across the Earth makes difference in concern, the issues of democracy passage economic systems and regionalization? Basically it is to make with today ‘s political hazard to a concern. All organisation wants to run its foreign operation and bring forth in abroad market has to see the hazard of the host state. There is may states put on the line like political, economic, competitory and operational hazard job which can disrupt company ‘s internal and external events, the job created by political actions of authorities or political development of the part. Political instability is a serious job in states where political power is shared there are tensenesss within society and greater political stableness.the state which has political stableness it attracts the foreign investors and it increases foreign investing. And if there Is no political stableness it can tak e to serious effects for international concern. The political instability can originate due to factors like divisions in the society. Which are cultural differences and societal unfairness, menaces from terrorist act it can be internal and external every bit good for illustration D company in India and Al Qaeda universe broad, armed groups- such as subdivisions of the military, strong regional units -like Tamil Liberation Tigers of Tamil Eelams in Sri Lanka, Kashmir separationist in India, military authorities and factionalised political leading and this factors can do a immense impact on concern they can put on the line to stockholder valve which is sort of loss of capital and straight inability to repatriate dividends. This sort of can be raised during wars.and hence understanding political environment of the international market is truly of import for any organisation.they may be many states may look politically stable and good but they may be may political cultural issues in tha t states like corruptness so this has to considered before come ining the foreign land. The authorities policy and factors are influential on international concern and its activity and in peculiarly on the determinations of the international company that the company should run in the state or non. And the policy determinations which makes difference in concern and which company has to maintain in head while come ining are financial and pecuniary policy for eg: revenue enhancement like what is the revenue enhancement regulations in the state. what per centum of revenue enhancement the company has to pay, environmental policy like what are the regulations to be approve before company starts its industrial work, regional development policy which has to be followed eg- Pepsi promised Indian authorities that it traveling to develop the rural country in 1983, public assistance province policy for eg ; wellness, societal security, pensions, instruction eg: all the organisation in India has to make some educational development, agribusiness and nutrient policy, defence policy w hich critical and no state would compromise in it, in-migration policies, jurisprudence and order issues in society, wellness and safety issues and regulations in that authorities and its one of the major issue, employment policies like minimal rewards and age standards for illustration: Pepsi when launched in India in 1983 it promised Indian authorities that it will supply employment to Indian people and through this sort of proposal it made it easier for company to come in the Indian market. This shows us that political environment makes difference in international concern. We have noted that much of international concern today is on the states of the passage democracies and emerging universe. These states have tremendous chances for growing, but at the same clip they are confronting figure of political challenges. Political stableness or instability make a immense impact on international concern or foreign operation.

The Scope and Challenge of International Marketing

Chapter 01 The Scope and Challenge of International Marketing True / False Questions 1. (p. 3) Global commerce thrives during peacetime. TRUE Difficulty: Easy Type: Knowledge 2. (p. 4) To date, the lesson for international commerce in the 21st century is â€Å"expect the unexpected. † TRUE Difficulty: Easy Type: Knowledge 3. (p. 5) Today, every American business is international. TRUE Difficulty: Moderate Type: Comprehension 4. (p. 5) One event that will influence the shape of international business as the future unfolds is the rapid growth of the World Trade Organization, NAFTA, and the European Union.TRUE Difficulty: Moderate Type: Comprehension 5. (p. 5) One event that will influence the shape of international business as the future unfolds is the unprecedented acceptance of communism and socialism in Latin America. FALSE Difficulty: Moderate Type: Comprehension 6. (p. 5) A trend that will impact international business in the future is a mandate to properly manage the resou rces and global environment. TRUE Difficulty: Moderate Type: Comprehension 7. (p. 5) Today, most business activities are local or regional in scope. FALSE Difficulty: Moderate Type: Knowledge . (p. 6, Crossing Borders 1. 1) What do French farmers, Chinese fishermen, and Russian hackers have in common–they can all receive subsidy payments from the U. S. government. FALSE Difficulty: Moderate Type: Knowledge 9. (p. 6) Foreign-made products remain a small portion of all consumer products sold in the United States. FALSE Difficulty: Easy Type: Knowledge 10. (p. 8) U. S. companies compete with global competitors in foreign markets and have little competition in domestic markets from global competitors. FALSE Difficulty: Easy Type: Knowledge 11. (p. , Exhibit 1. 2) The leading U. S. multinational with foreign revenues of $345 billion plus annually is Wal-Mart. TRUE Difficulty: Hard Type: Knowledge 12. (p. 9) International marketing is the performance of business activities designed to plan, price, promote, and direct the flow of a company's goods and services to consumers or users in more than one nation for a profit. TRUE Difficulty: Moderate Type: Knowledge 13. (p. 9-10) A good illustration of an uncontrollable variable that might impact international business is a marketing decision with respect to research.FALSE Difficulty: Hard Type: Application 14. (p. 11, Exhibit 1. 3) The foreign uncontrollable environment is the same as the domestic uncontrollable environment. FALSE Difficulty: Hard Type: Comprehension 15. (p. 12) The level of technology is an uncontrollable element for international marketers. TRUE Difficulty: Moderate Type: Knowledge 16. (p. 14) The political and legal environment is a controllable element for international marketers because of the ability to lobby and influence legislation. FALSE Difficulty: Moderate Type: Knowledge 7. (p. 14) In a broad sense, the uncontrollable elements of the foreign business environment constitute the culture. TRUE Difficulty: Hard Type: Comprehension 18. (p. 15) John refuses to buy Japanese products because he sees them as a way of selling out to nation known for its aggressive behavior. John is using a self-reference criterion to make his decision. TRUE Difficulty: Moderate Type: Application 19. (p. 15) A self-reference criterion is closely related to ethnocentrism. TRUE Difficulty: Moderate Type: Comprehension 20. (p. 5) Sam Watkins just recently ate and, therefore, feels justified in refusing food from his Middle Eastern host. In this instance, Sam's self-reference criterion has just saved him from making a cultural blunder. FALSE Difficulty: Hard Type: Application 21. (p. 16) To avoid errors in business decisions, it is necessary to conduct a cross-cultural analysis that emphasizes the need for ethnocentrism. FALSE Difficulty: Moderate Type: Comprehension 22. (p. 17) To be globally aware, you should be tolerant of cultural differences. TRUE Difficulty: Easy Type: Comprehension 23. ( p. 7) To be globally aware, you should require that all of your international customers know about your cultural rules and adhere strictly to each one. FALSE Difficulty: Moderate Type: Comprehension 24. (p. 18) If a company is in a stage designated as being one with â€Å"no direct foreign marketing,† the company does not actively cultivate customers outside national boundaries. TRUE Difficulty: Easy Type: Knowledge 25. (p. 20) Of all the stages in international business, a stage called â€Å"regular foreign marketing† produces the most profound change in the orientation of the company toward markets and associated planning activities.FALSE Difficulty: Moderate Type: Knowledge 26. (p. 22) If a company uses a strategic orientation called domestic market extension, it views its international operations as secondary to and an extension of its domestic operations. TRUE Difficulty: Moderate Type: Knowledge 27. (p. 22-23) The global marketing concept views the marketplace as consisting of one primary domestic market that is complimented by several smaller regional markets. FALSE Difficulty: Hard Type: Knowledge Multiple Choice Questions 28. (p. 3) International __________ play an important role in promoting global peace and prosperity.A. foreign aid and treaties B. competition and consumer spending C. trade and marketing D. consumer and industrial services Difficulty: Easy Type: Knowledge 29. (p. 4) According to the text, all of the following events have impacted international business EXCEPT: A. the Indian Ocean tsunami in 2004 B. the high-tech bust of 2001. C. the steroids in major league sports scandal D. 2003 SARS outbreak in Asia. E. September 11, 2001 disasters. Difficulty: Easy Type: Comprehension 30. (p. 5) Of all the events and trends affecting global business today, four stand out as the most dynamic.Which of the following would be one of those events? A. The trend toward buying American cars in Europe. B. The trend toward the acceptance of t he free market system among developing countries in Latin America, Asia, and Eastern Europe. C. The trend toward using English as the global language. D. The trend toward establishing a world currency. E. The trend toward worldwide instant communication. Difficulty: Moderate Type: Comprehension 31. (p. 5) All of the following events and trends are among the four major trends described in the chapter as having a major impact or effect on global business EXCEPT: A. he trend toward the acceptance of the free market system among developing countries in Latin America, Asia, and Eastern Europe. B. the rapid growth of the World Trade Organization and regional free trade areas such as NAFTA and the European Union. C. the burgeoning impact of the Internet and other global media on the dissolution of national borders. D. the trend toward decreasing OPEC profits as oil reserves decline in the 21st century. E. the mandate to properly manage the resources and global environment for the generatio ns to come.Difficulty: Hard Type: Comprehension 32. (p. 5-6) Strategic plans that are competitive in global markets are _____. A. the challenge of international marketing B. expanded domestic marketing plans C. not necessary for small firms D. multilingual and multicultural in scope Difficulty: Easy Type: Knowledge 33. (p. 5) Every American company is international, at least to the extent that: A. Federal law requires all corporations to outsource whenever it is cost-effective. B. the Internet generates orders for all American businesses from abroad. C. ts business performance is affected by events that occur abroad. D. natural disasters create a greater global community. E. all of the above. Difficulty: Hard Type: Knowledge 34. (p. 5) Simi Khan wants to move his business into the international arena as quickly as possible; however, to be successful he must consider a variety of factors that have global dimensions. Which of the following factors would be most important to Simi Khan' s computer technology business as he moves forward with his global expansion plans? A. Electricity usage around the world. B.The drive toward a more ergonomic workplace. C. Communication and technology networks in third-world countries. D. Restrictions on advertising in Russia. E. Increasing licensing fees in Spain and Portugal. Difficulty: Moderate Type: Application 35. (p. 7) Foreign investment in the United States is growing yearly. At present, foreign investment in the United States is in excess of $16. 3 ______________. A. trillion B. million C. billion D. thousand E. cannot be determined. The government does not track foreign investment. Difficulty: Moderate Type: Knowledge 36. (p. ) Companies from ____________________ lead in foreign investment in the United States: A. Kingdom of Saudi Arabia B. Russia C. China D. United Kingdom E. Canada Difficulty: Hard Type: Knowledge 37. (p. 7) Foreign investment is a two-way street. An organization (through investment and acquisition) fr om which of the following countries now controls all United Kingdom rail freight business and runs the queen's private train via its English, Welsh, & Scottish Railway unit? A. Germany B. Switzerland C. United States D. Canada E. Netherlands Difficulty: Hard Type: Knowledge 38. (p. 9, Exhibit 1. ) Many U. S. firms do exceedingly well in the global arena. Which of the following organizations is considered to be the U. S. leader with global revenues approximated at $345 billion annually? A. IBM B. ExxonMobil C. Ford Motor D. Wal-Mart E. Hewlett-Packard Difficulty: Moderate Type: Knowledge 39. (p. 9) For firms venturing into international marketing for the first time, the first requirement is: A. employment of foreign nationals in target foreign markets. B. a thorough and complete commitment to foreign markets. C. obtain market data from consulate of the country being targeted.D. an assessment of the cost of doing business in the foreign market. E. performance reviews of all potential salespeople being considered for foreign assignment. Difficulty: Moderate Type: Knowledge 40. (p. 9) ___________ is the performance of business activities designed to plan, price, promote, and direct the flow of a company's goods and services to consumers or users in more than one nation for a profit. A. Global management B. Global business C. Marketing D. International marketing E. Global marketing concept Difficulty: Moderate Type: Knowledge 41. (p. ) The performance of business activities designed to plan, price, promote, and direct the flow of a company's goods and services to consumers or users in more than one nation for a profit is called: A. global management. B. global business. C. marketing. D. the global marketing concept. E. international marketing. Difficulty: Moderate Type: Knowledge 42. (p. 9) The only difference between the definitions of domestic marketing and international marketing is that marketing activities: A. focus on consumers in domestic markets and bartere rs in foreign markets. B. take place in more than one country.C. follow traditional communication paths in domestic markets. D. focus on distribution in the domestic market. E. are usually non-regulated in foreign markets. Difficulty: Moderate Type: Comprehension 43. (p. 9) According to the text, the primary difference in the practice of marketing at the domestic versus the international level is: A. the environment within which the marketing plans must be implemented. B. the revenues necessary to be successful. C. the demand charts available to the marketer. D. the control over the budget. E. the accountability of board of directors. Difficulty: HardType: Comprehension 44. (p. 9) With respect to the environment in which a business operates, such factors as competition, legal restrains, government controls, and the weather would all be examples of what are called: A. controllable elements. B. uncontrollable elements. C. predictable elements. D. demographic elements. E. cultural elem ents. Difficulty: Easy Type: Knowledge 45. (p. 9-10) All of the following would be considered to be controllable elements of marketing decisions EXCEPT: A. product. B. price. C. promotion. D. research. E. government regulations. Difficulty: Easy Type: Knowledge 46. (p. 1, Exhibit 1. 3) Considering the model of the international marketing task displayed in the text, which of the following reasons demonstrates the most important difference between the international marketer's task and that of the domestic marketer? A. The international marketer must deal with at least two levels of uncontrollable uncertainty instead of one. B. The international marketer must rely on at least two levels of controllable certainty instead of one. C. The international marketer is never certain about supply or demand. D. The international marketer is never certain about total market size.E. The international marketer must be aware of international monetary exchange rates. Difficulty: Moderate Type: Compreh ension 47. (p. 11, Exhibit 1. 3) Robert Jonas is in charge of a new marketing effort directed toward Peru. In order for his company to effectively market and distribute to all of Peru's major cities, Mr. Jonas must devise a logistics plan for crossing the Andes Mountains on a daily basis. Which of the following foreign environment uncontrollable variables would be a chief concern as Mr. Jonas devises his plan? A. Competitive forces B. Cultural forces C.Geography and infrastructure D. Economic forces E. Political/legal forces Difficulty: Moderate Type: Application 48. (p. 11, Exhibit 1. 3) Compared to the foreign environment uncontrollable variables, which of the following elements is excluded from the domestic marketer's list of uncontrollable variables? A. Political forces B. Competitive structure C. Economic climate D. Cultural forces E. Legal forces. Difficulty: Hard Type: Comprehension 49. (p. 11, Exhibit 1. 3) All of the following would be among the domestic marketer's controll able environmental variables EXCEPT: A. esearch. B. price. C. product. D. channels of distribution. E. economic climate. Difficulty: Moderate Type: Comprehension 50. (p. 11, Exhibit 1. 3) All of the following appear as a foreign environment uncontrollable variable in the model of the international marketing task shown in the text EXCEPT: A. economic forces. B. competitive forces. C. product demand forces. D. cultural forces. E. political/legal forces. Difficulty: Easy Type: Knowledge 51. (p. 10) Amy Sims has been assigned the task of preparing a marketing plan for company for the next year's business activities.She knows that she should begin her plan by examining the variables that she has some control over. These controllable variables would include price, product, channels-of-distribution, and: A. demand. B. supply. C. competition. D. economic climate. E. promotion. Difficulty: Easy Type: Knowledge 52. (p. 10) A political decision involving _______________ would most likely have a direct effect on a firm's international marketing success. A. domestic foreign policy B. immigration reform C. oil exploration policy D. FCC satellite regulations E. FAA airline regulations Difficulty: ModerateType: Knowledge 53. (p. 11) Which of the following would be a chief way that U. S. companies attempt to influence domestic foreign policy? A. A company could lobby with respect to its own interests. B. A company could attempt to bribe elected officials to influence policy decisions. C. A company could ask a foreign government to bring pressure on U. S. legislative bodies. D. A company could threaten to withdraw operations from foreign markets. E. A company could threaten to move its corporate headquarters to a foreign market. Difficulty: Hard Type: Comprehension 54. (p. 2) Competition within the home country can have a profound effect on the international marketer's task. Which of the following BEST illustrates this statement? A. Boeing recently opened talks with its primary trade union to avoid a forecasted strike. B. Microsoft and Dell have jointly invested $700 million in a new venture to investigate high technology of the future. C. Fuji opened a $300 million plant in the U. S. and now commands a 12 percent share of the lucrative U. S. film market. D. Several name companies are still under investigation because of the Enron scandal.E. Declaration of independence by Baltic States after the collapse of the Soviet Union. Difficulty: Moderate Type: Application 55. (p. 12) With respect to challenges faced by the international marketer, a significant source of uncertainty is the number of factors in the: A. foreign environment controllables. B. foreign environment uncontrollables. C. domestic environment controllables. D. parallel environment uncontrollables. E. parallel environment controllables. Difficulty: Easy Type: Comprehension 56. (p. 12) Ralph Waite has just been assigned the task of reviewing his ompany's international investment opportunities. He knows that his view of the list of opportunities should be tempered by foreign environment uncontrollables that might be encountered. Which of the following would be the BEST illustration of a foreign environmental uncontrollable that Mr. Waite should investigate? A. A country's level of technology. B. Pricing policies in the foreign country. C. The ability to do research in the foreign country. D. Manufacturing capabilities in the foreign country. E. The ability to do advertising in the foreign country. Difficulty: Hard Type: Application 57. (p. 2) The _____________ is an uncontrollable element that can often be misread because of the vast differences that may exist between developed and undeveloped countries. A. Structure of distribution B. competitive forces C. economic forces D. political/legal forces E. level of technology Difficulty: Hard Type: Knowledge 58. (p. 13) The _____________ and issues abroad are often amplified by the â€Å"alien status† of the company, whi ch increases the difficulty of properly assessing and forecasting the dynamic international business climate. A. structure of distribution B. competitive forces C. economic forces D. olitical/legal forces E. level of technology Difficulty: Moderate Type: Knowledge 59. (p. 13) Which of the following would be the BEST illustration of the â€Å"alien status† found in the political and legal arena that sometimes cause problems for international marketers as they attempt to do business in foreign countries? A. A company in the U. K. recently purchased Ben & Jerry's ice cream operations. B. The Indian government told Coca-Cola that it must reveal its â€Å"secret formula† if it wished to continue do business in India. C. Richard Branson's Virgin Cola was not widely accepted in the United States. D.French Canadians prefer French to English when conducting business in Canada. E. British Airlines and Japan Airlines join American Airlines to form OneWorld Alliance. Difficulty: M oderate Type: Application 60. (p. 14) Global businesses must be willing to adjust and adapt a marketing program to a foreign market. In a broad sense, the environmental uncontrollable elements constitute the: A. problem. B. opportunity. C. culture. D. marketplace. E. commerce landscape. Difficulty: Hard Type: Comprehension 61. (p. 14) The task of ____________ is the most challenging and important one confronting international marketers.A. care for the environment B. dealing with politics C. international standardization D. cultural adjustment E. international branding Difficulty: Moderate Type: Comprehension 62. (p. 14) Which of the following would be the BEST example to illustrate the fact that international marketers need to make cultural adjustments as they seek to do business abroad? A. In America, white is an accepted color for wedding gowns; in Asia it is the color of mourning. B. Many teens earn extra income by working. C. Women out number men in the United States. D. Most Mi ddle Eastern women do not work outside the home. E.Many European nations require a period of national service for youth. Difficulty: Hard Type: Application 63. (p. 15) ____________ is the conscious effort on the part of the international marketer to anticipate the influences of both the foreign and domestic uncontrollable factors on a marketing mix and then adjust the marketing mix to minimize the effects. A. Standardization B. Adaptation C. Segregation D. Segmentation E. Projection Difficulty: Moderate Type: Knowledge 64. (p. 15) The primary obstacles to success in international marketing are a person's _________ and an associated ethnocentrism. A. egionalism B. holism C. self-reference criterion D. segregation E. integration Difficulty: Easy Type: Comprehension 65. (p. 15) _____________ is an unconscious reference to one's own cultural values, experiences, and knowledge as a basis for decisions. A. Regionalism B. Holism C. Self-reference criterion D. Segregation E. Xenophobia Diff iculty: Moderate Type: Knowledge 66. (p. 15) In the United States, unrelated individuals keep a certain physical distance between themselves and others when talking or in groups. We do not consciously think about that distance; we just know what feels right without thinking.Someone from another culture would not necessarily understand this and would apply their own rules for contact when speaking. The preceding is an illustration of what is called applying a ___________ when reviewing the mentioned social custom of contact. A. self-space B. segregation C. integration D. space command theory E. self-reference criterion (SRC) Difficulty: Moderate Type: Application 67. (p. 15) Your ____________ can prevent you from being aware that there are cultural differences or from recognizing the importance of those differences. A. self-space B. personality C. demographic character D. elf-reference criterion (SRC) E. concept of integration Difficulty: Easy Type: Comprehension 68. (p. 16) The most effective way to control the influence of ethnocentrism and __________ is to recognize their effects on our behavior. A. the self-reference criterion (SRC) B. regionalism C. tunnel vision D. standardization E. xenophobia Difficulty: Moderate Type: Knowledge 69. (p. 17) To avoid errors in business decisions, it is necessary to conduct a cross-cultural analysis that isolates the self-reference criterion influences. Which of the following would be the BEST first-step to take to avoid the aforementioned errors?A. Redefine the problem without the SRC influence. B. Solve the problem for the optimum business goal situation. C. Isolate the SRC influence in the problem and examine it carefully to see how it complicates the problem. D. Define the business problem or goal in home-country cultural traits, habits, or norms. E. Define the business problem or goal in foreign-country cultural traits, habits, or norms through consultation with natives of the target country. Difficulty: Hard Type: A pplication 70. (p. 17) Which of the following steps in a cross-cultural analysis to solate self-reference criterion influences would finalize the process and lead to a solution of the problem? A. Redefine the problem without the SRC influence and solve the problem for the optimal business goal situation. B. Isolate the SRC influence in the problem and examine it carefully to see how it complicates the problem. C. Define the business problem or goal in home-country cultural traits, habits, or norms. D. Define the business problem or goal in foreign-country cultural traits, habits, or norms through consultation with natives of the target country. E.The last step is not indicated in the list of alternatives. Difficulty: Easy Type: Application 71. (p. 17) To be globally aware, an international marketer must have all the following EXCEPT: A. a tolerance of cultural differences. B. a knowledge of cultures. C. a knowledge of history. D. a knowledge of microeconomics. E. a knowledge of worl d market potential. Difficulty: Easy Type: Knowledge 72. (p. 17) Successful businesspeople in the twenty-first century have ___________ and a frame of reference that goes beyond a region or even a country and encompasses the world. A. a sense of fashion B. lobal awareness C. an intimate knowledge of ecological problems D. a consumer mind-set E. a pronounced skill in promotion Difficulty: Moderate Type: Knowledge 73. (p. 18) There are a variety of stages in the process of becoming involved in international marketing. Which of the following best describes the stage of development where the company's products reach a foreign market through no conscious effort on the part of the marketer? A. Infrequent foreign marketing B. Regular foreign marketing C. No direct foreign marketing D. International marketing E. Global marketing Difficulty: Easy Type: Comprehension 4. (p. 18) If a marketer is motivated to enter into an international marketing effort because of temporary surpluses in the dom estic market, which of the following stages BEST characterizes the stage of international marketing involvement for this marketer? A. Infrequent foreign marketing B. Regular foreign marketing C. No direct foreign marketing D. International marketing E. Global marketing Difficulty: Moderate Type: Comprehension 75. (p. 19) James Bright's company seek markets all over the world and attempts to sell products that are a result of planned production for markets in various countries.Which of the following stages BEST characterizes the stage of international marketing involvement for Mr. Bright's company? A. Infrequent foreign marketing B. Regular foreign marketing C. No direct foreign marketing D. International marketing E. Global marketing Difficulty: Hard Type: Application 76. (p. 20) Maria Peron's company treats the world, including the home market in Spain, as one market. Market segmentation decisions no longer focus on national borders. Instead, market segments are defined by income l evels, usage patterns, and other factors that span countries and regions.Which of the following stages BEST characterizes the stage of international marketing involvement for Ms. Peron's company? A. Infrequent foreign marketing B. Regular foreign marketing C. No direct foreign marketing D. International marketing E. Global marketing Difficulty: Moderate Type: Application 77. (p. 22) If a company basically sees the process of international marketing as one where the domestic company seeks a sales extension of its domestic products into foreign markets, the company is using which of the following concepts to formulate its international policies and strategies?A. Domestic market extension concept B. Multidomestic market concept C. Global marketing concept D. Universal marketing concept E. Standardized marketing concept Difficulty: Easy Type: Comprehension 78. (p. 22) The Ajax Corporation has decided to enter the international marketing arena by marketing its products on a country-by-co untry basis, with separate marketing strategies for each country. The company is using which of the following concepts to formulate its international policies and strategies? A. Domestic market extension concept B. Multidomestic market conceptC. Global marketing concept D. Universal marketing concept E. Standardized marketing concept Difficulty: Moderate Type: Comprehension 79. (p. 22-23) A company using the ________________ views an entire set of country markets as a unit, identifying groups of prospective buyers with similar needs as an opportunity market segment and develops a marketing plan that strives for standardization wherever it is cost and culturally effective. A. domestic market extension concept B. multidomestic market concept C. global marketing concept D. universal marketing concept E. tandardized marketing concept Difficulty: Hard Type: Comprehension Fill in the Blank Questions 80. (p. 3) _____________ commerce thrives during peacetime. Global (or international) Diff iculty: Easy Type: Knowledge 81. (p. 7) ___________ (country) leads in foreign investment in the United States. The United Kingdom Difficulty: Hard Type: Knowledge 82. (p. 9, Exhibit 1. 2) Among the top ten players in the global game of commerce, __________ (company) leads the pack with $345 billion in revenues coming from global markets. Wal-Mart Difficulty: Hard Type: Knowledge 83. (p. ) ___________ marketing is the performance of business activities designed to plan, price, promote, and direct the flow of a company's goods and services to consumers or users in more than one nation for a profit. International Difficulty: Easy Type: Knowledge 84. (p. 11, Exhibit 1. 3) Domestic marketing elements as price, product, promotion, channels of distribution, and research are called ____________ elements. controllable Difficulty: Moderate Type: Comprehension 85. (p. 15) A person's self-reference criterion is often associated with an associated term called ________. ethnocentrism Difficulty: ModerateType: Knowledge 86. (p. 15) A person's ________________ is an unconscious reference to one's own cultural values, experiences, and knowledge as a basis for decisions. self-reference criterion (SRC) Difficulty: Moderate Type: Knowledge 87. (p. 17) The successful businessperson in the twenty-first century has global _____________ and a frame of reference that goes beyond a region or even a country and encompasses the world. awareness Difficulty: Moderate Type: Comprehension 88. (p. 20) At the __________ marketing level, companies treat the world, including their home market, as one market. globalDifficulty: Hard Type: Knowledge 89. (p. 23) The global _____________ views an entire set of country markets as a unit, identifying groups of prospective buyers with similar needs as a global market segment. marketing concept Difficulty: Moderate Type: Knowledge Essay Questions 90. (p. 3) Global commerce thrives in peacetime. Explain why this statement is true. Economic booms often oc cur as the world finds itself at peace. Resources go toward research and technology rather than â€Å"war machines. † Peace brings renewed efforts to negotiate and trade. Barriers generally come down between nations.Nations enter into partnerships and alliances that foster trade. Individual companies are willing to take greater investment risks when peacetime is blooming. Difficulty: Easy Type: Comprehension 91. (p. 4) Provide examples of events and issues that contribute to uncertainty in the international marketing environment. Answers will vary but may include any of the issues discussed on page 4 including, terrorism, growth of the U. S. balance of payments deficit, conflicts between the U. S. and China, predictions of collapse in U. S. consumer spending and housing markets. Difficulty: Moderate Type: Comprehension 92. (p. ) List and briefly describe the four events or trends described in the text that have shaped international business beyond today's bumpy roads and into the future. The events or trends are: (1) the rapid growth of the World Trade Organization and regional free trade areas such as NAFTA and the EU; (2) the trend toward the acceptance of the free market system among developing countries in Latin America, Asia, and Eastern Europe; (3) the burgeoning impact of the Internet and other global media on the dissolution of national borders; and, (4) the mandate to properly manage the resources and global environment for the generations to come.Difficulty: Hard Type: Comprehension 93. (p. 6) Joan Wilson owns a small software company, SecureSoft, that specializes in home network security. The company has been in business for 5 years and its sales have grown rapidly. Last year the company began offering international versions (multilanguage) of its software. SecureSoft sells its products through a network of software distributors. However, recently Ms. Wilson has become concerned that Russian software hackers have produced pirated copies of th e company's leading software. Explain how the Russian hackers disrupt SecureSoft's international marketing efforts.SecureSoft international marketing efforts will now have to take into account the lost of sales/profits due to the pirated software. Virtually all components of marketing will likely be impacted. Marketing will have to consider product modifications to preclude prirating efforts, a change in distribution to direct sales, and other software protection schemes. In addition, special advertisement and promotion may be required to promote the security-enhanced products. These efforts to protect is software against piracy come at a cost which means that software retail prices will increase. Difficulty: ModerateType: Application 94. (p. 9) Define international marketing. International marketing is the performance of business activities designed to plan, price, promote, and direct the flow of a company's goods and services to consumers or users in more than one nation for a pro fit. Difficulty: Moderate Type: Knowledge 95. (p. 10-12, Exhibit 1. 3) List and briefly discuss the domestic environment uncontrollable elements found in the model that describes the international marketing task. The domestic environmental uncontrollable elements include political/legal forces, competitive structure, and the economic climate.For a brief discussion of each element see pages10-12. Difficulty: Moderate Type: Comprehension 96. (p. 11, Exhibit 1. 3) List and briefly comment on the elements found in a company's domestic controllable environment. The elements include price, product, promotion, channels of distribution, and research. For more information see page 10. Difficulty: Easy Type: Comprehension 97. (p. 10-14, Exhibit 1. 3) Explain the differences between the domestic environment uncontrollable elements and the foreign environment uncontrollable elements. According to information presented in the text and in Exhibit 1. , the domestic environmental uncontrollable ele ments include the political/legal forces, competitive structure, and the economic climate. The foreign environment is more inclusive with the following elements political/legal forces, economic forces, competitive forces, level of technology, structure of distribution, geography and infrastructure, and cultural forces. For additional information on differences see pages 10-14. Difficulty: Hard Type: Comprehension 98. (p. 14-15) To be an effective international marketer, why is it necessary to master cultural adjustment? Explain.The marketers must adjust their marketing efforts to cultures to which they are not attuned. In dealing with unfamiliar markets, marketers must be aware of frames of reference they are using in making their decisions or evaluating the potential of a market. As an illustration, the story goes that two shoe salesmen report back to their companies after making a survey trip to an impoverished portion of Africa. One salesman says, â€Å"There is no market for sh oes–no one has any money–poverty is everywhere. † The other shoe salesman (representing world famous Bata Shoe Company) says, â€Å"Great news everybody needs shoes. Bata leads the world in selling shoes to third-world countries. Difficulty: Moderate Type: Comprehension 99. (p. 15) Explain the concept of the self-reference criterion (SRC). SRC is an unconscious reference to one's own cultural values, experiences, and knowledge as a basis for decisions. The concept is closely associated with ethnocentrism. Difficulty: Moderate Type: Knowledge 100. (p. 16) To avoid errors in business decisions, it is necessary to conduct a cross-cultural analysis that isolates the self-reference criterion influences.List the four steps that make up the framework for such an analysis. The steps are: (1) define the business problem or goal in home-country cultural traits, habits, or norms; (2) define business problem or goal in foreign-country cultural traits, habits, or norms throu gh consultation with natives of the target country–make no value judgments; (3) isolate the SRC influence in the problem and examine it carefully to see how it complicates the problem; and, (4) redefine the problem without the SRC influence and solve for the optimum business goal situation.Difficulty: Hard Type: Comprehension 101. (p. 17) In order for a company to be globally aware, the company must do what two things (according to the text)? The company must (1) have a tolerance for cultural differences and (2) have knowledge of cultures, history, world market potential, and global economic, social, and political trends. Difficulty: Moderate Type: Comprehension 102. (p. 23) With respect to a strategic orientation to conducting international marketing, describe the global marketing concept.The global marketing concept views an entire set of country markets (whether the home market and only 1 other country, or the home market and 100 other countries) as a unit, identifying gro ups of prospective buyers with similar needs as a global market segment and developing a marketing plan that strives for standardization wherever it is cost and culturally effective. Difficulty: Moderate Type: Comprehension 103. (p. 5) Rick Russell owns a small company that specializes in waste cleanup on the high seas. He believes that his company can grow dramatically if he can find foreign partners and investors.According to the events and trends cited in the text as affecting global business today, which of these trends would have the most impact on Mr. Russell's business? Explain your rationale. After reviewing the trends, the trend that is most likely to affect Russell's operation is the fourth trend–the mandate to properly manage the resources and global environment for the generation to come. Students should supply their own rationale. If another trend is chosen, it should be explained, characterized, and justified. Difficulty: Moderate Type: Application 04. (p. 11, E xhibit 1. 3) Scott Web Services has decided to go international with their new anti-spam software. Using the International Marketing Task model shown in the text, discuss which factors will impact Scott Web Services the most as it gears up to pursue international expansion. To effectively answer this question, students must be familiar with Exhibit 1. 3. Students can comment on the inner ring (domestic controllables), middle ring (domestic environment [uncontrollables]), and the outer ring (foreign environment [uncontrollables]).Students should focus on the technological aspects of the company, political/legal forces, competitive forces, and cultural forces that might impact the company. Students can be creative with this answer; therefore, you might wish to establish ground rules or guidelines. Difficulty: Hard Type: Application 105. (p. 15-17) You are about to eat at a friend's house for dinner. However, your friend is from a foreign country and you are sure that his family will h ave prepared an ethnic meal for you.Explain how your self-reference criterion (SRC) might cause you problems with your upcoming new experience. What should do about this? This example is created to stimulate students into thinking about how that their own â€Å"cultural baggage† can sometimes make a new experience frightening. Eating strange food among â€Å"foreigners† is a common occurrence. Stimulate students think about what SRC is and how it can either hinder or help a relationship. For additional information on SRC, see pages 15-18. Difficulty: Easy Type: Application

Green Marketing Strategy of Businesses

Green marketing has been an important academic research topic since it came about (Coddington, 1993; Fuller, 1999; Ottman, 1994). Attention was drawn to the subject in the late 1970’s when the American Marketing Association organized the first ever workshop on ‘Ecological Marketing’ in 1975 which resulted in the first book on the subject, entitled, ‘Ecological Marketing’ by Henion and Kinnear in 1976. The first definition of ‘green marketing’ was according to Henion (1976); â€Å"the implementation of marketing programs directed at the environmentally conscious market segment† (Banerjee, 1999, p. 8). Peattie and Crane (2005) claims that despite the early development, it was only in the late 1980’s that the idea of green marketing actually made an appearance, because of the consumers’ growing interest in green products, increased awareness and willingness to pay for green features. Henion’s (1976) definition of green marketing has evolving and many more definitions of green marketing have arisen throughout the years. One of the latter definitions is Fuller’s (1999, p. ): The process of planning, implementing, and controlling the development, pricing, promotion, and distribution of products in a manner that satisfies the following three criteria: (1) customer needs are met, (2) organizational goals are attained, and (3) the process is compatible with ecosystems. The first indication of consumer interest in green products came through Vandermerwe and Oliff? s (1990) survey. This stated that more than 92% of European multinationals claimed to have changed their products in response to green concerns and 85% claimed to have changed their product systems (Peattie & Crane, 2005). Green product introductions increased by more than double to 11. 4% of all new household products in the USA between 1989 and 1990, and continued to rise to 13. 4% in 1991 (ibid. ). However, this optimistic start to the 1990’s was not sustained (Peattie & Crane, 2005. A report conducted by Mintel in 1995, showed only a very slight increase in green consumers since 1990, and showed a significant gap between concern and actual purchasing (ibid. ). This can be attributed to the fact that consumers do not want to compromise on price, quality or convenience when conducting a ‘green’ purchase (D?  Souza et al. , 2006). The frequency and prominence of green claims was also found to be in decline (Peattie & Crane, 2005). So instead of the â€Å"green revolution† in marketing forecasted for the 1990s, companies became more cautious about launching environmentally-based communications campaigns for fear of being accused of â€Å"greenwashing† (ibid). This is when a company hides the true effect of its products or actions on the environment, by making it seem as though the company is very concerned about the environment (Greenwashing, 2009). One challenge green marketers — old and new — are likely to face as green products and messages become more common is confusion in the marketplace. â€Å"Consumers do not really understand a lot about these issues, and there's a lot of confusion out there,† says Jacquelyn Ottman (founder of J. Ottman Consulting and author of â€Å"Green Marketing: Opportunity for Innovation†). Marketers sometimes take advantage of this confusion, and purposely make false or exaggerated â€Å"green† claims. Critics refer to this practice as â€Å"green washing†. Even though this revolution did not occur as predicted, the interest in the topic has not died down. Grant (2007, pp. 20-24) claims that green marketing is at a tipping point and that what we do next will decide if the topic continues to develop and gain momentum. The popularity of such marketing approach and its effectiveness is hotly debated. Supporters claim that environmental appeals are actually growing in number–the Energy Star label, for example, now appears on 11,000 different companies' models in 38 product categories, from washing machines and light bulbs to skyscrapers and homes. However, despite the growth in the number of green products, green marketing is on the decline as the primary sales pitch for products. On the other hand, Roper’s Green Gauge shows that a high percentage of consumers (42%) feel that environmental products don’t work as well as conventional ones. This is an unfortunate legacy from the 1970’s when showerheads sputtered and natural detergents left clothes dingy. Given the choice, all but the greenest of customers will reach for synthetic detergents over the premium-priced, proverbial â€Å"Happy Planet† any day, including Earth Day. New reports however show a growing trend towards green products.   This provides information regarding the setting of the study and/or general information about preview of the topic. The term Green Marketing came into prominence in the late 1980s and early 1990s. The American Marketing Association (AMA) held the first workshop on â€Å"Ecological Marketing† in 1975. The proceedings of this workshop resulted in one of the first books on green marketing entitled â€Å"Ecological Marketing†. The first wave of Green Marketing occurred in the 1980s. Corporate Social Responsibility (CSR) Reports started with the ice cream seller Ben & Jerry's where the financial report was supplemented by a greater view on the company's environmental impact. In 1987 a document prepared by the World Commission on Environment and Development defined sustainable development as meeting â€Å"the needs of the present without compromising the ability of future generations to meet their own need†, this became known as the Brundtland Report and was another step towards widespread thinking on sustainability in everyday activity. Two tangible milestones for wave 1 of green marketing came in the form of published books, both of which were called Green Marketing. They were by Ken Peattie (1992) in the United Kingdom and by Jacquelyn Ottman (1993) in the United States of America. According to Jacquelyn Ottman, (author of Green Marketing: Opportunity for Innovation) from an organizational standpoint, environmental considerations should be integrated into all aspects of marketing— new product development and communications and all points in between. The holistichttp://en. wikipedia. org/wiki/Holistic nature of green also suggests that besides suppliers and retailers new stakeholders be enlisted, including educators, members of the community, regulators, and NGOs. Environmental issues should be balanced with primary customer needs. The past decade has shown that harnessing consumer power to effect positive environmental change is far easier said than done. The so-called â€Å"green consumer† movements in the U. S. and other countries have struggled to reach critical mass and to remain in the forefront of shoppers' minds. While public opinion polls taken since the late 1980s have shown consistently that a significant percentage of consumers in the U. S. and elsewhere profess a strong willingness to favor environmentally conscious products and companies, consumers' efforts to do so in real life have remained sketchy at best. One of green marketing's challenges is the lack of standards or public consensus about what constitutes â€Å"green,† according to Joel Makower, a writer on green marketing. In essence, there is no definition of â€Å"how good is good enough† when it comes to a product or company making green marketing claims. This lack of consensus—by consumers, marketers, activists, regulators, and influential people—has slowed the growth of green products, says Makower, because companies are often reluctant to promote their green attributes, and consumers are often skeptical about claims. Despite these challenges, green marketing has continued to gain adherents, particularly in light of growing global concern about climate change. This concern has led more companies to advertise their commitment to reduce their climate impacts, and the effect this is having on their products and services. This provides the concise description of the issues that need to be addressed. It also provide why these variables are important so it focus on it. The ongoing marketing paradigm, according to Peattie (1999, p. 57), is based on using the earth’s resources and systems in an unsustainable manner. The traditional view on corporate social responsibility, which argues that corporation manager’s and director’s only responsibilities are to the â€Å"owners† of the firm and to maximize profit, started changing in the early nineties to include a responsibility not only to those with a vested interest in the corporation (Klonoski, 1991). Instead a company must consider the effect of its actions on all stakeholders, including nature and animals (ibid. ). Many of the serious environmental issues we face are due to modern development and the pursuit of econoy Peattie, 1999, p. 58). However, making these crucial changes occur requires more than individual change; change on a societal and economic level will be necessary (Grant, 2007, p. 47; Hartmann & Ibanez, 2006). Hence, governments will need to commit to developing forward thinking environmental policies (Peattie, 1999; Grant, 2008). Corporations must integrate greening into their business strategy and invest in the development of it as they would any other aspect of their business (Polonski & Rosenberger, 2001). Finally, the consumers have to actually purchase the environmentally friendly products they, so far, only claim to be interested in (Ginsberg & Bloom, 2004). In the end though, going green needs to make business sense for the corporation and not require a compromise on product attributes for the consumer. Marketers have a tremendous potential to help make this shift happen by pushing organizations to implement some form of a green marketing strategy (Peattie & Crane, 2005; Grant, 2007, p. 32). Marketers have the power to help „sell? new lifestyle ideas (Grant, 2007, p. 1) According to Ottman (1993) green marketing serves two key objectives: 1) To develop products that incorporate consumers? eeds for convenience, affordable pricing and performance while having a minimal impact on the environment. 2) To project an image of high quality, including environmental aspects, both in regards to product attributes and the manufacturer’s track record for environmental compliance. If a paradigm shift from conventional to green marketing occurs, corporations will need to incorporate sustainability into their strategies or risk being left behind (Grant, 2008). It will be important for organizations and marketers to be well-versed on the subject and have a thorough understanding of green marketing and how it can create value. Since the mid-nineties environmental legislation has increased, leading to a higher level of awareness of environmental issues in the business community and many corporations being required to consider these issues in their strategic planning in order to meet stricter environmental standards (Banerjee, 1999, p. 18; Olson, 2008). Regardless of legislation and standards many people are calling for corporations in general to take more responsibility for their actions and the consequences thereof. Green marketing concept is fairly young and as a consequence it has not been extensively explored or research yet (Grant, 2007, p. ; Hartmann & Ibanez, 2006; Baker & Sinkula, 2005). Olson (2008) claims that while many corporations have implemented some form of green initiative, very few have actually established an enterprise-level green strategy. He furthers states that, while it may vary depending on industry and possibly by individual business, early adoption of a formalized and well-articulated green strategy can allow companies the opportunity of a competitive advantage. Considering Olson’s statement, one wonders how corporations, that have indeed incorporated some form of green thinking into the business, have done so and for what reasons. Therefore, the purpose of this study is to gain a deeper understanding of the subject of strategic green marketing by examining how strategic green marketing can be developed and what incentives companies have to do so. In order to fulfill this purpose, four research questions were developed. One objective of a marketing strategy is to optimize the marketing mix in relation to the wants and needs of the target market (Fuller, 1999, p. 330). Data from the targeted business consumers can provide valuable input for the decision making process (ibid. . 320). Fuller (1999, p. 330) further states that mass-undifferentiated marketing will often fail to ensure customer satisfaction and profit and that segmenting the market provides a more realistic market interpretation. The first research question is therefore: RQ1: How do companies segment their market based on business consumers’ green tendencies? Polonsky and Rosenberger (2001, p. 22) claim that â€Å"in true green marketing, environmental issues become an overriding strategic corporate focus rather than simply one strategic action†. When forming a green marketing strategy it is important to realize that, just as in conventional marketing, there is no single strategy that will work for all companies (Ginsberg & Bloom, 2004; Fuller, 1999, p. 330). Instead each company must examine what strategy will work best depending on its own individual objectives, resources, target market, competitive conditions and so on (Polonsky & Rosenberger, 2001). According to Olson (2008), many companies pass up significant benefits because they do not look at green opportunities in a strategic context. This brings us to research question two: RQ2: How do companies choose their green marketing strategy? Implementing a green marketing strategy requires a fundamental, holistic, integrated approach across all functional marketing areas, including the entire marketing mix of targeting, pricing, design, positioning and promotion (Polonsky & Rosenberger, 2001). According to Fuller (1999, p. 109), only companies that are truly committed to environmental concerns and are willing to translate those concerns into action through marketing mix decisions can develop viable green marketing strategies. Due to these facts, research question three was developed: RQ3: How do companies’ choices of green marketing strategy influence their marketing mix? Authors such as Porter and van der Linde (1995) and Elkington (1994) argue that environmentally superior strategies exist, which can create a competitive advantage by stimulating innovation and tapping into consumer concerns. Fuller (1999, p. 39) states that worldwide corporate practices suggest that a competitive advantage can indeed be earned and companies not implementing a green marketing strategy will be viewed as uncompetitive, unresponsive, and out of touch with emerging global markets. However, others argue that greening strategy is difficult to do in practice (Walley & Whitehead, 1994). Managers need strategies that transform environmental investments into sources of competitive advantage by optimizing the economic return on their investments (Orsato, 2006). This lead to the fourth, and final, research question: RQ4: How do companies obtain a competitive advantage through their green marketing? The obvious assumption of green marketing is that potential consumers will view product or service's â€Å"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. This green marketing approach is largely used as a gimmick by the gigantic corporate houses in order to make a difference in the consumer’s point of view when it comes to major market decisions. Many firms are beginning to realize that they are members of the wider community and therefore must behave in an environmentally responsible fashion. So green marketing is also a way of looking at how marketing activities can make the best use of these limited resources while meeting corporate objectives. Thus an environmental committed organization may not only produce goods that have reduced their detrimental impact on the environment, they may also be able to pressure their suppliers to behave in a more environmentally â€Å"responsible† fashion. Final consumers and industrial buyers also have the ability to pressure organizations to integrate the environment into their corporate culture and thus ensure all organizations minimize the detrimental environmental impact of their activities. With the human wants escalating heavily, the resources are decreasing. Hence it has become mandatory for the marketers across the globe to use the resources efficiently and not waste them under any circumstances. Worldwide surveys indicate that consumers globally are changing their behavior towards products and services. Green marketing is almost inevitable as the market for socially responsible products is increasing greatly. This provides what the study covers and fix its boundaries. Limitations specify certain constraints in the study which are essential, but which the researcher has no control of. Although the business-to-consumer (B2C) segment is a major contributor to the damage of the global environment and that a significant change in attitude is necessary, this thesis will only focus on the business-to-business (B2B) segment. The study is not limited to one industry but is examining a range of B2B firms with the purpose of gaining a deeper understanding of green marketing strategies in an overall business context. Most research conducted on the topic of green marketing is focused on the B2C market and the author’s consider there to be a significant lack of knowledge available when it comes to the B2B market. Furthermore, the authors? were intrigued by the apparent opportunities available to companies choosing to go green.

John Kerry on Syria Assignment Example | Topics and Well Written Essays - 250 words - 1

John Kerry on Syria - Assignment Example Having a weapon does not equate to automatic use and we did not even know if Assad has full control of them because there may be generals under him who would surreptitiously use it without Assad knowing. A. And we know what they did next. I personally called the Foreign Minister of Syria and I said to him, â€Å"If, as you say, your nation has nothing to hide, then let the United Nations in immediately and give the inspectors the unfettered access so they have the opportunity to tell your story.† Instead, for four days they shelled the neighborhood in order to destroy evidence, bombarding block after block at a rate four times higher than they had over the previous 10 days. And when the UN inspectors finally gained access, that access, as we now know, was restricted and controlled. B. Syria has chemical weapons and they are hiding it. When they were asked by UN for an inspection, they bombed it to destroy its evidence. They bombed it because their bombing rate was four time higher than the previous 10 days. C. This argument is unsound because Kerry immediately assumed that Syria is hiding its chemical weapons and that they are bent on hiding it so as to bomb it after UN advised for inspection. The certainty that they intend to hide their chemical weapons due to the increased rate of bombing is unsound. Increased rate of bombing can be caused by a multitude of factors and not just to hide it. It is also illogical to bomb their chemical weapons to hide them. Why not move and keep it somewhere else where no one can trace it? A. In all of these things that I have listed, in all of these things that we know, all of them, the American intelligence community has high confidence, high confidence. This is common sense. This is evidence. These are facts. C. The argument is just flatly wrong. What the American intelligence community is

A Price Discrimination and a Single-Pricing Strategy Essay

A Price Discrimination and a Single-Pricing Strategy - Essay Example Instead of charging a uniform price to everyone, the cable TV company can think in terms of charging the customers with respect to the number of paid channels they would like to watch. For some customers may not like sports channels and some others may not like movie channels. The cable TV company can think in terms of allowing the customers to select the channels they would like to watch and based on that the company can decide the prices of the service. Thus customers will get much more flexibility in selecting channels and controlling their budget for watching television channels. At the same time, it should be noted that the cable TV company may not lose any revenue since more customers will come forward to purchases such services because of the increased flexibility in selecting channels. In a perfectly competitive market, sellers may not get the freedom to fix the price. If they set a price above the market price, nobody will buy their product in a competitive market. In short, they will get only a normal profit in the long run. Some firms may fix higher prices for their products if the competition is less. Such firms will get abnormal profits in the short run. The abnormal profit earned by a single firm in a market will encourage other forms to enter the market and therefore supply will increase and the price would come down. Long run average cost curves represent the economies of scale and diseconomies of scale as far as a firm is concerned. Economies of scale mean the ability of a firm to reduce the unit price of a product with the help of bulk production.