Understanding The Term Foreign Direct Investments Finance Essay - Free Essay Example

Sample details Pages: 6 Words: 1732 Downloads: 6 Date added: 2017/06/26 Category Finance Essay Type Analytical essay Did you like this example? The paper helps the reader to understand the meaning of the term Foreign Direct Investments (FDI). Countries investing beyond domestic frontiers are called as source countries, countries receiving foreign investments are called as host countries. This article explains factors affecting FDI movements between countries. Brief mention about circumstances that are detrimental to FDI inflows or outflows are also explained. Two developing economies; India and China are compared and evaluated on FDI attractiveness on the bases of factors discussed as influential to FDI growth in an economy. INTRODUCTION Understanding FDI: FDI refers to capital movements between countries; it can be capital inflows or outflows. Capital inflow occurs when country experiences investments by foreign individuals, group of individuals, corporations, and group of related enterprises, government agencies, social organizations or combination of the investors mentioned above and vice versa for capital outflows. Capital refers to: Monetary investments by foreign companies/individuals. Equity stake in a particular company or set of companies in an industry Transfer of technical know-how, personnel and assets between countries. FDI (capital inflows) can occur through the following methods: Opening up subsidiaries in host countries. Through joint ventures with investors or enterprise located in host countries. Through mergers or acquisition of unrelated or related enterprise located in host countries. Attempts to explain inward FDI flows to host countries include both micro and macro explanations. Micro ex planations focus on individual firms and the motives for expansion into foreign markets through wholly owned subsidiaries and joint ventures (rather than through licensing or exporting). For example, Aharonis (1966) pioneering study of direct investments by US firms abroad looked in detail at the company-specific characteristics of that kind of investment. A number of additional studies have followed that micro-level analysis (Caves, 1974; Grubaugh, 1987). The macro approach focuses on country level variables (e.g., exchange rate changes or interest rate differentials) to explain national FDI flows. These studies generally examine country-level factors that determine the country of destination of FDI, i.e., they explain why direct investors choose one country over another (Green and Cunningham, 1975; Culem, 1988; United Nations Centre on Transnational Corporations, 1992; Lipsey, 1999). Both macro and micro explanations are relevant; the two perspectives complement each other and further our understanding of FDI. In fact, Dunnings (1980, 1997) eclectic theory of FDI combines the two approaches, focusing on firm-specific advantages (e.g., a brand name or proprietary technology) that firms may possess relative to their rivals, benefits from internalizing the market for these advantages within the hierarchy of the firm when it expands abroad, and location advantages that attract FDI to one country vs. Another. As distinguished from these approaches, our analysis takes a macro-level view but it focuses on the macro attributes of the countries of origin of the FDI, rather than the countries of destination. We look at only one target country, Mexico, and explore the factors that explain why companies from different home countries have chosen to invest there. A review of the literature conducted in 1981 revealed that to that point, no comprehensive macro model had been developed to explain FDI inflows and/or outflows (Arpan et al., 1981). Even so, by that time, several substantial studies of the multiple causes of FDI had appeared in the literature (e.g., Aharoni, 1966; Green and Cunningham, 1975; Kobrin, 1976; US Department of Commerce, 1976; Root and Ahmed, 1979). During the 1980s, a number of studies explored multidimensional attributes of FDI flows, usually looking at the characteristics of the host countries (e.g., Fagre and Wells, 1982; Nigh, 1985; Lecraw, 1985; Schneider and Frey, 1985). An excellent review of this literature appears in United Nations Centre on Transnational Corporations (1992). Moving along a different dimension, researchers such as Ajami and Barniv (1984), Tallman (1988), and Grosse and Trevino (1996) began to focus on home-country determinants of FDI into target countries. All of these researchers who looked at country-of-origin effects have studied the US as the target country. Ajami and Barniv (1984) studied a variety of different economic factors that might affect FDI flows into the US. They found existing tra de between home countries and the US to be positively correlated with FDI inflows to the US. This supported their hypothesis that exports generally precede FDI because FDI involves much more commitment by the firm than exports. They also found differences in interest rates or capital market disequilibrium to be significantly correlated with FDI; this confirmed their hypothesis that there is a cost advantage for firms in a home country where interest rates (cost of borrowing) are lower than in a target (potential location of FDI) nation. Tallman (1988) developed a model with political and economic variables explaining variation in FDI inflows to the US. He found that home-country level of economic development is positively correlated with FDI inflows to the US. Further, he found that political risk is positively correlated with FDI into the US. The positive correlation between political risk and FDI supported his hypothesis that firms from relatively unstable home countries seek t o escape risk by expanding into a country with a more stable political environment the US. Grosse and Trevino (1996) developed another multidimensional (political, geographic and cultural distance, and economic) model of FDI. They test the model using data on inward FDI to the US by country of origin over a 12-year period. They find significant results for the model as a whole which included economic variables: (1) existing bilateral trade, (2) size of home-country market, (3) per capita income, (4) relative cost of borrowing, (5) relative rate of return, (6) exchange rate; a political variable: country-of-origin political risk; a geographic variable: geographic proximity; and a cultural variable: cultural proximity. For the individual variables, they found that existing bilateral trade, home-country size (GDP), exchange rate, cultural distance, geographic distance, and political risk were all significantly associated with FDI flows into the US. The multidimensional approach is a ppealing because it cuts across disciplines: it views FDI in light of economic, sociological, political, historical, and managerial perspectives. In general, the economic perspective focuses on market characteristics and efficiency-gaining motives for FDI. For example, if labour costs in foreign countries are lower than in the home country, there is disequilibrium and firms may invest abroad to take advantage of the cost savings. Socio-political arguments focus on the effects of the macro business environment on firm operations. For example, the degree of market orientation of the government, infra structure and legal environment will affect firms decisions to expand internationally. Geographic arguments, in general, focus on transportation and communication costs involved in managing and controlling dispersed international operations. For example, Germany and Switzerland are physically (geographically) close together; therefore, the costs of inter-nation investments are lower relat ive to another pair of countries that is further apart geographically (e.g., Germany and Brazil). Don’t waste time! Our writers will create an original "Understanding The Term Foreign Direct Investments Finance Essay" essay for you Create order ii. Issue arising as a result of establishing a presence abroad. Each year, hundreds of established and growing companies consider international expansion as a marketing and growth strategy. When developing a strategic plan to launch an international mergers and acquisition (MA) program, financial executives and their advisors must always consider the potential barriers and adjustments that might need to be made to maximize share holder value in a given transaction or in the execution of the given international market penetration strategy as discusses below. The Obstacles are In determining our ability to offer products and services abroad, consider the following: Language barriers Although it may seem simple enough at the outset to evaluate the features of a given product, service, or opportunity into the local language, marketing the services and/or the product may present unforeseen difficulties if the concept itself does not translate well. The target countrys standards for humor, accepted puns or jargon, or even subtle gestures may not be the same as your domestic countrys norms or idioms and may need to be adjusted accordingly. Marketing barriers. These types of barriers most frequently go to the deepest cultural levels. For example, whereas many overseas markets have developed a taste for fast food burgers and hot dogs, differences in culture may dictate that the speed aspect is less important. Many cultures demand the leisure to be able to relax on the premises after eating a meal rather than taking a meal to go. These cultural norms can, in turn, be affected by factors such as the cost and availability of retail space. Direct and subtle messages in advertising campaigns may need to be modified, the appeal of using a particular celebrity in a campaign may vary, and the channels for promotion may also need to be modified to meet the educational patterns and needs of the local consumer. Even marketing methodologies may need to be modified. In certain cultures, coupons are widely accepted and used by people who are both rich and poor (such as in the United States) but in other cultures, coupons are not widely used or accepted . In some cultures, even the use of comparative advertising, which is now commonplace in the United States, could be viewed as offensive or destructive. Legal barriers. Tax laws, customs laws, import restrictions, corporate organization, and agency/liability laws must all be researched by the company and its counsel. Domestic legislation needs to be examined as well for issues arising under labour law, immigration law, customs law, tax law, agency law, and other producer/ distributor liability provisions. Governmental Barriers The foreign government may or may not be a barrier for the foreign investment or expansion of a company. A given countrys past history of expropriation, government restrictions, and limitations on currency repatriation may all prove to be decisive factors in determining whether the cost of market penetration is worth the benefits to be potentially derived. Export regulatory requirements Any company which think of doing business or acquiring businesses either in a large scale or even a small transaction should always consider the implications and requirements of a body of the country. The regulations are define as the export controls (Andrew 2007). For instance when we consider a developed country like U.S it is incumbent and companies that sell, ship or transfer electronic goods determine controls or restrictions apply or selling. Hereby I conclude that when a company looking forward for the investing in a foreign country should always think of the pros and cons. There are various trade compliance services available for hire in order to help the exporters. Compliance guidelines and the specific requirements are available on web as well as there are number of agencies available in order to give the relevant information on the foreign direct investment.

Differences and Similiraties Between Dickens and Hardy

Dickens was born in Portsea, in 12. His father, John Dickens, was a kind and likeable man, but incompetent with money, and due to his financial difficulties they moved to Camden when Dickens was nine. When Charles was twelve his father was arrested and taken to the debtors’ prison in Southwark. He started working at Warren’s blacking-warehouse and its strenuous working conditions made an impression on him, later influencing his fiction. He became interested in writing (and acting) and, after having learnt shorthand in his spare time, he began working as a freelance reporter at the Parliament and the Old Bailey. Under the nom de plume Boz he published the eponymous Sketches (36), a collection of short pieces concerning London scenes and†¦show more content†¦He succeeds not only in making his readers sympathize with the children, but also in proposing them as models of the correct way people should behave to one another. His aim lies in teaching a moral lesson t o the reader. To accomplish this he uses the most effective language, i.e. a careful selection of adjectives, lexical and syntactical repetitions, juxtapositions of images and ideas and hyperbolic and ironic comments, thus achieving the most vivid depictions of life and character ever attempted by any novelist. In Coketown, a fictitious industrial town, Thomas Gradgrind, an educator firmly believing in facts and figures, has founded a school based on the suppression of imagination and feelings, the same theories by which he raises his children Louisa and Tom. His daughter is compelled to marry Josiah Bounderby, a wealthy banker thrice her age, and she accepts so that her brother can be apprenticed at Bounderby’s bank, yet the marriage proves to be unhappy. Tom, grown up to be dissipated and self-interested, robs his employer, initially managing to make everyone suspect an honest laborer, Stephen Blackpool , then discovered and snuck out of the country by his sister. Hard Times is composed of three books of three chapters each: Sowing, about the seeds planted by means of

Strategic integrated marketing and communications †Free Samples

Question: Discuss aboutt the Strategic integrated marketing and communications. Answer: Two ethical issues needed to be considered: Every single organization needs to follow some set of ethical considerations which help to establish a good and trusted image in the market. Consumer behavior in contemporary market is not the one that happens in the ancient times. It has gone through a significant change. Modern-day consumers now have concerns about health aspects also when they make up their mind to purchase goods (East et al. 2016). The proposed Green Cow should be introduced to market only after fulfilling the few ethical considerations which are as follows (Sheth and Sisodia 2015): Informing consumers on the unique aspect of the product which is to offer them an environment-friendly drink. The information can be communicated through integrated communication modes. Following Green Standards for Manufacturing Justification and explanation of the selection: There can be other considerations as well; however, the selection has been done keeping in mind the needful activity which the company requires after being criticized in media for polluting the environment. The requirement to communicate with the customers, to make them informed on the uniqueness the proposed product has, is important for attaining their trust. Customers trust on the product can turn things in favor of the company (Egan, Hughes and Palmer 2015). Adherence to Green standards is important while during the manufacturing process as this will communicate the environmental aspects that the company had considered for the proposed product (Egan, Hughes and Palmer 2015). Recommendation for addressing the issues through integrated communication: There can be the various modes of interacting with customers; however, Ms. Printup should go with the Public Relation (PR) activity. They have already been criticized in media for being less careful to environmental aspects at its manufacturing plants. Addressing the media and the target audience by mean of a live session in the form of PR may help to restore the lost trust of media personnel as well as of customers (Ots and Nyilasy 2017). The company has earlier been dusted by the media reports. Now, by through PR activities, they will have a chance to speak a lot about their proposed product. Media will be able to ask a series of questions, answering which the company may be in a good position to supply the necessary information related to the proposed product. Moreover, the company will be able to present a good image of it to the media. It will also be able to communicate the environmental aspects that the product carries with it. Those customers who are concerned with environmental values, they will be able to relate them to the company's product. Target audience from the perspective of behaviouristic segmentation: Behaviouristic segmentation can be defined as a segmentation process which identifies the different buying behavior of customers. Customers have different buying behavior on different occasions like the Christmas or the New Year. They also behave differently when they have a reason to celebrate or make fun. Celebrations can be for various reasons like getting a dream job, scoring good marks in academics, completing a project successfully and finding ample reasons to enjoy at homes. In all such situations, customers react differently while purchasing their required or desired product (Bruwer and McCutcheon 2017). It is necessary for the case study organization that it identifies the behavior of its target audience. Young men drink more than the women of same age group. Men aged 18 to 49 should be targeted particularly. Additionally, the product will be more specifically targeted on those who have concerns for an environment-friendly product. Celebrities like sports players can also be targeted as they will get health-oriented drinks in the form of Green Cow'. Moreover, the theme will find its relations with the mentality the sports players have. The target audience will also be the family members who prefer a huge purchasing of beverage during the Christmas and New Year. These are the few occasions when a family member does purchase drinks in huge numbers. Most importantly, the target audience will, in particular, be those who are concerned with environmental values of the product. This means they do examine the environmental benefits before they make the purchase. Those customers will be in the age group 18-49. In particular, they will be the young consumers who desirably look for products meeting the environmental values. They will pick up only those which are high in meeting the environmental standards in its manufacturing process. Identifying the one group that is strategically desirable for the product: The one group that is desirable to the products like Green Cow is the young people who analyze their desirable products from the environmental aspects. Once they find their desired products meeting all the standards, they decide to make up the purchase. The group, in particular, is strategically desirable for any product like such. Other ways to strengthen the products validity with this one group: The products validity with this one group can further be strengthened by making small-scale sales on a third-party platform like Amazon, Etsy, and eBay (Wang, Cavusoglu and Deng 2016). This will bring a lot of difference to the products validity as case study organization will be able to identify the customers expectations with the proposed product. Young age men find Smartphone in their hands from their early childhood. They are brought up in such an environment where they start using electronic gadgets for playing games. The addiction becomes even enlarged and finds some added usage of it. They wish to do their maximum tasks with the help of such gadgets. Purchasing online through e-commerce platforms like eBay and Amazon is one of their activities (Schade et al. 2016). Moreover, making small-scale sales on such e-commerce platforms may help to find the feedbacks of their target audience which in particular are the young age men. Importance of positioning: Market positioning may be defined as a process which firms use to attract its target audience. This is basically the consumer's perception of the brand that they use to present a most relevant series of product to customers. Identifying a wrong market segment and making the customers acknowledged with an inappropriate message may lead to a destructive loss. Positioning statement encourages the consumer perception of it (Maingi, Ondigi and Wadawi 2016). Suppose for an example, a phone is being sold claiming that it offers a top-notch camera quality; however, few customers have found this partially correct after using the phone. Such gaps will create negative views in those who have purchased it. Such reviews may influence the buying behavior of others who check the reviews prior to purchase anything. On contrary to the scenario, if a phone fulfills the claims it has made to the common public, it will most certainly receive the positive reviews. Hence, further sales will also improve because of positive word of mouth. The one example is enough to understand what actually positioning means in marketing. Positioning statement should be relevant to the products quality. It should appear attractive to customers (Maingi, Ondigi and Wadawi 2016). The positioning statement for Green Cow' identifying the target audience, key benefits and category: The target audience for Green Cow will, in particular, be the young age men those who have concerns about an environment-friendly beverage. The product will have different age group as its customers; however, this is particularly being made for environmentally conscious people. The positioning statement will also be designed keeping in mind the young customers. The positioning statement for Green Cow will be as follows: A beverage especially being crafted from natural resources to please the souls of natural lovers The recommended positioning statement is designed keeping in mind the type of audience that the case study company has targeted. The statement had emphasized on the special attraction that Green Cow will offer to customers. The product will use natural resources and will produce an environmentally friendly product. Two recommended strategic adoption factors: Adoption in marketing can be defined as strategies that encourage the final purchase of the product. Adoption should be strategically planned, so that, customers are able to connect their thoughts with the products (Percy 2014). There are various adoption factors in marketing; however, the study will focus on just two adoption factors for Green Cow. Those two factors will be relative advantage and divisibility. Relative advantage means presenting a product which is even better than the previous. It means that the case study organization will be required taking the help of relative advantage'. By taking the help, they will be able to communicate to customers that the proposed product is much better than the previous one. This may also help to maintain good adoption rates provided that, if the products are being delivered as committed to customers (Percy 2014). Another strategy will be to go with Divisibility. Divisibility in marketing can be defined as a process which encourages trial on a limited basis'. This means that products should first be made available to customers with limited stock. It means a small scale sale first which provides a chance to know the reactions of customers (Vernuccio and Ceccotti 2015). The case study firm should follow this strategy and in course of action, Green Cow needs to be launched in small scales in the earlier days. By going the mentioned way, the marketing team will be able to track the initial response of customers to the product. This appears as important when looked at the recent performance of the firm. The firm was being criticized by series of media coverage on the environmental performance of Blue Cow, one of the products from the company. In this regards, it is imperative for the company that it takes a measured approach towards the introduction of a new product. Explanation of the selection and utilization of two factors in a campaign: The first selection is of relative advantage. Relative advantage will help the case study organization to present an even better product to customers. The betterment may be in any regards; however, the management had decided it earlier that difference will be in the context of environmental aspect. Moreover, in the light of concept presented from relative advantage, the concept will help the manufacturing team to follow the committed points while preparing Green Cow. In course of action, the management team will be able to deliver on the commitment made to customers. The product as looked may prove to be beneficial if being presented exactly in the form of being desired. The second selection is of divisibility. This strategy will help to launch products on a small scale. The strategy is a good way to know the response of customers. Moreover, the firm will be able to know the initial responses and will accordingly proceed ahead. Suppose if they have negative reviews or mixed reviews, the firm will be able to make useful amendments by closely monitoring the customer reviews. Hence, this will increase the chances of being sold on the next scale of products. On the other hand, if responses are largely positive then this will mean a continued production of the same scale. Two specific integrated communications for Green Cow: Public Relation (PR) activity will be ideal for divisibility'. Customers will be acknowledged on a small scale release of the products. They will also be asked to give their reviews, so that, necessary amendments could be made to the products in next scale of products (Blakeman 2018). For relative advantage', different social platforms like Facebook, Twitter and YouTube can be used. Related videos educating on the changes considered with Green Cow' can be uploaded to YouTube. The video can be seen millions of customers in a very less time (Blakeman 2018). Rossiter-Percy Bellman Grid: Rossiter-Percy grid is a good way to understand the best feasible strategy which will make the campaigning successful. Few integrated campaigns will be required to successfully promote the product to its target customer. The model provides a very easier yet a very effective strategy making tool to make the scheduled campaign look attractive. The model is divided into four categories where every single grid has different meanings attached to it. Grids have been classified based on two factors Motivation and Involvement (Huhmann, Franke and Mothersbaugh 2012). Motivation is further divided into two categories like informational and transformational. Informational conveys a negative emotion whereas transformational is related to positive emotions (Huhmann, Franke and Mothersbaugh 2012). Justification for the selection: In the context of the case study organization, the involvement of audience needs to be high. Additionally, the campaign needs to be transforming the ideas, so that, the audience has better connectivity to it. The grid will be a combination of a yellow-red quadrant. The chosen product needs a high involvement of the audience, so that, more and more audiences are being made aware of the proposed product. Additionally, their involvement is also required because of the recent critics that the case study organization had to face in series of media reports. The transformational campaign has been felt as important as this may help their target audience to dislodge the negative perception which they are carrying since the Blue Cow' was being criticized by the media. Remote Conveyor Model: This is one of the most effective models to make creative strategies for advertisement campaigns. It is a structural model which is specifically being designed for presenting central theme to the target audience, so that; they react to the advertisement campaigns positively. A positive reaction is indeed required to ensure that information has been successfully explained to the audience. Additionally, it also allows a pre-test of the designed creative strategy which is a much better part of it. Moreover, it can be ensured that campaigns are whether correctly positioned or there are some changes needed to it (Kerr and Patti 2015). There can be several examples of such ideas like as follows (Kerr and Patti 2015): Attention-getting which is necessary these days to break through the clutter Effective in communicating the key benefits of it to its target audience Creative in meaning in context to the product Central campaign theme and the rationale for it: The most appropriate central theme in the light of Remote conveyor model will be like attention-getting. The launch of Green Cow' needs an attention-grabbing campaigning to make the audiences engaged with it. The more the audiences are engaged in the campaigning, the more will be the chances for success. Moreover, they might feel encouraged to look for the products. This is also required as one of the products of the case organization has been in criticism in the form of series of media reports. It has impacted the image that it has on the market. They had needed it to deliver something new which could revive again the feeling that their customers had on their chosen brand. They had planned the launch of a creative product which will use natural resources to provide an environmentally friendly product to its target customer. However, it is even more important that their target customers feel and realize the difference in it. An advertisement is the first way that helps a brand to influence the customers perceptions (Percy 2016). The perception may be effectively encouraged by communicating to customers. An effective communication can indeed be established by an organized integrated communication. An organized integrated marketing communication is attainable if it follows the relevant models and conceptual frameworks to make it look effective and engaging as well (Percy 2016). Nonetheless, the chosen theme which is attention-getting may produce effective results to make it a successful campaign. Conclusion and recommending a slogan: To conclude this section, it can be said that a proposed advertising campaign for Green Cow' needs to follow a few models and conceptual strategies, so that, it succeeds in delivering an attentive and engaging campaign for the target audience. The campaign needs to be involving and transforming for the audience as understood from the Rossiter-Percy Bellman Grid. This might help in involving the audience. Moreover, they might also be tried to get transformed with what has been shown to them. Attention-getting will be the central theme as understood from Remote Conveyor Model. This may help in grab the required attention of the audience. Moreover, this will also help the campaign to transform the information which it intends to communicate to the audience. Suitable media strategy for Green Cow and justification of primary medium and secondary media: Media strategy can be classified into two categories like primary and secondary. Primary media is all the resources which are primarily being focused on a firm. On the other hand, secondary media are all such sources which are secondarily focused by a firm (Blakeman 2015). For Green Cow', the primary medium will be the sport magazine as suggested by Ms. Printup. On the other hand, the secondary medium will be a general PR activity. Sports magazine has been chosen by Ms. Printup. The reasons behind the selection are to catch a good attention of sports lovers. The proceedings will be managed by endorsing Stem Christie in a general sport magazine as being proposed from Ms. Printup. On the other hand, PR activity is being chosen as a secondary choice for marketing campaign as it provides some good opportunity to interact with the media and indirectly answer to the customer's queries. Maintaining a balance between reach and frequency: The media strategies that have been picked up for Green Cow should well be balanced in regards to reaching and frequency. Reach is related to the numbers of the audience that were reachable through the integrated campaign. This should be positive and more than 50 percent to ensure a deliverable campaign (Ndlela and Chuchu 2016). For Green Cow', reach should be close to 99 which means almost every customer was reachable and have understood the message that is being communicated through an integrated communication. Frequency means the number of times a customer has been approached. This should also be good as it helps to respond to the rising competition in the market. However, it should be done in a measurable way to avoid any customer burnout that may also affect the customer base (Ndlela and Chuchu 2016). For Green Cow, it is important that it has a lower frequency rate, so that, it does not add more negative views to the already created image in media. Integrated guidance on facets of earned, owned and paid media: There is a need to have an effective strategy for ensuring a good mix of marketing communication. Marketing communication can be divided into three segments like earned, paid and owned media. Owned media is all such platforms that are managed by firms like the website, social media profiles, mobile apps, guest blogs and updates. Earned media are such platform where users can take part to post their reviews. Customers around the world are more in favor of earned media (Xie and Lee 2015). For an example, Google Maps receives the different reviews directly from the users of Google Maps. Paid media are all such platforms that are payable. Examples may include like sponsored links, paid directory listings, banner ads, mobile apps and others (Xie and Lee 2015). It is important for the case study organization that it identifies its needs and proceeds with the campaign accordingly. For Green Cow, it is important that it takes care of the various integrated forms of marketing like earned, paid and owned media. Apart from being focused on an advertisement in a general sport magazine and a PR activity, there is a need to put an integrated focus on the various earned, paid and owned media. This may help them to strengthen its reach to customers which is necessary for making them aware of the changes being brought in the form of Green Cow. Additionally, frequency rate will also improve which is another important point to stay strong in the rising market competition. Advantages and disadvantage of endorsing a celebrity in a sport magazine advertisement: There are several advantages and disadvantages of endorsing celebrity for an advertisement. Following are some advantages of endorsing celebrities for an advertisement: Advantages: - Celebrity helps to enhance the brand equity which stays longer and powerful. Customers are aware of their superstars. They after seeing their superstars being endorsed for an advertisement, start connecting to it. The connection gets deeper and deeper with the passage of days and hence, the bonding between the advertisement and the target audience becomes healthier (Han and Yazdanifard 2015). - These are also a very good way of enabling the customer to remember the advertisements. Customers remember advertisements through their favorite stars. Hence, this is good for the sales (Han and Yazdanifard 2015). - This also helps customers believe that the product has a superstar status added to it. This is so because they have high trust in their favorite stars which is why they build up a perception that products endorsed by the favorite stars will also be good and valuable (Han and Yazdanifard 2015). - Celebrities may also help to stand out from the gathering of surrounding clutter. People love watching their stars doing the advertisements (Han and Yazdanifard 2015). This is also worth mentioning a benefit for the firm as this will contribute to increment the frequency rate. Disadvantages: - Image change is a big disadvantage to the trust relationship which the product has with its customers. A celebrity may also be surrounded by legal allegations for various reasons like doing some unethical practice. In such cases, this may also hamper the trust that the customers have on the brand (Wigley 2015). - Overexposure to various endorsements may also hamper the trust that customers have on the brand. For an example, a celebrity is involved in endorsements for several different brands. Such things question the celebritys credibility and also the genuineness of the brand. This may also damage the image of the product as in such cases; audience might only be focused on their favorite celebrities (Bilgihan 2016). Recommending a better sport magazine advertisement: Endorsing a celebrity in a general sport magazine is being proposed by Ms. Printup. This needs to be done cautiously in order to avoid the negative consequences which all happen in different circumstances as discussed in the section that covers disadvantage of endorsing celebrity in advertisements (Chawansky 2016). The case study organization needs to sign up a deal with its desired celebrity regarding the period of a contract. Moreover, during the period of a contract, the selected celebrity should not be allowed to be featured in any other endorsements of other brands. This may help to establish a trustworthy relationship with the audience as they will get to see their favorite celebrity repeatedly with the same advertisement and brand (Chawansky 2016). Impact of marketing campaigns on customers: The statement that Ms. Printup has admitted regarding the emerging channels of communication does mean that customer's perception nowadays can be effectively influenced according to the firms needs. The integrated marketing channels have helped to control the perception of customers. Such activities do actually drive their purchasing behavior. In the light of the statement admitted from Ms. Printup, following the impact of marketing campaigns can be listed (Pescher, Reichhart and Spann 2014): - The various kinds of integrated marketing communication drive the perception builds up in favor of what is being shown to customers through the advertisements. - It also affects the decision making on purchase which is the ultimate target that is set with a product or a service. - Integrated channels of communication help to transform the deeper insight of a product or a service Control of Green Cow campaign on customers: The case organization needs to enhance its capability in context to integrated communication. This is necessary to communicate a clear and concise yet very effective message regarding the product to its target audience (GHALE 2015). Customers should know the product that they are being exposed to otherwise it is no mean to spend so much on advertisement campaigns. It is also necessary that the different advertisement campaigns are strategically managed to make it an act that has very fewer errors in it (GHALE 2015). A strategically managed move will be required during the Public Relation (PR) activity as the product will be made exposed to the media personnel and the few selected audience. This will also be required while deriding an advertisement in a general sport magazine. As already mentioned, it is important to manage and control the endorsed celebrity in order to maintain the gained trust of the audience. There is also a need for signing a contract with the endorsed celebrity f or a certain period of time. This will ensure no other endorsements are being signed by the same celebrity for different other brands. Examples to justify the designed marketing campaign: Below are the few examples which could help the case study company in executing the designed marketing strategies: - To perform the advertisement through a general magazine, the first thing will be to finalize the target magazine for the campaigning. Once the name has been finalized, the next step will be to execute the necessary steps which will be needed for getting a space in the outlined magazine. It will then followed by approaching the celebrity which has been finalized for the campaign. Nevertheless, every single step will be needed to be executed with a measurable approach and productive strategies. - For Public Relation (PR), the dedicated agency will be approached. They will be handed over with the requirements. A close study of how the agency will manage PR needs to be done to avoid any unexpected consequences. - Secondary advertisements will also be taken care with utmost strategies like closely monitoring the owned and paid media. This will help to respond to the complaints in real time and prevent from being attacked by negative responses of customers. Dangers of extensive controls to consumers: It could be the danger to provide an extensive control to consumers. The statement means depending entirely on customer reaction to integrated marketing campaigns (Natakusumah, Nursiana and Suryono 2017). It is important to attract the attention of customers towards the product which is Green Cow. However, it should be in a controlled manner. It is more important to focus on products quality and the commitments made to customers than just being involved in integrated communication while putting less focus on the products quality. Excessive dependency on consumers and having less focus on the quality part will virtually be not helping the sales in long-time. Nonetheless, customers need products that attribute values to their need (Natakusumah, Nursiana and Suryono 2017). Ms. Printup should have a high focus on the quality standard for Green Cow'. Integrated communication is also required but for grabbing a much-needed attention of customers. The company has suffered from the previous blast by media reports for its Blue Cow'. It is indeed needed that its target audience has trusted views on the new product. The case study company needs to restore the image which was to an extent being hammered from negative media reporting. This will enhance the chances of getting sold and being popularized again for the trusted quality of products. References: Bilgihan, A., 2016. Gen Y customer loyalty in online shopping: An integrated model of trust, user experience and branding.Computers in Human Behavior,61, pp.103-113. Blakeman, R., 2015.Advertising campaign design: Just the essentials. Routledge. Blakeman, R., 2018.Integrated marketing communication: creative strategy from idea to implementation. Rowman Littlefield. Bruwer, J. and McCutcheon, E., 2017. Marketing implications from a behaviourism perspective of consumption dynamics and socio-demographics of wine consumers.Asia Pacific Journal of Marketing and Logistics,29(3), pp.519-537. Chawansky, M., 2016. Be who you are and be proud: Brittney Griner, intersectional invisibility and digital possibilities for lesbian sporting celebrity.Leisure Studies,35(6), pp.771-782. East, R., Singh, J., Wright, M. and Vanhuele, M., 2016.Consumer behaviour: Applications in marketing. Sage. Egan, V., Hughes, N. and Palmer, E.J., 2015. Moral disengagement, the dark triad, and unethical consumer attitudes.Personality and Individual Differences,76, pp.123-128. GHALE, K., 2015. STUDY ON ADVERTISEMENT, PROMOTION AND SUPPLEMENTAL ASPECTS OF INTEGRATED MARKETING COMMUNICATION.Journal Impact Factor,6(1), pp.50-59. Han, O.W. and Yazdanifard, R., 2015. The Review of the Effectiveness of Celebrity Advertising that Influence Consumer s Perception and Buying Behavior.Global Journal of Management And Business Research. Huhmann, B.A., Franke, G.R. and Mothersbaugh, D.L., 2012. Print advertising: Executional factors and the RPB Grid.journal of Business Research,65(6), pp.849-854. Kerr, G. and Patti, C., 2015. Strategic IMC: From abstract concept to marketing management tool.Journal of Marketing Communications,21(5), pp.317-339. Maingi, S.W., Ondigi, A.N. and Wadawi, J.K., 2016. Market Profiling and Positioning of Park Brands in Kenya (Case of Premium and Under?Utilized Parks).International Journal of Tourism Research,18(1), pp.91-104. Natakusumah, Y.R.M., Nursiana, A. and Suryono, C., 2017. The Impact of Marketing Communication in Attracting Customer (Case Study at Fairmont Hotel Jakarta).TRJ Tourism Research Journal,1(1), pp.68-80. Ndlela, T. and Chuchu, T., 2016. Celebrity Endorsement Advertising: Brand Awareness, Brand Recall, Brand Loyalty as Antecedence of South African Young Consumers Purchase Behaviour.Journal of Economics and Behavioral Studies,8(2), pp.79-90. Ots, M. and Nyilasy, G., 2017. Just doing it: theorising integrated marketing communications (IMC) practices.European Journal of Marketing,51(3), pp.490-510. Percy, L., 2014.Strategic integrated marketing communications. Routledge. Percy, L., 2016.Strategic advertising management. Oxford University Press. Pescher, C., Reichhart, P. and Spann, M., 2014. Consumer decision-making processes in mobile viral marketing campaigns.Journal of interactive marketing,28(1), pp.43-54. Schade, M., Hegner, S., Horstmann, F. and Brinkmann, N., 2016. The impact of attitude functions on luxury brand consumption: An age-based group comparison.Journal of business research,69(1), pp.314-322. Sheth, J.N. and Sisodia, R.S., 2015.Does marketing need reform?: Fresh perspectives on the future. Routledge. Vernuccio, M. and Ceccotti, F., 2015. Strategic and organisational challenges in the integrated marketing communication paradigm shift: A holistic vision.European Management Journal,33(6), pp.438-449. Wang, S., Cavusoglu, H. and Deng, Z., 2016. Early mover advantage in e-commerce platforms with low entry barriers: The role of customer relationship management capabilities.Information Management,53(2), pp.197-206. Wigley, S.M., 2015. An Examination of Contemporary Celebrity Endorsement in Fashion.International Journal of Costume and Fashion,15(2), pp.1-17. Xie, K. and Lee, Y.J., 2015. Social media and brand purchase: Quantifying the effects of exposures to earned and owned social media activities in a two-stage decision making model.Journal of Management Information Systems,32(2), pp.204-238.

So Much to Tell You John Marsden Essay Example

So Much to Tell You John Marsden Essay So Much to Tell You by John Marsden, explores the struggle that the protagonist, Marina, endures along her journey to mental wholeness. Marina’s soul has been shattered due to a traumatic event, and being witness to a large amount of violence and hatred in her family. So Much To Tell You is rich in techniques that are used effectively to convey the idea of Marina’s struggle, and journey towards mental wholeness. Marina’s difficulty in achieving psychological completion is shown through the major technique, structural contrast. We follow Marina’s personal journey and her healing throughout the novel, and we watch as she develops from an introverted, mistrustful person into someone who is able to appropriately communicate with other individuals. Marina uses a tone of self-loathing to show us that she views herself as a â€Å"nutcase†, psycho† and â€Å"the freak of Warrington† who suffers from â€Å"anorexia of speech†. Marina is sent to Warrington Boarding School â€Å"to learn to speak again, because [her] mother can’t stand [her] silent presence at home†. At first Marina is isolated and detached from the rest of the school, shown through the retreat imagery of Marina as she â€Å"slinks along the walls and corridors†. As the novel progresses, Marina’s entries suggest that she is becoming more in touch with her peers, and â€Å"moving round the school more confidently†. Her visit to Mr Lindells house over the weekend is a very significant event in Marina’s transformation. Throughout the weekend she becomes more expressive, expressed through her tone of excitement in the phrase â€Å"it was good! We will write a custom essay sample on So Much to Tell You John Marsden specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on So Much to Tell You John Marsden specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on So Much to Tell You John Marsden specifically for you FOR ONLY $16.38 $13.9/page Hire Writer And they’re so nice! Nice, nice, nice†! Here, the use of exclamation and the repetition of the word, ‘nice’ emphasise Marina’s positive involvement in life. This is contrasted with Marina being a passive spectator during school tennis, and life in general. Towards the end of the novel Marina chooses on her own accord to return to Warrington, and reaches out to Mr Lindell to help her, a drastic change from the beginning of the novel where she didn’t interact with anyone at all. In the early stages of the novel, the struggle and difficulty of repairing Marina’s psyche due to damage and conflict within her family, and Marina’s journey towards mental health, is conveyed through the composer’s effective manipulation of fragmentation imagery. Perhaps the most prominent examples of fragmentation imagery would be Ann Maltin’s â€Å"spangled star doona cover†. Ann tells Marina the â€Å"the stars do fit together, but it took [her] years to figure it out†. This is a metaphor for Marina’s damaged psyche, and it foreshadows her psychological wholeness. Her psyche will fit together again; she just has to give it time to heal. Marina also explains the she likes ‘the word â€Å"coalesce†, though when [she] looks at it for a long time it seems strange and ugly†. This is how Marina views herself, a jumble of â€Å"strange and ugly† fragments that need to â€Å"coalesce† in order to become one healed psyche. She also writes about the way the pool is when there is nobody there â€Å"then the first girl jumps or dives in – and it all cracks†. This demonstrates how fragile Marina’s psyche is; it could shatter at any time. Ann Maltin also â€Å"had a ceramic piece†¦ on the cupboard beside her bed. It was a big bird, an eagle†. Whilst â€Å"vacuuming the dorm† Marina accidentally knocks the bird of its stand, and it promptly shatters on the floor. Even after Ann has glued it back together, she â€Å"can still see the cracks. [She] will always see them. This indicates that Marina will heal, but she will never be exactly the same person as she was before the incident, and she will always be scarred from the traumatic event. John Marsden has greatly emphasised the importance of Marina repairing her damaged psyche through the use of metaphors, foreshadowing, and fragmentation imagery. Symbolism and figurative devices are also used effectively by John Marsden to evoke the idea of Marina’s need for retreat or refuge from the difficulties of reality, prior to her significant journey to wholeness. For Marina, the chapel at her school symbolises a sanctuary. â€Å"Churches [are] safe places, where you [can] hide†, Marina sits by herself in her dark corner and writes in her journal, it is where she can think about her life, and her father. She feels protected in the chapel, and in the school generally too. This is shown through the use of similes in the phrase â€Å"in the hospital [she] felt exposed under the white light, here [she] feels like a black snail†. This contrasts between the white exposure of the hospital, and the black refuge of the school. Similes, retreat imagery, and symbolisation are used dextrously throughout So Much To Tell You to demonstrate Marina’s difficult journey to wholeness. John Marsden dextrously uses effective techniques throughout So Much To Tell You to explore the concept of struggle and wholeness, demonstrated by the protagonist, Marina. We learn about Marina’s personal struggle to become whole again after the tragic events that have occurred prior to the beginning of the novel. We see this through the contrast of Marina’s character between the beginning of the novel and the end of the novel, the extensive use of fragmentation imagery, and the retreat imagery, that is used to convey Marina’s struggle. We trace her traumatic personal journey, difficulties and mental healing throughout the novel, on an emotional rollercoaster that is Marina’s life.

Operating systems free essay sample

To achieve this they constantly push boundaries, define new standards and ensure continuous improvements in all parts of their business. The MIS can help further this goal by supplying the company with the relevant equipment needed to constancy improve themselves, MIS brings with it the ability to collect and even analyse certain data that may be relevant to the company’s aforementioned goals. An example of this would be data collected on customer feedback would be used to improve current product package whilst surveys done and analysed by the system could project the probability of new revenue sources, thus creating new line of product or services by the company. (Digi, unknown) The company has also set their mission as to deliver Internet for All as part of our commitment to building a connected Malaysia enabling access to Mobile Internet services and applications by offering customers the right combination of devices and value pricing, as well as the best usage experience (Digi, Unknown). We will write a custom essay sample on Operating systems or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page MIS helps this goal of Digi by allowing new hardware such as fibre optics and copper wires to be used not only by the company itself but also as a service that could be offered to the public, many internet connections are now using fibre optics as the medium because of its speed. The company’s MIS could help monitor these connections and the usage of each customer, so the company can better recommend a package to the consumer. Through MSI, companies can generate essential documents such as employee evaluations, financial reports, and other relevant business reports (unknown, unknown). Most listed companies publish their quarterly and annual financial reports on their website which is accessible to the public, this is not only in line with their obligations to publish such reports as a listed company but also to inform the public on the company’s financial wellbeing thus generating attracting more investors. It would also allow the management teams to evaluate performance of human resource and return on investments. A great example of this happening is when a company publish their quarterly or annual report, their stock price will either rise or lower according to the reports. Also in times of economic downturn, only the most consistent workers in the company will be kept, whereas those with low evaluations are the first to be laid off. The telecommunications industry being a service oriented industry relies heavily on its customers to generate revenue, being able to fix flaws and take into account customer feedback is very useful to the companies in this industry. The information gathered by the MIS can be used to gauge the company’s’ position or performance in the public eye; this could help the companies develop themselves further. This can be seen when companies markets or launch a new service or product, the package is usually tailored to fit the greatest amount of customers, as to guarantee the highest customer satisfaction. Therefore most of the packages offered by these companies are very similar in nature. However according to (Vitez, unknown), a disadvantage of the MIS is the ineffectiveness of it at times. MIS could be useful, but the system is only as good as its programmer and its users, a lack of knowledge or incompetent programmer may cause the MIS to reduce in effectiveness. A great example of a system error occurring with the MIS system is in Knight Capital – a mid-size financial firm. According to (Baumann, 2013) a code in the system had gone rogue before a trading day, when the opening bell was struck for the day, the company started losing $10 million a minute due to the system firing off trades, sources from within the company had predicted the company would become insolvent within an hour if the trades continued, the code was dug up within 45 minutes. However by then the damage was already done. This example shows that the MIS weakness is within the code itself. Implementing and modifications of a MIS is also a disadvantage because the expense is great, setting up and maintaining an effective MIS represents a significant portion of any companies expense, especially bigger organisations with many offices and spread out geographically, this leads to an even more expensive system to maintain. What more according to (Vitez, unknown), with new technological advances being made every day, upgrading hardware or even software for that matter will be a major expense to the company as well. In conclusion, there are both benefits and drawbacks to the MIS, it is entirely up to a manager as to how or whether or not he or she wants to implement or introduce such a system into the business. However as technology is advancing every day, the cost of setting up such systems are also decreasing with each step into the future. More and more companies are using advanced MIS to not only keep track of inventories and the like but also to project valuable proprietary information. Furthermore, as not all technological advances may be relevant to certain industries’’ MIS, it is also up to a manger whether or not to upgrade or modify existing systems. The main thing to take away is that the MIS is merely a tool, its ability is directly influenced by the person wielding the system, therefore as useful and important as a MIS is, certain jobs should never be automated.

Warm Fuzz Cards Case Essays

Warm Fuzz Cards Case Essays Warm Fuzz Cards Case Essay Warm Fuzz Cards Case Essay This case deals with the dilemma faced by Eric Mills who is the founder and CEO of Warm Fuzz Cards. She is the sole decision maker of the organization and currently is facing a problem with regards to deciding her business growth strategy. Eric is married to Craig and they decided to start a family within one year. She is therefore unsure whether to grow the business quickly or at a slower rate and therefore has to decide at this point which strategy to implement. Warm Fuzz Cards sole owner is Eric Mills who founded the organization with simply a laptop and a gifted card printer from a relative. Mills has always had a strong passion for art which she pursued at an early age and developed sales/ management expertise during her work in the medical field. Craig while having a Job as a human resource executive at a large firm also assisted Eric with assembly and in quality control. Currently, all the management functions are performed by Eric Mills which include accounting, finance, marketing and sales departments. The firms organization structure is fairly straightforward with Eric being the sole owner/ manager and Craig as quality control and assembly worker. The philosophy for Warm Fuzz Cards came from Ericas desire of having cards not only for occasions but Just to spread warmth and fuzziness. While Eric enjoys more control and considered a slow growth prospect, Craig on the other hand was a proponent of faster growth. This is perhaps the only conflict of objective existent within the firm as Craig obviously as a husband would play a major role in advisory. Warm Fuzz Cards current marketing and sales strategy is focused on building more relationships with retailers, exploring new opportunities in card industry and developing custom cards. Mills has a base of 150 retail customers across Canada. Most of her customers are small store owners and thus Mills maintains a strong personal relationship. Unlike most Mass card manufacturers, Mills also made card modifications and loved the feedback from customers to help her generate better ideas. Apart from this, Mills also identified an opportunity in custom card products such as wedding invitations and business cards. Mills used the internet as her promotional strategy by developing a website and using social media tools to promote her ideas, designs and products. The Corporate market was another customer that Mills identified as companies looked for custom cards for holidays, events etc. Most of the marketing for corporate clients was carried out through word of mouth. The design strategy and expertise of Mills is what separated her from the competition. There was a unique modern style to Ericas products and the focus on high quality and customer satisfaction set it apart from the rest. The production strategy for Mills focused on the type of customer and was extremely customer specific. Retail customers made really small orders and Eric used a Just-in-time model which enabled her to meet unique wants at low risk. She invested in a high quality printer to make small batches but this significantly increased her material costs as it would be cheaper to mass print. The rest of the stationery supplies were purchased from a local store for the lowest price available. Embellishments were bought from a local craft store. For custom card products, Mills currently had them in her office while larger orders were outsourced to a print house. Cost of this varied depending on the handwork, embellishment and size of order. So far the results for Eric are positive with monthly sales averaging $3,500 in 2008. Warm Fuzz Cards does not have a particular mission statement that defines its objectives. It is based on a philosophy to make people smile and gifting people cards for almost any or no occasion whatsoever. The pure purpose was to spread warmth and fuzziness. Mills clearly had a strong passion for card design and leading a business. Her openness to ideas, creative mind and graphic designing skills make her fulfill the philosophy in a perfect manner. Current customers as mentioned primarily include retail stores mostly small vendors, marriages and corporate clients. The custom card business accounts for 50% of the sales, while retail makes up the other 50%. She sold the cards to retailers for $2. 25 whilst material cost in office was $0. 50 per card. Mills labor cost is hard to estimate although she did withdraw a small salary from the monthly revenues. Custom cards however offered greater margins as wedding invitations were sold between $5-10 each whilst material cost was only $1 per card. Custom business cards also provided good revenue generation as corporate clients would place large and repeat orders. It appears that the custom radar business is more profitable than the retail business and offers a great opportunity for Warm Fuzz Cards to expand. The channel of communication used by Mills for her retail clients were mostly through personal telephone calls. In this way Mills was able to develop a more personal relationship and at the same time receive valuable feedback from the customers. In terms of custom cards, corporate clientele was communicated purely through word of mouth. For wedding invitations, Mills used online communication channels by creating a website, social media pages and free listings on websites. The firms pricing in comparison to its competition was fairly similar. Greeting card price range between $0. 50 to $10 in the market. Typical cards would have average price of $3 while other custom cards were sold for higher prices. In terms of the industry, annual card sales were estimated at $7. 5 billion. Warm Fuzz Cards sales for 2008 were a mere $42,000 which makes its market share insignificant. In terms of revenue generation, Warm Fuzz Cards revenue has grown from its previous year of operations. In 2007, annual sales were $24,000. This meaner that the percentage growth in revenue between the years 2007-2008 is 75%. It indicates the great potential the business has to grow even though its small nature. Cost structures based on 2008 sales would mean that $21,000 was revenue through retail stores while $21,000 from custom cards. This meaner that around 9,300 cards were sold through retail stores, which gives a material cost for the year of $4,600. This meaner gross profit would be around $16,400. It would be hard to estimate the profit generation from custom cards due to the varying price and cost structures. Overall due to low overhead, it would be safe to conclude that Warm Fuzz Cards is operating profitably. There was no financing required for the initial setup as Eric had a laptop and the printer was gifted by a relative. As everything was produced to order, there was no financing required for inventory and overhead costs were very low and included costs such as phone, internet, website etc. It is sold mostly in retail stationery stores. The greeting card market itself can be broken down into several segments such as seasonal and everyday cards, Occasions, custom cards etc. The industry is fairly large and likely to boom during strong economic periods. In terms of competition, major competitors included Hallmark and American Greeting brands with their overall market share being 85%. As need for convenience rose, more cards were sold at convenience chains and specialty stores were slowly getting eliminated from the marketplace. These two firms clearly dominate the card industry and can threaten to eliminate small businesses. E-cards were another significant competitor as use of electronic cards increased due to the availability of technology. Generally, firms in this type of industry compete with each other on innovation and ideas. High quality product and great service are other areas f competition due to the nature of the card industry. Warm Fuzz Cards measures perfectly to how most firms in the industry compete. It has the creative entrepreneur in Eric with great graphic designing skills and openness to ideas. Mills great passion for her work meaner she ensures quality in the product. Customer service is also of high priority with reruns being made if any issue arises. A SOOT analysis would provide us with a good indication of the current situation of Warm Fuzz Cards. The strengths associated with the business lies pretty much in the entrepreneur Eric Mills. Her passion for her work, experience in leadership, graphic design and sales skills make her the most important asset of the firm. Another strength is the favorable growing conditions of the greeting card market with an average of 11% growth between 2004 to 2006. Mills also possessed an extensive portfolio of designs which enabled creation of custom designs in a speedy and efficient manner. The Just in time production strategy is another strength of the firm as it does not lead to money tied up in the inventory and gives the business flexibility. In terms of weaknesses, we can identify several that Warm Fuzz Card faces. The firm has a market share thats insignificant which meaner it would be hard for Mills to gain any financing for expansion. The lack of enough staff is another weakness within the organization as Mills has too much tasks to handle. This would not help her to focus on the more strategic objectives of the business and would slow down the progress of growth. The other major weakness is the inability to produce large quantities which can lower costs significantly as well as enable the business to greaten its market share through greater revenue. Several opportunities can be identified for Warm Fuzz Cards. The first big opportunity is her Toronto retail connection that has nationwide stores selling cards and gifts. This would enable her to expand the business and take it to new heights. Another opportunity is the wedding invitation segment which yields a high profit margin for Mills. By investing more in this area, profitability can improve and she would be able to finance the growth of the company internally. Further, she could use her own sales skills and invest in trade shows/events to expand her client base. The threats faced by Warm Fuzz Cards include the heavy competition faced from industry leaders. Another wreath is the booming electronic card industry, which could make the traditional card industry obsolete. The fact that smaller specialty stores were closing down was biggest competitive edge Warm Fuzz Cards has is its entrepreneur who has the ability to create unique modern designs and who is passionate about her business. Eric Mills is considering several alternatives with regards to the current problem. She basically has to decide whether to partner with someone or seek for an investment/loan as the main issue was funding. She could grow the business slowly which would allow her greater control and flexibility. The other alternative would be to expand the retail aspect of the business by partnering with a large national chain of stores. This would greatly boost revenues and profitability as large orders would be required. However, this would require a significant investment in inventory. Another option was to hire staff in accounting and finance so that Mills could focus on other more important aspects of the business. Other possibilities were hiring a sales broker, marketing team or graphic designer. A sales broker would have a good network which would allow Mills to promote her business. However, since Warm Fuzz Cards might not get attention from a broker due to the small size of the business. Online campaign would enable her to focus on high margin wedding invitation cards which would boost profitability considerably. The recommended strategic option would be for Mills to grow her business. It would be better to get the business to a certain level before starting a family. Mills should therefore close the deal with the Toronto connection as this gives great revenue potential for her firm. An investment in inventory would be required since order sizes would be large. Mills would also have to hire someone for the financial and accounting side of business as well as quality control. This would increase costs but allows for mass production. In order to implement this plan, Mills should focus on getting a loan from a bank or an angel investor. By using her sales skills, she should then seal the deal with the Toronto connection. The cash should then be invested into inventory and employing of staff. Mills should then take charge of sales, marketing and strategy of the business whilst employing staff for accounting, finance and production.

ECON160 Research Paper Example | Topics and Well Written Essays - 1250 words

ECON160 - Research Paper Example Moreover, free market system promotes fairness in the society by threatening dictatorial rule. Part 1 Free market policies that threaten dictatorial governments Governments around the globe prefer the free market system because of the advantages that arise upon use. Indeed, the system encourages entrepreneurship and healthy competition. In dictatorial States, the system poses threat to governments. According to Cobin (16), free market leads to economic growth and the development of democratic empires. In China, the system has been fundamental in strengthening democracy. The rise in private wealth acquisition in China is attributable to the free market system. For instance, the system promotes democracy in China. Free market system discourages dictatorship in several instances making the system preferable in developed democracies. According to Wehner and Brooks (37), the use of free trade policies limits State’s monopoly. As such, the system denies government the monopoly of ma king trade policies on behalf of the citizens. Governments using the system consult citizens when making trade policies. Wehner and Brooks (24) add that free market system enhances fairness in employments. Moreover, government listens to public opinion when making national budget in free market systems. Dictatorial governments find it hard to embrace the free market system because it encourages citizens to take part in planning. In free markets, the public helps the government in planning for activities that affect trade. For instance, citizens vote when choosing their leaders, yet voting is against the principles of dictatorship. Moreover, people make decisions through consensus in free trade (Kates 7). Citizens prefer the use free trade policies because the policies advocates for fairness in trade. Free market system advocates for the use of monetary policies in restructuring economies. This is only achievable in the presence of democracy. The economy encourages dialogue during pl anning. This makes it difficult for a government to embrace dictatorship (Wehner and Brooks 27). There is a direct connection between economy and politics making governments listen to the views of masses when devising trade policies. A majority of the countries that have adopted free market economic system are not dictatorial. This is an indication that free market system discourages dictatorship. Policies that prohibit the government against setting prices for commodities are helpful in promoting democracy. In free market economies, market forces control the activities of the market. According to Cobin (151), governments intervene only when the country faces crisis. Additionally, a free market encourages the poor to exploit the rich because they control dictatorial governments. When the poor have the capacity to develop, they become a threat to the government. In free markets, people champion their rights through voting; hence, the poor in the country have the capability to elect o ne of their own to a leadership position. 2 China’s economy According to Richard McGregor, China’s economy is both a free market and communist economy. It is a free market because leadership has embraced liberalization of trade. For example, individuals have built their own business empires from trade. In China, the communist party encourages ownership of properties by individuals. The