Impact of Trade on East Asia and South Asia Essay Example for Free

Impact of Trade on East Asia and South Asia Essay East Asia and South Asia was similar in that it promoted economic development in both regions and transformed port cities of both regions into cosmopolitan centers, but differed in that it helped with the establishment of Buddhism in China while it helped with the establishment of Islam in India. The impact of trade on East Asia and South Asia was similar in that it promoted economic development in both regions. In East Asia, the Grand Canal, a series of connected waterways, linked together north and south China. As northern and southern China traded rice and other food crops, the larger economy of China improved and grew. In South Asia, northern and southern India traded spices, metals, and specialized crops that were not available throughout India. As northern and southern India traded, the south prospered and experienced a surge in economic development. Trade promoted economic development in both East Asia and South Asia because they both traded within their region and outside of it, obtaining profit and wealth, along with goods. The impact of trade on East Asia and South Asia was similar in that it transformed port cities of both regions into cosmopolitan centers. As China traded, Arab, Persian, and Malay merchants settled within its region. The merchants settled in port cities, such as Guangzhou and Quanzhou, which turned into cosmopolitan centers. As India traded, Muslim, Jewish, and other merchants began to dwell within the subcontinent. The brokers became residents at port cities, such as Calicut, which developed into cosmopolitan societies. Trade transformed port cities in both East Asia and South Asia into cosmopolitan centers because they both had thriving commercial centers where merchants moved to in search of business opportunities. The impact of trade on East Asia and South Asia differed in that it helped with the establishment of Buddhism in China while it helped with the establishment of Islam in India. Buddhism diffused into China along trade routes. Merchants set up Buddhist communities in China, such as Dunhuang, helping it gain a foothold in society. Islam spread into India as merchants traded and settled in the region. As they settled in cities, such as Cambay, they spread Islam into Indian society. Trade helped with the establishment of Buddhism in China, but helped with Islam in India because Muslim merchants traveled to South Asia due to its trade centers and relative proximity, while Buddhist merchants traveled to East Asia in search of trade opportunities outside of India. From 600 to 1450 CE, the influence of trade on East Asia and South Asia was similar in that it encouraged economic growth in both areas and helped with the development of port cities into cosmopolitan centers in both regions, but differed in that it promoted the establishment of Buddhism in China while it promoted the establishment of Islam in India.

Advantages And Disadvantages Of Design And Build Method Construction Essay

Advantages And Disadvantages Of Design And Build Method Construction Essay While construction contracts serves as a means of pricing construction, they also structure the allocation of risk to the various parties involved. The construction field is a very extensive and unique in each project. In this world most of the projects are managed by contracts. And as a principle to manage the project effectively we should first manage the contracts. The owner has the sole power to decide what type of contract delivery method should be used for a specific facility to be constructed and to set forth the terms in a contractual agreement. A firm has to choose the right delivery method which is project to project base and present its bid offer to the engineer/client during tendering stage to enable it to present competitive price and win the project without compromising the functional and the quality of the project. Choosing the right method to deliver the project will ease the project execution and give flexibility during construction as well as saving money and time for a firm and subsequently the same to the owner. It is important to understand the risks of the contractors associated with different type of delivery methods. In this instant you may ask what the contract delivery methods are and we should choose the right delivery methods. Projects delivery methods. There are three types of project delivery methods. In this section we will concentrate on design and Build because it s the best method for small and medium projects. 1- Tender or design-bid-build method In this type the owner/client will choose engineer to design the whole project and get the Approvals from authorities then floating tender to choose suitable contractor for the Construction under his supervision. In this type of method the client /engineer has full control of the project and the contractor has to comply with full design given by the engineer. Most suitable type of contract for this method is lump sum contract which the price given by the Contractor is fixed and the whole project is already designed and the scope of work is clear and fully detailed. 2-indefinite quantity contract method Under this type of contract there shall be no design and it is based on maintenance or repairing projects. Under this agreement the owner and the contractor will upfront set up prices for the labors and Equipments and markup etc 3- Design and build method. The term design-build refers to a range of alternatives to the traditional project delivery system. A useful way to look at design-build is by what it is not. Traditional design-bid-build is a segmented, sequential process in which the owner first contracts With a design professional to prepare detailed, suitable-for-construction plans and specifications (or Sometimes has them prepared by its in-house engineers), then uses the detailed plans and Specifications to solicit competitive bids for construction, and finally awards the construction Contract to the low bidder. Design-build means a procurement process in which both the design and construction of A project is procured from a single contractor. Usually, the design-build contract is awarded by some process other than competitive bidding Providing the best value (in price, features, functions [and] life-cycle costs) Thus, design-build differs from traditional design-bid-build in two ways. First, the design and construction components are packaged into a single contract. Second, the single contract is not necessarily awarded to the low bidder after competitive bidding I-Why Design-Build? (Advantages) Potential Cost Savings Design-build has the potential to reduce over-all project cost because the design-build contractor performing the design has a better feel for the construction cost of various alternatives, Thus can come up with a design that is less expensive to build and has an incentive to do so. Another way to look at this advantage is that it moves value engineering cost reduction incentive After contract award (with the contractor proposing cost-reduction ideas and sharing the savings with the owner) to pre-award (with the owner enjoying most of the cost savings). B. Earlier Project Completion Design-build may result in earlier completion and occupancy of the project because there is no Dead time between completion of design and start of construction. Further, the design-build Contractor can begin construction of early phases of the project (e.g. mobilization, site utilities, Foundations) before design of later phases (building envelope, interior partitions, HVAC, electrical) Is 100 percent complete? This process sometimes is referred to as fast track. C. Reduced Claims Exposure Design-build eliminates the liability gap. Design professionals can obtain insurance coverage only for negligent errors and omissions, and virtually all design contracts limit the designers liability to such. However, there can be non-negligent errors and omissions, which cost the owner money but for which the design professional is not liable. For example, a design professional may undertake Reasonable subsurface investigations but fail to detect a rock outcropping that will require additional work. In the traditional design-bid-build approach, the owner warrants the correctness of the plans and Specifications to the construction contractor. There can be design mistakes for which the owner is liable to the construction contractor under the Warranty of correctness but cannot transfer the liability on to the design professional. Even when the designer is in fact negligent, proving negligence can be difficult. The owner must obtain a certificate of merit from another design professional and then prove that the designer failed to meet the applicable professional standard of care, which requires expert testimony. On the other hand, the contractor usually can prove there was a defect in the plans that cost the Contractor money based on fact testimony alone. Thus, the owner may have to bear the cost. Design- build eliminates this gap because the design-bid build entity has no one but itself to blame For defective plans and specifications or differing site conditions. D. New Technologies Public Contracts usually prohibits brand-name or model-number specifications unless the Specification lists at least two brand names and is followed by the phrase or equal. This makes it difficult for traditional design-bid-build to reach innovative, proprietary Products where there may be only one brand-name and no equal. Further, substitution of a new or equal product for a standard product often is impracticable Because of the ripple effect. The designer designs the project around current generation Products and substitution of new or equal products after bidding can require revisions to structure, mechanical or electrical components to accommodate the new product. Who is going to pay for these ripple changes? Design-build resolves this problem. The design-build contractor selects the equipment (right down to make and model number) and Then designs the building around the selected equipment, which is a more logical way to proceed. In fact, the design-build contractor can sometimes obtain free design assistance from equipment Manufacturers desiring that their new technologies be used. E. Over-All Project Optimization Design-bid-build can suffer from sub-optimization when individual project participants optimize their own positions, often at the expense of the over-all project. The total cost to the owner of a building element, such as the steel frame, includes the cost of the engineering to determine the required steel sections plus the cost of the steel. The designer has little incentive to use a sharp pencil to achieve the minimum amount of Structural steel; he optimizes his own position by spending only the design time necessary to Ensure that there is enough steel to meet gravity and seismic loads, often by employing Conservative assumptions that may result in more steel than necessary. So, the owner may save money on design but pay for it in steel. With design-build, on the other hand, the design-build entity has an incentive to use the Optimum amount of engineering. As long as an additional dollar of engineering will save more than one dollars worth of steel, the design-build contractor will spend the engineering time up To the point of diminishing returns when an additional dollars worth of engineering saves only a Dollar s worth of steel because both the cost of design and the cost of steel come out of the same pocket. This is not to say that design-build results in flimsy or less-safe structures. More (steel, concrete, etc.) is not necessarily better. Simply specifying extra steel or concrete in one place because the engineer does not have the time or incentive to calculate exactly how much is actually required does not improve the over-all performance of the building. A chain is only as strong as its weakest link. If the owner wants a building with higher floor Loadings, less floor deflection or resistance to a bigger earthquake than required by code, then The way to achieve this is by placing that requirement on the design-build entity up front not by Hoping that the designer will throw in some extra steel or concrete because he or she does not have time in the budget to use a sharp pencil. F.Reduced Administrative Burden Design-build may reduce the administrative burden on the owner because there is one solicitation, one award and one contract to administer. G. Earlier Cost Visibility The total cost of the project is apparent earlier with design-build. In traditional design-bid-build, Construction costs are not known until bid opening, and it is possible to spend money on a design that the agency cannot afford to build. All too often, construction bids exceed the budget, and the Project must be re-designed to bring it within the budget, thus delaying completion. H. Agency CM with Multi-Prime Contracts One of the advantages of design-build can be achieved by a construction management (CM) to Manage design and over-all project coordination and then contracting directly with several contractors, which are then managed by the CM. Construction project management s services provided by a licensed architect, registered engineer, or licensed general contractor. Under this approach, the early phases of the project (earthwork, site utilities, and foundations) can be placed under contract before design of the building shell and interior is 100 percent complete, and the structural steel and other long lead-time components can be ordered. Then, the contracts for the early phases can be awarded to follow-on contractors. There are two types of construction managers. An agency CM is a consultant to the owner; an agency CM is not in the chain of privity between The owner and the contractor(s) and does not guarantee the cost of the work. An at-risk CM, on the other hand, essentially is a brokering general contractor. The at-risk CM is either in the chain of privity between the owner and the trade contractors or Guarantees that the aggregate price of the contracts will not exceed some maximum figure. Any individual or firm proposing to provide construction project management services shall provide Evidence that the individual or firm and its personnel carrying out onsite responsibilities have Expertise and experience in construction project design review and evaluation, construction Mobilization and supervision, bid evaluation, project scheduling, cost-benefit analysis, claims Review and negotiation, and general management and administration of a construction project. Which type of contract is better for design-build? Most suitable type of contracts is lump sum contract because the owner has essentially assigned all the risks to the contractor, who in turn can be expected to ask for a higher markup in order to take Care of unforeseen contingencies. Beside the fixed lump sum price, other commitments are often made by the contractor in the form of submittals such as a specific schedule, the management reporting system or a quality control Program. If the actual cost of the project is underestimated, the underestimated cost will reduce the Contractor s profit by that amount. An overestimate has an opposite effect, but may reduce the Chance of being a low bidder for the project. The scope of work, the price, the time of performance is already defined. Usually the contractors include allowance for contingencies in their bid price so the price Small and medium projects are most suitable for this kind of project where is the design is easy not Complicated and can be managed by one party. II-disadvantages The potential advantages of design-build do not come without risk. A. Less Control. Under traditional design-bid-build, the owner has full control over the details of the plans and Specifications and does not publish them for bids until it is satisfied that they reflect its Requirements, including functional and aesthetic preferences. With design-build, the owner gives up some of this control. i.e., advancing the level of design through the design development stage (30 percent or so) before award of the design-build contract. Of course, by doing so the owner may give up some of the advantages of design-build. B. Need for Earlier Requirements Definition With design-build, the owner must lock in its requirements much earlier. With traditional design-bid-build, if the owner is a little fuzzy on its functional or aesthetic Requirements, it can clarify them during the design phase after if sees where the designer is heading. But with design-bid-build, post-award programmatic changes can be very expensive and disruptive. C. Recommendation So, if the city (country) rules are not certain what it wants, traditional design-bid-build may be the better alternative. D. Compliance with Subcontractors The Subletting and Subcontracting Fair Practices Act, requires that bidders list their subcontractors with their bids. This can be a problem for a design-build bidder. Without detailed design drawings, the subcontractors cannot precisely estimate costs. But, listing a subcontractor without a firm subcontract price puts the design-build contractor at a disadvantage in subsequently pricing the subcontract work. A listed subcontractor has the prime design-build contractor over the proverbial barrel. This is a manageable problem for a design-build contractor with many of the same type of projects in an Area, as a subcontractor can only get away with gouging the design-build entity once. Parking garages and housing are good examples of where the design-build entities work with a group of subcontractors on a repetitive basis, and subcontractors can estimate their work on a perspace. or.pre-square.foot.basis. Design-build contractor shall search for competitive bids for subcontracts not listed with its prime bid. The problem with this approach is that it depends on specific legislative authorizations that do not apply to the country. Thus, the safest approach may be to require listing of subcontractors at time of bid, even though this may result in either the subcontractors or the prime design-build entity including some contingency and mark-up. E. Payment bonds Generally it is required a payment bond payable by the terms of the contract. However, when the design services and the construction are procured under a single contract, must the payment bond be in the full amount of the design-build contract or only in the amount of the Construction portion? Logically, it would seem that 100 percent of the construction portion would fulfil the intent of the statute.

Managing Globalization at Sony

Managing Globalization at Sony Executive Summary As a consequence of economic liberalization, free trade is rapidly becoming a reality within regional blocks, such as the EU, NAFTA, ASEAN, and Mercosur. Furthermore, the World Trade Organization is continuously reducing the remaining barriers to the free flow of capital, goods, services, and technology among countries and regional blocks. The barriers to trade and investment among countries continue to decline rapidly and are making globalization increasingly more feasible and less expensive. Secondly, technological advances continue their onward march. There has been a sharp decline in the costs of air transportation, telecommunication, and computers since 1950. The decline in transportation costs has radically shrunk the cost of shipping goods across countries. These developments in information technology have dramatically reduced the operative distance between companies, their customers, and their suppliers and made coordination of far-flung operations not only more feasible but also more reliable and efficient. Owing to the development of the global economy, most of the firms are now expanding their operations across nations. Companies are not only located in their home countries, but the production centers, warehouses, distribution centers are also built up in different countries as well. This has been done increasingly to reap the benefits of cost and advantageous resources. This research mainly focuses on certain important strategies adopted by multinational enterprises. These strategic areas of discussion are strategy for globalization, achieving global coordination and operations, building global RD networks and improving corporate governance. The main focus will be on strategies adopted for the mentioned key issues by two multinationals: SONY and SAMSUNG. A qualitative research of these two companies is undertaken and a comparison of the strategies adopted for various key issues has been made in this paper. 1 INTRODUCTION 1.1 Research Background and Motives In its simplest form, strategy is about getting from A to B as cost-effectively as possible. Implicit in this process are: assessing a firm’s existing situation (A), both external and internal; clarifying strategic objectives (B) and the opportunities they encompass; and determining the pathway of long-term activities (strategies) that most effectively lead from A to B. The strategic pathway must reflect not only the changing environment, but also changes called for in a firm’s capabilities. As such, strategy necessarily combines both internal and external aspects of a firm. When the environment is complex and at times volatile, as is true for the global economy, these two aspects are continuously in play and shaping each other. Firms vary considerably in the motivations and paths that guide them toward their global agendas. They begin at different points in their development, pursue different visions, and operate under different industry conditions. Firms also have a broad choice of the strategic path they take to achieve their global agendas. Some firms in the medical, biotech, and computer software fields may be viewed as â€Å"born global,† because their products have immediate widespread acceptance in an identifiable market niche around the world. But even then, like most firms, they must traverse one or more of three broadly different paths to globalize their operations-through growth, extension, or transformation. Thus, it is the foreign entry strategy that decides the mode of expanding business across nations. The research paper will focus on these strategies as adopted by Sony along with the strategy adopted for global coordination, global RD networks and corporate governance. These strategies of Sony will be compared with those of Samsung to present a contrasting image between the two companies. 1.2 Research Methods The purpose of qualitative research methods is to discover and explain the actual business phenomenon of operations, and CASE STUDY is one of the most popular methods of conducting such a research. This research is mainly focused on two multinational enterprises-SONY and SAMSUNG and the strategies adopted by these firms to enter foreign markets, strategies for attaining coordination in global operations and corporate governance strategies. In order to understand the strategies adopted by these two enterprises is studies. These sources include publications, annual reports and public release of case study companies and a case study provided on globalization of Sony Corporation. Afterwards, the data and information among these corporations will be compared and analyzed. Finally, the results of the case study will be tested and verified with the literature and certain recommendations for further strategies to be followed will be provided.Certain important concepts will be considered whi le making the analysis. These concepts are Multinational Enterprise, Globalization, Corporate Governance and Competitive advantage. The purpose of this research is to explore various strategies adopted while going global and for managing global operations efficiently. The research will aim at discussing and comparing two multinational companies Sony and Samsung on issues relevant to global operations of any organization. The research will also analyze the impact of current economic crisis on the global strategies adopted by companies. While analyzing such impact special consideration will be given to the views of Rhodes and Stetler provided in an article Seize the Advantage in a Downturn, Harvard Business Review (2009) 2 MANAGING A GLOBAL CORPORATION: SONY Sony is uniquely characterized with its relatively outgoing nature, flambount leadership and global mindset of its top executives. The company was founded on May 7, 1946, in Japan under the name of Tokyo Tsushin Kogyo. In 1958, the company changed its name officially to Sony Corporation. Its major products include Audio, Video, Televisions, Information and Communication, Semiconductors and Electronic Components. Sony was the first Japanese company to set up manufacturing facilities in the U.S. In 1980s Sony decided to diversify beyond consumer electronic goods and began to move production to other countries. Various strategies adopted by Sony while globalizing its operations are discussed in following topics. 2.1 Going Global In 1980s Japan had an image of a producer of poor quality goods. When Sony decided to go global the very first decision taken by Morita, (then chairman of Sony Corporation) was to change the companys name from a Japanese name to Sony, which was a combination of a Latin word sonus meaning sound, and a British word sonny meaning, little man. Sony initiated in its global operations in a properly planned way and used Transnational-market strategy to go global. Instead of just starting off the operations in all major countries, the company emphasized on setting up operations in one particular region at a time. For globalizing its operations, Sony followed a approach to understand the market and learn to sell before making any heavy investments. The very first effort towards globalization was setting up of a sales subsidiary in U.S. This was done in 1960 and a decision to set up a manufacturing unit was taken up only in 1971 when the company became well aware of the market trends and consumers choice in U.S. Also Morita decided to stay in America so as to understand the mentality and consumer behavior of the market. Such a bold decision helped Sony to better place its products in U.S. markets. Next market which Sony decided to tap was Europe. In order to be successful in European markets, Sony decided to customize its products as per the consumers choice. Sony had to design a Television set that would accept any of the four prevailing standards of Europe. Although, there was strong resistance for Sonys designs in European markets, company totally refused to leave its philosophy of being different and not an imitator. In London also company followed the policy of starting with only sales office and that too on a small scale. This helped the company to deeply analyze and understand the market the consumer choice before going for great investments in the country. In Germany Sonys strategy was to concentrate on projecting an image of quality. It started selling its product sonly through some best electronic shops and this created a strong awareness about the products of the company. However, to sustain in German markets, Sony continued to persist with its expensive, high quality image even after gaining a considerable awareness and flow of orders. Another challenge which Sony faced while globalizing was expanding operations in several Scandinavian countries. Here Sony first appointed local competing manufacturers, as its agents to enter the market. These manufacturers were those enjoying a good reputation in market and had strong sales capabilities. A worldwide economic recession of 1981-82 acted as a dampener on Sonys sales. At this time a new strategy of setting up Strategic Business Units (SBU) was undertaken so as to manage operations on global basis. 2.2 Building a Global RD Network Sony had developed several breakthrough products since its inception in 1946. The company had always followed the strategy of identifying customer needs and developing products to satisfy those needs and also which can stand the ever-changing market trends. Sony has several RD labs established in different parts of the world. These labs participate in annual meetings every year so as to set priorities and promote collaboration among different regions. The company looked at RD facilities as a means to tap foreign technology, provide technological support to foreign plants and to modify products to suit the needs of overseas markets. The global RD network is controlled centrally by CTO at the Japanese headquarters of the company and the system represents a Matrix system. The RD offices of US and Europe have CTOs who coordinates their own regional RD activities and formulate regional technology strategies. However, overseas labs are given sufficient autonomy to plan and implement their projects and local labs are managed by local subsidiary and also by the CTO. Sony aims at non-duplication of research activities across the system and for this company organizes Annual Technology Exchange Convention where executives from all over the world are able to exchange information and appreciate companys research capabilities. 2.3 Global Coordination Sony used decentralization and delegation in managing its global operations. The need for a good communication between Japanese headquarters and local businesses was also realized. To foster this Sony emphasized on relating its marketing groups with engineering, manufacturing and other headquarter functions. Also, product divisions were allotted the responsibility of participating in design, promotion and advertising along with distribution and various operational issues. Sony does have separate business units with independent management committees but all these are linked with headquarters to ensure coordination and cooperation in various functions. Along with a fair deal of decentralization of functions Sony established a Strategic Group Headquarters to oversee group operations and allocate resources efficiently. Also, there is an integration of design, production, customer service and logistics functions of factories to streamline supply chain management. Through greater use of i nformation technology Sony aims at coordinating administrative, sales and marketing operations of Japan, U.S and Europe. The strategy is to provide a wide range of authority to business units, but with the retention of the cohesive power of headquarters. The goal of this strategy is to create an environment of strong leadership of top management and increased corporate worth. 2.4 Corporate Governance While designing a corporate governance system at Sony, it was aimed that the ability of Board to oversee operations be strengthened. Proper care was taken for delegation of greater authority and responsibility for the extension of business activities and company planned to adopt the Company with Committees system. Such a system comprised of three committees each of which consists of a majority of outside directors. The appointment of outside directors ensures greater soundness, transparency and speed in corporate governance matters. The strategy here is was recognize the importance of a management system that believes in importance of shareholders of the company. The base of such a system of corporate governance is considered to be the innovation of Board of Directors of the company. 3 COMPARISON OF SONYS STRATEGIES WITH THAT OF SAMSUNG. Samsung was founded by Lee Byung-Chull as a small trading company in 1938. Today Samsung Group is a multinational conglomerate headquartered in Samsung Town, Seoul, South Korea. The globalization efforts started in Samsung in late 1980s. When Samsung decided to go global the main problem which aroused was companys image of being bargain junk. CEO and management personnel of the company travelled to the US to understand the market and realized that there is a strong need to change this perception about Samsung. Like Sony, Samsung also started with setting up of sales subsidiaries mainly in developed countries but unlike Sony, Samsung did not emphasized in tapping one country at a time. Rather Samsung started with its global operations in 1980s with setting up of production facilities in Southeast Asia and Eastern Europe with an aim of gaining the benefits from roundabout export. Samsung also took the path of mergers and acquisitions to go global during the initial years of globalizati on. This was not the case with Sony which entered new markets independently to acquire new markets with its existing competencies and image. Despite of a strong resistance for its products design in European markets, Sony refused to compromise on companys corporate philosophy. However in 1990s Samsung did follow th strategies that included manufacturing components for better known global brands and selling copycat products of microwaves or televisions such as Sanyo to consumers. On the part of Global Coordination, Sony followed a policy of decentralization along with a tight control from headquarters so as to ensure proper functioning, accountability, transparency, cooperation and increased corporate worth. At Samsung, global operations are managed region wise. U.S market is considered as a centre for local marketing and introduction of new technologies whereas Mexico is the base for roundabout export. While Southeast Asia and Europe are the production sites, Japan is the new export market centre for introducing new technologies and China is the second most fundamental market. All these markets are given adequate authority to perform their individual functions but are closely linked with each other as well as with Global Strategy Control Headquarters in Korea. There is an exchange of technology between US and Mexico where low to medium class products are manufactured. Also there is a supply of products from Europe to U.S and of product design and new develo pments from U.S to Europe. At the same time there is a constant flow of information regarding RD initiatives, and high value-added products from the headquarters to these global business units. Thus, there is a coordination of operations among all the markets which are working as per their specializations. Sony has set up several RD units in various different countries to absorb the customers expectations from all the markets and convert this information into new innovative products to suit the needs of each specific market and its customers. Samsung also invested heavily on RD and applied the concept of innovation within the organization. According to Steers, Richard (1997) Innovation for Samsung means, develop through globalization to globalize Samsung. However, Samsung adopted a strategy to make each and every staff member of the organization capable enough to innovate. Ungson, Gerardo (1997) explained that a review of Samsungs operations from 1990 to 1992 demonstrated the need to train employees as international experts, to manage difficulties, experienced with foreign local employees, and to recruit excellent employees. Company created an atmosphere that can make each employee confident to create innovation. For this Samsung revised the concept of Samsung man that emphasized on the creative individual who is characterized with a wide view and high moral standards. Samsung recruited qualified people and there were a third of companys directors aged in 40 years or younger. The company aimed at getting people with good vision about future and considered human capital as the most important element for a successful innovation leading to efficient globalization. On account of corporate Governance, Sony has a clear structure consisting of board of directors which are mainly from external sources of the company. In Samsung there is a cross shareholdings pattern representing a web of dubious cross-shareholdings among scholars, bureaucrats and NGOs. Chairman of the company, Lee Kun-hee and his family maintain a control over the group. The Samsung Everland, Samsung Life insurance, Samsung Electronics and Samsung Card are the main pillars to sustain corporate governance structure and form a ring of shareholdings in the company and exhibit an intricately entangled shareholding system. 4 CURRENT ECONOMIC CRISIS AND GLOBAL STRATEGIES In the words of Landefeld, J.Steven (2009) Globalization is an economic process that has been going on since the earliest days of trade and investment across regions and countries. It has helped in significantly raising the standards of living, health and improvement in environment through a rise in world-wide production and income. As it is always believed that globalization is largely driven by economic gain; a common question during the situations of economic crisis is whether a company should focus on its current geographies rather than venture into expanding its global operations. In current financial crisis it has been seen that markets are good at pricing marginal risks so as to achieve short-term gains. However, Landefeld (2009) argued that markets are not good in evaluating bubbles and long-term systematic risk. The current financial crisis definitely affects the global strategies of companies. Most of the companies view the global economic downturn as the biggest challenge partnerships to be dealt with. Also, most of the agencies report that their corporate partners are finding it difficult to initiate new partnerships in current economic crisis. Despite such difficulties the current economic crisis has a positive side-effect also. It provides an opportunity of an extra incentive for finding more and more creative ways of partnerships and global engagements. The crisis also has a positive effect of encouraging innovation. According to Rhodes, D., and Stelter, D., 2009, Seize the Advantage in a Downturn, Harvard Business Review, Inaction is the riskiest response to the uncertainties of an economic crisis. But rash or scattershot action can be nearly damaging. In the above mentioned article Rhodes pointed out that a planned approach towards global strategies need to be followed in times of economic crisis. The very first step in this approach is that the company should assess its own vulnerabilities, at the company level and by business unit. Company should be aware of various ways in which the current scenario can affect its business in terms of reduced demand for its products, companys ability to secure short-term financing, effect on cost of capital, etc. Once such affects are known the impact can be quantified to closely assess the exposure. Then it is possible to determine the ways to reduce the exposure and survive and maximize the companys performance during the downturn. Dr, Suder, Gabriele, Professor of International Business at CERAM Business School, France clarifies that while the reduction-of-cost argument is one of the main motivations for internationalization in times of crisis, when it comes to location decisions, decision-makers will always also opt for convenient labor conditions, market opener effects and access to resources not obtainable elsewhere. Therefore, a crisis as we know it today is unlikely to alter internationalization strategies, and it shouldnt. Simply because this would alter the firms strength. Rhodes explained that a company can capitalize on the opportunities presented by a recession. There is a need to assess and minimize the vulnerability of ones firm. This will position a company to seize future resources of competitive advantage, whether through bold investments in product development or transformative acquisitions. As per the plan suggested by Rhodes, liquidity is considered as the key to survive any economic crisis. A company should monitor and maximize its cash position. This can be done through tightly managing customer credit and aggressively managing working capital. Also, there is a need to optimize ones financial structure by reducing debt and other liabilities and securing access to lines of credit. Further, there is a need to inform investors and analysts about the companys recession preparedness. This will help in maintaining a strong share price for the company. A company should reduce costs and increase efficiency during economic crisis. This is to be done through rooting out long-standing activities, centralize key functions, and analyze current suppliers and reviving earlier efficiency initiatives to implement them fully in better times. Next level is to revitalize customer retention initiatives during recession. There is a need to realign sales force utilization and incentives, reallocate marketing spending towards immediate revenue generation, and consider more-generous financial terms for customers. Also, during recession a company should reconsider its product mix and pricing strategies so as to offer lower-price versions of existing products, considering creative strategies such as result-based or subscription pricing, etc. Naim, Moises (2009) Globalization cannot be derailed by the world financial crisis until and unless we believe that globalization is mainly about international trade and investment. James (2009) argued that present economic crisis is temporary and globalization will continue and the entire world is tied up due to increase in volume of business. Through a proper mechanism a company can very well expand during recession also. The best companies make an extra effort to not only survive in downturn but position themselves to thrive during subsequent upturn. A company should consider the fact that investments made today in areas such as product development and technology will give good results only once the recession is past. The cost of such initiatives will be lower during recession and will give huge benefits in times of growth. Also, an economic crisis like that of today is good time to invest in human capital also. Downturns can also be viewed as an opportunity to rethink the business models. More and more analysts and practitioners are emphasizing on recognizing the importance of sustainable business practices, comprehensive risk-management, long-term performance and ethics. The current economic crisis has lead to recognition of Corporate Social Responsibility in every organization. This crisis has lead companies to pay more attention on environmental, social and governance issues which have a positive effect on companys performance and long-term corporate value. Also, financial investors have learned to consider these key issues while making any investment decisions. Steets, Julia (2009) argued that the global economic crisis will most likely not have a negative impact on business partnerships. In the words of Thomsen, Kristina (2009) While the crisis leads to a reduction of philanthropic giving, it also triggers innovative partnerships and may have a cathartic effect on more conventional ones, eliminating those that would not have been sustainable anyway. Thus, compan ies adopting a comprehensive approach towards handling economic crisis can be better placed and be able to seize the opportunities emerging from the turbulence and will also be able to head start on the competition once the crisis is over. CONCLUSION AND RECOMMENDATIONS From the above discussion it can be concluded that current financial downturn supports the recognition of sustainable business practices for long-term success of an organization and its businesses. At a time when global competition is intensifying, Sony and Samsung, using different set of strategies, remain internationally competitive. Sony has continued to supply innovative products all over the world. On the other hand Samsung has emphasized on process enrichment and innovation along with good RD investment. Samsung has concentrated on its core competency of manufacturing. Despite their different approached towards globalization and various other key issues related with the concept, both Sony and Samsung have successfully met the challenges of global competition. Sony has been characterized with an unrelated diversification. Samsung is focused on its core competency of manufacturing but Sony seems to have stuck up in multiple businesses and such unrelated businesses can be more detrimental rather than being helpful for the company. It is recommended for Sony to regain focus and investing in enhancing the companys core competencies. Further to survive competition from firms like Samsung and LG, the top management teams at Sony should evaluate the identity of the Sony brand to its customers and adopt a brand oriented leadership. These steps are necessary to rejuvenate Sony in the long run. REFERENCES Caves R.E. (1986), Multinational enterprise and economic analysis, Cambridge University Press, pp.1-30 Dunning J.H. (1993), Multinational Enterprises and the Global Economy, Addision-Wesley Publishing Lindsay M. (1992), Developing Capital Markets in Eastern Europe-A Business Reference, New York University Press Landefeld, J.Steven (2009), Un High- Level Forum on Globalization and Global Crisis: The Role of Official Statistics. United Nations Statistics Division, ECOSOC Chamber. Kim, Samuel S. (2000), Korean Globalization, Cambridge University Press. Parker, Barbara (2005), Introduction to Globalization Business, Sage Publishing. Pak Y.S. and Park Y.R. (2004), Global Ownership Strategy of Japanese Multinational Enterprises: A Test of Internalization Theory, Management International Review, Vol.44, No.1, pp.3-21 Steers, Richard M Park, Seung-Ho (1997), Korean Enterprise, Harvard Business School Press. Websites Samsung Corporation http://www.samsung.com Samsung in Hungary http://www.samsung.com/hu/index.htm Samsung in Russia http://www.samsung.ru/about/ Samsung RD expenses in 2003 http://www.samsung.com/AboutSAMSUNG/ELECTRONICSGLOBAL/CompanyProfile/InvestmentinRD/ Samsung’s Governance Remains Problematic (2009), Ohmy News http://english.ohmynews.com/articleview/article_view.asp?menu=c10400no=274927rel_no=1 Accessed 18 November 2009 Sony Corporation http://www.sony.net Will globalization be derailed by the world financial crisis? (2009), McKinsey Company http://whatmatters.mckinseydigital.com/the_debate_zone/will-globalization-be-derailed-by-the-world-financial-crisis Accessed 18 November 2009

walmart :: essays research papers

Relationship Marketing King Wal-Mart Still No. 1 The economists are still telling us how bad the U.S. economy is, but don't say anything about the bad economy to your local Wal-Mart greeter. His or her employer just witnessed revenues grow by 12 percent in 2002, to $246.5 billion. He or she will probably proudly let you know that Wal-Mart Stores Inc. was just ranked number one—again—by Fortune magazine, leading the top 500 corporations for a second year in a row. How do they do it? Sam Walton's 1992 book Made In America has all the details, but let me sum up: Wal-Mart knows relationship marketing. Rule No. 8 of "Sam's Rules for Building A Business" holds the secret to this winning formula of success. He says, "Let them (your customer) know you appreciate them." So what has Wal-Mart done to show that they appreciate their customers? They use one-to-one relationship marketing tactics, executed by the famous Wal-Mart greeter. The Wal-Mart greeting was the original method used by the giant retailer to show customers that they are appreciated. A greeter at the door thanks customers for coming in, assists with a shopping cart, and provides a "goodbye thank you" upon departing the store. The friendly senior citizen dressed in the blue vest conveys warmth and personality to every guest entering or exiting a Wal-Mart store. So why don't others adopt this simple marketing tactic? Some do. Meijer retail stores also use greeters; many restaurants, hotels and other businesses do the same. But most don't—because relationship marketing is not as simple as it seems. It takes a type of commitment different than traditional marketing. Relationship Marketing Has 4 Key Components: It has to be personalized. Personalization can come in the form of a highly targeted direct mail piece, a phone call or email. Obviously the handshake and a smile illustrated by Wal-Mart greeters also work well in personalizing the relationship. It has to be targeted. Wal-Mart invests money in maintaining relationships with existing customers. By targeting this group, Wal-Mart establishes long-term relationships with their most loyal shoppers. Targeting customers through programs that reward loyalty can result in big returns over the life of the customer. It has to be meaningful. Your marketing message has to connect in an emotional way to establish a lasting relationship. If the Wal-Mart greeter did not look you in the eye while saying "hello," the greeting would not have a lasting impact.

Business Plan for Beauty Products Company Essay -- Business Plan for C

Table of Contents Executive summary 2 The company 2 Company description 2 Vision statement 3 Mission statement 3 Objective 3 Company background 4 Product/ service and industry 4 Product/ service description 4 Industry description 5 The market 5 Market and target customer 5 Competition and competitive advantage 6 Marketing strategy 6 Overall strategy 7 Sales plan 7 Competitive plan 7 Research and development or growth plan 8 The organization 8 Legal and organizational structures 8 Key personnel 8 Related service providers 8 Location 9 The financials 9 Critical risks 9 Income statement 9 Cash flow projection 10 Balance sheet 10 Start- up costs 10 Assumptions 11 Schedule 11 Conclusion 11 References 13 The appendixes 15 Executive Summary Starting a business is a challenging undertaking that requires detailed planning and intensive research. The modern dynamic market and economic changes demand for the adoption of a well through of business plan that incorporates the entire business requirements (Pinson, 2004). The Paradise Beauty Centre will be a small enterprise that will focuses on the production and distribution of beauty products in United States of America. The business plan will help the business managers and other employees in understanding the long-term and immediate goals and objective of the business. The business plan will also be useful in facilitating the adoption of a strategy that will help the business prosper in the modern market. The plan will be a critical tool that will help in the production of a reliable strategy for attaining the goals and objectives. The proposed business plan will be implemented in three years time. Within the first three years, the business i... ...ice-Hal Millikan, E. (2001). Cosmetology, cosmetics, cosmeceuticals: definitions and regulations, Clinics in dermatology 1.(4) 371-374 Moore, M., (2012). Creating Public Value: Strategic Management in Government, Cambridge: Harvard University Pres Pinson, L. (2004). Anatomy of a Business Plan: A Step-by-Step Guide to Building a Business and Securing Your Company’s Future. Chicago: Dearborn Trade Reshetnikov S., Wasser S., Duckman I., & Tsukor K. (2000). Medicinal value of the genus Tremella Pers. International Journal of Medicinal Mushrooms 2 (3): 345–67 Sullivan, A., & Steven M., (2003). Economics: Principles in action. Upper Saddle River, New Jersey : Pearson Prentice Hal Winter, R., (2005) A Consumer's Dictionary of Cosmetic Ingredients: Complete Information About the Harmful and Desirable Ingredients in Cosmetics. New York, NY: Three Rivers Press

Odyssey and Odysseus Dead Crew

Glory! In Homer’s 8th century BC epic poem The Odyssey and Sophocles’ 3rd century play Antigone, the leaders Odysseus and Creon display both similar and different leadership qualities. Odysseus is a leader of a crew he’s taking back home from a journey, but has many unexpected encounters on the way back. Creon is the heir to Oedpius’ thrown, and is King of Thebes. Both are important, however Creon proves to be the better King, seeing as Odysseus’ crew dies. The qualities of both leaders are what in turn lead to their results. Odysseus must lead his men back to Ithaca. Along the way they stop at an island where all his men are enchanted by fruits. He must do all he can to get them to return to the ship. In another encounter Odysseus’ dead crew member’s soul comes back and talks to Odysseus. He asks him to give his body a proper burial. Odysseus does this proving that he is not only loyal to his crew, but to his word as well. Odysseus however learns of a prophecy, one, which tells that if, his men eat the cattle on the island of Helios they will die. He cannot prevent his men from eating these cattle and they all suffer for their actions. They all die, and Odysseus fails as a leader. Creon’s takes an interesting approach to his leadership. He is stubborn and compassionate, hot and cold. Creon vows to do everything for the people, and anybody who breaks the law breaks his heart. Creon also makes numerous threats to the criminal who would dare to burry the betraying brother. But when he discovers that his own niece Antigone, his own flesh and blood, is the one defiling the law, he cannot stand it. His whole world starts to deteriorate and he cannot stop it before its too late.

Customer Relationship Management in Bahrain Investment Banking Arena Essay

The banking industry has undergone widespread changes within the operating environment and this involves globalization of markets and technological improvements. These two factors have influenced and encouraged innovative practices within the banking industry that has served to enhance its operational efficiency. The introduction of ATMs and e-banking facilities are some of the major milestones in the banking industry that have revolutionized business operations. The global markets have intensified the competitive environment of the banking industry that has created the need for increased efficiency in operations and increasing customer satisfaction. Customers are the lifeblood of any organization and the banking business too depends on the acquisition and retention of consumers for its profitability. Customer relationship management forms a vital aspect of business strategy driving the company’s market shares and market leadership position. Customer relationship management (CRM) has been defined as a business strategy that â€Å"is a fusion of a series of functions, skills, processes, and technologies which together allow companies to more profitably manage (acquire and retain) customers as tangible assets† (Shanmugasundaram, 2008:98). It is viewed as an interactive process that creates a balance between corporate objectives and customer satisfaction to increase the profitability of the business. Acquisition and retention of customers is one of the vital requirements of business and the effectiveness of strategies driven towards this goal determines the success of business enterprises. The past few years have witnessed growing application of CRM in retail banking and investment banking sectors. The key objective behind such initiatives is to ensure the delivery of superior customer service and to fulfil the needs of consumers. Such practices are effective in enabling organizations to meet the needs of the consumers and provide improved services in comparison to other players in the industry. Competitive advantage and business gains are driven by a proactive approach that focuses on consumer needs and expectations, provision of consistently high quality service, looking into consumer convenience and an effective follow up service to ensure consumer loyalty. A vital aspect of investment banking and any other financial services is the changing consumer mindsets. Owing to the abundance of information easily accessible over the Internet the consumers today are more knowledgeable of the wide range of choices and alternatives available to them. The consumers are equipped with more knowledge related to the banking options available and hence their banking decisions are guided by their well-researched study. This fact holds true for all economic sectors and business operations but forms a critical aspect of banking industries since it caters to a diverse segment of consumers. In nearly all business to business markets in which clients are as large as, or as in this case, often much larger than their suppliers, the latter must respond quickly to pressures from their clients to improve client management processes and systems† (Foss & Stone, 2002: 211). CRM in Investment banking sector The short term objective of the marketing department is to acquire customers while the long term objective translates to retaining the old customers through effective customer relationship management (CRM) strategies. Reaching and acquiring a new customer is one thing, keeping the relationship healthy and strong over a long period of time is the mark of the true marketing professional concerned with long term health of the organization† (Dolak, 2009). The increasing competitive market makes it difficult to retain customers over a longer period of time owing to the constant influx of new and substitute alternatives invading the shelf spaces at the local retail shop. This makes the task of CRM increasingly challenging and organizations adopt various strategies to attract old customers back. Retention strategies often employ measures such as consumer behaviour research and product surveys that enable the organizations to assess the needs and expectations of the consumer and enable them to serve better. Customers always appreciate the personal touch that results in building strong relationships. The net today provides numerous effective communication channels that are being used to keep the customer happy. Web based customer relationship management has effectively integrated all modes of communication – web, email, chat, video, voice to serve and support the customers to enhance the total customer experience. Investment banking differs from other forms of banking in the role a few major clients play on the bank’s performance and productivity (Foss & Stone, 2002). This form of banking targets a fixed client segment that drives the sales of investment products and services. The efficiency of the banking sector is determined by the types of products and services sold to customers in response to their investment needs and expectations. Customization of products and services are the key to deriving client satisfaction. Identification of the client segment is a vital factor in targeting and reaching out to the desired client population and this process is driven by market research. The changing demographics and intense competitive pressures from global industry players have however made a significant impact on the business strategies of investment banks worldwide. The challenges faced by investment bankers lie in reaching out to target consumers and providing them with increased ease of banking services that serve to retain clients over a longer period of time. Moreover, the increasing demands of consumers and growing expectations have driven the banking sector to adopt technology based innovative applications for meeting consumer needs and expectations. Online banking services and mobile banking applications are some of the innovative means that are being used by investment bankers to reach out to their target consumers. Such applications have served to improve banking services and efficiencies in resolving customer queries and needs promptly through the click of the mouse button. The anytime and anywhere access to banking services have defined new trends in serving consumers. â€Å"Online customization is one useful customer relationship management strategy adopted by e-business to add value and improve sales of their products and services using the Internet† (Khosla et al. , 2003). Investment banking in Bahrain The banking sector in Bahrain is one of the key sectors influencing economic growth and development in the region. The contribution of the financial services and banking sector is second only to the oil and natural gas industry in the country. The country has experienced an economic boom and an upward trend in economic growth and development over the past few decades on account of globalisation influences and opening of trade channels. The banking sector has also opened to multinational corporations establishing their operations in the country to tap the growing number of high net worth individuals in the country. Despite the globalisation of banking operations and increased de-regulation of the financial services sector in the area the country continues to have a significant control and supervision over the regulatory environment. The Central Bank of Bahrain continues to be monitor and control the banking environment in the country. The modernisation of banking services and strategic approaches made by investment bankers in other parts of the globe have not produced much impact in this region owing to the constraints applied by the existing cultural influence. The retail banking scenario in Bahrain is to a considerable extent driven by the culture of the country. The cultural impacts are realised in the conservative approach of consumers towards banking and investment. Various research studies have concluded that while the region is an emerging market for technology applications and innovative practices, user attitudes have limited the scope of technology based business models in the banking sector. The conservative market environment and user attitudes towards the CRM strategies adopted by investment bankers in Bahrain forms the focal point of the research study. The research study will analyse the various perspectives involved in CRM approach by investment bankers through the study of Unicorn Investment Bank in Bahrain. The bank was founded in the year 2004 and has its headquarters in Bahrain. It is an Islamic financial services group that has an international presence in various locations such as Malaysia, Turkey, Saudi Arabia and United States. The bank currently has six distinctive business service categories that include asset management and real estate, capital markets, corporate finance, private equity, strategic mergers and acquisitions and treasury. Among the various services offered by the bank the key approach is to deliver the customers with a comprehensive range of investment solutions that are customised to meet client needs and expectations. Unicorn’s integrated product offering and financial engineering skills are closely intertwined with a strong capacity to distribute the Bank’s products and services to a broad client base across the GCC region, the wider Middle East region, Southeast Asia, the USA and the Europe† (Unicorn, 2010). The target customers of the bank include high net worth individuals, business enterprises, financial institutions, corporations, and government agencies and departments. The products offered by the bank are Shari’ah compliant and conforms to the international financial practices (Unicorn, 2010). Issues and challenges â€Å"All major banks have invested heavily in technology and infrastructure over the last 5 and 10 years in this area, but hardly any of them have been successful in actually getting it effective† (Infosys, 2009). The failure of CRM initiatives within the investment banking sector have provided a new ground for research into increasing the effectiveness of CRM applications. There are many strategic implications related to the application of CRM within investment banking sector. This involves the adaptation of normal banking processes and systems to integrate with innovative use of technology based applications and automated query processing systems that require efficient management and handling of issues. Such issues pertain to the efficient use of CRM systems to meet operational goals and integrating the different banking functions to provide a structured application that can be used easily by consumers. Ease of use and convenience are some of the key parameters involved in the development of CRM based banking system. A key challenge facing these areas involves the security and privacy issues that form a major source of concern for consumers using the technology based applications. Technology based business models and CRM strategies enable investment bankers to provide the customers with efficiency in delivery of services, access to relevant information, product details and ease of transactions. Mobile banking and e-banking facilitates the customers of investment banking to a host of facilities that range from product enquiry; access updated rates of interest and market values of the investment products chosen and conducts investment transactions online. Investment portfolios can also be accessed and manipulated according to user convenience from the comforts of their home or office. However, widespread usage of such systems has been restricted on account of user reservations related to security issues and privacy of vital user data and information. Mobile banking and online transactions raise security and privacy concerns among most of the consumers (Barati & Mohammadi, 2009). The transfer of sensitive financial and personal information across mobile networks is found to be the prime reason behind the psychological barriers created among potential mobile banking customers (Laukkanen, 2007).