Strategic Analysis of a Company and its Competitive Environment

Introduction Marks and Spencer (MS) is a leading British Multinational Company with its headquarters in London. Thomas Spencer and Michael Marks established the company in 1884. Today, MS has over 700 shopping outlets in the United Kingdom. It also has its presence in over 40 nations globally. Currently, the MNC markets a wide range of products such as clothes, food products, and house furnishings.Advertising We will write a custom report sample on Strategic Analysis of a Company and its Competitive Environment specifically for you for only $16.05 $11/page Learn More In the recent past, â€Å"the company has been a major competitor in the apparel and luxury food industries (Sadler, 2007, p. 21)†. The company has a strong equity. This explains why the consumers trust the company’s products and services based on their quality and value. MS has a proper organisational structure thus making it a leading competitor in the country and globally. T his discussion offers a detailed strategic analysis of this multinational company. Current Strategic Issues Facing the Company’s Industry Marks and Spencer operates in different business sectors. Some of these include the food and apparel industries. In the recent past, certain changes have taken place thus making it necessary for the company to re-organize its strategy (Bevan, 2008). There are current trends and issues affecting the food industry. These issues affect the business of various companies such Tesco, Wal-Mart, Aurora, and Pudding Lane, among others. The current strategic issues facing the company are as follows: Competition The outstanding observation is that MS is facing competition from various competitors. The competitors are operating different business segments. The company is also losing its market share and profitability (Tallman, 2010). It is notable that MS markets products such as food materials and clothes. That being the case, MS is facing competition from different companies (Grant, 2007). For instance, some apparel companies such as Top Shop, Guess Company, and Hugo Boss continue to dominate the European Union (EU) market. As well, different food chains and restaurants such as Wal-Mart, Tesco, and Sainsbury are providing affordable and quality food products to their consumers. This explains why MS should work hard in order to cope with these changing trends in the market.Advertising Looking for report on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Global Financial Crisis Many companies are recovering from the credit crunch of 2009. As well, companies should embrace the idea of â€Å"forward-thinking† in order to emerge successful. MS should therefore deal with issue in order to emerge successful (Tallman, 2010). Obesity and Health Issues In the recent past, consumers have become aware and conscious of their health needs and expectations. Governments are i mplementing new interventions and policies to promote healthy business practices. Food Safety The world is presently experiencing the problem of bioterrorism and food insecurity. The local food industry also faces similar challenges thus affecting the performance of different companies (Sekhar, 2009). This situation calls for Marks and Spencer to address the issues in order to be successful. Consumer Demands The needs of consumers are changing. Their spending and purchasing habits are also changing. The younger generation is purchasing more foods than ever before. Companies such as MS will be required to examine such changes in order to address the needs of the consumers (Williamson Jenkins, 2013). Fashion Changes It is agreeable that more customers are aware of their clothes and fashion needs. The current changes continue to affect the performance of different businesses. MS should consider such changes in order to realize its potentials. Technological Changes Many companies in th e industry are using modern technologies than ever before. Modern technology is needed to promote the best practices for service delivery, product development, and customer satisfaction (Burns, 2008). Companies in the industry are required to embrace new technologies in order to emerge successful.Advertising We will write a custom report sample on Strategic Analysis of a Company and its Competitive Environment specifically for you for only $16.05 $11/page Learn More Marks and Spencer Strategic Position From the above issues facing the industry, it is agreeable that (MS) is currently doing business in a very competitive environment. MS Company continues to encounter numerous challenges than ever before. As well, the company is no longer benefiting from its â€Å"cores values†. These values include â€Å"quality, affordability, and efficient service† (Sekhar, 2009). Some apparel companies such as Top Shop, Guess Company, and Hugo Boss contin ue to dominate the European Union (EU) market. As well, different food chains and restaurants such as Wal-Mart, Tesco, and Sainsbury continue to provide affordable and quality food products to the consumers. This explains why MS should work hard in order to cope with these changing trends in the market. The company has continued to lose its market share and competitiveness (Verdin Heck, 2009). The level of competition makes it hard for the company to realize its goals. Since MS operates in many business segments, it has to deal with many competitors. For example, different retailers such as Debenhams, The Gap, Top Shop, and Next Company continue to dominate the apparel market. Certain food chains such as Sainsbury and Tesco are marketing frozen food products and fast foods thus making it hard for Marks and Spencer to emerge successful in its business. The outstanding observation is that MS is facing competition from different business segments. At the same time, the company has fai led to change its business strategy in order to remain competitive in the industry. The company is slowly by slowly losing its market share and profitability (Tallman, 2010). In the recent past, the company has been working hard to regain its market share and profitability. However, the company’s weaknesses continue to affect its business. The company has consistently focused on its clothes and foods as their main brands.Advertising Looking for report on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More That being the case, the expectations and demands of the customers has been changing thus making it impossible for Marks and Spencer to remain competitive in its business environment. According to a study by Seth and Randall (2011), MS has been getting most of its revenues and sales from the United Kingdom. This means that the company has mainly focused on the UK market. The increasing cost of living is making it harder to the consumer to purchase most of the company’s products. From the analysis, the biggest question is how MS can change its strategy in order to succeed in its business environment. Marks and Spencer Environmental Analysis SWOT Analysis Strengths MS markets high quality and competitive products. The company has good relationship with employees. The company’s stores and outlets are strategically located across London. Marks and Spencer is one of the most profitable companies in the United Kingdom and across the globe. This explains why the company has a growing market share (Williamson Jenkins, 2013). Marks and Spencer has established the best supply chain processes and strategies with its suppliers (Williamson Jenkins, 2013). The company has the best business practices and financial strengths. Weaknesses One thing about Marks and Spencer is that it relies mostly on local suppliers in the United Kingdom. At Marks and Spencer, the marketing strategy does not embrace new ideas and changes (Verdin Heck, 2009). The company does not consider the expectations of its customers. This explains why more customers are buying products from its competitors. The company does not market to the young generation. At Marks and Spencer, â€Å"the customer is no longer getting the best support and services (Seth Randall, 2011, p. 87)†. For instance, the company does not provide â€Å"loyalty cards† and â€Å"gifts† to its customers. Opportunities Marks and Spencer can use e-business in order to compete against the other leading companies (Seth Randall, 2011). Modern companies can use new technologies to improve their supply chain processes and provide the best customer support. It is agreeable that people are looking for new fashions and designs. The company stands a better chance to benefit from this new development (Tallman, 2010). The European Union (EU) continues to show signs of stability in the coming years. The company is currently expanding its business to different countries and cities. Threats The modern consumer is becoming very sensitive about fashion. As more companies continue to use the internet for marketing, Marks and Spencer continues to lose it customers. The level of competition is always increasing because the company operates in different segments. Porter’s Five Forces Model The Porter’s Fiver Model examines the business environment of a company. â€Å"It explores the unique challenges and issues for an organisation to address in order to become successful ( Verdin Heck, 2009, p. 86)†. This analysis explores the current position of Marks and Spencer. Fig 1: Porter’s Five Forces Competitive Rivalry The level of competition in the business is very high. In the clothing sector, MS is facing competition from Gap and Next Companies (Bevan, 2008). As well, the company is facing high completion from Sainsbury and Tesco Companies in the food sector. Bargaining Power of the Buyers It is agreeable that the company is facing numerous threats from its buyers. The buyers are demanding for quality and proper service. The company is required to worker harder in order to provide better products to its consumers (Bevan, 2008). Suppliers’ Bargaining Power Currently, the bargaining power of Marks and Spencer’s suppliers is low. This is the case because there are more suppliers in the existing market. Threat of New Entrants Most of the competing companies and retailers have already established their businesses in the country (T allman, 2010). This explains why there are minimum threats from new entrants into the market. Threat of Substitutes In the UK, there are more companies importing their products from other countries. Such products are usually cheaper and address the needs of the customers. This poses a threat to the company’s business practice (Sekhar, 2009). PESTEL Analysis For MS to succeed in its business, it needs to be aware of the changing trends in its environment. PESTEL Analysis makes it easier to measure the organization potential according to the major environmental factors (Verdin Heck, 2009). This part presents the company’s external environment. Political Factors The company operates in the UK. This means it operates in a stable political environment. However, the major threat is from terrorism. The region has the best political structure, tax system, and labour administration thus making the environment attractive. Economic Factors The United Kingdom has a good economy. With proper management, the company can succeed in this economy. The company can embrace the best short and long-term goals because the economic situation in the United Kingdom is favorable for business practices (Verdin Heck, 2009). The company should concentrate more on the younger generation because it has disposable income on tertiary goods such as clothes and fashion. Social Factors The changing socio-cultural aspects in different countries affect many businesses today. With the company operating in many countries today, there is need to address such factors and consumer expectations (Burns, 2008). As well, it should examine other aspects such as mortality rates, cultural changes, and consumer expectations. The approach will make it easier to market the best products to the consumers. Technological Factors The company is today operating in a competitive environment. The company should embrace modern technologies in order to widen its potentials and deliver quality to its custo mers (Verdin Heck, 2009). The competitors have embraced the use of modern technologies thus posing a major challenge to the company. Environmental Factors The world is today becoming sensitive about the environment. Marks and Spencer will be required to examine its practices and use environmentally friendly practices for marketing and production. This is the only way for the company to remain successful. Legal Factors The current legal provisions require that business organizations embrace the best practices. Various consumer legislations, labor laws, and business ethical practices determine the practices of modern businesses today (Worth, 2007). MS will have to reconsider its practices in order to be successful. The Company’s Strategic Direction: The Ansoff Matrix The Ansoff Matrix identifies the best direction for a company. The matrix helps the business managers make the best decisions based on the company’s products, market share, and consumer expectations. Fig 2 : Ansoff Matrix The above assessment indicates that Marks and Spencer has some strengths and weaknesses. The company has been moving away from its leading values. The level of competition is also increasing (Tallman, 2010). As well, the consumers are becoming aware and sensitive about quality and service delivery. The consumers have been moving to other competitors such as Tesco, Wal-Mart, Hugo Boss, and Sainsbury, among others. These companies continue to provide cheaper and quality products to the customers. That being the case, MS should design a new strategy and products in order to address the growing competition and rivalry in its business. Conclusion With the combination of the existing strengths, MS will be able to turn its threats and weaknesses into opportunities. Personally, I believe the company should diversity its products in order to tackle the issue of competition. Diversification will make it easier to provide quality products to the existing shareholders. Since the current strategy at the company is not effective, there is need to use new ideas and come up with new products. The approach will make it easier to address the changing needs of the modern customer. As well, the company should also provide quality products and services to its customers. Reference List Bevan, J 2008, The Rise and Fall of Marks and Spencer: And How It Rose Again, Oxford University Press, Oxford. Burns, P 2008, Corporate Entrepreneurship: Building an Entrepreneurial Organization, Palgrave Macmillan, Basingstoke. Grant, R 2007, Contemporary Strategy Analysis, Sage, London. Sadler, I 2007, Logistics and Supply Chain Integration, Longman, London. Sekhar, S 2009, Business Policy and Strategic Management, Wiley, New York. Seth, A Randall, G 2011, The Grocers: The Rise and Rise of the Supermarkets Chains, Longman, London. Tallman, S 2010, Global Strategy, Longman, London. Verdin, P Heck, N 2009, From Local Champions to Global Masters, Cambridge University Press, Cambridge . Williamson, D Jenkins, W 2013. Strategic Management and Business Analysis, Cambridge University Press, Cambridge. Worth, R 2007, Fashion for the People: A History of Clothing at Marks Spencer, Longman, London. This report on Strategic Analysis of a Company and its Competitive Environment was written and submitted by user Ada O. to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.

A Profile of Paul Williams, Architect to the Stars

A Profile of Paul Williams, Architect to the Stars During an age when racial prejudice ran strong, Paul Revere Williams (born February 18, 1894 in Los Angeles) overcame barriers and became a favored architect in Southern California. In 1923, he was the first Black architect to become a member of the national professional organization, the American Institute of Architects (AIA), and he rose to become a Fellow in 1957 (FAIA). In 2017, Williams posthumously received the Institutes highest honor, the AIA Gold Medal. Paul Williams was orphaned when he was four - his brother and parents died of tuberculosis - but his artistic talents were supported and encouraged by his new foster family. His non-Black public school teachers, however, gave little encouragement to Williams, citing the perceived difficulties of a Negro pursuing an architecture career within a largely white community. Nevertheless, he enrolled in the local engineering school and graduated in 1919 from the University of Southern California. He went on to New York City to become one of the first Black students to attend the Beaux-Arts Institute of Design, an architectural experience modeled after the curriculum of the Ecole des Beaux-Arts in Paris. Williams was ambitious and self-assured after such rigorous study and especially after winning an important architecture competition when he was only 25. He opened his own practice back in LA when he was 28. As a Black American, Paul Williams faced many social and economic barriers. Williams clients were mostly white. In the moment that they met me and discovered they were dealing with a Negro, I could see many of them freeze, he wrote in American Magazine. My success during those first few years was founded largely upon my willingness - anxiety would be a better word - to accept commissions which were rejected as too small by other, more favored, architects. Much of what we know about Williams process is from this 1937 essay, I Am a Negro. He took to heart what he had been told about clients - that Black people couldnt afford architects and white people wouldnt hire a Black architect. So, he developed tricks to be less intrusive, almost subservient to potential white clients - most famously, he elegantly sketched upside-down to showcase his ideas to white clients while maintaining a physical distance. Perhaps it is this understanding of space that made this architect so successful. He used both physical and psychological tactics - he would consciously stand in a non-threatening posture with both hands behind his back while explaining that he normally doesnt take on projects in the lower price ranges, but hed be glad to offer some ideas. Williams most famously has said If I allow the fact that I am a Negro to checkmate my will to do, now, I will inevitably form the habit of being defeated. Being Black in a segregated industry led Paul Williams to develop salesmanship and become politically active. He joined the Los Angeles Planning Commission and he became the first Black member of the American Institute of Architects (AIA). In 1957, he was the first Black architect elected to the prestigious AIA College of Fellows (FAIA). Paul Williams collaborated with other architects on many of his larger, public projects, most famously for his role in designing the Theme Building at Los Angeles International Airport (LAX). Some of Williams projects were with architect A. Quincy Jones, who worked with Williams from 1939 to 1940. Although the iconic, futuristic LAX structure is high profile architecture, Williams designed thousands of private homes in Southern California - many of the most beautiful houses in Hollywood are sold an resold to the ongoing star-making machine surrounding Hollywood. Williams designed homes for Lucille Ball, Bert Lahr, and Frank Sinatra, and he became close friends with Danny Thomas, for whom he did pro bono work for St. Jude Childrens Hospital in Memphis, Tennessee. While there is no one distinctive look to his buildings, Paul Williams became known for designs that were stylized and elegant. The architect borrowed ideas from the past without using excessive ornamentation. He could make a Tudor Revival mansion look like a manor house on the outside and a cozy bungalow on the inside. Paul Revere Williams retired in 1973 and died in the city of his birth on January 23, 1980 in Los Angeles, California. Although few documents from his practice have survived, architectural scholars have compiled extensive records of Paul Williams life and works, including contracts, letters from clients, plans, and materials related to specific projects. Photographs, bibliographies, and other resources are posted online by the Paul R. Williams Project, coordinated by AIA Memphis, the University of Memphis, and other organizations. In the 1940s, Williams published two small books of plans that have remained in print. Also, author Karen E. Hudson, the granddaughter of the architect, has been documenting Williams life and work. The Small Home of Tomorrow by Paul R. WilliamsNew Homes for Today by Paul R. WilliamsPaul R. Williams Architect: a legacy of style by Karen Hudson, Rizzoli, 2000The Will and the Way: Paul R. Williams, Architect by Karen Hudson, Rizzoli, 1994 (for ages 8-12)Paul R. Williams: Classic Hollywood Style by Karen Hudson, Rizzoli, 2012 Sources Early African-American Members of the AIA (PDF); 2017 AIA Gold Medal, AIA.org; Architect of Hope, St. Jude Childrens Research Hospital; Williams the Conqueror by Shashank Bengali, University of Southern California Public Relations, 2/01/04

Eastern Gear, Inc Case Study Example | Topics and Well Written Essays - 250 words

Eastern Gear, Inc - Case Study Example As the paper outlines, quality of some products is poor. 6 per cent of the orders are returned to the company because of this. There should be appropriate time division between the use of machines for processing the small and large orders. This would help avoid delays to one’s processing because of the other. The cost-benefit analysis of keeping bottle necks at the same location must be carried out. If the benefits outweigh the cost, measures should be taken to achieve this. Otherwise, a person should be assigned to track the bottle necks. There is not much need to shift the machines. However, there is need to gauge machines together in such a way that their use becomes maximal. Ideally, there should be separate processing systems for small and large orders. There should be a proper quality assurance/quality control (QA/QC) department. It will check all orders for deficiencies before shipping to the customers. On immediate basis, Matt Williams may be assigned this responsibili ty.  How can this case be related to operations strategy and process design concepts? Be specific. Demonstrate that you have read and understood the assigned reading. Include citations from your textbook in APA format. This case relates to the operations strategy and process design concepts. It encapsulates many issues of operations strategy like scheduling the processing of orders of different sizes. Concepts of process design including organizational structure are also discussed.

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Business Research proposal and Questionnaire Essay

Business Research proposal and Questionnaire - Essay Example Companies usually use talent – movie actors, models, athletes or famous people for endorsement (Bergestrà ¶m & Skà ¤rfstad, 2004). Not just the large firms, even smaller companies with limited budget use sports and athletes to promote their products. I will look into the benefits that companies derive from such endorsement. A celebrity is defined as "an individual who is known to the public (i.e., actor, sports figure, entertainer, etc.) for his or her achievements in areas other than that of the product class endorsed" (cf., Friedman and Friedman 1979 cited by Kamins, Brand, Hoeke & Moe, 1989). Celebrities exert their influence on the consumers through perceived attributes such as expertise, trustworthiness, attractiveness, familiarity, and likeability and hence celebrity endorsement becomes more attractive when images or the characteristics of the celebrity match the endorsed product (Choi, Lee & Kim 2005). The use of celebrities for product endorsement was on the rise in the late 1970s. While it was estimated that 15 percent of prime time television commercials featured celebrities in 1975, by 1978 it was reported to be over 20 percent (Kamins, Brand, Hoeke & Moe, 1989). On the other hand, according to a report published in Campaign (2007) a survey revealed that only 16 percent of the people would buy products that had celebrity endorsement. Since 2001 the number of television ads featuring celebrities has been steadily increasing as the budgets have tightened and researchers not sure to what extent celebrities make a difference to the sales. Marketing Week (2006) suggests that when celebrities are used to endorse a product, people quickly forget the product that has been endorsed and the celebrity becomes the focus of attention while ECM (2007) suggests celebrity trend is already weakening in the US. Cross-cultural studies also suggest that celebrities with worldwide recognition in advertising is an effective means of

Ethics From Immanuel Kant And John Stuart Mill

Ethics From Immanuel Kant And John Stuart Mill Immanuel Kant (22 April 1724 12 February 1804) was an 18th-century German philosopher from the Prussian city of KÃ ¶nigsberg. Kant was the last influential philosopher of modern Europe in the classic sequence of the theory of knowledge during the Enlightenment beginning with thinkers John Locke, George Berkeley, and David Hume.[1] A philosopher who lived a life of stringent discipline routine. He took a passionate interest in American and French revolution. Kant has various writings to his credit which include: General Natural History and Theory of the Heavens (1755): in which he writes about the solar system Critique of Pure Reason (1781): is about his philosophical work in natural sciences mathematics. Critique of Judgement (1790): wherein he analyzes aesthetics biology. The Fundamental Principles of the Metaphysics of Morals (1785): endeavours to show the foundations of genuine morality. The Critique of Practical Reason (1788): investigates implications of immorality for religion. Kants main concern is nature morality (starry heavens above and moral law within). He says that genuine morality i.e., a morality which is objectively and universally binding requires an a priori foundation. He adds that the universal basis of morality in man must lie in his rational nature, since this alone is the same in everyone. Thus a moral principle must be such that a man can will that all men including him should act upon it. Kant uses the test of consistency as the core of fundamental moral law which he calls categorical imperative: those actions are right which conform to principles one can consistently will to be principles for all men, and those actions are wrong which are based upon maxims that a rational creature could not will that all men should follow. Through the categorical imperative we can distinguish between right wrong actions. Kant emphasizes that it is not only the test but it is also the unconditional directive for behavior. It is binding upon everyone because each rational man acknowledges his obligation to follow reason. Thus categorical imperative is the only basis for determining our duties. He stresses that reason prescribes duty, and the moral law holds whether or not men actually follow it. In order to have an in-depth understanding of Kants philosophy we need to see how he built up his argument. Initially Kant carries out a critical analysis of the commonly accepted good things like health, wealth and friendship. He adds that the mentioned things are not good under all circumstances, but only in so far as they are conjoined with something that is unqualified good a good will. GOOD WILL represents the effort of a rational being to do what he ought to do, rather than to act from inclination or self -interest. Thus a good will appears to constitute the indispensable condition even of being worthy of happiness. Kant elaborates that good will is not good because is achieves good results. Even if it fails to attain the ends it seeks, it would be good in itself and have a higher worth than the superficial things gained by immoral actions. Kant mentions that reason is a very inefficient instrument for the achievement of happiness. He concludes that reason is not intended to p roduce happiness, but to produce a good will. Kant further explains the relation between good will duty highlighting that a good will is one which acts for the sake of duty. Indeed, human actions have moral worth only if they are performed from duty. He further says that even action in accordance with duty is not enough; only respect for duty, makes an action moral. Kant further differentiates praiseworthy behavior from moral action, he says that altruistic or selfless actions that result from feelings of sociability deserve praise and encouragement but they cannot be classified as possessing moral value. Moral worth of character which is highest of all is not brought out from inclination but from duty. Kant then puts forward his first ethical proposition wherein he states that an act must be done from duty in order to have moral worth. Taking this forward the second ethical proposition says that an act from duty derives its moral value not from the results it produces but from the principle by which it is determined. Taking the first two propositions Kant defines duty as the morally right action is one done solely out of reverence for the law and its unique and unconditioned worth is derived from this source. Third proposition which is a consequence of the first two expresses duty is the necessity of acting from respect for the law .For Kant the supreme principle or law of morality which the good man must follow is the Categorical Imperative. Rational beings as far they act rationally will always be guided by ethical principles or maxims which can be adopted by everyone else without generating any contradiction. Kant further distinguishes between categorical imperative and hypothetical imperative. Kant says that categorical imperative is an unconditional directive that prescribes actions to be done because of the moral worth of the maxim and not for the sake of some consequence that may result. On the other hand hypothetical imperative is a conditional directive which advises what ought to be done if a desired goal is to be achieved for example, One ought to tell the truth as a manner of principle is a categorical imperative, whereas if you want to avoid punishment, you ought to tell the truth is a hypothetical imperative. Kants first explicit formulation of categorical imperative requires an individual to obey a maxim which can, without contradiction, be willed to be a rule for everyone. This means that the essence of morality lies in acting on the basis of an impersonal principle which is valid for everyone, including oneself. Kant conceives the categorical imperative to be a two-fold test. It requires first, that maxims for moral action be universalized without logical contradiction and second, that they be universal directives for action which do not bring the will into disharmony with itself by requiring it to will one thing for itself and another thing for others. In one of Kants formulation of categorical imperative he talks of social implications, he emphasizes that it requires us to treat every human being as an end in himself and never as merely a means to an end. In brief, we should respect all human beings impartially and avoid exploiting anyone. Ends that are ends only because they are des ired give us hypothetical imperatives; but if there is an end in itself, the imperative to seek it is independent of desire and is therefore a categorical imperative. Kant shows the basic identity of the first and second formulations of the categorical imperative. Those actions which, on the first formulation, cannot be universalized without contradiction, example committing suicide or refusing to help the needy, will be seen on the second formulation to be inconsistent with the idea of humanity as an end in itself. Having brought to light with logical rigor the implicit pre-suppositions of the common mans awareness of duty and shown it to be a universal categorical imperative, Kant gives eloquent praise to pure moral philosophy and a word of caution to those moralists who would allow reason to be corrupted by empirical considerations. References: [1] Crane Brinton. Enlightenment, Encyclopedia of Philosophy. Vol. 2, p. 519. Macmillan, 1967. [2] www.wikipedia.com [3] E. Albert, T. Denise, S. Peterfreund Great Traditions in Ethics, 4th Edition, 1980. 2. John Stuart Mill John Stuart Mill was the intellectual heir of the utilitarian movement in England. Mill dedicated himself to clarifying the teachings of his father, James Mill, and those of Jeremy Bentham, who championed the utilitarian doctrine. John Mill was nurtured and mentored to be an original thinker. Mills major works include: System of Logic (1843): which is his philosophical contribution wherein he defends the inductive method of logic, showing that general laws or universal principles must be derived from empirical facts. Principles of Political Economy (1848): wherein he relates the application of Utilitarian principles to Economics. Essays on Liberty (1859) and Considerations on Representative Government (1861): are classical statements of his social and political philosophy. Essay Utilitarianism (1861): is his only explicit contribution to ethics. Autobiography and Three Essays on Religion: both of which works were published after his death. John Stuart Mill did not attempt to originate an ethical theory, but rather to defend the ethical theory to which he was born. He modified and went beyond the utilitarian doctrine as it was propounded by his father and Jeremy Bentham. Bentham based his utilitarian philosophy on the principle that the object of morality is the promotion of the greatest happiness of the maximum number of members in the society. He proceeded on the premise that the happiness of any individual consists in a favorable balance of pleasures over pains. Consequently, those actions which tend to increase pleasure are called good and those actions which tend to increase pain are called bad. For Bentham The public good ought to be the subject of the legislator: General utility ought to be the foundation of his reasonings. To know the true good of the community is what constitutes the science of legislation; the art consists in finding the means to realize that good. To implement this social and political ideal, he constructed a hedonistic calculus by means of which pleasures and pains could be measured. In this way, good and bad acts and, consequently, good and bad legislation, can be evaluated in terms of such factors as intensity, duration, extent, certainty, propinquity, fecundity purity.2 Mill restates the Bentham doctrine. In his restatement, he goes beyond Benthams contention that the essential differences among pleasures and pains are quantitative, maintaining that they are also subject to significant qualitative differentiation. Mill accepts in principle Benthams doctrine regarding the basic role of pleasure and pain in morality viz. Individual psychological hedonism: according to which the sole motive of an action is an individuals desire for happiness that is for a balance of pleasure over pain. This is primarily a descriptive doctrine since it gives an account of the actual motive of the behaviour. Universal ethical hedonism: according to which the greatest happiness of the greatest number ought to be the individuals goal and standard of conduct. This is a normative theory in that it stipulates what ought to be done. In it is a principle by which actions are evaluated in terms of their consequences irrespective of the nature of the motive. However there are gaps between Individual psychological hedonism and Universal ethical hedonism: If each individual is motivated solely by the desire of his own happiness, there is no reason to assume that his actions will at the same time always promote the interests of the society The descriptive fact that men do desire their own happiness, does not imply the normative principle that men ought to act in accordance with this desire. In order to fill the gaps and harmonize individual psychological hedonism and universal ethical hedonism Mill takes recourse to the concept of Sanctions the inducement to action which gives binding force to moral rules. In Mills system of ethics, sanctions are rooted in the hedonistic motive, i.e., moral rules are acknowledged and obeyed by virtue of anticipated pleasures or pains There are both external and internal sanctions. External sanctions are forces of reward and punishment in the universe about us which control mens actions through their fear of pain and propensity for pleasure. But Mill cautions that presence of such external sanctions is not to be taken as true sense of moral obligation. Thus ultimate moral sanction must come from within. The force of an internal action derives from the feeling of pleasure which is experienced when a moral law is obeyed and the feeling of pain which accompanies a violation of it. Thus the greatest happiness principle can be sanctioned from within. Moreover by means of this doctrine of internal sanctions, Mill is enabled to reconcile the psychological theory that everyone desires his own happiness with the moral theory that one ought to act as to serve pub lic good. Looking at Mills work in detail we see that Mill defends the utilitarian doctrine by identifying misrepresentations and clarification of the principle. He opposes those who fail to associate utility with pleasure and pain. Mill then states concisely the doctrine of utility. He says that Greatest Happiness Principle, holds that actions are right in proportion as they tend to promote happiness (pleasure and absence of pain), wrong as they tend to produce the reverse of happiness or unhappiness (pain and deprivation of pleasure).He further states that pleasures vary in kind and degree and some kinds of pleasure are more desirable more valuable than others. Thus quantity quality both need to be considered when estimating pleasure. Mill relates that superiority of one kind of pleasure over another is determined by those who have experienced both kinds. Further says that among those who have experienced both prefer the pleasure of higher faculties. Mill further discounts the judgment of those who abandon higher pleasures for lower ones by explaining that they are incapable either inherently or by lack of opportunity of enjoying the higher kind. The only judges are those who have tested the spectrum of pleasures (lower higher pleasures).Mill relates the greatest happiness principle to include the difference between the quantitative and qualitative aspects of pleasure. Mill puts forward the realistic description of happiness and a suggestion for the social means of achieving it. This is a clarification to the objections to the utilitarian doctrine. Another objection Mill discounts is the claim that Utilitarian morality is incompatible with acts of personal sacrifice which are so sacred in Christian culture. Thus he concludes that each individuals happiness is equal to that of any other. The greatest happiness principle is not essential as a motive for conduct but is essential as the rule by which conduct is judged and sanctioned. Herein moral evaluation is directed to actions and to the manner in which they affect the general happiness. Having removed the major misconceptions about the principle of utility Mill proposes to investigate its ultimate sanction. Mill states that it is our feeling for humanity which provides the ultimate sanction of the principle of utility and this Mill calls the internal sanction. Regardless of whether this inner feeling or internal sanction for mankind is inborn or acquired, Mill argues that it can be a powerful force and a sound basis for utilitarian morality. Mills moving description of the origin and nature of the feeling for humanity may serve as a fitting conclusion to his exposition of the greatest happiness principle. References: [1] E. Albert, T. Denise, S. Peterfreund Great Traditions in Ethics, 4th Edition 1980. [2] www.wikipedia.com (3) Virtue Ethics Virtue ethics highlights or stresses on the basic virtues of moral character the main concept being of virtue, practical wisdom and eudaimonia. The founders of virtue ethics are Plato and Aristotle, though roots can be traced back to Greek Philosophy and the Chinese dominant approach1. Virtue ethics refers to a collection of normative ethical philosophy that place an emphasis on being rather that doing. In other words in virtue ethics morality stems from the identity or character of the individual rather than being a reflection of the actions (or consequences thereof) of the individual. There are various debates on virtue ethics however the link that connects all is that Morality comes as a result of intrinsic virtues2 VIRTUE: PLATOS IDEA Plato followed the Socratic dictum Virtue is Knowledge. Platos thesis was that life of reason is the happiest best. This means that knowledge produces a harmonious man in the sense that when reason governs desires passions, a well balanced organized personality results. Such a person is a rational man who is the virtuous man and the happy man. For Plato a morally virtuous man is one who is in Rational, Emotional and Biological balance . In Platonic terms a virtuous man is one who is wise, temperate, courageous and just. In a virtuous man desires or passions function harmoniously under the governance of reason. Such a man sets his own inner life is his own master and is at peace with himself. Platos answer to what is a Good Life is that a life of reasoning is the best life. He has written in the Republic It is better to be unborn than untaught: for ignorance is the root of misfortune.3 For Plato: A man of knowledge is the virtuous man Life of reason(knowledge ) is the best life Ultimate knowledge on which moral virtue is based is the knowledge of the Good. By achievement of justice ,temperance and wisdom the whole soul becomes perfect and noble VIRTUE: ARISTOTLES IDEA Aristotles theory is that everyone wants to live the good life, the happy life. The term used for happiness is Eudaimonia. By happiness Aristotle seems to mean well being the fulfillment of our distinctive functions. Aristotle says that Eudaimonia is the highest good because it is sought for its own sake and nothing else that is justice is sought because it leads to good life. According to Aristotle the best way to achieve happiness (Eudaimonia) was to inculcate and exhibit those qualities that are most productive to live in a society. He states that extremes of character are not good. For Aristotle Virtue lies in the Golden Mean that is the right balance between the two extremes. He has called each of the extremes Vice and the mean Virtue4. Exceptions to the Rule: Not everything has a means No means for murder or theft Thus following Aristotles thought every person should develop his own character by inculcating habit of virtue. Thereafter good actions will become a habit e.g. a good person will take good decisions. This goodness shall then ripple to the society coming generations from their elders since virtue is taught by example rather than set of rules. The virtues identified by Aristotle are of 2 types: Moral Virtues: The habitual choice of actions in accordance with rational principles. Intellectual Virtues: The contemplation of theoretical truths and the discovery of rational principles which ought to control everyday actions. The first set of virtues is developed by habits the second by training and education. According to Aristotle we are not born with virtues that are we are inherently good or bad, we learn by inculcating habits having role models of virtuous people.4 Thus according to Aristotle A life of reason is the best and most pleasant and this life is also the happiest one. Happiness thus depends on actualization of ones rationality. A virtuous man lives according to reason thus realizing his distinct potentiality.

America in the 1920s and 1930s :: American History

When many people study history and learn the mistakes from the past, it would be easier to able to understand the present. Nevertheless, it is not enough to simply study the events that have transpired. By changing the unfavorable events that led to despair and continuing the benefits to society, one can understand why they happen and better the future. In the United States in the early 1920s, a new stage appeared with different movements in the areas of politics, economics, society, culture, and foreign policy. By the events that led to the 1930s, new crazes had developed in many of these areas, while other areas remained in continuity. From the 1920s to the 1930, there were several factors that contributed to the changes in American society. The 1920s began shortly after in World War I when the United States and the Allies defeated the Germans in 1918. Many Americans were fed up with Woodrow Wilson, the 28th president from 1913 to 1921. The first election of the 1920s scoured Republican Warren G. Harding against Democrat James M. Cox. Cox supported Wilson and the League of Nations in the election. However, Harding won the election in a landslide, which was a sign of America ¡Ã‚ ¦s frustration with Wilson and his optimistic and liberal policies. The start of the new conservative era restored the power to the Republicans after the presidential election of the 1920. Harding made quite a few excellent appointments to his cabinet although he failed to demonstrate to have much intelligence. Charles Evans Hughes was appointed to be the Secretary of State, Andrew W. Mellon appointed as the Secretary of the Treasury and as leader of the Commerce Department, and Herbert Hoover bumped up the 1920s to a new level. On the other hand, Harding also appointed some of the worst positions for office. He appointed Albert B. Fall as the Secretary of the Interior. The Teapot Dome Scandal or the  ¡Ã‚ §Oil Reserves Scandal ¡Ã‚ ¨ [Simon, 3/8/00] surrounded the secret leasing of the federal oil reserves by Fall. He secretly granted the Mammoth Oil Company exclusive rights to the Teapot Dome reserves in Wyoming after President Harding transferred supervision of the naval oil reserve lands from the navy to him. While this scandal entered American politics as a symbol of governmental corruption, it had little long-term effect on the Republican Party. For the moment, Harding started the conservative trend of politics in the 1920s.

Satellite Radio: A Closer Look

The twenty first century marked a new turning point for the radio industry. In 2001, satellite radio was introduced to the public by Sirius and XM companies. The two companies remain to be the leading players in the satellite radio industry. Sirius and XM companies obtained their lead when they were awarded in an auction with the license to utilize the frequencies developed by Digital Audio Radio Service (DARS). The said radio service was commissioned in 1992 to establish radio frequency segments for satellite broadcast in the radio (Kevin). Among the two broadcast satellites initially launched by XM radio are Rock and Roll. The launching was made in San Diego and Dallas last September 2001. After the successful turnout of the launching, XM radio decided to introduced satellite radio to the entire nation in November 2001 (Satellite Radio USA). Through the satellite radio, listening to one’s radio while traveling has become more convenient. Radio frequency is a common problem among radio listeners who are traveling. Oftentimes, they need to change stations because the frequency of the radio stations which they initially listen to has limited frequency. The average frequency of traditional radio is 0 to 40 miles from the source. The radio satellite on the other hand can reach to as far as 22, 000 miles from the source. Thus, a traveler need not frequently change the radio station that he is listening to. How Satellite Radios Work Unlike the analog radio which broadcasts radio frequency to local stationary transmitters and thereafter to the listeners, satellite radio utilizes mobile satellites in ord er to transmit programs to the listeners. The use of mobile satellites allows the radio system to cater to a wider audience since satellites have the capacity to transmit signal from all over the globe. Satellite radios allows the radio frequency transmitted to bounce off and reach the listeners (Walker). Interested listeners can avail of the service after they have purchased the necessary programming service. A device is given to the client to enjoy the service. The said device is programmed into a database in order to allow it to receive radio transmissions from specific radio satellites. Entry into the database allows the sending of signal to the devise in order to decrypt the satellite frequencies and give the listener radio reception (Walker). In contrast to traditional radio which can be accessed for free, satellite radio needs subscription before one can be enjoy the use thereof. Satellite radio companies do not earn money from advertisements but through subscription. Just like cable television, programs on satellite radios are not bombarded with lengthy advertisements. One can enjoy the comfort of listening to his favorite music or programs without any interruption. Benefits from Satellite Radio Since satellites radios allow a more liberal way of listening to radio programs by extending the limit of the coverage, there are more benefits that can be generated from it. Among the benefits is the wide array of radio programs that could be accessed. Listeners can choose to listen to many different programs. They have the liberality to choose which is more adept to their taste and interest for the day. There are more than 60 music channels and 50 other channels dedicated for news, sports, weather, traffic and talk (Satellite Radio USA). Satellite radio is recommended for people who have penchant for listening to the radio for long hours and for those who are in search for specific programs such as ESPN, FOX or BBC among others. The subscription paid for such services is cheaper compared to cable television. Thus, satellite radio does not only provide specialized program listening but it also gives the pocket a breather. If one is only after news in cable television or sports, then he could just opt for this service. The same amount of information could be generated at a cheaper price. Jobs Created Aside from the wider coverage that satellite radio provides to listeners, it also gives an avenue for more jobs in the broadcast industry. Since there is a growing market for the satellite radios, there is a need to employ people who will maintain the system and update the devices that the listeners utilize. People from the engineering department as well as those who are knowledgeable with technical matters, can find good jobs in this field. In addition, people who man the broadcast are also given job opportunities. Among the jobs opportunities are: writer for news, sports, talk programs and many others. Proof readers, editors, news readers, news anchors and assistants for such individuals can have fulfilling jobs in this industry. They have an avenue to exercise their skills and interests in their field of interests. With the rising number of subscribers, there is a possibility that employment in the satellite radio industry will continue to prosper. More programs and maintenance of the existing programs will need more people to man it. If the satellite radio reaches worldwide then there will be more job opportunities for the said field. However, if there are jobs that are created in this industry there are also jobs which are lost or on the verge of being lost. Jobs Lost Among the jobs that are being threatened by the satellite radio industry are those which are related to the terrestrial radio industry especially those who are employed in small radio companies which only have limited coverage. Each city has its own radio company which caters news and other events to the locality. Due to the satellite radio innovation, these companies are being threatened with the possibility of closing. They can hardly compete with the satellite radio which provides an array of program line up. Through the said innovation, people are no longer left with merely an AM or FM radio. They have the capability to explore other genres and listen to the type of program which will suit their taste. The growing interest of the people for such programs make cause the local radio companies, especially those which are only operating on a small scale, to collapse and be erased in the radio industry. Disk Jockeys or DJs, radio commentators and technical support of such companies may kiss their jobs good bye if the advertisers would see that there are only a few people patronizing these programs. Local radio industries operate based on the number of people who listen to their programs. They adjust to the tastes of the listening public in order to convince companies to advertise their merchandise in their programs. Advertisers will only waste their resources if there are no significant number of people who are listening to their programs. Aside from employees of the local radio companies, people who specializes on advertisement for radio may also lose their jobs. They will have to shift their interest for television advertisement or print advertisements. Effect on local terrestrial broadcasters As indicated earlier, satellite radio threatens the existence of local radio companies. The existence of which may not be significant for avid listeners of satellite radios however, for those who are interested in listening to local news, traffic and talk programs, the lose of local radios has a great weight. The advantage of local radios is their regionalization or focus only to a specific locality. News, traffic updates and issues pertaining to the locality are widely aired by such radio companies. Their limited jurisdiction allows them to have better focus with the issues as well as with the programs that they create. Most likely, they will adjust their programs based on the interest of the most people in the locality. They will try to please their market as much as possible and give them the satisfaction that they long for a radio station. They also have an advantage in terms of advertisement since they reach their the people locally and regionally. Local companies can advertise their products with such radio stations, unlike in satellite radios which caters to a wide area. Another advantage thereof is the fact that it is free. There are no special devices or subscription fees that needs to be paid. One only needs his radio in order to have access to the programs (Colliano1). Despite these advantages, terrestrial radios are still on the verge of losing their space in the radio industry. Such phenomenon cannot solely be attributed to the introduction of satellite radios but also because their have lost their edge which is to provide the latest song in the music industry. Through the introduction of MP3s, internet downloads and other music gadgets, the edge of radio continued to fade. The latest songs can be availed of easily through other means than by listening to the radio. This reduces the anticipation from the clients to listen to the latest songs. In addition, radio industries have also abused their good will by infusing too many commercials between their programs (Colliano2). Although advertisements are meant to inform while providing entertainment, too much of it in between programs may irritate the listeners. It suspends their eagerness to listen to the program and thereafter leads to the lose of interest to listen further. Effect on other industries Through the development of satellite radios, other industries are also affected, some positively and others negatively. Among those industries which can benefit from the introduction of satellite radios are cable programs and channels. Aside from television they can have a new avenue to simulcast their programs. Technical and manufacturing industries can also benefit from the manufacture thereof especially if the number subscribers have increased to greater numbers. More subscribers would mean more devices which will ensure the working of the system. The industry which are feared to suffer, aside from local radios is the radio advertising sector. They will have no avenue to market their products if the local radio are abolished by the society. Another industry is the music industry. The local radio provides a good avenue for musicians to advertise their music. The wider the avenue for the launching of their music, the greater is their chance of topping the charts. Rising singers or musicians have lesser chance of introducing their music to a larger audience. Profitability of the Satellite Radios It has been predicted that the two companies which have licenses to operate satellite radios will start to generate great profits by the year 2009. Although it is enjoying profits now, it is still small considering the high cost of maintenance and operations of the system (Seeking Alpha). Financial writer Robert Walberg (2006), indicated in an article that Sirius, one of the two licensed companies to operate satellite radio is in serious trouble with its finances. The company fails to gain significant profit during the span of years that it has been operating. Walberg fears that if the trend continues, then Sirius may face serious financial burdens in the future. The company, however, aims of increasing its profits and presumed that more money will be credited to the company as radio satellites continue to be known globally. Among the factors which contribute to low profit are the high costs for product marketability, limited number of subscribers and the high cost that it pays to those who maintain their radio programs. Compared to the traditional radio which does not pay much for its maintenance, satellite radio operators have more to lose and to earn in order to survive. If the trend continues then, the two companies, Sirius and XM may also face downfall. Sirius intends to increase it market and gain more subscribers in order to generate higher profits and more investors in the future. Nevertheless, financial analysts still maintain a positive view regarding the viability of satellite radios in the market. The introduction of satellite radios in the market both have its positive and negative effects, however, more than just providing strong competition in the radio industry, satellite radios shows the ingenuity of man and its unending quest for improvement. The use thereof and the elimination of local radios is left to the public to be decided on. Only the people can determined which type of radio broadcasting should dominate the airwaves. The pros and cons should be adequately waived in order to determine the best system which will serve the public at large and at a more beneficial state.

Strategic and Organisational Analysis of Li Ning Co. Ltd. The WritePass Journal

Strategic and Organisational Analysis of Li Ning Co. Ltd. Introduction Strategic and Organisational Analysis of Li Ning Co. Ltd. Introduction1. Examine the problems associated with Li Ning trying to become a global brand. From a marketing perspective, what do you think Li Ning should do to address those challenges?1.1 The competition with local and international rivals in domestic market1.2 Country of origin (COO) effects and the brand image1.3 The product portfolio and RD 1.4 Price decision1.5 International marketing1.6 Distribution agreements1.7 Culture dimensions   2. Considering the current stage of the internationalization of the company, for a market of your choice, develop a foreign market entry strategy.2.1 The choice criteria for the market chosen2.2 The analysis of market entry strategy 2.3   Key marketing mix activities for initial entry to the US marketReferencesRelated Introduction Li Ning Co. Ltd., one of China’s leading sports-apparel makers was founded from a family business by the well-known Olympic gymnastics gold medallist, Li Ning (Meuer and DiVito, 2010). With the reputation of its founder, the extension of its product range, some influential sponsorships and the success of penetrating second- and third- tier cities in the Chinese market, Li Ning has gained the popularity and high brand awareness in China, also a high market share. However, when the international companies began to value and target at the growing Chinese sportswear market, Li Ning gradually faced an intensified competition from international firm like Nike and Adidas in Chinese market, as well as from few local rivals in terms of the price, such as Anta and Peak. Li Ning firm has made some internationalization efforts in recent years like export activities, building its RD centres abroad and other attempts, but it remains overwhelmingly China focused and all the actions aim to es tablish a global brand in Chinese consumers’ eyes. Besides, those internationalization attempts did not bring any considerable revenue. The purpose of this paper is to summarize the challenges which Li Ning may face in the process of establishing its global brands and put forward the feasible international brand strategy and the foreign market entry strategy by referring to some theories of international marketing. The paper proceeds first by discussing some problems associated with Li Ning trying to be a global brand respectively and rational recommendations will be raised during the discussion. Second, the suggestion about the market choice and a foreign market entry strategy will be illustrated in terms of three aspects: the choice criteria for the entry market, the selection of entry mode and some key marketing communication strategies. 1. Examine the problems associated with Li Ning trying to become a global brand. From a marketing perspective, what do you think Li Ning should do to address those challenges? Facing the fierce competition from international and local rivals, the company reaches an agreement to build its international strategy and its global brand apart from protecting the domestic market. However, Li Ning has to take some potential problems into account in the process of internationalization and seven related considerations will be illustrated in this part. 1.1 The competition with local and international rivals in domestic market It can be seen that some well-known international brand such as Nike and Adidas possess relatively high market revenue in Chinese sportswear industry, as well as Li Ning and Anta, two top domestic brands (appendix 1). As far as Li Ning concerned, how to block international brands and also successfully retain the local market is one of the key points to become a global brand. Looking at the entire Chinese market, Li Ning positions itself as a competitive rival in providing price-quality bargains product and penetrates different levels of Chinese markets through its extensive network of distributors, sub-distributors and retail stores, especially in second- and third-tier cities where about 76% of Li Ning’s stores are located (Meuer and DiVito, 2010). However, temporarily leading position may be weakened when global brands gradually shift their focus to less developed regions in China where incomes are rising and consumers’ brand loyalties and shopping preferences have no t been established (Burkitt, 2010). With regard to global sportswear marketers, Nike and Adidas have both aimed at China as their second largest market in the world and put a lot of efforts in first-tier cities of China, like Beijing, Shanghai and Guangzhou. They set up their own retail channels like flagship stores or brand centres respectively in Beijing to create strong brand and retail experience (Meuer and DiVito, 2010). With higher brand positioning and name recognition, international brands are more effective in capturing market share in major cities where Li Ning has not paid more attentions. In order to become a global brand, Li Ning realizes that more emphasis should be put on the market of top- tier cities, but the reality is that Li Ning may have to use lower prices to distinguish its brand in this stiff competition with international firms (Burkitt, 2010). Thus, Li Ning needs to rethink its brand positioning both in local and international markets rather than only rely on price-quality bargains and utilize marketing communications to boost its brand awareness which will be discussed in the later paragraph. 1.2 Country of origin (COO) effects and the brand image In the eyes of most Chinese consumers, Li Ning’s brand identity is always associated with its founder, a national sport hero, so it is easier for Chinese consumers to understand and recognize Li Ning’s logo design, ‘flying red flag and initials of its founder’. Taking consumer ethnocentrism into consideration, domestic consumers may have more favourable attitudes to this brand because of the company’s history and culture. ‘Consumer ethnocentrism’ which was introduced by Shimp and Sharma (1987), refers to the consumer prefers domestic goods due to strong nationalistic beliefs and feelings. As the chief executive of Li Ning Co. said, ‘we want people to look at our brand and feel proud that they are part of something- proud of China’s growth’ (Burkitt, 2010). In addition, with the potential growth and importance of younger segments, Li ning has moved its sight towards them However, using consumer ethnocentrism to affect the purchase decision of young urban Chinese may not work, because Javalgi and White (2002, p. 568) summarized that ‘younger, better-educated and high-income consumers seem to be less ethnocentrism to foreign goods and services’, as well as people who are more open to foreign cultures. Besides, country of origin (COO) also has a negative impact on product and brand evaluation among young Chinese consumers. Many Chinese young consumers, especially teenagers, are keen on the American culture and other western cultures, such as freedom, risky spirit and personality, so they are more likely to choose a global brand which originated from western countries. While in the eyes of international consumers, it is hard for them to make any resonance with Li Ning without related cultural background, and they may perceive its logo as being similar or a copy of Nike swoosh. Similarly, think of the effect of COO, international consumers will use COO cues when they meet the unfamiliar brand and the bias against products generally from developing countries, so some country-image stereotypes, such as low price or low quality may hurt Li Ning’s brand image. Thus, in order to weaken the negative COO perception, Li Ning should alter the consumer attitude towards the product and brand through marketing communication and give its brand a unique identity. Thinking of Nike and Adidas, they both have their unique global identities which are created and preserved by variety communications such as advertising, celebrity endorsement and marketing campaigns. Therefore, there is still a big gap between Li Ning and global brands in terms of brand awareness and brand image. In order to attract the younger generation worldwide, Li Ning need to find out and build its unique brand image through redesign a more differentiated brand logo and slogan, strengthen the product range and design, and also create more targeted marketing campaigns. 1.3 The product portfolio and RD Sportswear can be divided into the following categories: professional sportswear, casual sportswear and fashion sportswear (Euromonitor International, 2007) and there are some overlaps among these groups. Based on the statistic from Euromonitor International (appendix2), it is shown that fashion sportswear, which is the hybrid of casual sportswear and fashion wear, is growing more rapidly than other sportswear segments in China market, so the company which can rapidly discover this potential demand and launch the new products will differentiate itself from rivals. Nike and Adidas have experienced substantial growth after they introduced fashion sportswear series, and yet, in this segment Li Ning has left behind other global brands’ steps. Besides, the global sneaker company has also developed new technologies which would be introduced into high end product to differentiate its brand because international consumers believe that global brands usually develop new products and tec hnologies faster than rivals (Holt et al., 2004), such as the Nike Air max 360 (features a foamless mid-sole technology), the Adidas 1 (includes a microprocessor technology)(scribd.com/doc/39006282/Athletic-Footwear-Industry-Analysis accessed 22 April 2011). In short, there is still a long way to go for Li Ning to catch up with those global brands in new product development and the range of product line, especially in new technologies and high end products. Now Li Ning, which established two RD centres abroad, has recognized product research and development as one of important steps to its internationalization strategy. Making full use of that can help Li Ning develop high-end products which can stimulate its starting point for brand positioning, better satisfy customers’ needs for fashion or performance and also upgrade the brand image. It is also recommended that Li Ning could also try to get access to some professional and well-known designers who have rich experience of customers’ preferences and global fashion trends to design its product. 1.4 Price decision On the basis of pricing strategy prototypes (Solberg et al., 2006), Li Ning falls into the global price follower position. Its price decision can be summarized as follows: first, under the same quality but it is much cheaper than international competitors, meanwhile it provides higher quality, but more expensive than local rivals. Second, Li Ning has to lower down the price in domestic market when larger and more experienced global brands have put pressure on it. Third, Li Ning has limited preparedness for its international attempts and set the price slightly cheaper than Nike and Adidas on its direct access to the foreign market (Meuer and DiVito, 2010). Holt et al. (2004) mentioned that international people think it is rationale for global brand to charge premium price if offering more quality and guarantees than others, three opportunity for Li Ning to reduce the pressure from globally branded counterparts and set a better price to increase its profitability are to identify the ni che market or a new segment or to develop a new technology which is difficult for its rivals to imitate (Solberg et al., 2006). 1.5 International marketing As the increasing level of income and the improving quality of life, the purchase decision among Chinese people less depend on price and functionality, but more on brand image, product design and style (Euromonitor International, 2007). Similarly, the main competition for market share among global brand lies in non-price competitions and the brand loyalty is quite high in this industry, In retrospect to the success of two dominators brands in the sporting goods industry, Nike and Adidas, they have some things in common for their international marketing communication strategy: using extensive marketing campaigns, creative advertising and celebrity endorsements to establish a differentiated brand image (scribd.com/doc/39006282/Athletic-Footwear-Industry-Analysis accessed 22 April 2011). In addition, due to their leading roles in the global market, they have a financial advantage on marketing and advertising expenditures, also on access to endorsement. Even though Li Ning’s canno t compete with them for these marketing resources, it has also sponsored different international sport events and teams, as well as some world well-known sports stars (Meuer and DiVito, 2010). However, those efforts aimed to increase its brand awareness among Chinese consumers rather than international consumers. Facing those difficulties of establishing popularity with brand-conscious consumers, two feasible strategies may help Li Ning create more targeted advertising and marketing campaigns. First, with the growing fashion trend in sportswear, the celebrity in other areas, such as music or film could also produce the similar influence as sports celebrity on younger targets, so using music celebrity endorsement may rejuvenate the brand image and enlarge the potential buying groups which not only includes the sports fans. Second, Li Ning can sponsor some competition like basketball, soccer or running at region level to fit targets’ particular needs. After all, the quality and suitability to the wearer are more convincing than other factors. 1.6 Distribution agreements The management of existing domestic channel distributors and the access to distribution opportunities in global markets constitute another barrier for Li Ning’s internationalization attempts. In terms of the domestic market, Li Ning has took the leading role of establishing a national franchised distribution system in 1993 (http://brand.icxo.com/htmlnews/2008/08/13/1304126_0.htm accessed 26 April 2011) and this entry mode helps its open average 840 stores per year mainly focus on second- and third- tier cities from 2004 to 2008 (Meuer and DiVito, 2010). Second, Li Ning also has its wholly ownership retail stores- 11 flagship stores located in major first- tier cities, but they are only accounts for 7.8% of Li Ning’ total revenues, others generated from sales to franchised distributors ibid. Third, with the rise of e-commerce, Li Ning cooperated with two big online trade platforms, ‘taobao and tanyou’ to launch the online sportswear store in 2008 (http://bra nd.icxo.com/htmlnews/2008/08/13/1304126_0.htm accessed 26 April 2011). This marketing alliance gathers each advantage, and also let Li Ning gain the knowledge about e-channel which has laid a good foundation for setting up its official online store in 2010 and optimizing the new official website ibid. However, the network channel seems be lack of the interaction between customers and products, so the online shop could be better used to disseminate and strengthen its brand image rather than generate revenue. With regard to the global market, the big brand company prefer to select the local distributors with experienced management teams, nationwide distribution abilities and sufficient resources to help them expand its global market rapidly (Frost Sullivan, 2008). Besides, the prominence of a brand among global customers also has an important impact on retailers, so retail stores would be more likely to leave shelf space for the brand which has established a history of good sales (tttp://www.scribd.com/doc/39006282/Athletic-Footwear-Industry-Analysis accessed 22 April 2011). Therefore, the small scale of Li Ning means it has no position to compete with Nike and Adidas in local distributors when entering a new market. Li Ning has to work harder on overcoming the relationships with foreign retailers who may narrow its entry to the foreign market and having its goods seen comparing to its international rivals. Apart from that, franchising and running its own name stores could be considered, both of them can boost company brand presence and are high control of assets, but meanwhile the former one involves complex operation procedure and long time to select and the later relates a high risk and high investment. 1.7 Culture dimensions Hofstede (1994) defined that the category of people which shares the different cultures can be a nation, region , gender culture or age group. Foremost, it is important for Li Ning to assess the cultural differences among regions of China, first-tier cities versus other less developed regions. Consumes in different regions of China have their own distinct characteristics and shopping preferences. Second, ‘power distance’, one of Hofstede’s (1994) national culture differences dimensions, refers to the level of inequality between followers and leaders, should be considered among Chinese young urban consumers who are more fashion demands on sportswear and more brand-consciousness (Frost Sullivan, 2008). In order to display their identity and personal value among their reference groups, they are more likely to spend on global brand. Even one may feel ‘lose face’ if he or she wears with a local brand compared to others who wear the global brand. Thus, if Li Ning not redefines its brand image or just simply pretending to be western, it is unable to compete with those high-ended international brands among Chinese young urban consumers in first-tier cities of China. Additionally, organisation culture management is another factor should not be neglected on Li Ning’s way to be a global brand. The brand culture is derived from the company culture, so the primary task for a strong global brand is to build its unique company culture and transfer the company into a modern management enterprise. Originally, Li Ning grew from a family business which later becomes a big obstacle to the development of the brand. The incoherence between enterprise management mode and its business development urge Li Ning reform the enterprise personnel and recruit professional talents in production, research, marketing and other areas (http://pp.hw01.com/a/1003/10/1210467_2.htm accessed 24 April 2011). Soon afterwards the specialization and standardization of the management help the company experience a rapid growth in business.   2. Considering the current stage of the internationalization of the company, for a market of your choice, develop a foreign market entry strategy. Li Ning makes many efforts step by step and has gained a little experience in exploring the foreign market and during the period of 2008 Beijing Olympic Game, Li Ning has become a brand widely recognized in the west due to the fact that its founder lighted the Olympic flame wearing Li Ning’s shoes magically (English website). Besides, at the end of June, 2011, Li Ning launched its new logo and English slogan to refresh its global brand image. All those efforts make clear that Li Ning has fully prepared to expand to the foreign market and it is worth learning that all possible entry strategies must share one element which the essential for the success of internationalization, that is, commitment (Yip et al., 2000). Specifically, many aspects of the firm should be committed to the entry market: organization structure, human recourses, marketing mix strategies and market research ibid. The rest of this essay will respectively focus on the choice of which country to enter and the related entry mode and key marketing mix activities. 2.1 The choice criteria for the market chosen Based on Whitelock’s (2002) summary of international market entry method, a comprehensive market entry decision cannot disassociate different approaches from one to another, so the choice criteria for the US market relies on the combination of experience-related, resource-related and competition-related considerations (Madhok, 1996). Experience-related considerations drawn from the Uppsala model will be assessed firstly. This model put an emphasis on a firm’s previous experience and the capabilities acquired from that (Madhok, 1996), also considers the concept of ‘psychic distance’ which refers to firms are suggested to entering the market which is psychically close and they have certain knowledge basis to reduce the uncertainties and risks in the process of internationalization (Whitelock, 2002). According to Hofstede’s (1994) summary of five dimensions of national culture differences, China and the Unite State have a big difference in cultural background, and the extended psychic distance seems more problematic for Li Ning in terms of understanding the American culture and being lack of local customers’ preferences and behaviours. However, if Li Ning enters into some cultural similar market, like some Asian countries, lower brand awareness and risks still exist. Besides, the ne gative effect of a Chinese brand also set a barrier to enter in those psychically close markets. Instead, if Li Ning could have a good performance in the US market, then its status of an international brand will not be questioned; at the same time, some previous efforts made in the US market, such as indirect export activities, the establishment of RD centre and a small retail store, can also bring a lot of feedback and information about the US sportswear industry and the local customers. Second, resources-related considerations mainly focus on the characteristic of the environment and interactive networks in it. From the tables in appendix 3, it is shown that US is the largest globally sportswear market and holds in the top position in the total sportswear expenditure per capita in 2008 (approximately $232.8) which was far more than that in China (approximately $7.4). Moreover, the sportswear expenditure in 2008 represented 0.49% of the US GDP per capita (Chu, 2010). On the other hand, the US sportswear industry seemed to be affected by the global financial crisis and increased by only 0.5% in 2010, but this industry may experience a promising rise after the economic recovery (Frost Sullivan, 2010). As far as the relationship with potential consumers is concerned, the prosperity of a good interaction lies in effective marketing strategies including celebrity endorsement, creative advertising and technological expertise in product design ibid. Similarly, those style- conscious and image-conscious consumers respond will them with more brand-consciousness and stronger brand loyalty. In terms of competition-related considerations, two elements should be addressed: the intensity of competition in the entry market and Li Ning’s strategic brand positioning. Undeniably, the sportswear industry of US market is a relatively mature industry which is dominated by a few large firms, such as Nike and Adidas who have already gained their strong brand image; Nike’s products are considered to be high quality and stylish, while superior performance and professional are associated with Adidas (copy). Additionally, there are some relatively high entries barriers set by them, such as higher brand awareness, unique brand image, and established agreements with big named athletes, celebrities and retailers. They even launch the product for every sector of the market in terms of price and intended purpose (for performance, lifestyle or fashion) ibid. However, some smaller firms which specialize in particular purpose of shoes can also successfully capture particular segm ent in the US market, such as K-Swiss in tennis, Vans in skate and lifestyle shoe ibid. In summary, there are three reasons to support Li Ning enter into the US market: First, previous efforts made and the network built in that market. Second, the big US sportswear market size and the potential market opportunity seem very attractive for Li Ning’s foreign expansion. Third, the success cases of sportswear firms who target at the niche market or design for a particular activity in such a competitive environment also contribute to Li Ning’s entry strategy. 2.2 The analysis of market entry strategy After deciding which market to enter, the firm should concentrate on how to go there, that is the selection of entry mode. Yip et al. (2000, p.15) stated that various entry modes-export strategies, licensing, franchising, joint ventures and others â€Å"differ in the degree of control the firm exerts on foreign operations.† Several recommendations on that will be given then. First, Li Ning has adopted a few entry modes to test the US market previously, including indirectly exporting its products to the American market at the beginning of the 1990s, building a small RD centres in Portland in 2008 and more recently establishing its first US retail stores in Portland (case) and the purpose of doing that is to acquire some local resources and experience to better understanding the US market. Because of the fierce competition in the US sportswear industry, great control on channels, high brand presence and local expertise should be Li Ning’s priority to select the entry mode, so the suitable entry strategy could be the combination of direct export through both company owned overseas facilities and some local well-known retailers, such as Footlocker, Finish Line, and franchising. Meanwhile, those entry modes involve relatively moderate control and investment in marketing channel activities by the parent firm (Goodnow and Hansz, 1972), as well as certain risks. Besides, the United States market which shows a greater equality among society level and has a more stable cultural environment could be an advantage to pursue an entry strategy involving greater control and investment in marketing channel activity. Second, the image and positioning of distributors or partners is a very important criterion. Based on Arnold’s (2000) seven rules of international distribution, it is not necessary to look for the best distributor who has already served major customers with similar product line. The choice of partners should regard the distributor with an image or strategy which is in line with the brand image Li Ning wants to maintain. For example, if Li Ning decides to position itself as mid- to high-end sportswear marketer in the US market, it should not choose any discounted retailer or other partners who may lower Li Ning’s brand image and may cooperate with some retailers who specialize in stocking goods with high price point and the newest trends. Third, the e-commerce of the United State is well developed, but online stores are only used by few shoes retailers and sportswear makers, so it is too early to evaluate its effects. However, making full use of the e-commerce can make up Li Ning’s limited access to local distributors and sports celebrities, and this business model is cost-saving and low risky. However, choosing the right entry mode is only the necessary condition due to the possibility of country-specific problems and contingency. In order to enhance the possibility of successfully entering a new market, some cultural dimensions between China and Unite State cannot be neglected. First, according to Hofstede’s (1994) summary of dimensions of national culture differences, China (20) and Unite State (91) lie in the two extreme sides of the individualism dimension which indicate China is a society with collectivist culture and strong relationships among members, families and groups, while the population of the United State are more individualistic and self-reliant attitudes and relatively loose bonds with others ibid. This difference may result in consumers’ various responds to promotion strategies. Word of mouth and reference groups seem more effective among Chinese consumers. Second, similarly, the comparison in power distance dimension also displays a big gap. There is a high level of inequality of power and wealth within the Chinese society that means consumers more prefer to choose the brand which is desired by many people or can represent their social status and high standard of living; however the United States shows a greater equality among society level and has a more stable cultural environment. Thus, an in-depth research about the real reason for US consumers’ brand loyalty needs to be conducted, whether the unique brand image, celebrity effects or the product design. 2.3   Key marketing mix activities for initial entry to the US market The related products and marketing mix activities should meet the common needs of local customers, so before achieving the US market, the firm should identify the US sportswear market segment and decide its product and brand positioning. Li Ning does not have clear targeted segmentation in China and the brand positioning is also very vague, but compared with other rivals in domestic market, Li Ning’ brand tends to focus on mass to mid-end markets both in sports footwear and apparel and the price also set in the middle level (Chu, 2010). Next, some specific suggestions will be given in the following aspects: product portfolio, brand positioning, price decision and the marketing communication strategy. First, sports products can be designed for various sports areas. Li Ning positions itself as the global brand for running and badminton because of the fact that Adidas covered football area and Nike firmly held the basketball area worldwide (case). Linked to the condition in the US market, running footwear has been experiencing the biggest growth and its sales accounts for 25% of total athletic shoe sales (copy). Thus, the running product is suggested to be the focused product category for Li Ning. Then according to the consumer-specific usage with the running product, consumers can be divided into three segments: performance-orientated, causal-orientated and fashion-orientated customers; and this division can also be used in the domestic market. Another point cannot be ignored is the unity of product size system with the target region must be implemented because normally foreign people have larger-size feet. Li Ning has experienced the consequence of this defect by closing its Maast richt store in Netherlands (Meuer and DiVito, 2010). Actually, Li Ning has learned from the former lesson and remodelled the size of its product with the same method which Nike and Adidas have used. Regarding the brand positioning, Li Ning needs a strategic brand positioning to break out the US market. Li Ning has currently developed a big multi-brand family in domestic market including the well-known Li Ning brand, the French top outdoor brand- AIGLE, the international leading brand in badminton and pingpang- Hongshuangxi and a hypermarket brand advocated fast fashion- ZDO. In order to avoid foreign consumers linking the low price to the brand and lower the brand image, it is better to only establish and launch the high-end brand in the US market at first. Thinking of the price decision of the US market, Nike, such a big global brand, also launches low price product to reach all areas of the market (copy), so it is risky to compete with them in the US market by adopting a low price strategy. To be a global price follower is more appropriate for Li Ning to first enter the US market, so Li Ning need to obtain some formal marketing research about market intensity information and the average retail price of the US market from local agencies and rivals’ company reports, then picks up the leading competitor based on the product positioning and set the price which closely follows its rival’s price of similar product. Furthermore, the price decision should always be in line with the brand positioning. As Nagle and Holden (1995) claimed, price can be used as a competitive tool only when the company seeks more advantages by offering a less expensive product but with same values than its competitors. Thus, overall middle to high pri ce brackets should be applied in the US market due to the high brand positioning of Li Ning’s product. Finally, referring to the marketing communication strategy, creative advertising, celebrity endorsement and sponsoring events all play an important role in helping the company build a good brand image and gain the popularity in the US market. On one hand, the design of local advertising is very important. Li Ning can cooperate with some local professional agencies specialize in branding and advertising which may maximize their local resources, knowledge and experience to better deliver the brand message. On the other hand, although the excellent performance on 2008 Beijing Olympic Games has vigorously promoting Li Ning’s brand to the whole world, owing to those global brand’s unbeatable economies of scale and scope as well as financial advantages in their home market, Li Ning has to make use of some specific local collaboration or sponsorship to promote its products, such as the athletics competition at regional or national level, the NBA basketball competition, some lo cal running community. References Arnold, D. (2000), â€Å"Seven Rules of International Distribution†, Harvard Business Review, Vol. (Nov-Dec), pp. 131 – 137. Burkitt, L., â€Å"Li Ning takes on Nike, Adidas†, The Wall Street Journal, Index 18, September 29, 2010. Hofstede, G. (1994), â€Å"The Business of International Business is Culture†, International Business Review, Vol. 3(1), pp. 1-14. Holt, D.B., Quelch, J.A. and Taylor, E.L. (2004) â€Å"How Global Brands Compete†, Harvard Business Review, September, pp. 68 – 75. Javalgi, R.G. and White, D.S. (2002), â€Å"Strategic Challenges for the Marketing of Services Internationally†, International Marketing Review, Vol. 19, pp. 563-582. Meuer, J. and DiVito, L. (2010), â€Å"A Grand Entrance? Li Ning’s Emergence as a Global, Chinese Brand†. RSM Case Development Centre, www.ecch.com Solberg, C.A. (2008), â€Å"Product Complexity and Cultural Distance Effects on Managing International Distributor Relationships: A Contingency Approach†, Journal of International Marketing, Vol. 16. (3) Whitelock, Y. (2002), â€Å"Theories of Internationalization and Their Impact on Market Entry†, International Marketing Review, Vol. 19(4), pp. 342-347. Yip, G.S., Biscarri, J.G. and Monti. J.A. (2000), â€Å"The role of the Internationalisation Process in the Performance of Newly Internationalising Firms†, Journal of International Marketing, Vol. 8(3), pp. 10-35. Online Sources Chinese No.1 Sportswear Brand- Li Ning’s World [online]. 10 March 2010. Available from http://pp.hw01.com/a/1003/10/1210467_2.htm [accessed on 24 April 2011] Economics of Management and Strategy, Tufts University, Medford, Massachusetts, Athletic Footwear- Industry Analysis [online]. 01 May 2006, Available from scribd.com/doc/39006282/Athletic-Footwear-Industry-Analysis [accessed on 22 April 2011] Euromonitor International. Industry Overview [online]. 2007. Available from guococap.com/marketSensor/IPO_Prospectuses/01368/E113.pdf [accessed on 20 April 2011] Frost Sullivan. Industry Overview [online].   26 May 2008. Available from hkexnews.hk/listedco/listconews/sehk/20080526/03813_342257/E112.pdf [accessed on 20 April 2011] Frost Sullivan. Industry Overview [online]. 01 Feb 2010. Available from http://pg.jrj.com.cn/acc/HK_DISC/stock_NT/2010/02/01/00953_000934073_9.pdf [accessed on 20 April 2011] The History and Development of Li Ning’s Brand [online]. 13 August 2008. Available from http://brand.icxo.com/htmlnews/2008/08/13/1304126_0.htm [accessed on 26 April 2011] Li Ning New Logo, New Slogan, New Image [online]. 01 July 2010. Available yoger.com.cn/info.asp?infoID=6486 [Accessed on 28 April 2011]

Honest Abe essays

Honest Abe essays After reading the bookLincoln?, I can see exactly why Abraham Lincoln is known asHonest Abe?. Basically saying Lincoln was still your typical politician because he would still tend to beat around the bush on many touchy subjects, but always seems to get to the point and make his point very valid. It was said that Lincoln wrote a lot of his own speeches that he was known greatly for and, in fact, many listeners of Lincoln's speeches had to wait for him to warm up and it was at this time when he caught the spectator's spirits on fire. Another crucial fact is that Lincoln was a great lover of the works by Shakespeare and he even liked to useful portions of works such as Julius Caesar and Macbeth.We can not escape history. We of this congress and this administration, will be remembered in spite of ourselves. No personal significance, or insignificance can spare one or another of us. The fiery trial through which we pass, will light us down, in honor or dishonor, to the latest generation. ? Quoted Lincoln (Lincoln pg. xxiv). Lincoln was also known to be a devout Christian and he use words likeAlmighty? in his speeches. In Lincoln's letters to Mary S. Owens it seems as if he is writing letters to a woman named Mary of which he is courting or has a strong friendship with. In the letters he is telling Mary the happenings of Springfield, which is where he is at and is telling her that if she wants to come there then she can but says that she would not be satisfied because she would not be used to living in a back woods area like he is in. For example,I am often thinking about what we said of your coming to live at Springfield. I am afraid you would not be satisfied.? says Lincoln to Mary S. Owens (Lincoln pg. 10). I believe the only reason this is of any relevance is because it shows the humble starting point of Lincoln's political career. The next issue talked about inLincoln? is the speech and writing to Sangamo coun ...