Examining The Benefits Of Globalisation Economics Essay

Examining The Benefits Of Globalisation Economics Essay Globalisation has benefited everyone. It helped all the people to increase their living standards, brought advantages to organisations and businesses and enabled economies to develop. Discuss. Proponents of globalisation are of the view that it has benefited everyone and helped to pull millions upon millions out of poverty. However a close analysis of the affects of globalisation tell a very different story. While it is true that globalisation has benefited many, it has had an equally devastating effect on the lives of many others and made true development more of a mirage rather than a reality (Dunning, 2003). This essay will critically analyse and discuss the benefits and disadvantages of globalisation and will conclude by either agreeing or disagreeing with the above statement. Even though globalisation is the buzzword today, it has been in existence in some form or another for over a century. After World War II many regions of the world that were reeling from the devastating effects of the war, came together to create trade agreements that would help each of those regions to grow in the post war era. The European Union is one such trade agreement as is the NAFTA agreement, GATT, APEC, ASEAN and many others. Due to the advances made in technology, especially in the telecommunication industry, globalisation saw a rapid increase in the latter part of the 20th century (Guillen, 2001). The ultimate goal of globalisation was to liberalise formerly closed economies, integrate national economies and create one huge global economy that would not only decrease trade barriers and increase trade and corporation but would also help poorer and developing nations to become industrialised thus uplifting the living standards of billions (Grewal, 2006). While the goals and objectives of globalisation are noble, such goals and objectives are not very easy to achieve. Even though the above may look good in theory, in reality it is easier said than done and usually causes more damage to economies, the social fabric of nations and the environment as a whole (Suà ¡rez-Orozco Qin-Hilliard, 2004). With the onset of globalisation in its current form, which began in the late 1980s and has been gathering steam, many manufacturing organisations in the west have seen their profitability increase. The reason for this positive effect on the bottom line has been chiefly due to the fact that globalisation allowed these companies to relocate their manufacturing plants to developing countries, where labour is cheap. In doing so they were able to reduce the cost of the products and become more profitable. While such a relocation, may have benefited the developing economy where the plant was relocated to, it left huge numbers of individuals unemployed in its home country (Helbling, Batini Cardarelli, 2005). Thus it can be stated that while one economy gained jobs and was able to uplift the living standard of many, another economy lost jobs, which had an equally devastating effect, while the company in question continued to earn profits and prosper. During the 1990s and to date, India is one such country that has benefited immensely from globalisation. Throughout the past decade or more many European and North American, technology companies have outsourced their software development to India, which rose up to the challenge and has become a global IT giant. While such a growth in employment has benefited the country and helped to create a new middle class, globalisation has not been as favourable to its closest neighbour Sri Lanka. Sri Lanka with a literacy rate of 90% has seen much foreign direct investment in the garment sector. While this has helped the country to keep unemployment levels down, the semi-skilled or low skilled nature of the jobs that are available to its citizens does not help the country to grow and prosper to the level that globalisation has aided India (Schmidt Hersh, 2000). On the contrary, Sri Lanka has seen a severe increase in underemployment of its university educate youth, who due to the lack of white collar jobs, have had to resort to working in the garment industry (Kiggundu, 2002). As is apparent from the above, while globalisation benefits one segment of the population, its affects are not equal, on the contrary they are mixed, thereby it can be stated that the above statement is not accurate in its view of globalisation. Proponents of globalisation often cite the fact that increased demand for export from developing countries, create an inflow of foreign exchange revenue and increases employment opportunities, which in turn helps the country to develop (Bhagwati, 2004). While this is true to some extent, there is an equally disadvantageous side to this phenomenon. In order for employment opportunities to increase in an economy, it requires output growth to exceed productivity growth. At the same time for profitability to increase, it needs productivity growth to outpace output growth. This conflict in the two, results in companies opting to increase productivity at the expense of output growth. Thus even though the developing economies have bent backwards to attract foreign direct investment by providing tax cuts, capital and natural resources etc, in the hopes of boosting domestic employment and earning foreign exchange revenues. The companies that enter the country usually plunder the capital and n atural resources made available to them (Samli, 2002). And instead of making use of the labour that is available to them, they automate their production processes to a great extent. Further they return much of the profits earned to the parent company and its shareholders who are often resident in developed economies (Smith Debrah, 2002). Here again it is apparent that while globalisation has helped businesses to develop and become more profitable, the benefits of globalisation are often enjoyed by the developed economies, rather than the developing economy that were supposed to benefit, in the first place. As a part of the initiative to liberalise an economy, most developing economies were forced to reduce welfare spending in terms of healthcare, education and social assistance. Further in order to attract foreign direct investment into the country, most of these economies were required to relax their stringent labour laws, which have resulted in the exploitation of workers (Murshed, 2002). While it is true that many multi-national companies are now operating in developing economies and have helped to increase employment levels within the country. The lack of strong labour laws, allow these companies to pay meagre wages to their employees and not a living wage as is the ethical thing to do. This combined with the lack of universal health care and education has a devastating affect on the workers (Brysk, 2002). While they may have a job and are able to earn a living, their wages are usually insufficient for paying for more than food and rent. Thus making it impossible for this segment t o educate their children adequately (Mittelman, 2002). Thereby causing a vicious cycle, where the children end up in low skilled or semi skilled jobs much like their parents and unable to breakout of poverty (Midgley, 2007). The lack of education and healthcare also has a catastrophic affect in the long term for the economy, as it will never be able to make the leap from being a developing economy to a developed economy as long as its citizens lack a strong education (Micklethwait Wooldridge, 2001). Further this lack of education not only will increase the wealth disparities within the economy, but it will also continue to increase the disparity between developed and developing nations in the long run. Based on the discussion above it is apparent that globalisation has been very advantageous to businesses. While it is a fact that some countries like India and China have benefited immensely from globalisation and seen the prosperity of their citizens increase to unprecedented levels, other countries have not been so lucky. On the contrary, globalisation has succeeded in further increasing the social challenges faced by these countries and pushed the dream of becoming a developed economy further out of their reach (Micklethwait Wooldridge, 2001). Therefore it can be stated that the statement Globalisation has benefited everyone. It helped all the people to increase their living standards, brought advantages to organisations and businesses and enabled economies to develop is only partially true.

The Essence Of Mbo Business Essay

The Essence Of Mbo Business Essay The use of management objectives was first widely advocated in the 1950s by the noted management theorist Peter Drucker. It can be defined as a process whereby the employees and the superiors come together to identify common goals, the employees set their goals to be achieved, the standards to be taken as the criteria for measurement of their performance and contribution and deciding the course of action to be followed. The essence of MBO is participative goal setting, choosing course of actions and decision making. An important part of the MBO is the measurement and the comparison of the employees actual performance with the standards set Ideally, when employees themselves have been involved with the goal setting and the choosing the course of action to be followed by them, they are more likely to fulfill their responsibilities. THE PROCESS OF MBO: Management by objectives (MBO) involves setting specific measurable goals with each employee and then periodically discussing his/her progress toward these goals. The term MBO almost always refers to a comprehensive organization-wide goal setting and appraisal program that consist of six main steps: Set the organizations goals. Establish organization-wide plan for next year and set goals. Set departmental goals. Here department heads and their superiors jointly set goals for their departments Discuss and allocate department goals. Department heads discuss the departments goals with all subordinates in the department (often at a department-wide meeting) and ask them to develop their own individual goals; in other words, how can each employee contribute to the departments attaining its goals. Define expected results (set individual goals). Here, department heads and their subordinates set short-term performance targets. Performance review and measure the results. Department heads compare actual performance for each employee with expected results. Provide feedback. Department heads hold periodic performance review meetings with subordinates to discuss and evaluate progress in achieving expected results. MBO appraisals are suitable for measuring quantitative and qualitative output of high-level employees. High-level employees such as managers generally report to directors, according to hierarchy and the chain of authority present in many organizations. Therefore, managers and the directors or executives they report to often work together to establish MBO goals for this type of appraisal. Performance Appraisal : A Look Employers use performance appraisals to measure both the quantity and quality of production. Performance appraisals typically are conducted annually, and employers often base decisions about salary raises, wage increases and year-end bonuses on employee performance. An MBO appraisal is just one method among several types of performance measurement tools. Others include: Graphic Ratings Scales, Narrative Evaluations, 360-Degree Appraisals, Peer Evaluations, Forced Ranking Or Differentiation Appraisals. One well-regarded and widely used approach to performance appraisal is called MANAGEMENT BY OBJECTIVES (MBO). By definition, under this method, you evaluate your employees on the basis of results. MBO is more than performance appraisal its a construct for managing the entire organization. Its breadth includes the organizations vision, values, strategies, goals, and performance measurement. MBO (management by objectives) methods of performance appraisal are results-oriented. That is, they seek to measure employee performance by examining the extent to which predetermined work objectives have been met. MBO begins with managers at the top of the company setting goals. Then managers and employees at each successively lower level develop their own goals. Employees goals are designed to support the goals of their own managers. In this way, the entire organization is linked together in the pursuit of objectives. The focus is on outcomes that are clear, specific, measurable, and supported by action plans, benchmark dates, and deadlines. All aspects of the goal-setting process also apply to the employees personal and developmental goals, such as building their skills or knowledge base. Once an objective is agreed, the employee is usually expected to self-audit; that is, to identify the skills needed to achieve the objective. Typically they do not rely on others to locate and specify their strengths and weaknesses. They are expected to monitor their own development and progress. After employees meet with their managers to establish their goals and action plans, the employees return to work newly energized and focused on specific short-term and longer-term targets. Simultaneously, their managers monitor the employees performance, provide coaching and support, remove barriers or help employees overcome them, and make adjustments and course corrections as necessary. The employees performance and progress are clear, measured, documented, and transparent every step of the way. Employees are highly motivated through MBO because theyve been able to actively participate in the process of setting goals, instead of simply having the goals dumped on them. Their involvement in this type of decision-making helps meet many of their higher-level needs for accomplishment, achievement, recognition, and self-worth. MBO brings a wide range of advantages to the appraisal process: It helps build relationships between managers and employees. MBO includes a great deal of contact and communication between managers and their employees, which builds camaraderie, communication, and trust all key elements in strengthening teamwork. It fosters a comfortable climate in the workplace. MBO helps build an atmosphere of respect and trust within a given department and beyond. Because managers work directly with employees to identify and solve problems, MBO improves the quality of decision-making and problem solving. Its fair. Employees are evaluated on the basis of their performance and attainment of goals, which is regarded as fair and energizing. Its quick and easy. Performance evaluation forms associated with MBO are a breeze to complete. Typically, they spell out each objective as established at the beginning of the cycle, and then provide a space for the manager to summarize the results. Some MBO forms also include a scale that asks for a numerical assessment of the employees success in meeting their goals. These scales guide the managers in the rating process by including specific descriptions of excellent, good, fair, and poor levels of goal attainment. Management by Objectives and performance appraisal: The MBO approach overcomes some of the problems that arise as a result of assuming that the employee traits needed for job success can be reliably identified and measured. Instead of assuming traits, the MBO method concentrates on actual outcomes. If the employee meets or exceeds the set objectives, then he or she has demonstrated an acceptable level of job performance. Employees are judged according to real outcomes, and not on their potential for success, or on someones subjective opinion of their abilities. The guiding principle of the MBO approach is that direct results can be observed, whereas the traits and attributes of employees (which may or may not contribute to performance) must be guessed at or inferred. The MBO method recognizes the fact that it is difficult to neatly dissect all the complex and varied elements that go to make up employee performance. MBO advocates claim that the performance of employees cannot be broken up into so many constituent parts as one might take apart an engine to study it. But put all the parts together and the performance may be directly observed and measured. CONCLUSION: Although OD emphasizes the macro aspects of the organization, the individual is not ignored. In fact, individual developmental aspirations are identified and integrated with management development; managerial needs are translated into personal development objectives and action plans. Management by Objectives, the widely acclaimed and applied approach to management, has undergone considerable change over the years. In its early development, MBO was primarily an appraisal tool. Next, it integrated individual needs with organizational objectives. MBO was then expanded to include long range, strategic planning. But to remain a viable and effective managerial system, MBO must continue to evolve. New knowledge, where appropriate, must be merged with MBO. The inputs to the organization are transformed through the MBO process to produce the outputs. To be sure, this new MBO model is complex, but so is management. MBO must continue its evolutionary path and continue to aid, not add to, the work of the manager.

Israeli Etgar Keret’s The Bus Driver Who Wanted to be God, and Iranian

Abstract Colonization most assuredly produced altered states of consciousness, in which the fundamental sense of â€Å"rightness† was understood to be subjective and culturally constructed, rather than naturally true. In conjunction with this realization came the idea that identity is not something personally owned, but rather, something inscribed upon a body or culture by an agent of power. In this case, identities were projected onto the natives by the imperialists. The colonial enterprise, particularly the European imperialist projects in the east, has forever changed concepts of identity, otherness, and power in both the Occident and the Orient. Both sides were indisputably and irrevocably altered; however, the effect upon native cultures (the colonized) was far greater than the effect on the imperial cultures (the colonizers). European colonizers were able to cherry-pick the greatest parts of â€Å"new† culture—their art, their music, their architecture, or their cuisine—and adopt or adapt it to modern imperial life. In many ways, the cultural practices and artifacts of a newly colonized civilization were treated like the natural resources (oil, silk, spice) the Europeans were there to gather: they mattered only in their usefulness to the empire. Unlike their imperial counterparts, however, the native peoples had no choice which customs and practices to adopt, and which to discard. The sheer military might and natur e of the colonial enterprise demanded that the colonized completely adapt to the social and cultural norms of the empire. In essence, then, the colonized were forced to lead a life of double consciousness, wherein they participated in customs and practices and obeyed laws and regulations in which they did ... ...periences with Western ideology, Etgar Keret and Marjane Satrapi offers methods for claiming identity that do not revolve around blind attempts to return to cultural roots. Works Cited Ghanem, Mary, and Jihad Makhoul. "Displaced Arab Families: Mothers' Voices on Living and Coping in Postwar Beirut." Journal of Middle East Women's Studies 5.3 (2009): 54-72. Web. 10 Dec 2009. Keret, Etgar. The Bus Driver Who Wanted to be God. New York: St. Martin's Press, 2001. Print. Said, Edward. Orientalism. New York: Random House, 1978. Print. Satrapi, Marjane. The Complete Persepolis. New York: Pantheon, 2003. Print. Troen, S. Ilan. "Frontier Myths and Their Applications in America and Israel: A Transnational Perspective." Journal of American History 86.3 (1999): 55 paragraphs. Web. 10 Dec 2009. . Israeli Etgar Keret’s The Bus Driver Who Wanted to be God, and Iranian Abstract Colonization most assuredly produced altered states of consciousness, in which the fundamental sense of â€Å"rightness† was understood to be subjective and culturally constructed, rather than naturally true. In conjunction with this realization came the idea that identity is not something personally owned, but rather, something inscribed upon a body or culture by an agent of power. In this case, identities were projected onto the natives by the imperialists. The colonial enterprise, particularly the European imperialist projects in the east, has forever changed concepts of identity, otherness, and power in both the Occident and the Orient. Both sides were indisputably and irrevocably altered; however, the effect upon native cultures (the colonized) was far greater than the effect on the imperial cultures (the colonizers). European colonizers were able to cherry-pick the greatest parts of â€Å"new† culture—their art, their music, their architecture, or their cuisine—and adopt or adapt it to modern imperial life. In many ways, the cultural practices and artifacts of a newly colonized civilization were treated like the natural resources (oil, silk, spice) the Europeans were there to gather: they mattered only in their usefulness to the empire. Unlike their imperial counterparts, however, the native peoples had no choice which customs and practices to adopt, and which to discard. The sheer military might and natur e of the colonial enterprise demanded that the colonized completely adapt to the social and cultural norms of the empire. In essence, then, the colonized were forced to lead a life of double consciousness, wherein they participated in customs and practices and obeyed laws and regulations in which they did ... ...periences with Western ideology, Etgar Keret and Marjane Satrapi offers methods for claiming identity that do not revolve around blind attempts to return to cultural roots. Works Cited Ghanem, Mary, and Jihad Makhoul. "Displaced Arab Families: Mothers' Voices on Living and Coping in Postwar Beirut." Journal of Middle East Women's Studies 5.3 (2009): 54-72. Web. 10 Dec 2009. Keret, Etgar. The Bus Driver Who Wanted to be God. New York: St. Martin's Press, 2001. Print. Said, Edward. Orientalism. New York: Random House, 1978. Print. Satrapi, Marjane. The Complete Persepolis. New York: Pantheon, 2003. Print. Troen, S. Ilan. "Frontier Myths and Their Applications in America and Israel: A Transnational Perspective." Journal of American History 86.3 (1999): 55 paragraphs. Web. 10 Dec 2009. .

Growth for the Future: Biofuels Essay -- Economics Economy Papers

Growth for the Future: Biofuels The internal combustion engine, so vital for sustaining America's burgeoning economy, is omnipresent in most vehicles from the greatest semis to the smallest economy cars. The combustion engine is also a mode of transportation that is fraught with problems, both costing billions of U.S. dollars to fuel and causing enormous air pollution problems. Iowa, the nation's largest producer of corn and a leading agricultural state, may have the solution to the problems caused by the enormous burden of gasoline and diesel powered engines, biofuel. Biofuels coming out of Iowa include biodiesel, a diesel fuel additive, and ethanol, a gasoline additive. Both are locally produced products that reduce domestic dependence on volatile foreign oil prices, decrease polluting emissions and stimulate the local economy. Every internal combustion engine is built the same. It is composed of a varying number of fuel-saturated gas-filled chambers called cylinders. Each cylinder is expanded and compressed by a piston, driven by a rotating arm called a crankshaft. Every time the piston is pushed into the cylinder, gas inside is compressed to nearly 6 to 10 times atmospheric pressure. At this instant of maximum pressure, the gasoline-saturated air is ignited by a spark and the mixture literally explodes, causing the gas to expand rapidly and force the piston back down, then to come back up again to repeat the process20. When the piston is pushed back down, the crankshaft rotates and performs work which can be harnessed to drive the vehicle. This process, unfortunately, does not capture all of the energy contained in the gasoline, in fact it only uses about one-fifth of the available chemical energy20. Diesel engine... ...hew, "A New Breed of Fuel," Canadian Business. (2002). 14Paulos, Bentham, "Renewable Energy Proposals Are Inadequate, Say Environmental Groups," American Wind Energy Association. (2000). 15Stipp, David, "Why Ethanol Is No Longer a Punch Line," Fortune. (2000). 16Iowa Department of Natural Resources, Energy Bureau, "Switch grass and Other Energy Crops." http://www.sate.ea.us/dnr/energy/pubs/irerg/switchgrass.htm 17Economagic.com, "Unemployment Rate: Iowa." http://www.economagic.com. (2003). 18Iowa Corn, "Where Does America's (Iowa's) Corn Go?" Educational Information. http://www.iowacorn.org/consumption.htm. (2002). 19Renewable Fuels Association, "U.S. Ethanol Industry Today." http://www.ethanolRFA.org. (2002). 20Kraushaar, Jack J. and Ristinen, Robert A., Energy and the Environment, John Wiley and Sons, Inc., New York, 2002), pp. 73-77, 293-299.

Lost Identity Found Essay -- Cultural Identities Culture Identity Essa

Lost Identity Found Stuart Hall writes that â€Å"Identity is not as transparent or unproblematic as we think† (Hall 392). Hanif Kareishi, a visual minority growing up in racially charged England, experiences uncertainty and frustration relating to his sense of identity. Salman Rushdie, author of short stories â€Å"The Courter† and â€Å"Good Advice Is Rarer Than Rubies,† develops characters who experience similar identity crises. In his piece, â€Å"The Rainbow Sign,† Kareishi explores three responses to encounters with a foreign and hostile culture: outright rejection of the foreign culture, complete assimilation into foreign culture, or adoption of a synthesis of the two cultures. Kareishi himself embraces each of these different approaches at different times in his life, while characters in Rushdie’s short stories embody specific approaches. Kareishi’s discussion of the interaction between race, class, nationhood, and citizenship points to the need for a lo osening of racial and class distinctions in favor of a multicultural, liberal approach for achieving a successful synthesis of cultures. The protagonist of â€Å"Good Advice Is Rarer Than Rubies† adopts the rejectionist course when confronted with the possibility of being introduced into a foreign British culture. Miss Rehana, the Indian protagonist of the short story, travels to a British Consulate in India to acquire a British passport. An arranged engagement at the age of nine forged a connection between Miss Rehana and an older man with British citizenship, Mustafa Dar. Though Miss Rehana had not seen Mustafa Dar for many years, the engagement provides the opportunity for her to join him in England. Miss Rehana is poor; her parents are dead. A life in Britain promises better material c... ... calls for white British to adapt and compromise with immigrant culture. In light of Hall’s commentary, one can only hope that transforming Pakistani and British cultures converge. The other option, of course, is a divergence of culture. Sadly, given the vigilante groups and racial violence present when Kareishi published â€Å"The Rainbow Sign,† it is still not clear that England has embraced multiculturalism. Works Cited Kareishi, Hanif. â€Å"The Rainbow Sign.† London kills me. London: Penguin Books, 1992. 3-37. Hall, Stuart. " Cultural Identity and Diaspora." Colonial Discourse and Post-Colonial Theory. Ed. Patrick Williams and Laura Chrisman. New York: Columbia University Press, 1994. Rushdie, Salman. â€Å"Good Advice is Rarer than Rubies.† East, West. NY: vintage Books, 1994. 5-16. Rushdie, Salman. â€Å"The Courter.† East, West. NY: vintage Books, 1994. 175-211.

Manager: Automobiles and Service Department Essay

Question #1 – Suppose the new-car deal is consummated, with the repaired used car being retailed for $7,100, the repairs costing Shuman $1,594. Assume that all sales personnel are on salary (no commissions) and that general overhead costs are fixed. What is the dealership incremental gross profit on the total transaction (i. e. , new and repaired-used cars sold)? Answer |Sales Revenue | | | Sales of new car |$14,400 | | Sales of repaired-used car |$7,100 | | Total |$21,500 | |Cost of Sales | | | Cost of new car |$12,240 | | Trade in value on used car |$6,500 | | Cost of reconditioning |$1,594 | | Total |$20,334 | |Gross Profit |$1,166 |. Question #2 – Assume each department (new, used, service) is treated as profit center, as described in the case. Also assume in a-c that it is known with certainty beforehand that the repairs will cost $1,594. a. In your opinion, at what value should this trade-in (unrepaired) be transferred from the new-car department to the used-car department? Why? b. In your opinion, how much should the service department be able to charge the used-car department for the repairs on this trade-in car? c. Given your responses to a and b, what will be each department’s incremental gross profit on this deal? Answer 2-a: i) If Paul should take responsibility that he failed to find the rear axle crack. The value of this trade-in should be at least $5,000, which is the number Paul think he could buy from used car auction. If Paul should not take the responsibility Reconditioning charge from Service department =Cost of repairs * Service Department gross profit mark-up = $1594 * ($2,000/$1,480) =$2,154 Value of Trade-in to used-car department =Wholesales price – Reconditioning charge =$6,100 – 2,154 =$3,946 Answer 2-b: As calculation of reconditioning charge from Service department above Answer 2-a. The Service department should charge the repair to used-car department by $2,154 Answer 2-c: i) Use the accounting rule which is done by Brunner for internal transfer cost, it comes out the table of â€Å"Current Split† below to show gross profit of Shuman and all three departments ii) If we let Paul take the responsibility for costing error on used car appraisal, and allow Service department to charge the internal job the same as they would do for external customer. The gross profit would be as shown in the table of â€Å"suggestion for split† below. iii) |[pic] | | |[pic] | | Question #3 -Is there a strategy in this instance that would give the dealership more profit than the one assumed above (i. e. , repairing and retailing this trade-in used car)? Explain. In answering this question, assume the service department operates at capacity. Answer 3: a) Should have Service department do a quick inspection of the used car and find the problem as many as possible, so sales department could have better position and knowledge to negotiate at lower used car allowance. b) Assume the service department operate at capacity, the incremental gross profit on the total transaction should be only counted by $660 (earned by Moyer) – $54 (loss by Fiedler) = $606. If Moyer could sell the new card at less than 10% discount (8% is competitive already) without using used car allowance. The gross profit for the dealership could be more. (10% discount, gross profit = $720 still higher than $606) c) Fiedler could try if the customer is interested to commission his department to sell his card at very minimal charge in addition to the sales result described above in answer 3-b. d) Bianci could quote $2,154 or above if the customer is interested to repair his car in his department. Question #4 Do you feel the three-profit-center approach is appropriate for Shuman? If so, explain why, including an explanation of how this is better than other specific alternatives. If not, propose a better alternative and explain why it is better than three profit centers and any other alternatives you have considered. Answer 4: Yes, we think the three-profit-center approach is appropriate for Shuman because all three departments could run business independently to service both external and internal customers. However, the internal cost transfer should be reviewed and revised to match market bench mark. It would help Shuman Automobiles a) Both new-car and used-car department could have more accurate cost base to make the decision for a sales deal. b) The service department could be motivated to reduce their cost and increase revenue. However, the approach might reduce the level of cooperation among the department and decrease customer benefit of â€Å"one stop shopping† in Shuman. In order to address this potential issue of conflict interest among the department, we suggest the other program could be implemented (1) The entire dealership profit should be also factor in as part of manager’s remuneration. . (2) Service department should give internal job at priority while they operate at capacity, and offer discount charge while they operates over capacity.

Chanel Marketing Plan

Marketing Interim Report By Bilal Rasheed & Hisham Ahmed Executive Summary Chanel’s objective is to provide a sense of luxurious, elegant and fashionable bringing up for women introducing timeless style. If Chanel wants to retain the same kind of brand image then it needs to continue with the same strategies which are currently being applied. However, in order to increase market share, emphasis on mass media and e-commerce would be effective which the competitors are already practicing. Chanel’s vision is’ o be the ultimate house of luxury’.Chanel is an established brand and specializes in haute couture, luxury goods, accessories and ready to wear cloths. With the vast positive change in the global economy, the trends are changing with time like demand for luxury products is on its boom. Company Summary Chanel started back in 1909 and it is operating mainly in europe,asia and most parts of united states. The house of chanel is known for its fashion stores all over the globe. In this new milinoum Chanel stepped up its purchsess in luxury sectors.Chanel offers and is known for fashion apparel ,watches ,eye products and various other fasion able accessories for women. Products and services Product description: Chanel specializes in wide range of products. Famous Perfumes by Chanel include Allure, Chance Eau Tendre and N5, which used to be global perfume leader and is still one the best perfumes in the world. The company offers trendy handbags as well. These emply different leather and locks in order to be adjustable to individuals One of the famous unisex wristwatches line by Chanel is J12.Chanel also has a clothing line for women. Competitive Comparison: Brands like Louis Vuitton, Gucci are strong competitors for Chanel as they have a very strong image amongst the people. Technological needs: Chanel, a luxury goods brand with a long tradition, has evolved into what it is now by constantly adding new innovations to its tradition. Instea d of resting on the business fields where it has proven successful, the company has brought forth new ideas. Technology management refers to business management conducted around sophisticated technological proficiency.Although Chanel was a latecomer to the watch business, Chanel’s commitment to technology is noticeable in the establishment of its own workshop. Chanel’s commitment to technology will be considered through the example of the â€Å"J12,†, Chanel’s first mechanical watch. Market Analysis Target market Target Market Segment Strategy: Chanel customers are women who wants to identify what Chanel represents which is elegance, simplicity, modern and class. Chanel’s cosmetics are targeted to younger consumers but they still retain the classic market which is their strong suit.With the launch of chance perfume, Chanel is targeting women between the age group 18-39. Market Trends: Trends change every now and then and it is important for a busin ess to keep a track of changing trends especially in the target audience. In Chanel’s case changing trends could be more like e. g. ; in accessories, size of pendants or shapes of earrings keep changing with time however, style remains the same and Chanel’s market image is such that what they bring into the market is labeled as fashion. Market Growth:Chanel’s success started from the sale of their famous, world leading perfumes, N5. Later on in 1920’s and 1930’s they decided to launch new perfumes amongst the public to gain more market. Soir De Paris was another fragrance launched after N5. To keep flourishing in the market and to make the business grow, cloths were also being sold under Chanel’s name. In late 1980’s more than 40 boutiques were opened worldwide. This was later followed by other product chains like Shoes, Chanel watches and various other highly priced accessories Industry AnalysisIndustry Participants/Key Players: The key players in the industry same as Chanel would be; * Louise Vuitton * L’Oreal’s Lancome * Calvin Klein * Gucci * Burberry * Alberta Ferretti * Bulgari * Canali Main Competitors/Competitive Analysis: Chanel’s biggest competitors in the market would be L’Oreal’s Lancome who are also focusing mainly on luxury cosmetics along with Chanel creating a very tough competition. Not just this but other renowned brands like Gucci and LV are also equally strong competitors specifically for Handbags and other accessories.Perhaps it’s really hard to dominate in such a market where brand image for competitors is also very strong. Strategy and Implementation Summary Marketing Strategy: Chanel is focusing a lot on developing plans to take an impressive lineage into today’s market. During 1999, Chanel took an initiative to target the age group of people under twenty five which was earlier ignored by the company. It was really important to take some ne w initiatives like this in order to compete with competitive fashion stores like C Pricing Strategy: Chanel is known for its luxurious products around the globe.To Maintain this top quality image products, high prices are being charged for its products. For similar reasons, their products are usually not discounted as it won’t be really consistent for their image at all. Prices for their product are decided and selected entirely by Chanel, France. Promotion Strategy: To grow their market, Chanel focuses more on promoting their new products instead of older ones. For this, their website is updated frequently providing information for all the up to date promotions and also about their new upcoming products, if any.Not just this but to keep up with customers, very clear and easy information is provided for the customers to reach the company and contact them. This would help the company get their feedback and work on it in order to main the relations with customers and satisfy th em. Distribution Patterns: Products by Chanel such as their perfumes are not only sold in their own boutiques but also by other distributers. E. g in Canada, Distributors such as The bay, Luwinna etc are selling their perfumes aswell. Basically chanel uses a comparatively short channel for distribution.Chanel has mostly signed with local distributors in different country along with their own boutiques. This is just to diversify and make the most out of sales. SWOT Analysis Strengths * Very strong brand image * Efficient management with intense training * High quality products Weakness * Poor geographical coverage * Work needs to be done on website as it does not specifies the prices for products Oppertunities * Can look forward to expand more, specifically In asia irorder to gain more market * Keep up with technology Threats * Highly priced and counterfiet productsWeb Plan Summary Website Marketing Strategy: To grow sales and gain a foothold in competitive markets, having so many to ugh competitors, products were sold online directly through their website making it easier for all the customers to get the product. This would definitely enhance their total amount of sales at the end of the day. Development Requirements: * Invest in the emerging markets, open more stores * Increase emphasis on new media technology * Pay more attention to the counterfeit and possible invest in technology to prevent it.