Category: Business Content

Business Content!

Business Content, Opportunity, and Small Business Ideas, Businesses can privately own, not-for-profit or state-own. An example of an Online eCommerce industry is Google Searching Web and also Facebook Social Site.

While a mom-and-pop catering profession is a private enterprise. Every industry requires some form of investment and enough customers to whom its output can sale on a consistent basis in order to make a profit. An organization or economic system where goods and services stand exchanged for one another or for money.

A business (also known as an enterprise, a company, or a firm) is an organizational entity and legal entity made up of an association of people, be they natural, legal, or a mixture of both who share a common purpose and unite in order to focus.

Their various talents and organize, their collectively available skills or resources to achieve. Specific declared goals are involved in the provision of goods and services to consumers. A profession can also describe as an organization that provides goods and services for human needs.

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  • Case Study of the MasterCard Credit Cards Business

    Case Study of the MasterCard Credit Cards Business

    MasterCard Credit Cards Business Case Study; Credit (change) cards have been very big business for several decades. In 2001, over $30 trillion in payments for goods and services were charging using credit cards. The cards have made life easier for many people; because, they do not need to carry large amounts of cash for most purchases. Many people also use the cards as a way to borrow money; because, they need only pay a small percentage of the amount they owe each month, although they usually charge very high-interest rates for the unpaid balance.

    Case Study of the MasterCard Credit Cards Business!

    MasterCard More info: “Mastercard Incorporated (stylized as MasterCard) is an American multinational financial services corporation headquartered in the MasterCard International Global Headquarters, Purchase, New York, United States, in Westchester County. The Global Operations Headquarters is located in O’Fallon, Missouri, United States, a suburb of St. Louis, Missouri.

    Throughout the world, its principal business is to process payments between the banks of merchants; and, the card-issuing banks or credit unions of the purchasers who use the “Mastercard” brand debit and credit cards to make purchases, their Case Study. Mastercard Worldwide has been a public trade company since 2006. Before its initial public offering, MasterCard Worldwide was a cooperative own by the more than 25,000 financial institutions that issue its branded cards.”

    The interest goes to the issuing bank, making credit cards a very profitable service for them. However, the credit card industry is intensely competitive, highly fragmented, and growing at a rate of 3 to 4 per year, making those profits difficult to achieve.

    Visa and MasterCard:

    Visa and MasterCard are associations of banks that issue credit cards, you understand their Case Study. They market their cards, often several different cards, and provide support for the transactions; making networks available to collect and use the data. The most popular credit card has been Visa, with 44.5 percent of the business in 2001; while MasterCard is number two with 31.6 percent. Being very much second to Visa, MasterCard is trying to overtake it.

    While it had been number two since the beginning, MasterCard began to emerge from “its doldrums” in 1997, according to Robert Selander, MasterCard’s CEO. It began to realize it might really be able to overtake Visa and become number one. To reach that goal, MasterCard needed to present itself so that the potential user will choose a MasterCard rather than a Visa. It also had to spur the bank issuers to promote MasterCard cards rather than those of their competition.

    In 1998, when MasterCard had only 28.8 percent of the credit card charge volume; while Visa’s was over 50 percent, MasterCard decided it needs a new computer center; partially to handle all the data as the company’s business expanded as a result of its drive to overtake Visa. It also foresaw growth as a result of its change in strategy. The company’s new strategy required a system that would be able to keep a record of every transaction of every customer for three years.

    Strategy:

    The strategy included ways MasterCard and its member banks could use that data to increase their credit card business. MasterCard wanted to increase its daily volume of 30 million transactions in 1977. At the time it had three separate computer centers on four floors in the suburbs of St. Louis, Missouri, and it wants to consolidate the computer centers while enlarging the new center; so, that it would be able to handle both the current volume and the planned volume as it expands.

    At that time it was storing nearly 50 terabytes (50 trillion numbers and letters) of data, including the dollar amount, merchant, location, and card number. MasterCard also planned to add other data fields, such as ZIP codes, to make the data more useful. However, to protect MasterCard users, it did decide not to include demographic data such as incomes and ages.

    Nonetheless, “The credit card business lives and dies by data”, said Ted Iacobuzio, director of consumer credit research for the consulting and research firm, TowerGroup. Top searched case study [Market Research Coffee of “Starbucks” Entry into China].

    Warehousing:

    While both Visa and MasterCard had already been warehousing so much data; they were both moving toward providing reports to their member banks. MasterCard’s goal was to give its members (the banks) direct access to their customers’ data as well as tools to analyze all of this data; all to persuade the banks to choose MasterCard over Visa.

    For example, if banks could use MasterCard tools to improve their analysis of the profitability of the cards in their portfolios or gain more customers and transactions to process; they would be inclined to push MasterCard more often. Such an analysis could help banks determine the types of customers that were most profitable or find ways to appeal to more potential MasterCard customers.

    Many banks issue both Visa Cards and MasterCard cards (sometimes several of each); and, if the banks can use this information from MasterCard while Visa does not have or make available such information; the MasterCard company can gain a strategic advantage.

    For example, in 2001, MasterCard persuaded Citigroup, the largest issuer of credit cards, to push MasterCard over Visa so that 85 percent of its credit cards came from MasterCard versus only 15 percent from Visa. J. P. Morgan Chase likewise was convinced to use MasterCard for 80 percent of the cards it issued.

    What is the Hope?

    MasterCard hoped it could persuade banks to use these data; if they could see the value (increased profit) in the process. Joseph Caro, MasterCard’s vice president of Internet technology services, says that “little percentages” can be very profitable to banks. In one case, a bank was requiring its merchants to verify the whole process by using the telephone to call in one transaction out of 50 for approval (rather than using a telecommunications method); while most banks were requiring only one transaction in 500.

    Because call-ins cost about $3 each, that bank could save $300,000 a year by switching over to the one in 500 methods. Another bank was turning down one transaction out of five because so many call-ins were timing out. The bank was able to discover that most of the customers turn down were actually creditworthy. By changing its set up, the bank would be able to eliminate thousands of unnecessarily lost transactions.

    About 28,000 banks and financial service companies issue MasterCard credit cards. To draw these customers into using its credit card transaction data; MasterCard needed not only to make each bank’s data available to them but also needed to make available appropriate analytic software. MasterCard assigned 35 full-time developers to the task of identifying and creating software tools to accomplish this task.

    Objects:

    Drawing on Business Objects Web Intelligence software in 2001; these developers created and programmed 27 tools for the banks to use. (These tools are not free and they are not available to merchants.) One of MasterCard’s new tools, called the Business Performance Intelligence, is for operational reporting and includes a suite of 70 standard reports that banks can use to analyze their daily, weekly, or monthly transaction.

    The banks can then compare the results from one market (such as a United States state or region, or a single country) with that of another market. MasterCard also works with individual banks to create their own custom reports, enabling them to concentrate on their own issues and concern. Subscribing banks access the MasterCard business intelligence system via a secure extranet.

    The developers also created MarketScope; which are applications that have the goal of helping banks and merchants work together to generate more purchases from the merchants if they pay for by MasterCard. One example they give is to enable Wal-Mart stores to determine how many MasterCard holders spend $25 or more on sporting goods in January and February.

    Systems development:

    Then, MasterCard’s vice president of systems development, Andrew Clyne, suggested that Wal-Mart could send these card-holders the right to obtain tickets to their closest major league baseball team based upon future sporting goods purchase above a certain dollar minimum. Lacobuzio said that such a strategy should appeal to state and regional banks. However, he believes it is likely that national and international banks would have already developed and are using their own analytical software.

    But even they would have a use for MasterCard’s software as a kind of benchmark against; which to measure the effectiveness of their own systems. Moreover, despite the increasing volume, the processing was much faster. As Caro said, “If we can do things faster, little percentages start moving in our direction.”

    Visa, however, is not sitting still and is managing about 100 trillion terabytes of data for its clients. Until recently, it mainly supplied the data online or on disks to its bank customers; who used their own software and computers to analyze the data. Recently, Visa started to run analyses for the banks on its own computers.

    Web service:

    In May 2002, Visa also introduced a Web service called Resolve Online to help banks deal with disputed payments and is working on providing banks with online analytic tools. “If MasterCard is ahead of the game in any of this”, says Iacobuzio, Visa “will have it in six months”.

    MasterCard’s new data storage site, which was opening in May 2002, is also in St. Louis, in a single 525,000-square – foot building. The complex, which was built on open land, cost MasterCard $135 million. The changeover to the new site happened over a weekend with almost no problem; despite the purchases of about $4 billion each day.

    Case Study of the MasterCard Credit Cards Business
    Case Study of the MasterCard Credit Cards Business, MasterCard Logo since July 14, 2016.
  • Case Study Corporate Social Responsibility of Coffee Starbucks

    Case Study Corporate Social Responsibility of Coffee Starbucks

    Starbucks Case Study; It is the world’s largest and most popular coffee company. Case Study; Since the beginning, this premier café has aimed to deliver the world’s finest fresh-roasted coffee. Corporate Social Responsibility of Starbucks Coffee, Case Study; Today the company dominates the industry and has created a brand that is tantamount to loyalty, integrity, and proven longevity. Starbucks is not just a name, but a culture.

    Case Study in Corporate Social Responsibility of Coffee Starbucks!

    It is obvious that Starbucks and its CEO Howard Shultz are aware of the importance of corporate social responsibility. We try to explain the case study of Corporate Social Responsibility of Starbucks Coffee; Every company has problems they can work on and improve in and so does Starbucks. As of recent, Starbucks has done a great job showing their employees how important they are to the company. Along with committing to every employee, they have gone to great lengths to improve the environment for everyone.

    Ethical and unethical behavior is always a hot topic for the media, and Starbucks has to be careful with the decisions they make and how they affect their public persona. The corporate social responsibility of the Starbucks Corporation addresses the following issues: Starbucks’ commitment to the environment, Starbucks’ commitment to the employees, Starbucks’ commitment to consumers, discussions of ethical and unethical business behavior, and Starbucks ‘ commitment and response to shareholders. The following Corporate Social Responsibility of Starbucks Coffee few explain below are;

    Commitment to the Environment.

    The first way Starbucks has shown corporate social responsibility is through its commitment to the environment. To improve the environment, with a little push from the NGO, Starbucks’ first main goal was to provide more Fair Trade Coffee. What this means is that Starbucks will aim to only buy 100 percent responsibly grown and traded coffee. Not only does responsibly grown coffee help the environment, but it also benefits the farmers as well. Responsibly grown coffee means preserving energy and water at the farms.

    In turn, this costs more for the company overall, but the environmental improvements are worth it. Starbucks and the environment benefit from this decision because it helps continue to portray a clean image. Another way to improve the environment directly through their stores is by “going green”. Their first attempt to produce a green store was in Manhattan. Starbucks made that decision to renovate a 15-year-old store. This renovation included replacing old equipment with more energy-efficient ones.

    To educate the community, they placed plaques throughout the store explaining their new green elements and how they work. This new Manhattan store now conserves energy, water, materials, and uses recycled/recyclable products. Twelve stores total plan to be renovated and Starbucks has promised to make each new store LEED, meaning a Leader in Energy and Environmental Design.

    LEED improves performance regarding energy savings, water efficiency, and emission reduction. Many people don’t look into environmentally friendly appliances because the upfront cost is always more. According to Starbucks, going green over time outweighs the upfront cost by a long shot. Hopefully, these new design elements will help the environment and get Starbucks ahead of their market.

    Commitment to Consumers.

    The second way Starbucks has shown corporate social responsibility is through their commitment to consumers. The best way to get the customers what they want is to understand their demographic groups. By doing research on Starbucks’ consumer demographics, they realized that people with disabilities are very important. The company is trying to turn stores into a more adequate environment for customers with disabilities.

    A few changes include: lowering counter height to improve ease of ordering for people in wheelchairs, adding at least one handicap accessible entrance, adding disability etiquette to employee handbooks, training employees to educate them on disabilities, and by joining the National Business Disability Council. By joining the National Business Disability Council, Starbucks gains access to resumes of people with disabilities.

    Another way Starbucks has shown a commitment to the consumers is by cutting costs and retaining loyal customers. For frequent, loyal customers, Starbucks decided to provide a loyalty card. Once a customer has obtained this card, they are given incentives and promotions for continuing to frequent their stores. Promotions include discounted drinks and free flavor shots to repeat visitors.

    Economy talk:

    Also, with the economy being at an all-time low, Starbucks realized that cheaper prices were a necessity. By simplifying their business practices, they were able to provide lower prices for their customers. For example, they use only one recipe for banana bread, rather than eleven!

    It doesn’t end there either! Starbucks recognized that health is part of social responsibility. To promote healthier living, they introduced “skinny” versions of most drinks, while keeping the delicious flavor. For example, the skinny vanilla latte has 90 calories compared to the original with 190 calories. Since Starbucks doesn’t just sell beverages now, they introduced low-calorie snacks. Along with the snacks and beverages, nutrition facts were available for each item.

    Also, one big way to cut costs was outsourcing payroll and Human Resources administration. By creating a global platform for its administration system, Starbucks is able to provide more employees with benefits. Plus, they are able to spend more money on pleasing customers, rather than on a benefits system.

    Commitment and Response to Shareholders.

    One way Starbucks has demonstrated its commitment and response to shareholder needs is by giving them large portions. By large portions, Starbucks is implying that they plan to pay dividends equal to 35% or higher of net income. For the shareholders, paying high dividends means certainty about the company’s financial well-being. Along with that, they plan to purchase 15 million more shares of stock, and hopefully, this will attract investors who focus on stocks with good results.

    Starbucks made its commitment to shareholders obvious by speaking directly to the media about it. In 2004, Starbucks won a great tax break, but unfortunately, the media saw them as “money-grubbing”. Their CEO, Howard Shultz, made the decision to get into politics and speak to Washington about expanding health care and the importance of this to the company. Not only does he want his shareholders to see his commitment, but he wants all of America to be able to reap these benefits.

    In order to compete with McDonald’s and keeping payout to its shareholders high, Starbucks needed a serious turnaround. They did decide to halt growth in North America but not in Japan. Shultz found that drinking coffee is becoming extremely popular for the Japanese. To show shareholders there is a silver lining, he announced they plan to open “thousands of stores” in Japan and Vietnamese markets.

    Commitment to Employees.

    The first and biggest way Starbucks shows their commitment to employees is by just taking care of their workers. For example, they know how important health care, stock options, and compensation are to people in this economy. The Starbucks policy states that as long as you work 20 hours a week you get benefits and stock options. These benefits include health insurance and contributions to the employee’s 401k plan.

    Starbucks doesn’t exclude part-time workers, because they feel they are just as valuable as full-time workers. Since Starbucks doesn’t have typical business hours like an office job, the part-time workers help to work the odd shifts. Another way Starbucks shows its commitment to employees is by treating them like individuals, not just number 500 out of 26,000 employees. Howard Shultz, a CEO, always tries to keep humanity and compassion in mind.

    When he first started at Starbucks, he remembered how much he liked it that people cared about him, so he decided to continue this consideration for employees. Shultz feels that the first impression is very important. On an employee’s first day, he lets each new employee know how happy he is to have them as part of their business, whether it is in person or through a video.

    His theory is that making a good first impression on a new hire is similar to teaching a child good values. Through their growth, he feels each employee will keep in mind that the company does care about them. Shultz wants people to know what he and the company stand for, and what they are trying to accomplish.

    Ethical/Unethical Business Behavior.

    The last way Starbucks demonstrates corporate social responsibility is through ethical behavior and occasional unethical behavior. The first ethically positive thing Starbucks involves itself in is the NGO and Fair Trade coffee. Even though purchasing mostly Fair Trade coffee seriously affected their profits, Starbucks knew it was the right thing to do. They also knew that if they did it the right way, everyone would benefit, from farmers to the environment, to their public image.

    In the fall of 2010, Starbucks chose to team up with Jumpstart, a program that gives children a head start on their education. By donating to literacy organizations and volunteering with Jumpstart, Starbucks has made an impact on the children in America, in a very positive way.

    Of course, some negatives come along with the positives. Starbucks isn’t the “perfect” company like it may seem. In 2008, the Starbucks mobile app decided to close 616 stores because they were not performing very well. For Starbucks to close this many stores in one year, they had to battle many landlords due to the chain breaking lease agreements. Starbucks tried pushing for rent cuts but some stores did have to break their agreements.

    Other thing:

    On top of breaching lease agreements, Starbucks was not able to grow as much as planned, resulting in their future landlords were hurting as well. To fix these problems, tenants typically will offer a buyout or find a replacement tenant, but landlords are in no way forced to go with any of these options. These efforts became extremely time-consuming and costly, causing Starbucks to give up on many lease agreements.

    As for Starbucks ethical behavior is a different story when forced into the media light. In 2008, a big media uproar arose due to them wanting to re-release their old logo for their 35th anniversary. The old coffee cup logo was basically a topless mermaid, which is Starbucks’ opinion is just a mythological creature, not a sex symbol.

    Media critics fought that someone needed to protect the creature’s modesty. Starbucks found this outrageous. To end the drama and please the critics, they chose to make the image more modest by lengthening her hair to cover her body and soften her facial expression. Rather than ignoring the media concerns, Starbucks met in the middle to celebrate its 35th anniversary. Maybe you definitely understand above the information and case study of Corporate Social Responsibility of Starbucks Coffee.

    Case Study in Corporate Social Responsibility of Coffee Starbucks
    Case Study in Corporate Social Responsibility of Coffee Starbucks!
  • Market Research Coffee of Starbucks’ Entry into China

    Market Research Coffee of Starbucks’ Entry into China

    Starbucks’ Entry into China: How to Starbucks Corporation is an American coffee company and coffeehouse chain? Market Research Coffee of Starbucks‘ Entry into China, Starbucks was founded in Seattle, Washington in 1971. As of November 2016, it operates 23,768 locations worldwide. Also, Starbucks considers the main representative of “second wave coffee”, initially distinguishing itself from other coffee-serving venues in the US by taste, quality, and customer experience while popularizing darkly roasted coffee. Since the 2000s, third-wave coffee makers have targeted quality-minded coffee drinkers with hand-made coffee based on lighter roasts, while Starbucks nowadays uses automated espresso machines for efficiency and safety reasons.

    Here is the article to explain, Market Research Coffee of Starbucks’ Entry into China!

    Starbucks locations serve hot and cold drinks, whole-bean coffee, Micro ground instant coffee known as VIA, espresso, caffe latte, full- and loose-leaf teas including Teavana tea products, Evolution Fresh juices, Frappuccino beverages, La Boulange pastries, and snacks including items such as chips and crackers, the article defines how to Entry into China; some offerings (including their annual fall launch of the Pumpkin Spice Latte) are seasonal or specific to the locality of the store. Also, many stores sell pre-packaged food items, hot and cold sandwiches, and drinkware including mugs and tumblers; select “Starbucks Evenings” locations offer beer, wine, and appetizers. Starbucks-brand coffee, ice cream, and bottled cold coffee drinks also sold at grocery stores, Market Research.

    Starbucks first became profitable in Seattle in the early 1980s. Despite an initial economic downturn with its expansion into the Midwest and British Columbia in the late 1980s, the company experienced revitalized prosperity with its entry into California in the early 1990s. The first Starbucks location outside North America opened in Tokyo in 1996; overseas properties now constitute almost one-third of its stores. The company opened an average of two new locations daily between 1987 and 2007. On December 1, 2016, Howard Schultz announced he would resign as CEO effective in April 2017 and will replace by Kevin Johnson. Johnson assumed the role of CEO on April 3, 2017.

    Market Shopping:

    Starbucks uses the highest quality Arabic coffee as the base for its espresso drinks, they provide high quality that’s why Entry into China essay. Learn about their unique coffee and espresso drinks today. If You can Buy your favorite Starbucks coffee, cups, mugs, coffee makers, and brewing equipment online with free standard U.S. shipping of over $50.

    Starbucks has developed an internationalization strategy to enable the company to open stores and franchises in countries across the globe. Market research is at the core of many of the market entry strategies Starbucks is employing. Also, This case study will consider how market research has strengthened Starbucks ‘ entry into the Chinese markets.

    Market Research: Starbucks International Business Strategy.

    Starbucks entry into emerging and developed markets inform by market research.

    Starbucks conducted market research to enable a deeper understanding of the Chinese markets, and the way that capitalism functions in the People’s Republic of China (PRC). Also, China contains a number of distinct regionally-based markets, a factor that makes market research crucial to launching new stores and franchises in China. A deep understanding of intellectual property right laws is critical to successful market entry in emerging markets.

    Starbucks articulate an entry strategy that would address the dominant Chinese markets and that was design to as inoffensive concerning the Chinese culture as possible. Instead of taking the conventional approach with advertising and promotions — which could have seen by potential Chinese consumers as attacking their culture of drinking tea –, they position stores in high-traffic and high visibility locations.

    Moreover, Starbucks very deliberately began to bridge the gap between the tea-drinking culture and the coffee drinking culture by introducing beverages in the Chinese stores that included local tea-based ingredients. Also, Market research supports the development of Starbucks’ competitive internationalization strategy. The overarching competitive strategy was to create an aspirational brand. Prospective Starbucks customers in China could look forward to what Starbucks refers to as The Third Place experience.

    The Starbucks experience conveys status that is highly appealing to those aspiring to Western standards or to climbing the ladder in their own culture. Also, Market research indicates that brand consistency is important to Starbucks’ customers. When Starbucks opens a new store in an emerging market like China, the best baristas are sent for the launch and to conduct training of the baristas who will carry on when once the launch has completed.

    Market Research Addresses the Emerging Market Political Environment.

    Market research help to identify the attributes of capitalism in the Peoples’ Republic of China (PRC). Also, The middle class in China has rapidly accepted Western standards as an acceptable standard of the bourgeois class. Moreover, Chinese consumers accept purchases of luxury goods as a means of pursuing quality lifestyles. Under the influence of Communism, the Chinese considered conspicuous consumption to be decadent or indicative of a lack of a nationalistic orientation.

    Capitalism in The Peoples’ Republic of China supports the status-conscious population that manifests its interest in keeping up with the Jones’ through excessive luxury consumption. The Chinese government’s support of luxury consumption is particularly apparent in certain cities in China. The second-tier city of Chengdu serves as a market research case study in Chinese governmental support of capitalism.

    Chengdu promotes capitalism at a level evidenced by the presence of stores like Louis Vuitton and Cartier in its downtown. According to the Chengdu Retail Industry Association. Also, The stores selling 80 percent of international luxury brands are located in Chengdu. And the city ranks just third in luxury sales after Beijing and Shanghai. It is easy to see how this national orientation toward luxury goods extends to the Starbucks mobile app brand. Which is characterized by a certain degree of exclusivity.

    It is essential to understand the intellectual property rights laws and licensing issues when planning market entry in an emerging market. Also, Starbucks has used intellectual protection laws to prevent its business model and brand from being illegally copied in China.

    Four years after opening its first café in China – in 1999 – Starbucks had registered all its major trademarks in China. A number of Chinese businesses have overstepped legal bounds in their efforts to mimic the successful Starbucks model.

    The organization and structure of Starbucks’ global operations were informed by market research. The organizational strategies employ by Starbucks were derive from Starbucks’ experiences in other emerging markets support an early recognition that China is not one homogeneous market. Also, The organizational strategies employed by Starbucks addressed many Chinese markets.

    The culture dominant in northern China differs radically from the culture in the eastern parts of China. As reflected in the differences in consumer spending power inland which is considerably lower than the spending power in coastal cities.

    Starbucks market area:

    The complexity of the Chinese markets led to regional partnerships to aid in Starbucks’ plans for expansion in China; the partnerships provided consumer insight into Chinese tastes and preferences that helped Starbucks localize to the diverse markets.

    • Northern China: Joint venture with Beijing Mei Da coffee company
    • Eastern China: Partnered with Taiwan-based Uni-President
    • Southern China: Worked with Maxim’s Caterers in Hong Kong

    Starbucks’ competitive advantage is built on product, service, and brand attributes. Many of these have shown through market research to important to Starbucks’ customers. Western brands have an advantage over local Chinese brands. Because of a commonly accepted reputation for consistently higher quality products and services. A factor that establishes the Western brands as premium brands in the minds of consumers.

    When Western brands attempt to increase market share by cutting prices. They erode the very competitive strategy that gives them an edge in consumer perceptions. Moreover, Western brands cannot effectively maintain a lower pricing strategy than local Chinese brands. Maintain brand integrity in new markets. Also, Starbucks’ global brand is valuable, and maintaining brand integrity is a fundamental focus in Starbucks’ internationalization efforts.

    Starbucks brand ambassadors:

    The baristas in China acted as brand ambassadors to help embed the Starbucks culture in the new market. Ensure, that high standards for customer service and product quality maintain at each new and established ​local store. Also, Starbucks’ ability to address changing markets hone by effective and ongoing market research. Establishing and maintaining a global Starbucks brand does not mean having a global platform or uniform global products.

    Their marketing strategy in China was base on customization in response to diverse Chinese consumer target segmentation. Also, Starbucks created extensive consumer taste profile analyses that are sufficiently agile to enable them to change with the market. And to create an attractive East meets West product mix. Moreover, the localization effort is sufficiently flexible to permit each store, the flexibility to choose from a wide beverage portfolio.

    Market Research Coffee of Starbucks Entry into China
    Market Research Coffee of Starbucks’ Entry into China!
  • Case Study of Starbucks Entry to China with Marketing Strategy!

    Case Study of Starbucks Entry to China with Marketing Strategy!

    The Starbucks Entry to China; Starbucks is one of the largest coffee chains in the World. A Case Study of Starbucks Entry to China, so, the company has a unique style and atmosphere in its coffee houses. We chose China because it is the world’s most populous country with over 1.3 billion people live there and the second-largest country by land area. After 1978, the country’s economy underwent dramatic changes which involved such relief as permission for entrepreneurs to start up. Their own business and opening the country for foreign investment. Starbucks managers decided to take advantage of such an opportunity to expand their business into the new region. To evaluate the Chinese market the company used several steps of analysis. Also learn, What is the Growth Strategy for Case Study Starbucks? Case Study of Starbucks Entry to China with Marketing Strategy!

    Case Study on Starbucks Entry to China with Marketing Strategy!

    The following case study explain below are;

    Who might be interested in buying coffee in China?

    To introduce the Starbucks brand the company begun to distribute coffee for free to guests in several Beijing’s hotels in 1994. This initiative indicated that there was a strong demand for their products, particularly among foreigners in China. Local people, who strived to imitate the Western lifestyle. Also showed interest in coffee drinking. Also, the young generation was enchantment by brands and products from the West. These factors led Starbuck’s managers to learn and understand more about the business climate in that Asia country.

    Next step for Starbucks:

    Starbucks was to determine the financial and economic conditions of China. The company’s managers were aware that the Chinese Gross Domestic Product (GDP) continuously grew approximately 9 % on average and a GDP per capita was US$3.800. All these factors led to the rising income of the middle class. That was an undoubted advantage for entering the Chinese market for Starbucks.

    Third level of screening:

    At the third level of screening, Starbucks faced political restrictions. China is a highly bureaucratic country with difficult processes of getting permissions and sanctions to start and run the business. To avoid these challenges the company built and maintain. The firm relationship with Chinese local partners as well as government officials. Also, Starbucks Soong Ching-Ling Foundation received $5 million donations from Starbucks to support education in the country’s poorest regions.

    Fourth level of screening:

    The fourth level of screening involved socio-cultural forces. It showed the biggest challenges for Starbucks, because of the old tradition of tea drinking in China. In the beginning, managers didn’t know how to accustomed Chinese to drink and appreciate coffee. To acquaint employees and Chinese executives with coffee drinking experience Starbucks provided different training programs for them in which they learned more about coffee and Starbucks’ culture. The same way the company taught customers about different flavors and types of coffee. Another aspect was Chinese shopping behavior which was different from the US market. People in China spent the main slice of their monthly budget on food. This also led to success for the company.

    Fifth level of screening:

    The fifth level of China screening was focused on competitive forces. As we mentioned before China is a tea country and the share of coffee was low. Little or no competition for Starbucks was considered as an advantage. Chinese people were familiar only with one international brand which was Nestlé’s Nescafe. However, Nescafe is not a coffee house like Starbucks. As regards local competitions, it was a well-known Chinese brand Li Shen and Japanese brand Zhen Gou Coffee.

    Starbucks Entry to Chinese Market!

    “Starbucks Entry to China” Although Starbucks encountered several challenges in the process of entering the Chinese market, with their case study. They had successfully expanded its business in over 20 large or medium-sized cities of China and opened about 560 storefronts in these cities by 2012. The astonishing achievement owes to its careful marketing assessment and various marketing strategies in different periods. These strategies mainly refer to 2 different modes of entering foreign markets: licensing agreement and joint venture.

    Licensed agreement of Starbucks!

    In 1998, Starbucks adopted the mode of licensing agreement to license its Chinese partner (Beijing Mei Da), a wholesale distribution company to supply coffee beans to some selected hotels and restaurants. Starbucks realized that local partners can have the best understanding of local cultures customers and some related laws. and they have already established a good relationship with the local government. So it was easy to obtain the permissions and sanctions required to start and operate the business in a bureaucratic country like China. Moreover, Starbucks could also maintain a high standard on the control of production, and achieve an ideal revenue in the Chinese market. So licensing agreement was an optimal option for Starbucks to enter into a booming China’s market in the mid-1990s.

    A joint venture of Company!

    Starbucks formed a joint venture with different partners at different times when it entered the Chinese market. Starbucks achieved considerable knowledge about the Chinese market conditions and then began to open Starbucks stores in China. The company adopted a strategy of having three different partners to enter different regions in the Chinese market. In September 1998, Starbucks entered China under a licensing agreement with Beijing Mei Da Coffee Co.Ltd; which was their first partner. In 1999, Starbucks formed a joint venture with the Taiwan-based Uni-President Group and opened stores in Shanghai. In 2000, Starbucks entered into a joint venture with Mei-Xin International Ltd, also called “Coffee Concepts Ltd”. It managed the operations in the region of Hong Kong, Shenzhen, Macau, Guangzhou, and other parts of southern China.

    There are some advantages for Starbucks with a joint venture to enter the Chinese market. First of all, Starbucks choose a good local partner to form a joint venture which can help it better understand the local laws and negotiate better with the authorities. It is beneficial for Starbucks to obtain the required permissions and sanctions so that it can be opened easily. Secondly, local partners know the Chinese market condition better than Starbucks; therefore, it is an effective and efficient method for Starbucks to adopt a few localization strategies to satisfy different regions of customers. Last but not least, the joint venture is a good way for Starbucks to reduce operation expenditure, and it also helps to reduce risks in the Chinese market.

    Marketing and Pricing Strategies!

    “We want our customers to recognize that we’re not coming to China just to make money, we are coming to China to build an enduring company that they can trust and they can view as one of their own”. – Howard Schultz.

    “Starbucks Entry to China” Starbucks modified its menu and tried to localize its brand name by selling some food items. According to the choice of the Chinese people and selling a different kind of tea. They also changed their marketing and pricing strategies based on the needs of the Chinese market.

    When Starbucks started in China, one of the biggest challenges it faced was to make the consumers accustomed to drinking and appreciating coffee. According to analysts, compared to other countries in which Starbucks operated this task was more difficult in China because of the age-old tradition of tea drinking in the country, where coffee was seen as nothing less than a kind of Western invasion.

    Other Strategies:

    Starbucks, like any other multinational company, had to go through the dilemma of choosing whether to follow Chinese traditional tea or take a big risk of following Starbucks’ culture of promoting premium coffee. The company chose to opt for its own culture and sell the idea of the ‘Coffee drinking experience’. Starbucks started by projecting the stores as a place for social gathering. The stores were also larger in area than the ones in the US, as the idea was to make the customers feel at home, relax and spend more time there.

    Similarly, the company took initiatives to teach the customers about the different types of coffees and how to distinguish between flavors. The customers were given some samples to smell as well as sip and then describe their experience. At times if the customers did not enjoy the sample, the store employees asked them to come back again later for another ‘tasting’ session or they offered them some other drink that they enjoyed. They also spoke to the customers about the positive effects of drinking coffee. For example, they spoke about how drinking coffee helped to change their mood and how it was good to have coffee in the morning.

    Localization Strategies of Starbucks!

    Normally Starbucks follows a high standard technique to maintain its stores worldwide. But in the case of China, it adopted some strategies influenced by local culture and market conditions to gain Chinese people’s trust and confidence. Small changes were made in the texture, menu, and store layout just to match with Chinese culture and food preferences. Within a few months of opening the coffee stores.

    The company started observing that coffee culture is different for Chinese people than in the US. Where people are very busy in their daily lives and they just grab their coffee and leave. But in China coffee stores were more like a place for social gathering. Where they can sit and talk for hours with their friends and families. Therefore, according to the market needs they had to square bigger stores. In the US the normal size of Starbucks store is about 1,200 to 1,500 square feet whereas in China. They started opening stores bigger than 2,000 square feet.

    Starbucks Offer:

    It was observed that the Chinese also like to have some food along with their drink. In response to that Starbucks started offering some popular Chinese foods like curry puffs, moon cakes, and traditional cookies. Starbucks incorporates another localize strategy in every country they go, by modifying the name of Starbucks to suit the local language.

    Like in China they Change the name to ‘Xing Bake’ where ‘Xing’ represents ‘Star’ and ‘Bake’ was pronounce as ‘bucks’. Starbucks accepted the reality that maximum people in China like tea more than coffee though the young generation is more likely to go for coffee. So they decided the different menu for different stores in China. In Shanghai and westernized, the stores a standard menu where they served coffee. And in Beijing stores, they introduced different tea-based drinks like coffee-flavored milk tea, green tea-flavored frappuccino, etc. to attract more people.

    Starbucks Entry to China; Promotional and Pricing Strategies!

    To promote themselves in China the company chose a different way. It mostly depended on the people to spread goodwill through word of mouth than commercial advertisements and media products. Their knowledge, organized way of business left a good impression on customers’ mind. The customers were willing to pay a higher price for the brand name. As a result young, urban Chinese, who solely start to associate visiting Starbucks or being seen with a Starbucks cup, as a symbol of social status.

    The tire to build their reputation in terms of, product quality, customer service, employee relationship, etc. To enhance the name of “Starbucks” they had different strategies. From professional to students they had different ways to attract them. They started selling the latest DVD’s, free access to the Internet. And, also use to provide different wireless services so people can feel it like their 3rd home.

    Highest quality coffee:

    Starbucks uses the highest quality coffee beans from ideal coffee-producing climates. They helped Chinese farmers, made good relationships with their workers. They also made a good reputation in the supply market. As a result of good reputation, good quality, and high price. They were able to attract people and also maintain their luxury appeal. The company price its coffees at around US$ 6 for a cup. Which was considering analysts as too costly? Even though it was too costly by Chinese standards but they decide to continue with it because in China. A high price was directly associating with quality.

    Case Study of Starbucks Entry to China with Marketing Strategy
    Case Study of Starbucks Entry to China with Marketing Strategy.

  • How to Explain the concept of International Advertising?

    How to Explain the concept of International Advertising?

    International Advertising, generally speaking, is the promotion of goods, services, companies, and ideas, usually in more than one country performed by an identified sponsor. This article explains about Concept of International Advertising deeply discussion. Marketers see advertising as part of an overall promotional strategy. Other components of the promotional mix include publicity, public relations, personal selling, and sales promotion.

    Study and Learn, the Concept of International Advertising.

    Advertising is a cogent communication attempt to change or reinforce ones’ prior attitude that is predictive of future behavior. Also Learn, What is International Advertising? Meaning and Definition, the Concept of International Advertising!

    It can view as a communication process that takes place in multiple cultures that differ in terms of values, communication styles, and consumption patterns. It is also a business activity involving advertisers and advertising agencies that create ads and buy media in different countries. The total of these activities constitutes a worldwide industry that is growing in importance. International advertising is also a major force that both reflects social values and propagates certain values worldwide.

    Deeply Explain:

    International advertising is becoming increasingly complex; more and more local and international companies are competing for consumers who are increasingly sophisticated and demanding. International advertising defines as the non-personal communication by an identified sponsor across international borders, using broadcast, print, and or interactive media.

    It requires dissemination of a commercial message to target audiences in more than one country. Target audiences vary from country to country in terms of how they perceive or interpret symbols or stimuli; respond to humor or emotional appeals, as well as in levels of literacy and languages are spoken. How the advertising function is organized also varies.

    International advertising can explain as the communication process that takes place in different cultures that varies in terms of values, communication styles, and consumption patterns. International advertising is also a business activity involving advertisers and advertising agencies that create ads and buy media in different countries. It is also a major force that both reflects social values and propagates certain values all over the world.

    The International Communication Process:

    The international communication process involves using the entire promotional mix to communicate with the final consumer. First, the appropriate message is determining the target audience by the advertiser. Next, the international sponsor (sender), usually representing by an advertising agency, encodes a message into words and images.

    The message is then translating into the language of the target market and transmitting through a channel of media channels to the audience who then decodes and reacts to the message. Cultural barriers may hamper the effective transmission of the message at each stage in the process and result in miscommunication.

    Art Direction:

    Art direction is involving with the visual presentation- the body language of print and broadcast advertising. Some types of visual presentation are universally understood. Revlon, for example, has used a French producer to develop television commercials, English and Spanish for use in the international markets. These commercials, which are the film in Parisian settings, communicate the universal appeals and specific advantages of Revlon products.

    By producing its ads In France, Revlon obtains effective television commercials at a much lower price than it would have to pay for similar –length commercials produce in the US. Pepsi Co has use four basic commercials to communicate its advertising themes. The basic setting of young people having fun at a party or on a beach has adapted to reflect the general physical environment and racial characteristics of North America, South America, Europe, Africa, and Asia. The music in these commercials has also adapted to suit regional tastes.

    The international advertiser must make sure that visual executions are not inappropriately extending into markets. Benetton recently encounters a problem with its “United Colors of Benetton” campaign. The campaign appeared in 77 countries, primarily in print and on billboards. The art direction focused on striking, provocative interracial juxtapositions- a white hand a black hand handcuffed together, for example, another version of the campaign, depicting a black woman nursing a white baby, won adverting awards in France and Italy. However, because the image evoked the history of slavery in America, that particular creative execution was not in the U.S market.

    Cultural Considerations:

    Knowledge of cultural diversity, especially the symbolism associated with cultural traits, is essential when creating advertising. Local country managers will be able to share important information, such as when to use cautions in advertising creativity. Use of colors and man-women relationships can often be stumbling blocks. For example, white in Asia is associated with death. In Japan, intimate scenes between men and women are considered to be in bad taste; they are an outlaw in Saudi Arabia.

    Advertising Communication System:

    Advertising communication always involves a perception process and four of the elements shown in the model: the source, a message, a communication channel, and a receiver. Also, the receiver will sometimes become a source of information by talking to friends or associates. This type of communication is termed word-of-mouth communication, and it involves social interactions between two or more people and the important ideas of group influence and the diffusion of information.

    An advertising message can have a variety of effects upon the receiver. It can

    • Create awareness,
    • Communicate information about attributes and benefits,
    • Develop or change an image or personality,
    • Associate a brand with feelings and emotions,
    • Forms group norms, and
    • Precipitate behavior.

    Thus we see advertising has multiple layers to it. A lot more than what meets the consumer’s eye goes into creating a successful advertisement or an advertisement campaign. In today’s era of consumerism, the need for advertisements to break the clutter and stand out becomes imperative. Advertising has multiple media at its disposal with each having its respective strengths and limitations.

    For instance, the radio still, has a reach to rural India like no other medium can. Also, it overcomes the barrier of illiteracy in a developing country like India. On the other hand mailers, pop-ups are an excellent way to remain visible to the urban techno-savvy Internet using consumers. Depending on the target audience the medium best suited should exploit to the hilt.

    How to Explain the Concept of International Advertising - ilearnlot
    How to Explain the concept of International Advertising? #Pixabay

  • What is International Advertising? Introduction and Meaning

    What is International Advertising? Introduction and Meaning

    International Advertising Essay; generally speaking, is the promotion of goods, services, companies, and ideas, usually in more than one country performed by an identified sponsor. Marketers see advertising as part of an overall promotional strategy. Other components of the promotional mix include publicity, public relations, personal selling, and sales promotion.

    Explaining, Essay, What is International Advertising?

    Advertising is a cogent communication attempt to change or reinforce ones’ prior attitude that is predictive of future behavior. Also, learn, What do you understand about International Advertising? Meaning, Definition, and Start-UP.

    It can view as a communication process that takes place in multiple cultures that differ in terms of values, communication styles, and consumption patterns. It is also a business activity involving advertisers and advertising agencies that create ads and buy media in different countries. The total of these activities constitutes a worldwide industry that is growing in importance. Globally advertising is also a major force that both reflects social values and propagates certain values worldwide.

    Meaning of International Advertising:

    Global advertising or international advertising consists of collecting, processing, analyzing, and interpreting information.

    There are two main purposes of international advertising research:

    1. To assist business executives to make profitable foreign advertising decisions for their specific products and services, and.
    2. To contribute to a general knowledge of foreign advertising. That is potentially useful to a variety of business executives, educators, government policymakers.

    Advertising self-regulatory organizations and others were interesting in understanding the process and effects of global advertising.

    Export agencies and their foreign affiliates serving international industrial (now called business-to-business) advertisers tended to translate and adapt domestic advertising materials for use abroad. Agencies serving international advertisers of consumer products tended to depend somewhat more on foreign correspondent agencies to develop localized advertising campaigns appropriate for their particular markets.

    When was started International Advertising?

    In the first 30 years of the 1900s, especially in the prosperous 1920s. Increasing numbers of European and US manufacturers sold branded consumers or industrial products outside their home countries. Some of them utilized ”export advertising agencies“. Most such agencies depended primarily on foreign agencies (called affiliate, associate, or correspondent agencies) either to modify domestic campaigns or to initiate entirely new campaigns, whichever was appropriate from their clients’ point of view.

    Between 1930 and the mid-1950s the number of the export or globally advertising agencies declined. In 1958 in the USA six full-service advertising agencies and a handful of export/foreign advertising agencies were capable of providing international services for their US clients. These six accounted for more than 90% of all international billings of US agencies. Into the 1960s most exporters and manufacturers with foreign subsidiaries necessarily continued to utilize.

    Local foreign advertising agency services available in the countries in which they did business. In the 1970s and 1980s, many consolidations and mergers led to the emergence of large foreign media buying organizations and large holding companies consisting of groups of globally advertising agencies. From the 1980s onward, advertising practices within domestic advertising agencies in Europe and the USA continued to improve.

    What is International Advertising - ilearnlot
    What is International Advertising? Introduction and Meaning

  • Explain the Types of Faced Challenges in Global Advertising.

    Explain the Types of Faced Challenges in Global Advertising.

    What are some Challenges Faced by Global Advertising? International Marketing Essay can be a tricky business. With the increase in global trade, international companies cannot afford to make costly advertising mistakes if they want to be competitive and profitable. Understanding the language and culture of target markets in foreign countries is one of the keys to successful international or global advertising.

    Here are Explaining the Types of Faced Challenges in Global Advertising Essay.

    Too many companies, however, have jumped into foreign markets with embarrassing results. Out of their blunders, a whole new industry of translation services has emerged. Also Learn, What do you understand about International Advertising? the Types of Faced Challenges in Global Advertising. American companies have identified huge markets internationally for their products and services. The markets are huge in terms of population, in countries such as China and India.

    The purchasing power of consumers and businesses in many countries is also significant enough for American firms to want to compete in these markets. However, international marketing is not without pitfalls, and U.S. companies have made costly mistakes by not adequately researching international markets before they commit resources there. How to Explain The Concept of International Advertising?

    Global Advertising deeply discusses their types of Challenges:

    The following Challenges below are;

    Identifying a True Market Need.

    A key to success in business is offering products and services for which customers have a compelling need. The customer has a problem that needs to solve, and the product or service provides the solution in such an effective way that its benefits are not difficult to communicate. Identifying the true needs of large numbers of people in a foreign country is not easy. Not having lived in their culture experiencing their day-to-day lives, American marketing executives can err by assuming that what people in other countries want or need exactly matches the wants and needs of American consumers.

    Dilution of Brand-Name Power.

    Due to the Internet, movies, and other forms of entertainment, American culture and the corporate symbols of that culture–brand names–are well known across the globe. This does not mean the American companies & rs quo; products will be popular when introduced in other countries. Being aware of a brand name isn’t the same as preferring it. It can be a long and expensive process to gain the trust of consumers who have used their own local companies’ products for years or even generations. The American companies can perceive as attempting to take over the position long held by local companies, causing resentment.

    Cultural Nuance.

    Consumers are influencing to purchase products by marketing messages delivered through the media, including print media such as magazines. Humor often use in commercial messages to get the consumer to pay attention. But what considers extremely funny in one culture can perceive as confusing or insulting in another. To produce effective advertising requires more than an accurate translation of the message from one language to another. It requires a deep understanding of the culture, customs, morals, and even religious views that predominate in that country. What motivates consumers to buy products varies from country to country.

    Communication Style.

    Business executives from different countries can encounter several barriers to effective communication besides obvious language differences. The traditional pace of business negotiations can be different. Americans sometimes want to hurry negotiations along, whereas in some other countries emphasis places on building relationships before a business deal seriously considers. Executives from other countries may place a higher value on things such as facial expression instead of just the words that are saying.

    Distance and Time.

    Even with technologies such as video conferencing, executives in other countries may prefer to establish relationships on a personal level. For a smaller American company, this can mean a significant investment in travel costs and having key executives out of the office for extended periods. Time zone differences can make it difficult to coordinate projects where collaboration requires. Executives on the West Coast of the U.S. are just getting to work in the morning when their European counterparts are winding down for the day.

    Finding Reliable Partners.

    American firms often establish relationships with distributors located in the countries whose markets they are seeking to enter. They hire sales reps based in those countries. They may engage in local marketing and public relations firms to assist them. Because the American firm might have no prior experience in that country, finding people who are trustworthy and competent can be a challenge.

    The faulty Translations.

    The value of understanding the language of a country cannot overestimate. Translation mistakes are at the heart of many blunders in Global advertising. Since a language is more than the sum of its words, a literal, word-by-word dictionary translation seldom works.

    The following examples prove this point. Otis Engineering Company once displayed a poster at a trade show in Moscow that turned heads. Due to a poor translation of its message, the sign boasted that the firm’s equipment was great for improving a person’s sex life.

    The Parker Pen Company suffered an embarrassing moment when it realized that a faulty translation of one of its ads into Spanish resulted in a promise to “help prevent unwanted pregnancies”.

    Automobile:

    Automobile manufacturers in the United States have made several notorious advertising mistakes that have been well-publicizing. General Motors learned a costly lesson when it intro­duced its Chevrolet Nova to the Puerto Rican market.

    Although “nova” means “star” in Span­ish, when it spokes, it sounds like “NOVA” which means it doesn’t go. Few people wanted to buy a car with that meaning. When GM changed the name to Carrie, sales picked up dra­matically.

    Ford:

    Ford also ran into trouble with the name of one of its products. When introducing a low-cost truck called the “Fiera” into Spanish-speaking countries, Ford didn’t realize until too late that the name meant “ugly old woman” in Spanish.

    Another American auto manufacturer made a mistake when it translated its Venezuelan ad for a car battery. It was no surprise when Venezuelan customers didn’t want to buy a battery that was advertising as being “highly over­rated.”

    Airline:

    Airline companies have also experienced problems with poor translation. A word-by-word translation ruined a whole advertising campaign for Braniff Airlines. Hoping to promote its plush leather seats, Braniff ad urged passengers to “fly on leather.” However, when the slo­gan was translated into Spanish, it told customers to “fly naked.”

    Another airline company, Eastern Airlines, made a similar mistake when it translated its motto, “We earn our wings daily” into Spanish. The poor translation suggested that its passengers often ended up dead.

    Pepsi’s:

    Marketing blunders have also been made by food and beverage companies. When translated into German, Pepsi’s popular slogan, “Come Alive with Pepsi” came out implying “Come Alive from the Grave.” No wonder customers in Germany didn’t rush out to buy Pepsi. Even a company with an excellent international track record like Kentucky Fried Chicken also suffered from faulty translation. A lot of sales were lost when the catchphrase “Finger Lickip good” became “eat your fingers off” in the Chinese translation.

    A manufacturer of one laundry detergent made an expensive mistake in a promotional cam­paign in the Middle East. The advertisements showed a picture of a pile of dirty clothes on the left, a box of the company’s detergent in the middle, and clean clothes on the right. Unfortu­nately, the message was incorrectly interpreted because most people in the Middle East read from right to left. It seemed to them that the detergent turned clean clothes into dirty ones.

    Cultural oversights can be Disastrous.

    Successful international marketing doesn’t stop with good translations—other aspects of culture must research and understand if marketers are to avoid blunders. When marketers do not understand and appreciate the values, tastes, geography, climate, superstitions, the level of literacy, religion, or economic development of a culture, they fail to capture their target mar­ket.

    For example, when a popular American designer tried to introduce a new perfume in the Latin American market, the product aroused little interest and the company lost a lot of money. Ads for the new fragrance highlighted its fresh camellia scent. What marketers had failed to realize was that camellias are traditionally using for funerals in many South American countries.

    Deeply Discussion:

    Procter and Gamble have been successful in marketing their products internationally for many years. Today, overseas markets account for over one-third of its sales. However, the company’s success in this area didn’t happen overnight. Procter and Gamble initially experienced huge losses because marketing managers did not recognize important cultural differences. For instance, when P&G first entered the Japanese market with its popular Cheer laundry detergent, most Japanese housewives weren’t interested.

    The promotional campaign that emphasized Cheer as an effective “all temperature” detergent was lost on the Japanese who usually wash clothes in cold water. Although the ad had been quite successful in the United States where clothes are washing in all temperatures. It fell flat in Japan. All of this could have been avoiding if P&G marketers had done more preliminary research before launching the campaign. Once P&G changed its strategy and promised superior cleaning in cold water, sales of Cheer picked up dramatically.

    Extra information:

    The use of numbers can also be a source of problems for Global Marketers. Since every culture has its own set of lucky and unlucky numbers, companies need to do their homework if they want to avoid marketing blunders. A US manufacturer of golf balls learned this lesson the hard way when it packaged its product in groups of four for export to Japan. The company couldn’t figure out why the golf balls weren’t selling well until it realizes that in Japanese the word for the number four also means death. In Japan four and nine are very unlucky numbers which should avoid by marketers.

    Even illustrations need to carefully examine. A culturally offensive picture can ruin an advertisement even if the written message properly translates. McDonnell Douglas Corporation made an unfortunate error in an aircraft brochure for potential customers in India. It included a picture of men wearing turbans, which was not appreciated by the Indians. A company spokesman reported, “It was politely pointed out to us that turbans were distinctly Pakistani Moslem”. The artist for the ad had used an old National Geographic magazine to copy the picture.

    Preventing Blunders.

    Having awakened to the special nature of international or global advertising. Companies are becoming much more conscientious in securing accurate translations. They are also becoming much more sensitive to the cultural distinctions and variables. That play such an important role in any international business venture.

    Above all, the best way to guard against errors is to hire trained professional translators. Who thoroughly understand the target language and its idiomatic usage. These translators should be very familiar with the culture and people of the country and have a grasp of the technical aspects of the industry.

    Extra Things:

    Many Global companies are using a technique calls “back translation,” which greatly reduces the possibility of advertising blunders. The process of “back translation” requires one person to translate the message into the target language and another person to translate the new version back into the original language. The purpose is to determine whether the original material and the re-translated material are the same. In this way, companies can ensure that their intended message is conveying.

    Effective translators aim to capture the overall message of an advertisement. Because a word-for-word duplication of the original rarely conveys the intended meaning and often causes misunderstandings. In designing advertisements to use in other countries. Marketers are recognizing the need to keep messages as short arid simple as possible and to avoid idioms, jar­gon, and slang that are difficult to translate.

    Similarly, they avoid jokes, since humor does not translate well from one culture to another. What considers funny in one part of the world may not be so humorous in another? The bottom line is that consumers interpret advertising in terms of their own cultures. As the global marketplace opens up, there is no room for linguistic or cultural blunders.

    Explain the Types of Faced Challenges in Global Advertising - ilearnlot
    Explain the Types of Faced Challenges in Global Advertising.

  • The aspect of International Advertising in Social Life

    The aspect of International Advertising in Social Life

    What is International Advertising? This article about an aspect of International Advertising in Social Life, deeply explains. Why global market need International Advertising? Global advertising or international advertising consists of collecting, processing, analyzing, and interpreting information.

    The aspect of the International Advertising Essay in Social Life.

    There are two main purposes of international advertising research: (1) to assist business executives to make profitable international advertising decisions for their specific products and services and (2) to contribute to the general knowledge of international advertising that is potentially useful to a variety of business executives, educators, government policymakers, advertising self-regulatory organizations and others interested in understanding the process and effects of international advertising.

    Aspects of Advertising on Social Life:

    When we consider International Advertising from the advertiser’s point of view, according to them the primary objective of an advertisement is that the product or services which they are offering should sell in the market. And in achieving the main objective of selling the product or services there are other profound consequences.

    Advertising puts an influence that is both persuasive and pervasive. Through the selective reinforcement of certain language and values and social goals, it acts as important force attitudes that underlie behavior not only in the marketplace but also in all aspects of life.

    Global Advertising:

    In an international marketing concern, advertising has an important social influence in several ways: many of the international advertising is designed to promote and introduce new products from one market to another.

    Often this results in the sudden change in lifestyles, behavior patterns of a society, stimulating, for example, the adoption of fast food, casual attire or hygiene, and beauty products.

    International advertising encourages a desire for products from other countries; it creates expectations about “the good life”, and establishes new areas of consumption. Advertising is thus a potent force for change, while selectively reinforcing lifestyles, certain values, and role models.

    Global Market:

    We can see examples of brands like Levi’s, Adidas, Reebok, Nike, Marlboro, and McDonald’s. Which are familiar in almost every corner of the world. These brands have become an object of desire by the teen and young adults throughout the world. Even the scenes and images which have been shown in international advertising are either in western in origin or reflect western consumption behavior and values.

    Even where it had been adapting to local scenarios and role models these shown often come from sectors of society. Such as the upwardly mobile urban middle class. Which embrace or are receptive to Western values and mores. As a consequence, a criticism frequently leveled at international advertising is that it promulgates Western values and morals; especially from the US.

    Global Localization:

    This is generally regarded as negative in societies with strong religious and moral values. Which is run as a counter to those of the west? For example the Islamic societies in the Middle East. When Western advertising shows sexually explicit situations or shows women in situations. Which is considering as inappropriate or immoral? It is likely to consider a subversive force undermining established cultural mores and values.

    Similarly, in some countries such as France, there is strong opposition to the imposition of US culture, values, and use of English in advertising. Promotion of tobacco products by US and UK companies in countries. Where there is no legislation regulating or banning cigarette advertising has also been criticizing.

    Global Communication:

    At the same time, international advertising also acts as an integrating force across national boundaries. It makes the message known using universal symbols and slogans and establishes. A common mode of communication among target audiences in different parts of the world. At the same time, multicultural values are reinforcing by advertisers. Who adopt images incorporating peoples of different nations and diverse cultural backgrounds. For example, the Colors of Benetton campaign or the British Airways “Peoples of the World” campaign.

    Consequently, while, on the one hand, international advertising can view as a colonizing force propagating Western values and morale throughout the world. It is also an important force that integrates societies and establishes common bonds, universal symbols, and models of communication among peoples in different parts of the world.

    The Aspect of International Advertising in Social Life
    The aspect of International Advertising in Social Life.

  • Do you want to be a BOSS?

    Do you want to be a BOSS?


    What is a BOSS? A person who is in charge of a worker or organization. A person in control of a group or situation. (In computer gaming) A particularly tough enemy, usually appearing at the end of a section or level.

    Definition of BOSS

    An individual that is usually the immediate supervisor of some number of employees and has certain capacities and responsibilities to make decisions. The term itself is not a formal title and is sometimes used to refer to any higher level employee in a company, including a supervisor, manager, director, or the CEO.

    BOSS as Supervisor

    Supervisor, when the meaning sought is similar to the foreman, foreperson, boss, overseer, cell coach, facilitator, monitor, or area coordinator, is the job title of a low-level management position that is primarily based on authority over a worker or charge of a workplace. A Supervisor can also be one of the most senior in the staff at the place of work, such as a Professor who oversees a Ph.D. dissertation. Supervision, on the other hand, can be performed by people without this formal title, for example by parents. The term Supervisor itself can be used to refer to any personnel who have this task as part of their job description.

    A BOSS is a Business Owner with Success Systems. In business, entrepreneurs create systems that cause continuous movement in their business. Before you even get started with your entrepreneurial endeavors, I want to give you some preliminary systems that will prepare you for the world of business. This is not a “how to start a business” guide, but rather a compass to point you in the right direction. If you have ever thought about starting a business or if you are on the fence about it, this post is here to give the encouragement you need to take that leap of faith. Kevin D. provides the keys to move you toward starting your own business:

    Be Creative: Creativity has no boundaries. Creativity has no limits. Creativity has endless possibilities. Do not allow fear to hinder you from unleashing that which is already inside of you. In order for you to do that, you have to think outside of the box. Tap into your imagination and bring forth that next big idea that will change the world. You have to give yourself permission to do so. Why? Your creativity is the key to unlocking your future. “You can’t use up creativity. The more you use the more you have” By Maya Angelou.

    Be a Dreamer: Dreams aren’t just images you see when you sleep. A real dream is a vision that births a passion that you cannot shake. Dreamers are individuals who make our world go round. Everything you see around you started off as a dream. It was inside somebody’s head before it manifested itself into our reality. Your dream has to be bigger than you. Therefore, when you do dream…dream BIG! “If you can Dream it, you can Achieve it.” By Walt Disney.

    Be a Strategist: Thinking that your business will automatically become a success is wishful and wrongful thinking. If you are going to be an entrepreneur, you have to be a strategist. Simply put, a strategist is an individual who establishes and applies a plan that points to the vision or dream. Not only is it imperative for you to know where you are going, but you also must know how you are going to get there. “All men can see these tactics whereby I conquer, but what none can see is the strategy out of which victory is evolved.” By Sun Tzu.

    Be an Original: One of the worst things in the world for any entrepreneur to do is try to duplicate the look, brand, and success of another. You were created unique. Therefore, you and everything about you has to be unique. There has to be something, or maybe even a few things, that set you apart. So as you begin your entrepreneurial endeavors, find out what makes you different than the competition. Be the one that everyone wants to imitate. “It is better to fail in originality than to succeed in imitation.” By Herman Mellville.

    Be Inspired: There will be times where you will question what you do and why you are doing it. There will be times when discouragement will set in because your business is not doing what you expected and desired it to do. That is not the time for you to give up, but rather to find some sort of inspiration—whether it be through a story, testimony, a song, etc… Find a way to get your fire back even when things around you seem dim and dark. Business is difficult, and only those who are strong and persistent will endure will see success. “Inspiration is the rocket fuel that makes ordinary days into extraordinary!” By Gail Lynne Goodwyn.

    Be Passionate: You were placed here to solve a problem that only you can solve. This problem has to become your obsession. It should keep you awake at night. It should wake you up early in the morning. It should have you constantly writing down new ideas or new ways of accomplishing your goals. You shouldn’t truly rest until the thing that bothers you has been resolved. Some of the great business men and women before us worked long hours every day, sacrificing weekends, giving up vacations in pursuit of their passion to resolve that problem. Ultimately, that passion will become your paycheck. “Passion is the genesis of genius.” By Galileo Galilei.

    Be Mentored: For any person to think they know it all and that they don’t need help is simply idiotic and arrogant. The greatest asset a business person can have is a mentor….an individual or individuals who have been where you have been and done what you have done. Find someone that is doing what you desire to do or can at least give your insight on how to do things better. If you cannot have them physically present then read their materials, listen to their messages, and learn their history. Learn from their successes as well as their mistakes. Their ceiling very well may be your floor. “One of the greatest values of mentors is the ability to see ahead what others cannot see and to help them navigate a course to their destination.” By John C. Maxwell.

    Be Empowered: It is no accident that you are reading this e-Book. Do not be afraid of failing. Let your failures drive you to your success. Do not give up or give in but rather keep moving forward. You were placed on this planet on purpose, with a purpose, and for a purpose. You are more powerful than you know. You may be the next Steve Jobs, Magic Johnson, or Vera Wang. You have the potential within you that will change our world. There is greatness on the inside you to do amazing things. So do it…go be great and do great things. You have permission to do so! You have permission to be a BOSS. Just Do It. By Nike.

    Do you want to be a BOSS or own Business? so build your own way how to start? Where are you do it? How to carry full money for your business? The perfect IDEA for Your business.

  • Do You Really Want to your Own a Business?

    Do You Really Want to your Own a Business?


    If “Yes” So, this article of post little help you How to Start. “Hope springs eternal in the human breast,” said English poet and essayist Alexander Pope several centuries ago. He wasn’t describing people expanding or starting a business, but he may as well have been. Everyone who goes into business for themselves hopes to meet or surpass a set of personal goals.

    A business (also known as an enterprise, a company or a firm) is an organizational entity involved in the provision of goods and services to consumers. Businesses serve as a form of economic activity and are prevalent in capitalist economies, where most of them are privately owned and provide goods and services allocated through a market to consumers and customers in exchange for other goods, services, money, or other forms of exchange that hold intrinsic economic value. Businesses may also be social non-profit enterprises or state-owned public enterprises operated by governments with specific social and economic objectives. A business owned by multiple private individuals may form an incorporated company or jointly organize as a partnership. Countries have different laws that may ascribe different rights to the various business entities.

    The word “business” can refer to a particular organization or to an entire market sector (for example: “the financial sector”) or to the sum of all economic activity (“the business sector”). Compound forms such as “agribusiness” represent subsets of the concept’s broader meaning, which encompasses all activity by suppliers of goods and services.

    Sole Ownership: A sole proprietorship (ownership), also known as a sole trader, is owned by one person and operates for their benefit. The owner operates the business alone and may hire employees. A sole proprietor has unlimited liability for all obligations incurred by the business, whether from operating costs or judgments against the business. All assets of the business belong to a sole proprietor, including, for example, a computer infrastructure, any inventory, manufacturing equipment, or retail fixtures, as well as any real property owned by the sole proprietor.

    Do You Really Want to your Own a Business - Sole Ownership

    While your particular configuration is sure to be unique, perhaps you will agree with some of the ones I have compiled over the years from talking to hundreds of budding entrepreneurs.

    Independence: A search for freedom and independence is the driving force behind many businesspeople. Wasn’t it Johnny Paycheck who wrote the song “Take This Job and Shove It?”

    Personal Fulfillment: For many people, owning a business is a genuinely fulfilling experience, one that lifetime employees never know.

    Lifestyle Change: many people find that while they can make a good income working for other people, they are missing some of life’s precious moments. With the flexibility of small business ownership, you can take time to stop and smell the roses.

    Respect: Successful small business owners are respected, both by themselves and their peers.

    Money: You can get rich in a small business, or at least do very well financially. most entrepreneurs don’t get wealthy, but some do. If money is your motivator, admit it.

    Power: When it is your business, you can have your employees do it your way. There is a little Ghengis Khan in us all, so don’t be surprised if power is one of your goals. If it is, think about how to use this goal in a constructive way.

    Right Livelihood: From natural foods to solar power to many types of service businesses, a great many cause-driven small businesses have done very well by doing good.

    If owning a small business can help a person accomplish these goals, it’s small wonder that so many are started. Unfortunately, while the potential for great success exists, so do many risks. Running a small business may require that you sacrifice some short-term comforts for long-term benefits. It is hard, demanding work that requires a wide variety of skills few people are born with. But even if you possess (or more likely acquire) the skills and determination you need to successfully run a business, your business will need one more critical ingredient: money.

    You need money to start your business, money to keep it running, and money to make it grow. This is not the same thing as saying you can guarantee success in your small business if you begin with a fat wallet. now, let me confess to one major bias here. I believe that most small business owners and founders are better off starting small and borrowing, or otherwise raising, as little money as possible. Put another way, there is no such thing as “raising plenty of capital to ensure success.” Unless you, as the prospective business founder, learn to get the most mileage out of every dollar, you may go broke and will surely spend more than you need to. But that doesn’t mean that you should try to save money by selling cheap merchandise or providing marginal services. In today’s competitive economy, your customers want the best you can give them at the best price. They will remember the quality of what they get from you long after they have forgotten how much they paid.

    In practical terms, that means you must buy only the best goods for your customers. Anything that affects the image your business has in your customer’s mind should be first-rate. It also means that you shouldn’t spend money on things that don’t affect the customer. For example, unless you’re a real estate broker your customers probably won’t care if you drive an old, beat-up car to an office in a converted broom closet, as long as you provide them an honest product or service for an honest price. Save the nice car, fancy office, and mobile telephone until after your business is a success.

    Self-Evaluation Exercises

    Here’s a question to ponder: Are you the right person for your business? Because running a business is a very demanding endeavor that can take most of your time and energy, your business probably will suffer if you’re unhappy. Your business can become an albatross around your neck if you don’t have the skills and temperament to run it. Simply put, I’ve learned that no business, whether or not it has sound financial backing, is likely to succeed unless you, as the prospective owner, make two decisions correctly:

    • You must honestly evaluate yourself to decide whether you possess the skills and personality needed to succeed in a small business.
    • You must choose the right business.

    A small business is a very personal endeavor. It will honestly reflect your opinions and attitudes, whether or not you design it that way. Think of it this way: The shadow your business casts will be your shadow. If you are sloppy, rude, crafty, or naively trusting, your business will mirror these attributes. If your personal characteristics are more positive than those, your business will be more positive, too. To put this concretely, suppose you go out for the Sunday paper and are met by a newsie who is groggy from a hangover and badmouths his girlfriend in front of you. chances are that next Sunday will find you at a different newsstand.

    I’m not saying you need to be psychologically perfect to run a small business. But to succeed, you must ask people for their money every day and convince a substantial number of them to give it to you. By providing your goods or services, you will create intimate personal relationships with a number of people. It makes no difference whether you refer to people who give you money as clients, customers, patients, members, students, or disciples. It makes a great deal of difference to your chances of ultimate success if you understand that these people are exchanging their money for the conviction that you are giving them their money’s worth.

    The following self-evaluation exercises will help you assess whether you have what it takes to successfully run a small business. Take out a blank sheet of paper or open a computer file.

    Your Strong and Weak Points

    Take a few minutes to list your personal and business strengths and weaknesses. Include everything you can think of, even if it doesn’t appear to be related to your business. For instance, your strong points may include the mastery of a hobby, your positive personality traits, and your sexual charisma, as well as your specific business skills. Take your time and be generous.

    To provide you with a little help, I include a sample list for Antoinette Gorzak, a personal friend who has what she hopes is a good business idea: a slightly different approach to selling women’s clothing. You’ll get to know her better as we go along. Her strengths, weaknesses, fantasies, and fears are surely different from yours. So, too, almost certainly, is the business she wants to start. So be sure to make your own lists—don’t copy Antoinette’s.

    Your list of strong and weak points will help you see any obvious conflicts between your personality and the business you’re in or want to start. For example, if you don’t like being around people but plan to start a life insurance agency with you as the primary salesperson, you may have a personality clash with your business. The solution might be to find another part of the insurance business that doesn’t require as much people contact.

    Unfortunately, many people don’t realize that their personalities will have a direct bearing on their business success. An example close to the experience of folks at nolo involves bookstores. In the years since nolo began publishing, they have seen all sorts of people, from retired librarians to unemployed Ph.D.’s, open bookstores. A large percentage of these stores have failed because the skills needed to run a successful bookstore involve more than a love of books.

    General and Specific Skills Your Business Needs

    Businesses need two kinds of skills to survive and prosper: Skills for business in general and skills specific to the particular business. For example, every business needs someone to keep good financial records. on the other hand, the tender touch and manual dexterity needed by glassblowers are not skills needed by the average paving contractor. Next, take a few minutes and list the skills your business needs. don’t worry about making an exhaustively complete list, just jot down the first things that come to mind. make sure you have some general business skills as well as some of the more important skills specific to your particular business.

    If you don’t have all the skills your business needs, your backers will want to know how you will make up for the deficiency. For example, let’s say you want to start a trucking business. You have a good background in maintenance, truck repair, and long distance driving, and you know how to sell and get work. Sounds good so far—but, let’s say you don’t know the first thing about bookkeeping or cash flow management and the thought of using a computer makes you nervous. Because some trucking businesses work on large dollar volumes, small profit margins, and slow-paying customers, your backers will expect you to learn cash flow management or hire someone qualified to handle that part of the business.

    Your Likes and Dislikes

    Take a few minutes and make a list of the things you really like doing and those you don’t enjoy. Write this list without thinking about the business—simply concentrate on what makes you happy or unhappy.

    If you enjoy talking to new people, keeping books, or working with computers, be sure to include those. Put down all the activities you can think of that give you pleasure. Antoinette’s list is shown as an example.

    As a business owner, you will spend most of your waking hours in the business, and if it doesn’t make you happy, you probably won’t be very good at it. If this list creates doubts about whether you’re pursuing the right business, I suggest you let your unconscious mind work on the problem. most likely, you’ll know the answer after one or two good nights’ sleep.

    Specific Business Goals

    Finally, list your specific business goals. Exactly what do you want your business to accomplish for you? Freedom from 9 to 5? money—and if so, how much? more time with the children? making the world or your little part of it a better place? It’s your wish list, so be specific and enjoy writing it.

    How to Use the Self-evaluation Lists?

    After you’ve completed the four self-evaluation lists, spend some time reading them over. Take a moment to compare the skills needed in your business to the list of skills you have. do you have what it takes?

    Show them to your family and, if you’re brave, to your friends or anyone who knows you well and can be objective. of course, before showing the lists to anyone, you may choose to delete any private information that isn’t critical to your business. If you show your lists to someone who knows the tough realities of running a successful small business, so much the better. You may want to find a former teacher, a fellow employee, or someone else whose judgment you respect.

    What do they think? do they point out any obvious inconsistencies between your personality or skills and what you want to accomplish? If so, pay attention. Treat this exercise seriously and you will know yourself better. oh, and don’t destroy your lists. Assuming you go ahead with your business and write your business plan, the lists can serve as background material or even become part of the final plan.

    You have accomplished several things if you have followed these steps. You have looked inside and asked yourself some basic questions about who you are and what you are realistically qualified to do. As a result, you should now have a better idea of whether you are willing to pay the price required to be successful as a small businessperson. If you are still eager to have a business, you have said, “Yes, I am willing to make short-term sacrifices to achieve long-term benefits and to do whatever is necessary—no matter the inconvenience— to reach my goals.”

    Reality Check: Banker’s Analysis

    Banks and institutions that lend money have a lot of knowledge about the success rate of small businesses. Bankers are often overly cautious in making loans to small businesses. For that very reason it makes sense to study their approach, even though it may seem discouraging at first glance.

    Do You Really Want to your Own a Business - Bankers

    Banker’s Ideal

    Bankers look for an ideal loan applicant, who typically meets these requirements:

    • For an existing business, a cash flow sufficient to make the loan payments.
    • For a new business, an owner who has a track record of profitably owning and operating the same sort of business.
    • An owner with a sound, well-thought-out business plan.
    • An owner with financial reserves and personal collateral sufficient to solve the unexpected problems and fluctuations that affect all businesses.

    Why does such a person need a loan, you ask? He or she probably doesn’t, which, of course, is the point. People who lend money are most comfortable with people so close to their ideal loan candidate that they don’t need to borrow. However, to stay in business themselves, banks and other lenders must lend out the money deposited with them. To do this, they must lend to at least some people whose creditworthiness is less than perfect.

    Measuring Up to the Banker’s Ideal

    Who are these ordinary mortals who slip through bankers’ fine screens of approval? And more to the point, how can you qualify as one of them? Your job is to show how your situation is similar to the banker’s ideal.

    A good bet is the person who has worked for, or preferably managed, a successful business in the same field as the proposed new business. For example, if you have profitably run a clothing store for an absentee owner for a year or two, a lender may believe you are ready to do it on your own. All you need is a good location, a sound business plan, and a little capital. Then, watch out Neiman-Marcus!

    Further away from a lender’s ideal is the person who has sound experience managing one type of business, but proposes to start one in a different field. let’s say you ran the most profitable hot dog stand in the Squaw valley ski resort, and now you want to market computer software in the Silicon Valley of California. In your favor is your experience running a successful business. on the negative side is the fact that computer software marketing has

    no relationship to hot dog selling. In this situation, you might be able to get a loan if you hire people who make up for your lack of experience. At the very least, you would need someone with a strong software marketing background, as well as a person with experience managing retail sales and service businesses. naturally, both of those people are most desirable if they have many years of successful experience in the software marketing business, preferably in California.

    Use the Banker’s Ideal

    It’s helpful to use the bankers’ model in your decision-making process. Use a skeptical attitude as a counterweight to your optimism to get a balanced view of your prospects. What is it that makes you think you will be one of the minority of small business owners who will succeed? If you don’t have some specific answers, you are in trouble. most new businesses fail, and the large majority of survivors do not genuinely prosper.

    Many people start their own business because they can’t stand working for others. They don’t have a choice. They must be either boss or bum. They are more than willing to trade security for the chance to call the shots. They meet a good chunk of their goals when they leave their paycheck behind. This is fine as far as it goes, but in my experience, the more successful small business owners have other goals as well.

    A small distributor we know has a well thought-out business and a sound business plan for the future. Still, he believes that his own personal commitment is the most important thing he has going for him. He puts it this way: “I break my tail to live up to the commitments I make to my customers. If a supplier doesn’t perform for me, I’ll still do everything I can to keep my promise to my customer, even if it costs me money.” This sort of personal commitment enables this successful business owner to make short-term adjustments to meet his long-range goals. And while it would be an exaggeration to say he pays this price gladly, he does pay it.

    Note: This article of “Do You Really Want to your Own a Business?” from Internet and book of How to Write a Business Plan, only for share knowledge with help.