The Velvet Revolution was a revolution in Prague that started with thousands of university students demonstrating on the International Student's Day on the eve of November 16, 1989. On November 17 more people started to join the students in the square. They had been against the government for a long time but been to scared to say or do anything about it. The masses of people grew every day. By November 20, 100,000 people have joined the demonstrations and by November 25 there were 800,000 people demonstrating in Prague and 100,000 in Bratislava. It was obvious that a lot of people had been dissatisfied with the government.
But now it turns out that a lot of people in both Slovakia and the Czech Republic would like the old government back. After the communist government stepped down people thought that everything would get a lot better, but not everybody thinks it did. 54 percent of Czechs and 70 percent of Slovak do not think that the post-communist developments have not met the expectations according to a study conducted by the Median polling institute for Czech and Slovak television and radio. And about one fifth of Czechs and Slovaks think that the situation has worsened since 1989. But the study also shows that this is only accurate if you look at the people who earn less than 20,000 crowns or 800 euros a month. The people that have good educations and better paid jobs are fairly satisfied. And the only big reason for peoples disappointment is social uncertainty and employment. People felt more secure during the communism and some would like that security back even if that meant have no, or very little freedom.
tisdag 18 november 2014
måndag 10 november 2014
Brand Identity
Every brand has an identity that gives people an idea of what they stand for and what they do. The identity also shows the brands value and the more unique the identity is the better because that makes it recognizable. This is good because people like thighs they recognize and we are more likely to go back to a place we liked than to try something new. McDonald's is one of the biggest brands of all time and it is the biggest food chain in the world. One of the reasons for their success is a clear brand identity. A study shows that more kids know about McDonald's and Ronald McDonald than Jesus and kids are exposed to 250 McDonald's adds every year. McDonald's is directed towards families and especially kids. Kids view McDonald's as a happy and fun place where you can eat. They have the happy meals and playgrounds all to attract children and make them remember McDonald's as fun so that they will keep going there for the rest of their lives. Also it doesn't matter in what country you order your food because you will get the same thing everywhere. McDonald's food is consistent and it feels safe for the customer to go to McDonald's anywhere because they know what they will get. This is also a thing that McDonald's chose to be associated with.
onsdag 5 november 2014
Ethical Marketing
Pricing:
Product:
Ethical products are for example made in factories with good working conditions and where the employees are paid a fair amount for their work. The product should not have harmed anybody during the production and it should be completely safe for the user.
Unethical product are often products where the business is hiding the production of their products. They might have big factories in other countries with cheaper labor and where nobody is watching their working conditions. They can also be using child labor or test their products on animals.
Ethical pricing of a product is to have a price that is high enough to pay for employees in the store and give the business some profits that also will be shared with the shareholders of the company. Setting prices low to get rid of old products or to introduce a new product to the market is also completely ethical.
What is not ethical i to set your prices way to low only to get rid of competitors that can't lower their prices a much. There are also problems with setting prices too high. If there is only one source of a particular product, the company providing the product can be tempted to higher their prices to get huge profits when costumers start buying the product for the new price because they have no where else to go.
Promotion: What is not ethical i to set your prices way to low only to get rid of competitors that can't lower their prices a much. There are also problems with setting prices too high. If there is only one source of a particular product, the company providing the product can be tempted to higher their prices to get huge profits when costumers start buying the product for the new price because they have no where else to go.
When promoting a product that can be dangerous in certain situations the ethical thing to do would be to first clearly show that it can be harmful or even deadly. This needs to be easy to find for the customer when he or she is buying the product. It also needs to be clear how to avoid the danger. If u look at a bottle of hairspray for example, it has a fire symbol showing that it is flammable so that the customer will be more careful and not use the product around fire.
Unethical promotion is when you advertise a product to have qualities that it doesn't have or not mention dangers that the product can cause. If you have a product that should avoid skin contact and you don't show or mention that anywhere you are hiding the truth to make the product seem safe so more people buy it. This is unethical because people can get hurt and it's your responsibility to warn them.
Ethical products are for example made in factories with good working conditions and where the employees are paid a fair amount for their work. The product should not have harmed anybody during the production and it should be completely safe for the user.
Unethical product are often products where the business is hiding the production of their products. They might have big factories in other countries with cheaper labor and where nobody is watching their working conditions. They can also be using child labor or test their products on animals.
onsdag 22 oktober 2014
Case studies Chapter 24
Case study 24.1
1.) Market size is the total level of sales for all businesses within a specific market while the market growth is the pace by which a given market increases or decreases in value.
2.) A car manufacturer obviously wants to sell as many cars as possible so that he can make as high profits as possible. Because China's car industry is growing so rapidly, (about 1 million extra vehicles a year) the car manufacturer selling to China will make huge profits since he can sell so many cars now when they are needed. But if the car market stopped growing the car manufacturer would not be able to sell any cars and he would not make any money anymore. This is why it is important for a car manufacturer selling to china that the car market is growing rapidly.
Case study 24.2
1.) Market A, total value, 2009=162 000. Market A, total value, 2010=187 110.
((187 110-162 000)/162 000)*100=15.5
The percentage increase in the total value of sales for market A between 2009 and 2010 was 15.5 %
2.) Market B, total sales, 2009=10 000. Market B, total sales, 2010=15 000.
((15 000-10 000)/10 000)*100=50
The percentage increase in total sales volume in market B between 2009 and 2010 was 50%
Case study 24.3
1.) (35 000 000 000/100)*31=10 850 000 000
Tesco Lotus's sales in the Thai supermarket industry in 2008 was 10 850 000 000
2.) (12 850 000 000/45 000 000 000)*100=28.56
Tesco Lotus's 2009 market share was 28.56%
3.) Because Tesco Lotus are market leaders and sell more than anybody else, they can afford to have lower prices because they rely on that enough people buy it so that they still make a profit. When you are the market leader you can definitely lower your prices but still make great profits because you sell such a huge amount of things. Having low prices will also attract more costumers. Also because they know that lots of people buy things from them they can start selling more new things too because they already have the costumers trust. When you already have the costumers trust they are more likely to keep buying things from you so then you can make them buy new things too.
4.) Yes, I do think that the Thai government should put some restrictions on Tesco Lotus's future growth. I don't think that the government should ban Tesco or any other foreign store but I do think that it should be controlled how big they can expand and how low prices they can have. The reason why I think so is because I think it would be a shame if a foreign store got all the costumers so that all local businesses would go bankrupt and have to close. I think it's important to keep traditional things available and make sure that they don't disepear. Having an international supermarket as the market leader may also have effects on the Thai food culture for example. If the store has too much foreign things and not enough Thai things the Thai people might start changing their food habits. Also I think its important to keep the locally owned stores and support them.
1.) Market size is the total level of sales for all businesses within a specific market while the market growth is the pace by which a given market increases or decreases in value.
2.) A car manufacturer obviously wants to sell as many cars as possible so that he can make as high profits as possible. Because China's car industry is growing so rapidly, (about 1 million extra vehicles a year) the car manufacturer selling to China will make huge profits since he can sell so many cars now when they are needed. But if the car market stopped growing the car manufacturer would not be able to sell any cars and he would not make any money anymore. This is why it is important for a car manufacturer selling to china that the car market is growing rapidly.
Case study 24.2
1.) Market A, total value, 2009=162 000. Market A, total value, 2010=187 110.
((187 110-162 000)/162 000)*100=15.5
The percentage increase in the total value of sales for market A between 2009 and 2010 was 15.5 %
2.) Market B, total sales, 2009=10 000. Market B, total sales, 2010=15 000.
((15 000-10 000)/10 000)*100=50
The percentage increase in total sales volume in market B between 2009 and 2010 was 50%
Case study 24.3
1.) (35 000 000 000/100)*31=10 850 000 000
Tesco Lotus's sales in the Thai supermarket industry in 2008 was 10 850 000 000
2.) (12 850 000 000/45 000 000 000)*100=28.56
Tesco Lotus's 2009 market share was 28.56%
3.) Because Tesco Lotus are market leaders and sell more than anybody else, they can afford to have lower prices because they rely on that enough people buy it so that they still make a profit. When you are the market leader you can definitely lower your prices but still make great profits because you sell such a huge amount of things. Having low prices will also attract more costumers. Also because they know that lots of people buy things from them they can start selling more new things too because they already have the costumers trust. When you already have the costumers trust they are more likely to keep buying things from you so then you can make them buy new things too.
4.) Yes, I do think that the Thai government should put some restrictions on Tesco Lotus's future growth. I don't think that the government should ban Tesco or any other foreign store but I do think that it should be controlled how big they can expand and how low prices they can have. The reason why I think so is because I think it would be a shame if a foreign store got all the costumers so that all local businesses would go bankrupt and have to close. I think it's important to keep traditional things available and make sure that they don't disepear. Having an international supermarket as the market leader may also have effects on the Thai food culture for example. If the store has too much foreign things and not enough Thai things the Thai people might start changing their food habits. Also I think its important to keep the locally owned stores and support them.
Chapter 3 Revision activity
1.) Yes, Peugeot Citroen's objectives fit the SMART criteria. The objectives are specific and not broad or unclear in any way. They are for example aiming for "becoming the most competitive car marketer in Europe by 2015". Their goals are also measurable because they have goals set in percentages like, "the profit margin of each car sold is targeted to increase from 2% to 7%". It is very easy to see if this goal is reached or not. Their goals also seem achievable since it feels realistic that they can launch 12 new models in the Chinese market. Their goals are also made to be relevant to all the employees so they have many smaller points that are assign to smaller groups. For example they said the "the human resource department must prepare for up to 8000 job losses" this is mostly relevant if you work in the human resource department. The company also has a time limit for when everything should be done and in this case that is in 2015.
2.) By establishing departmental objectives it becomes easier for the employees to know what is relevant for them to know or to work on. An overall big goal for the business is good because it clarifies what the business wants to accomplish. But a general goal does not tell the employees that much because they still don't know what they should do about it. By setting up goals for each department the employees working there know more specifically how they can contribute to reach the main goal of the business. Also departmental objectives does not seem as overwhelming as the main objective might. They are smaller and therefore they feel more doable.
3.)Yes, I think that Peugeot Citroen's shareholders would be very pleased with the new objectives of the company because all the objectives are towards making greater profits. The new objectives are about expanding the company and making it bigger so that they can produce and sell more. Also all the objectives that try to cut down on cost in production will benefit the company profit wise. So when cutting the cost of production and selling more than before the profits will be very large. Bigger profits for the company means greater profits for the shareholders as well since they own parts of the company so they will probably not complain.
2.) By establishing departmental objectives it becomes easier for the employees to know what is relevant for them to know or to work on. An overall big goal for the business is good because it clarifies what the business wants to accomplish. But a general goal does not tell the employees that much because they still don't know what they should do about it. By setting up goals for each department the employees working there know more specifically how they can contribute to reach the main goal of the business. Also departmental objectives does not seem as overwhelming as the main objective might. They are smaller and therefore they feel more doable.
3.)Yes, I think that Peugeot Citroen's shareholders would be very pleased with the new objectives of the company because all the objectives are towards making greater profits. The new objectives are about expanding the company and making it bigger so that they can produce and sell more. Also all the objectives that try to cut down on cost in production will benefit the company profit wise. So when cutting the cost of production and selling more than before the profits will be very large. Bigger profits for the company means greater profits for the shareholders as well since they own parts of the company so they will probably not complain.
lördag 27 september 2014
Case study 3.6
1.) By being the first aircraft using bio-fuel, the Virgin Atlantic jumbo jet got a lot of publicity which means free advertisement. Their effort in trying to reduce the use of jet fuel (kerossene) is most likely not because the owner of the company is interested in saving the environment, it's simply because they want to make more profit.
2.) Like mentioned before, being the first of something gets you a lot of publicity which makes people aware that you exist. Knowing that that their airplane is using bio-fuel will attract people to fly with them because they think that it's better for the environment and then they feel better about flying. This will attract new costumers and that means higher profits. But the company could also lose from their new strategy. Making airplanes that uses bio-fuel might cost more then normal ones. Also since some of their environmental friendly ideas failed they might get bad publicity and they might lose costumers because they don't trust the company anymore.
2.) Like mentioned before, being the first of something gets you a lot of publicity which makes people aware that you exist. Knowing that that their airplane is using bio-fuel will attract people to fly with them because they think that it's better for the environment and then they feel better about flying. This will attract new costumers and that means higher profits. But the company could also lose from their new strategy. Making airplanes that uses bio-fuel might cost more then normal ones. Also since some of their environmental friendly ideas failed they might get bad publicity and they might lose costumers because they don't trust the company anymore.
Case study 3.5
1.a.) Business ethics are about how the business should behave within the business but also how to interact with other companies, society, and the environment.
1.b.) The code of conduct is more specific to the company and not so general.
2.) The code of conduct and the business ethics can be very helpful and beneficial to a company and its employees. Being reminded how to behave properly can never be a bad thing. Having guidelines is a constant reminder for everybody in the company to remember what they stand for and it might help them make the right decisions. If you have clear rules for what is acceptable and not, it is much easier to see when something something is wrong and should be stopped. It also shows that the company cares about morals which gives them respect and keeps them away from bad publicity.
3.) If a company says that they only do what is ethically right they should keep that promise wherever they go. Only because bad working conditions is considered normal in a country doesn't mean that it is okay. It still has the same negative effect, the only difference is that it's not as noticeable since it happens all the time. If all companies would ignore what is morally right when they go to places where people and environment is treated bad on a daily basis, then working conditions in these places would never change and improve. If a company stands for what is ethically right they should do it everywhere and be a good example for other companies. A companies polices and rules should be the same everywhere no matter where they are located.
1.b.) The code of conduct is more specific to the company and not so general.
2.) The code of conduct and the business ethics can be very helpful and beneficial to a company and its employees. Being reminded how to behave properly can never be a bad thing. Having guidelines is a constant reminder for everybody in the company to remember what they stand for and it might help them make the right decisions. If you have clear rules for what is acceptable and not, it is much easier to see when something something is wrong and should be stopped. It also shows that the company cares about morals which gives them respect and keeps them away from bad publicity.
3.) If a company says that they only do what is ethically right they should keep that promise wherever they go. Only because bad working conditions is considered normal in a country doesn't mean that it is okay. It still has the same negative effect, the only difference is that it's not as noticeable since it happens all the time. If all companies would ignore what is morally right when they go to places where people and environment is treated bad on a daily basis, then working conditions in these places would never change and improve. If a company stands for what is ethically right they should do it everywhere and be a good example for other companies. A companies polices and rules should be the same everywhere no matter where they are located.
CSR
Corporate Social Responsibility (CSR) is an important factor if you want your company to have a good reputation and be successful. Unfortunately, not all companies care about CSR. The hotel Dragon Gate in Älvkarleby is one of them. The Chinese businessman and billionaire Jingchung Li bought the hotel Check point Dalelven but tore it down to build a new and bigger hotel, Dragon Gate. The project started in 2004 and his plan was to build a luxurious hotel in Chinese style and to get everything the way he wanted he started to send Chinese workers to Sweden. But working conditions and wages are very different in China and Sweden and the workers got treated like they would in China, which is a huge problem since you can't get nearly as much things for the same amount of money in Sweden. Also the safety on the construction site was terrible. The workers were not provided with any safety clothing but they were working in normal clothes and they had an illegal elevator which could collapse whenever. Swedish work inspectors came to shut it down but as soon as they left, the elevator was put back into work. There has been no less than 13 cases concerning Dragon Gate, and their penalty was on over 1.1 million for violating the Working Environment Act. In 2005 it had gone so far that Dragon Gate was threatened with blockade so that they wouldn't be able to import any material from China until they met all requirements. Also due to all the illegal businesses that had been going on at the hotel it got voted as the worst construction of the year in 2006.
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