Why do relationships matter in the 21st century B2B enviroment Essay

Why do relationships matter in the 21st century B2B enviroment - Essay Example and business studies have divided customers in two groups in order to study their needs and behaviour, and these groups have been categorised as B2C customers- individual customers and households and B2B customers- organizational customers (Kotler et al, 2006). The B2B structure is such that the organization implements a variety of processes to serve their business customers in a much mature and productive manner. The nature of dealings of B2B customers makes the environment different and diverse than B2C customers. Business customers have more reasons and logics to make a strong partnership with the seller. However, an individual customer may not have the capacity and influence to sustain the same level of partnership with the seller as the organizational customer. Implementing any strategy that leads to building better relationships in a B2B environment is easier because the number of customers are limited and the organisation may set customer specific policies to attend to the needs in a more flexible manner (Kotler et al, 2006). One of the companies that have successfully developed an ideology based on importance of relationships in the twenty first century is BT Radianz- a company which supplies connectivity solutions to the global financial community. It is a company which operates heavily into the B2B market and makes the simplified contact of a limited number of customers. However, apart from just taking the big vendors that make a portion of the licensing fee in terms of revenues for BT Radianz- the formulation of relationships have been set on priority through CRM and other tools to get feedback from the client. This interaction with the client makes the possibility of providing the exact services the B2B client needs and makes them feel like an individual whose business and character matters to its business circle (Bacon & Pugh, 2004). Without this relationship building, business models would fail as organizations would not know their weaknesses and

Ethics in Accounting - Enron (History and Background of Enron) Essay

Ethics in Accounting - Enron (History and Background of Enron) - Essay Example Lay was named the chief executive officer in 1986. This is when the company adopted the name Enron Corp. During the merger, Enron had incurred a huge debt and lost its executive rights to pipelines as a result of deregulation. In 1987, the company realized that it had made a loss of close to $ 1 billion, it worked the loss down to $ 142 million, and the loss made the company adopt a different strategy in order to cushion itself against price fluctuations (Lucian & Cristina, 2007). Jeff Skilling, a consultant hired by the company, came up with a new business plan that would help the company generate earnings. This new approach called for the creation of gas banks where Enron Corp bought gas from different suppliers and sold it to consumers (Thomas, 2002). Enron assumed the associated risks. The company started to venture into other business areas beyond the natural gas and pipeline. This saw Enron become a financial trader as well as market maker in various products and services including water, broadband, coal, power, and steel among others. In 1992, the Enron extended its operations to South America through the acquisition of Transportadora de Gas del Sur. By 1993, the company’s power plant in England began to operate. By the late 1990s, the company had started to implement a number of innovations that would help to lower the cost of electricity and gas by almost 50 percent. In 1994, the company did its first electricity trade which proved to be profitable. In 1995, after the establishment of a trading center in London, Enron ventured into the European wholesalers market. The construction of the Dabhol power plant to be located in India started in 1996, although the project was later abandoned and put up for sale due to political reasons. During the same year, Skilling was made the chief operating officer for the company. He managed to convince Lay that the gas bank model he had introduced could be applied to electric energy

Global Market Segmentation And Mode Of Entry Strategies Marketing Essay

Global Market Segmentation And Mode Of Entry Strategies Marketing Essay A market can be subdivided or segmented by geographic, demographic, psychographic or behavioral variables (Kotler, 1993, p.54). Market segmentation is the division of a market into distinct groups of buyers who act differently than other groups of buyers but behave homogeneously within their segment (Tynan, 1987, p.327). In 1956, Wendell Smith first introduced the concept of market segmentation, arguing that in place of mass markets, goods would find their markets of maximum potential as a result of recognition of differences in the requirements of market segments (Smith, 1956, p.6). Since that time, market segmentation has become a core concept both in marketing theory and real-world applications (Meadows, 1998, p. 394). In one of his seminal articles entitled The Globalization of Markets, Theodore Levitt a former Harvard professor and one of the leading thinkers of modern day marketing principles, put forward the concept of a homogenized global market, driven in large part by low cost, standardized goods (Levitt, 1983, p. 92). Levitt argued that the multinational corporation focused heavily on localization and adaptation to local market conditions, would be replaced by the global corporation that views the entire world as a single market (Quelch, 2007, p.148). Dr. Levitt popularized the term globalization and asserted that consumers worldwide were becoming more and more alike because of changing technology and communications (Quelch, 2007, p.148). All markets have one great thing in common, he wrote -an overwhelming desire for dependable, world-standard modernity in all things, at aggressively low prices (Levitt, 1983, p. 86). However, export markets cannot be regarded solely as a single entity, nor do the products offered have a universal appeal in many instances (Foedermayr, 2008, p.241). Accordingly, an export market segmentation strategy allows firms to identify both differences and similarities in various export markets and reach export segments that cut across geographically defined markets (Foedermayr, 2008, p.233). Furthermore, by focusing on similarities among export markets, firms can benefit from homogeneity in product, image, marketing tools and advertising message in different export destinations (Foedermayr, 2009, p.61). Tailoring the marketing mix for particular segments leads to better planning and more effective use of marketing resources (Kotler, 1993, p.54). Of the major segmentation criteria, geographic variables while useful are considered by some to be ranked the lowest as a basis for market segmentation (Keegan, 2002, p. 193). Geographic segmentation is segmentation based on geographical attributes such as population density, region, language and weather. For instance, consumers may be segmented by region (Wyner, 2009, p. 6). When companies choose this approach, they might consider an entire continent. Many companies opt to localize their products or services to accommodate the local needs and wants of consumers (Foedermayr, 2008, p.246). Sometimes geographic segmentation may refer to the size of the population. In other instances, population density is a basis of geographical segmentation. In such scenarios, companies classify their consumers on the basis of their rural, urban or suburban preferences. Such an approach is common among a wide range of companies (Kotler, 1993, p.54). Determining which global markets are the largest based upon geographic segmentation depends on the variable you are focused on (Foedermayr, 2008, p.233). Brazil, Russia, India and China (BRIC) are four dominant markets based upon geographic population density segmentation variables (Kilby, 2006, p. 30). With an estimated two billion new consumers entering the global market and a population total in nearing three billion, these emerging markets afford global companies with tremendous long-term opportunities and clearly seem to be the major geographic segment of the global market. Segmentation based upon demographics is when the market is divided along personal characteristics such as age, sex, income, or occupation. These variables are easy to measure, and consumer wants, preferences, and usage rates are often highly associated with demographic variables (Selecting, 1996, p. 21). Finding groups of consumers with strong, homogeneous bonds is the Holy Grail of marketing. When such similarities exist, marketers can offer the same (or very similar) product, to a large number of potential customers who are more likely to respond in the way desired. Efficiency in marketing is realized and marketers and consumers benefit (Schewe, 2004, p. 57). A key demographic market segment appears to be teenagers. This demographic is most appealing for companies looking to adopt a geocentric strategy due to the increasingly homogeneous mature of this demographic (Budeva, 2007). By looking at groups of people based upon age related cohorts, we can easily see similarities among these groups. The Y generation cohert, born after 1977 is the youngest and most tech savvy (Schewe, 2004, p.59). The youngest cohort, it has grown up with the advent of the internet. This has become a defining event for them, and they will be the engine of growth over the next two decades (Schewe, 2004, p.61). Their core value structure seems to be quite different from that of Gen-X. They are more idealistic and social-cause oriented, without the cynical, Whats in it for me? mindset of many Gen-Xers. The internet links them in a way not seen before and provides marketers with a great opportunity to reach this targeted demographic through new media such as social networking modes (Meredith, 2002). In India, there exist more people under the age of 20, then the entire population of The United States (Schewe, 2004, p.66). With one of the youngest populations in the world, those companies looking to target the teenager demographic will certainly need to look at India. Risks and Rewards of Various Entry Mode Strategies Among the myriad of complicated decisions an international business needs to make, entry mode strategies are viewed by some as most important (Driscoll, 1997, p. 66). Apart from deciding on an appropriate market and product combination, an important strategic issue is the choice of a suitable entry mode that makes possible the entry of a companys products, technology, human skills, management or other resources into a foreign country (Root 1982, p.24). The selection of an entry mode has been identified as a crucial decision facing managers (Drakulich, 2009, p. 51). Entry mode decisions are those decisions made by a firm on how best to enter a foreign market (Rasheed, 2005, p. 47). There are several core options available to companies looking to expand into cross-border markets. Franchising, licensing, joint ventures, global strategic partnerships (GSPs), acquisitions, exporting and green field investments are some of the key strategic options available (Mayrhofer, 2004, p. 77). Entering a new market can have substantial risks. In general, political, legal and economic risk factors can and do play a central role in the decision making process of how best to enter a market (Mottner, 2000, p. 178). Historically, these risk factors have caused companies to adopt a cautious approach toward cross-border expansion. Additionally, many countries concerned about loss of national sovereignty put in place barriers designed to limit the level and scope of foreign investment (Kotabe, 1996, p.81). As a result, licensing has become a widely used option for many companies trying to expand into foreign markets (Kotabe, 1996, p.81). International licensing provides a door to global opportunities for a firm that is unwilling or unable to leave its own shores (Mottner, 2000, p. 176). It allows the firm to benefit from the overseas exploitation of its mobile assets while avoiding the greater risks inherent in foreign direct investment. Therefore, international licensing is an attractive option to be employed for a firm seeking to expand into emerging and transitional economies where there may be a higher perception of risk (Driscoll, 1997, p. 81). Among the many risk factors associated with licensing surrounds the potential violation of intellectual property (Drakulich, 2009, p. 51). Consequently, the discussion of international licensing has focused increasingly on issues of intellectual property rights (Takigawi, 2003, p. 893). Intellectual property rights are a major concern for licensors, as they deal not only with more traditional forms of trademarks and patented know-how, but also with the increased availability of copyrighted material, including emerging computer technology (Mottner, 2000, p. 180). Highly developed nations, which produce a large proportion of intellectual property, tend to have stricter laws surrounding its use and violation (Kotabe, 1996, p. 83). Whereas, lesser developed economies whose primary competitive advantage might be labor or resources, tends not to enforce intellectual property rights as effectively (Johnson, 2008, p. 9). According to Glazer (1993), firms are licensing assets that are in the form of information/ideas or knowledge, and that have some characteristics of a commodity. Today these assets may include research and development ideas, inventions, formulas, technological know-how, services, brands, art, music, designs, and trademarks (Glazer, 1993, p. 517). More recently, the role of licensing in international business has been considered part of a firms overall international strategy (Davis, 2000, p. 244). A firms decision to license is based on many different factors. Beyond the normal risks of business in general, and of international business in particular, there are particular risks associated with international licensing (Uhlenbruck, 2006, p. 412). It is evident from a review of the various streams of research in international licensing that the perceptions of seven risk factors have been identified in the literature: (1) suboptimal choice; (2) risk of opportunism; (3) quality risks; (4) production risks; (5) payment risks, (6) contract enforcement risks, and (7) marketing control risks (Mottner, 2000, p. 178). In the music industry for example, the risk of piracy has been a major obstacle to international licensing. In China, western companies have been disinclined to license western pop music to local manufacturers because of the prevalence of pirate CD plants in the southern provinces (Burpee, 1996). Licensing in Japan poses far fewer risks then in developing nations as the government of Japan appears to have focused increased attention toward protecting intellectual property. As Japan has seen its competitive advantage in production slip away to other regional countries in Asia, they have come to recognize the value and importance of innovation (Takigawi, 2003, p. 877). In fact, The World Intellectual Property Organizations Statistics on Patents 2008 puts Japan at the top of the list of all patent grants by country, ahead of the United States, South Korea and Germany(Licensing, 2009, p. 39). Based upon the research, Japan appears to be a good potential market to license a product to. The laws are such that any intellectual property will be protected and the industrial efficiencies of Japan make it an optimal initial market to begin internationalizing the firm. Distinctions Between Global Strategic Partnerships and Joint Ventures Global Strategic Partnerships (GSPs) are those alliances in which two or more companies develop a common, long-term strategy aimed at world leadership as low-cost suppliers, differentiated marketers, or both, in an international arena. Secondarily, the relationship among GSP members is reciprocal. The partners should typically possess specific strengths that they are prepared to share with their colleagues (Perlmutter, 1986, p. 139). A third attribute associated with GSPs is the focus is a global rather than regional one (Inkpen, 2004, p.591). The GSP should be focused on extending beyond a few developed countries to include nations of the newly industrializing, less developed and socialist world (Perlmutter, 1986, p. 137). The GSP model is typically more flexible about ownership and managerial control. It encourages joint decision making, vertical and horizontal planning, and the fusion of competent allies from around the world despite cultural differences (Inkpen, 2004, p. 587). Managers who want to implement GSPs must be ready to make fundamental philosophical changes. Without a new mind-set GSPs are bound to fail (Perlmutter, 1986, p. 133). Finally, the GSP relationship should be highly organized along horizontal, not vertical, lines. Technology exchanges, resource pooling, and other soft forms of combination are the rule. The participating companies retain their national and ideological identities while competing in those markets excluded from the partnership (Grossack, 1986). Increasingly, to be globally competitive, multinational corporations must be globally cooperative. This necessity is reflected in the acceleration of global strategic partnerships (GSPs) among companies large and small (El Kahal, 2001, p.227). GSPs have become an important new strategic option that touches every sector of the world economy, from manufacturing to services. GSPs are not the exclusive domain of large multinational corporations. Enormous companies will frequently combine with smaller ones to exploit their entrepreneurial capabilities and market niches (Perlmutter, 1986, p. 144). This was the case years ago, when IBM teamed up with Microsoft to exploit the latters growing expertise in software for desktop computers. The smaller companies like Microsoft, benefit by gaining access to global markets and the resource strength of their bigger partners (Schlicher, 2006, p. 14). On the other hand, another mode of entry option available to a firm would include Joint Venture Partnerships (JVPs). A JVP is formed when two or more companies combine a portion of their resources to create a separate jointly owned operation (Driscoll, 1997, p. 73). Unlike GSPs, JVPs tend to be more localized within a particular market or region (Inkpen, 1999, p. 38). Typically JVPs will have two primary partners as opposed to GSPs which can have multiple parties involved (Uhlenbruck, 2006, p. 413). The research suggests that companies that have a geocentric view and strategy would be more likely to form GSPs. There certainly are risks associated with both GSPs and JVPs, however, because the risk is shared among more members in a GSP platform, it would seem that this form of partnership tends to mitigate risks more so than JVPs.

Mayans, Incas, and Aztecs

The Three Great American Cultures Central and South America is said to have been first discovered in the late fifteenth century; however, to say that the land before this time was unknown to all of humanity would be a fallacy and a great insult to the three great ancient cultures that ruled before their European conquest. The Aztecs, Incas, and Mayans were three distinct groups of people that thrived in the Americas prior to their â€Å"discovery† and all have a diversely rich background full of people, tradition, and culture. Recorded Aztecan history begins at the start of the twelfth century when the Aztec people first moved out in search of a new homeland. In 1325 they founded their new home with the creation of Tenochtitlan, a large city which is now the location of common-day Mexico City. The life of the Aztec people was multifaceted – filled with school systems, laws, clothing fashions, and traditional food. They had different scholastic buildings in place for children depending on their economic and noble rank among the people. Noble children would attend a school called a calmecac that would teach them history, religion, and the ways to govern. Meanwhile, the common children could go to a telpochacalli where they would learn aspects of war and trade work, but if a child showed enough promise and intelligence he or she could be sent up to one of the calmecacs to prepare for a higher future career. Crime and punishment was a severe topic for Aztecs; the breaking of many of their laws resulted immediately in death, some of which included: adultery, treason, theft, drunkenness, and even cutting down a living tree. Interestingly as well, if a commoner were to wear cotton clothing (something reserved only for nobility) they too would be put to death. Nobles dressed most lavishly among their people, opting for the brightest colors, and often used bird feathers to make headdresses that indicate their high status. The staple food for the Aztecs was corn. They also ate tomatoes, avocadoes, and tamales. Aztecs ruled for hundreds of years up until their peak in 1502 under their ruler Moctezuma II. The Spanish first arrived in 1519 with the conquistador Hernando Cortez, and by 1522 all the Aztecs once celebrated in Tenochtitlan was destroyed. Toward the south during the same time as the Aztecan people, the Incas were also in their peak from 1200 until 1535. They lived in what is now Peru and Chile, and before their fall had massed the largest Native American society. Part of the reasoning behind why the Incas became such a large tribe comes from their dominance in battle and their desire to conquer the neighboring tribes. During their peak, the Incan army had over forty thousand troops, patrolling in their lands. Living in the Andes mountain range also made for some interesting architecture. The Incas made large fortresses on the sides of steep mountains in order to protect their people and also see enemies if they were attacking from afar. Arranged as they were on the sides of mountains, Incan cities lead themselves to be hierarchically and religiously symbolic. The tallest point of their cities were reserved for religious practices, often in adoration for their sun god Along with their buildings, the Incas had advanced drainage systems used for irrigation to grow many of the crops the Aztecs did such as tomatoes, corn, cocoa, and cotton. Sadly the Incans shared more with the Aztecs than just their mutual crops; in 1535 they too were conquered by Spanish forces. While the Aztecs and Incas had much in common, perhaps the most different of the three great American societies were the Mayans found in the southern tip of common day Mexico and Guatemala. Unlike their neighbors to the north and south, the Mayans did not govern its people under a single ruler. Instead, the Mayans were comprised of smaller local city-states that ruled independently of one another. Each had its own ruler that was believed to be a descendant of the gods. But while they were independently ruled, the city-states all shared a common written language, religious beliefs, and a calendar system. The Mayans are the only known Native American culture that developed a written language, of which there are four existing books along with countless murals and wall writings. Much like the Aztecs and Incas, the Mayans practiced human sacrifices. Because they believed that their nobility were decedents of the gods, it was customary for a city-state’s ruler to partake in ritual bloodletting along with sacrificing rival neighboring nobles. They also followed their ritual calendar that was comprised of a thirteen month and twenty day cycle. It marked the passing of planets, stars, and allowed the people to know when the proper time was to plant and harvest. Perhaps these calendars helped them predict other things as well because unlike the Aztecs and Incas, the Mayans were never conquered by Spain because of their mysterious disappearance around the sixteenth century. Works Cited The Ancient Aztecs. Think Quest. 1999. Web. 1 February 2010. Criscenzo, Jeeni. The Maya. Jaguar Sun. 2000. Web. 1 February 2010. Inca. Minnesota State University. Web. 1 February 2010.

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Early Life Development Of Children Essay - 1592 Words

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The environment in which a child is born and grows in majorly affects his health status. Children born into safe, interconnected communities tend to develop into smart, caring and peaceful adults. Their upbringing also lays down a foundation for their personality traits such as extrovert or choleric personas. The reason behind such personalities is the stable mental health of the child. The brain develops faster during the first years of a child’s life mainly due to the different surroundings that the child experiences. These critical years affect theShow MoreRelatedThe, The Very Hungry Caterpillar, Wheres Spot?1694 Words   |  7 Pageshas positive impacts on their brain development. According to the U.S. Department of Education, â€Å"Children develop much of their capacity for learning in the first three years of life, when their brains grow to 90 percent of their eventual adult weight† (Start Early, Finish Strong). 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Applying Theoretical Interventions For Clients...

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