Suncoast Gold Macadamias (Aust) Limited Market entry

Executive Summary Suncoast Gold Macadamias Limited is the leading macadamia product processing company in Australia. In an effort to maximise profit, the firm has incorporated the concept of product diversification. As a result, it has managed to develop a strong product portfolio.Advertising We will write a custom essay sample on Suncoast Gold Macadamias (Aust) Limited: Market entry specifically for you for only $16.05 $11/page Learn More On average, the company’s annual turnover amounts to AUD $ 30 million. Over the years, the firm has nurtured a strong base with regard to tangible and intangible resources. Suncoast Gold Macadamia Limited has also developed numerous unique capabilities and core competencies that have contributed to considerable improvement in the firm’s competitive advantage. In a bid to deal with the problem of climate change, it is critical for the firm to formulate programs that would minimise its weakness with regard to decline in nut production. As its target investment destination, Saudi Arabia presents numerous opportunities for the firm to exploit as illustrated by the country’s characteristics such as the wage rate, population size, economic growth, exchange rate, the political environment, and government policy on trade. The firm will be required to develop effective competitive strategies to deal with the prevailing competition in the market to penetrate the market successfully. Some of the modes of entry that the firm can consider include sole-ownership, joint ventures, and exporting. Of the three options, exporting is the most appropriate entry point into the Saudi Arabian market. In a bid to be successful in its market entry, the firm should conduct comprehensive market research to understand the market dynamics of Saudi Arabia. Upon entering the market successfully, the firm should consider adopting foreign direct investment. Introduction Suncoast Gold Macadamias (Aust) Limited is a public company that operates within the Australian macadamia industry. The company was founded in 1985 and it operates as a cooperative.Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Its core line of business entails production, processing, and supplying of high quality macadamias. Since its inception, the firm has been very successful due to incorporation of effective business and corporate level strategies (Suncoast Gold Macadamias 2010). In an effort to attain its profit maximisation objective, the firm has adopted market expansion as one of its business level strategies. Suncoast Gold Macadamias Limited has successfully managed to establish itself in both the local and international market. Currently, the firm ranks as the global leader in the macadamia industry. Despite its presence in the international market, there are some economies where the firm has not penetrated. One of these countries is Saudi Arabia, which is currently an emerging economy according to business scholars. The purpose of this assignment is to analyse the market entry modes that Suncoast Gold Macadamias (Aust) Limited can incorporate in its international market entry strategy. Ownership Over the past 28 years, Suncoast Gold Macadamias (Aust) Limited has undergone significant growth from being a small business establishment to becoming an international leader in the macadamia industry. Currently, the firm has a substantial annual turnover of approximately AUD $ 30 million. More than AUD $ 21 million of the firm’s total sales are generated from exports, while the domestic market only accounts for AUD $ 9 million (Suncoast Gold Macadamias 2010). Tangible resources Since its inception, the firm’s management has been committed towards establishing a strong competitive advantage. One source of the firm’s competitiveness is effective nut processing technology. The firm has implemented modern nut processing facilities.Advertising We will write a custom essay sample on Suncoast Gold Macadamias (Aust) Limited: Market entry specifically for you for only $16.05 $11/page Learn More Suncoast Gold Macadamias (Aust) Limited has been conducting major plant upgrade by integrating state-of-the-art technology. In 2012, the firm purchased two machines of the most modern sorting technologies in the industry, which significantly enhanced the firm’s competitiveness. For example, its output increased with 50 per cent (Pilcher 2012). In a bid to improve its competitiveness with regard to plant technology, the firm has also purchased a multi-scan machine. The machine has made separation of bad and good nuts more easily in addition to separating nuts based on their weight and colour before cracking. The firm has also established a supplier network of 135 suppliers to ensure that its products are easily accessed in its domestic mark et. Intangible resources In addition to tangible resources, Suncoast Gold Macadamias (Aust) Limited has accumulated various intangible resources. The management team appreciates that the firm’s success is greatly dependent on the effectiveness and efficiency of its human capital. Employee development is one of the elements that the firm has taken into account and to achieve this, the firm has formulated a staff training and education program. The program aims at imparting new knowledge to employees. In addition, the firm is committed to nurturing a strong relationship with its customers, suppliers, and employees (Suncoast Gold Macadamias 2010). In its domestic and international market, the firm has nurtured a strong positive reputation due to its operational efficiency, provision of high quality services, and development of an all-inclusive client service, which has contributed towards development in the level of customer loyalty.Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Capabilities The firm has developed numerous macadamia brands to appeal the diverse customer product needs. The firm has integrated the concept of value addition. The firm supplies different variety of macadamia products such as macadamia oil, chocolate coated, macadamia shortbread, and macadamia nuts. The firm has also developed sufficient capability with regard to packaging. Additionally, the firm ensures that its brands are packaged according to customer specifications. The firm has also developed the capability with regard to supplying fresh and high quality macadamia (Suncoast Gold Macadamias 2010). Core competencies The firm’s success in an industry that is characterised y intense competition has arisen from development of effective core competences. One of the firm’s core competences relates to the provision of high quality macadamias. The firm ranks as the first macadamia company to attain internationally recognised quality within the industry. The firm is also effective in quality management, which it has attained through assimilation of effective quality management systems. Suncoast Gold Macadamias core competencies also emanate from the high rate of innovation that it undertakes. Its innovative ability has played a critical role in enhancing the firm’s competitive advantage. The firm utilises macadamia waste products by generating energy and thus it has managed to minimise the cost energy necessary for its operation. Weaknesses The major source of the firm’s weakness is the high degree of susceptibility to nature. The firm has experienced a poor season due to bad weather over the past few years (The Australian Business Journal 2011). Bad weather adversely affects the firm’s profitability due to decline in the volume of production. However, with numerous environmental conservation measures being undertaken by the government and other environmental stakeholder, the firm expects that climatic conditions will improve c onsiderably. Location advantage Saudi Arabia’s economy is mainly oil-based. The country has the largest proven oil reserves globally. Its rich oil reserves have played an important role in the country’s economic growth and development. In 2011, the country’s Gross Domestic Product (GDP) was estimated to be $676.7 billion, which is an increment from its $635.6 billion in 2010 (Index Mundi 2012). By the end of 2011, it was estimated that the country would undergo a real GDP growth rate of more than 6.5 per cent. The country’s total population is estimated to be 28 million. Additionally, the country has a relatively low rate of unemployment. By the end of 2011, unemployment rate stood at 10.9 per cent (Index Mundi 2012). The country’s snapshot shows that there is a high probability of Suncoast Gold Macadamias succeeding in its profit maximisation by entering in Saudi Arabia. The high rate of economic growth coupled with the relatively low rate of unem ployment means that the country will experience an increment in per capita income. Ultimately, there will be an increment in consumer’s purchasing power. The country’s high population means that the firm can increase its customer base by identifying relevant target customer group. The attractiveness of the country is also enhanced by Saudi Arabia’s recent ascent to the World Trade Organisation. Its ascent will present an opportunity for Suncoast Gold Macadamias to increase its customer base. Customers Saudi Arabians are becoming more concerned with consumption of healthy food products. This transformation has arisen from an increment in cases of diabetes and obesity problems amongst the old and young. A report by Saudi Arabia’s Ministry of Health showed that the rate of diabetes in the country is approximately 30 per cent. Some of the factors that have been attributed to cause diabetes include increased introduction of western diets to the country, adopti on of sedentary lifestyles, and growth in the number of supermarkets. Growth in the level of awareness regarding the health risk of such food products will contribute towards change in consumer purchasing behaviour. Therefore, the shift in consumer purchasing habits presents a high opportunity for Suncoast Gold Macadamias attracting more customers. Saudi Arabia is also characterised by a large number of middle and high-income customers and educated customers. This customer category is the largest consumer of diet products such as the macadamia products produced by Suncoast Gold Macadamias. These customers are more concerned with the nutritional value and quality of the food products in their purchasing patterns (Al Swailem Consulting Group n.d). Politics In 2011, the country experienced an increment in calls for speedy reforms with regard to governance mainly from intellectuals. However, the country has not experienced major incidences of political instability in the recent past com pared to other Arab countries, which experienced the effects of Arab Spring in 2011. The political stability being experienced in Saudi Arabia presents a good opportunity for Suncoast Gold Macadamia to enter the market. According to Klug (2006), a country’s attractiveness is increased by the prevailing peace and tranquillity due to political stability. Government policy (taxes and tariffs) The Saudi Arabian government is greatly concerned with enhancing the country’s economic growth. Promoting foreign investment is one of the strategies that the government has adopted. A number of measures such as the abolition of taxes and trade restrictions have been implemented in an effort to foster foreign investment. The government has designed the country’s economy based on free enterprise and thus no limitations on imports and exports of goods and services. This aspect means that Saudi Arabia has a favourable business environment for foreign firms (Al Swailem Consulting Group n.d.). Wage rate For a considerable duration, the Saudi Arabian government had not imposed any minimum wage for employees. However, in an effort to deal with unemployment, the government recently instituted SAR 3,000 as the minimum wage (Al Swailem Consulting Group n.d). Exchange rate The Saudi Arabian Riyal is relatively stable to most major currencies such as the Australian dollar. The current exchange rate of the Riyal to the Australian dollar is AUD $ 1 to 3.7 Saudi Riyal. This rate of exchange will make it possible for the firm to venture into the Saudi Arabian market more cost effectively for the firm will require a few AUD dollars to enter the market. Competitor analysis In its operations, Suncoast Gold Macadamias will face intense competition from other confectionary companies operating in Saudi Arabia. Some of these companies include: Al Nukaly International Trading Company: -This firm has been in operation in Saudi Arabia for a number of decades, since its inception in 1932. In its operation, the firm has developed a strong workforce of approximately 100 employees. Bahadi Company: – Since its inception, this firm has established itself effectively in the international market. Currently, the firm has established an effective operational base in Saudi Arabia, the Middle East, and Africa. Anwar Al-Mustafa: – The firm was established in 2000 and has over the past decade managed to penetrate the nuts industry in Saudi Arabia. It has also managed to develop a substantial financial base with its turnover estimated to be US $ 0.5 million. Competitor threats The above-mentioned competitors pose a number of threats to Suncoast Gold Macadamias. One source of threat arises from the fact that these firms have incorporated the concept of product diversification in their operations. Some of the products that these firms deal with include nuts, dried fruits, coffee, spices, chocolate, nuts, bakery, candy, and crackers. Consequently, the firms hav e managed to offer consumers a wide range of products. Ultimately, competitors have managed to develop a substantial level of customer loyalty. Therefore, Suncoast Gold Macadamias will experience a significant challenge in developing a substantial market base. Suncoast Gold Macadamias opportunities Despite the intense competition in Saudi Arabia, Suncoast Gold Macadamias has a considerable competitive edge that will contribute to its success. One source of the firm’s competitiveness relates to its ability to produce high quality macadamia products. The firm has incorporated the concept of quality assurance in an effort to ensure a high level of food security. Considering the increase in the degree of health consciousness amongst the consumers, there is a high probability of Suncoast Gold Macadamia attracting customers. This arises from the fact that its products have high nutritional values. For example, macadamia oil is not in any way associated with the rise in cases of obe sity. Additionally, the high population in Saudi Arabia also presents an opportunity for Suncoast Gold Macadamias to increase its sales revenue by employing aggressive marketing. Modes of market entry Firms seeking to venture the international market should consider making effective strategic decisions on the mode of market entry to adopt (Agarwal Ramaswami 1992). Some of the entry modes that a firm can choose include joint ventures, licensing, wholly-owned enterprises, and exporting. A substantial amount of resources is required for a firm to venture the foreign marketing by employing any of these market entry modes. Changing the selected mode of entry is costly after its commencement because it would lead to loss of money and time (Agarwal Ramaswami 1992). Consequently, it is important for firms intending to venture the international market to select the most effective market entry mode. Sole ownership This market entry mode entails the establishment of a wholly-owned business e nterprise and two main strategies exist for a firm to incorporate in order to own a firm wholly. The first method entails undertaking acquisition of a firm within the respective industry in the host country. Secondly, a firm might decide to undertake foreign direct investment, which entails establishing a business entity from scratch (Chon Yu 2008). Sole ownership comes with a number of advantages. First, the firm acquires total control of the business venture. Undertaking an acquisition will also be beneficial to the firm with regard to infrastructure. The acquired firm may have well developed distribution networks, an effective workforce, and efficient technologies. Therefore, the firm can gain higher economic rewards (Chon Yu 2008). However, the major disadvantage is that undertaking either acquisition or building own business establishment will require the firm to have a substantial investment. Additionally, the firm may incur substantial loss in the event of the host country experiencing incidents of political instability (Chon Yu 2008). Joint ventures This business venture is a form of partnership between a foreign company and a local company. Joint ventures are established with the objective of creating a business entity that is owned jointly by the two partners. However, for a joint venture to be established, the two companies must have mutual interests (Fisher, Hughes, Griffin, Pustay 2006). Joint venture is an effective market entry mode especially if the foreign company is not conversant with the degree of stability within the foreign business environment. Therefore, using joint venture as a mode of entry minimises the probability of failing by avoiding risk. However, the downside of joint venture is associated with business control. Joint ventures vary from one country to another especially with regard to structure. The foreign company may be required to hold the minority (49 per cent) of ownership while the domestic company holds the majority ownership (51 per cent). This element is a limitation to the foreign company for it might not be possible to make high profits compared to if it held the majority ownership (Chon Yu 2008). Considering the fact that Suncoast Gold Macadamias intends to maximise its profitability, adoption of joint venture is not an effective strategic decision because its profitability potential will decrease substantially. Additionally, there is also a likelihood of the firm having trouble with regard to coordination. According to Agarwal and Ramaswami (1992), lack of coordination between joint venture partners emanates from divergence in their source of motivation. Consequently, it is important for parties of a joint venture to evaluate the degree of fit between their business enterprises before commencing on joint venture negotiations. Exporting (Best recommended method of market entry for Suncoast Gold Macadamias) This mode of entry entails producing goods or services in one country and marketing them in another. According to Andexter (2008), exporting is one of the most effective ways that firms can adopt in their internationalisation strategy. A firm may adopt different modes of exporting. Firstly, a firm may decide to undertake indirect exporting. This strategy entails selling a firm’s product in the foreign market without undertaking special marketing activities, which means that the firm does not engage in international marketing (Ireland, Hoskisson, Hitt 2008). Secondly, a firm might decide to undertake cooperative exporting. This strategy entails entering into a contract with other firms in the industry with regard to certain export activities for example promotion, distribution, and market research. The firm may enter in a contractual agreement with Export Trading Companies (ETCs) or the Export Management Companies (EMCs) within the foreign market (Andexter 2008). This exporting strategy provides the firm with an opportunity to gain a relatively higher contr ol of its international sales despite the lack of sufficient capital to establish its own export sales firm (Tielmann 2009). Alternatively, the firm may decide to undertake direct exporting by establishing its export network within the host country. In a bid to ensure success, it is paramount for the firm to focus more on establishing an exporting network that will enhance its long-term survival in the host country. In an effort to venture into the Saudi Arabian macadamia industry, Suncoast Gold Macadamias should consider adopting exporting as its mode of market entry. Through exporting, Suncoast Gold Macadamias will access customers relatively easy. Exporting will also provide an opportunity for the firm to maintain total control of its operations within the foreign market. Suncoast Gold Macadamias Limited will also benefit the firm by gaining sufficient knowledge and experience regarding the foreign market. Therefore, it will be possible for the firm to implement effective expansi on strategy in the future. Despite its advantages, exporting has a number of disadvantages. Exporting to some countries may result in high cost for the exporting firm. This cost may emanate from prevailing export barriers such as quotas and tariffs. Fortunately, by venturing into Saudi Arabia through exporting, Suncoast Gold Macadamias will not incur such trade barriers because Saudi Arabia has eliminated all trade barriers (taxes) with regard to exports. Recommendations Suncoast Gold Macadamias should consider a number of issues to ensure success in venturing the Saudi Arabian market as outlined below. The firm should undertake a comprehensive market research. The market research should focus on both the consumer and the competitor. Consumer market research will play an important role in understanding the consumers’ product demands. Consequently, the firm will develop and introduce macadamia products that are in line with the prevailing market demands. On the other hand, com petitor market research will enhance the firm’s effectiveness in formulating its competitive strategies. For Suncoast Gold Macadamias to be successful in its initial market entry to Saudi Arabia through exporting, its management team should ensure that it contracts well-established Export Management Companies. This element will play an important role in its effort to gain market ground. Upon gaining successful market entry in Saudi Arabia through exporting, it is paramount for the firm to consider reviewing its mode of operation in the host country. Suncoast Gold Macadamias should consider undertaking foreign direct investment based on the market knowledge gained to increase its economic benefits. This aspect will significantly result in the firm operating more cost effectively. Reference List Agarwal, S. Ramaswami, S. 1992, ‘Choice of foreign market entry mode: Impact of ownership, location, and internalisation factors’, Journal of International Business Studie s, vol. 1, pp. 1-27. Al Swailem Consulting Group: Doing business in the Kingdom. Web. Andexter, T., 2008. Analysis and evaluation of market entry modes into the Asia-Pacific region, Grin, London. Chon, K. Yu, L. 2008. The international hospitality business: Management and operations, Routledge, New York. Fisher, G., Hughes, R., Griffin, R. Pustay, M., 2006. International business: managing in the Asia Pacific, Pearson Education Australia, New South Wales. Index Mundi: Saudi Arabia economy profile ,  2012. Web. Ireland, R., Hoskisson, R. Hitt, M., 2008. Understanding business strategy: concepts and cases, South-Western Cengage Learning, Mason. Klug, M., 2006. Market entry strategies in Eastern Europe in the context of the European Union: An empirical research into German firms entering the Polish market, Univ-Verl, Wiesbaden. Pilcher, R., 2012. Going for gold in a nutshell. Web. Suncoast Gold Macadamias: Australian packaging covenant action plan 2010. Web. The Australian Busines s Journal 2011, ‘Suncoast Gold Macadamias’, via George Media Network Database. Tielmann, V., 2009. Market entry strategies: International marketing management, Grin, London. This essay on Suncoast Gold Macadamias (Aust) Limited: Market entry was written and submitted by user Kason Holland to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.

Tomatoes in Californias Economy

Tomatoes in Californias Economy Introduction United States is a leading producer of tomatoes worldwide. In fact the United States is only second to China in terms of global production. Both processed and fresh tomatoes industries in the United States account for more than two billion dollars in earnings. Florida and California are the two leading states in tomato production.Advertising We will write a custom essay sample on Tomatoes in California’s Economy specifically for you for only $16.05 $11/page Learn More The California tomato industry is the bigger of the two. The California tomato industry was at an all time high in the 1980s and the 1990s. After that, the industry started facing a myriad of problems that eventually resulted in its decline. This paper explores the Californian tomato industry and its fundamentals. The paper also focuses on both the positive and negative aspects of the industry. The Fresh Tomato Industry California’s fresh tomato industry accounts for more than a third of the United States’ total production. The commercial acreage of the fresh tomato industry in California is approximately thirty-five thousand acres. Fresh production of tomatoes was at its peak around the 1980s. At that time the commercial acreage stood at around forty thousand acres. Tomatoes are grown in California all year round except during the winter season. California’s fresh tomato industry has had a national market share of twenty five to thirty seven percent since 1980. Tomato supplies from California peak after the spring season. Commercially, California’s fresh tomato market profitability dips from August to September when other markets have locally produced tomatoes. The demand for California’s tomatoes peaks during the colder months. During this time the United States has to rely on supplementary tomatoes from Mexico. Tomatoes from the California region are mostly supplied to supermarkets around the United States. Around seventy percent of this market is in other states. In addition, most fresh tomatoes from California are purchased by domestic consumers. Tomatoes purchased for industrial purposes account for approximately thirty percent of the total production. Prices of fresh tomatoes around California are considerably low compared to those in other states. Average tomato prices factor in the cost of wages, farm inputs, advertising, and land. Over the last two decades, prices of tomatoes in California have stagnated as a result of increased imports and green house production.Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More California’s Tomato Processing Economics Tomato farming is subsequently associated with processed products such as tomato sauce and tomato paste. California leads in production of processed tomato products. Its global market share stands at around thirty percent. The ot her large producers of these products include Spain and China. Just like the fresh tomatoes industry, the processing industry flourished around the 1980s and 1990s. This boom was mostly occasioned by high prices, expanded acreage, and higher yielding tomato varieties. Oversupply was the main factor responsible for the decline of this industry. In 2000 economic observers had predicted that the tomato market industry would experience a decline in the subsequent years. One of the leading tomato processors by the name of Tri Valley Growers Limited filed for bankruptcy in that same year. This resulted in a crisis for the many farmers who were suppliers of this company. The tomato processing industry was predicted to decline based on various factors. One of these was the over-supply that had resulted from the ever increasing acreage. In the San Joaquin Valley for instance, tomatoes were virtually the only crop under production. The other factor was the declining domestic consumption that had resulted from increased imports. There was also a case of increased processing capacity. This meant that no produce was wasted irrespective of the level of supply. Eventually this supply overcame demand resulting in an over-supply of processed tomato products. The other reason for this grim prediction was the fact that other markets were seeking to reprise the success of the Californian industry. In turn, the tomato industry in California was facing stiff competition internationally. The Californian tomato industry was originally meant to substitute the cotton industry. By then the cotton industry was seemingly on the decline. In addition, processed tomatoes had substantially higher returns. This enterprise soon flourished with farmers in California proceeding to develop their own processing plants. In the years between 1980 and 2000, tomato growing and processing was a very viable economic venture. This was until the predicted downturn began taking effect around the year 2000. In the last ten years, statistics show that there has not been any tangible growth in this industry. Even in terms of production volumes, the figures still point towards a decline. The global market share previously held by Californian products is slowly being absorbed by Western European countries and China.Advertising We will write a custom essay sample on Tomatoes in California’s Economy specifically for you for only $16.05 $11/page Learn More It is approximated that tomato growing acreage has been declining by an average of three percentage points per year. Volumes of production have also declined considerably. County wise, San Joaquin County leads in production with volumes of forty tons per acre in the last ten years. Fresno and Yolo counties are close contenders with a ten-year average of thirty eight and thirty six tons per acre respectively. The reasons for this stagnated processing industry were covered earlier. To cope with this decline bo th private and farmer-owned industries have built larger and more efficient plants. This move has reduced processing costs and ensured production of a higher quality tomato paste. Since 2000 most factories have focused on building their processing capacity. Processing plants are mostly built to support a specific acreage. It is for this reason that some experts have argued that the reason for the decreasing acreage is because no new processing plants have been built to support new acreage. It is therefore assumed that additional processing plants would stimulate an increase in acreage. Currently the processing capacity of the industry in California stands at around eleven million tons per season. The domestic tomato processing industry is on its part showing signs of improvement from the decline occasioned in the last decade. Currently, the household per capita consumption of tomato products is approximately seventy five pounds. This is a very high rate when it is compared to other developed countries. There are no readily available statistics of consumption rates of other processed tomato products. Therefore, there is no way of finding out the consumption rates of individual products like pastes, sauces, catsup, juices, among others. Tomato production in California is mostly forward contracted. There is a bargaining association that represents a majority of the farmers in California. This association is known as CTGA- California Tomato Growers Association and it negotiates independently with processors. For this reason, most farmers in California receive approximately the same prices for their tomatoes. Consequently, the price of tomatoes in California has remained constant over the last decade. This is different from other vegetables that have been characterized by fluctuating prices. This trend is mostly as a result of contracting. It also serves as an indicator of the fact that contracting stabilizes prices over a long period of time.Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More United States is both an exporter and an importer of processed tomato products. Statistics of this intra-industry trade show that the United State’s net exports have risen in the last few years. In the 2010- 2011 season, exports of processed tomato products were slightly less than one ton. These figures indicate that only about ten percent of tomatoes grown in the United States end up being exported. The two main export destinations of processed tomato products are Mexico and Canada. These two countries combined purchase about sixty percent of the total United States exports. Japan has also been another export destination. However, this market has recently been facing stiff competition from China. Despite the tough competition in the global front, California’s tomato industry has remained a formidable force. Observers had predicted that China would displace California in the global market. However, over the last decade California’s global market share has remain ed constant. Economically, China has performed better by managing to double its processing capacity over the same period. In addition, China’s acreage has managed to increase by around thirty percent. The main reason for this turn of events is the fact that California has been able to maintain its domestic market share. This share accounts for about ninety percent of California’s total production. Industry experts are still wary of China’s rise. Most predictors are afraid that China may flood the global market with tomato paste in the near future. Conclusion This paper has explored the basic economic aspects of tomato growing and processing in California. It can therefore be concluded that this industry is mainly dependent on domestic consumption. This means global market shocks have not affected the industry in a major way. China still remains the biggest competitor to California’s products on the global front. In addition, the secret of the industryâ₠¬â„¢s growth is an increase in export capacity.

Project Management - Project Breakdown, Risks and Staffing Assignment

Project Management - Project Breakdown, Risks and Staffing - Assignment Example This paper highlights the possible risks in the organization and how they can be analysed and managed. The organization faces a challenge of the inability to influence wider and diverse market margins. The company is striving to widen its customer diversity and population. This is hindered with the various risks the company faces such as stiff competition from similar companies and lack of sufficient stuffing. The company lacks enough employees hence the production of the company is not to its maximum. There is also poor human resource management. The organization finds it difficult and expensive to train the recruited employees. It is hard for the organisation to replace the experienced personnel who leave with new recruits who take time before conforming to the organisation’s operations and strategies. The organisation faces constant shifting of the employees and this gives it a disadvantage compared to the competitors. Another risk that the organization faces is lack of sufficient resources and funds to hire more employees. More employees will enable the organisation to hav e broader market margins as there level of production will be increased. This problems affect all departments of the organisation hence put the whole organization at risk. The organisation has not fully implemented technology in its daily routine and operations. The computer services and the internet facilities are not fully utilized by the employees of the organization. This particularly affects the HR, marketing and finance department. If this problems are not adhered to the company faces a threat of falling out of competition and closing down in the long run. Failing to diversify and widen it market margin gives the competitors an advantage. This also hinders the organisation from attracting more customers hence limiting the amount of profit the company

Business and Professional Communication Essay Example | Topics and Well Written Essays - 750 words

Business and Professional Communication - Essay Example Unlike boys, girls master how to negotiate in a manner that balances their personal needs with those of their peers from childhood. The lessons that people learn during their childhood usually infiltrate into the workplace (Tannen 140). Women tend to use collective pronouns such us â€Å"we† in scenarios where men us â€Å"I†, which makes men most likely to get credit in the workplace for their work. As such, linguistic approach, including pronoun selection determines who gets acknowledged (Tannen 140). Men emerge very insightful of power dynamics when communicating, always attempting to be the ones who control the communication process. On the other hand, women are more accustomed to respond sturdily to relationship dynamic. They often focus on saving other people’s faces (141). One’s mode of speaking reflects who they are and who they aspire to be (Tannen 141). The verbal behavior of an individual determines his or her confidence level. Studies indicate that females are prone to downplaying their certainties whereas men have highest probability to diminish their doubt (Tannen 142). Gender interplays with cultural and individual characteristics in determining one’s propensity to ask questions. Men are less likely to ask questions compared to women because they always want to be one-up (Tannen 142). Societal culture makes conversation a ritual by dictating how individuals speak. The likelihood of a person to get hired depends on the level of his or her ritual o pposition (144). Besides actual authority, which comes from one’s organizational rank, actual authority relies on one’s ability to negotiate effectively. The negotiation skills and power determines the effectiveness of a manager (Tannen 145). Tannen emphasizes that â€Å"people in powerful positions are likely to reward linguistic styles similar to their own† (146). An effective manager needs to be familiar with all communication dynamics in order to

Rural Marketing Charecters Challenges And Strategies Marketing Essay

Rural Marketing Charecters Challenges And Strategies Marketing Essay Rural markets have acquired significance in India as the overall growth of the economy has resulted in substantial increase in the purchasing power of rural communities. As urban markets are getting saturated and competitive, companies focus themselves in capturing the vast rural market. Go Rural is the slogan of marketing gurus after analyzing the socio-economic changes in villages. Rural markets accounts for 54% of FMCG and 60% of durable goods. Rural consumption is getting high as the technology is advancing everywhere and also buying pattern and demand of the rural consumers have changed from basic low-priced product to luxurious ones due to their increased income. Dynamics of rural markets differs from other market types and similarly its strategies also differ from the marketing strategies aimed at the urban consumers. A firm seeking the share of this rural market has to work for it as the market includes variety of problems such as physical distance, communication risks due to illiteracy, differed tastes and attitudes of rural consumers, risks in setting suitable pricing and distribution strategy etc. considering the environment in which the rural market operates and other related problems, it is possible to evolve effective strategies for rural marketing. Thus future is very promising for those who can understand the dynamics of rural markets. Character of rural market: 1. The households belonging to the middle-income and above categories that constitute the bulk of the consuming class had been increasingly steadily over the years. 2. The rural income is seasonal in nature and to a great extent influenced by non-controllable factors such as draughts and floods, crop failures due to pests, and similar factors 3. The rural market in India is vast and scattered and offers various opportunities in comparison to the urban sector. It covers the maximum population and regions and thereby the maximum number of consumers. 4. The steps taken by the government of India to initiate proper irrigation, infrastructural developments, prevention of floods, grants for fertilizers, and various schemes to cut down the poverty line have improved the conditions of rural masses resulting in increased rural consumption. 5. During the last decade the rural consumers were in need for low end products which would meet their basic demands and necessities. But of lately due to change in technology and rather advancement in technology, the demand for people have also changed and the buying pattern which initially comprised of basic products have now shifted to luxurious products. 6. Media reach is a strong reason for the penetration of goods like cosmetics, mobile phones, etc., which are only used by the urban people. Increasing awareness and knowledge on different products and brands accelerate the demand. 7. Sales will be higher in rural areas during harvesting periods as the income will be higher during that period. Characteristics of rural consumers People in rural areas have poor job opportunities than urban. The rural consumer is very conscious about getting value for money. He understands symbols and colors better, and looks for endorsement by local leaders or icons. He doesnt like to pay extra for frills he cannot use. He has a very high involvement in any product purchased especially when he decides to buy high-end products, which cost a few hundreds or thousands of rupees. The rural market of India is a geographically scattered market. Rural consumers continue to be marked by low purchasing power. The rural consumers are marked by a conservative and tradition-bound lifestyle. Rural consumers buy small packs, as they are perceived as value for money. There is brand stickiness, where a consumer buys a brand out of habit and not really by choice. The rural consumers of India are a tradition bound community; religion, culture and even superstition strongly influence their consumption habits. Challenges There are several difficulties confronting the effort to fully explore rural markets. The concept of rural markets in India is still in evolving shape, and the sector poses a variety of challenges. Unlike urban markets, rural markets are difficult to predict and possess special characteristics 1. Difficulty in Payment- collection: The majority of rural population is still unbanked. Non cash collections are not possible and even cash collections are also difficult as technical advancements in banking sector has not yet reached in rural areas. 2. Understanding the Rural Consumer: Unlike urban consumers, rural consumers taste and preferences are difficult to understand as their choices were influenced by many factors. 3. Poor Infrastructure: Lack of buildings, electricity, water supply etc affects the basic business functions. 4. Physical Distribution: Poor road connectivity is often a big challenge for the rural marketers to transport their products or services to the rural consumers. Only 40% of the villages in India have proper road connections. 5. Shortage of retail outlets: Non-availability of adequate retail outlets is a major problems faced by the marketers. 6. Illiteracy: Rural folks do not understand clever, gimmicky, quick (fast-paced), suggestive and hi-tech ad films. And also it is very difficult to make the rural consumers to understand the promotion campaigns and its theme and also the usage of a product. 7. Inadequate storage facilities and warehousing leads to inadequate stocking of products. 8. Highly credit driven market and low investment capacity of retailers. A rural consumer generally poses the habit purchasing goods for credit due to their low income. But financially unsound retailers cant give credit. 9. Dispersed or scattered rural population: it is very expensive to conduct market promotion campaigns and to meet other expenditures over scattered market. 10. Large number of intermediaries leading to higher costs. Due to physical distance, a producer needs the help of so many intermediaries in selling his product to the rural consumers. High intermediation increases price. Strategies Marketers need to understand the psyche of the rural consumers and then act accordingly. Rural marketing involves more intensive personal selling efforts compared to urban marketing. Firms should refrain from designing goods for the urban markets and subsequently pushing them in the rural areas. To effectively tap the rural market, a brand must associate it with the same things the rural folks do. This can be done by utilizing the various rural folk media to reach them in their own language and in large numbers so that the brand can be associated with the myriad rituals, celebrations, festivals, melas, and other activities where they assemble. Considering the environment in which the rural market operates and other related problems, it is possible to evolve effective strategies for rural marketing. The strategies discussed here though not universally applicable depend upon product characteristics, the targeted segment of the rural market, the choice of the rural area and its economic condition. A. Product strategies Meaningful product strategies for rural market and rural consumers are discussed here. 1. Small unit and low priced packing: Larger pack sizes are out of reach for rural consumers because of their higher price and usage habits. This method has been tested by other products like shampoos, biscuits, pickles, Vicks five gram tins, etc. the objective of giving smallpackagings is to keep the price low so that the entire rural community can try. This may not be possible in all types of products except some products such as shampoo, soaps and other cosmetics etc. 2. Designing new innovative and attractive products: A close observation of rural household items indicates the importance of redesigning or modifying the products. The manufacturing and marketing men can think in terms of new product designs specially meant for rural areas keeping their lifestyles in view. The new products should be designed in such a way that it should suit the lifestyle, needs and anxiety of the rural consumer. 3. Designing strong and sturdy products: Sturdiness of a product either in terms of weight or appearance is an important fact for rural consumers. Generally a rural consumer handles every product roughly. Thus the product meant for rural areas should be sturdy enough to stand rough handling and storage. People in rural areas like bright flashy colors such as red, blue, green etc., and feel that products with such colors are sturdy but they are more concerned with the utility of the item also. 4. Creating a good brand name The rural consumers are more concerned with the brand name of the product than its utility. The brand name awareness in the rural areas is fairly high. A brand name and logo are very essential for rural consumers for it can be easily remembered and identified. Because rural consumers often used to stick towards a particular product by considering its brand name. B. Pricing strategies Pricing strategies are very much linked to product strategies. Some of these strategies are mentioned here. 1. Low cost/cheap products: This is a common strategy being adopted widely by many manufacturing and marketing men. Rural consumers wont like to have high-priced commodities due to their low income. So Price can be kept low by small unit packing resulting in higher sales. 2. Avoid sophisticated packing: Simple package can be adopted which can bring down the cost as it is presently being done in the case of biscuits. Some innovation in packing technology is very necessary for rural markets. Sophisticated packing can be avoided as it bears extra cost which may losses the number of consumers due to high price. 3. Refill packs/reusable packaging: The packaging material used should preferably lend itself for reuse in rural areas. An ideal example in this direction can be the packing of fertilizers. Now companies have started packing fertilizers in LDPE or HDPE sacks, which are not only tamper proof but also reusable. But it would be applicable only in case certain products. 4. Application of value engineering: This is a technique which can be tried to evolve cheaper products by substituting the costly raw material with the cheaper one, without sacrificing the quality or functional efficiency of the product, for example in food industry, Soya protein is being used instead of milk protein. Milk protein is expensive while Soya protein is cheaper but the nutrition value is same. This technique yields itself for application in many engineering or product designed areas so that the price can be kept at an affordable level. These areas have to be explored by manufacturing and marketing the pricing strategy for rural market will depend upon the scope for reducing the price of the product to suit the rural incomes and at the same time not compromising with the utility and sturdiness of the product. 5. provision of free frills or products along with the selling product will make an impression among the rural buyers that the price they are paying for the product is not high, as they are getting extra free products or services. c. Distribution strategies Rural India is widely populated and so it is obvious that the distribution costs are high. Here, one needs to deploy innovative approaches in order to bring down the costs. Most manufacturers and marketing men do have a distribution arrangement for village with a population of at least 5000 people. While it is essential to formulate specific strategies for distribution in rural areas, the characteristics of the product, its shelf life and other factors have to be kept in mind. The distribution strategies that are specifically designed for rural areas are through co-operative societies, public distribution system, multi-purpose distribution centers, etc.some other distribution strategies that can be adopted in rural marketing were: 1. Using Delivery vans to deliver products to nook and corner of villages. 2. Localized way of distributions such as melas, street outlets etc: To succeed in Indian rural market the producers or marketers have to reach the nook and the corner of the country. They have to reach the local Paan wala, Local Baniya only then they can succeed. MNC shoe giants, Adidas, Reebok, and Nike started with exclusive stores but soon they realized that they do not enjoy much Brand Equity in India, and to capture the market share in India they later preferred Local market shoe sellers. 3. Conduction of special sales programmes through temporary street stalls or showrooms in rural areas: This is one of the strategies widely adopted by automobile marketers. This strategy is suitable for high end products. 4. Direct distributions by opening outlets in villages avoiding intermediaries that will also reduce price 5. By offering certain discounts, the local rural distributors can be made to brainwash the consumers about the new product as rural consumers believes the word of the familiar person in purchasing a product. Thus risk involved in sales and distribution of the new product can be somewhat reduced. D. Promotion strategies Mass media is a powerful medium of communication. It could be television, cinema, print media, and radio and so on. The other means of mass media available are hoardings/wall paintings, shanties/hats/melas, non-price competition, special campaigns etc. Besides these, other mass media like hand bills and booklets, posters, stickers, banners of the schemes etc. Following are some of the promotion strategies that can be applied in order to promote a new product in the rural market: 1: advertising with local ambassadors is a right choice and also advertisements can be made colorfully as rural people like that. 2: providing the new product as a free product along with some other products that were already going in the market. So that, the consumers will be aware of the new product. 3: making a tie up with the ongoing market retailers in order to enhance proper distribution and to expand the business in the initial promotion stage. After gaining some goodwill and market, the producer can either continue with the ongoing retail distribution or it can open its own retail shops. 4: In the promotional stage, the goods and services can be given at low prices that would attract the rural consumers as they often prefer low-priced commodities with higher utility. In addition to all these strategies, there are some other strategies that a marketer should follow or implement in order to promote and succeed in rural market. They are as follows; BY TARGET CHANGING PERCEPTION If one go to villages they will see that villagers using Toothpaste, even when They can use Neem or Babool sticks or Gudakhu, villagers are using soaps like Nirma rose, Breeze, Cinthol etc. even when they can use locally manufactured very low priced soaps. Villagers are constantly looking forward for new branded products. What can one infer from these incidents, is the paradigm changing and customer no longer price sensitive. Indian customer was never price sensitive, but they want value for money. They are ready to pay premium for the product if the product is offering some extra utility for the premium. Thus a marketer has to design his marketing trend according to the changing perception of the rural consumers. BY PROVIDING WHAT CUSTOMER WANT The customers want value for money. They do not see any value in frills associated with the products. They aim for the basic functionality. However, if the sellers provide frills free of cost they are happy with that. They are happy with such a high technology that can fulfill their need. Motorola has launched, seven models of Cellular Phones of high technology but none of the rural consumers preferred it as they dont even know or wants or cannot use such advanced technologies in that models. On the other hand, Nokia has launched a simple product 1100, which has captured the wide rural market. BY DEVELOPING RURAL-SPECIFIC PRODUCTS Many companies are developing rural-specic products. Keeping into consideration the requirements and necessities of the rural consumers, products can be ultimately designed which aptly suits the rural necessities.for example; some bike manufacturers are designing their product very toughly which will suit the poor road facilities of rural India. (Hero Honda splendor) PAINTINGS A picture is worth thousand words. The message is simple and clean. Rural people like the sight of bright colours. COKE, PEPSI and TATA traders advertise their products through paintings.thus advertising through paintings can be made. Conclusion: Indian rural marketing has always been complex to forecast and consist of special uniqueness. However many companies were successful in entering the rural markets. They proved that with proper understanding of the market and innovative marketing ideas, it is possible to bag the rural markets. It is very difficult for the companies to overlook the opportunities they could from rural markets. As two-thirds of the Indian population live in rural areas, the market is vast than expected. For the companies to be successful in rural markets, they have to overcome certain challenges such as pricing and distribution. Thus by following the above stated innovative strategies, companies can capture markets and withhold in rural areas. AUTHOR: Pradeep kumar.B, SIIMS, Pollachi. EMAIL ID:[emailprotected] PHONE NUMBER: 9787077523

Personal Experience Essay -- Learning Education Teacher Essays

Personal Experience I have had the great opportunity to be apart of a great program and class at college. Most of us who are going to become teachers know about this class and the required 80 hours of volunteering at a middle school for a semester. I was eager to volunteer, because I have experience in working with middle school kids. The school I work for, has prepared me to handle school aged kids, so I was relying on my background to carry me though the semester at a new Middle school. The privileges of a private school are a lot different from an inner city school. When I began to volunteer at Baker I was shocked to discover that the students were not allowed to take books home to finish their school work. When it came time to read a book the teacher would distribute the books to the students, but then recollect them afterwards. At Denver Academy, the teachers purchase and distribute the books to the class and the students get to keep the books forever. I was about to find out how hard it is for these students to be motivated to attend school everyday when these kids are lacking a stable environment. I was leaving my comfort zone to enter an entirely different type of school environment. The first day of my volunteering at Baker middle school was filled with apprehension, because I was entering an entirely new situation and leaving the safety of Denver Academy behind. As I walked into the classroom, it was as if there were a hundred eyes staring in my direction. As quickly as the stares came, they went away as if I was not even there anymore. I could only imagine what kind of thoughts and questions were going through their heads. I’m sure the first question would be why... ... lot they can learn from the students a Baker, because even though some of the students don’t care about education. There are some students who do, and they are given the tools they need to make it through. The students at Baker are just happy to have someone show an interest in what they are doing. I saw it in their eyes when I gave them praise on something they did during the time I was there. That praise can carry a student along way which to me is rewarding in it self. I can only hope that the time I spent with these students can encourage at least a few to continue on the academic path and make a name for them selves later in life. These kids deserve every opportunity we can give them and I am proud to be a piece of the big picture. We can only guess how hard it is for these students, so let’s make sure we give them a safe and helping hand along the way.

Inclusion Equal Opportunities And Diversity Education Essay Essay

In 21st century classrooms, there are more and more children coming from much more diverse backgrounds. Teachers need to teach these children with effective teaching methods and must therefore have pedagogical approaches that deepen their cultural understanding. Many of these children have a range of ability in language, abilities and culture. Centre for Studies on Inclusive Education (CSIE) stated that teachers must employ not only theoretically sounds but also culturally responsive pedagogy. Teachers must create a classroom culture where all children, regardless of their cultural or linguistic backgrounds are welcomed and supported and provided with the best learning opportunity. What is inclusion? Inclusive education is concerning equality and human rights. Inclusion is more than an understanding and a policy requirement. It is on the subject of respect and values which welcomes diversity in the classroom and a wider part of society. The inclusion statement n the National Curriculum (DfEE/QCA 1999) stated that differentiation from a wide variety of needs and the planning of lessons to ensure access and participation was part of normal teaching. This point was further emphasised by Overall & Sangster (2007) saying that it is about meeting the different needs of as many children as possible in mainstream schooling. What are equal opportunities? Equal opportunities are about being inclusive and fair in the way you deal with all children. Treating all children the same is not enough. Overall & Sangster (2007) define fair to be when the teacher meets the needs of every child as far as they can. What is diversity? Diversity is something that is becoming more and more popular in the classroom. In simple terms, diversity just means that are is a variety of different types of children in the classroom. Not only is it a professional standard to develop an understanding of the cultural diversity in their class but it is also a legal requirement (Children Act, 1989, 2004), but are these legal requirements being met? Are these evident in schools? Figures from the Department for Children, Schools and Families show that last year saw the biggest year-on-year increase in pupils from ethnic minorities. Across the country, they accounted for almost 22% in 2007 compared to 20. 6% in 2006. From these figures it is clear to see that inclusion, equal opportunities and diversity are part of the ‘norm’ classroom and need to be therefore addressed appropriately. I will now discuss what it means for a school to be inclusive and if a school is ‘effective’ does it mean that it has to be inclusive as well? I will also look at barriers to learning and how they are overcome. School Inclusion It is important for schools to be inclusive. Hayes (2004) believes that inclusion is best understood as an aim, aspiration or even a philosophy, rather than as a set of techniques that can be applied to a situation. It is important for a school to aim to be inclusive to everyone in the school, whether this is towards children, teachers or other members of staff. Inclusion tends to be regarded as ‘the right thing to do’ and it is this moral imperative than often makes teachers feel guilty about saying anything negative about inclusive policies and practices. It is important to remember that a positive attitude to inclusion has an impact on the process of developing inclusive teaching strategies (Halliwell, 2003). As a trainee teacher, it is important for me to understand that inclusion is a process that is influenced by a number of different factors and has a different meaning for everyone involved. From experience, I have seen inclusion being carried out. This occurred during assembly when the whole school came together for their Friday ‘celebration assembly’. During this assembly, birthdays were announced and the children came to the front. All teachers and children joined in with singing happy birthday while as the same time signing it. This was a lovely experience to observe. The school as a whole were including everyone. Although there are many different indicators of inclusion to reflect on such as policies, practises and experiences of individuals learning, it is also my aim to carry these out. Such policies include Inclusive Schooling (DfES 2001b). This document provides practical advice to schools and LEA’s on the inclusion framework and sets out seven principles of an inclusive education service. The Every Child Matters Policy (DfES 2003, 2004a, 2004b) has according to Arthur, Grainger and Wray (2006) ‘served to set educational inclusion within the broader context of radical change in the whole system of children’s services including explicitly shifting from intervention to prevention with services working together more effectively’. The overall aim of Every Child Matters is to reduce the number of children who experience educational failure, engage in offending or antisocial behaviour, suffer from ill health or become teenage parents (DfES 2003). The Every Child Matters aims are said to be at the heart of Children Act 2004 (Arthur, Grainger and Wray 2006). Finally, according to Overall and Sangster (2007) the idea of an inclusive school is one that will meet the needs of many pupils in a variety of ways; within special classes, through support for individuals, differentiation in the curriculum and carefully thought through teaching, is an exciting idea. This is something that I should really develop as part of my philosophy of inclusive education. Barriers Inclusion is about looking for ways of reducing the barriers to learning that may exist for children who present more challenging circumstances. Prejudice and stereotyping are often significant in creating and maintaining these barriers (Overall and Sangster 2007). Within The National Curriculum (DfEE/QCA 1999) three principles were set out to develop a more inclusive education. Within these principles, the third is to ‘overcome potential barriers to learning and assessment for individuals and group of pupils’. These groups of pupils can range from SEN to EAL to Gifted and Talented. Overcoming barriers is further emphasised in Inclusive Schooling (DfES 2001b) with one of the principles stating ‘schools, local education authorities and others should actively seek to remove barriers to learning and participation’. Overcoming potential barriers to learning and assessment is relevant to all children who have already been identified to have an emotional, mental or physical need. Teachers must plan to meet these needs and also the needs of the rest of the class at the same time. One method of doing this is to pair a pupil with EAL with a pupil who is good at English. Peer encouragement is a great way of encouraging talk. I witnessed an example with an emotionally vulnerable child. This particular child was getting frustrated and upset when they couldn’t do their times tables because other pupils around the table were counting aloud and therefore interfering with this pupil’s train of thought. To resolve this problem, the pupil was sent into a quieter room where there was full concentration of the subject. As a trainee teacher, I need to plan my lessons which overcome barriers which I may face in delivering a lesson or scheme of work. Conclusion Schools should all have an inclusion, equal opportunities and diversity policy in place and one that is being actively carried out by all pupils and members of staff. It is important that I am positive about the right for all children to be valued and to receive the best education available for them. This can be helped by implementing and receiving guidance from local education authorities or attending extra training days. From reading I have learnt to develop my own pedagogy with regard to inclusion, equal opportunities and diversity. As a training professional I have a unique opportunity to contribute to developing my own personal practice and help with developing policies with other colleagues. My aim now is to need all the needs of the children who I will be teaching both on placement now and in the future with my own class of children.