Corporate Responsibility and Marketing Strategies - 1650 Words

Corporate Responsibility and Marketing Strategies (Other (Not Listed) Sample) Content: Corporate Responsibility And Marketing StrategiesYourFirstName YourLastNameUniversity title Current Position and Reputation Apple CorporationName:Course:Institution:Date:IntroductionApple Corporation was established in 1977 and later was registered on the NASDAQ Global Select Market Exchange. It is a multinational corporation with its headquarters in Cupertino, California. Apple Corporation manufactures, designs and markets its personal computers, mobile communication devices, and portable digital music players and media devices. Apple Corporation as well sells a number of services, peripherals, related software, networking solutions and third-party applications and digital content. Apple is also placed in the list of Fortune 500 of the most admired organizations in the world by CNN. This position dignifies a strong brand and unique brand that has been identified in a more efficient way. Apple has been capable of indentifying its brand effectively. Apple bran d has been marked as to have strong graphic of bite that have been perceived to be trendier than other brands (Murphy, Ãâ€"berseder Laczniak, 2013). This paper will look into the current reputation and position regarding social and ethical responsibilities, and the strategies that Apple Corporation employs to market its products.Apples current position on its social and ethical responsibilities includes a commitment to reduction of environmental impact, transparency, and safeguarding the well-being and health of its workers. Apple uses it commitment to transparency policy to publish it audit reports regardless of whether they are good or bad. Moreover, Apple was the first technology company to join Fair Labor Association (FLA). Apple Corporation has trained over three hundred and fifty employees to educate other employees on safety handling of chemicals. Apple also performs environmental audits in fourteen countries in which it operates and require that suppliers conform to regula tions on substance specifications 069-0135 and other laws that prohibit the use of toxic chemicals. Apple has made promises that they will distribute anything that is found to the public. However, according to the detailed audit in China, it has been proved that there were violations of human rights. Factories producing Apple products were hiding crucial documentations from auditors and employee were being threatened to answer the questions asked by the auditors right. It was found that suppliers were dumping harmful wastes in restrooms.Apples reputation has been contaminated due to the publication of the social and ethics responsibility violations by its suppliers. It is notable how Apple has rose from a wreckage of being collapsing company in the late 1990s to a remarkable market of over five hundred billion dollars in a period of less than fifteen years. Today, Apple is considered to be one of the most profitable corporations (Clarke Boersma, 2015).Apple has attempted to guarant ee that its employees and those with which they work showcase appropriate behavior under all circumstances. It bases its triumph in light of making inventive, products and services of high quality, and present reliability in each business dealings. According to Apple, four elementary values add to decency: admiration, genuineness, consistence and privacy. Moreover, Apple has came up with a code that governs its employees and every one of its operations, including those based abroad. Additionally, Apple Corporation has availed more specific policies concerning director conflict of interest, corporate governance, and guidelines on reporting questionable conduct. Apple has a business conduct helpline that their employees use to report delinquency to Apples Finance and Audit Committee (Carroll Buchholtz, 2014).Apple has not yet met the ethical and social standards; Apple has made significant steps towards ensuring consistency in oversight on its products quality with little success mai nly because they strive to introduce new products each year. Apples brand hinge on production quality, therefore, mistakes in the production stage can create a major ethical dilemma. For example, when Apple Corporation introduced its iPhone4, consumers complained about poor reception that was caused by antenna interference whenever customers placed a phone in a particular way. Apple has been accused of appearing to minimize the problem instead of solving it completely (Murphy, Ãâ€"berseder Laczniak, 2013).Apple has infringed the user privacy policy. This was disclosed by Google when Google identified some features on Apple phones that gather data on the geographical locations of phones. Apple claimed that users have the choice of turning the information collection on the phone location off but this was proved to be not completely true since some of these features on apple phones continued to gather information on the location of phones despite the users switching them off. Althoug h, both Google and Apple defend their methods of collecting facts, the government officials disagree. According to the government, passing legislations on mobile measures and privacy policies could have weighty effects on electronic organizations such as Apple Inc.The publications of social and ethics violations made by Apples suppliers have increased apples sales. Apple Corporation has to solve its relationship with Foxconn following a series of incidents including employee suicides and suicide attempts. Pegatron, a Chinese Apple contractor, has been accused of a number of solemn violations of human rights of the workers including paying meager wages, using underage labor and requiring excessive working hours. According to investigation by China Labor Watch, Pegatron supplier has significantly increased its business volume from Apple in the past year but it was also found that Pegatron has violated thirty six legal issues and fifty ethical violations. This report also addressed ins tances where suppliers violate environmental policies by producing hazardous wastes that exceeds the standards of emissions thereby harming the local communities. In order to ensure that suppliers adhere to benefits and wage standards, apple can make use of the following methods. Apple can undergo compliance monitoring program especially at the supplier end. This may engross cross checking the intelligence, factory audits, verification measures and corrective action plans to ensure that suppliers comply with the code of conduct. Apple Corporation suppliers have to uphold the human rights of the workers and must create a bias free workplace. Also the suppliers are anticipated to treat their employees with respect and dignity workers and never harm them in any way whatsoever.In addition, Apple can perform supply audits to reveal whether suppliers pay their employees timely and appropriately. Audits could be aimed at ensuring that there are no withheld wages of any employee as a form o f discipline. Apple Corporation can also concentrate on the poor performing areas, as well as call-centers and warehouses with the aim of ensuring environmental conservation and employee safety is complied. Apples customers have to be willing to pay more for Apple products for apple to increase its selling price to enable the suppliers to provide better benefits and wages for their workers. With the products and services that apple provides for its consumers, I do believe that the Apples consumers may be willing to pay more for this services and products. This is because, customers have been willing to pay higher prices for apple products rather than other similar products from other companies. A recent survey indicated that about 50% of Apple consumers would like to purchase Apples new iPad while 75% of them agree that there is no tablet that can compare to the Apples new iPad. Consequently, as long as the customers are satisfied, Apple does not have any obligation to reduce the pr ices of its products.Marketing StrategiesApple Corporation may use marketing strategies to act as the moderator. A...

Oil Spills May Happen For Many Reasons - 1512 Words

Oil Spills may happen for several reasons. 1. When oil tankers have equipment faults. When oil tankers break down, it may get stuck on shallow land. When the tanker is attempted to move out of shallow land, abrasion may cause a hole in the tanker that will lead to large amounts of oil being released into the oceanic bodies. However, although this form of oil spill is the most commonly known and has the highest media attention, only 2% of oil in water bodies is a result of this action. 2. from nature and human activities on land. The large majority of oil spilled is from natural seeps geological seeps from the ocean floor as well as leaks that occur when products using petroleum or various forms of oil are used on land, and the oil is washed off into water bodies. 3. Water Sports. Other causes of oil spills are spills by petroleum users of released oil. This happens when various water sports or water vehicles such as motorboats and jet skis leak fuel. 4. Drilling works carried out in sea. When drilling works carried out in the sea, the oil and petroleum used for such activities are released into the sea, thus causing an oil spill. An oil spill on Philippines’ shore Effects of oil spills Such oil spills are considered forms of pollution. Oil spills also have highly adverse effects on the environment. These oil spills greatly affect animals, which may in turn sometimes lead to animals getting endangered. Animals may be affected because oil spillsShow MoreRelatedEssay on Ethics in the Workplace - Bp Oil Spill1729 Words   |  7 PagesEthics in the Workplace Case Study: BP Oil Spill On April 20, 2010 off the Gulf of Mexico, there was a blowout of the Macondo well which is owned by British Petroleum also known as BP. When the blowout took place it got immediate media attention because aspects of the event were known over the world. 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The resulting explosions at Deepwater Horizon and the oil s pill that occurred after, enraged millions of people around the world.Read MoreThe Keystone Xl Pipeline Project Essay1294 Words   |  6 PagesXL Pipeline Project has many pros and cons just as any project does, but this project has way bigger cons than most projects this country will face today. â€Å"The Keystone XL Pipeline is an environmental crime in progress.† â€Å"It’s also been called the most destructive project on the planet.† The major issues with the Keystone XL Pipeline are â€Å"the dirty tar sands oil, the water waste, indigenous populations, refining tar sands oil and don’t forget the inevitable; pipeline spills.† And these are just someRead MoreThe Keystone Xl Pipeline Is The Endurance Of Todays Society1734 Words   |  7 PagesOil is imperative to the endurance of today’s society and plays a major role in the world’s economy. The Keystone XL Pipeline is a crude oil pipeline that is designed to run from â€Å"Hard isty, Alberta†¦to Steele City, Nebraska,† (About The Project). Citizens of Canada and the United States are debating the development of the pipeline. There are two sides to this issue, to either approve or disapprove the Keystone XL Pipeline, and by researching this topic I will form an opinion. Most of the KeystoneRead MoreThe British Petroleum Oil Spill and Lack of Response Essay examples1453 Words   |  6 PagesThe British Petroleum Oil Spill and Lack of Response Last year, news spread of an oil spill off the Gulf Coast. These events occur periodically and usually register much media attention. As British Petroleum (BP) executives could not shut off the crude oil or prevent the damage it caused, people took notice. Millions of dollars in tourism, commerce and sales were lost. Thousands of wildlife acres and ecosystems were also compromised. There were more questions than answers. 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Yakults Operation Management Process - 4445 Words

Zakir ALI ALAMI Yakult’s Operation Management Process: Research Activities Part A: Background Information Questions 1) What is Yakults corporate philosophy? Ans: Yakult s greatest goal is to bring smiles to faces everywhere. The global corporate philosophy of the Yakult Group is: We contribute to the health and happiness of people around the world through pursuit of excellence in life sciences in general and our research and experience in microorganisms in particular. 2) What type of large-scale is the Yakult parent company? Ans: Yakult Australia Pty Ltd is a subsidiary of the Japanese parent company Yakult Honsho Co. 3) Outline Yakults organisational structure. Ans: Yakults organisation structure is Board of†¦show more content†¦| 2. | Sterilisation The sweet, milky solution is sterilised at a high temperature for a short time, destroying any bacteria that may be present. This process is called UHTST (Ultra Heat Treatment, Short Time). The solution is then transferred to a 6,000-litre fermentation tank via a closed system of pipes and valves. | 3. | Fermentation Tank Live Lactobacillus casei Shirota strain, cultured and tested in our laboratory, is added to the tank. The temperature of the tank is then reduced until the contents are at 37 °C (body temperature). The solution is allowed to ferment in the tank for 6-9 days or until the numbers of Lactobacillus casei bacteria reach their ideal concentration. | 4. | Control Panel This machine is fully computerized and controls the flow of production. Different coloured lights indicate any areas that need attention. | 5. | Flavour Tank Citrus flavour is added to the concentrate. | 6. | Storage Tank The flavoured, concentrate is transferred to a 12,000 litre storage tank, containing a chilled syrup solution. The tank is chilled to around 2 °C. | 7. | Water Steriliser Yakult uses water that is de-mineralised (any dissolved chlorides and fluorides are removed) by a process called reverse osmosis. The water is then UV sterilised, after which it is stored in a 25,000 litre holding tank before being used in the production process. | 8. | Mixing Tank

Antigone Essay free essay sample

Pride is not a symbol for strength, but of arrogance. It does not modify you as a powerful individual, but as a weakling with feign courage. It is not something to be proud of, for it veils you with vanity and ignorance so delicately and innocently that it betrays your conscience into thinking that it is a normal feeling that has no consequence whatsoever. An example of this infamous trap is presented in the play of tragedy Antigone, written by Sophocles himself. A character by the name of Creon was a victim of pride born from his position as ruler of the city of Thebes. It wasn’t long before he wallowed in sorrow, as pride swallowed in whole, smothering his familial views, killing his feel for care, and taking its place beside the ones he loved so. The motive by which Creon committed was a lethal mistake. His law of a deadly penalty crushed his son’s wife’s heart. We will write a custom essay sample on Antigone Essay or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page That wife, Antigone, was determined to break his law to her love’s expense. She was not content with her brother’s improper burial and of his title, the â€Å"Traitor of Thebes†. Although she was aware of his treacherous actions, she was not about to stand back and watch her own blood and flesh rot to the ground, with no recognition or remembrance. I was born to join in love, not hate- that is my nature. † (Line 590) So she was determined to become a â€Å"glorified criminal†, determined to bury her mother’s son. â€Å"I will bury him myself. And even if I die in the act, that death will be a glory. † (Line 86). Creon believed her foolish, disloyal, yet passionate and wild. He ignored her views and spit on her face, as he responded, â€Å"Go down below and love, if love you must-love the dead! While I’m alive, no woman is going to lord it over me. † (Lines 592-594) This proves of Creon’s pride, his blindness at the sight before him. He will not allow Antigone dominate his authority, which is translation for ‘I will disregard my son’s useless wife because she is a woman, a weaker being under me, not because she is part of my family. ’ As the ruler of Thebes, it is understandable that Creon takes his job seriously and sets it on his priority list. However, his worst mistake was that his family came second, if not third. He valued his proud position of head of state, and would not tolerate any disloyal act, hence his law of prohibition of Polynices’s mourn. He does not care if Polynices was, too, part of his family, merely tossed him aside because he wounded Creon’s pride. He did not care when Haemon pleaded him with his eyes and struggled to help his father notice his blunder before it was too late. â€Å"You’ve seen trees by a raging winter torrent, how many sway with the flood and salvage every twig, but not the stubborn-they’re ripped out, roots and all. Bend or break†¦ Oh give away. Relax your anger – change! † (Lines 797-800, 804) However, as ignorant as ever, Creon takes no notice of the large warning sign below his nose. So, men our age, we’re supposed to be lectured, are we? – schooled by a boy his age? †¦This boy, I do believe, is fighting on her side, the woman’s side. † (Lines 813-815, 828-829) He does not realize the severe consequences that are about to follow his mistakes. Because of the death sentence hovering and raining down on Antigone, his wife, his hero, Haemon became intoxicated with sorrow and despair. He threatened another life loss following Antigone’s potential death, a threat dangerously tossed aside. After Antigone was found hung in the bricked imprisonment, Haemon was driven to take his sword to his chest, a tragedy Eurydice, Creon’s wife, could not bear. Three deaths, three losses, three strikes and Creon was out. Too many warnings were blown his way, and was blessed with many opportunities to prevent the calamity that took place. â€Å"Take these things to heart, my son, I warn you†¦ Stubbornness brands you for stupidity – pride is a crime. † (Lines 1131, 1136-1137) Sadly, he let his brick wall made of the finest feign courage get in his way. He let his pride take control of his life decisions. Once he tried to amend his errors, he had fallen low, and it was too late. Pride had given his loved ones to death at its doorstep, and abandoned Creon like an empty shell. Pride must not be let in control in any circumstance. It disguises itself with a foreign innocence that backstabs you once you give it an ounce of trust. Antigone is the perfect example of pride empowering a ruler, who tried to rid of the pest a second too late. Would you be a proud ruler, or the ruler of pride? You decide.

International Marketing Management Essay Example

International Marketing Management Essay Avery Wellness (M) Sdn Bhd is a private company specialise in total skin care and beauty product solutions in Malaysia. The company began its operation in Malaysia since 1990. Follow Me Industries Sdn Bhd is the sole manufacturing facility for all skin care and beauty products to Avery Wellness (M) Sdn Bhd. Avery Wellness business model involved in marketing and distributing skin care and sun care products within Malaysia market. The main distribution centres in Malaysia focus in all pharmacy chains, departmental stores and beauty retailers.The company is envisaged to transform from a local enterprise into a multinational brand company with growth plan to tap into overseas market. The company has a headquarter base in Subang Jaya Industrial Park with total 80 employees. The advantage of Avery Wellness products are HALAL accreditation and this gave the company a strong market presence in Muslim segment. The company with its marketing and branding strategy by leveraging on local Muslim celebrity as ambassador to successful help the brand enters the Muslim market. 2. 2 Vision and MissionAvery Wellness is visioning to capture the South East Asian market and to emerge as a dominant company in providing skin care and sun care solution for all consumers. The mission of Avery Wellness is to provide continuous innovative and reliable product to overcome all man and woman skin problems with a product certified halal accreditation. 2. 3 Sales Revenue Avery Wellness average sales revenue for the past 3 years from 2010 to 2012 mainly contributed from 3 major brands which are Ageless solution, Clear Clean and Sun Safeâ„ ¢ (Table 1).The percentage of contribution is 46%, 20% and 34% respectively. The Sun Safeâ„ ¢ brand has two main sun care products which are Sun Safeâ„ ¢ Face and Sun Safeâ„ ¢ Body. Currently the market share for these two products in sun care category is more than 35% in Malaysia. Table 1: Sale Revenue on Skin Care Brand for Avery Wellness Brand 2010 (RM/Million)2011 (RM/Million)2012 (RM/Million)Averagepercentage Ageless5. 55. 86. 05. 7746% Clear Clean2. 42. 52. 52. 4720% Sun Safeâ„ ¢4. 24. 34. 34. 2734% Total Revenue12. 112. 12. 812. 5100% 2. 4 International Market Entry Objective In view of sales revenue stagnancy from year 2010 to 2012, and increasing of fixed and variable cost yearly such as cost of goods sold, salaries and wages, interest expenses and promotion, thus impacting in net income yearly. In fact, there is significant descent of net profit from 11. 4 % to only 9. 9% in year 2012 (Appendix 1). In order to sustain business growth and achieve imperative profitability, step to enter international market is essential.In particular, sustained economic growth has been experienced in emerging economies, which have become a source of expanding market opportunities and are currently underpinning the global recovery (Zizah Che Senik et al, 2010). Malaysia policy of governance encourages local SME to go International . In the effort to encourage SMEs to go global, SME Corp has introduced the National Mark of Malaysia Brand which is a certification process, audited and monitored by Sirim.Through this initiative, Malaysian Brands are developed not just for the local market, but with the intention that they would be good enough to penetrate international markets (Mohd Rithaudden Makip, 2012) In addition, the SME Master plan (2012-2020) has also outlined a High Impact Programme – Going Export Programme that will focus on addressing challenges faced by SMEs on entering new markets overseas, which include high upfront costs and the lack of detailed knowledge about the markets and local competitors (Charles Fernandez, 2013). 3 Country and Market Entry Analysis 3. 1 Country AnalysisIndonesia, Thailand and Singapore are selected as the potential markets for Avery Wellness’s expansion plan to sell HALAL accreditation sun care products. In order to minimize business failure and find out the b est of the country market, three candidate markets (Indonesia, Thailand and Singapore) which are the most nearest country to Malaysia are chosen to make comparison for the first step of Avery Wellness to success. The selection of oversea markets is a vital issue for a company, this is imperative as the international business environment is turbulent and more uncertain as compared to domestic market.Therefore, fully identify the potential opportunities cab be exploited while minimizing threats and risks (Fariza Hashim et al, 2010). 3. 1. 1 PESTEL Analysis PESTEL analysis will be used to focus the discussion within this analytical framework on the political, economical, social, technological, environmental and legal factors that may influence the business operation for the company (Kotler 1994). A company must be aware of many considerations such as differences in language and customs as well as political and legal when doing business internationally (Farese et al, 2002).Table 2: Comp arison of PESTEL on Indonesia, Thailand and Singapore Analysis FactorCountry IndonesiaThailandSingapore Political Legal(tax)Doing business in Indonesia is complex and time consuming. This is because of negotiation through the regulatory and industrial landscape. Corruption in the country is active at all levels. Skin care Import duties and taxes of 10% are applied in this country. Thailand is an export-dependent country. A total of $ 223 billion worth of goods in 2011 were exported, accounting 69% of its GDP. Corruption and lack of transparency still a major concerns especially in procurement tender.Thailand’s average applied tariff rate is 11%. Highest tariff rates applied to imports competing with locally produced goods. Skin care is 35% of import duties and taxes. Singapore is a free port country. More than 99% of all imports enter Singapore duty-free. It is a liberal trading regime. Singapore is a strong intellectual property protection country with virtually no corrupti on. Singapore levies a 7% Goods and Services Tax (GST), including skin care products. Economic (Gross Domestic Product) Indonesia is the largest population with 240 million in Southeast Asia.GDP growth above 6. 5% in 2011 and projected to remain above 6%. GDP per capita of $3,500. .The total population in Thailand in year 2012 is 67 Million. Thai economy grew only 1% in 2011, as the devastation caused by severe flooding that happened yearly in the country. GDP growth rate only 5. 5% in year 2012 and estimated will be above 7. 5% in year 2013. Total population in in year 2012 is 5 Million Singapore economy expanded by 14. 5% in year 2012, become the second fastest growing economy in the world. GDP is expected sustainable growth of 4% in 2013.Social CulturalRich natural resources country with very strong domestic demand. Bahasa is a common speaking and language used in Indonesia. Indonesian labor cost is relatively low by compare other Southeast Countries. Consumers are extremely pri ce-conscious; prefer lower prices over product quality. Thai and English are the most common spoken language in the country. Labor cost is moderate, where unemployment rate in 2010 only 1% of the labor force. Most citizen and people are highly educated. English is common language for business and education. Local labor laws are flexible.EnvironmentInfrastructure and service networks still under developed in the country. Most of the area are rural and with more than 180 islands in the country. Severe flooding occurred yearly. It caused thousands of homes were inundated and many business operations affected. Singapore levies high excise taxes on motor vehicles and petroleum products due to environmental reason. TechnologyMobile internet is now emerges in the country, providing opportunities to do business through internet. E-Commerce technology enables Thai to support â€Å"business to business† collaboration.It is another technology upcoming trend in the country. Telecommunica tions and Internet facilities in Singapore are extremely well developed. Resource: 2012 Country Commercial Guide for U. S. Companies (http://www. state. gov/) 3. 2 Selection of Country Base on the PESTEL analysis (Table 2), Indonesia will be the best country as the target market of Sun Safe expansion plan outside Malaysia because of its the excellent overall performing ability, widely accepted culture, comparably higher economic growth with less interest rate, and moderate corporate tax rate.What’s more the fact that Indonesia is the largest population growth country which means a vast room for expansion has make it a more attractive market than Thailand and Singapore. 3. 3 Type of Entry mode The expansion into Indonesia market usually could be achieved by indirect investment such as exporting, licensing, trading, joint venture and direct investment. Export Trading Company acts more like an agent to pay the manufacturer for the exported products and thereafter sell the produc t to interested buyers.There is an advantage to help securing foreign market share on behalf of its clients (Fariza hashim et al, 2010). Avery Wellness is recommended to start its business by appointing a local trading and distribution company in the targeted sun care market. The reasons of appointing a trading company are 2 folds: First of all, risk can be transferred to the appointed local company in the new market development. This is because risks still exist since such market expansions come along with potential failures besides profit makings.Secondly, a well established local trading and distribution company has been proved successful pool their resources such as experiences, technologies and capitals together to expand the business in a fast speed. 3. 4 Trading Company Analysis and Selection In order to minimize the rate of failure and ensure the success entry to Indonesia market, an audit to local well known trading companies is made to compare the background of the company , services provided, distribution channel coverage and the reliabilities of the company (Fariza Hashim et al, 2010).There are 3 local trading companies which are PT Dos Ni Roha, PT Maha Jaya Suksesindo and PT Fremont Nusametal Trading that already well-established in Indonesia (Table 3). PT Dos Ni Roha is the best trading company of Avery Wellness because of its market expansion in Indonesia that covers a lot of states and operational experiences in the business. Table 3: Comparison of Trading Companies in Indonesia PT Dos Ni Roha (DNR Distribution)PT Maha Jaya Suksesindo (MJS)PT Fremont Nusametal Trading (FNT) Company BackgroundPT Dos Ni Roha (DNR) was established in year 1963. The company is now a truly professional distributor in the country.PT Maha Jaya Suksesindo (MJS) is a 15 years old trading company in Indonesia and primary business is exporting fast moving consumer goods to Indonesia Borneo and Sumatra island, and other part of ASEAN countries. PT Fremont Nusametal Trading (FNT) main business is distribution home appliances for international brands such as Sony, Panasonic and LG in Indonesia. The company was established in 1985. Scope of ServicesSales and distribution of pharmaceutical products, consumer products, medical supplies and equipment including after sales service. Logistics services including importation, storage, shipping and inventory managementExport and distribution of consumer goods. Trading and distribution of home appliances. Distribution ChannelDNR has 30 branches and 19 sub-branches spread out all over Indonesia: Java Island (greater Jakarta, west Java, central Java, east Java), Bali Nusa Tenggara, Sumatera, Kalimantan, Sulawesi, Jayapura. MJS distribution is mainly in the sub-urban and rural areas of Indonesia especially in Sumatra island. The 8 sales offices of MJS are for exporting businesses. FNT has the largest distribution coverage across the 3 main islands of Indonesia – Java, Sumatra and Borneo. The business model o f FNT is wholesaling of the home appliances.Business LicenseTrading license with ability to do product registration as currently distributing consumer health supplement products. Trading and Export license but MJS only experience in trading locally produced consumer goods. Trading license on home appliances Current Business PartnersDNR is one of the trading company for international consumer goods of Unilever, Kraft Food and leading local beauty products Mustika Ratu and international L’Oreal and medical products B. Braun, Novartis, Schering Plough. Yummy Food Utama is the largest consumer goods in Indonesia with brands such as Indomie and Yam Yam instant noodles.MJS is the sole trading company. Wholesaling partners for Sony, Panasonic and LG. FNT also is sole distributor of Yamaha heavy equipment in Indonesia such as water pumps, and power generators. Source: Indonesia Business Directory, www. gdgindonesia. com 4. Market and Industry Analysis 4. 1 Porter’s Five Forces Analysis Competitive rivalry within an industry An industry could be defined as substance between the established competitors and the substitute products (Porter, 2008). And the competitive rivalry exists between the established competitors in the same product segment and it is the center of the Michael Porter’s five forces model.Sun care industry in Indonesia, though there are many large corporations such as Beiersdorf and Oriflame Coemetics, but the industrial competitive rivalry would not obviously affect Avery Wellness as there is still a large potential growth of sun care in the country. Bargaining power of customers The bargaining power of the customers also poses significant influence over the business behaviors within the sun care industry. Such forces usually could be seen in term of forced down prices, demand for higher-quality or more services and pit rival organizations against one another (Porter, 2008).However, most customers with small quantity of purchase sti ll having low bargaining power though they only demand in effectiveness product. Threat of new entrants The threat of new entrants comes is quite high due to the low entry barriers in Indonesia. This is because Sun Care products can be imported easily into the country of only 10% import taxes imposed. Besides, Indonesia with population of 240 million people among Southeast Asia country is attracted with all multinational company to tap into this large resource country.Bargaining power of supplier Collaborations with manufacturer Follow Me Industries Sdn Bhd in Malaysia has given Avery Wellness a quality assurance and stability supplied of innovative products. Base on the excellence working relationship for more than 20 years with existing cooperation, it should be possible for Avery Wellness to control such increases in bargaining power from suppliers due to the increasing demand of products during the execution of the Indonesia market expansion plan. Threat of substitute productsTh e threat from substitute products to sun care products is very less thanks to the ingredients of sun reflective function named titanium dioxide and zinc oxide. This is because the 2 main ingredients only can be used on sun protection purpose. 4. 2 SWOT Analysis SWOT analysis used to summarize audit which concentrates upon main issues for objectives, strategies and tactics. The audit consists of internal current strengths and weakness that largely controllable, and also external future opportunities and threats that unpredictable (Lancaster Massingham, 2011). Table 4: SWOT Analysis InternalStrength: Both have been establishing for more than 20 years and expertise in product sales and marketing strategy. -Halal certification for both sun care products help to gain more Muslim consumers which is occupied of 65% of Malaysian populations and 95% of Indonesian populations. Weakness: -Avery Wellness as a Distribution company in fact fully reliable on Follow Me as a Manufacturer to provide sun care product. -Market development solely dependent on PT BNR as trading company without involving in any management and strategic planning. ExternalOpportunity: -Indonesia population estimated to be more than 250 million with 58% live in Java island. Similar tropical country with sunny weather almost throughout the year to promote the using of Sun Care product. -Common language and culture between Malaysia and Indonesia which provide easy platform for market development. Threat: -Sun Care products can be imported easily into Indonesia because of only 10% import taxes imposed. -Plenty of existing premium Sun Care brands such as Cllinique, Clarins, Biotherm are entering Indonesia market. -Sun protection awareness is still primarily high only in Jakarta district. But the sub-urban and rural populations are very lacking of health conscious towards sun protection. 4. Total Market Size and Share of Sun Care Despite the market size of Sun Care in Indonesia relatively low compare to ot her country such as Malaysia, Singapore and Thailand even though at same currency exchange, whereby Indonesia population is 5-10 times larger compare to these countries, but still it shown the growth of sun care market ascent almost double from 11. 3 bn Rupiah to 20. 2 bn Rupiah within 6 years from 2007 to 2012 (Table 5). Positively, a sun care product is expected to have greater growth rate in Indonesia market. Table 5: Sun Care Market Size of Indonesia Sun Care2007200820092010201120122012 * (RM mn)World (US$ mn)6,817. 17,557. 77,521. 28,161. 89,043. 39,094. 22,860. 0 Indonesia (Rp bn)11. 311. 911. 613. 516. 720. 26. 36 Malaysia (RM mn)9. 39. 49. 69. 79. 910. 110. 1 Singapore (S$ mn)14. 515. 416. 217. 318. 619. 648. 9 Thailand (Bt mn)1,046. 21,200. 81,183. 01,282. 21,401. 71,597. 0162. 0 Resource: Euromonitor International 2013 *Equivalent to Ringgit Malaysia Table 6: Indonesia Sun Care Brand and Company Shares 2007-2012 BrandCompany Name (GBO)200720082009201020112012 NiveaBeiersdo rf AG40. 141. 446. 042. 236. 843. 0 OriflameOriflame Cosmetics SA24. 319. 19. 214. 321. 412. 2 Nu SkinNu Skin Enterprises Inc6. 6. 28. 39. 210. 010. 9 The Face ShopLG Household Health Cate Ltd8. 08. 39. 09. 6 VaselineUnilever Group-4. 35. 15. 55. 67. 4 Banan BoatEnergizer Holdings Inc3. 74. 14. 43. 93. 24. 3 BiothermLoreal Groupe3. 23. 33. 73. 43. 02. 9 CliniqueEstee Lauder Cos Inc1. 62. 22. 52. 42. 22. 0 ClarinsClarins SA1. 21. 71. 81. 61. 51. 4 RossolareGalenium Pharmasia Laboratories PT0. 30. 30. 40. 40. 40. 4 The Face ShopFaceshop Co Ltd6. 76. 7- OthersOthers12. 610. 710. 68. 86. 96. 0 Total100. 0100. 0100. 0100. 0100. 0100. 0 Source: Euromonitor International 2013 from trade sources/national statistics (Sun Care in Indonesia)The Sun Care brand shares held by most leading companies in Indonesia remained fairly stable from year 2007 to 2012 (Table 6). The top 3 sun care brands mainly imported from international market are Nivea, Oriflame and Nu Skin, total dominated 65-70% of su n care sales in Indonesia from year 2007 to 2012. Beiersdorf Indonesia with its Nivea Sun brand continued to lead sun care with a 46% value share in 2009. The notable fluctuation brand was Oriflame, which its overall share declined from 24. 3% to 12. 2% throughout year from 2007 to 2012 instability.However, Rossolare is the only local sun care brand owned by Galenium Pharmasia Laboratories PT at 0. 3% of total market share (Table 6). 5. Marketing Strategy 5. 1 Marketing Objectives Key Objective of Avery Wellness and PT BNR are to have Market Development of Sun Care segment in Indonesia market order to achieve: 1. Increase company sales revenue contributed from sun care brand market penetration: a. 10% in year 2013, b. 20% in year 2014 and c. 25% in year 2015. (From RM 12. 6 Mil- 2011 to RM 21. 0 Mil- 2015). (Appendix 1) 2. Capture 20% of sun care market share in Indonesia (2012 total market size in Indonesia RM 6. Mil/ 20. 2 bn Rupiah) 3. Achieve 15% net profit margin in Sun Care pr oduct segment in line with profitability generated from other skin care segment within 3 years. 5. 2 Financial Budget 5. 2. 1 Funding Avery Wellness indirect investment strategic to appoint a local trading company in entering Indonesia new market development needs both parties commitment to success the plan. So, both parties need to have contribution in startup capital base on 2:1 ratio whereby Avery Wellness will be contributing RM 500,000 and PT DNR required allocating RM 250,000 as capital to start up the business in Indonesia (Appendix 2). . 2. 2 Working Capital Cash Flow statement is an indication to show cash coming in and out every month. It is essential for a company to use cash to pay business expenses such as bills, wages, merchandise and even unexpected expenses (Farese et al, 2002). Projected cash flow statement (Appendix 3A 3B) shows the budget planning start from December 2012 as a business startup month. Total funding of RM 750,000 (value equivalent to rupiah VER) u se to pay for 2 months inventories (sun care products), import duties of 10% and promotion support in Indonesia market.Account receivable is base on 60 days term and expected cash is recovered in month of March 2013 with RM 120,000 (VER) sales collected on every subsequent month onwards. Monthly wages, general operating and administrative expenses start from month January 2013 at fixed cost of RM 24,000 and RM 5,500 respectively base on monthly basis. Inventory cost at RM 84,000 (VER) will be paid quarterly to store for 3 months supply. Product registration cost of RM 8,000 is used at one off payment to get qualified certificate to sell sun care product within Indonesia. 5. 2. 3 Sales Forecast and ProfitabilitySun SafeTM brand consists of Sun Sport body and Sun Defense face are forecasted to generate additional sales of RM 1. 2 mil in 2013 (Appendix 4). A successful marketing plan is to achieve company main objective by generating satisfaction profit (Kotler 1994). Net profit ranges is expected between 12-19% yearly, which is above the company net profit of 9. 9% in year 2012. 5. 3 Market Mix George Michael (2004) classified the 4 Ps marketing such as Product, Price, Place and Promotion as marketing mix. The target market for Sun SafeTM brand is focused on population in mass market of all age in Indonesia. 5. 3. Product There are 2 Sun care products named Sun Sport body and Sun Defense face to be sold in Indonesia market. Base on Warren Keegan model (table 7), there are 5 international product and communication strategies (Keegan Green, 2011) Table 7: Warren Keegen Model Source: (Keegan Green, 2011)) Avery Wellness is using Straight Extension whereby products that entering foreign market without changes as no requires RD expenses, manufacturer retooling or promotional modification. This will be an added advantage for Avery Wellness as the products is using Bahasa and English as communication to deliver the message.In other cases, this strategy may be a disa ster; for example Campbell Soup Company experienced a loss of $30 million by introducing a condensed soup in England. The reason is product communication breakdown as consumers did not realize water is added in the soup by assuming the product in small can was expensive. 5. 3. 2 Price Sun SafeTM brand will be positioning as low pricng with high quality value to win loyal customers (Kotler Keller, 2012). The selling price for Sun Defense Face and Sun Sport Body in Indonesia will be set at RM 29 RM 25 respectively (VER). . 3. 3 Promotion PT BNR will be using straight extension strategy. Therefore, the company does not change the products and also promotion methods since the culture and language for both Malaysia and Indonesia are similar (Kotler Keller, 2012). For example, Ford adapted its advertising message due to the product used in United States would not be interpreted the same meaning by Spanish speakers. Sun SafeTM brand is expected to obtain sales of RM 1. 2 millions in 2013 . PT BNR is budgeting 10% of the sales revenue for AP purposes.The advertisement campaign is mainly focus on brand awareness and the whole entire activities as below: 1)Press and magazines for sun protection information/article 2)Merchandising at beauty retail outlets. 3)Social media campaign. 4)Public relation of local Muslim Ambassador. 5)Sample distribution in shopping mall. 6)Sales Promotion. 5. 3. 4 Place PT BNR currently is having a very strong and established distribution network in broad channel for its existing product line in 30 branches covered the following chains such as: a. Pharmacy Chains b. Beauty Retailers c. Departmental Store 6. Management Structure and ControllingManagement is the process of reaching goals through the integrated of technology and human resources (Farese et al, 2002). To facilitate the effectiveness of an organization, PT BNR is currently practicing Horizontal Organization structure. Horizontal Organization involves self-managing teams that set th eir own goals and decisions; it helps the process of making spontaneous decision without delaying any important task (Farese et al, 2002) Marketing plan should be controlled using qualitative and quantitative standards including sales, market share, expenses, profitability and customers tracking.The controlling process is an indication to the evaluation of the effectiveness of an organization marketing plan (Lancaster Massingham, 2011). However, despite Avery Wellness is not participating in any sales and marketing activities but the director of sales will be monitoring and control the sales and marketing plan base on annual, profitability, efficiency and strategic control from time to time. 7. The Challenges for SME to Enter International MarketFrom a viewpoint of SME policy, the drastic changes in global growth and trade dynamics may open up opportunities for SMEs in international markets. However, they also pose a new challenge to policy makers in the need to design, adapt and i mplement effective policies to facilitate internationalization and enable SMEs to take full advantage of its benefits (Zizah Che Senik et al, 2010). In general, SMEs are considered to experience greater difficulties relative to large firms when operating internationally because of constrained resources and lack of international experience.Furthermore, the regulatory framework of some high-growth economies makes it more difficult for SMEs to enter the markets, which can be characterized by an unpredictable business environment likes frequent regulatory changes, weak protection of property rights, non-transparent judicial systems, inadequate enforcement of commercial law and specific institutional constraints. All these factors create additional challenges challenge to SMEs, which are typically resource constrained and inexperienced (Zizah Che Senik et al, 2010).A study on â€Å"Removing Barriers to SMEs Access to Global Markets† has identified in some of the barriers that affe ct the decision in entering foreign market. Table 6 has shown the ranking of the barriers (Koji Ito, 2013). Table 8: Types of Barrier of entering foreign market RankingTypes of Barrier 1Inadequate of well trained personnel 2Working capital shortage 3Insufficient and limited information on market audit 4Wrongly identifying foreign business opportunities 5Time management to manage international business is lack 6Inability to rapture potential customers in oversea market 7No strategy to develop products for foreign markets Unfamiliar foreign business practices and regulation 9Product quality and standard not meet the country requirement 10Unfamiliar exporting procedures and processes Source: US International Trade Commission (2010). 9. Recommendations It is suggested that Avery Wellness should build a network in Indonesia by appointing PT BNR as a trading company to distribute its products in the country. However, it is recommended that Avery Wellness can use direct entry mode after th e successful of product penetration into Indonesia market. International Marketing Management Essay Example International Marketing Management Essay Avery Wellness (M) Sdn Bhd is a private company specialise in total skin care and beauty product solutions in Malaysia. The company began its operation in Malaysia since 1990. Follow Me Industries Sdn Bhd is the sole manufacturing facility for all skin care and beauty products to Avery Wellness (M) Sdn Bhd. Avery Wellness business model involved in marketing and distributing skin care and sun care products within Malaysia market. The main distribution centres in Malaysia focus in all pharmacy chains, departmental stores and beauty retailers.The company is envisaged to transform from a local enterprise into a multinational brand company with growth plan to tap into overseas market. The company has a headquarter base in Subang Jaya Industrial Park with total 80 employees. The advantage of Avery Wellness products are HALAL accreditation and this gave the company a strong market presence in Muslim segment. The company with its marketing and branding strategy by leveraging on local Muslim celebrity as ambassador to successful help the brand enters the Muslim market. 2. 2 Vision and MissionAvery Wellness is visioning to capture the South East Asian market and to emerge as a dominant company in providing skin care and sun care solution for all consumers. The mission of Avery Wellness is to provide continuous innovative and reliable product to overcome all man and woman skin problems with a product certified halal accreditation. 2. 3 Sales Revenue Avery Wellness average sales revenue for the past 3 years from 2010 to 2012 mainly contributed from 3 major brands which are Ageless solution, Clear Clean and Sun Safeâ„ ¢ (Table 1).The percentage of contribution is 46%, 20% and 34% respectively. The Sun Safeâ„ ¢ brand has two main sun care products which are Sun Safeâ„ ¢ Face and Sun Safeâ„ ¢ Body. Currently the market share for these two products in sun care category is more than 35% in Malaysia. Table 1: Sale Revenue on Skin Care Brand for Avery Wellness Brand 2010 (RM/Million)2011 (RM/Million)2012 (RM/Million)Averagepercentage Ageless5. 55. 86. 05. 7746% Clear Clean2. 42. 52. 52. 4720% Sun Safeâ„ ¢4. 24. 34. 34. 2734% Total Revenue12. 112. 12. 812. 5100% 2. 4 International Market Entry Objective In view of sales revenue stagnancy from year 2010 to 2012, and increasing of fixed and variable cost yearly such as cost of goods sold, salaries and wages, interest expenses and promotion, thus impacting in net income yearly. In fact, there is significant descent of net profit from 11. 4 % to only 9. 9% in year 2012 (Appendix 1). In order to sustain business growth and achieve imperative profitability, step to enter international market is essential.In particular, sustained economic growth has been experienced in emerging economies, which have become a source of expanding market opportunities and are currently underpinning the global recovery (Zizah Che Senik et al, 2010). Malaysia policy of governance encourages local SME to go International . In the effort to encourage SMEs to go global, SME Corp has introduced the National Mark of Malaysia Brand which is a certification process, audited and monitored by Sirim.Through this initiative, Malaysian Brands are developed not just for the local market, but with the intention that they would be good enough to penetrate international markets (Mohd Rithaudden Makip, 2012) In addition, the SME Master plan (2012-2020) has also outlined a High Impact Programme – Going Export Programme that will focus on addressing challenges faced by SMEs on entering new markets overseas, which include high upfront costs and the lack of detailed knowledge about the markets and local competitors (Charles Fernandez, 2013). 3 Country and Market Entry Analysis 3. 1 Country AnalysisIndonesia, Thailand and Singapore are selected as the potential markets for Avery Wellness’s expansion plan to sell HALAL accreditation sun care products. In order to minimize business failure and find out the b est of the country market, three candidate markets (Indonesia, Thailand and Singapore) which are the most nearest country to Malaysia are chosen to make comparison for the first step of Avery Wellness to success. The selection of oversea markets is a vital issue for a company, this is imperative as the international business environment is turbulent and more uncertain as compared to domestic market.Therefore, fully identify the potential opportunities cab be exploited while minimizing threats and risks (Fariza Hashim et al, 2010). 3. 1. 1 PESTEL Analysis PESTEL analysis will be used to focus the discussion within this analytical framework on the political, economical, social, technological, environmental and legal factors that may influence the business operation for the company (Kotler 1994). A company must be aware of many considerations such as differences in language and customs as well as political and legal when doing business internationally (Farese et al, 2002).Table 2: Comp arison of PESTEL on Indonesia, Thailand and Singapore Analysis FactorCountry IndonesiaThailandSingapore Political Legal(tax)Doing business in Indonesia is complex and time consuming. This is because of negotiation through the regulatory and industrial landscape. Corruption in the country is active at all levels. Skin care Import duties and taxes of 10% are applied in this country. Thailand is an export-dependent country. A total of $ 223 billion worth of goods in 2011 were exported, accounting 69% of its GDP. Corruption and lack of transparency still a major concerns especially in procurement tender.Thailand’s average applied tariff rate is 11%. Highest tariff rates applied to imports competing with locally produced goods. Skin care is 35% of import duties and taxes. Singapore is a free port country. More than 99% of all imports enter Singapore duty-free. It is a liberal trading regime. Singapore is a strong intellectual property protection country with virtually no corrupti on. Singapore levies a 7% Goods and Services Tax (GST), including skin care products. Economic (Gross Domestic Product) Indonesia is the largest population with 240 million in Southeast Asia.GDP growth above 6. 5% in 2011 and projected to remain above 6%. GDP per capita of $3,500. .The total population in Thailand in year 2012 is 67 Million. Thai economy grew only 1% in 2011, as the devastation caused by severe flooding that happened yearly in the country. GDP growth rate only 5. 5% in year 2012 and estimated will be above 7. 5% in year 2013. Total population in in year 2012 is 5 Million Singapore economy expanded by 14. 5% in year 2012, become the second fastest growing economy in the world. GDP is expected sustainable growth of 4% in 2013.Social CulturalRich natural resources country with very strong domestic demand. Bahasa is a common speaking and language used in Indonesia. Indonesian labor cost is relatively low by compare other Southeast Countries. Consumers are extremely pri ce-conscious; prefer lower prices over product quality. Thai and English are the most common spoken language in the country. Labor cost is moderate, where unemployment rate in 2010 only 1% of the labor force. Most citizen and people are highly educated. English is common language for business and education. Local labor laws are flexible.EnvironmentInfrastructure and service networks still under developed in the country. Most of the area are rural and with more than 180 islands in the country. Severe flooding occurred yearly. It caused thousands of homes were inundated and many business operations affected. Singapore levies high excise taxes on motor vehicles and petroleum products due to environmental reason. TechnologyMobile internet is now emerges in the country, providing opportunities to do business through internet. E-Commerce technology enables Thai to support â€Å"business to business† collaboration.It is another technology upcoming trend in the country. Telecommunica tions and Internet facilities in Singapore are extremely well developed. Resource: 2012 Country Commercial Guide for U. S. Companies (http://www. state. gov/) 3. 2 Selection of Country Base on the PESTEL analysis (Table 2), Indonesia will be the best country as the target market of Sun Safe expansion plan outside Malaysia because of its the excellent overall performing ability, widely accepted culture, comparably higher economic growth with less interest rate, and moderate corporate tax rate.What’s more the fact that Indonesia is the largest population growth country which means a vast room for expansion has make it a more attractive market than Thailand and Singapore. 3. 3 Type of Entry mode The expansion into Indonesia market usually could be achieved by indirect investment such as exporting, licensing, trading, joint venture and direct investment. Export Trading Company acts more like an agent to pay the manufacturer for the exported products and thereafter sell the produc t to interested buyers.There is an advantage to help securing foreign market share on behalf of its clients (Fariza hashim et al, 2010). Avery Wellness is recommended to start its business by appointing a local trading and distribution company in the targeted sun care market. The reasons of appointing a trading company are 2 folds: First of all, risk can be transferred to the appointed local company in the new market development. This is because risks still exist since such market expansions come along with potential failures besides profit makings.Secondly, a well established local trading and distribution company has been proved successful pool their resources such as experiences, technologies and capitals together to expand the business in a fast speed. 3. 4 Trading Company Analysis and Selection In order to minimize the rate of failure and ensure the success entry to Indonesia market, an audit to local well known trading companies is made to compare the background of the company , services provided, distribution channel coverage and the reliabilities of the company (Fariza Hashim et al, 2010).There are 3 local trading companies which are PT Dos Ni Roha, PT Maha Jaya Suksesindo and PT Fremont Nusametal Trading that already well-established in Indonesia (Table 3). PT Dos Ni Roha is the best trading company of Avery Wellness because of its market expansion in Indonesia that covers a lot of states and operational experiences in the business. Table 3: Comparison of Trading Companies in Indonesia PT Dos Ni Roha (DNR Distribution)PT Maha Jaya Suksesindo (MJS)PT Fremont Nusametal Trading (FNT) Company BackgroundPT Dos Ni Roha (DNR) was established in year 1963. The company is now a truly professional distributor in the country.PT Maha Jaya Suksesindo (MJS) is a 15 years old trading company in Indonesia and primary business is exporting fast moving consumer goods to Indonesia Borneo and Sumatra island, and other part of ASEAN countries. PT Fremont Nusametal Trading (FNT) main business is distribution home appliances for international brands such as Sony, Panasonic and LG in Indonesia. The company was established in 1985. Scope of ServicesSales and distribution of pharmaceutical products, consumer products, medical supplies and equipment including after sales service. Logistics services including importation, storage, shipping and inventory managementExport and distribution of consumer goods. Trading and distribution of home appliances. Distribution ChannelDNR has 30 branches and 19 sub-branches spread out all over Indonesia: Java Island (greater Jakarta, west Java, central Java, east Java), Bali Nusa Tenggara, Sumatera, Kalimantan, Sulawesi, Jayapura. MJS distribution is mainly in the sub-urban and rural areas of Indonesia especially in Sumatra island. The 8 sales offices of MJS are for exporting businesses. FNT has the largest distribution coverage across the 3 main islands of Indonesia – Java, Sumatra and Borneo. The business model o f FNT is wholesaling of the home appliances.Business LicenseTrading license with ability to do product registration as currently distributing consumer health supplement products. Trading and Export license but MJS only experience in trading locally produced consumer goods. Trading license on home appliances Current Business PartnersDNR is one of the trading company for international consumer goods of Unilever, Kraft Food and leading local beauty products Mustika Ratu and international L’Oreal and medical products B. Braun, Novartis, Schering Plough. Yummy Food Utama is the largest consumer goods in Indonesia with brands such as Indomie and Yam Yam instant noodles.MJS is the sole trading company. Wholesaling partners for Sony, Panasonic and LG. FNT also is sole distributor of Yamaha heavy equipment in Indonesia such as water pumps, and power generators. Source: Indonesia Business Directory, www. gdgindonesia. com 4. Market and Industry Analysis 4. 1 Porter’s Five Forces Analysis Competitive rivalry within an industry An industry could be defined as substance between the established competitors and the substitute products (Porter, 2008). And the competitive rivalry exists between the established competitors in the same product segment and it is the center of the Michael Porter’s five forces model.Sun care industry in Indonesia, though there are many large corporations such as Beiersdorf and Oriflame Coemetics, but the industrial competitive rivalry would not obviously affect Avery Wellness as there is still a large potential growth of sun care in the country. Bargaining power of customers The bargaining power of the customers also poses significant influence over the business behaviors within the sun care industry. Such forces usually could be seen in term of forced down prices, demand for higher-quality or more services and pit rival organizations against one another (Porter, 2008).However, most customers with small quantity of purchase sti ll having low bargaining power though they only demand in effectiveness product. Threat of new entrants The threat of new entrants comes is quite high due to the low entry barriers in Indonesia. This is because Sun Care products can be imported easily into the country of only 10% import taxes imposed. Besides, Indonesia with population of 240 million people among Southeast Asia country is attracted with all multinational company to tap into this large resource country.Bargaining power of supplier Collaborations with manufacturer Follow Me Industries Sdn Bhd in Malaysia has given Avery Wellness a quality assurance and stability supplied of innovative products. Base on the excellence working relationship for more than 20 years with existing cooperation, it should be possible for Avery Wellness to control such increases in bargaining power from suppliers due to the increasing demand of products during the execution of the Indonesia market expansion plan. Threat of substitute productsTh e threat from substitute products to sun care products is very less thanks to the ingredients of sun reflective function named titanium dioxide and zinc oxide. This is because the 2 main ingredients only can be used on sun protection purpose. 4. 2 SWOT Analysis SWOT analysis used to summarize audit which concentrates upon main issues for objectives, strategies and tactics. The audit consists of internal current strengths and weakness that largely controllable, and also external future opportunities and threats that unpredictable (Lancaster Massingham, 2011). Table 4: SWOT Analysis InternalStrength: Both have been establishing for more than 20 years and expertise in product sales and marketing strategy. -Halal certification for both sun care products help to gain more Muslim consumers which is occupied of 65% of Malaysian populations and 95% of Indonesian populations. Weakness: -Avery Wellness as a Distribution company in fact fully reliable on Follow Me as a Manufacturer to provide sun care product. -Market development solely dependent on PT BNR as trading company without involving in any management and strategic planning. ExternalOpportunity: -Indonesia population estimated to be more than 250 million with 58% live in Java island. Similar tropical country with sunny weather almost throughout the year to promote the using of Sun Care product. -Common language and culture between Malaysia and Indonesia which provide easy platform for market development. Threat: -Sun Care products can be imported easily into Indonesia because of only 10% import taxes imposed. -Plenty of existing premium Sun Care brands such as Cllinique, Clarins, Biotherm are entering Indonesia market. -Sun protection awareness is still primarily high only in Jakarta district. But the sub-urban and rural populations are very lacking of health conscious towards sun protection. 4. Total Market Size and Share of Sun Care Despite the market size of Sun Care in Indonesia relatively low compare to ot her country such as Malaysia, Singapore and Thailand even though at same currency exchange, whereby Indonesia population is 5-10 times larger compare to these countries, but still it shown the growth of sun care market ascent almost double from 11. 3 bn Rupiah to 20. 2 bn Rupiah within 6 years from 2007 to 2012 (Table 5). Positively, a sun care product is expected to have greater growth rate in Indonesia market. Table 5: Sun Care Market Size of Indonesia Sun Care2007200820092010201120122012 * (RM mn)World (US$ mn)6,817. 17,557. 77,521. 28,161. 89,043. 39,094. 22,860. 0 Indonesia (Rp bn)11. 311. 911. 613. 516. 720. 26. 36 Malaysia (RM mn)9. 39. 49. 69. 79. 910. 110. 1 Singapore (S$ mn)14. 515. 416. 217. 318. 619. 648. 9 Thailand (Bt mn)1,046. 21,200. 81,183. 01,282. 21,401. 71,597. 0162. 0 Resource: Euromonitor International 2013 *Equivalent to Ringgit Malaysia Table 6: Indonesia Sun Care Brand and Company Shares 2007-2012 BrandCompany Name (GBO)200720082009201020112012 NiveaBeiersdo rf AG40. 141. 446. 042. 236. 843. 0 OriflameOriflame Cosmetics SA24. 319. 19. 214. 321. 412. 2 Nu SkinNu Skin Enterprises Inc6. 6. 28. 39. 210. 010. 9 The Face ShopLG Household Health Cate Ltd8. 08. 39. 09. 6 VaselineUnilever Group-4. 35. 15. 55. 67. 4 Banan BoatEnergizer Holdings Inc3. 74. 14. 43. 93. 24. 3 BiothermLoreal Groupe3. 23. 33. 73. 43. 02. 9 CliniqueEstee Lauder Cos Inc1. 62. 22. 52. 42. 22. 0 ClarinsClarins SA1. 21. 71. 81. 61. 51. 4 RossolareGalenium Pharmasia Laboratories PT0. 30. 30. 40. 40. 40. 4 The Face ShopFaceshop Co Ltd6. 76. 7- OthersOthers12. 610. 710. 68. 86. 96. 0 Total100. 0100. 0100. 0100. 0100. 0100. 0 Source: Euromonitor International 2013 from trade sources/national statistics (Sun Care in Indonesia)The Sun Care brand shares held by most leading companies in Indonesia remained fairly stable from year 2007 to 2012 (Table 6). The top 3 sun care brands mainly imported from international market are Nivea, Oriflame and Nu Skin, total dominated 65-70% of su n care sales in Indonesia from year 2007 to 2012. Beiersdorf Indonesia with its Nivea Sun brand continued to lead sun care with a 46% value share in 2009. The notable fluctuation brand was Oriflame, which its overall share declined from 24. 3% to 12. 2% throughout year from 2007 to 2012 instability.However, Rossolare is the only local sun care brand owned by Galenium Pharmasia Laboratories PT at 0. 3% of total market share (Table 6). 5. Marketing Strategy 5. 1 Marketing Objectives Key Objective of Avery Wellness and PT BNR are to have Market Development of Sun Care segment in Indonesia market order to achieve: 1. Increase company sales revenue contributed from sun care brand market penetration: a. 10% in year 2013, b. 20% in year 2014 and c. 25% in year 2015. (From RM 12. 6 Mil- 2011 to RM 21. 0 Mil- 2015). (Appendix 1) 2. Capture 20% of sun care market share in Indonesia (2012 total market size in Indonesia RM 6. Mil/ 20. 2 bn Rupiah) 3. Achieve 15% net profit margin in Sun Care pr oduct segment in line with profitability generated from other skin care segment within 3 years. 5. 2 Financial Budget 5. 2. 1 Funding Avery Wellness indirect investment strategic to appoint a local trading company in entering Indonesia new market development needs both parties commitment to success the plan. So, both parties need to have contribution in startup capital base on 2:1 ratio whereby Avery Wellness will be contributing RM 500,000 and PT DNR required allocating RM 250,000 as capital to start up the business in Indonesia (Appendix 2). . 2. 2 Working Capital Cash Flow statement is an indication to show cash coming in and out every month. It is essential for a company to use cash to pay business expenses such as bills, wages, merchandise and even unexpected expenses (Farese et al, 2002). Projected cash flow statement (Appendix 3A 3B) shows the budget planning start from December 2012 as a business startup month. Total funding of RM 750,000 (value equivalent to rupiah VER) u se to pay for 2 months inventories (sun care products), import duties of 10% and promotion support in Indonesia market.Account receivable is base on 60 days term and expected cash is recovered in month of March 2013 with RM 120,000 (VER) sales collected on every subsequent month onwards. Monthly wages, general operating and administrative expenses start from month January 2013 at fixed cost of RM 24,000 and RM 5,500 respectively base on monthly basis. Inventory cost at RM 84,000 (VER) will be paid quarterly to store for 3 months supply. Product registration cost of RM 8,000 is used at one off payment to get qualified certificate to sell sun care product within Indonesia. 5. 2. 3 Sales Forecast and ProfitabilitySun SafeTM brand consists of Sun Sport body and Sun Defense face are forecasted to generate additional sales of RM 1. 2 mil in 2013 (Appendix 4). A successful marketing plan is to achieve company main objective by generating satisfaction profit (Kotler 1994). Net profit ranges is expected between 12-19% yearly, which is above the company net profit of 9. 9% in year 2012. 5. 3 Market Mix George Michael (2004) classified the 4 Ps marketing such as Product, Price, Place and Promotion as marketing mix. The target market for Sun SafeTM brand is focused on population in mass market of all age in Indonesia. 5. 3. Product There are 2 Sun care products named Sun Sport body and Sun Defense face to be sold in Indonesia market. Base on Warren Keegan model (table 7), there are 5 international product and communication strategies (Keegan Green, 2011) Table 7: Warren Keegen Model Source: (Keegan Green, 2011)) Avery Wellness is using Straight Extension whereby products that entering foreign market without changes as no requires RD expenses, manufacturer retooling or promotional modification. This will be an added advantage for Avery Wellness as the products is using Bahasa and English as communication to deliver the message.In other cases, this strategy may be a disa ster; for example Campbell Soup Company experienced a loss of $30 million by introducing a condensed soup in England. The reason is product communication breakdown as consumers did not realize water is added in the soup by assuming the product in small can was expensive. 5. 3. 2 Price Sun SafeTM brand will be positioning as low pricng with high quality value to win loyal customers (Kotler Keller, 2012). The selling price for Sun Defense Face and Sun Sport Body in Indonesia will be set at RM 29 RM 25 respectively (VER). . 3. 3 Promotion PT BNR will be using straight extension strategy. Therefore, the company does not change the products and also promotion methods since the culture and language for both Malaysia and Indonesia are similar (Kotler Keller, 2012). For example, Ford adapted its advertising message due to the product used in United States would not be interpreted the same meaning by Spanish speakers. Sun SafeTM brand is expected to obtain sales of RM 1. 2 millions in 2013 . PT BNR is budgeting 10% of the sales revenue for AP purposes.The advertisement campaign is mainly focus on brand awareness and the whole entire activities as below: 1)Press and magazines for sun protection information/article 2)Merchandising at beauty retail outlets. 3)Social media campaign. 4)Public relation of local Muslim Ambassador. 5)Sample distribution in shopping mall. 6)Sales Promotion. 5. 3. 4 Place PT BNR currently is having a very strong and established distribution network in broad channel for its existing product line in 30 branches covered the following chains such as: a. Pharmacy Chains b. Beauty Retailers c. Departmental Store 6. Management Structure and ControllingManagement is the process of reaching goals through the integrated of technology and human resources (Farese et al, 2002). To facilitate the effectiveness of an organization, PT BNR is currently practicing Horizontal Organization structure. Horizontal Organization involves self-managing teams that set th eir own goals and decisions; it helps the process of making spontaneous decision without delaying any important task (Farese et al, 2002) Marketing plan should be controlled using qualitative and quantitative standards including sales, market share, expenses, profitability and customers tracking.The controlling process is an indication to the evaluation of the effectiveness of an organization marketing plan (Lancaster Massingham, 2011). However, despite Avery Wellness is not participating in any sales and marketing activities but the director of sales will be monitoring and control the sales and marketing plan base on annual, profitability, efficiency and strategic control from time to time. 7. The Challenges for SME to Enter International MarketFrom a viewpoint of SME policy, the drastic changes in global growth and trade dynamics may open up opportunities for SMEs in international markets. However, they also pose a new challenge to policy makers in the need to design, adapt and i mplement effective policies to facilitate internationalization and enable SMEs to take full advantage of its benefits (Zizah Che Senik et al, 2010). In general, SMEs are considered to experience greater difficulties relative to large firms when operating internationally because of constrained resources and lack of international experience.Furthermore, the regulatory framework of some high-growth economies makes it more difficult for SMEs to enter the markets, which can be characterized by an unpredictable business environment likes frequent regulatory changes, weak protection of property rights, non-transparent judicial systems, inadequate enforcement of commercial law and specific institutional constraints. All these factors create additional challenges challenge to SMEs, which are typically resource constrained and inexperienced (Zizah Che Senik et al, 2010).A study on â€Å"Removing Barriers to SMEs Access to Global Markets† has identified in some of the barriers that affe ct the decision in entering foreign market. Table 6 has shown the ranking of the barriers (Koji Ito, 2013). Table 8: Types of Barrier of entering foreign market RankingTypes of Barrier 1Inadequate of well trained personnel 2Working capital shortage 3Insufficient and limited information on market audit 4Wrongly identifying foreign business opportunities 5Time management to manage international business is lack 6Inability to rapture potential customers in oversea market 7No strategy to develop products for foreign markets Unfamiliar foreign business practices and regulation 9Product quality and standard not meet the country requirement 10Unfamiliar exporting procedures and processes Source: US International Trade Commission (2010). 9. Recommendations It is suggested that Avery Wellness should build a network in Indonesia by appointing PT BNR as a trading company to distribute its products in the country. However, it is recommended that Avery Wellness can use direct entry mode after th e successful of product penetration into Indonesia market.

How to Make Rock Salt

How to Make Rock Salt Rock salt is a natural, unrefined salt consisting of large crystals with mineral impurities. Sometimes the impurities color the salt. For example, natural salt occurs in white, pink, red, and black. The grain size, color, and flavor make rock salt popular for recipes, bath products, and crafts, but it can be expensive! You can make your own rock salt substitute from regular table salt. Rock Salt Materials Salt (NaCl) - You can use iodized salt, uniodized salt, or sea salt.WaterFood coloring (optional) Grow Rock Salt Crystals Heat the water to a rolling boil. Very hot tap water is not hot enough because salt solubility depends on temperature.Stir in salt until no more will dissolve.If desired, add a couple of drops of food coloring. Two drops of red and one of yellow will give you rock salt that resembles pink Himalayan rock salt.Pour the solution into a clean container. For the cleanest crystals, avoid getting undissolved salt into this new container. On the other hand, for the quickest results, leave the undissolved salt to help start crystal growth.Let the salt crystals grow. As the water evaporates, the liquid becomes more concentrated and the crystals will grow more quickly. When you are satisfied with the amount you have (or the crystals stop growing), pour off the remaining liquid and let the salt dry. You can break it into pieces and store it in a sealed bag or jar.

What extent has Facebook embraced diversity in its recruitment policy Research Proposal

What extent has Facebook embraced diversity in its recruitment policy - Research Proposal Example Many organizations have acknowledged the importance of embracing heterogeneity in the workplace. In the past, numerous organizations compelled employees to correspond to established organizational culture and abandon one’s diverse attitudes and traditions. According to Brecher’s (2012, p. 24) research, organizations that embraced diversity had a tremendous potential for promoting organizational success. For this reason, the new goal for many organizations is to manage diversity and strive to empower employees to develop their various talents effectively. Scholars have been ardent to highlight that encompassing diversity elevates the level of efficiency and innovation in an organization. Many organizations are endeavoring to register a remarkable innovative capacity. It is impossible for organizations to achieve this without bringing on board individuals with varying talents. Companies are looking for employees with diverse perspectives concerning different issues with the primary objective of having a team that can develop numerous alternative solutions. According to Chrobot-Mason and Abramovich (2013, p. 664), the new focus for every organization is on the strengths that each employee can bring to the business. Unlike in the past, companies do not exclude individuals based on their differences. Alcocer’s (2014, p. 205) assertions concerning diversity have helped businesses realize that the differences in any organization may help the company gain a competitive advantage.