Geely Automobile Free Essays

International Business Environment Analysis for Geely plc. 1 International Business Environment II Module title: International Business Environment (P13KL9) Module convener: Lei Li Title: Critical Analysis of International Business Environment in UK and Malaysia : A Project of Geely plc‘s Foreign Expansion Group Name List GROUP NO. ID NO. We will write a custom essay sample on Geely Automobile or any similar topic only for you Order Now 6501184 6501425 6501559 6501825 6501972 6500420 6501843 NAME Chen Yiduo Wang Hao Yin Xiaoyun Wang Zheng Zhu Weixing Zhu Leizhen Wu Gaoying Number of Words: 4201 Submission Time/Date: 14th May, 2010 2 International Business Environment II Covering Note: Yiduo, Chen(6501184), Leader: ASEAN, Leverage the multinational institutions—ASEAN, UNNC Gaoying, Wu (6501843): WTO, UNNC Hao, Wang (6501425): EU, Leverage the multinational institutions—EU, UNNC Leizhen, Zhu (6500420): Income profile, Culture, Marketing analysis—Income profile, UNNC Introduction, Econography, Political risk, Assessment, Conclusion, UNNC Weixin, Zhu (6501972): Xiaoyun, Yin (6501559): Legal System, Exchange rate, Geely‘s Reacts, Recommendations, UNNC Zheng, Wang (6501825): Tax regime, Restrictions, Marketing analysis—legal system, UNNC 3 International Business Environment II Table of contents Pages 1. Introduction †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 5 2. ECLIPTER facotrs analysis†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 5 2. 1Econography 2. 2 Culture 2. 3 Legal system 2. 4Income profile 2. 5 Political risk 2. 6 Tax Regime 2. 7 Exchange rate 2. 8 Restrictions Institutions†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. †¦.. 13 3. 1 WTO 3. 2 EU 3. 3 ASEAN 3. 4. Assessment of Geely’s overall international expansion strategy†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 15 5. Marketing analysis†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢ € ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 16 5. 1 Legal system 5. 2 Income profile 6. Geely’s reacts to the impact of the ECLIPTER†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 8 7. Leverage the multilateral institutions†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. †¦Ã¢â‚¬ ¦.. 19 7. 1 ASEAN 7. 2 EU 8. Implications and Recommendations†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 20 9. Conclusion†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 21 10. References†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 22 11. Appendix (Interview)†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦28 4 International Business Environment II 1. Introduction Geely, the China-based auto company and one of the newly-emerged multinationals in the world auto market, exerts tremendous influences on the auto industry. This essay will conduct a critical analysis of the international business environment that the company faces. In the first part, the ECLIPTER factors including econography, culture, legal system, income profile, political risk, tax regime, exchange rate and restrictions, together with the multilateral institutions such as WTO, EU and ASEAN will be examined by using UK and Malaysia as examples. Then based on this analysis, it will provide an assessment of the company‘s overall international expansion strategy and process. In the second part, legal system and income profile, the two most important ECLIPTER factors on Geely‘ overseas operations, will be evaluated. Furthermore, the scheme which Geely used to deal with the impact of these two factors and leverage the multilateral institutions will be shown. Finally, this report will analyze whether the company‘s international adaptation of the business function is effective, and then give some recommendations and lessons. 2. ECLIPTER Factors Analysis 2. 1 Econography Econography refers to physical and human assets including distance from major markets, and natural resources of nations that affect industry performance. In the first, the close distance between parent company and foreign subsidiary can help the company to reduce the transport costs and overhead expenses; it also can improve the connection between them. If the parent company is in China, it is better to build a subsidiary in Asia such as Malaysia. Secondly, the natural resources used for making cars mainly include steel, copper, and aluminum. If the country owns rich mineral resources, it can greatly provide benefit in the production of automobiles. One of the major purposes for many multinational corporations establishing overseas subsidiaries is to exploit the foreign natural resources. This is good for companies to 5 International Business Environment II reduce production costs and get competitive advantages. As World Steel Association reported in 2009 that the crude steel production of United Kingdom is 13. 5 in 2008, whereas the crude steel production of Malaysia is 6. 1 in 2008. 2. 2 Culture This paragraph will analyze the effects of culture on auto industry through power distance index and saving rate. Firstly, power distance index measures the degree of inequality exists in a society (Hofstede, 1997). The power distance index is 80 in Malaysia whereas it is only 35 in UK (Hofstede, 2008). The unequal distribution of wealth makes most Malaysian citizens prefer to hold a commercial auto. So the inexpensive Geely auto could be a good option for them. Secondly, saving rate could be a standard to show the attitude of citizens. The saving rate of Malaysia was 47 per cent in the year 1998 which ranks second in Asia (Azia, 2004). In contrast, the saving rate in UK was significantly low, which was less than 10 percent in the past ten years. For instance, the saving rate of UK household in 2008 was only 1. 7 percent (chart 1)(Presser, 2008). So UK citizens are apt to consume a relatively high price car. Chart 1 Resource from Posser (2008) 6 International Business Environment II 2. 3 Legal system The auto industry has been affected by laws and government regulations since the 1960’s. The first safety act passed in 1966 by Congress and was called the National Traffic and Motor Vehicle Safety Act (Highfill, 2004). This act forced manufacturers to improve the safety for the passengers, the driver visibility, and the braking of the car. Not only safety, but also environment is being growingly concerned even before the oil crisis. The Vehicle Air Pollution and Control Act passed in 1965 was the first act to set standards for automobile pollution. Then in the 1970’s, Congress passed the Clean Air Act that led to a 90% decrease in automobile emission within the next six years (ibid). In the 1970’s the oil crisis led to the approval of The Energy Policy and Conservation Act of 1975 which stated that all automobiles must meet a certain mileage per gallon. The act required that all automobiles had to meet a standard of 20mpg by the 1980 model and then 27. 5 mpg for the 1985 model (ibid). EU 2020 growth strategy also emphasizes the importance of low carbon automobile (Society of Motor Manufacturers and Traders, 2010). There are also many special laws for auto industry in different countries, such as Malaysia, which has built a free trade area for production and assembly of products for export-oriented enterprises. Companies can enjoy the minimum tariffs, raw materials and simplified mechanical equipment import formalities. Nevertheless, the Malaysia government regulates that more than 80% products should export to other countries (Daily News, 2006). Furthermore, the UK Byers Acts Measures to cut the average price of a car by ? 1,100 and save private car buyers around ? 1 billion a year. Although it may lower the profitability of auto industry, the number of consumers will increase gradually (DTI, 2000). 2. 4 Income profile Since automobile is not inferior goods, the demand of automobile would rise when income increases. In the economic aspect, income could be an indicator of the purchasing power of individuals and nations. Data from UK national statistics office (2010) demonstrated that despite the contracted 4. 9 percent of GDP in the whole year, the GDP increased 0. 4 percent in 7 International Business Environment II the fourth quarter of 2009. Furthermore, Household expenditure also rose 0. percent in the fourth quarter of 2009 in UK (chart2). For Malaysia, the GDP growth in the fourth quarter of 2009 was 4. 5 though the figure was negative in the whole year (chart 3) (Malaysia statistics, 2010). It can be observed that the economy of both UK and Malaysia seem to recover from the global financial crisis. This positive signal predicts the growing demand and diste nsible market for Geely in both countries. Chart 2 Resource from UK statistics 2010 Chart3 Resource from Malaysia statistics 2010 8 International Business Environment II The core competitiveness of Geely automobile relies on its high performance-price ratio. Per capital GNI (Gross national income) in Malaysia was 25784 RM in 2008. By analyzing the 2004 United Nations Human Development (UNHDP) report, except the 20% population of richest and poorest class, Geely will be a better choice for the rest citizens in Malaysia(chart 4) (Lumpur, 2004). In comparison, the young people account for a great amount of population in UK. A source from HMRC shows the average income of under 20 years is ? 9,570 and 20-24 years is ? 13,200 which is below the average (chart 5). It implies that when young generation decide to buy a car, price is the first consideration factor. For medium quality car manufacture companies, young population in UK could be a potential group of customers. Chart 4 9 International Business Environment II Chart5 Median Age Band Under 20 years 20 – 24 ? 11,800 years 25 – 29 ? 17,000 years 30 -34 ? 19,500 years 35 – 39 ? 20,100 years 40-44 ? 20,200 years 45 – 49 ? 20,300 years Resource from Lumpur (2004) ? 28,600 ? 24,800 ? 35,400 ? 15,200 ? 20,100 ? 28,100 ? 24,600 ? 34,600 ? 14,900 ? 19,800 ? 26,800 ? 23,600 ? 31,700 ? 15,500 ? 20,100 ? 23,900 ? 21,600 ? 26,700 ? 16,400 ? 20,100 ? 19,300 ? 17,800 ? 20,600 ? 15,900 ? 17,800 ? 3,200 ? 12,400 ? 13,800 ? 11,200 ? 12,300 ? 8,130 ? 9,570 ? 8,490 ? 9,810 ? 7,990 ? 9,250 Median Income Mean Income Income (Men) (Men) (Women) (Women) Income Income Income Mean Median Mean 2. 5 Political risk According to Guinger (2001), political risk describes the stability of government institutions. It can be measured in a variety of ways such as likelihood of foreign aggressio n and civil insurrection. The Transparency International (2009) showed that UK and Malaysia both face some problems of political corruption, which adversely affects the efficiency of economic operation. World Bank estimates that corruption could cost Malaysia as much as RM10 10 International Business Environment II billion a year – an amount equivalent to 1 or 2 per cent of GDP. The corruption in the UK is lighter than Malaysia, which ranked 17, whereas Malaysia ranked 56 in world in 2009 based on Corruption Perceptions Index 2009. But the corruption in UK is not unheard. Surveys by Control Risks and Simmons Simmons show that the awareness of UK laws against foreign bribery may be decreasing over time. In 2002, after the act came into force, 68 percent of respondents said they were familiar with its main points. But in 2006, 48 percent people said that they have totally ignored it (Global Corruption Report, 2009). 2. 6 Tax Regime Tax regime refers to the tax instruments that governments use to raise revenues from multinational firms, such as corporate taxes. The tax of Malaysia is transparent, the multinational corporate must be taxed 30% of the corporate income which is just the same as Malaysia companies Marketing directory, 2005) According to the tax incentive treaties, auto ( . ndustry may be eligible for pioneer status which is given by the way of an abatement of 70% of the profits for five years (ibid). The remaining 30% of the profits will be taxed at the prevailing corporate income tax rate. The profits abated are exempt from tax and will be available for distribution as tax-free dividends. In UK the resident corporate tax is the lowest in Europe, even the tax is zero for t he small companies in 2002(Lawandtax-news, 2010). According to the tax treaties, multinational corporate which set up, purchase or control the companies in UK can follow the resident tax (Navstar, 2009). In the ordinary course of events, foreign companies cannot follow the low corporate tax, but with regard to double taxation and the agreement between UK and China, Chinese multinational corporates in UK now pay the low tax (ibid). 2. 7 Exchange rate Stable trade policies are extremely important for both the economic welfare of the countries and the multilateral trading system. Unfortunately, the liberalization measures were adopted by many countries. As Dornbusch‘s 1976 analysis has pointed out that when the exchange rate is used to provide protection for domestic firms, it is through undervaluation. An undervalued 11 International Business Environment II exchange rate protects domestic firms from imports and gives domestic firms greater incentives to export. For example, the Balance of Payments Committee of the WTO has received 39 requests from member countries for derogations from their international obligations and for a temporary increase in temporary protection. Moreover, several developing countries, such as Malaysia, have recently increased tariffs in response to financial crises even though the higher rates remain below the rates these countries bounded in the WTO. Moreover the analysis said China has become a great auto exporter, as a result of the huge subsidies, an undervalued exchange rate and dirt-cheap credit (Swaminathan, 2009). 2. 8 Restrictions Restrictions refer to the taxes and limitations that host governments place on foreign products and services or on foreign firms themselves when they enter or leave the host economy. Because of the policy of protecting their national automobile industry, the import tax of automobile is relatively high in Malaysia. Since 2004, Malaysia began to reduce the automobile import tax: for the import components the tax is reduce from 25% to 10%, and for the whole automobile the import tax is drop from 130% to 30% for the companies outside of Southeast Asia (MEI, 2009). In 2010, according to the agreement of ASEAN, the automobile import tax will be zero to all the regions of ASEAN. UK is a member of EU, it followed the economic agreement of EU which sets no import or export tax between members of EU and they must charge the same tax when they have business with the third country (European competitiveness, 2009). 12 International Business Environment II Scoring Analysis of UK and Malaysia Country Score Econography Culture Legal System Income Profile Political Risk Tax Regime Exchange Rate Restrictions Total (10) (10) (20) (20) (10) (10) (10) (10) (100) 8 7 18 8 8 8 7 7 71 7 6 16 15 5 9 8 9 75 UK Malaysia 3. Institutions 3. 1 WTO The major objectives of WTO‘s roles are ? the creation of a common automobile market through the elimination of barriers to intra-Community trade; the maintenance and expansion of a competitive world automobile industry; the use of voluntary import restrictions to prevent cheap imports and to maintain competitiveness? European Commission, 2006). For example, in 2006, WTO announced the establishment of a panel to examine whether China’s tariffs on imported auto parts violate WTO trade rules, following a joint complaint made by the United States, the European Union and Canada, who accused China for its discriminatory charges on imported auto parts. After exami ning China‘s related regulations, WTO panel declared that China’s regulations are inconsistent with China’s WTO obligations. China has agreed to make the necessary regulatory changes by September 2009 (Herd, 2006). 13 International Business Environment II WTO facilitates Geely‘s international expansion since the elimination of trade barriers has cleared its path to world market and made it integrated to the world economy. In 2002, after China joined into WTO, 100 automobiles of Geely exported to Syria (Luo, 2005). 3. 2 EU EU functions as a rule-imposer. It sets strict requirements and institute rules and regulations to improve vehicle safety. Besides the vehicle crash tests executed by Euro NCAP (European New Car Assessment Program backed by European Commission), there are also some regulations set to protect the environment. First, in order to respond to the gradual aggravation of greenhouse effect, the European commission developed a mandatory emission standard to limit the emission of one major kind of greenhouse gas, CO2. The regulation set a fleet-average CO2 emission target for passenger cars, which is 120 g/km to be reached by 2015 (European Commission, 2010). The vehicle manufacturers must reach the CO2 emission target of 130g/km, with an additional reduction of 10 g/km to be provided by supplementary measures, such as the use of hydrogen fuel. A long-term target of 95 g/km to be reached by 2020 is also stablished by the regulation (ibid). This regulation will take effect in 2012. From 2012 onwards, vehicle manufacturers who do not meet this target will have to pay penalty for their excess emissions. According to DieselNet (2010), from 2012 to 2018, the penalties are â‚ ¬5 per vehicle for the first g/km of CO2; â‚ ¬15 for the second gram; â‚ ¬25 for the third gram; â‚ ¬95 from the four th gram onwards. From 2019, manufacturers will pay â‚ ¬95 for each g/km exceeding the target. Another congressional mandate imposed by European Commission requires tire pressure monitoring systems on all new cars in 2012. According to Europe‘s Information Society (2010), many road accidents resulting in fatalities and physical injuries are linked to tire defects. Furthermore, under-inflated tires can result in severely inefficient use of fuel and cause an extra two million tons of CO2 emitted into the atmosphere per year. So this mandate enhances vehicle safety and protects the environment. 14 International Business Environment II These regulations have incurred a rise in car prices since vehicle manufacturers are forced to increase price to offset the cost of upgrading. These regulations put Geely in an unfavorable position. Since Geely is better known for making low-tech and cheap cars, making eco-friendly cars is not included in the competencies of the company and huge RD spending is inevitable for nurturing this competence. They set a high bar for the competition and limit Geely‘s ability to expand market in Europe. 3. 3 ASEAN ASEAN – Association of South East Asia Nations is a geo-political and economic organization of 10 countries located in Southeast Asia. China and ASEAN are both newly-emerged, rapidly-developing auto markets. Cooperation in auto industry between China and ASEAN will bring a win-win situation for the two sides and make their cars more competitive in a global competition. For instance, according to Xinhua News Agency (2006), a report released by the Ministry of Commerce Indonesia has announced that compared to the expensive Japanese sedans, the China-made ones gradually gain popularity for more favourable price-performance ratio. ASEAN country also needs investment from Chinese carmakers to expand local employment and for more price-favourable cars, said a Germany auto expert at the China-ASEAN Expo, 2006. Consequently, in general, ASEAN opens its gate to Chinese car companies including Geely to achieve a win-win situation. 4. Assessment of Geely’s overall international expansion strategy Geely‘s current international strategy is to produce affordable automobile, so the market size and consume power of a foreign market are highly valued by Geely. Malaysia automobile market resembles China more than UK, in the aspects such as the people‘s income, the similar culture, and the similar geographical position, etc. As by now most cars have been exported to some developing countries like South-East Asia, Ukraine, Russia, and Mexico, Malaysia will be good choice. Meanwhile, although UK does not represent a neighboring or ? home‘ market, 15 International Business Environment II as markets in South-East Asia do, UK could be seen as an interesting market with a potential for higher margins, higher price levels and a more mature market for branding, technology, etc, as the UK‘s income per capita, and the automobile sales volume are higher than that of Malaysia. Considering the future international development, Geely should focus on UK. Therefore, at first, it is better for Geely to develop its ? producing automobile which most of people can buy‘ strategy in Malaysia, and when Geely is able to enter high-end automobile market, UK will be a better choice. In terms of multilateral institution, after evaluating the influence of international organizations, we suggest that Malaysia is a better choice for Chinese car companies to exploit new markets. Firstly, a win-win situation guarantees a favourably corporate relationship between Geely and ASEAN (Eichengreen, 2006). Secondly, there are various quality-related requirements and constraints in EU and probably NAFTA, which puts up a strong challenge for those Asian auto makers. Moreover, by far, there is no evidence to prove the acquisition of Manganese Bronze and Volvo have considerably increased Geely‘s sale in developed nations. Thus considering the opportunities and threats faced by Geely, it is recommended that the company emphasizes on developing nations‘ markets, rather than the developed markets. 5. Marketing analysis 5. 1 Legal system According to Alistair Darling‘s pre-budget report, UK will bring new opportunities for the low-carbon industries. Through the Innovation Investment Fund and the Carbon Trust’s Venture Capital scheme, UK will invest at least ? 160m in low carbon projects (Guardian, 2009). They will also invest ? 90m in the European Investment Bank’s new 2020 fund, which will put 6. 5 billion Euros of finance in green infrastructure projects. In this report, there are alterations to the climate change levy, company car tax, and fuel benefit charge (ibid). This is good news for Geely because now it dedicates itself to produce high-tech and eco-friendly automobile. In 16 International Business Environment II UK the amount of car tax depends on the price and the discharge amount for carbon, which is from 9% for electric motor car to 10%-35% for petrochemical car. UK also has a successful car scrappage scheme, which gives consumers a ? 2,000 discount off. If they scrap their old vehicle, it will help up to 125,000 families replace their inefficient boilers with new models (Julia, 2009). Through the government‘s support of low-carbon industry, Geely has more opportunities to innovate high-tech and eco-friendly automobile. Furthermore, because of the low tax and car scrappage scheme, customer is inclined to buy or change an electric motor car,. In 22nd March 2006, Malaysia published the new automobile policy (MEI, 2009). Since that day, the import taxes of CBU (Complete Built Unit) are reduced from 20% to 5% for the ASEAN members and 50% to 30% for other countries. The import taxes of CKD (Completely Knock Down) are 10%. In 28th October 2009, Mustafa Mohamed announced many new policies for auto industry which will give much more preferences and subsidies for the new energy automobile companies (ibid). . 2 Income profile It is known that the success of Geely relies mostly on keeping low cost and offering the affordable cars. For instance, Geely’s best-selling four-door sedan, the King Kong, has been sold 6127 in April 2010 and the retail price is between 47,800RMB – 58,800RMB (Jiang, 2010). Geely sold 329,014 passenger cars in 2009, making it is the third largest domestic car producer (Zhe ng, 2010). However, Geely’s winning formula is under pressure in china because Chinese consumers are becoming wealthier; the higher-end models will gradually be affordable for them. Meanwhile, brands such as the Chery QQ, Ford Fiesta, and Honda Civic are threatening Geely‘s current market position. Geeky‘s winning formula is also challenged at the oversea markets like UK and Malaysia. Date from HMRC (HM Revenue Customs) indicates that nearly 50% of the population in UK earns ? 16400 annually which is much higher than the middle class income of Malaysia. This group of population could be a dominant power in the automobile market in UK. It is not a wise choice to sell its inexpensive cars in UK considering that low price would not be 17 International Business Environment II attractive for these relatively rich citizens. The similar situation also happened in Malaysia which made Geely‘s low price cars less competitive. This is because that the predicted real GDP growth in 2010, 2011 and 2015 are 4. 7%, 5. 0% and 5. 0%, Malaysian people are becoming richer than before(IMF, 2010). Their increasing incomes will directly affect their car buying choice. People nowadays prefer the higher-end models and the market share of Geely‘s lower-end models are estimated to reduce gradually. 6. Geely’s reacts to the impact of the ECLIPTER First, since the middle of 2009, the sales of car exports decreased from 37940 in 2008 to 6297. Furthermore, although Geely exports to more than 50 countries, most of them are developing countries which are not so effective in the promotion of the brand image. In order to get rid of low-end image, Geely changed its strategy from ? produce automobile which most of people can buy‘ to ? do not produce cars which price is below 40000 Yuan‘ (Fang, 2009). Besides, Geely take over Volvo which also expressed its desire to promote the brand image. Geely‘s strategy changes starts in May 2007, which is focus on transforming its competitive advantage from price to technology. In 2007, Geely used three new motorcycle type—Yuan Jing, King Kong and Zi You Jian, which have relatively higher value added to substitute the Haoqing, Meiri and You Liou. For doing that, Geely scraped its old molds, jigs and production line which worth up to 8 billion Yuan. In 2008, the sales of these three new auto types grew 12% without discount marketing strategy (Geely annual report, 2009). Furthermore, in 2010, Geely will market 21 new auto types, and some of them were designed by Fabrizio Giugiaro, the Italy‘s famous auto manufacturer. Moreover, the new energy auto will also be produced in 2010, which will include Panda and DiHao (Wenqing, 2010). These new energy auto types have been showed in the Beijing car exhibition 2010 (Phoenix auto, 2010). In order to deal with these two factors, Geely also has a complementary strategy: cooperate or takeover other well-known international auto manufacturers. It will not only help Geely to promote its auto manufacture technology, but also improve its brand image. Geely has already cooperated with 18 International Business Environment II Britain‘s Manganese Bronze to produce luxurious brand-named taxi (China car Times, 2010) and assembled cars with Information Gateway Corp Sdn Bhd (IGC) in Malaysia, 2006 (Tan, 2006). 7. Leverage the multilateral institutions 7. 1 ASEAN One of the stunning news in 2005 was the political barriers Geely met in Malaysia, which was considered as the biggest challenge for its overseas expansion so far. Geely‘s President Li Shufu described Malaysia as ? an unexpected trap? because of Malaysia government‘s rejection on fulfilling the contract. After examining the ECLIPTER factors of Malaysia market, Li Shufu and his team regarded Malaysia as the first pillbox and cornerstone of its expansion to ASEAN countries. He believed the learning in Malaysia could be helpful. Therefore, in May 2005, Geely has made a joint contract with Malaysia IGC group for building CKD factory in Malaysia. However, Malaysia government denied the contract after a new document on automobile being published. According to the document, all cars made by foreign automobile manufacturers were prohibited to sell in Malaysia. Then the situation in Malaysia went against its expection of getting a huge sale. However, according to Geely officials, to some extent, ASEAN agreements have made Geely to reconsider the importance of Malaysia (Harwit). In South East Asia nations, there are some strict tariff-related regulations for automobile industry. Contrarily, tariff among ASEAN countries is in a minimum rate. According to an inner-ASEAN agreement, from 2003 to 2009, Indonesia, Thailand, Malaysia, Philippine, Singapore and Vietnam exempted auto import tariff for each other. From 2010, all ASEAN countries will implement zero auto import tariff for each other. At the same time, Indonesia, Thailand and some other ASEAN nations‘ demand of cars is increasing considerably (JAMA, 2008). Especially after an impressive increase in 2007, the car-sale in Indonesia becomes significantly dazzle. Therefore Geely 19 International Business Environment II planed to only manufacture cars in Malaysia and then export cars to other ASEAN countries, which seems like a forward-looking plan in a long-term development. Finally, Geely decided to move its Malaysia CKD manufacture center to Indonesia. However, its vision of leveraging ASEAN to pursue a sale performance in all ASEAN nations has not changed. 7. 2 EU In terms of EU regulations, since Geely has acquired 100% ownership of Volvo, the Sweden‘s company, Geely is no longer an outsider of European market. According to the EU Single market concept (European Commission, 2010), a free circulation of capital, labor, goods and services between EU members is granted. Geely now have got over tariff barriers and competes as an insider. . Implications and Recommendations One of the strategies of Geely is to promote new energy automobile, there are two advantages for this strategy: Firstly, Geely can get powerful support from government since the development of new energy is encouraged by the government. Secondly, since new energy automobile is environmental friendly goods, it not only reduces the carbon emissions, but also decreases the expenses o n routine maintenance (Bond newspaper, 2010). However, there are also drawbacks, such as the inadequate facilities. Acquiring other world famous bands is the other strategy of Geely, which facilitates the company‘s global expansion. For instance, Volvo is well-known by its safety, which could provide Geely with a competitive advantage on its brand trust. It also provides a valuable, more upscale user image. Therefore, through merger or acquisition of international well-known brands, Geely can get greater international fame and advanced technology, integrate into the world market and attract more consumers. However, certain risks should be considered when Geely acquires Volvo. The first risk is that the culture conflicts between two countries. It has been reported that one of the hindering factors is that the union of Volvo in Sweden disagrees the acquisition for their reduced 20 International Business Environment II welfare and unemployment (Gasgoo, 2009). The second risk is that the value of acquired equity. It has been said that Volvo‘s vaunted reputation for safety has been challenged by other manufacturers which can also provide automobiles with same safety standard. In this case Volvo‘s ? safe? advantage may not be as competitive as before. 9. Conclusion To sum up, this essay has analyzed the ECLIPTER factors of Geely‘s two overseas markets, Britain and Malaysia, and examined influence of the related multilateral institutions. According to this matrix analysis, legal system and income profile have the most important impact on the auto industry. For multilateral institutions, ASEAN and WTO generally promote the Geely‘s international expansion strategy, while EU regulations are less favored in its expansion. Considering both ECLIPTER factors and related multilateral institutions, it is suitable for Geely to enter developing nations to acquire market share at its initial development. But for long-term development, Geely need to pay attention to research and develop higher-end models. With the development of Geely Company and the overall auto industry, Geely‘s focus will shift from developing countries to developed countries. Currently, Geely‘s low price strategy is challenged by the legal system and income profile of developed countries. Therefore, Geely is increasing its efforts in releasing new model cars and tapping into developed countries through merger or acquisition. Geely intends to promote its brand image and enlarge its market share through these strategic moves, although it has to face the risk of culture conflicts and the uncertainty of acquisition value. 21 International Business Environment II 10. References: Azia, A. Z. (2004) Malaysia-Encouraging Saving in a Dynamic Economy [Online]. Available at: http://www. bis. org/review/r040115c. pdf [17 April 2010] Bond newspaper (2010) (There are many advantages of new energy automobile but it needs improve) [online]. Available at: [6 May 2010] China Car Times. 2010) London Taxi‘s should now be renamed Hangzhou Cabs. [Online] A vailable at: [11 April 2010] Daily News (2006) 10 ,80% (Geely will produce automobiles in Malaysia, 80% should not sell to other countries)[online]. Available at: [25 April 2010] DEPATMENT OF STATISTICS MALAYSIA Official Website (2009) Population [Online]. Available at: [12 April 2010] DieselNet (2010) Cars: Greenhouse Gas Emissions [online]. Available at: [15 Apri l 2010] DTI (2000) Byers Acts to Reduce Car Price [online]. Available at: [27 April 2010] 22 International Business Environment II Eichengreen, B. 2006) China, Asia, and the World Economy: The Implications of an Emerging Asian Core and Periphery China World Economy / 1 – 18, Vol. 14, No. 3, 2006 [Online]. Available at: [24 April 2010] European Commission (2010) A Single Market for goods [Online]. Available at:[ 20 April 2010] European Commission (2006) A Competitive Automotive Regulatory System for the 21st century [Online]. Available at:[ 20 April 2010] European competitiveness (2009) Tariff Barriers [online]. Available at: [21 April 2010] Europe‘s Information Society (2010) Tyre Pressure Monitoring System [online]. Available at : [21 April 2010] Fang, Wen (2009) Vs (The Difference Between BYD and Geely) [online]. Available at: [21 April 2010] Gasgoo. (2009) Volvo union meets Geely, no detail on financing. [Online] Available at: [11 April 2010] 23 International Business Environment II Geely (2009) Annual Report and Financial Statement [online]. Available at: [5 May 2010] Guardian (2009) Alistair Darling’s pre-budget report-full text [Online]. Available at: [20 April 2010] Harwit, E. (2006) Chinese Overseas Investment: Cases in the Automobile and Telecommunications Sectors [Online] Available at: [20 April 2010] Herd, J. (2006) Modern Global Automobile Industry [Online]. Available at: [21 April 2010] Highfill, D. , Baki,M. , Copus, S. , Green, M. , Smith,J. and Whineland. M (2004) Automotive Industry Analysis-GM, DaimlerChrysler, Toyota, Ford, Honda [online]. Available at: [28 April 2010] HMRC (2004) Rates and allowances – Income Tax [Online]. Available at: [17 April 2010] Hofstede (1997) Culture [Online]. Available at: [17 April 2010] Hofstede(2008) Wolrd map of Power Distance Index-Hofstede [Online]. Available at : [17 April 2010] Hofstede (2008), World Map of Uncertainty Avoidance – Hofstede [Online]. Available at : [17 April 2010] 24 International Business Environment II Ifeng (2010) (Analyzing Geely’s current position from the proportion change of ranking and sales) [Online] Available at: [12 April 2010] International Monetary Fund (2010) World Economic Outlook [Online] Available at: [11 April 2010] JAMA (2008) 1996-2007 ASEAN 5 Countries Sales Statistics [Online]. Available at: [24 April 2010] Julia, K. (2009) Scrappage Scheme Bosst Continues As New Car Sales Up 31% On Last Year [Online]. Available at: [20 April 2010] Lawandtax-news (2010) Corporate Taxation for Multinationals [online]. Available at: [21 April 2010] Lumpur, K. 2004) 2002 WORLD SUMMIT ON SUSTAINABLE DEVELOPMENT [Online]. Available at: [15 April 2010] Luo, J. (2005) The Growth of Independent Chinese Automotive Companies [online]. Available at: [15 April 2010] Malaysia statistics (2010) Gross Domestic Product [Online]. Available at: [15 April 2010] 25 International Business Environment II Marketing directory (2005) (the Summary of Investment Environment of Malaysia)[online]. Available at: [21 April 2010] MEI (2009) (the New Policy of Automobiles in Malaysia) [online]. Available at: [20th April 2010] Navstar (2009) the detail of the corporate tax in UK) [online]. Available at: [21 April 2010] Office for National Statistic (2009) National Projections UK population to exceed 65m by 2018 [Online]. Available at: [11 April 2010] Phoenix auto website (2010) ( the new energy car showed in Beijing car exhibition) [online]. Available at: [5 May 2010] Posser, D. (2008) UK saving rate sinks to 49-year low as growth falters[Online]. Available at : [17 April 2010] Society of Motor Manufacturers and Traders (2010) EU 2020 growth strategy emphasises significance of low carbon automotive [online]. Available at: http://www. eemsonline. co. uk/press_releases/08-03-10_3 [1 May 2010] Swaminathan S Anklesaria Alyar. TNN(2009) How India beat China in auto exports [online]. Available at [3 May 2010] 26 International Business Environment II Swee-Hock, S. (2007) The population of Peninsular Malaysia. [Online] Available at: [13 April 2010] TRANSPARENCY INTERNATIONAL (2009) Corruption Perceptions Index 2009 [Online]. Available at: [11 April 2010] UK statistics (2010) GDP Growth [Online]. Available at: [15 Apr 2010] Wenqing F. (2010) 21 Geely will market 21 new types of automobile, new energy car also will produce)[online]. Available at: [24 April 2010] World Steel Association (2009) WORLD STEEL IN FIGURES 2009 [Online]. Available at: [11 April 2010] World Bank (2008) Gross National Income Per Capita 2008,Atlas Method and PPP [Online]. Available at: [15 April 2010] Xinhua News Agency (2006) China Eyes ASEAN for Car Assembly, Export [Online] Available at: [18 April 2010] 27 Internation al Business Environment II 11. Appendix An interview with the Geely official Distinguished guest: Mr. Zhao Jie, Vice President of Geely Holding Group, In charge of Geely‘s international business. Time: 28 April 2010 Location: Mr. Zhao Jie‘s office Selected QA: Q: How does Geely react to the EU’s high standard of safety and emission? A: The high standard in Europe is indeed a big challenge for us late-movers. However, we have investigated a lot on the RD and have made some success. As our new motto cited, we will ? devote ourselves to produce the safest, most energy-saving and environmental-friendly cars in affordable prices?. In spite of the European standard, we will also investigate on those aspects. Besides, we have acquired Volvo, a company with best reputation on its safety and reliability. Volvo will bring us the experience and advanced technology in pursuing safety. Moreover, developing new energy is not only the trend of all car companies, but also all those energy-based industries. Under the support of our government, we are confident in making a breakthrough in this area. Q: Have you got any type or design which could achieve the standard? A: Yes we have. Most of the automotive types in our series-EC were produced based on the EU standard. Q: We know Geely acquired Manganese Bronze. How can you successfully acquire Volvo from Sweden and DSI from Australia? 28 International Business Environment II A: Firstly, I am grateful to the lead of our Party and the flourishing Chinese economy. China now attracts the whole world‘s attentions. As one of the best Chinese companies, Volvo has its own advantage. As we have emphasized, you could not acquire Volvo only by money. That‘s like a free marriage, not an obligatory acquisition. They have already accepted us. As a fast developing China-based company, we could give Volvo continuous capital support. Also, our promotion will make Volvo more famous in China. In terms of DSI, there are several parades of their employees due to the downsizing. The company is on the edge of bankrupt. People clap their hands to welcome us, because they see the hope. Besides, we have developed the technology of gearbox for about 6, 7 years, we are able to understand and accept the technology of DSI. Q: Will there be any problems caused by culture collision after the acquisition of them? A: I don‘t think it is a problem for us. Firstly, Volvo is an international company who will make decisions with a global vision. Although everybody loves their country, the asset of an international company is complex, especially after becoming a listed company. It depends on the structure of the asset. For instance, who do you think Toyota belongs to? The asset structure is global, in which Japanese capital accounts for only a small part. However, the culture of Toyota is still Japanese. We think the situation is similar to Volvo, whose culture will not be changed by us. Our relationship is more likely a brotherhood, rather than hierarchical relationship. What we need to do is communication, respecting and taking care of each other. Q: Will Geely transfer the entire Volvo product line to China? A: Automobile needs indigenous producing, RD and sale, and more importantly, the maximum indigenous complement. So the current factories in Sweden and Belgian will be remained permanently. Q: What’s your opinion on the Malaysia event, I mean the broken of your corporation? 29 International Business Environment II A: Based on the evaluation of all aspects, including the demand, competition, income and wage level, even the political aspect itself; we believed Malaysia was our best choice to enter ASEAN. Malaysia had already accepted our contract; we even signed the contract witnessed by both governments‘ staff. You know Wu Bangguo, chairman of National People’s Congress and Malaysia‘s head of Parliament have attended the ceremony. I don‘t know why and how they allowed themselves to make such a decision. They denied the unilateral contract which goes against WTO regulation. I don‘t want to talk about it anymore. Q: The Geely Panda is transformed to â€Å"Tobe† and being sold in Taiwan, it is said that the real purpose is the ASEAN markets. Can you explain it a little bit? A: Sure. Firstly, Taiwan has an advanced system in sales and service. We could improve our service, especially after-sale service. Secondly, Yulon Motor has abundant experience in overseas sales. This ? Tobe? has already being sold in Vietnam, and will be sold in Malaysia, Indonesia and Philippine. Q: What’s your future plan? A: Except ASEAN, we have run our business well in many markets. For instance, AIS Company from Ukraine, our best agency, sold out 8000 units for us in Ukraine and made ? Exterior? the most famous autotype in Ukraine. Considering the geographic advantage that Ukraine possesses, we will build CKD factory there, in order to expand to Russia and Eastern Europe. We also have signed a contract with a Mexico partner to build a 130-million-dollar all-around industrial centre. Our plan is, by 2015, build 15 produce centers abroad, and sell 2 million cars, in which 1. 3 million will be sold in overseas markets. Contacts: Address: Suite 15E, West Tower, 668 East Beijing Rd, Shanghai, 200001China Tel: 86-21-53086111 53086126 Fax:86-21-53085062E-mail:carlos@geelymetop. com 30 International Business Environment II How to cite Geely Automobile, Papers

How does Browning bring vividly to life the men and their relationships in “Porphyria’s Lover” and “My Last Duchess” Essay Example For Students

How does Browning bring vividly to life the men and their relationships in â€Å"Porphyria’s Lover† and â€Å"My Last Duchess†? Essay To be able to create a perceptibly vivid character in literature can be considered to be one of the greatest challenges in the literary world, and doing so to a level where the reader can truly empathise with the created character is a greater feat still. In this matter Browning truly was a literary genius as in less than sixty lines he manages to create two male protagonists that are living and breathing, ready to leap off the page. The different ways in which he achieves this are the structure of the entire poem, vocabulary and word choice, use of literary techniques and their differences in dealing with essentially the same subject. The poem â€Å"Porphyria’s Lover,† which first appeared in 1836, is considered to be one of Browning’s most shocking monologues. The action of â€Å"Porphyria’s Lover† unfolds through the recounting of the events of one night, culminating in the murder of Porphyria, by the speaker himself. The structure of the poem could be described as one of twelve stanzas with an ababb rhyme structure, though it is most often printed as a block poem. The majority of the lines contain four iambic feet, though a few are pentasyllabic. The unusual rhyming structure used seems to be the first hint of the speaker’s mental discord, as it is his narrating voice that we are following. A factor that further heightens this, as yet hypothesis, about the narrator’s instability is the enjambment that is used throughout the poem. It reveals his unaffected, lackadaisical nature that relates to something that one truly should not be indifferent to. â€Å" †¦and all her hair In one long yellow string I wound Three times her little throat around, And strangled her.† This shows how unnaturally nonchalant and disorderly his thought processes are, his morbid un-emotionality piques our interest and causes the character to seem truly vivid. This element emphasises the tone and seems to make the understated nature even more sociopathic. Another factor is the vocabulary Robert Browning uses. Most of the words are monosyllabic creating a simple mood that is not broken by the polysyllabic that are incorporated in a quiet and unassuming manner; they do not break the tense tranquillity of the piece. â€Å"I am quite sure she felt no pain. As a shut bud that holds a bee, I warily oped her lids: again Laughed the blue eyes without a stain.† Here we see the simplistic almost naà ¯ve way in which the speech is narrated. Much of the force of the narrative lies in its practically innocent clarity and in the corresponding quiet, matter-of-fact tone of voice that seems to heighten the severity of the actual actions. The line â€Å"No pain felt she, I am quite sure she felt no pain† accentuates the horror of the going on by its seemingly childish-like affirmations. The detached, emotionless account with the cold and distant metaphor creates a chilling effect, by which the character of the speaker is made more vivid. Also, Browning uses literary techniques to truly bring the character to life. One such example is the pathetic fallacy that used to not only set the mood for the entire poem, but also the mind set and mental state of the actual speaker. â€Å"The rain set early in tonight, The sullen wind was soon awake, It tore the elm-tops down for spite, And did its worst to vex the lake: I listened with heart fit to break.† Immediately we are introduced into a setting where the weather is dark and gloomy. The use of personification instantly hints at the fact that it is not only the weather that is being described. Words such as â€Å"awake†, â€Å"tore†, â€Å"spite† and â€Å"vex† imply a humanness that corresponds with the main protagonist. The slight alliteration that is used â€Å"sullen-soon†, â€Å"tore the elm-tops†, â€Å"worst-vex† further accentuates the fact. He is listening, listening intently and he feels empathy for the weather. He can sympathise, he is feeling the same things. We are shown his inner turmoil, his nebulousness and his destructiveness. The opening lines are a sort of foreshadowing for the rest of the poem and the true character of the narrator. Another way in which Browning brings vividly to life the male protagonist is the slow revelation of true character, the building up of suspense, tension followed by the terrible twist. At first we are simply aware of the hints that are conveyed through the weather, the suspicion of something being amiss. Then we come to the description of Porphyria, through which we learn a lot about the speaker’s character. We know that he is watching her intently by the use of the anaphora, he describes her every motion. Autism EssayThe Duke’s dramatic monologue is full of dramatizations, parodies, flattery and direct confrontations. It is obvious that he is a man of higher society. This is not only implied by his status and vocabulary, but also to the way he acts around the auditor. He tries to hide his true intentions, he makes the envoy feel intimate with him, he even flatters him to an extent. â€Å"Her wits to yours, forsooth, and made excuse,† We can clearly see the mask that he puts on, trying to never reveal what is truly going on underneath but when he starts discussing his former wife’s immoderate pleasure that absolutely everything, the perfectly prepared mask begins to slip. â€Å"Was courtesy, she thought, and cause enough For calling up that spot of joy. She had A heart—how shall I say?—too soon made glad, Too easily impressed; she liked whate’er She looked on, and her looks went everywhere.† We begin to see the real vile anger that is being covered up by the courtliness. The â€Å"she thought† suggests his disregard for her opinion, his belief that she was wrong. There seems to have been a great age difference between the Duke and the Duchess that caused his inferior view of her. Also, we begin to sense his disapproval of her behaviour. He sees her as being too free with her affections, a slight bit too shallow, too easily impressed. His use of the phrase â€Å"how shall I say?† shows that he is pretending to not be intentionally rude, he is simply stating the truth and already in as mild terms as possible. Here we begin to see his insincerity and manipulativeness. In the lines after that we witness an escalation of his anger. â€Å"The bough of cherries some officious fool Broke in the orchard for her, the white mule† Here we feel a quickening of pace and a distinctness of rhyme and rhythm. The Duke’s use of fricative sounds such as â€Å"officious fool† betray his genuine irritation. We are also made aware of his impossible superiority and his preference of someone else doing his dirty work for him. â€Å"—E’en then would be some stooping; and I choose Never to stoop. Oh sir, she smiled, no doubt, Whene’er I passed her; but who passed without Much the same smile? This grew; I gave commands; Then all smiles stopped together† For him it is of the utmost importance to never let himself sink below what he considers to be his level. And then we reach the great revelation. â€Å"I gave commands; / Then all smile stopped together.† It is in this line that we find out that the Duke actually did have his Duchess killed, and what for? What he considered to be a simple mindedness and excessive amiability. It also seems as though a matter of life and death is a simple matter for him. He did not view the Duchess as a human being, she was just one more of his precious possessions that didn’t quiet correspond with his expectations, and so he had her removed. We can also see his need for complete control over a situation. He wasn’t able to conform her to his standards so he did it in a slightly more radical way, by eliminating her. In conclusion, there are many ways in which Browning vividly brings to life the men and their relationships in both â€Å"Porphyria’s Lover† and â€Å"My Last Duchess†. He does so through structure, revealing their states of mind, through vocabulary, revealing their tone and background, and through slow revelation of character, that builds up and up until all their efforts at concealment are swiped away and all that is left is the bare truth. The last one is what I believe to be the most important factor as it is what interests the leader most. First we get an almost accidental glimpse, then it becomes more and more clear until we have the feeling that we actually understand those characters. They are living people, made of bones and flesh, just as we are and they have opinions and faults and sometimes even virtues and that is what truly makes those characters so vivid, their humanity.

Service Strategies Food and Hospitality Service

Question: Discuss about theService Strategies for Food and Hospitality Service. Answer: Introduction: The One Tree Grill can be identified as one of the eminent and highly ranked restaurants of Auckland. It is a service providing organization that is specializing in the food and hospitality service. It is operating since 1996, in the hospitality sector as an up market, suburban bistro (Best Auckland Restaurants | Restaurants Auckland, 2016). As per the organization website, the restaurant offers modern European and New Zealand cuisine along with the best quality wines. The point of differentiation of the organization can be identified the customized service pattern, the purpose built dining facility, convenience of tailor based environment and the amalgamation of down to earth dining with high-end facilities like car parking, supreme quality food and wine and many others (Best Auckland Restaurants | Restaurants Auckland, 2016). The company is continuously trying to uphold its brand name and make it unique by introducing facilities like providing flowers for birthdays and anniversaries, personalized decoration facility in the event of birthday celebration and out catering (from finger food to full service dining). Moreover, as mentioned in the website of the restaurant, it provides the facility of vouchers (Best Auckland Restaurants | Restaurants Auckland, 2016). It may not be much a unique idea, but what makes it special is the facility of personalization of the voucher. The prime competitors of the organization can be identified as The French Caf, Aria Restaurant Bar, Kazuya Restaurant and many others (Petrie, 2013). These restaurants are closely situated to the selected organization. Moreover, these restaurants have competitive rating with the One Tree Grill, which is competitive threat to the organization. However, in the context of competition, One Tree Grill has a competitive advantage because of its location. Where the remaining organizations are located in the Wellesley street in close distances, One Tree Grill is operating in relatively hustle free area which is making it preferable to the potential customers. To provide the best quality service to the customers the organization has the facility of delightful ambience, tasty foods, useful technology, and last but not the least, professional and proficient employees. The organization has experienced and innovative chefs and knowledgeable and credible supporting staffs. From the confirmation of the booking, selecting the customized menu to receiving and providing service to the customers is done with honesty and great precision. The ratings of the company in various credible rating cite can be regarded as a proof of this claim. This report is dedicated to explore the service pattern and the strategies that the organization is maintaining to provide the best possible service quality to the customers. With this report, the author has identified how the organization is putting its effort to make the brand unique and earn loyal customers. Rationale for Report: For uplifting the service standard of an industry, the companies need to identify the expectations of the potential customers. Moreover, to increase the profit count and uphold the brand name it is necessary for the organizations to detect the gap within the service. It helps them in identifying the areas those are needed to be improved and those are needed to be reserved. Hence, with the help of this report, the selected organization will be able to identify the strengths and weaknesses involved in its operation and other aspiring companies will be able to identify the must-have strategies to be successful in the hospitality industry. Here, in the brief span of the following report, the author has tried to explore the service pattern and the strategies used by One Tree Grill to achieve the supreme level of customer satisfaction. The author discussed the whole report in some sub parts for obtaining better precision. Here, in the introduction, the author has provided an overview about the company and its service offerings. He has also discussed the points of differentiation, which are directing the customers to choose this restaurant over its close competitors. The author has also mentioned the competitors, how they are challenging the selected organization. Then the author has provided a discussion over the service pattern with a GAP model and the potential faults and how those can be removed. He/she has also provided a discussion over the usage of customization and standardization within the organization. Then he/she has mentioned the hard and soft standards and the role of customers and the staffs in the service encounter and concluded the report with an over of the company. Service Standards: It is important for the organizations to identify the customer expectation to best serve them. As opined by Mok et al., (2013) the lack of knowledge and failing to provide the expected quality service creates gap in the service pattern and quality. A Parasuraman, Valarie Zeithaml and LL Berry first proposed the idea of GAP model of service quality in the year of 1985 in the journal of marketing (Mudie Pirrie, 2012). As mentioned by Terzakis et al., (2012) the gap analysis assists a service providing organization to make their customers more satisfied with their service and collect more loyal customer than before. As discussed by Mudie Pirrie, (2012) the GAP model talks about five different gaps within the service structure: customer gap, provider gap (1), provider gap (2), provider gap (3), and provider gap (4). Here, in the selected case, it can be noted that the organization is doing a great job in bridging the gaps of service quality. By learning the customers expectation, establishing right service quality and ensuring commitment to the promise, the organization is trying to bridging the gap. However, as mentioned by Wilson et al., (2012) the provider gap (1) occurs when the organization is not aware of the customers needs. To eradicate this issue the organization tries communicating to the customers through every possible communication channels. One Tree Grill encourages the potential customers to make the employees known about their preferences via online sources (Best Auckland Restaurants | Restaurants Auckland, 2016). It helps them in bridging the gap of lack of knowledge of the customers choice. Figure 1: GAP model for One Tree Grill (Source: Best Auckland Restaurants | Restaurants Auckland, 2016) In the context of provider gap (2), to avoid this issue, One Tree Grill offers the customers to set or customize their menus according to their choices. By incorporating the customer defined service standard, One Tree Grill is successfully managing the issue that involves the provider gap (2), within its service offerings. If an examination on the customer reviews or ratings in various credible sources about One Tree Grill can be done, it can be noticed that the organization is also successfully bridging the provider gap (3) with the help of its service structure. As mentioned by Van der et al., (2015) it is important for the service providing organizations to ensure the best quality service expected by the customers. Here, One Tree Grill is trying to provide the same with the help of its proficient employees, technologically upgraded website and supply chain management (Best Auckland Restaurants | Restaurants Auckland, 2016). As discussed by Sisson Adams, (2013) the gap in the external communication i.e. the claim of service quality in the advertisements and the actual service offerings can be occurred due to lack of horizontal communication, overpromising, ineffective management of the customer expectation and lack of integration of marketing communication. Here, the organization tries fulfilling the promises by incorporating the strategy of providing iPad menu to provide extra visual layer to your dining by feeding your eyes first (Best Auckland Restaurants | Restaurants Auckland, 2016). It makes the customers considerably sure about the level of conformation to the advertisement by One Tree Grill in reality. Last but most importantly, the customers expect an excellent dining experience, control over the offerings, good ambience, less time-consumption and good service from the employees. The organization is trying to provide all these. By using a technologically updated by user-friendly website, employing proficient human resource and maintaining genuine external communication, the organization is successfully bridging gap between customer expectation and organizational service. However, it is almost impossible to eradicate the gap completely. The potential faults that the organization may suffer are the lack of variety in the food offerings, the price issue. Here, by utilizing the standardization process, the organization can eliminate the issue with price concern. Moreover, by including more varied options in the food offerings the customization can be increased and customer satisfaction can be achieved. However, One Tree Grill has utilized the strategy of standardization and customization simultaneously to strategically manage the organizational offering and customer service. However, the current service pattern has a sheer inclination towards the strategy of customization. As mentioned by Kesavan et al., (2015) the service providing organizations need to focus on the differences of choices among the customers. By concentrating on this idea, One Tree Grill has introduced the strategy of creating own menu by the customers. By following the strategy of customization of the service according to the customers choice One Tree Grill has successfully bridged the customer gap. Customization has helped them to establish better communication with the customers and know about their preferences. Moreover, with varied choice of areas, purposed built booking pattern and kids menu the service structure has provided the brand a label of customer-oriented organization (Best Auckland Restaurants | Restaurants Auckland, 2016). However, in the closed choice option in the European and New Zealand cuisine the organization is following the strategy of standardization. Soft and Hard Standards: The idea of standardization is of service largely customer driven. The aim of One Tree Grill is to provide hundred percent complete customer satisfactions. In order to achieve it the organization is relying on the quality, service and value. The organization believes that by providing maximum satisfaction it will be able to create the best brand vale. The Hard Standards: Pre-Booking: To best serve the customers and reduce the in line time, the organization has opted for providing the pre-booking facility to the customers. It calls for information from the customers and confirm the table number and time according to the list of guests (Best Auckland Restaurants | Restaurants Auckland, 2016). It helps them in reducing the waiting time for the customers and providing the best quality service to them. Customized Menu: The organization has opted for the facility of customization in the menu to eliminate the possibility of errors in the service of food and reducing wastage. With the introduction of arrangement of food and wine according to the customers choice, the organization obtains less production cost too. Moreover, by offering separate menu for children, the organization avoids the quality issues in the menu (Best Auckland Restaurants | Restaurants Auckland, 2016). Use of Protocol and Facility of Dining voucher: By using, the protocol of first booking and followed service the organization tries to minimize the count of transaction time with the customers. Moreover, it also helps the organization to reduce the possibility of errors in the operation, as the number of customers is pre-set. On the other hand, by using the facility of dining voucher, the organization tries to increase the number of back orders, repeated customers and recommended customers from an old one. Soft Standards: As mentioned by Donovan Samler, (2012) the soft standards are typically immeasurable. It depends on the customers perception and experience of the service provided by the organization. Hospitality: As opined by Mok et al., (2013) providing hospitality is prerequisites for restaurants hoping to top the lists of most favorable brands. To provide best hospitality One Tree Grill has employed helpful, friendly, knowledgeable personnel to approach the customers (Best Auckland Restaurants | Restaurants Auckland, 2016). From parking of the car to the bill payment, the employees maintain professional but heartily communication and assistance. Convenience: To provide the best possible convenience to the customers, the restaurant offers Purpose built dining facility, tailored environment and personalized decoration. It provides the most convenient environment to enjoy their time and any memorable celebration. Moreover, with online service regarding booking, menu selection and customization the customers get the highest convenience in the dining experience (Best Auckland Restaurants | Restaurants Auckland, 2016). Credibility: To maintain the credibility claimed via advertisement, the organization uses best quality ingredient to provide best quality food, ipad menu for visual knowledge of the service and review option available in the website (Best Auckland Restaurants | Restaurants Auckland, 2016). All these make One Tree Grill a credible restaurant in the town. Customers and Staff: Role of Employees: As mentioned by Markey Knudsen, (2014) the high end or the upscale hospitality service offerings need a trained and experienced stuff. As mentioned in the website of the selected restaurant, the organization has skilled and experienced employees, who are motivated and dedicated to provide the best possible customer service ranging from the food to dining experience. As opined by Chon, (2013) in the hospitality sector service encounter is vivid than any industry. Hence, the organization looks for fresh talents who love the functionary of this industry, and motivated enough to serve the guests with smile. Moreover, as the organization has an online process of service, the employees are well aware of the handling of computers and online activities (Best Auckland Restaurants | Restaurants Auckland, 2016). As discussed by Petrie, (2013) in the hospitality sector, the employees need to be fair and the communication skill of the working force of an organization is needed to be of the best quality. Here, in this selected restaurant the employees are committed to provide the best interpersonal experience coupled with the best communication pattern to the customers. As mentioned by Mudie Pirrie, (2012) it provides any hospitality organization the best level of service encounter to the customer. From receiving the customers, addressing them, serving the foods and providing necessary assistance, the employees play major role in the service encounter. Role of Customers: As mentioned by Donovan Samler, (2012) customers are the key of service encounter. Here, with the customization of the service the customers hold a great range of control over the service encounter. As per the company website, the employees are always there to alter the service pattern according to the customers choice. Moreover, as per the company website, the organization offers a wide range of choices in the food offerings. As mentioned by Padilla-Melndez Garrido-Moreno, (2014) control or the sense of having choice provides the customer best service encounter experience. Being a service (hospitality) providing organization, One Tree Grill greatly values the customers and they have designed the service pattern to bridge the gap between the customer expectation and the service offering of the organization. As mentioned in the organization website, in order to provide the control to the customers in the service encounter, the restaurant has the facility of customizing the menus and the added conveniences in the service pattern (Best Auckland Restaurants | Restaurants Auckland, 2016). Conclusion: Hence, from the above discussion it can be concluded that One Tree Grill is successfully serving the customers and earning satisfaction and loyalty by tactfully bridging the gap between customer expectation and opting for customization in the service pattern. It has provided the organization the opportunity to best serve the customers. Moreover the balance of standardization and customization is being helpful for the management of the organization to operate the restaurant with great precision. The organization has employed strategically maintained service policies like (purpose built area, tailored environment and ipad menu) to match the expectation level of the customers. Last but not the least the hard and soft standers arte helping the organization to meet the claimed service patter and mainlining a high brand value in the market. References: Best Auckland Restaurants | Restaurants Auckland. (2016). Onetreegrill.co.nz. Retrieved 25 September 2016, from https://www.onetreegrill.co.nz/ Chon, K. S. (2013).Tourism in Southeast Asia: A new direction. Routledge. Donovan, P., Samler, T. (2012).Delighting Customers: How to build a customer-driven organization. Springer Science Business Media. Kesavan, R., Panitz, E., Rao, C. P. (2015). Standardization Versus Customizing Services Across Global Markets. InProceedings of the 1995 Academy of Marketing Science (AMS) Annual Conference(pp. 125-125). Springer International Publishing. Markey, R., Knudsen, H. (2014). Employee participation and quality of work environment: Denmark and New Zealand.International Journal of Comparative Labour Law and Industrial Relations,30(1), 105-126. Mok, C., Sparks, B., Kadampully, J. (2013).Service quality management in hospitality, tourism, and leisure. Routledge. Mudie, P., Pirrie, A. (2012).Services marketing management. Routledge. Padilla-Melndez, A., Garrido-Moreno, A. (2014). Customer relationship management in hotels: Examining critical success factors.Current Issues in Tourism,17(5), 387-396. Padilla-Melndez, A., Garrido-Moreno, A. (2014). Customer relationship management in hotels: Examining critical success factors.Current Issues in Tourism,17(5), 387-396. Petrie, H. (2013).Chiefs of industry: Maori tribal enterprise in early colonial New Zealand. Auckland University Press. Qizhang, L., Goh, M. (2015). Standardization and Customization. InTA-Q-BIN(pp. 149-165). Springer Singapore. Sisson, L. G., Adams, A. R. (2013). Essential hospitality management competencies: The importance of soft skills.Journal of Hospitality Tourism Education,25(3), 131-145. Terzakis, D., Zisis, P. V., Garefalakis, A. E., Arvanitis, S. E. (2012). Translating the service quality gaps into strategy formulation. An experimental case study of a greek academic department.European Research Studies,15(1), 99. Van der Wagen, L., Goonetilleke, A. (2015).Hospitality Management, Strategy and Operations. Pearson Higher Education AU. Wilson, A., Zeithaml, V. A., Bitner, M. J., Gremler, D. D. (2012).Services marketing: Integrating customer focus across the firm. McGraw Hill.

Sony Aibo Case Study free essay sample

The new AIBO came with new software options as well. After adding wireless LAN technology, Sony has unveiled its new â€Å"entertainment architecture†, dubbed OPEN-R, which provided third-party developers with the ability to create any number of software applications as well as hardware modules. Though priced at whopping $2,500, $1,500 the second generation, Sony’s profit margin on the AIBO was close to zero. It is the software applications and hardware modules developed by Sony and third-party developers that makes money for the company. AIBO has created such a stir that only two products had in the history of Sony: the original Walkman and the Playstation game console, far exceeding the developers’ expectations. It is such a success in Japan; the American market is not that hot. Par of the reasons were the culture differences between these two countries. In Japan, many people live in small apartments where real pets are not allowed. And Japan has a large elderly population, to whom a companion without any inconvenience is perfect. We will write a custom essay sample on Sony Aibo Case Study or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Besides, robots in Japanese culture are heroes and Japanese are so fascinated about high-technology while to older Americans, too lifelike technology is dangerous and threatening. Apart from the culture elements, most customers were confused of what Sony was selling. The confusion was compounded by the release of a number of low-end knock-offs. The performance of five years’, six prototypes’, and millions of yen’s outcome, AIBO, is so obviously superior to those cheap imitations, it is difficult to consider these knock-offs â€Å"competition†. At the other end of the competitive spectrum are robots that can â€Å"do something† perform â€Å"serious† household tasks. Admitting that these types of â€Å"functional† robots were much easier for Americans to understand, Sony has provided new software applications so that AIBOs can read emails and pre-selected websites and owners can remotely control their AIBOs’ movements. With more and more software applications and hardware modules being built on the base of OPEN-R technology, the possibilities are really limitless. As to broaden the American market, I think several questions should be considered before making the decision of whether Sony should begin mass advertising. What is the popularity of AIBO in America? What are the main concerns that stop Americans to reach into their pocket to pay for an AIBO? Standing in the Americans’ shoes, what do they want from a robot dog? Will sales of AIBO be stimulated by the mass advertising? Is the return going to be enough to cover the cost of mass advertising? Which medium might be the best way to touch the audiences? Further analysis of American market and culture should be done before making the decision. Since Sony has created AIBO Town, a magazine for AIBO devotees, and Cartoon industry is very mature in Japan, AIBO cartoon, AIBO comic books, AIBO video games and a series of AIBO related products can create infatuation with the robotic dogs, and the popularization of robotic dogs, vice versa, will promote the sales of the derivatives. The possibilities of AIBO are limitless. With more and more applications developed, AIBO can be a functional companion. For instance, AIBO could be used to guide blind people, the sensor can get information of the owner’s health condition when he/she touches an AIBO’s head, AIBO can play music, the owner can monitor his/her house when traveling, AIBO can work as a projector, etc. The price of the AIBO can not be much lower than the cost of manufacturing cost, or the margin profit. As AIBOs are equipped with more and more functions, people have a clearer understanding of what Sony is selling and are more willing to pay for them.

France Vs England During 17th century essays

France Vs England During 17th century essays During the 17th century, two very different types of governments developed in Europe. In France, Louis XIV established an Absolutist State, while in England, Elizabeth I followed a Parliamentary government. Even though, Louis XIV and Elizabeth I saw a brilliant flourishing in their kingdoms, only one of them had the power to rule successfully. In France, Louis XIV ruled by Divine Right and had the absolute control of his kingdom during his long reign. He took several steps to assure his authority above everyone in France. First, he only allowed the nobles who supported him to retain their titles. Second, he revoked Edict of Nantes that forced the Hugnenots (French Protestants) to convert to Catholicism or die. Then, he started his move toward building his splendid palace, which known as the Versailles (located outside Paris). He needed a finance minister, so he hired Colbert to strengthen the economy and trade of France. Louis XIV was an extremely authoritive king, but people called him the Sun King for they witnessed how France was a place of art and glory. In England, Elizabeth I followed a Parliamentary government, which allowed her to rule her people, and in the time, satisfy Parliament with her kingdom policies. Elizabeth I aimed for peace and security to England, which was why she didnt allow any religious strives to arise in her it. Therefore, her first step was to promote Protestantism within England. Then, she chose excellent advisors and she expanded the English Navy which stunned the world of its defeat to the Spanish Armada. Elizabeth I never got married and was wedded to England, that was why people called her the Virgin Queen. France and England had excellent rulers, however, England was ruled successfully, without any economical or political problems. Even though Louis XIV ruled with absolute control, he still wasnt completely wise in the decisions he took toward the H ...

Enterprise Applications and Technology Coursework

Enterprise Applications and Technology - Coursework Example The end-user involvement reduces resistance to the implementation of the program. The users of such systems, for instance, nurses and pharmacists will tend to resist the implementation of the information system in case it serves other purposes different from quality enhancement. With their due involvement, there is ease of implementation of such programs. Moreover, when going through the transition method, the user learn how to use the information system and its real essence of application. Through such experiences, the end user can adapt well and quickly to the newly implemented information system in the healthcare set up (Rahimi, Vimarlund & Timpka, 2009). The end-users can be involved in the implantation of the healthcare management information system through the gradual introduction of the end-user to the information system during the transition. The end users are taught on the how to utilize fully the new system and are allowed to raise any concern related to the system (Rahimi, Vimarlund & Timpka,

Film Les Miserables and Masculinity Essay Example | Topics and Well Written Essays - 2000 words

Film Les Miserables and Masculinity - Essay Example Therefore, this paper is not a film review, but a technical research paper. It is however, not a full thesis or complete research study, but general thoughts on masculinity with a general aim of understanding it better. The paper uses scholarly ideas or theories and relates these to the selected movie in order to draw new insights on masculinity. The chosen theme or recurring working idea for this paper is the understanding and appreciation of masculinity. This effort to understand is made through an analysis of previous ideas on masculinity drawn from papers or researches of scholars on the issue of gender and masculinity. Meanwhile, appreciation is derived through a chosen visual presentation or a film from which a more graphic representation of ideas on masculinity can be derived. The film chosen for this paper, the movie Les Miserables is a Golden Globe Award winner for Best Picture in Hollywood this December 2012. The significance of this paper can easily be seen from the important social developments starting the late twentieth century, more particularly the 1960s and 1970s. During these years, feminism and the gay movements started to change the outlook of societies towards gender and sexuality (Peoples 9). Since then, traditional beliefs and biases on masculinity and femininity started to erode. This very well shows that gender is not a static, but rather a dynamic reality. This dynamism behind gender has been especially portrayed, if not exploited by the powerful media of communications today. In turn, mass media have served to hasten the dynamism of change in human sexuality and gender. Thus during our own times, dramatic social and cultural changes have introduced the rather unexpected recognition of gay rights in the U.S. military, legalization of gay marriages in some countries, surgical male-to-female sex changes in modern medicine, and other social and cultural alterations or reform s. The need to understand issues on masculinity is therefore important, as the dynamism of gender and manhood continues to escalate until our day. And as shall be shown later, the issues relating to masculinity may have created a global impact in which even the security and sustainability of democratic states and the world may be at stake. This shall be discussed later, but for more clarity, the following questions are proposed as the main problems in this paper: 1. What is the appropriate understanding of masculinity? 2. What are the major concepts of masculinity that relate to its dynamic nature? 3. How does the movie Les Miserables portray the major concepts of masculinity? 4. What lessons can be drawn from the above conceptual and visual analysis of masculinity? Studies on gender and manhood To understand masculinity, there is a need to analyze ideas or theories introduced by scholars or researchers on this issue. This is an appropriate approach since our modern societies are to day knowledge-based societies. Scientific studies have become the lever to awaken awareness, impart understanding, and formulate theories on social issues. This paper has therefore sought concepts expounded by scientific theorists on gender and manhood. From these theories, an appropriate understanding of masculinity can be derived. In this regard, the study made by Christopher T. Kilmartin deserves consideration. In his book The Masculine Self, Kilmartin clarifies the concept of masculinity by differentiating between sex and gender (14). For him, sex is a biological frame of reference to the male or female as this relates to genes, hormones, genetalia, and other physical aspects of the human body. On the other hand, gender is a broader frame of reference