International Legal and Ethical Issues in Business DB Week 2 Essay

International Legal and Ethical Issues in Business DB Week 2 - Essay Example ome citizens to make purchases they are not capable to repay; poor understanding of financial accountability or shopping obligation is frequently the core of reckless spending. Eventually, these operating expenses can shoot up to the position where the arrears are too much for an individual to pay back (Elias, Renauer, & Leonard, 2011). Losing jobs, a mandatory decline in working hours or lesser venture incomes can cause major financial strain on a person. After their investments are exhausted, individuals may find they require filing bankruptcy when they are not capable to counterbalance their decline in earnings with new jobs or substitute earnings opportunities. Foreclosures of mortgage crop up when a person neglects his or her disbursement plan and financial establishment which embraces the mortgage come to a decision to take back the home. For the duration of this type of bankruptcy process, the sum of money in debts may be bulged into a new reimbursement plan that allows a person to stay in his home (Elias, Renauer, & Leonard, 2011). When individuals proclaim bankruptcy, they can be vindicated from most types of debts at the cost of harshly destructing their credit score. Given that a credit score is a figure that is inevitable to replicate the risk a particular person who borrows presents according to his tendency to defaulting, bankruptcy is one of the most horrible possible dealings to have on a person’s credit

Organizational Governance Analysis Essay Example | Topics and Well Written Essays - 2000 words

Organizational Governance Analysis - Essay Example At departmental levels, decisions are mandatory and all departments need to make decisions which are oriented to the vision, mission and general objectives of the organization. The governance of an organization bears on organizational culture which may be construed to refer to attitudes, values and beliefs which are shared by the people constituting a particular organization. Alternatively, organizational culture may be seen to refer to both the norms, principles and standards that guide individual behavior in an organization thereby controlling the way individuals and groups of people within the organization interact with one another and with other stakeholders that are found out of the active running of the organization (Hill and Jones, 2001). The governing body not only gives direction to organization through decision making but also initiate a permanent organizational culture (Huse, 2009). This paper seeks to highlight the general concept of organizational governance paying empha sis to the good and bad organizational governance practices. This is achieved through an analysis of an organization thereby giving its strengths and weaknesses as far as governance is concerned. Organizational governance may be defined as the processes, Policies, and structures which an organization puts to use so as to not only gain direct control of the organizational activities but also realize organizational objectives and also protect the interest of the entire shareholder population and the society as a whole. The processes, Policies, and structures distinct of organizational governance enhance the handling of the interests of the shareholders and society in such a way that is based on the most appropriate moral and ethical standards. Another way of terming the words in the foregoing paragraph is that the function of organizational governance is basically the leadership function in an organization which offers direction within an organization manages risk and controls all the organizational activities. Based on this submission, the organizational governance can then be termed as a function which enables the organization to: Comply with societal legal and regulatory rules Comply with the accepted business norms, ethics and meet the general societal social expectations of the organization. Benefit the society at the same time enhancing the interests of the stakeholders Report completely and honestly to not only its owners but also its regulators, stakeholders, and the general public in a bid to ensure responsibility for its conduct, decisions and performance Successful organizational governance requires that there exists synergy among its basic functions of its governing body. The governing body of an organization is made up of the board of governors, the management, the internal auditors and the external auditors. If synergy among these four organs of organizational governance exists, then the result is a well performing and efficient organization. The board of governor's responsibility is that it sets a governing and managing tone at the top. Being the focal point of all management activities in the organization it ensures ultimate accountability at every level of the organization and oversees all the organizational activities without necessarily managing them directly (Pointer & Orlikoff, 2002). The management is divided into two;

Agrippina the Younger - Rome a symbol of strength Essay Example for Free

Agrippina the Younger Rome a symbol of strength Essay Rome a symbol of strength, empowerment and prosperity for many, leaving no doubt in modern historians thoughts that this utopia was one of the most prominent of the ancient era’s. One dynasty within this epoch stands out, as being one of the most provocative and influential was the Julio-Claudian dynasty. This period was introduced with the instigation of the emperor Julio Augustus, known as one of the most appreciated emperors in Roman history. After Augustus came the rulers Tiberius, Gaius Germanicus (Caligula), Claudius and Nero. With every new ruler the amount of power and wealth in the city swelled, some even say that it was the golden age of Roman literature and arts. Each of these power broker’s have one person in common, apart from imperial extravagance and notoriety, they all have felt the sting of Julia Agrippina’s manipulative powers (The Metropolitan Museum of Art, 2013). When studying Agrippina it is found that many of the sources do not retain a sympathetic view of the During the Julio-Claudian era Agrippina the younger only retained her power through the manipulation of her son, husband and peers. By doing this she made herself on the most powerful women in Rome. Growing up with the most loved general in Rome at that time, Agrippina was destined for greatness. In her teenage years the regrettable incident of her fathers passing occurred and the empire was left to Tiberius, during this time she was betrothed to Domitius Ahenobarbus, which she eventually bore a child with called Lucius Domitius Ahenobarbus. Most sources state that she was forced into this marriage by the emperor Tiberius, a fact that is acknowledged by modern historian Donna Hurley when she states that Agrippina’s union with Cn.  Domitius Ahenobarbus was arranged by Tiberius. After this Hurley then goes on to state that it was practice for families of prominence in the ruling house to have the emperor arrange their marriages, which would explain why Agrippina was married at the tender age of thirteen. This period was probably one of the most controversial in Agrippina’s time as it instigated her impression that those in power were the ones with the most influence. Ask any of the historians of the Julio Claudian era how Julia Agrippina was able to come to such inordinate power, each will give you a different answer, but they all start with Agrippina’s relationship with her brother. By honoring his sisters Gaius Germanicus Caligula was reprimanded and made an easy target. These honors gave the three sisters unparalleled status, they included; making them honorary vestal virgins, inclusion in the annual vows for the allegiance to the emperor and the emperors safety, inclusion of in the preamble to proposals submitted to the senate, being depicted on coins and many other. An account, now considered unlikely to be true, is mentioned by Suetonius [in 1914: XXIV], â€Å"He (Caligula) lived in habitual incest with his sisters†¦ he is believed to have violated Drusilla when he was a minor†. The more realistic option is explored by Barrett, which states â€Å" Caligula would have looked for affection from his three sisters†¦ it was doubtless this affection that led to stories of incest with all three sisters†. This appeared as an opportunity for Agrippina to manipulate her way to becoming an influential power broker in that era. Agrippina’s sister Drusilla was Caligula’s favourite, and when he fell ill he immediately made her his heir, however this instigation was evaded as she died unexpectedly in AD 38, therefore Caligula reaped with grief deified his beloved sister making her the only woman to be deified in the Julio Claudian era. The controversy commenced when Agrippina’s husband, Domitius, died and the two remaining sisters conspired against Caligula, whom at the time was growing quite timeworn. This conspiracy was set about so the family could withhold its power and influence in the republic. Again, as before with Caligula the sisters were thought to have been involved in sexual relations with their brother-in-law, Marcus Lepidus, who according to Peter Roberts (2013, 165) was made heir in place of Drusilla. Putting his faith in the wrong man, Caligula eventually discovered a plot created by his much loved siblings and his beloved heir to get rid of him so as to make Lepidus the new emperor, whilst repaying the loyalty of Agrippina and her sister by allowing them to keep their status as when Caligula reigned. Due to the emperor’s sensitivity to conspiracies, the emperor eventually took heed of their plan and sentenced Lepidus to be put to death whilst sending Agrippina and her sister into exile to the Pontian Islands. The idea that Agrippina was grasping for power even then is backed up by the modern historian, Leadbetter, in his novel ‘The Ambition of Agrippina the Younger’ when he writes â€Å"Agrippina and Lepidus had formed a conspiracy to replace Caligula†¦ Thus Agrippina’s first attempt at seizing power long predated her marriage to Claudius†. Caligula’s growing greed was becoming a worry to the senate, and although they disapproved of him they offered him compassion so as to gain his trust. Eventually the Praetorian Guard was sent to dispose of him (Roberts. P, 2008). Claudius, Agrippina’s uncle, is mostly known for his eventual insanity, however many do not remember his extreme kindness to those whose faith had been entrusted unto him. When he assumed power his first course of action was to reinstate his two nieces back into the Roman community. His wife, named Messalina, assumed the same practice as Agrippina, and protected her own interests by divorcing her sick and time spent husband and joined C. Silius, next years appointed consul, in marriage. This, like Agrippina was executed to ensure her financial and social safety. This resembles the aforementioned conspiracy between the two sisters and Lepidus. Agrippina identifying this approach shamelessly begins to flirt with her uncle and plants the thought of Messalina’s betrayal in his mind. It was not long after this that the Praetorian Guard was sent to dispose of her. Due to Agrippina’s obvious flattery towards the withered emperor did not go unnoticed and Claudius who was expected to wed again soon chose his niece as he new bride. This created some uncomfortable tension in the senate, which arranged all imperial marriages, since it was forbidden to marry your niece. This however was overlooked since Agrippina’s father even then was still seen as an inspiration in the empire and would give the emperor favor of the people. The marriage also prevented Agrippina from marry another rival for the throne, thus eliminating any competition. After the two relatives were engaged a decree was passed to allow the matrimony between uncle and niece, a fact which is enforced by Cassius Dio in his book Roman History when he states â€Å"they [the senators] also passed a decree permitting Romans to wed their nieces, a union previously prohibited†. Like Messalina, Claudius showed the utmost fascination towards his new wife and granted her many extravagances, some which were only reserved for Goddesses. The most interesting is the five- layered sardonyx which depicts Claudius, Agrippina and her parents. This would have displayed to the public that the marriage of the emperor and his niece has kept a pure blood line and therefore is the better option for emperor, it also confirms the positive relationship between the much loved warrior and the emperor. Another interesting privilege for Agrippina is the ‘Sebasteion of Aphrodisias’ where a statue of her has been put in place. This was a temple created for the Gods and was put emplace for Augusts (Antiquity 2, 2008). This would create the image that Agrippina should be likened to the Gods and should be just as prominent in time as Augustus. Agrippina had such power of Claudius that she manipulated him to take in her son Domitius Ahenobarbus and make him heir to the throne. Claudius also changed his name to the better-known Nero Claudius Caesar. Agrippina was able to create prominence for Nero through the much used tactic patronage, which included the use of contacts and influence to achieve an objective. In Agrippina’s case her son to become emperor (Antiquity 2, 2008). These contacts, or clients, would assist the patrons by supporting and furthering the cause of the patron. Agrippina’s clients were Seneca, one who she had recalled from exile, and Burrus who she had made sole prefect, an ordeal which is seen in ‘The Annals of imperial Rome’ written by Tacitus which states These two men were expected to do whatever Agrippina wanted, and were expected to aid in hers and her sons rise to power. There is much dispute over whether Agrippina was responsible for the death of Claudius, the more likely idea is that she did kill him as it is stated by both Tacitus and Dio Cassius. When this ordeal was over, Nero was claimed the new emperor and to Agrippina’s delight was sculptured again in the ‘Sebasteion of Aphrodisias’ with Nero by her side. During Nero’s reign Agrippina was offered even more advantages then when Claudius reigned. She become priestess of Claudius’ cult and was offered two lictors, who were men which carried around the official emblems of the public office and would clear a path for her wherever she went (Antiquity 2, 2008). However this did not match the effervescent amount of coins that were minted with the mother and son to display the family’s power. In AD 69 the saddened occurrence of Agrippina’s demise surfaced. It was apparent, although not to the wider area of Rome, that Nero was responsible for her death. It seems that Nero had grown tired of his mothers controlling ways and decided that the only way he would be rid of it was to kill her. Agrippina was an independent strong held woman in a time where females were down trodden. She was not afraid to test the system and remained one of the most prominent women in the time of imperial Rome.

The Launch Of The Renault Logan Marketing Essay

The Launch Of The Renault Logan Marketing Essay Introduction The launch of the Renault Logan and the subsequent events is a happening which deserves recognition from strategists all around the world. The Logan was launched to appeal to the developing nations. Renault then launched a variation of the car for the Western European. This was immensely successful in both the regions and has been a key driver in the success of the company. The Logan, a low cost car manufactured by the French auto giant Renault SA, was intended to be its world car and was developed at the Romanian subsidiary, Dacia. Meant to be sold in the emerging markets of the world, it managed to achieve success even in developed nations like France, Spain Germany. This lead Renault SA to introduce a Logan variant especially for these markets. We discuss the factors that made Renault to get into the low cost car segment. It also examines the approach of Renault to give to the developing world a car with a pre-designated sale price, various cost reduction methods. It goes on to discuss the launch of the Logan in Western Europe where the company launched a variant based on the early success of the company. We broadly look at the following issues while discussing the launch strategy: To examine the strategic reasons behind a major auto companys decision to manufacture a low cost car for developing markets. To understand the reasons behind the success of the Logan, not only in developing nations but also in the developed nations markets. To examine the strategy employed by the company while entering new markets History of Renault 1898-1918 The Renault Corporation was founded in 1899 as Socià ©tà © Renault Frà ¨res by Louis Renault and his two brothers Marcel and Frerand in Boulogne. The founder was extremely fond of cars, the most important invention in the field of transportation in that century. He invented the first direct hold gearbox while he was working on a new design for his car. He succeeded to sell the gearbox to one of his fathers friends who was really impressed by the product. After patenting the product, he set up the company with his brothers and 2 friends. He was in charge of production and development and his brothers managed the administration stuff. Renault factories started mass production in 1905 and started following Taylorisms, a method of Scientific Management to increase economic efficiency in labour intensive industries, in 1913. The first cars were bought only by the very rich people because of the price which was around ten years worth of a normal workers salary. The company thus promptly decided to diversify by getting into the production of taxis and trucks. At the same time, the brothers understood the importance of advertising and began to field Renault cars in automobile races. The First World War presented a way for the company to become the first private manufacturer in France and it became well-known due to the participation in the war effort with production of various products ranging from munitions, military planes to tanks like the FT17. 1919-1945 After the war, the company diversified into the agricultural and industrial sectors. But the competition in the automobile sector became harder because of cheaper cars being available on the market. At this time, Renault met some financial problems in a period that was hard for the social and economic environment in France. During the 1920s, the company tried to overcome these difficulties. In 1920, the first Renault concessionaire appeared. A modernization process was launched in 1929 with the installation of the first assembly line in the Billancourt factory (in the West of Paris). Moreover, the demand for cars became very large especially for small automobiles designed for private individuals. Renault did limit its frontiers to the French market but enter foreign ones like the United Kingdom and its colonies. It was also a period which saw a lot of technical improvements in Renault cars. During the Second World War and the German occupation of France, Renault produced trucks for the Germans but stopped the civil small automobiles because of the War. Louis Renault was arrested for collaboration at the end of the war and the provisional French government decided to nationalize the company in January 1945 which became the Rà ©gie Nationale des Usines Renault (the National State Control of Renault Factories). 1945-1975 With the reconstruction time after the world conflict, the company modernized its installations, built and bought new production sites. The French economy at the time was really prosperous and amongst the fastest growing at the time. Renault tried its hand at internationalization and succeeded to a degree but failed to enter the lucrative US market. Cars during this period really became indispensable for private use and thus big successes arrived with popular cars for everybody: the 4CV, and then the Dauphine, the Renault 4, the Renault 5, etc. The first premium model was born with the Renault 16 and other Renault sports cars continued to meet a lot of success in cars races in which Renault invested a lot of money. 1975-1992 The growth stage for the company went on until the beginning of the 1980s. Many new models were launched and the premium products in particular- the Renault 25 and the Espace appeared and became big ticket selling items for the company. At the same time, the Renault brand grew strongly not in a small part due to the excellent performances in the Formula 1 world- the automobile racing championships. Nevertheless, Renault encountered big losses in the 70s and the economic crises during the 1970s accentuated the problems. A drastic policy for reducing all the costs and refocusing on the core competencies was started and started paying dividends as seen in 1987 when Renault made profits again. 1992-2005 The 1990s presented new opportunities for Renault. First, an alliance with Volvo was planned but it fell through. However, the real change came with the privatization of the company in the year 1996. 3 years later, in 1999, the company signed a merger deal with Japanese car maker Nissan a deal which through cross holding saw Renault getting 44.5% ownership of Nissan and Nissan getting 15% of Renault. Formula 1 during the period saw Renault become title challengers through Fernando Alonso. This again contributed to the brand equity for Renault. The Innovations and went on with models like the Megane and the Laguna which contributed the maximum to the sales of Renault during this time. In the 2000s, the Renault-Nissan alliance has become stronger and the companies have found synergies which can only help in the alliance. The group internationalization is a big objective now and this can be seen the buyouts of Samsung Motors and Dacia. They brought over 99% of the Romanian company and this subsidiary of Renault was the one that actually brought the Logan to the market. Renaults context The New Global Strategy Renaults necessity to capture the emerging markets stems from the fact that markets in the developed nations are not growing fast enough to cater to the growth requirement of an international car company. For this very reason, the global strategy of Renault was renewed, and it was decided that the optimal one would be to strengthen their position in their natural market, meaning the European one and to enter new market with a high potential of development, meaning emerging markets. In the year 2004, Renault-Nissan was the fourth largest manufacturer in the car industry. The objective defined in the new strategy formulated in 2004 was to become the third largest company by 2010 and to achieve an increase of 30% on the number of car sold (meaning an increase of 900 000 cars). This objective meant to sell 6.5 millions of cars in 2010 instead of 5.6 in 2004, hence capture 10% of the global market. The purpose of this plan was to take Renault into the car industrys global group. They also wanted to restore the operating margin which has been deteriorating since early 2005. An international strategy needed a global vision of the market, hence defining what was common to consumers all over the world. This was Renaults strategic context that led to the launching of the Logan. The Need to enter Emerging Nations Developing a car for developing markets has become a quest within the automobile in recent years. It all began with Fiat nearly doing it with the Palio; Launching a car in this segment- modern yet affordable- in lower-income regions is an essential tool available in the hands of automotive companies for expanding the car industry on the whole. In the absence of these models, the streets of the emerging markets are full of obsolete western designs which are still in local production, or used imported cars from developed markets that have been dumped there. The dumped cars are old and invariably never adhere to environmental standards, thus making the low-cost modern cars an even better value proposition for not only environment lovers but also for people who are sensitized to the issue. These cars match up to all the environment standards set around the world thus appealing to the people living in the developing or emerging nations. Old designs can still be seen in many countries and the factories setup over 30 years back are still making the car they were initially setup to build, albeit with some minor adjustments. An example of this is the Maruti 800 in India which has been in production from 1982. Another example of the same is the 40 year-old car, the Zhiguli, a car by Russian giant AvtoVAZ. The examples given above are not really about car makers from developed nations dumping old generation products in emerging markets. This can be seen from the example of the Nissan which still makes the Tsuru, a budget-priced version of the 1980s Sentra, in Mexico. Another of Brazils top sellers, the Fiat Uno, has also been in production since at the local factory back in 1976. All these models share the same basic economic model the production line is bought and paid for; the RD costs of the models were amortised long ago. Theyre made in simple plants with low-cost labour and using local suppliers, to tolerances that would not be acceptable in the developed world. Theyre easy to maintain and spares are readily available. In a nutshell, theyre cheap. And mostly rather nasty. The trick is to replace them with something thats equally cheap but cheap and cheerful instead of cheap and nasty. Cheerful in that its safe and clean. But thats fiendishly difficult to achieve. Fiats Project 178 of 1996 was the first concerted attempt to create such a car. Fiat has substantial interests in a number of emerging markets, principally Latin America and Central Europe, but also in North Africa, South Africa, Turkey and India. Project 178 spawned a number of vehicles off a new platform Palio hatch, Siena sedan, Palio Weekend wagon and Strada pick-up. And Fiat talked the project up, predicting sales globally of close to a million units a year. In reality, it hasnt come close. So far about 3.5m units have been built including more than 2m in Brazil. But over the 10-year lifespan of the project, thats only 350,000 a year. Part of the problem was a failure to set up a meaningful alliance in China Fiat has a low-key operation with Nanjing Automobile, established in 1999, and only sells about 30,000 cars a year there. But more importantly, the Project 178 cars werent cheap enough to take over from the entry-level clunkers they were intended to replace. In Brazil, the Uno Mille soldiers on as Fiats cheapest model, with Palio positioned as something of an upmarket alternative. Brazil is an oddity among emerging markets too in that its consumers like hatchbacks. In most emerging markets, the traditional booted sedan is the carriage of choice, largely because small cars tend to carry more people on an average journey than in the west, so a separate, larger luggage compartment is preferable. The sedan version of the Palio, the Siena, is too large to be an entry model in Central Europe or India, and in these markets it is sold as a mid-range model. In India, as in Brazil, the Uno props up the range. Fiat seems to accept this its Siena/Palio replacement, codenamed D200, is due to be unveiled next month. And itll be larger than the Siena, closer in size to a Toyota Corolla, according to reports. Renault has come much closer to the holy grail with the Logan. Like Fiat, Renault has a reasonably large emerging markets footprint, which became much more appealing once it had acquired its former Communist-era partner, Romanias Dacia, which had survived the post-Ceausescu turmoil by cranking out ancient Renault 12s in a crumbling plant. Logan was created along a brief to build a car that would sell for less than EUR5,000. It involved raiding the parts bin mainly Clio, though the suspension is from the Modus and producing a simple four-door sedan to be built in Romania and other emerging markets. While the EUR5,000 target turned out to be theoretically possible, such a vehicle has never existed as the specification would have been too basic even for Romanian tastes. Logan prices start around EUR7,000, and the project has undoubtedly been a success, with more than 250,000 sold in the first 18 months of production. As well as Romania, Logan is also manufactured in Russia, where 25,000 vehicles were produced from April 2005 to May 2006, as well as Morocco and Colombia. Production will soon start at a major plant in Iran, where 250,000 units a year are targeted, followed by India in partnership with Mahindra Mahindra and Brazil in 2007. A wagon version was premiered at the Paris Show in September, and panel van and pick-up derivatives will also be built. Logan has outperformed Palio because its a bit smaller, a bit cheaper and the production is better spread. There are potentially genuine economies of scale thanks to annual volumes at full production of around 800,000 units a year. It would be an even greater success if Renault could get it into China but talks about building it in partnership with Dongfeng-Nissan stalled last year and have remained unresolved. The idea of the Logan The initial idea of the Logan came from the former CEO Louis Schwetzer, who imagined, during a trip to Moscow in 1997, an economic saloon car (Berline) for the Russian market. The Logan was one car from car manufacturers which was not a sub product of a car already in existence in the developing world. Thus the car could be designed from scratch and thus could add to its probability of success in these markets. This gave developers more flexibility right from the design phase to the actual manufacturing phase. This flexibility and ability to create the product just for the emerging nations gave Renault a big competitive advantage over competitors. They could thus follow a low cost strategy right from the very start. The  low cost strategy There are two parts in Renaults low cost strategy to ensure that the product launch is successful; firstly it lays emphasis on a specific organizational and production strategy to match the low prices thus incorporating extreme efficiency in the organization and secondly on achieving the right product positioning which is supposed to fulfil consumers needs in both developed as well as emerging countries. 1. Low cost Strategy To answer the needs of a mass market, the price of the car needs to be such that the car is accessible to everyone. The production costs will then have to be lower than for a normal car under the criterion set by Renault. But at no stage should our product not fulfil the consumers expectations, in particular concerning the safety of the car. Certain factors in cars are hygiene factors and they are a necessity no matter what the cost. This also has to be taken into account while making the final decision. As the Logan was not a product derived from some other product, the whole production process was to be adapted to the main idea underlying the concept of the car; it had to be extremely lean and efficient. We had to control the costs and thus make production less expensive and yet meet high level of expectations regarding the reliability, strength and performance of the product. Reducing the costs was a strategic phase of the project, and with this low cost approach, Renault could put on the market a car that was sold with a sub 5000 Euro price tag in emerging countries. The company also standardized its processes in all the plants across the world in order to ensure lowest possible costs. The company has taken the best practices from various companies around the world. They have incorporated concepts like Six Sigma, Total Quality Management, Just in Time, etc based on the success at other firms around the world. The company is known for its logistics and follows the following principles for the same. This has been especially in practice ever since the launch of the Logan as the volumes for the company have really picked up as a result. 15,000 trucks and 26 trains are used to ship parts and cars are transported daily in around 400 wagons, 10 ships and 1,200 trucks. The transport budget totals around à ¢Ã¢â‚¬Å¡Ã‚ ¬ 470 million for supply and another à ¢Ã¢â‚¬Å¡Ã‚ ¬ 725 million for vehicle distribution. 7 large function families    Logistics at Renault is divided into 7 main families covering all logistics activity, from design to project to series life apart from spare parts and accessories. They include Production Supply and Management Logistics Quality Shipment and Transport Industrial Planning and Programming Supply Chain Architecture Physical Flow Engineering Process Engineering The low cost method Renault could apply a low cost model for the production of a new car, as it had all the core competencies for it. He used the method  design to cost for the Logan, already used with the Twingo in 1992. With this method all the processes are defined regarding the feasibility of a technique and the savings it would lead to. It is a centralized method, one manager was appointed to check all the process, instead of having each business unit participating to the project. This manager had a broad decision power, and it saved time and resources. The material was chosen as per the availability of the material all over the world, as the productions sites were supposed to cater to the nearest possible consumers markets. The contractors were also chosen depending on the location of the production site. The number of components was reduced from 4000 on an average for a car to about 1400 for the Logan. Another important cost reduction was the reduction of the promotional budget (mainly in developed countries). 150 Euros is spent for one Logan, whereas the average cost of promotion is 400 Euros for one car. All these competencies are not easily imitable by Renaults competitors. 2. The Original Positioning Traditionally, consumers need for a car were analyse as opposite between developed and emerging countries. For the emerging markets, the development of a middle class is the appearance of a new market for the car industry as more and more people can afford one. Until the Logan, the consumers from this new middle class could only afford a second hand car. With the Logan, Renault is offering a new car at the same price than a second hand one, with the possibility to personalize your car with a broad choice of options. The second advantage of the Logan is the guarantee of safety as it is constructed by a well-known car constructor. Another argument for the emerging markets is the fact that it is a foreign brand. Indeed, for emerging markets consumers, it can be better for your social status to have a foreign brand car. In developing countries, the launching of the Logan was a success even if it was not meant to be launched at first in developing countries. For example in Germany, the consumers were attracted to the idea of having a popular car. In those markets, the price argument was extremely important but all the attraction of the Logan came from the fact that it could be personalized has any other car. With the Logan, Renault was able to sell a low cost car to consumers by make them forget it was a low cost car. Even if the price is the common factor in both markets, the motivations surrounding the price are different. The possibility to buy a new car is mainly linked to the social status for emerging countries consumers whereas what attracts developed countries consumers is the rationality of buying a safe new car at a low cost. Marketing strategy The originality of Renaults positioning is to have made one product and to adapt the marketing strategy to the specificity of each market. The price is the first difference between markets. A Logan is sold in France 1500 Euros more than in Romania. This difference can be explained on a strategic point of view; because Renault didnt want that the Logan became the only car sold in France by Renault. If the price had been too low, the Logan would have competed with others Renaults products. (In French it is called the cannibalism effectà ¢Ã¢â€š ¬Ã‚ ¦ not sure if the translation exists; it is a concept in marketing) Apart from that specificity of the French market, the price is changing depending on the countries mainly because it is possible for a client to invest in options and then pay more. Sales Owing to its marketing strategy adapted to each local market, Renault intends to satisfy a maximum of different expectations and obtain an optimisation of its sales. The low cost positioning of the Logan is original because it links a low price product to a diverse offer in order to meet different consumers expectations. Emerging countries markets and their specificities In that context, an offer adapted to the revenue of the emergents countries consumers was suppose to be Renaults way to enter those markets with high growth potential. The specificities of emerging countries car market are that it is today underdeveloped, meaning that its potential growth is very high. The importance of having a product adapted to these markets for Renault was also the only way to be able to compete with the future competition coming from India and China. Launching the Logan The first production centre for the Logan was based in Romania. The car was initially sold in 16 countries Romania, Croatia, Slovakia, Hungary, Czech Rep, Serbia, Montenegro, Macedonia,  Turkey, Syria, Lebanon, Baltes countries, Moldavia, Poland). Launched the 9th of June 2005 in France, it was also sold in Germany and Spain. The decision to launch the Logan in Western Europe was a forced decision as a parallel market appeared. It was the only way for Renault to avoid competition with its others cars in Western Europe. Renault in Western Europe Renault originally did not have plans to launch Logan in Western Europe. However, the company started importing a more expensive version of the car in 2006 which was priced at à ¢Ã¢â‚¬Å¡Ã‚ ¬ 7000. The car was a success in Western Europe contrary to the beliefs of the company. This showed the predilection of the buyers for a low cost no frills car. The car is sold under the name of Dacia Logan in the western European region. The car manufactured mainly for the developing nations in Eastern Europe was not intended to be launched in the developed markets of Western Europe. Dacia was assigned the task of developing a car which is low cost and suits the need of developing market and the success in Western Europe did come as a surprise for Renault. By 2007, over 15% of the total sales of Logan was coming from France and Germany. For people in Western Europe the looks are not that good. The Logan MCV shares the same dowdy lines as its siblings. You also dont get many features. To keep costs down, Dacia minimized the frill factor to such a low that they were almost non-existent. Nevertheless, the Logan MCV handled city streets with ease. The steering is direct. The suspension is firm but still comfortable. To deal with the often-unpaved roads of its target markets, the Logans suspension is slightly higher than other comparably sized vehicles. Like many European cars, the Logan comes with small and efficient engine options. Despite the small engine the car performed well under traffic. The major reason for the success should be attributed to the price. Compared to the others cars in the segment the price that Logan was charging were unbelievably cheap. Others cars in the segment were priced at around à ¢Ã¢â‚¬Å¡Ã‚ ¬ 13000. The appetite for low cost cars in Western Europe is a tantalizing development and it could serve as a major point to sell more cars in the markets which are believed by most to be saturated. The low cost cars have a potential to be bought by families who want more than one car. This could also fulfill the requirement of students and the working class early into their career. The scope is wide and prospects wider. Failure of Logan in India Renault launched its low cost car Logan in India in April, 2007. The car had been hugely successful worldwide. The low cost car was conceived primarily for developing markets, but due to its huge success in Eastern Europe, Renault chose to launch it in Western Europe as well, where it turned out to be successful. Renault entered India via a joint venture with Indian automaker Mahindra Mahindra, which provide market insights and distribution reach, while the engines were to be sourced from France. During the launch, the company had projected sales of 30,000 units a year, or 2500 units per month. The actual sales in October 2009 were around 500 cars per month. The joint venture was supposed to deliver synergy and allow Renault the platform to grow its brand in India. Each partner was expected to deliver a resource which the JV could exploit. While Mahindra provided marketing and distribution, Renault brought to the table technology. However, the JV failed to deliver for the following reasons: The price point for Logan was a major problem. The petrol range starts at Rs 4.43 lakh going up to Rs 5.32 lakh and the diesel variant is priced at Rs 6.68 lakh. The competitors of Logan in the low cost segment, like Maruti Swift Dzire and Tata Indigo CS, had much more aggressive price tags, and cars like like Ford Ikon and Hyundai Accent that were available in a price bracket close to the Renault model put pressure on demand for Logan. The reason for Logan having to price higher than its other low cost competitors was the fact that 50% of Logans parts and the engine itself were sourced from France, which is higher than any other manufacturer. As a result costs went up The issue here that prevented synergy was the lack of trust between Renault and Mahindra. Renault refused to part with its technology in an attempt to retain power in the JV and it to keep open its option of having an independent future in India. Another problem that the JV faced was the rising Euro. Due to the fluctuations in currencies, the costs of the company kept going up, and it could not move to a more aggressive price point. Moreover, being just over 4 meters long, Logan was in an excise bracket higher than other low cost cars. To top it all, Renault felt that the current volumes were not large enough to justify localized supply. This showed lack of commitment towards the JV. After the JV with MM, Renault initiated talks with Bajaj for its small car and also started contacting other auto manufacturers. This strategy of having multiple partners in the same category, especially when these partners maybe competitors, is not a smart one. Due to this apparent lack of commitment from Renault, the Logan was relegated to the backstage in Mahindra outlets with no dealer push coming forth for the car. The company MM and its dealers preferred to push the Scorpio more, for obvious reasons. Therefore, the Logan entered the market with limited dealer push in spite of having one of the strongest distribution networks in India. There was very little by way of branding done for the Logan. After the initial launch campaign, there was precious little brand building. The JV tried to drive growth by discount ads, provided primarily by local dealers. As a result Logan never became a strong brand in India. This lack of customer pull, coupled with the lack of retailer push mentioned above ensured that the brand Logan never really took off in India. Moreover, news about the rocky relationship between the partners kept consumers away from the car due to uncertainty about service in the future. Lessons from the failure We can derive many lessons from the unexpected failure of the Logan in the Indian market. It teaches us how to derive value from a resource like a JV. Both partners must be committed to the joint venture for it to succeed. Renault was in talks with other manufacturers, as a result Mahindra did not take the JV seriously. This led to low retailer push, bad press and low investment in marketing activities. In its attempt to grow too quickly Renault actually jeopardized its existing brand. The partners have to share a degree of trust. The JV sourced about 50% of the parts and the engine from France. This would not have been the case if Renault could have trusted MM with its technology. Even though that would have given greater power to MM, it would have ensured a successful take-off for the Logan. Renault could have built its power in the JV by gradually developing its own distribution network over a period of a few years. However, in its rush to grow quickly it jeopardized a very good product. Renault could also have signaled its commitment and trust by building manufacturing facilities in India, but refrained from doing so.

depletion of the ozone layer :: essays research papers fc

Our Radiant Planet: Depletion of the Ozone Layer Ozone is a relatively unstable form of molecular oxygen containing three oxygen atoms produced when upper-atmosphere oxygen molecules are split by ultra violet light. Stratospheric ozone is found in a broad band, extending generally from 15 to 35km above the earth. Although the ozone layer is surprisingly thin, it acts as a protective shield to the earth, as it filters out most of the harmful solar ultraviolet radiation (in particular UV-B) that would otherwise reach our planets surface. Humans have damaged the ozone layer by adding molecules containing chlorine and/or bromine that lead to ozone destruction. The largest group among these are chloroflurocarbons (CFC's). At ground level, these molecules are very stable and have many uses in industrial and domestic applications, such as in spray cans, industrial solvents, degreasing compounds, and cooling in fridges. However when released into the stratosphere, such molecules can be broken down by energetic light rays (UV-C radiation) in a reaction that liberates an atom of chlorine, which destroys ozone by oxidising with the Ozone molecules, forming Cl-O and Oxygen. One atom of chlorine can destroy 10,000 ozone molecules! Atoms containing bromine, nitrous oxide, and hydrogen oxide radicals are also primarily dangerous. As a result, the Ozone in the stratosphere has been reduced to such an extent that ozone holes are appearing around the globe, in particular one over Antarctica that in 1995 measured 8.2 million square m iles. This depletion has allowed more dangerous UV-B radiation to reach the earths surface. So what effects will ozone depletion have on us? Although, at present, the ozone layer blocks out most of the damaging UVB radiation received from the Sun, a small amount slips by, damaging out skin in the form of sunburns and suntans. UVB radiation is strongly absorbed in the skin and in the outer layers of the eye. Human skin has developed various defence mechanisms against the damaging effects of UV radiation. The skin adapts to increased UV exposure by thickening its outer layer and by developing pigmentation that serves to shade the more vulnerable and deeper residing dividing cells. Overly damaged cells will normally self destruct through a process called apoptosis, and if this fails, the immune system should get rid of any resulting aberrant cells. It is when these natural safeguards fail or are overcome by UVB that real trouble can ensue. The most depletion of the ozone layer :: essays research papers fc Our Radiant Planet: Depletion of the Ozone Layer Ozone is a relatively unstable form of molecular oxygen containing three oxygen atoms produced when upper-atmosphere oxygen molecules are split by ultra violet light. Stratospheric ozone is found in a broad band, extending generally from 15 to 35km above the earth. Although the ozone layer is surprisingly thin, it acts as a protective shield to the earth, as it filters out most of the harmful solar ultraviolet radiation (in particular UV-B) that would otherwise reach our planets surface. Humans have damaged the ozone layer by adding molecules containing chlorine and/or bromine that lead to ozone destruction. The largest group among these are chloroflurocarbons (CFC's). At ground level, these molecules are very stable and have many uses in industrial and domestic applications, such as in spray cans, industrial solvents, degreasing compounds, and cooling in fridges. However when released into the stratosphere, such molecules can be broken down by energetic light rays (UV-C radiation) in a reaction that liberates an atom of chlorine, which destroys ozone by oxidising with the Ozone molecules, forming Cl-O and Oxygen. One atom of chlorine can destroy 10,000 ozone molecules! Atoms containing bromine, nitrous oxide, and hydrogen oxide radicals are also primarily dangerous. As a result, the Ozone in the stratosphere has been reduced to such an extent that ozone holes are appearing around the globe, in particular one over Antarctica that in 1995 measured 8.2 million square m iles. This depletion has allowed more dangerous UV-B radiation to reach the earths surface. So what effects will ozone depletion have on us? Although, at present, the ozone layer blocks out most of the damaging UVB radiation received from the Sun, a small amount slips by, damaging out skin in the form of sunburns and suntans. UVB radiation is strongly absorbed in the skin and in the outer layers of the eye. Human skin has developed various defence mechanisms against the damaging effects of UV radiation. The skin adapts to increased UV exposure by thickening its outer layer and by developing pigmentation that serves to shade the more vulnerable and deeper residing dividing cells. Overly damaged cells will normally self destruct through a process called apoptosis, and if this fails, the immune system should get rid of any resulting aberrant cells. It is when these natural safeguards fail or are overcome by UVB that real trouble can ensue. The most

Offshore Banking Essay -- foreign bank, financial secrecy

Offshore banking is the action of having a bank account outside of the country of residence. Since its start, offshore banking has become a considerably lucrative business. Many of those who take part in offshore banking are looking for a secure location to place their income or seize the opportunity of having lower taxes. However, there are those who misuse the privilege of a foreign bank and use the business ventures for illegal actions rather than the original purpose of the dealings. Offshore banks seem to have an impartial acceptance of quite a few clients within the bank that create a lower standard of ethics in contrast to the ethics meant to be held—this includes those of a political position. Furthermore, this has the potential to be detrimental to the economy. Individuals that have offshore accounts control accounts through a credit card that has a unique and individual number and secret code. These would often be referred to as â€Å"identifier codes† called IBNs (International Bank Account Number)—where the account holder is identified by a sequence of characters—rather than the traditional system of recording names, as defined by National Westminster Bank. An IBN is not to be confused with an account number (though it not uncommon for an account number to be included) as it often varies between countries. Often times, a report must be filed for the purpose of obtaining this information. This system helps all of these banks provide financial secrecy which is that only you and your banker would legally be allowed to know the financial activity within your account. The financial secrecy, completely different from financial privacy, includes many regulations to maintain this asset of secrecy. For example, many banks would n... ....). Democracy Now!. Retrieved January 27, 2014, from http://www.democracynow.org/2011/4/15/offshore_banking_and_tax_havens_have Offshore banking. (2014, November 2). Wikipedia. Retrieved February 20, 2014, from http://en.wikipedia.org/wiki/Offshore_banking Purpari, M. (n.d.). How Far Offshore is Offshore Banking?. Suite101.com. Retrieved January 27, 2014, from https://suite101.com/a/how-far-offshore-is-offshore-banking-a344923 Ritchie, J. (n.d.). Connect With Us. MintLife Blog. Retrieved January 27, 2014, from https://www.mint.com/blog/trends/offshore-banking/ Warren, Z. (2013, September 23). U.S. government cracking down on offshore bank accounts through FATCA. U.S. government cracking down on offshore bank accounts through FATCA. Retrieved February 20, 2014, from http://www.insidecounsel.com/2013/09/23/us-government-cracking-down-on-offshore-bank-accou

Principles of marketing Essay

1. Introduction   1.a What is marketing? Elements of marketing: Marketing is a business philosophy that seeks to address customers wants and needs by either determining what a customer wants or anticipating customer demands and then producing goods and services that meet these requirements. The marketing concept therefore differs significantly from the selling and the production concept, where it was what the firm produced that was sold. The production concept believed that all production sells and what is needed is a selling effort. In marked contrast, the marketing concept works first at determining what the customer needs and then producing the same so that the customer is satisfied. The elements of marketing include the customer, the product, the value of the product and the want it addresses. 1.b Advantages of marketing and criticism: The marketing approach ensures that the seller does not make mistakes in determining what the market demands. There is thus that much efficiency in the marketplace as production capacities are built depending on market feedback and what customers want. Also, as the marketing department knows what the customer wants, it is able to provide an efficient answer and design, at a cost that the customer is willing to pay. The marketing approach has also been criticized for its attempt at forecasting and determining personal choices. It is also criticized for influencing customers towards goods and services that they may actually not need, but are driven to these products through clever strategies that convert simple desires into burning needs. Marketing also has been criticized for using external influences through advertising and promotions to make people demand goods that they would otherwise not have found useful. Leveraging customer psychology to get people influenced by imaginary reference groups that they aspire to belong to, also is another tool used by marketing that is often criticized for its ability to attract customers. Modern marketing, with all available technology and databases that track customer behaviour, is a weapon that can be used by firms wanting to grab large market shares. It therefore tends to be unethical at times and needs string regulatory mechanisms. 1.c The marketing function The marketing function is a function that includes all activities that contribute to the marketing strategy and the marketing process. This function therefore covers all aspects of identifying customers, determining their needs, estimating wants, calculating total demand, building supply chains and constructing marketing promotion strategies through all available marketing channels. This also includes marketing controls and control systems that ensure that all activities undertaken by marketing departments are consistent with and in line with the objectives of the firm. The marketing planning and control mechanism tracks the various activities undertaken by the firm, and determines if the process is going as per plan. 1.d Marketing management: Monitoring and evaluating its marketing processes regularly, a firm is able to take corrective action. The monitoring of marketing activities is a specialized task that ensures the entire chain of activities is checked regularly, constant feedback taken and corrective measures instituted that bring the plan back to the path desired so the firm’s overall objectives are met and are not deviated from. The marketing function starts with a marketing plan that is a written statement of objectives and processes that the firm would undertake to meet its goals. This plan is constantly recalled to ensure the control system and the action plan sticks to the strategy that has been drafted. The plan takes into account the economic environment the firm exists in, the regulatory framework, and the demographic characteristics of the population, competitive forces and product characteristics. The marketing mix   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Product: The marketing mix is central to any marketing plan that a marketing strategy evolves. The marketing mix primarily looks at the four components that have defined marketing strategy. These four major components of a marketing plan are the Product, Place, Price and Promotion. The first – product, focuses on making the firm’s product something that is of value for the customer, is constantly redefined to meet changing tastes and is what is actually something that meets market demand. The product that is marketed is defined by its quality, its functionality, the appearance, the service that comes with the product and the support provided to the customer. It is important for the firm to produce a product that is of high quality. In a competitive market, it is no longer possible to sell a product that is not of high quality as there are several substitutes available and competitors are always ready to improve quality. Hence the product is defined by it functionality and the brand that is built around the product. The brand defines product quality and provides customers with information about the product even before the product is bought and used. Additionally, the product is defined by what the firm provides by way of after sales support and service. Modern brands provide products with warranties that cover the risk of failure after the product is sold to the customer. Brands are built around the various facets of the product sold. A brand carries an inbuilt guarantee of the usefulness of the product. Brand building is essential to marketing management and defines the product part of the marketing mix. Products are also made so as to acquire certain niches in the market and this can be either done through specific functionalities or through product differentiation. Place: The second component is place and this focuses on the fact that the product would be made available to the customer at the right time and at the right place. It also includes the aspect that the product should also be available in the right quantities. Non-availability will move customers away to another substitute while too large a stick will increase inventory costs. So the correct balance needs to be struck. The place component of the marketing mix depends on the logistics that go into supplying the product to the customer at the right place and at the right time. The logistics department must identify appropriate locations, the appropriate channels of distribution, the channel partners that take the product to the customer and ensure maximum coverage. The place also defines the point of contact with the customer, the point of purchase advertising and the support locations. Modern technology has added a new dimension to place by way of providing Internet and mobile access to marketers. Using mobile phones and online marketing, customers are able to access distant locations at the click of a mouse and check out the product in a virtual environment. Delivery is quick because of the developments in transportation and travel. Support and service can now be provided through distant, centralized locations that are accessible through support centers and call centers. Successful marketing in today’s environment is a function of how well the marketer leverages modern technology by way of online brochures, online advertising and payment gateways.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Price: The price of course is a critical component of the marketing mix. In a competitive market where goods are homogenous and perfectly substitutable, it is price that would ensure some buyers for a new product. On the other hand, in similar situations, a product that is priced high could occupy the position of a superior good and guarantees a premium only because it attracts prestige and value to the product. In goods and services that are price elastic, price can e used as a strategic tool to increase margins, whereas in price inelastic markets, prices need to be kept stable. A large number of marketing strategies focus on the price range a product offers and the income levels and consumption characteristics of the customer in the neighborhood.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Pricing is also a strategy that incorporates list prices and how they are estimated. The list price takes into account the competition and the channel margins. Where the marketer is using a push strategy, pricing must include incentives to retailers and wholesalers that enable them to push the product among the customers. Pricing also includes the strategy that involves using discounting and discounting sales to increase volumes periodically. Today pricing strategies also have to keep in mind leasing options and installment based payments. They must therefore allow for various financing options.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Promotion: The other important component of the marketing mix is the promotion package that is used by the marketer. Especially in a new market, where a product is being launched and introduced, it is critical for the market to accept the new product. Here is where the promotional aspect acquires a new dimension compared to the promotional strategy of a product that is entering a competitive market. Promotional strategies need to be carefully defined depending on the nature of the product and the market characteristics. The most important promotional tool used worldwide is advertising and this in the modern world is a strategic decision that must take into account the advertising mix that calculates what amounts of money and effort be spent on television, print media, internet advertising, bill boards, radio stations and mail brochures.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Also, in the days of consumer movements and regulatory mechanisms, it is important for promotion to concentrate on public relations. Most brands today spend a lot of effort in maintaining public relations through regular contact with the consumers and the media. Also promotion in specific goods and services is carried out through a direct sales network that requires a great amount of coordination and networking. It is also important to remember that, given its scope and coverage, promotion is an activity that requires scientific budgeting and monitoring. Promotion as an activity needs to cover the target audience, the end customer, the opinion makers and the potential buyers and channel members that could be part of the future supply chain.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   The 4 P marketing mix model has been the one most used by various marketers all over the world and ensures that each of the marketing function gets covered and focused on. There have been those who have argued for a 5 P and even a 7 P marketing mix, especially to cover service products. The one extra P that is most often talked about is People, the human resource component that actually makes the efforts in tackling the 4 Ps. In any marketing firm, where customers need to be convinced and must trust the product, it is the people handling the product, the promotion and the supply chain that need to be extremely well trained, motivated and understanding of customer demands. Therefore it is often argued that the marketing mix must give an equal emphasis on its people and their training and incentives. However the 4 Ps discussed above are the most critical and need to be focused on to be able to successfully compete at the market place. Buyer behaviour   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   3.a Purchase decision: Purchase decision is a complex mechanism that involves a .large number of steps. The buyer behaves differently for high involvement and low involvement products. Products that are expensive and are in the nature of assets are high involvement products where the consumer takes time and makes efforts to look at various possible substitutes and competitors before making the purchase decision. The purchase decision is therefore sees to go through the various steps. There is a need recognition phase where the marketing begins. Here the buyer defines what his needs are the starts exploring possibilities that would solve the need. High involvement products there fore need great amounts of research before the buyer is able to decide. On daily consumables like soaps and toothpaste the buyer may not be as highly involved and easily makes decisions. Therefore after the need recognition process, the buyer then goes of ran information search through which a set of alternatives emerge. These are then weighed against various constraints and then the actual purchase decision is made. What follows is the post purchase behaviour and in this the buyer may actually regret making the decision or may go away satisfied. Marketers need to understand what is referred to as post purchase dissonance to be able to ensure good word of mouth promotion from existing customers.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   3b. Reference groups, culture: Of course buyer behaviour depends a great deal on the cultural background where the market exists. In savings oriented societies buyer behaviour is quite different form societies marked by conspicuous consumption. Also buyers in certain societies are bound to make far more careful decisions than in certain other cultural frameworks. Also groups tend to alter behaviour is different settings. The reference group is a major decision maker for most customers who would like to reach a group that they aspire to belong to through similar buyer behaviour. This is why a large number of celebrities are used to sell products and promote them. To influence buyers who consider these celebrities as these reference groups and inspirational groups. 4. New product development   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Market plans and market strategies therefore are complex mechanism that must look at various aspects of buyer behaviour, product characteristics and promotional strategies. Very often in such mechanisms, it becomes critical for firms to make decisions regarding innovation and new product development,. It could sometimes to easy for a firm to simply provide a market with existing demand and give the same product that exists at a better price and better place. However this might not work as the first mover ahs an advantage. Also the demand levels keep changing as culture changes and incomes change.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Therefore new products must be offered and innovations required both in developing new products, in new segmentation strategies, in product differentiation, in defining new niche markets and in being able to design both push and pull promotional strategies. Innovation is the name of the game as markets become more competitive and the customer more demanding. Market strategy demands that innovative strategies and products be designed keeping the basics in mind – that of the need to study and satisfy customer demand. Marketing is a science that attempts at assessing demand and developing products and promotions that meet this demand at appropriate prices and places. Innovation in marketing must keep this design in mind and develop new processes and products that work at the market place. References Moorman C. and Rust T. R., (1999) The Role of Marketing, Journal of Marketing, Fundamental Issues and Directions for Marketing Webster F. E., (1992) The Changing Role of Marketing in the Corporation, Journal of Marketing Borden, N. H., (1964) The concept of the marketing mix, Journal of Advertising Research Howard, J and Sheth N. R. (1969), The theory off buyer behavior, John Wiley and Sons. Peter P. J. and Olson J. C., (2004) Consumer behavior and marketing strategy. Irwin/McGraw-Hill Grà ¶nroos C, (1991)The Marketing Strategy Continuum: Towards a Marketing Concept for the 1990s,   Journal: Management Decision Hooley G, Saunders J and Nigel Piercy N., (2004), Marketing Strategy and Competitive Positioning FT Prentice Hall Wind Y, Robertson TS., (1983) Marketing Strategy: New Directions for Theory and Research,   Journal of Marketing Fill C, (1995) Marketing communications: frameworks, theories and applications, Prentice Hall Mela CF, Gupta S, Lehmann DR, (1997) The Long-Term Impact of Promotion and Advertising on Consumer Brand Choice, Journal of Marketing Research