Thursday, January 30, 2020

The implications of the European monetary union Essay Example for Free

The implications of the European monetary union Essay In this report, I will be addressing the implications of the European monetary union and the problems Zeus will have in developing their market in Europe. The UK and EMU When the UK decided not to join the European monetary union (EMU) in 1999, it affected UK businesses, especially those who trade within the EU. Does it matter whether sterling is in or out? For many UK Businesses, trading within the EU has become more competitive. After the introduction of the Euro, an Italian company for example, competing for a German companies business could cut 3% of costs due to their common currency, making it harder for UK business to compete. Currently UK businesses are paying à ¯Ã‚ ¿Ã‚ ½3bn per year in exchange rates, which hit small firms like Zeus the hardest. Advantages By joining the single currency, British businesses will benefit from a fixed exchange rate allowing businesses to plan and budget for future activities more accurately. Fixed exchange rates will deliver stability and increase confidence that will lead to more investment and jobs. By staying out of the Euro Britain will be at a disadvantage to competitors in the Eurozone who already trade with each other using the same currency. The development of free trade has contributed enormously to the economic prosperity across the EU, with the strong position of the wealthier nations and helping to bring the poorer nations more stability and economic success. The introduction of a single currency removes one of the final barriers to free trade i.e. the transaction costs and the uncertainty involved in currency conversion. The removal of national currencies will encourage cross-border investment since the traditional reluctance of many investors to move their money into a currency other than their own will no longer be a factor. Businesses across the Eurozone will therefore be able to attract more investors from other Eurozone countries, and investment will be based on the competitiveness of a business rather than its nationality. This will increase the pressure on uncompetitive businesses to improve their efficiency. An increase in cross-border mergers and acquisitions will also lead to more streamlined and efficient businesses across the Eurozone. Disadvantages Most of Britain international trade is carried out in US dollars, a currency against which the pound has enjoyed far more stability than has the Euro. The fact that the pound has risen so much against the Euro since the Euros launch is a sign of the Euros weakness. Changeover to the Euro would be endured by all businesses in the UK, whether or not they trade with Eurozone countries. Most British companies, sell to local markets. These firms would still incur the costs of conversion and not see any benefit from the removal of currency transaction costs. While there would be a saving from the absence of currency transactions for exporters, these would be offset by the costs of the changeover. There have been fears that inward investment in British based industry would suffer as a result of staying out of the Euro, the reality has been very different. In 2001 the Office of National Statistics reported that inward investment in Britain for the 2000/2001 financial year was à ¯Ã‚ ¿Ã‚ ½341 billion, an increase of 36% over the previous year. The theory that a single currency will lead to the harmonisation and lowering of prices across Europe seems hard to support. Regional differences in prices are a result of differences in levels of taxation as well as variations in labour, property and transportation costs. The cost of living in different parts of the UK varies considerably, even though all regions share the same currency. Less scrupulous retailers would use the introduction of the Euro to round-up prices, just as they did during decimalization 30 years ago. How This Effects Zeus Being part of the EMU will benefit a small company like Zeus, (see advantages above) however, there are some other factors that Zeus need to be aware of. Promotion and packaging will also have to change. The language and content on the wrapping and will have to that of the country it is being sold in. Health and safety requirements of products would have to meet one standard rather then having to adapt products for different countries, however since Zeus currently trade mainly in the USA they would need to adapt their product to EU standards in order to trade within the community, which might be costly but beneficial. Cost of the Benefit If the UK were to join the EMU, cost increases and reductions will occur. Change of Equipment The costs for UK businesses of abolishing the pound and substituting the euro would be massive notes and coins would need to be replaced, along with cash registers, cash dispensing machines, accounting systems etc. The retail sector would have to undergo a complete renovation of cash systems. The costs of this changeover would affect all businesses in the UK, whether or not they trade with Europe and whether or not they will benefit. Consumers and businesses would have to pay for these costs through higher prices and taxes. It would take years before the trivial day-to-day savings on European transactions outweighed the costs of the changeover. More Competitive Markets The Euro ensures companies will face a more integrated European market. Cross-border trade and investment will be stimulated and competition strengthened in many markets. Businesses who see foreign exchange risk and transaction costs as barriers to cross-border trade are likely to move into new markets once these barriers are removed. New business start-ups may also be encouraged. Transparent Price Differences It will be possible to directly compare prices for the same goods and services in different EU countries and spot the best prices. Despite the SEM, price disparities persist as a result of differential pricing policies, tax rates, transportation costs, national market structures, and perceived product values. The ability for consumers to compare prices will move prices towards the lowest market level and businesses will find it hard to maintain pricing policies by country and currency. Treasury and Finance For many European businesses the Euro will present opportunities for long-term savings altering balance sheets, cash flow management, currency management, and corporate finance. Businesses with units operating in different currencies will be able to record and compare all accounting values, margins, costs, expenditures etc. in one currency. Such transparency may greatly assist in processes of internal planning, accounting, and benchmarking. Foreign Exchange Eurozone firms avoid the risk of exchange rate changes. Exchange rate movements dont impose a penalty but volatility in exchange markets and the unpredictability of rates can be costly. Many firms have opted to hedge exchange risks for long-dated transactions or included a margin in their prices to cover exchange rate movements. Under the single-currency, foreign exchange transaction costs are eliminated on internal dealings with benefits as much as 8% on the total price of industrial goods. Wage Transparency Employees will find it easier to calculate and compare wages between workers in different countries within the same company. Transparency of wages will bring salary convergence closer to reality and increase labour mobility. Variations in salary and remuneration exist today and workers always ask why are they paid that much over there when Im paid this much here?, firms can usually demonstrate difference in taxation, benefits, purchasing power etc. by country and currency. Organisations need to consider how to set fair and competitive remuneration packages in a Euro-denominated environment. Lower Borrowing Costs Its axiomatic with a single currency and single central bank that there will be a single interest rate. Banks will lend in Euros and enterprises will be able to borrow from outside their countries without incurring the risk of exchange rates, reducing borrowings costs. Cost savings may be greatest in countries where Euro interest rates fall below previous rates. The introduction of the Euro should favour the development of new financing methods. Overall, firms should have more choice and flexibility in raising finance and, in many cases, will face lower costs. How This Effects Zeus All these costs are going to affect Zeus and it might be a good idea for Zeus to look into these costs now, if they want to stay trading in years to come. Moving Production Many multi-national companies have expressed misgivings of Britain staying out of the Euro and state it could affect investments in British jobs. Companies want to know the value of the goods they sell from the UK will not decrease due to fluctuations in the exchange rate between Britain and the European countries and the cost of British labour will not rise significantly due to a strengthening pound. However, American, Asian and other foreign companies favour the UK as a base for their European operations because of factors such as culture, language, a de-regulated, business friendly environment, and low levels of taxation and corruption. EMU entry could reduce the cost of capital for UK firms if long-term interest rates fell within the EU and if membership of a larger financial market reduced the cost of finance. These costs could fall for SMEs in particular if joining EMU lowers the barriers which prevent SMEs accessing EU financial markets and lowers the cost of bank lending. Over time, EMU is likely to boost cross-border investment flows and foreign direct investment (FDI) in the Eurozone. The UKs share of total EU FDI flows has fallen, coinciding with the start of EMU, and a corresponding increase in the share of the Eurozone. But against the backdrop of many other influences on FDI flows, its difficult to say EMU has boosted FDI within the Eurozone. Successfully operating EMU and UK membership of it on the right basis, would boost FDI over the longer-term. The longer membership of the euro is delayed, gains of increased inward investment are postponed. If sustainable and durable convergence is achieved, then the quantity and quality of investment would increase. How This Effects Zeus If Zeus was to relocate to Europe, there would be decreased production, transport and currency costs however the initial outlay moving into Europe will be costly but allow Zeus to be in the market they wish to operate in. The skills and expertise of the workforce of that county may not have what Zeus require and may cost more money training employees to the standard required. Moving production into a different country may benefit the company as all countries have differing resources, like labour. Zeus will need to evaluate all the factors involved in moving production and decided wheather it would be beneficial for them. Expansion in Europe With more than half the UKs trade with the EU and increasing integration of product, labour and capital markets, the UKs economic interest is best pursued through a deepening cooperation with other European countries as part of the Governments commitment to a strong EU and a successful EMU. As the Prime Minister said in November 2002: We should have more self-confidence because we are a leading European power, always have been and always will be. However, there are implications to expanding a businesses share in the European market. The Governments objectives These global and European trends are mirrored in the Governments central economic objective for the UK to build a stronger, more enterprising economy and a fairer society, extending economic opportunity and supporting those most in need to ensure that rising national prosperity is shared by all. and strategy Stability, productivity and employment opportunity are the foundations of the Governments economic strategy. Since 1997, the Government has taken tough decisions and introduced wide-ranging reforms to establish a platform of economic stability and to promote work and enterprise, tackle poverty and deliver sustained investment to modernise public services. The Governments decision on UK membership of the single currency must contribute to these objectives. The benefits from adoption to the euro depend on trade integration between the UK and the Eurozone through the elimination of currency fluctuations and transaction costs. The UK has increased trade within the EU since joining. Chart 5.3 shows how UK trade with the EU has risen by 5%. The impact of EMU on UK trade, competition, productivity and growth thorugh substantial possible gains EMU membership could enhance productivity in the medium-term by increasing trade and investment and stimulating competition, also helping to promote economic reform in the EU and encourage specialisation in the longer-term. Therefore, EMU could effect the five key drivers of productivity. Based on broad-based evidence on the impact of trade, it seems reasonable to assume that each 1% increase of trade to GDP increases real GDP per head by at least 1/3 % in the long run and perhaps as much as 2/3 %. In a best case scenario, with stability through sustainable and durable convergence, a long-term increase in trade with the Eurozone at the top of the 5% to 50% range and increased investment spurring competition, UK output could be around 9% higher over 30 years within a successful EMU than outside. This could add around 1/4% a year to GDP growth. but not without sustainable and durable convergence Conditional on the achievement of sustainable and durable convergence between the UK and the euro area. Where it is not assured, the trade benefits from EMU would be likely to be at the lower end of the range, meaning gains to trade and competition from membership could be negligible. Estimates suggest a lack of flexibility and convergence in some EU countries. However, EMU has increased trade within the EU by 3% and 20% since 1999. Volatility and uncertainty resulting from EMU membership in the absence of sustainable and durable convergence could have a negative impact on the actual level of UK output in the long-term. The Governments strategy to tackle the barriers to productivity growth and close the productivity gap, involves continued microeconomic reforms in the UK to target the five key drivers of productivity combined with support at the European level for policies to strengthen competition and the Single Market. How This Effects Zeus Expanding into the European market place has two major implications that Zeus will need to consider. Firstly that since EMU, theres increased competitiveness within the EU and Zeus may find it hard to compete if their strategy and overall business is not strong. And when the 10 new countries enter the EU and join the EMU, it could decrease sales and profits even production as their economies are weaker then the rest of the EU and would affect Zeus expansion into Europe. Political Implications There are as expected, political implications to expansion into the European marketplace. In the UK, taxation on businesses is not as high as other EU countries, as the UK government want to promote economic growth. If the EU were to set the level of interest and taxation for all Eurozone countries it may not be beneficial for all countries or their goals. It could be seen as too much involvement and lack of sovereignty power and could cause bureaucracy and federalism. It could be argued that by joining the EMU the UK would lose its economic and political sovereignty; something the UK is not currently ready to give up for the euro and its benefits. To protect their own interests, countries can restrict imports by putting limitations, subsidies, quota or import duties to imports to protect industries. But this does nothing to protract free trade within the EU. Free trade was developed to increase political and economic stability within the EU. How This Effects Zeus Businesses like Zeus will need to consider political implications. Zeus will benefit from the movement of free trade within the EU, and the low taxation within the UK for businesses, however there are other political issues that Zeus will need to consider whether they stay in the UK or move into Europe. These are; o Social policies ~ health and safety standards, holiday/sick pay, working time directive, working conditions etc. o Environmental requirements ~ such as noise and pollution levels, safety fittings etc. o Technological ~ does the technology meet business requirements? do the workforce know how to use the equipment? etc. Recommendation I would recommend that Zeus stay in the UK. When the 10 new countries join the EU, EMU will be affected and it would be well advised to consider in the future expanding into Poland as they are in the centre of the EU and have a highly skilled and are inexpensive workforce to employ. Currently it would beneficial for Zeus to stay in the UK due to the governments objective to build a stronger economy. I would recommend that Zeus seriously look into moving or expansion into Europe and see how this mirrors with current and demand. Bibliography Books Palmer A, The Business Environment, 2002 Mercado S, European Business, Pitman, 2001 Piggott J, International Business Economics, 1999 Davison Purple, The European Competitive Environment, 1995 Websites www.bbc.co.uk/bitesize/business www.gov.org.uk www.offical-documents.co.uk HND UNIT 29: European Business

Wednesday, January 22, 2020

Summary of A Tale Of Two Cities :: essays research papers

Dr. Alexander manette was a prisoner in the Bastille for 18 years. He is released and taken back to London by Jarvis Lorry of Tellson Bank. Dr. Manette is a little crazy because of all the years he spent locked up in solitary confinement. He has a daughter, Lucie, who was a young girl when he was sent to prison. On a boat trip, Lucie meets a young man named Charles Darnay and is taken with him. They discuss the American Revolution. Darnay is a Frenchman, but he has relinquished the title of his nobility. He is tried for treason in England. However, Darnay's lawyer, Sydney Carton, points out that there is no way to prove that Darnay could have done it because the two men look alike and the witness could not say for sure that it was Darnay. Despite this brilliant defense (on which Darnay is released) Carton leads a solitary life of drunkeness, playing secone man to his boss, Stryver (who is by all means incompetent). By this point, Carton, Darnay, and Stryver all want to marry Lucie. She chooses Darnay and they are married. Right before the wedding, Darnay mentions to Dr. Manette that he has something important to tell him. Darnay tells him that he is Charles St. Evremonde, the nephew of the Marquis St. Evremonde, who was responsible for Dr. Manette's imprisonment. When Darnay tells him this, Dr. Manette falls back in to his stupor. Darnay is convinced by the Revolutionaries to return to France by a fake letter from an old servant. Upon his arrival, he is arrested for being an aristocrat, even though he renounced his property. Unfortunately, Darnay is not as lucky in his second trial. He is condemned mainly on the testimony of his father-in-law, Dr. Manette, who wrote a statement against the Evremondes while still imprisoned. He is sentenced to death. Out of love for the Manette family and Lucie in particular, however, Sydney Carton goes to Paris. He manages to smuggle himself into prison and Darnay out.

Tuesday, January 14, 2020

Amway in China: a Case of Corporate and Brand Reputation Essay

With the turbulent regulatory environment for the direct selling industry in China, the November 2005 announcement that Amway China Co. Ltd (ACCL) had over $2 billion in sales for the second consecutive year is significant for the multilevel direct selling giant, Amway Corporation. China remains the leading market of their worldwide operations even though direct selling was banned in 1998. Their success can be attributed to responses by the corporate and local management for adapting during the ten years of business operations in China. Eva Cheng, chairwoman of Amway (China) and an executive vice-president of Amway Corporation, told a press conference in Guangzhou, â€Å"We have been told to shut down five times and to change our way of doing business four times. We depend on product quality more than our business license.† New regulations in December 2005 will pose further modifications to the Amway business model in China. â€Å"Despite the uncertainty, ACCL performed admirably,† said Steve Van Andel, Chairman of parent company Alticor. â€Å"We continue to examine our future options in China in light of the new rules, which have yet to go in effect. We are very optimistic that China will continue to be our strongest performing market.† The Company Profile Founded in 1959, Michigan-based Amway Corporation is a large direct selling company of personal care, home care, nutrition and commercial products. It is a wholly owned subsidiary of privately-held Alticor, Inc. that operates primarily through Amway Corp; Quixtar Inc.,a North American Web-based business opportunity; and Access Business Group LLC, a product development, manufacturing and logistics provider to Amway, Quixtar and other companies. Alticor Inc. and its family of companies reported sales of $6.4 billion for the performance year ending August 31, 2005. Amway operates in more than 80 countries in Asia, Africa, Europe and the Americas. Products offered include brands such as Nutrilite vitamins and food supplements, Artistry skin care and color cosmetics, eSpring system, Magna Bloc therapeutic magnets and SA8 laundry system. Access Business Group manufactures Amway’s brand products in facilities in Ada (Michigan), Buena Park (California) and Guangzhou (China). Amway’s products and services are marketed through more than 3 million independent business owners (IBOs) and sales representatives worldwide through a multilevel direct selling model. Direct sales, as defined by the World Federation of Direct Selling Associations, is â€Å"a process involving the marketing of products and services directly to consumers in a face-to-face manner, away from permanent retail locations.† Annual worldwide sales in this sector are nearly US $90 billion, half of which are in the United States and Japan. In the United States, approximately 80% of direct sales are by multi-level marketing organizations, where salespeople are paid not only on their own personal sales, but also on the sales of other salespeople whom they recruit and train through up-line and down-line relationships. History of Involvement in China Amway (China) Co., Limited incorporated as a joint venture in 1992 and opened a 152,000 square foot manufacturing plant in the Guangzhou Economic and Technical Development Zone on January 18, 1995. The Amway operations in the People’s Republic of China are part of Amway Asia Pacific Ltd., a publicly traded company until becoming privately owned in 2000, that encompasses Amway businesses in Hong Kong, Macau, Malaysia, New Zealand, Taiwan and Thailand. Initial manufacturing for the Chinese market included five homecare household cleaning products, with personal care products introduced throughout the year. Amway China commenced sales operation in the Guangdong and Fujian provinces in April 1995. Following the multilevel direct selling model of Amway, a minimum monetary investment of approximately US$85 for married couples and individuals was required to establish their own business. New distributors received training and support from their sponsors and were encouraged by motivational programs and incentives. The total sales to the network that the distributor helped recruit, train and motivate was considered in calculating bonuses. Thousands of sales representatives registered during the first years, bringing Amway’s net sales in China to $178 million for fiscal year 1997. Until the 1990’s, direct selling was not an established method of distribution in China. Chinese officials interpreted the term for direct selling, â€Å"chuanxiao,† as â€Å"passing products from one layer of participants to another layer of participants, with the product price increased at each layer† which is not a factual representation of the business model of most direct selling companies. Meanwhile, illegal smuggling of imported products, mass meetings to recruit salespersons and â€Å"get-rich-quick† schemes generated attention of Chinese officials, resulting in the first national regulation on direct selling in 1994. These regulations focused on preventing fraudulent activities and set limits on advertising for recruits and compensation for introducing new sales representatives. In 1998 – after numerous attempts to address violations of the chuanxio regulations, and two highly publicized scams in Huizhou City and Xingsha – the State Council ordered all direct selling companies to cease operations, disband distributor networks, clean up debts, and modify its sales method. Response to restriction on direct selling Forced to restructure the business, Amway worked with the Chinese officials to implement a model that would allow sales representatives to continue participation in the business. â€Å"While we will have to make a number of changes in how we operate, in all of our discussions with the Chinese government it was essential that we retain the foundation of an independent sales force to service our customers,† said Richard DeVos, president of Amway Asia Pacific. Under the approved plan, Amway’s product distribution centers throughout China became â€Å"retail locations† with Amway branded products marked at retail price. Once a Chinese consumer bought Amway products for two consecutive, they became â€Å"privileged customers who buy Amway products at a 15 percent discount for their personal use.† These â€Å"privileged customers† could apply to Amway to be sales representatives to buy Amway products directly from the retail stores at the full price, paying with the customers’ money and delivering the products to customers. They received a 15 percent commission on sales to their customers. By establishing 180 company-owned retail locations by 2005, the plan allowed an estimated 180,000 direct sellers to continue to operate within what the company terms a mode of â€Å"selling through shops, plus the use of sales representatives.† However, the approval to continue business stipulated that sales representative income was based on individual results, not those of the team – a move intended to limit the attraction of forms of direct selling that might lead to pyramid frauds. In anticipation that the regulations may change, sales representatives continued to introduce others to the business while not receiving commission from their sales. Through obtaining appropriate business licenses, approximately 80,000 sales representatives became authorized agents whose compensation included both team performance and their own sales. Corporate Sponsorships Amway continued its tradition of involvement with the community through corporate sponsorships that enhanced its reputation in China. By the end of Aug 2005, Amway China supported over 1,800 charity projects in the areas of children, health and environmental protection. These projects resulted in earning over 1,200 honors and awards. The China Charity Association granted the company the award of Exemplary Benefactor to Social Welfare in 2002. For environmental initiatives, the Chinese Ministry of Land and Resources awarded Amway China the title of â€Å"Model Enterprise for Protecting Earth’s Resources† in 2002. Other rewards include: â€Å"Star Enterprise to Contribute to the Public Welfare† by China Children and Teenagers’ Fund, â€Å"Advanced Enterprise for Excellent After-Sales Service and Product Quality† by China General Chamber of Commerce in 2003. In 2004, Fortune (Chinese Edition), listed Amway China as one of the â€Å"Most Admired Companies,† Most Influential MNC, and Most Influential Brand. Brand Positioning According to John Parker, Chief Marketing Officer of Amway Corporation, Amway views their product portfolio in terms of the way in which products support the business opportunity to enable the independent business owners to recruit, to retail, and to qualify for higher award levels. Without multilevel direct selling in China, the focus is on creating a portfolio of products and brands with a price/value relationship that allows sales representative to succeed in developing customers. Amway China produces and markets more than 160 products, including Nutrilite( food supplements, Artistry( skin care and cosmetics, personal care and home care products. To make the brand more visible and make it easier for the sales representatives to sell products to the customer, Amway China invested over 30 million US dollars for advertising in 2005. Amway broadcast films of Artistry cosmetics and Nutrilite nutrition products in 1,500 business buildings throughout China and more than 4,000 liquid crystal display televisions in Shanghai’s underground carriages. Artistry was the title sponsor bringing â€Å"The Phantom of the Opera† to Shanghai. Sponsorship of the first health runs to take place in China has coined the term â€Å"Nutrilite Health Runs† for what most countries would call 10K or marathons. For the Chinese, the Nutrilite brand has become synonymous with fitness and activity. According to the Euromonitor, Amway China was the fourth largest company in cosmetics and toiletries sales in 2005 – with a 5% market share overall. The cosmetic brand Artistry was second in overall cosmetic brand share, with 4.3%, closely following Procter & Gambles, Olay brand with 5%. It is the second largest in Color Cosmetics with 7.5% market and brand share in all regions of China. In the over-the-counter healthcare category, Amway held an overall value share of nearly 19%, far exceeding that held by the next closest competitor. Amway was the top performing player in vitamins and dietary supplements in China, capturing over 25% of vitamins and dietary supplements in 2004. Nutrilite, was the leading brand with value share of more than 13%, including the best selling brand Nutrilite Protein Powder, and its multivitamins and other dietary supplements, such as calcium and fish oil. In the home care products, Amway China is not a major player, with 0.1% of the overall market, however have brand recognition and share in laundry care and dishwashing products. The laundry detergent, SA8, is ranked ninth in the nation with 0.5% brand share and Dish Drops is ranked eleventh with a 1.1% brand share. Commitment to product development for the Chinese market includes seven laboratories for quality assurance and two research and development centers in Guangzhou and Shanghai. The Company has been awarded the Advanced Technology Enterprise for three times from 1996 to 2002. In 2004, Amway increased its investment in China by US$120 million to set up a research and development center in Shanghia to explore introducing herbal medicinal elements to its products. Continuing lobbying for resumption of direct selling in China Recognizing the large potential of direct selling in China, Amway participated in efforts of the American Chamber of Commerce, the US-China Business Council, and the World Federation of Direct Selling to lobby for Chinese participation in the World Trade Organization (WTO). Most importantly, Amway’s chairman Steve Van Andel addressed the U.S. House Ways and Means subcommittee to urge China’s accession, in order to normalize trade relations with China on a permanent basis as well as to gain trust from Chinese government. China’s accession into the WTO in 2001 was expected to help improve the environment for direct sales in the country. China committed in their WTO agreement to allow market access for â€Å"wholesale or retail trade services away from a fixed location,† requiring China to fully open up the direct sales market by December 11, 2004. After much delay, the new regulations announced in September of 2005 permit direct selling in China with a number of restrictions. The most detrimental to the multinationals in the market is that the new law defines all multi-level marketing compensation structures as illegal chuanxiao. The new regulations also impose training restrictions that all salespersons will be required to pass an examination and be certified, as well as limit sales representative compensation to 30% of personal sales. Three other requirements to obtain approval include 1) three years of foreign operating experience before being allowed within China 2) â€Å"service centers† in every province where product is sold and 3) a minimum bond of 20 million RMB plus 15% of monthly sales up to a maximum of 100 million RMB. Upcoming challenge Amway China admits that the transition to comply with the new regulations will take time given their position as the largest direct selling company in China, with 50% of the market and more than ten times the sales volume of competitor Avon. The company can continue operating under its current approval while evaluating changes needed to meet the expectations of the Chinese government and therefore are not concerned that Avon was first to receive approval from the Ministry of Commerce to engage in direct selling in China. Under the new legislation, sales representatives may sell products outside of a fixed retail location, providing Amway representatives further opportunities to generate sales. Additionally, lifting restrictions on imported products may allow Amway China to access over 450 kinds of goods from its parent company. The continuing ban on multilevel direct selling will be the most challenging aspect of Amway’s response to new regulations. Amway’s success worldwide relies on a motivated sales force through multilevel compensation. One authorized sales agent of Amway in China is quoted as saying â€Å"We still face a huge challenge in China, because multilevel marketing is where the real profits lie.† The 180,000 Amway sales representatives in China look for the company leadership to consider their interests while pursuing solutions that meet the new regulations. Eva Cheng states â€Å"We will review the nature of the authorized agents’ jobs and make whatever modifications are necessary to ensure the company’s marketing activities are not open to allegations of chuanxiao.† Questions for Discussion 1. Who are the stakeholders for Amway in China? How would a stakeholder analysis help in developing a communication strategy? What is your recommendation for a communication strategy during this transition period? 2. Why is it important for Amway to be good corporate citizen in China? Can â€Å"doing good† overcome negative or inaccurate perceptions of the direct selling industry in China? 3. To what degree has Amway standardized its brand globally? How has it adopted its promotion strategy to local conditions in China? 4. What options does Amway have to address the new regulations on direct selling in China? What are the advantages and disadvantages associated with each? Sources Amway Fact Sheet, Alticor Fact Sheet, Amway China Fact Sheet. â€Å"Amway Regulates Agents in China Market.† Alestron (March 8, 2006) â€Å"Amway Starts Promotion in China.† Alestron (May 14, 2004): â€Å"China on Verge of Opening Vast Market for Direct Selling.† Nutrition Business Journal 10, 4 (2005): 9-12. Chung, Olivia. â€Å"First Law of Direct Sales: A Clear Ban on Multi-Level Marketing in China Will Mean Harder Times for Amway and Avon.† The Standard, September 26, 2005. â€Å"Cosmetics and Toiletries in China (June 2006).† Euromonitor. â€Å"Direct Sales in China.† Washington, DC: World Federation of Direct Selling, 2005. Gee, Pauline. â€Å"Fighting fit: amway has had to persevere in China but its determination to succeed there means it now holds an enviable position. (Country Report: China).† Soap, Perfumery & Cosmetics Asia (Nov 2002): 15(1). Ho, Herbert H. The Development of Direct Selling Regulation in China, 1994-2004. Washington, DC: The US-China Business Council, 2004. â€Å"Household Care in China (October 2005).† Euromonitor. Jun, Lin, and Rebecca Karnak. â€Å"At Last, Progress on Direct Selling.† China Business Review, Nov/Dec2005. MacLeod, Calum. â€Å"China’s New Rules Open Door to Amway, Avon, Others.† USA TODAY, November 30, 2005. â€Å"OTC Healthcare in China (December 2005).† Euromonitor. Ostroff, Jim (1998), â€Å"Amway Slated to Resume Its Operations in China.,† WWD, 175 (144), 28(1).

Monday, January 6, 2020

Analysis Guernic Testimony Of War - 1555 Words

The first piece of artwork I would like to talk about from Picasso is one that many people may be familiar with and has the name â€Å"Guernica†. This work was created in Picasso’s Paris studio in 1937 (Guernica: Testimony of War†). This piece in an oil on canvas painting, and currently is on display at Spain’s national museum, Reina Sofà ­a, a museum of modern art. The entire painting is twenty-five foot, five and three-quarter inches long and eleven foot, five and a half inches tall. This painting depicts a horror that happened in Guernica, Spain on April 28, 1937. The city was bombed for about three hours and no apparent reasoning was behind it. The painting has recognizable faces on many of the objects here. To the right of the painting†¦show more content†¦An anguished horse cries out in the center of the painting and off to the left, a bull looks stunned. A mother is visible, on the left, holding on to what appears to be a child, most certai nly hers, as she sobs over her lost one. This painting seems to be stationary with no constant movement. Being that all the figures overlap, no depth feeling is created by this painting. All the figures in this painting represent the people of Guernica that day, and the feeling they all have of the losses they encountered and the horror that is felt within. Looking at this piece of artwork gives me a sad and mourning type of feeling. When I look at this painting, one thing pops into my head and this instance is one we can all relate to in one way or another. The image or situation that this makes me think of is the attack on our World Trade Center. Seeing all the faces of the individuals in the painting turns into the faces of real individuals who were holding their loved ones, or who did feel the terror that had just happened. This painting can also be related to the things that happen each and every day in our lives. Between the men and women fighting our enemies, to even things that happen in our own streets. Someone may be feeling this type of sorrow at every given moment of the day. This work does not relate to any of my other studies, however. In my