Finance in International Markets Essay Example for Free

Finance in International Markets Essay Describe the tradeoffs that are involved for each method (such as exporting, direct foreign investment, etc. ) that Snyder could use to achieve its goal. ANSWER: Snyder can export the clubs, but the transportation expenses may be high. If could establish a subsidiary in Brazil to produce and sell the clubs, but this may require a large investment of funds. It could use licensing, in which it specifies to a Brazilian firm how to produce the clubs. In this way, it does not have to establish its own subsidiary there. b. Which method would you recommend for this firm? Justify your recommendation. ANSWER: If the amount of golf clubs to be sold in Brazil is small, it may decide to export. However, if the expected sales level is high, it may benefit from licensing. If it is confident that the expected sales level will remain high, it may be willing to establish a subsidiary. The wages are lower in Brazil, and the large investment needed to establish a subsidiary may be worthwhile. 15. Impact of Political Risk. Explain why political risk may discourage international business. Some foreign projects would have been feasible if there was no political risk, but will not be feasible because of political risk. 17. International Joint Venture. Anheuser-Busch, the producer of Budweiser and other beers, has recently expanded into Japan by engaging in a joint venture with Kirin Brewery, the largest brewery in Japan. The joint venture enables Anheuser-Busch to have its beer distributed through Kirin’s distribution channels in Japan. In addition, it can utilize Kirin’s facilities to produce beer that will be sold locally. In return, Anheuser-Busch provides information about the American beer market to Kirin. . Explain how the joint venture can enable Anheuser-Busch to achieve its objective of maximizing shareholder wealth. ANSWER: The joint venture creates a way for Anheuser-Busch to distribute Budweiser throughout Japan. It enables Anheuser-Busch to penetrate the Japanese market without requiring a substantial investment in Japan. b. Explain how the jo int venture can limit the risk of the international business. ANSWER: The joint venture has limited risk because Anheuser-Busch does not need to establish its own distribution network in Japan. Thus, Anheuser-Busch may be able to use a smaller investment for the international business, and there is a higher probability that the international business will be successful. c. Many international joint ventures are intended to circumvent barriers that normally prevent foreign competition. What barrier in Japan is Anheuser-Busch circumventing as a result of the joint venture? What barrier in the United States is Kirin circumventing as a result of the joint venture? ANSWER: Anheuser-Busch is able to benefit from Kirin’s distribution system in Japan, which would not normally be so accessible. Kirin is able to learn more about how Anheuser-Busch expanded its product across numerous countries, and therefore breaks through an â€Å"information† barrier. d. Explain how Anheuser-Busch could lose some of its market share in countries outside Japan as a result of this particular joint venture. ANSWER: Anheuser-Busch could lose some of its market share to Kirin as a result of explaining its worldwide expansion strategies to Kirin. However, it appears that Anheuser-Busch expects the potential benefits of the joint venture to outweigh any potential adverse effects.

Automobile Ads Analysis - Hummer H3 V8 :: Advertising Branding Analysis

Creative concept: I liked the creative angle that was given to the brand. As a brand with so much emotional capital, it was well employed to create a no-frills ad that spoke little and yet had an impact. A very visually strong ad too. I liked the light balance that has been used, especially on the product. Bold, in- your- face and prestige were the key elements that I feel come across strongly. The headline is very creative, commands respect. If I were to put myself in the shoes of their TA, I would definitely be enticed to go for a test drive or check out the website for more information. The creative concept also banks upon the aura of mystery that it creates with the little information it gives out and the dramatic visual of the product. A good concept that was well Ââ€"executed, for a good final effect. The idea of replicating the black lines on the left hand side of the page, reminiscent of a typewriter is very well done. It lends an old-school feeling to the ad, but also brings in the toughness factor, that is a core Hummer attribute. Layout: The layout of the ad is impressive, attention grabbing and bold. The movement of the eye from the Headline to the tagline and the image is smooth and seamless. It is a bleed layout. Visual: The visual is very strategically placed on the bottom right of the page. The ad features a signature shot of the front grille, dead center, shot from a low angle and angling up. Very aggressively presented, letting the product speak for itself and creating an aura of mystery. It lends prestige and boasts of power for a brand already associated with ‘ruggedness' and as a ‘true-blue off-roader' drive. The lack of color, except black and a little yellowish gold in the headlights is instrumental in giving the car the physical properties of power, no-nonsense and toughness, that could eat up the competition for lunch.. Except for the front bender, the rest of the car is silhouetted in the dark. There is a sort of typewriter feel given to the image. As if it's breaking news being sent out. Headline: ‘The Mountain came to the Alpha.' Creatively, it is a strong statement that complements the image completely. The font is black and big, which works perfectly, off-setting the white balance in the ad.

Kfc Markting

ESTEL Frame work: In Macro environment there are many factors that will effect the decision making in any organisation. To overcome and analyse these factors organisation can categories it in to PESTLE model which is considered as below. The macro-environmental or external factors of KFC can be identified by using PESTLE analysis which stands for Political, Economic, Social, Technology, Legal and Environmental. Political factors:This factor mainly deals with the government policies and procedures which is worked out through legislation and consists of all legal factors such as How stable is the political environment? Government position on market ethics Government view on culture and religion Government policy on Economy Taxation policy on tax rates and incentives These are some of the political factors that include legal issues, government implementations and define both the formal and informal rules under which the organization must be operated. Economic factor:KFC organization is affected with national and global economic factors such as Cost of labour, Interest and Inflation rates, Economic growth rates, Business cycle stage (e. g. recession, recovery) and Unemployment rates. Due to recession the income of the KFC has consistently dropped down and most of the employees were jobless and the rest employees were employed for very few hours also the organisation had to cut down their budget. Social factor: It includes the cultural and demographic aspects of the external macro environment.The potential of the employees who come from different back grounds and work together in the KFC and customer trends and aspect which the KFC has to consider as per their needs and wants of the customer such as changes in lifestyles, Level of education, Value in society, Demographics (age, sex, race etc. ,) and Change in consumer needs and wants. The U. K people are mostly dependent of the fast food centres as they find very busy with their schedules. Technological factor:This factor is the major driver of globalization which reduces the minimum efficient of production levels and some of the technological factors are recent technological developments, Rate of technology changes, Alternative way of providing services, New discoveries, Communication technology. The technology has now become the most important aspect in KFC as when the customers are mostly delighted and satisfied with service including latest technology that is available in the KFC. The latest Technological methods that are used to serve the customer faster are such as digital screens, wireless headphones for the staff, cooking utensils.Legal factor: The KFC has to maintain the rules and regulations related to the hygiene factors such as like employee proper training regarding the food and safety, personal hygiene, clean work environment and proper use of the utensils. This also deals with the legal environment in which the firms operate like the U. K has come up with the introduction of age discrimination legislation and increase in the minimum wage and greater requirement of recycles. When speaking about the hygiene it’s a very true example were KFC had to bare the high penalty because of failing in maintaining food hygiene. A Kentucky Fried Chicken restaurant at the Hernston Business Park in Bridgend has been fined a record ? 24,000 plus costs of ? 2,000 after pleading guilty at Bridgend Magistrates Court to multiple food hygiene offences – the largest penalty handed out to date for such offences in Bridgend County Borough. Bridgend County Borough Council brought two prosecutions against KFC (GB) Ltd resulting from inspections completed by the Public Protection team on 25 September 2005 and 22 May 2006. † Ref: http://www. bridgend. gov. k/web/groups/public/documents/press_release/018326. hcsp http://www. oup. com/uk/orc/bin/9780199296378/01student/additional/page_12. htm Environment factor: KFC by considering the environmental factor has proved t o be quite friendly towards environment where it uses the paper material for the food and services carrying instead of plastic to help in reducing the global warming though it cost very high for the organisation to adopt paper materials such as paper plates, paper boxes for food parcel, glasses and cups etc. 3. The Swot Matrix The SWOT analysis is an extremely useful tool for understanding and decision making for all sorts of situation in KFC organisation. The SWOT is acronym for Strengths, Weakness, Opportunities, Threats. SWOT provides a good frame work for reviewing stratergy, position and direction of a company or business proposition. Need an essay? You can buy essay help from us today!

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