Cultural Differences in International Marketing

Cultural Differences in International Marketing 1.0 INTRODUCTION The past few decades has witnessed a growing number of businesses expanding their operations internationally. This expansion has led to a number of marketing strategies been adopted by international marketing managers regarding marketing internationally. For business to operate an international market successfully, they must understand cultural differences in their target countries respectivey. Managers need to broaden their perspective,adapt to other cultures,and make decisions that reflect the needs and desires of those cultures. (Rugman Hodgetts 2003 p 126). This discussion critically gives an insight into cultural differences, conceptualization 1.1 CONCEPT OF CULTURE Culture is a complex term that composes of different definations. Several Authors have given various definations of culture. Hofstede (1980,p87) defined culture as the collective programming of the mind which distinguishes members of one human group from the other. Leung et al(2005) also defined culture as the values,beliefs,norms,and behavioural patterns of a national group. According to Yapraka (2008), Nakata and Huangs(2002) definition of culure as that complex whole which includes knowledge,beliefs, arts, morals and habits acquired by man as a member of a society defines culture from an international marketing perspective. He further said that this beliefs, customs and habits influences an international marketing managers thinking when adopting marketing strategies and adapting marketing mix.Thus Understanding culture is critical to International marketing mangers when developing marketing policies to suit a particular target market in a country. Earlier studies on culture research focused on Gert Hofstedes four cultural dimensions and Halls High and low context culture( yakram 2008). According to yakram( 2008) article, Nakata and sivakuman(2001) developed a conceptual framework of how the concept of marketing can be applied in multinationals through hofstedes cultural dimensions. Similarly, Rutson et al (1997) suggested that national culture plays has a huge impact on work values. He futher stresed that International managers must understand that the determinant of the success or failure of a product depends on how marketing decisions made interact with the culture of a country. For example, Kentuck Fried Chiken must realize that they way it prepares its chiken in USA for instance may not work in Islamic countries due to religious beliefs and customs. 1.2 CULTURAL FACTORS THAT AFFECTS INTERNATIONAL MARKETING Terpstra sarathy (2000) stated that Understanding the cultural environment of a country would assist marketers to adapt their marketing strategies if they take the ingredients(elements) of culture into consideration.The elements comprises of language,,religion,values attitudes, education, social organizations,law politics, Material culture and aesthetics. This elements are essential ingredients that affects the international marketing managers thinking. 1.21 Language According to Terpstra sarathy (2000, p95) Language is a distinct cultural difference that must be dealt with. Therefore for international businesses to interact with employees, onsumers, customers they must understand the local language. (Terpstra sarathy 2000) Studying a foreign language is an essential tool for obtaining information about a country. If a foreign country that has several spoken languages it therefore has several cultures. In Nigeria, they are 3 main languages, and over 50 local languages. This languages are attributed to different cultures. However, language could pose a barrier for international marketers if they are several languages spoken in one country. For instance, marketing is highly dependent on communication so it would be difficult for markerters to advertise , brand and package their products. If managers cannot speak and understand the local language it would be difficult for them to promote their products to their target audience. Another problem could arise in wrong interpretation .Taking a look at KFC in china where English is not spoken, Management need to train and employ the locals of china in other successfully establish their market. 1.22 Religion Religion is another aspect of culture that multinationals handle with caution. Various religions have impacts on consumer behavior and purchasing patterns of a country. In the middle east and Arabic countries Islam is the religion. According to Terpstra Sarathy (2000) Introducing new products in the an Islamic environment could be difficult. Religious holidays or festivals such as Ramadan are strictly adhered to. Religion is important to Managers because it influences lifestyles, beliefs, values and attitudes. It also affects work and societal customs as well as politics and business in general. According to Wind Douglas (2007) in thier article on International marketing segmentation, Difference in beilef systems between cultures may affect consumer behavior and purchasing patterns Dietry laws associated with one religion could affect marketing of food products and service delivery. (Wind Douglas 2007) For example, According to Islamic religion, a chiken must be drained of blood b efore it is cooked or prepared( Halal).It is believed that eating a chiken with blood could affect your spirituality and deeds in islam. This affects the marketing mix of Fastfood companies that are based in Islamic countries because they have to abide by the Islamic law. Hence religion affects international marketing in a number of ways. The economic role of women in Islamic countries could affect advertising. 1.23 Aesthetics . Acoording to Rugman Hodget (2003 p.131), Aesthetics refers to artistic taste of a culture. This taste could in forms, colours,music, design or packaging. Aesthetics values vary depending on the country. International companies need to be aware of the different taste in culture. This is because what is generally accepted in one country may be a taboo in another country. Aesthetic values have an impact on the production and packaging designs of manufacturing industries that operate abroad. International managers need to be aware of taste in colors and symbols when packaging and distributing their products. In 2006, KFC was heavily criticized in china for dishonouring culture by adversing an old Taoist surrounded by his followers holding a chiken burger and claiming it as a master piece. This caused KFC to change its advertising method. Source(www.newsgd.com) ÂÂ ­ 1.24 Customs and manners Customs and manners have a significant impact on consumer behavior, consumption patterns and product packaging. ÂÂ  In the United States and Europe black is used for mourning the dead, while in Japan and the Far East white is the color used for mourning. In countries where status quo is higly regarded, Multinationals have to send a delegation of senior staff to carry out a business negoitation. Morality is another thing that differentiates cultures.What is viewed as moral in country may be vied as highly immoral in another country. For instane, USA it ispermitted for Man and woman to dress half naked on the beach whereas in Arab countries, women are not permitted to reveal their faces when going out. 1.25 Values and Attitudes Values are shared beliefs or group norms that have been internalized by individuals.( Czinkota,M et al 2001,p45) An attitude is a persistent tendency to feel and behave in a particular way towards an object( Rugman Hodgetts 2003,p129). Values and attitutudes vary between and within countries.In that case International markerts need to adjust their promotion methods or brand messages. 1.3 CULTURAL DIMENSIONS Over the last two decades, several researchers discovered different dimensions to culture. Geert Hofstede proposed four dimensions to culture, which comprised of collecting data( questionnaire) from over 40 countries. Halls also developed the high context culure which is characterized by less verbal communication, family ties, long term relationship( collectivism) and the low context culture which is characterized by more interpersonal relationship. (HallHall 1986) In this discussion, Hofstedes cultural dimensions and Halls high and low context will be analyzed in four countries, namely United kingdom, Australia, china and India because of the cultural similarities and differences between this countries. 1.4 HOFSTEDES CULTURAL DIMENSIONS Geert Hofstede, a dutch scholar discovered four cultural dimensions which is now used as a framework for understanding differences in national culture in different countries of the world today. In my research, I discovered his dimensions to culture had strengths and weaknesses. Hofstedes cultural dimesnsions didnt focus different cultures that exist within a country. In countries like Italy, Canada, and Nigeria, different norms, values, and languages are present. This dimensions to culture only analzed people of a particular country not people within a country. To further buttress my argument,Galit Alion(2008) critized hofstedes observations. He argued that analyzing and gathering results of research on culture from a single multinational(IBM) cannot be applied to the national level.He further refuted hofsteds methodology by saying it was invalid.Hofsteds research was carried out from an organizational perspective rather than a country level perspective. Similarly, Professor Benden mcsweeney in the article Hofstedes model of national cultural differences and their consequences.. A triumph of fate,A faluire of analysis critized Hofstedes cultural dimensions. He argued that IBM as a micro- location in a nation is not typical of a nation itself. According to him, Surveys are not an appriopate way of determining cultural differences and every individual in a nation cannot share the same national culture.(www.geert-hofstede.international-business-center.com) Regarless of the weakness of Hofstedes models, it is still an important framework in determining cultural differences. We will now look at the five(5) cultural dimensions of hofstede 1.41 POWER DISTANCE According to Hofstede (1980) Power distance is the extent to which the powerless members of rganizations and institutions accept that there is inequality in power. In Hofstedes model, he revealed thatin countries characterized by high power distant cultures, social stautus or satus quo is very significant and priveleges are expected for people in authority. On the other hand, In low context cultures,the interdependence between people in power and the less powerful. High power distance includes countries like France, India, Nigeria, china and arab nations while low power distant coutries include USA,UK,Sweden etc Looking at figure 1.2( Australia) and figure 1.3(UK) . Both countries have a low power distance of 30 which implies that the gap between the those in power or authorithy and the ordinary citizens is little comapered to china (75)and India(72). For example, For KFC an American company to be sucessful in india, They must be a high gap difference in power, respect or authority between Management and surbodinates. 1.42 UNCERTAINTY AVOIDANCE This deals with a socities tolerance for uncertainty and ambiguity.(www.geert-hofstede.com). This dimension indictes how people in a particular culture are willing to accept change. It also shows the extent to which people of a culture feel in umcormfatabe or comfortable circumstances. Hofstede (1980) stated that uncertainty avoiding cultures always are not receptive to change and strictly adhere to laws,rules and safety measures. On the otherhand,Uncertainty accepting cultures are more receptive and open to change or new ideas. In Hofstedes Uncertainty avoidance index(UAI) china scored 60, while UK scored a low score of 30. This implies that International marketing managers in china,will avoid making risky marketing decisions otherwise it might adversely affect their employees. It is therefore expected that Chinese employees work effectively under a formal setting as against an informal setting. In contrast,the UK employees would work better in an informal setting with less strict laws and will readily accept change and risks. Therefore marketing managers need to be careful not to impose rules or laws unnecessarily when dealing with low UAI countries and Plan ,prepare, and focus on strategic and tactical part of a project. 1.43 MASCULINITY AND FEMINITY Masculinity refers to the distribution of roles between men and women and how much a society sticks with gender roles.(www.geert-hofstede.com). His studies further revealed that women roles differ less among socities than mens roles. He also revealed that mens values from various countrues have an assertive approach in business which differentiates it from womens norms and values which is have a caring or modest attitude in work,(www.geert-hofstede.com) In hofstedes Mascuniity index, Australia scored a highscore of 55 while UK sored 60.This means that they share similarities in work values.They both have a moderate masculine culure where men and women work equally in many preferences. 1.44 INDIVIDUALISM AND COLLECTIVISM This dimension focuses on the relationships between individuals and groups. Collectivism is the degree or extent to which individuas are integrated into groups while individualism on the other hand focuses on individual taking care of himself.( Hofstede 1980) In comparing two countries that have high individualism and low individualism, Figure 1.2 and Figure 1.4 we will look at austraia and China. According to Hofstede, china has a low score of 10 which makes it a highly collectivist country while Australia has a high score of 90 which makes it a highy individualistic society. The former fall under a low context culture while the latter falls under a high context culture. For International managers , this implies that in china(collectivist) society, hiring and promoting an employe must be ingroup based while In Australia, emoployee recruitment and promotion must be based on individual skills.ÂÂ  on the one HOFSTEDES CULTURAL DIMENSION Figure 1.2 Australia and United Kingdom Source: http://www.geert-hofstede.com Figure 1.3 China and India SUMMARY This discussion has been able to look at how culture could affect International marketing. For international marketing mangers to succeed in an international market they must Respect the culture of their target country Understand that differences exists within each culture Understand the importance of language when marketing internationally Acknowlege the differences in religion,

Cultural Analysis On Death And The Afterlife :: essays research papers

If there is one constant in this world, it would surely be death. Dying is an unavoidable part of life. Indeed, everything that lives will at sometime die. The fear of death is held by everyone. Perhaps it is the correlation of death with pain or the unknown state of the human consciousness after death, maybe a combination of both, that creates this fear. The fear felt is undoubtedly universal, however, the ways in which it is dealt with are varied and diverse. The concept of human mortality and how it is dealt with is dependent upon one’s society or culture. For it is the society that has great impact on the individual’s beliefs. Hence, it is also possible for other cultures to influence the people of a different culture on such comprehensions. The primary and traditional way men and women have made dying a less depressing and disturbing idea is though religion. Various religions offer the comforting conception of death as a begining for another life or perhaps a continuation for the former. Christians, for example, believe that souls that have lived by the words of their God will exist eternally in heaven as divine beings themselves. This conception of an afterlife is generally what we people who are residents of the Unitied States hold to be true. For American culture has its roots in Europe and European culture was and is still influenced by Christian faiths. Similar to Christianity, the Hinduism also eases the fear of death by presenting a life after death. Disimilarities present themselves in the two faiths concerning exactly what kind of afterlife is lived. Believers of the Hindu faith expect to be reincarnated after their demise, either as an animal or human being depending on the manner in which their lives were carried out. These ideals have influenced our culture though our use of language and thought. The implications are apparent in the common references to one’s past lives. For instance, if someone has a natural talent for music one may refer to the person as being once a talented musician in a past life. A religion which describes death as a continuation of existance is held by the Crow tribe of middle America. They viewed death as a journey with the final destination as a place where all their anscestors have gone before them. This notion of an afterlife eased the tribes assimilation into Christian culture when colonists came in contact with the Native Americans during the colonial expansion period.

Chernobyl, Ukraine - Nuclear Power Plant Meltdown :: essays research papers

Chernobyl, Ukraine Nuclear Power Plant Meltdown   Ã‚  Ã‚  Ã‚  Ã‚  The accident at the Chernobyl Nuclear Power Plant in Ukrainian produced a plume of radioactive debris that drifted over parts of the western USSR, Eastern Europe, and Scandinavia. The accident, which occurred on April 26, 1986, was the worst nuclear power accident in history. Large areas of the Ukrainian, Belorussian, and Russian republics of the USSR were contaminated, resulting in the evacuation of roughly 200,000 people. The accident raised concerns about the safety of the Soviet nuclear power industry, slowing its expansion for a number of years, while forcing the Soviet government to become less secretive.   Ã‚  Ã‚  Ã‚  Ã‚  The Chernobyl’ Nuclear Power Plant was one of the largest in the USSR. It was located just outside of the town of Pripyat’, about 18 km northwest of the town of Chernobyl’. The plant was only 16 km from the border between the Ukrainian and Belorussian republics and roughly 110 km north of Kiev, the capital and largest city of Ukraine. Construction of the plant began in the 1970s, with reactor No. 1 commissioned in 1977, followed by No. 2 (1978), No. 3 (1981), and No. 4 (1983). Each reactor had an electricity-generating capacity of 1,000 megawatts, and the four together produced about 10 percent of Ukraine's electricity at the time of the accident. Two more reactors (No. 5 and No. 6, also capable of producing 1,000 megawatts each) were under construction at the time of the accident. On the morning of April 26, 1986, reactor No. 4 was operating at very low capacity (6 to 7 percent) during a planned shutdown. Plant personnel intended to monitor t he performance of turbine generators, which supplied electric power for the plant’s own operation, during a changeover from standard to a backup source of power. The reactor’s design made it unstable at low power, and the operators were careless about safety precautions during the test. After a sudden power surge, two explosions destroyed the reactor core and blasted a large hole in the roof of the reactor building. Radioactive debris moved up through this hole to heights of 1 km.   Ã‚  Ã‚  Ã‚  Ã‚  An estimated 100 to 150 million curies of radiation (primarily radioactive isotopes of iodine and cesium) escaped into the atmosphere before cleanup crews were able to bring the fires under control and stabilize the situation two weeks later. Prevailing winds carried the radioactivity northwest from the plant across Belorussia and into Poland and Sweden, where heightened radiation levels detected on April 28 first brought the accident to the world's attention.

Levinas on the Border(s) :: Teaching Education

Levinas on the Border(s) ABSTRACT: This essay explores my own situation of teaching philosophy in a more or less traditional undergraduate setting but in a way that is especially relevant to the theme of this Congress, namely, the theme of "philosophy educating humanity." In my case, I teach philosophy but from a perspective that is non-traditional and which undercuts the standard questions originating from and orienting around a "philosophia perennia." Specifically, I teach philosophy of religion from the perspective of Jewish philosophy, and even more specifically, from the perspective of the French Jewish philosophy of Emmanuelle Levinas. Moreover, I teach philosophy in an educational environment that is representative of the greater global community because I teach at the University of Texas at El Paso, situated on the border that separates the United States and Latin America. Finally, my teaching situation is one that is further marginalized because of the precarious nature of my academic position, name ly, trained outside the traditional borders of philosophical faculty and working at first as a part-timer and only recently as a full-time, non-tenure track teacher of philosophy and humanities. Hence, I offer my experience of doing work of successfully teaching philosophy "on the borders" in the hope that others gathered here will be challenged to think differently about their own way of educating others. What follows is about teaching the philosophy of Levinas, on the Mexico/USA border, on the border of a traditional discipline of philosophy (the philosophy of religion), and on the border of academia--as a non-tenure-track, non-traditionally trained Lecturer in Philosophy and Humanities at the University of Texas at El Paso. The relevance of these three interrelated themes for the Twentieth World Congress of Philosophy, whose theme is "Philosophy Educating Humanity," should be at least initially obvious, but a few preliminary remarks should clear up any confusions about my title. Most important of all, my scope is broader and deeper than the stated regional or academic limits. I contend that how I do what I do where I am at, and with whom I teach and learn has inter-national and inter-cultural significance which justifies inclusion of my remarks in an international Paideia forum. As a non-Jew with a degree in Religious Studies, I teach the philosophy of Levinas, a French-Jewish philosopher, in a relatively traditional Program of Philosophy to Spanish-speaking-Mexicans, Mexican-Americans, and Anglo-Americans. Moreover, I do so in the predominantly Christo-centric and conservative cultural climate of the border region of El Paso, USA and Juarez, Mexico.

Emersons Aphorisms :: essays research papers

Have you ever had a pair of shoes cherished so much that you were afraid to run the risk of wearing them, for fear of them getting scuffed, but by the time you wear them their too small? The aphorism by Ralph Waldo Emerson, â€Å"We are always getting ready to live, but never living.† is still valid today. It is often that we prepare to live rather than living instead.   Ã‚  Ã‚  Ã‚  Ã‚  Often people are unwilling to take opportunity, Emerson tries to show this in his aphorism. Due to the risks involved, people sometimes miss their chance at opportunities. Just like the kid unwilling to wear his shoes for fear of scuffing them, we are often caught in the same struggle between risk and desire. The kid desires to wear, and to be seen in his new shoes. But the risk of scuffing his new shoes outweighs wearing them, in his mind. People often do not realize what they’ve missed because of risk involved, until its too late. Finally the little kid decides he’s willing to accept the risk of scuffing his shoes, but by the time he tries to slip his feet into the little shows he realizes he’s outgrown them and they’ll no longer fit. Disgruntled and distraught, the kid wants to wear the shoes more than anything now that he can’t wear them. Emerson hints that we should take opportunities as they come; and never hide in the face of risk.   Ã‚  Ã‚  Ã‚  Ã‚  Emerson’s aphorism could also be interpreted as a plea to enjoy what you have now, rather than always strive for more. It is not uncommon to see a prominent member Tillman 2 of society spend the majority of their time working, rather than enjoying the wealth they have already acquired. Emerson is trying to say that we should stop and appreciate what we have, rather than spend our time trying to obtain more. After all, how can one fully enjoy what they have, when they are too busy trying to acquire more. Emerson hints that we should not spend our lives preparing for life rather than living life. Throughout our lives it’s common to see people with high goals, but never tackle them head on.

American Fast Food in Korea Essay

1. Base on market information for Asia Pacific, we can made conclusion that business future in Asian region has to have bright future. With 33% of the world’s GDP and 50% of its population, Asia has emerged as a rapidly growing force in the global economy. Due to the cultural diversity, regulatory controls, growing base of consumer power and its own set of business â€Å"rules,† the multinational corporations (MNCs) find it challenging to enter the Asian market successfully. Most MNCs are reassessing their existing strategies or formulating new strategies to sustain their growth (4). With regional exports exceeding $1. 3 trillion, the East Asia and Pacific region’s share of trade in GDP is the highest in the world. (Global Development. Finance Report. 2006). The economy of South Korea has grown in the last 35 years. Per capita GNP only $100 in 1963, exceeded $20,000 USD in 2005. South Korea is now one of the world’s largest economies (as of 2006, it is 14th in the world according to GDP). (2). If we will compare Korean market to East Asian countries (Exhibit 1 p. 12). From report I have strong understanding that mane fast-food market in any Asian countries is in big cities. Let’s check urban population level in all Asian countries. Based on Exhibit 1 we can clearly see that Korea has one of the best Urban Population level-total population level 47. 6 million and urban population is 82%. Check GDP and GNI level. We can see that Korean level one of the highest in the Asia. Nominal GDP (2005 est. ): $811. 1 billion. GDP growth rate: 2003, 3. 1%; 2004, 4. 6%; 2005, 4. 0%. Per capita GNI (2004): $14, 162. (5). In 1997 Korea had some serious economic crises and faced sever difficulties. After some structural reforms in Korean government, economy starts to recovery. Already In 2001 Korea was 13th largest economy in the world with GNP of $398 billion. So based on all information from above I can make conclusion that Korea has good future and it is one of the most promising market in Asian region. 2. Porter’s Five Forces have become a yardstick for assessing industry profitability. They are†¦ ?Buyers’/customers’ power ?Suppliers’ power ?Rivalry among competitors ?Threat of new entrants ?Threat of substitute products I will try to analyze each one, for Korean fast food market. Buyers ‘power. The power of buyers is the impact that customers have on fast food industry. Buyers could be powerful in different circumstances. I believe that in our case we can say that buyers are concentrated. As I could explain earlier, main per cent of population in Korea are in the big cities. Its give us good idea that for fast food industry in this region will be easier to delivery product to the customers. Buyers purchase the significant proportion of output. Suppliers power. A fast food industry require raw material for there business-labor, components. It leads to buyer-supplier relationship between the fast food industry and the firms that provide it the raw materials used to create products. Suppliers are powerful if they are concentrated- it will be really expensive to switch the supplier. From another side suppliers are week if it will be many suppliers with standard product on the market Korean agriculture sector includes forestry and fisheries. National products are rice, vegetables, fruit, root crops, barley; cattle, pigs, chickens, milk, eggs, fish. About 20% of the land used for agricultural busyness (5). From here we can understand that for fast food companies will be easy to find or switch the suppliers without problems for there businesses. Threat of new entrants. The possibility that new firms may enter the industry also affects competition. In theory any firm should be able to enter and exit market. And if free entrance and exit exists, than profit always should be nominal. There are some barriers of entry. Easy to entry if: little brand franchise; access to distribution channels; common technology. On Korean market steal not allot firms with brand franchise. And it is big requirement in new choices for customers. It let us know that it will be easy to enter to the market. Threat of substitute products. Product price elasticity is affected by substitute products-as more substitute become available, the demand becomes more elastic since customers have more alternatives. A close substitute product constrains the ability of firms in an industry to raise prices. In our case we can see example of some firms, Lotteria and McDonalds, who easy change there recipes for Korean customers which needs more healthy national ingredients for there food. Rivalry among competitors. In pursuing an advantage over its rivals, a firm can choose from several competitive moves: changing prices; improving product; creatively using channels of distribution; exploiting relationship with supplier. For firm who will try to enter Korean market, I would say more realistic and more helpful move will be to improve products. Improving quality of materials, quality of services, and probably quality of food preparation technology (healthier environment), will be most important key to success on the Korean fest food market. 3. Urban Koreans eat out frequently. Fast paced lifestyles are driving Koreans to choose western-style fast-food, but healthy eating is a concern. These factors are driving a fast growing market for sandwich store franchising (3). Another important factor is that about 75%-80% fast food customers are young people whose age less than 20 year old. It is mean that â€Å"along with westernization of Korean taste, western chain gained in popularity†. In the past, people seeking a fast meal would have been satisfied by fast-food giants like McDonald’s or Burger King, but it is changing. Consumers are seeking different choices. This new requirements has opened doors for a steadily growing market for fresh and healthy sandwich businesses. Lotteria is a local hamburger franchiser and is the fast-food market leader in Korea. From 2002 to 2003 Lotteria experienced a sharp sales drop of 40%. However, a strong contrast was seen in the South Korean sandwich market, as its $41. 20 million1 market value in the second quarter of 2003 doubled to $82. 40 million in the fourth quarter. This dramatic growth is forecast to continue, and the anticipated market value for 2004 is $117. 71 million (3) Besides Lotteria, the local franchisers include Sandday, Sandpresso and Sand & Food. In response to the aggressive foreign companies, they are also coming up with strategies to secure their position within the market, and the competition is about to heat up. Based on all this information I would say that fast food business in Korea growing and this will continue until people need more choices. 4Globalization is the key to sustained growth for Yum Company! Brands, the world’s biggest quick-service restaurant company headquartered in the United States and managing five fast food brands – KFC, Pizza Hut, Taco Bell, A&W and Long John Silver’s. â€Å"Demand for fast food is rising because lifestyles are changing,’’ said Allan, who leads overseas operations outside of the U. S.and China, in a recent interview with The Korea Times. More Koreans are being time pressured than they were historically. This trend is happening here. The number of people eating ready made food is continuing to increase. ’’(Graham Allan, president of Yum! Restaurants International. 11. 06. 2006) (6). As a socially responsible company, the 51-year-old executive said Yum will provide more optional dishes to health-conscious consumers amid a well-being spree in the nation, but will not abandon its traditional concept of â€Å"great taste. ’’ Under his leadership, Allan said he will target an annual growth of 10 percent or more in operating profits. There are about 250 Pizza Hut delivery outlets in the nation, which are set to expand to over 400. Korea makes up about 5 percent of Yum’s international division sales, which amount to some $11 billion – half of the group’s overall system sales. If I were business consultant, I would recommend starting making money on Korean fast food market. The new trend is propelling growth in the franchising market. It is anticipated that the market will experience intense competition for the next couple years. New fast food companies should be able to take advantage of the situation and enter the market without much difficulty, while it is still at an early stage of development. Reference page: 1. http://www. iff. com/Internet. nsf/0/B7A5C7E9B662B52685256D02006683DA 2. http://www. answers. com/topic/economy-of-south-korea 3. http://ats. agr. ca/asia/3879_e. htm 4. www. berkeleyabc. org/2006/ 5. http://www. state. gov/r/pa/ei/bgn/2800. htm 6. http://times. hankooki. com/lpage/biz/200611/kt2006110617463411890. htm.

Explaining the Goal of Financial Management and the Role of Ethics Essay

It has always been the goal of the financial managers to maximize the wealth of the shareholders of the firm. That is to say, we maximize the potential benefits that the firm’s stakeholders get by increasing the value of the firm in which these shareholders have taken the risk of investing to. According to Ingram (1992), the worth of a company is dependent on the capacity of the assets to produce cash flows over a period of time. This means that if the firm is able to generate a positive net cash flow including a reasonable dividend to its owners, then it said that value is created. Firms face two kinds of profits. They are accounting profits and economic profits. Maximizing accounting profits normally refers to the general corporate goal of maximizing profits as maximizing economic profits generally refers to maximizing the shareholder’s wealth. Ingram (1992) has distinguished them by defining accounting profits as the income accumulated after the overall cost is deducted from the overall revenue before the payment to shareholders is considered and economic profits as the income accumulated after compensating for the factors of production such as capital, labor and others. Moreover, she differentiated the two by saying that accounting profit does not consider all the factors of production as economic profit does and that it also does not consider compensating the shareholders for taking the risk in investing in the firm. Maximizing wealth does not consequently mean that the firm has to face an unethical decision making. It is still up to the firm as to how it will perform this task. As according to Goizueta (1997), everyone in the company would be better of if it plans for a long-term goal rather than a short-term goal. Through this, the firm can still plan on how it will maximize the wealth and at the same time be consistent with ethical standards.