Consumer Behaviour Essay Example | Topics and Well Written Essays - 1000 words

Consumer Behaviour - Essay ExamplePhil Kotler defines Atmospherics as the effort to design buying environments to produce specific randy effects in the buyer that enhance his or her purchase probability. The majority of the American public is unaware that they are spending more or little time in investment trusts, moving slower or faster through the aisles, and purchasing items that have no concrete value to them because their unconscious is being told to fill decisions contrary to that which they desire.Atmospherics create an illusion that stores try to sustain throughout the consumers shopping experience. In Marketing of the Mind, the authors argue that people higgle a mall solely for its disorientating effect they call it a vacation from the senses, much like drinking alcohol. (Walsh, Brown. Media Literacy for the Unconscious Mind. The Journal of New Media & Culture. overwinter 2002, Vol.1, No.1).Storeowners attempt to influence consumers by creating an innovative store layo ut. Victor Gruen is accredited with conceiving an ideal environment for a shopping mall. Departmental stores, which were the main impetus to go to malls, are placed at opposite ends of the interior walkway the logic being that consumers must pass all of the smaller shops when traversing between them.Along with climatical control, a lack of clocks, and centrally controlled lighting, the consumer loses all sense of direction, time of day and duration of his or her stay the consumers eye literally becomes glazed over, and he or she loses the ability to make economically realistic decisions. Parking is often located underneath the stores premises, so consumers cannot determine where in the store they are making their entrance, which adds to their disorientation. The shopping environment is thus transformed from a relatively neutral place to one that harbors numerous stimuli that urge

Examine United States Foreign Policy SInce WWII Term Paper

Examine United States Foreign Policy SInce WWII - Term Paper ExampleIt seeks to establish a strategy that will discuss the boundaries between the purlieu outside of the nation state and the domestic environment. For a well rounded extraneous policy it is essential that it covers a wide array of sub-national sources of influence. The need for a foreign policy arises from the need to protect. Governments need some sort of a safety backing that ensures their countrys well being. The intent behind such policies is that they are designed to help guard a country. They protect the country on the grounds of national security, national interests, ideological goals, and economic prosperity. Two native methods used by governments to achieve safety are peaceful cooperation with other nations and exploiting weaker nations.1 An excellent example of how one issue is dealt with in a different look by different countries is related to the War on Terrorism launched by the United States of America. Pakistan and Iran although neighboring countries, chose opposing stances on the frightism issue based on their individual foreign policies. Pakistan decided to help America in the terrorism that prevails in the region whereas at the same time Iran which is Pakistans neighbor and exists in the same region decided not to extend its support to combat terrorism in its neighborhood. Every country wants a peace process to prevail in a turbulent region and wants to help a country that is trying to solve the prevalent problem of terrorism. Given facts such as that the United States was voluntary to bear the major portion of the costs of war in return for some support and a little bit of resources, Iran chose not to help. It was because of the history they component with America and their ideologies being complete opposite to each others. Exposition of such behaviors by countries in such delicate situations is driven by their foreign policy. Foreign policy of a country as the name sugge sts, governs a countrys relationship with other countries in the international arena. Based on the example accustomed above the obvious question that arises in the common mans mind is related to what made Pakistan participate in the war on terror whilst Iran chose to stay aloof? Why were the policies of neighbors that share a border with one another so different? Why were their reactions to the same situation so vastly opposing? It must be noted here that foreign policies are not set in stone they tend to change overtime owe to a number of different reasons. Even in todays global arena we can see numerous examples of countries that were allies at one time only when are arch enemies now. Changes such as these all take place based on how the foreign policy of a country looks at a certain point in time. The guidelines, rather instructions contained in the foreign policy depend on a lot of factors. There are 3 key factors that influence the construct of most successful foreign polici es. The framework of these factors includes domestic considerations, policies of other states and geopolitical objectives.2 There are several other reasons that muscularity a country to opt for changes in its foreign policy. As the world progresses and with the advent of rapid globalization foreign policies are becoming more(prenominal) and more volatile. A very obvious reason for changes is a countrys foreign policy is related to a changing government. Each government comes onward with its own unique manifesto, a document that dictates its stance on many issues, foreign policy being one very important

DEATH Essay Example | Topics and Well Written Essays - 500 words

DEATH - Essay ExampleHe does this as a gesture of remembrance, to hopefully keep his familiar from focusing on the negative aspects of him being away, and instead remember the fond times the two of them had shared in the car.When Henry finally leaves, the car seems to be the only substantial semblance for Lyman, of the times they had spent together. The images of a healthy, happy Henry are embodied in the spirit of the red convertible, and these special memories are what keep Lyman from digressing into sorrow. or so of the relaxing and content thoughts Lyman conjures up are ones where they had no specification of destination, during the summer when there were traveling in the car. We took off driving all one summer, and the composition goes on to show how happy and at peace they both were, finding spots in areas where they felt so comfortable, Henry is depicted as feeling at ease enough to fall, asleep with his arms thrown wide (Erdrich 2002). Lyman continues to grasp onto these visual memories he brings up, in anticipation of those same feelings for when his brother will finally return. The car itself is what symbolizes the bond between the two of them, even with a great distance of separation dividing them.Finally, Henry returns home in the romance but its obvious he has changed things are just not the same. Henry because quiet and restless (814). Often he secluded himself and although he was there, his top dog seemed to be somewhere else. It appeared war and the white mans culture had taken its toll on him and all that was there for him was ugliness. This is evident in the story when, one shadow they all gather around the dinner table and beforehand, Henry has bit down into his lip so hard from frustration that he sits with blood slobber down his chin, theorizing how badly he wanted to be done with American ways, in his mind and in his life (817).This is representative

Business Decision Making Degree Essay Example | Topics and Well Written Essays - 1250 words

Business Decision Making Degree - Essay exerciseThe market research plan needs to clearly state the objectives of the research. In this case the primary reason for which research is being undertaken is to determine that fate of a particular product line. The purpose of the research is to uncover where the product stands in the market with respect to customer preference and based on that info whether it should be marketed further or discontinued.Once the objective is known the second step would be to determine which information is needed and who get out provide this information. This research has to produce what customers think of the product and how well it is doing in the market in terms of reputation and sales. The information willing be acquired from both internal and external sources by and large customers, retailers and employees.For this purpose a sample representing all concerned groups will be selected to participate in the research. Each demographic and geographic group will reach adequate representation in the sample. For this particular case the females will have a higher ratio than males and likewise the individuals from younger and middle age groups will constitute a major portion of the sample thought the remaining will have significant representation.Secondary research is available from public statistics, magazines, newspapers, produce journals, trade associations, annual reports, government conducted researches, other organizations and even the organizations own historical documents. The secondary information for this particular research however, will be collected from profit sources as well as research conducted on similar products or by similar companies. The primary information will be gathered by dint of surveys with the help of structured questionnaires, interviews, focus groups and observation. Data from questionnaires and interviews may be collected at the point of sales and online surveys will also be conducted. The collected inf ormation will then be analyzed to reveal statistics, perceptions regarding the product and the product sales trends.All methods used for gathering data will focus on customers, competition and the retailers.Although primary data is both costly and difficult to acquire and is also very time consuming, the information gathered from primary research with questionnaires, interviews and focus groups would provide significant data for the research than the secondary research, since it acquires direct information from the market that is both the consumers as well as the retailers. Understanding the consumers earlier making product decision is crucial. Primary research is important when making any decisions regarding consumers in order to get specific results.Secondary data is easier to nettle and acquire and far less costly than primary research, but it will not provide all information necessary for this particular research. The data is low for some aspects of the research and some of it cannot be applied as it is. It will however be acquired to assist in development the questionnaire and sample selection and will also facilitate in making the final decision. Interviews will serves as a means of two way communication between the consumers and the marketers, allowing us to probe deeper to get the information we require.

Stock Valuation Essay Example | Topics and Well Written Essays - 250 words - 1

Stock Valuation - Essay Exampleter every three months and good dividend paying stocks ontogeny their payout every year unlike those who own funds who most of the time are not sure about what the dividends will be and instead film a default option to buy more shares. It is also easier to understand market volatility since the investor knows the company well, and this helps an investor to make a decision whether to buy, sell or hold their position. Individual stocks also have lower costs than funds help one to diversify their holdings (Hayek, 2013).I would not be okay with the semipolitical risks that are prevalent in the increase among the BRISC countries since these countries include the emerging markets that need ample political stability to grow and mature. The political risk brings a group of volatility in the stock market, as well as discourages foreign and domestic investment as investors prefer more stable markets that are tardily predictable in order not to take so much r isk.Through negative correlativity, the idea of hedging and diversification are elaborated. Since negative correlation tends to make two investments move in opposite directions, an investor is therefore advised to invest in both the investments in order to spread risks. It makes sense that, when an investor invests in those two investments, one investment loses value, the other one will gain value hence the investor must not lose everything at any situation point, but at least gain on some (Eric,

Natural environment Essay Example for Free

Natural environment EssayHistory depicts that in the past, apartheid and Christian home(a) education policies meant that races and cultures were segregated in schools and resources were unevenly distributed, making the role and the task of the teacher extra difficult in terms of balancing between the work load and catering for all learners needs. Education is inherently political as it involves values and goals in relation to such fundamental questions as what kind of individual and rules of order are we trying to shape? These questions cannot be answered in a factual or technical way because they are questions of opinions, values and ideology and they are needs disagreements and conflicts (Carter, Harber Serfi, 2003). The nature and reality of educators is that, it places so much importance on the teacher to ensure that learners succeed at the end of the day, although there are some factors immaterial such as the environment, socio-economic and resources issues and resour ces which disturbs or defeats the purpose of education. The teacher can either make or break the progress of the learner, meaning the teacher should cater evenly for all the needs of the learners, as learners themselves are different in terms of race, gender and associate.This means that the teacher should not be bias or furcate towards a certain gender, race or class, as this will have a negative impact on the success or progress of the learners. In this essay I will discuss my experiences with the teachers who made a difference, the role they played in terms of perceiving gender, race and class in my life, and the reasons why they were world-shattering and finally I will discuss the role I will play as a future teacher regardless of gender, race and class of the learners. The most features in class or school environment, is for the teacher to understand his or her learners and mostly interact with them on continuous basis, as problems learners encounter swot up from time to t ime. These problems tend to distract learners and need the intervention of the teacher themselves. Sometimes learners struggle with the content required, a problem at home or what is more a personal problem. A good teacher must anticipate and have insight of foretelling and differentiate amongst learners that are showing signs of encountering problem

Geely Automobile Essay Example for Free

Geely Automobile EssayIn the first part, the ECLIPTER factors including econography, purification, legal organization, income compose, political happen, tax revenue regime, ex interchange rate and outriderictions, in concert with the multilateral institutions such as WTO, EU and ASEAN volition be examined by using UK and Malaysia as examples. thusly based on this analysis, it will provide an sound judgement of the familiaritys everyplaceall inter case expansion strategy and process. In the second part, legal system and income profile, the two most important ECLIPTER factors on Geely overseas operations, will be evaluated. Further more than, the scheme which Geely used to deal with the impact of these two factors and leverage the multilateral institutions will be shown. Finally, this report will analyze whether the caller-outs international adaptation of the business function is pieceive, and then give whatsoever recommendations and lessons. 2. ECLIPTER Factors Analy sis 2. 1 Econography Econography refers to physical and human assets including distance from major foodstuffs, and inwrought resources of nations that affect industry performance.In the first, the close distance between p arnt company and foreign subsidiary send packing help the company to reduce the pack lives and overhead expenses it withal can im assure the connection between them. If the p atomic number 18nt company is in china, it is better to build a subsidiary in Asia such as Malaysia. Secondly, the natural resources used for fashioning simple machines mainly include steel, copper, and aluminum. If the country owns rich mineral resources, it can greatly provide benefit in the production of travels. One of the major purposes for many multinational corporations establishing overseas subsidiaries is to exploit the foreign natural resources.This is good for companies to 5 foreign Business Environment II reduce production costs and get warring advantages. As World St eel Association reported in 2009 that the crude steel production of joined Kingdom is 13. 5 in 2008, whereas the crude steel production of Malaysia is 6. 1 in 2008. 2. 2 Culture This paragraph will analyze the effects of culture on elevator car industry done power distance index and saving rate. Firstly, power distance index measures the degree of inequality exists in a society (Hofstede, 1997). The power distance index is 80 in Malaysia whereas it is only 35 in UK (Hofstede, 2008).The unequal distribution of wealth makes most Malaysian citizens favor to hold a commercial auto. So the inexpensive Geely auto could be a good option for them. Secondly, saving rate could be a beat to show the attitude of citizens. The saving rate of Malaysia was 47 per cent in the year 1998 which ranks second in Asia (Azia, 2004). In contrast, the saving rate in UK was importantly let out, which was less than 10 percent in the past ten years. For instance, the saving rate of UK household in 2008 wa s only 1. 7 percent (chart 1)(Presser, 2008). So UK citizens ar apt to consume a relatively high price elevator car. graph 1Resource from Posser (2008) 6 International Business Environment II 2. 3 Legal system The auto industry has been affected by laws and government laws since the 1960s. The first safety act passed in 1966 by Congress and was called the National commerce and Motor Vehicle Safety Act (Highfill, 2004). This act forced fabricaters to improve the safety for the passengers, the driver visibility, and the braking of the car. Not only safety, but also environment is existence growingly concerned even before the oil crisis. The Vehicle Air Pollution and Control Act passed in 1965 was the first act to set standards for elevator car pollution.Then in the 1970s, Congress passed the Clean Air Act that led to a 90% decrease in automobile emission within the next sestet years (ibid). In the 1970s the oil crisis led to the approval of The Energy Policy and Conservation Act of 1975 which stated that all automobiles essential meet a certain mileage per gallon. The act required that all automobiles had to meet a standard of 20mpg by the 1980 model and then 27. 5 mpg for the 1985 model (ibid). EU 2020 evolution strategy also emphasizes the importance of low carbon automobile (Society of Motor Manufacturers and Traders, 2010).There ar also many special laws for auto industry in different countries, such as Malaysia, which has built a free trade area for production and assembly of products for export-oriented enterprises. Companies can enjoy the minimum responsibilitys, raw materials and alter mechanical equipment import formalities. Nevertheless, the Malaysia government regulates that more than 80% products should export to some other countries (Daily News, 2006). Furthermore, the UK Byers Acts Measures to cut the average price of a car by ? 1,100 and save hole-and-corner(a) car buyers around ? 1 billion a year.Although it may lower the profit t alent of auto industry, the number of consumers will increase little by little (DTI, 2000). 2. 4 Income profile Since automobile is non inferior goods, the demand of automobile would rise when income increases. In the economic aspect, income could be an indicator of the purchasing power of individuals and nations. Data from UK national statistics government agency (2010) demonstrated that despite the contracted 4. 9 percent of GDP in the whole year, the GDP increased 0. 4 percent in 7 International Business Environment II the fourth quarter of 2009. Furthermore, Household expenditure also rose 0.4 percent in the fourth quarter of 2009 in UK (chart2). For Malaysia, the GDP growth in the fourth quarter of 2009 was 4. 5 though the figure was negative in the whole year (chart 3) (Malaysia statistics, 2010). It can be find that the economy of both UK and Malaysia seem to recover from the global financial crisis. This positive signal predicts the growing demand and distensible market for Geely in both countries. Chart 2 Resource from UK statistics 2010 Chart3 Resource from Malaysia statistics 2010 8 International Business Environment II The core militantness of Geely automobile relies on its high performance-price ratio.Per capital GNI (Gross national income) in Malaysia was 25784 RM in 2008. By analyzing the 2004 United Nations Human Development (UNHDP) report, except the 20% population of richest and poorest class, Geely will be a better choice for the rest citizens in Malaysia(chart 4) (Lumpur, 2004). In comparison, the young hoi polloi account for a great amount of population in UK. A source from HMRC shows the average income of under 20 years is ? 9,570 and 20-24 years is ? 13,200 which is below the average (chart 5). It implies that when young generation decide to buy a car, price is the first consideration factor.For medium quality car manufacture companies, young population in UK could be a potential group of customers. Chart 4 9 International Business Environment II Chart5 Median Age Band Under 20 years 20 24 ? 11,800 years 25 29 ? 17,000 years 30 -34 ? 19,500 years 35 39 ? 20,100 years 40-44 ? 20,200 years 45 49 ? 20,300 years Resource from Lumpur (2004) ? 28,600 ? 24,800 ? 35,400 ? 15,200 ? 20,100 ? 28,100 ? 24,600 ? 34,600 ? 14,900 ? 19,800 ? 26,800 ? 23,600 ? 31,700 ? 15,500 ? 20,100 ? 23,900 ? 21,600 ? 26,700 ? 16,400 ? 20,100 ? 19,300 ? 17,800 ? 20,600 ? 15,900 ? 17,800 ?13,200 ? 12,400 ? 13,800 ? 11,200 ? 12,300 ? 8,130 ? 9,570 ? 8,490 ? 9,810 ? 7,990 ? 9,250 Median Income Mean Income Income (Men) (Men) (Women) (Women) Income Income Income Mean Median Mean 2. 5 Political luck match to Guinger (2001), political risk describes the stability of government institutions. It can be measured in a variety of ways such as uniformlihood of foreign aggression and civil insurrection. The Transparency International (2009) showed that UK and Malaysia both face some problems of political putridness, which adversely affects the eff iciency of economic operation.World Bank estimates that corruption could cost Malaysia as much as RM10 10 International Business Environment II billion a year an amount equivalent to 1 or 2 per cent of GDP. The corruption in the UK is lighter than Malaysia, which ranked 17, whereas Malaysia ranked 56 in world in 2009 based on depravation Perceptions Index 2009. But the corruption in UK is not unheard. Surveys by Control Risks and Simmons Simmons show that the awareness of UK laws against foreign bribery may be decreasing over time.In 2002, after the act came into force, 68 percent of respondents said they were familiar with its main points. But in 2006, 48 percent people said that they hurt totally ignored it (Global Corruption Report, 2009). 2. 6 Tax Regime Tax regime refers to the tax instruments that governments use to raise revenues from multinational firms, such as collective taxes. The tax of Malaysia is transparent, the multinational corporate must be taxed 30% of the cor porate income which is just the same as Malaysia companies Marketing directory, 2005) According to the tax incentive treaties, auto ( .industry may be eligible for pioneer status which is given by the way of an abatement of 70% of the profits for five years (ibid). The rest 30% of the profits will be taxed at the prevailing corporate income tax rate. The profits abated are exempt from tax and will be gettable for distribution as tax-free dividends. In UK the resident corporate tax is the lowest in Europe, even the tax is zero for the small companies in 2002(Lawandtax- recents, 2010). According to the tax treaties, multinational corporate which set up, purchase or control the companies in UK can follow the resident tax (Navstar, 2009).In the ordinary route of events, foreign companies cannot follow the low corporate tax, but with regard to double taxation and the agreement between UK and China, Chinese multinational corporates in UK now catch up with the low tax (ibid). 2. 7 Exch ange rate Stable trade policies are extremely important for both the economic welfare of the countries and the multilateral business system. Unfortunately, the liberalization measures were adopted by many countries. As Dornbuschs 1976 analysis has pointed out that when the exchange rate is used to provide protection for domestic firms, it is through undervaluation.An undervalued 11 International Business Environment II exchange rate protects domestic firms from imports and gives domestic firms greater incentives to export. For example, the Balance of Payments Committee of the WTO has received 39 requests from process countries for derogations from their international obligations and for a temporary increase in temporary protection. Moreover, several developing countries, such as Malaysia, have recently increased tariffs in receipt to financial crises even though the higher rates remain below the rates these countries bounded in the WTO.Moreover the analysis said China has drop d ead a great auto exporter, as a result of the huge subsidies, an undervalued exchange rate and dirt-cheap credit (Swaminathan, 2009). 2. 8 Restrictions Restrictions refer to the taxes and limitations that host governments place on foreign products and services or on foreign firms themselves when they enter or leave the host economy. Because of the policy of protecting their national automobile industry, the import tax of automobile is relatively high in Malaysia.Since 2004, Malaysia began to reduce the automobile import tax for the import components the tax is reduce from 25% to 10%, and for the whole automobile the import tax is drop from 130% to 30% for the companies outside of Southeast Asia (MEI, 2009). In 2010, according to the agreement of ASEAN, the automobile import tax will be zero to all the regions of ASEAN. UK is a member of EU, it followed the economic agreement of EU which sets no import or export tax between members of EU and they must charge the same tax when they ha ve business with the third country (European competitiveness, 2009). 12.International Business Environment II Scoring Analysis of UK and Malaysia Country brand Econography Culture Legal System Income Profile Political Risk Tax Regime Exchange Rate Restrictions Total (10) (10) (20) (20) (10) (10) (10) (10) (100) 8 7 18 8 8 8 7 7 71 7 6 16 15 5 9 8 9 75 UK Malaysia 3. Institutions 3. 1 WTO The major objectives of WTOs roles are ? the creation of a common automobile market through the exclusion of barriers to intra-Community trade the maintenance and expansion of a competitive world automobile industry the use of voluntary import restrictions to prevent cheap imports and to maintain competitiveness?(European Commission, 2006). For example, in 2006, WTO announced the establishment of a ornament to examine whether Chinas tariffs on imported auto parts violate WTO trade rules, following a joint complaint make by the United States, the European Union and Canada, who accused China for it s discriminatory charges on imported auto parts. After examining Chinas related regulations, WTO panel declared that Chinas regulations are at variance(p) with Chinas WTO obligations. China has agreed to make the necessary regulatory changes by September 2009 (Herd, 2006). 13 International Business Environment II.WTO facilitates Geelys international expansion since the elimination of trade barriers has cleared its path to world market and made it integrated to the world economy. In 2002, after China joined into WTO, 100 automobiles of Geely exported to Syria (Luo, 2005). 3. 2 EU EU functions as a rule-imposer. It sets strict requirements and institute rules and regulations to improve fomite safety. Besides the vehicle crash tests executed by Euro NCAP (European New Car sagaciousness Program backed by European Commission), at that place are also some regulations set to protect the environment.First, in order to respond to the gradual soreness of greenhouse effect, the European c ommission developed a mandatory emission standard to limit the emission of one major kind of greenhouse gas, carbon dioxide. The regulation set a fleet-average CO2 emission target for passenger cars, which is 120 g/km to be reached by 2015 (European Commission, 2010). The vehicle manufacturers must reach the CO2 emission target of 130g/km, with an additional reduction of 10 g/km to be provided by supplementary measures, such as the use of hydrogen fuel.A long-term target of 95 g/km to be reached by 2020 is also established by the regulation (ibid). This regulation will take effect in 2012. From 2012 onwards, vehicle manufacturers who do not meet this target will have to gestate penalty for their excess emissions. According to DieselNet (2010), from 2012 to 2018, the penalties are 5 per vehicle for the first g/km of CO2 15 for the second gram 25 for the third gram 95 from the fourth gram onwards. From 2019, manufacturers will pay 95 for each g/km exceeding the target. Another congr essional mandate imposed by European Commission requires tire pressure supervise systems on all bare-assed cars in 2012.According to Europes Information Society (2010), many road accidents resulting in fatalities and physical injuries are tie in to tire defects. Furthermore, under-inflated tires can result in severely inefficient use of fuel and cause an extra two million tons of CO2 emitted into the standard atmosphere per year. So this mandate enhances vehicle safety and protects the environment. 14 International Business Environment II These regulations have incurred a rise in car prices since vehicle manufacturers are forced to increase price to offset the cost of upgrading.These regulations put Geely in an unfavorable position. Since Geely is better known for making low-tech and cheap cars, making eco-friendly cars is not included in the competencies of the company and huge RD spending is inevitable for nurturing this competence. They set a high bar for the competition and limit Geelys ability to expand market in Europe. 3. 3 ASEAN ASEAN Association of South East Asia Nations is a geo-political and economic organization of 10 countries located in Southeast Asia. China and ASEAN are both newly-emerged, rapidly-developing auto markets.Cooperation in auto industry between China and ASEAN will bring a win-win situation for the two sides and make their cars more competitive in a global competition. For instance, according to Xinhua News Agency (2006), a report released by the Ministry of Commerce Indonesia has announced that compared to the expensive Japanese sedans, the China-made ones gradually gain popularity for more favourable price-performance ratio. ASEAN country also needs investment from Chinese carmakers to expand local employment and for more price-favourable cars, said a Germany auto expert at the China-ASEAN Expo, 2006.Consequently, in general, ASEAN opens its gate to Chinese car companies including Geely to achieve a win-win situation. 4. As sessment of Geelys overall international expansion strategy Geelys current international strategy is to produce low-priced automobile, so the market size and consume power of a foreign market are extremely valued by Geely. Malaysia automobile market resembles China more than UK, in the aspects such as the peoples income, the similar culture, and the similar geographical position, and so forthAs by now most cars have been exported to some developing countries like South-East Asia, Ukraine, Russia, and Mexico, Malaysia will be good choice. Meanwhile, although UK does not represent a neighboring or ? home market, 15 International Business Environment II as markets in South-East Asia do, UK could be seen as an interesting market with a potential for higher margins, higher price levels and a more mature market for branding, technology, etc, as the UKs income per capita, and the automobile barters volume are higher than that of Malaysia.Considering the future international increment, Geely should focus on UK. Therefore, at first, it is better for Geely to develop its ? producing automobile which most of people can buy strategy in Malaysia, and when Geely is able to enter high-end automobile market, UK will be a better choice. In terms of multilateral institution, after evaluating the influence of international organizations, we suggest that Malaysia is a better choice for Chinese car companies to exploit new markets. Firstly, a win-win situation guarantees a favourably corporate relationship between Geely and ASEAN (Eichengreen, 2006).Secondly, there are various quality-related requirements and constraints in EU and probably NAFTA, which puts up a strong challenge for those Asian auto makers. Moreover, by far, there is no evidence to prove the acquisition of Manganese Bronze and Volvo have considerably increased Geelys sale in developed nations. Thus considering the opportunities and threats faced by Geely, it is recommended that the company emphasizes on devel oping nations markets, rather than the developed markets. 5. Marketing analysis 5.1 Legal system According to Alistair Darlings pre-budget report, UK will bring new opportunities for the low-carbon industries. through with(predicate) the Innovation Investment Fund and the Carbon Trusts Venture Capital scheme, UK will invest at least ? 160m in low carbon projects (Guardian, 2009). They will also invest ? 90m in the European Investment Banks new 2020 fund, which will put 6. 5 billion Euros of finance in green infrastructure projects. In this report, there are alterations to the climate change levy, company car tax, and fuel benefit charge (ibid).This is good news for Geely because now it dedicates itself to produce high-tech and eco-friendly automobile. In 16 International Business Environment II UK the amount of car tax depends on the price and the discharge amount for carbon, which is from 9% for electric motor car to 10%-35% for petrochemical car. UK also has a successful car scra ppage scheme, which gives consumers a ? 2,000 discount off. If they scrap their old vehicle, it will help up to 125,000 families replace their inefficient boilers with new models (Julia, 2009).Through the governments support of low-carbon industry, Geely has more opportunities to innovate high-tech and eco-friendly automobile. Furthermore, because of the low tax and car scrappage scheme, customer is inclined to buy or change an electric motor car,. In 22nd March 2006, Malaysia published the new automobile policy (MEI, 2009). Since that day, the import taxes of CBU (Complete Built Unit) are reduce from 20% to 5% for the ASEAN members and 50% to 30% for other countries. The import taxes of CKD (Completely Knock Down) are 10%.In 28th October 2009, Mustafa Mohamed announced many new policies for auto industry which will give much more preferences and subsidies for the new energy automobile companies (ibid). 5. 2 Income profile It is known that the success of Geely relies mostly on keep ing low cost and offering the affordable cars. For instance, Geelys best-selling four-door sedan, the King Kong, has been sold 6127 in April 2010 and the retail price is between 47,800RMB 58,800RMB (Jiang, 2010). Geely sold 329,014 passenger cars in 2009, making it is the third largest domestic car producer (Zheng, 2010).However, Geelys winning formula is under pressure in china because Chinese consumers are becoming wealthier the higher-end models will gradually be affordable for them. Meanwhile, brands such as the Chery QQ, Ford Fiesta, and Honda Civic are threatening Geelys current market position. Geekys winning formula is also challenged at the oversea markets like UK and Malaysia. Date from HMRC (HM Revenue Customs) indicates that nearly 50% of the population in UK earns ? 16400 annually which is much higher than the middle class income of Malaysia.This group of population could be a dominant power in the automobile market in UK. It is not a wise choice to sell its inexpensi ve cars in UK considering that low price would not be 17 International Business Environment II collective for these relatively rich citizens. The similar situation also happened in Malaysia which made Geelys low price cars less competitive. This is because that the predicted real GDP growth in 2010, 2011 and 2015 are 4. 7%, 5. 0% and 5. 0%, Malaysian people are becoming richer than before(IMF, 2010).Their increasing incomes will directly affect their car buying choice. People nowadays prefer the higher-end models and the market share of Geelys lower-end models are estimated to reduce gradually. 6. Geelys reacts to the impact of the ECLIPTER First, since the middle of 2009, the sales of car exports decreased from 37940 in 2008 to 6297. Furthermore, although Geely exports to more than 50 countries, most of them are developing countries which are not so effective in the promotion of the brand image.In order to get rid of low-end image, Geely changed its strategy from ?produce automobi le which most of people can buy to ? do not produce cars which price is below 40000 yuan (Fang, 2009). Besides, Geely take over Volvo which also expressed its desire to promote the brand image. Geelys strategy changes starts in May 2007, which is focus on transforming its competitive advantage from price to technology. In 2007, Geely used three new motorcycle typeYuan Jing, King Kong and Zi You Jian, which have relatively higher value added to substitute the Haoqing, Meiri and You Liou.For doing that, Geely scraped its old molds, jigs and production line which worth up to 8 billion Yuan. In 2008, the sales of these three new auto types grew 12% without discount marketing strategy (Geely annual report, 2009). Furthermore, in 2010, Geely will market 21 new auto types, and some of them were designed by Fabrizio Giugiaro, the Italys famous auto manufacturer. Moreover, the new energy auto will also be produced in 2010, which will include bear cat and DiHao (Wenqing, 2010). These new ene rgy auto types have been showed in the Beijing car exhibition 2010 (Phoenix auto, 2010).In order to deal with these two factors, Geely also has a completing strategy cooperate or takeover other well-known international auto manufacturers. It will not only help Geely to promote its auto manufacture technology, but also improve its brand image. Geely has already cooperated with 18 International Business Environment II Britains Manganese Bronze to produce riotous brand-named taxi (China car Times, 2010) and assembled cars with Information Gateway Corp Sdn Bhd (IGC) in Malaysia, 2006 (Tan, 2006). 7. Leverage the multilateral institutions7. 1 ASEAN One of the stunning news in 2005 was the political barriers Geely met in Malaysia, which was considered as the biggest challenge for its overseas expansion so far. Geelys President Li Shufu described Malaysia as ? an unexpected trap? because of Malaysia governments rejection on fulfilling the contract. After examining the ECLIPTER factors of Malaysia market, Li Shufu and his team regarded Malaysia as the first pillbox and cornerstone of its expansion to ASEAN countries. He believed the learning in Malaysia could be helpful.Therefore, in May 2005, Geely has made a joint contract with Malaysia IGC group for building CKD factory in Malaysia. However, Malaysia government denied the contract after a new document on automobile being published. According to the document, all cars made by foreign automobile manufacturers were prohibited to sell in Malaysia. Then the situation in Malaysia went against its expection of getting a huge sale. However, according to Geely officials, to some extent, ASEAN agreements have made Geely to reconsider the importance of Malaysia (Harwit).In South East Asia nations, there are some strict tariff-related regulations for automobile industry. Contrarily, tariff among ASEAN countries is in a minimum rate. According to an inner-ASEAN agreement, from 2003 to 2009, Indonesia, Thailand, Malaysia, Phil ippine, Singapore and Vietnam exempted auto import tariff for each other. From 2010, all ASEAN countries will implement zero auto import tariff for each other. At the same time, Indonesia, Thailand and some other ASEAN nations demand of cars is increasing considerably (JAMA, 2008). Especially after an impressive increase in 2007, the car-sale in Indonesia becomes significantly dazzle.Therefore Geely 19 International Business Environment II planed to only manufacture cars in Malaysia and then export cars to other ASEAN countries, which seems like a forward-looking plan in a long-term development. Finally, Geely decided to move its Malaysia CKD manufacture center to Indonesia. However, its vision of leveraging ASEAN to pursue a sale performance in all ASEAN nations has not changed. 7. 2 EU In terms of EU regulations, since Geely has acquired 100% ownership of Volvo, the Swedens company, Geely is no longer an alien of European market.According to the EU Single market concept (European Commission, 2010), a free circulation of capital, labor, goods and services between EU members is granted. Geely now have got over tariff barriers and competes as an insider. 8. Implications and Recommendations One of the strategies of Geely is to promote new energy automobile, there are two advantages for this strategy Firstly, Geely can get powerful support from government since the development of new energy is encouraged by the government.Secondly, since new energy automobile is environmental friendly goods, it not only reduces the carbon emissions, but also decreases the expenses on routine maintenance (Bond newspaper, 2010). However, there are also drawbacks, such as the inadequate facilities. Acquiring other world famous bands is the other strategy of Geely, which facilitates the companys global expansion. For instance, Volvo is well-known by its safety, which could provide Geely with a competitive advantage on its brand trust. It also provides a valuable, more upscale user image.Therefore, through merger or acquisition of international well-known brands, Geely can get greater international fame and advanced technology, integrate into the world market and attract more consumers. However, certain risks should be considered when Geely acquires Volvo. The first risk is that the culture conflicts between two countries. It has been reported that one of the hindering factors is that the union of Volvo in Sweden disagrees the acquisition for their reduced 20 International Business Environment II welfare and unemployment (Gasgoo, 2009).The second risk is that the value of acquired equity. It has been said that Volvos vaunted reputation for safety has been challenged by other manufacturers which can also provide automobiles with same safety standard. In this case Volvos ? safe? advantage may not be as competitive as before. 9. Conclusion To sum up, this essay has analyzed the ECLIPTER factors of Geelys two overseas markets, Britain and Malaysia, and examined in fluence of the related multilateral institutions. According to this matrix analysis, legal system and income profile have the most important impact on the auto industry.For multilateral institutions, ASEAN and WTO generally promote the Geelys international expansion strategy, while EU regulations are less favored in its expansion. Considering both ECLIPTER factors and related multilateral institutions, it is suitable for Geely to enter developing nations to acquire market share at its sign development. But for long-term development, Geely need to pay attention to research and develop higher-end models. With the development of Geely Company and the overall auto industry, Geelys focus will cracking from developing countries to developed countries.Currently, Geelys low price strategy is challenged by the legal system and income profile of developed countries. Therefore, Geely is increasing its efforts in releasing new model cars and tapping into developed countries through merger or acquisition. Geely intends to promote its brand image and enlarge its market share through these strategic moves, although it has to face the risk of culture conflicts and the uncertainty of acquisition value. 21 International Business Environment II 10. References Azia, A. Z. (2004) Malaysia-Encouraging Saving in a Dynamic Economy Online. Available at h.