How FDI Helps Nurture Domestic Competition Environment Dissertation

How FDI Helps Nurture Domestic Competition Environment - Dissertation Example Second, the typical Solow growth model is offered aiming at simplifying the main drives for economic growth. Moreover, a comprehensive analysis of the actions of the MNEs is included. As a result, this method provides a multi-dimensional approach which puts emphasis on the modifications in efficiency, labour and possible spillover effects arising from the MNEs’ actions in China. Table of Content Contents Abstract 2 Table of Content 3 Contents 3 Introduction 3 Literature Review 5 Theoretical Framework 6 The Model 6 Conceptual Framework 11 Unconditional Approach 13 Conditional Approach 14 Total Factor Productivity Approach 16 Methodology 18 Research Methods 18 Data Sources 19 References 20 Introduction One of the greatest sensitive zones in international economics currently is Foreign Direct Investment (FDI). Developing countries like China dread misuse on one hand, and insufficient access to foreign capital, expertise, marketing, and administration skills on the other. FDI comp rises a course of financial capital and impalpable assets like technology, professional capabilities, promotion skills and other possessions (Blonigen, 2005). It is worth noting that direct investment, in most cases, it begins with a minute or no net flow of financial capital. Occasionally, the parent company only adds its trademark name, managerial principles pegged with other assets of the less tangible variety (Moosa, 2002). A good prevarication strategy for a parent company that has foreign currency possessions in its partners is to take on foreign currency obligations as well (Ruane, & Ugur, 2005). This is made available by appropriating in foreign moneys that are used to fund the affiliate. In the current years, the portion of the developing nations as a basis of FDI significantly intensifies. However, the lion’s part is reserved to the EU nations, USA and Japan which make up for 80-90 percent of the entire FDI outflows. In situations where FDI is measured as a proporti on of GDP, the developed nations still account for the inordinate majority of FDI outflows (Kneller & Pisu, 2005). The role of FDI unavoidably increases in a quickly globalizing world. Bill Gates once said: â€Å"No one gets to vote on whether technology is going to change our lives†. By utilizing this quote as a representation, comparable parallels can be made in respect to FDI. No doubt, FDI has developed into an evitable part of the current globalized world and no person has the authority to stop this development. Therefore, it is vital that the consequences of FDI to the host economies be carefully and independently assessed. It is worth declaring that this is not an easy task, bearing in mind the schism of the bulk of opinions (Simpson, 2010). GDP, Export and FDI flows* *(Constant 1995 US$ index numbers, 1970=100, log scale) Source: Navaretti & Venables, 2004 Literature Review Theoretical Framework This chapter targets to provide the dissertation with a resilient theoret ical framework in association with economic growth pegged with its determinants. By understanding and appreciating what motivates the development in the short and long-run, it will be much tranquil to identify the influence that FDI has on the domestic competition environment. The beginning point of this investigation is the structure of a production function. Bestowing Alfaro, Kalemli-Ozcan and Sayek, (2009), we will use Solow’s neo-classical model of economic growth as a foundation of the discussion. This model was a

The Main Reason of Workforce Effective Essay Example | Topics and Well Written Essays - 500 words

The Main Reason of Workforce Effective - Essay Example   Ã‚   Having four learners to train in the duration of two months, I am supposed to assist the learners in the attainment of the following objectives. By the end of the training period, learners should be able to maintain a well-organized schedule thus utilizing the lotus note. By the end of the training period, learners should be able to design meeting and travel arrangements By the end of the training period, learners should be able to handle confidential mail By the end of the training period, learners should be able to communicate effectively with fellow working staff and the clients of the organization. By the end of the training session, learners should be able to provide all Administrative support to the President            I will require them to work with various computer packages, for example, Access, Excel, Word, and PowerPoint among others to demonstrate their effectiveness.  By using Excel, Word, and PowerPoint design a travel and meeting arrangement plan to be used in an organization. Clearly, describe why you would use effective communication skills in directing callers in a busy business enterprise Explain the importance of properly handling the organization’s confidential information? What could be the outcomes of leaking the company’s confidential correspondence? Give a clear illustration on how to maintain proper schedules of a busy office bearer? Make use of the computer in answering your question. In order to pass my evaluation learners need to learn on how to make is of the computers in drawing schedules for a busy office, they need to learn good communication skills for use in the office The training resources /materials will include; Four computers to be used by the learners Textbooks on effective communication skills Prepared schedules to serve as demonstrations Questions and answer booklets to be used by the learners in their discussion work Case studies from various companies to be used in the training session. This will ensure a better understanding of the learners.

Social Media Research Paper Example | Topics and Well Written Essays - 750 words

Social Media - Research Paper Example The content of the posts on the social media account also adds to the success of the channel of advertising. They should be enjoyable, clear, and informative to the audience not only on the product and sales but also on other aspects. Quotes and jokes are included in the posts to ensure that they are interesting; hence, they attract maximum followers. Being relevant and current is also an important component of social media advertising. Content is frequently updated to ensure that it makes sense mainly depending on the audience. Additionally, it reduces the risk of monotony that not only leads to reduced followers but also loss of the potential buyers to consume the product (Evans, & Mckee, 2010).. Conciliation- When using this method to solve a dispute, the third party gives offers on the solution that vary depending on the variables of the conflict. Law provisions are considered in conciliation (Wankel, Marovich, & Stanaityte, 2010). The best method of resolving customer disputes occurring from purchases from social media provided business links should be negotiation. This is because it offers the best for both parties after negotiating the most favorable terms. The method also ensures that the solution will enhance a stronger bond between social media and business. The federal government can best control the transactions on social media by regulating the number of viewers of the social media posts. Federal government regulates and monitors the number of viewers the sales will also be regulated. The government also introduces policies, rules and procedures to be followed by the firms that use the social media for advertising and selling of either goods or services. The three main branches of government are the executive, judiciary, and the legislature. Making laws is the main function of the legislature (Lathrop, & Ruma, 2010).

Survivor paper for CBS reality show(ONLY INTRO) Essay

Survivor paper for CBS reality show(ONLY INTRO) - Essay Example Those characters include; Sierra, Will, Rodney, and Shirin. The participants tried to explain some of the theories we learned in class from the reality show. The show is about teammates who have problems working together. For example, Will was willing to share with other mates, but they are suspecting him that he is hiding food. Rodney is a selfish character, and he is so convincing than any other character in the show Magder, 2004). The study further, explains the difference between emotions and personality. Emotion is a quick reaction towards someone or something. Emotion is, therefore, a behavior one develops due to a particular occurrence and is for a short period. Some of the emotions include; sadness, anger and surprise as will be discussed in the study. On the other hand, personality is a how a person reacts to and interact, other people. A personality is a behavior that develops in a person and is not easy to change as the show depicts (Magder,

Communication Essay Example | Topics and Well Written Essays - 1500 words - 8

Communication - Essay Example Finally I analyzed how clearly did the two men speak and what effect their clarity had on the overall speech and the message they were trying to convey. By analyzing the two speeches there were number things that I was able to understand. Analyzing the two speeches required me to utilize my observational skills to assess the type of expressions that president Obama and Lt. General David Morrison portrayed while delivering their respective speeches. A speech has little to do with words and has more to do with the manner in which message of the speech is conducted. The manner in which Morrison delivered his speech was firm, whereas Obama’s manner delivered it in a manner that displayed immense sorrow for individuals that had lost their lives. Such gestures are non-verbal gestures that I learned to quickly pick up. Another thing that I learned from analyzing the two speeches understood the reaction or their emotions from the clarity in their voice and how easily it was for them to speak out words of the speech. While working on the article analysis I worked on was to gather information regarding the current method that has been employed by airline companies regarding communication systems being used in emergencies. I initially obtained information of the internet, which required a great deal of research skills. Using the internet I was able to obtain a great deal of information, however a great deal of this information was either irrelevant or was outdated. I filtered the information that was needed and then organized it in a presentable manner. In order to obtain information in a greater depth I discussed the article with a number of individuals that had experience with the field. Before contacting these individuals I developed a set of questions that was directed at obtaining information in much greater detail. I later compiled the answers I got

Disadvantages of Genetically Modified Food Products Essay Example for Free

Disadvantages of Genetically Modified Food Products Essay British scientific researchers demonstrated that genetically modified DNA from crops can find its way into human gut bacteria, raising possible health concerns. This is because antibiotic-resistant marker genes are inserted with GM material, which could cause a person to be resistant to antibiotic medicines. The study was conducted at Newcastle University on seven human volunteers who, in the past, had their lower intestine removed and now use colostomy bags. After eating a burger containing GM soy, researchers compared their stools with 12 people with normal stomachs. They found to their surprise that a relatively large proportion of genetically modified DNA survived the passage through the small bowel. None was found in people who had complete stomachs. To see if GM DNA might be be transferred via bacteria to the intestine, they also took bacteria from stools in the colostomy bags and cultivated them. In three of the seven samples they found bacteria had taken up the herbicide-resistant gene from the GM food at a very low level. Michael Antonio, a senior lecturer in molecular genetics at King`s College Medical School, London, said that the work was significant because the researchers demonstrated that you can get GM plant DNA in the gut bacteria, which was previously considered to be not possible. Antonio said the research suggests that antibiotic marker genes could spread around the stomach and compromise antibiotic resistance. If this were to happen, a person could be immune to beneficial antiobiotic medicines. Marker genes are inserted into GM plants to allow identification of GM cells or tissue during development. The House of Lords has called for them to be phased out as swiftly as possible. The research was conducted at the request of the UKs Food Standards Agency, which released a statement saying the research, concluded that the likelihood of functioning DNA being taken up by bacteria in the human or animal gut is extremely low. * Genetically modified foods may gain undesirable properties. * The preservation of genetic variety in one specie is difficult. The technology make farmer to produce only one type fertile plants. * The technology may cause undesirable degeneration. So, surprisingly, low quality products may be obtained. * Genetically modified foods may change the microbial flora of the soil. It may cause deperdition of essential microorganisms on soil. This ruin natural balance. * When genetically altered microorganisms are consumed with food products, they may consolidate with human or animal organism. His combination may cause deperdition, metamorphosis, or any other strange organisms. * If the foods which were made antibiotic resistant by gene technology are consumed, it may give the same property to human. This cause failure of antibiotic-based treatments. * By this technology transferred genes may contaminate to other organisms undesirably. This may cause biologic disaster. * As a ring of nature chain, insects may be influenced by genetically modified foods and insects can develop resistant mechanism. * Even beneficial foods that carry toxic effect genes can cause human illness. * There is a risk of formation one kind of flora. * Other organisms in the same medium may be influenced by genetically modified foods. Video Transcription. This transcription will have some mistakes because it is partially automated. Hey guys! This is Heather from HealthyEatingStartsHere. com. Today I wanted to talk to you about the disadvantages of genetically modified food. I do mention genetic modification every so often and to be on the lookout for it and that’s one of the reasons why I buy organic foods. And whenever I mentioned I always got a lot of question what it is? Why is it bad? All that kind of stuff! So first of all let’s look out what exactly it is. Genetic modification is when a scientist, genetic engineer goes into the actual DNA of a seed and changes something about the DNA. What it is depends on what they are trying to do. Often in food crops what they’re doing is they’re slicing in a little bit of some other species of plant or animal into the seed for certain traits that they want that plant to have. So if you are a vegan and you’re concern about animal rights and the use of animal products in your food, you wanna be really careful about genetically modified food because they might have some animal genes place in. And that involves not only the animal gene but obviously they are taking it from somewhere so there is some kind of animal experimentation going on. Aside from that, another thing that often comes up in question of what’s the difference between genetic modification and hybridization? Because people have been making hybrids for a long time, is that bad? Well, the difference is with hybrid foods what they’re doing is that they are taking two plants and they’re putting them together, kind of like mating them and producing a slightly different second generation off spring. So, it’s different because they’re not going actually on the actual DNA of the seeds and changing things mechanically. They are cross breeding and hybridization have been going on for a long long time since the beginning of agriculture really and genetic modification is very very new. It only started being experimented with in the late 1980’s and then it’s only been on the commercial scale since the late 1990’s. So not a lot of time they have been gathering data on what the long term effects are and that is one of the main disadvantages that people talk about with genetic modification. Today I want to focus more on the positive and look at what can we come up with as better solutions to whatever it is that people are trying to which are like genetic modification. If you want to read more about the disadvantages, I did write about them in my blogs, you can check that out at HealthyEatingstartsHere. com but again let’s take a look on the positive. The benefits that people are going for in genetic modification, one of the first one is the resistant to pesticides and herbicides. What happens there is well let’s take the biggest example which is Roundup ready crops. Roundup is a chemical that is a herbicides so it kills plants. You probably heard of it, people use it on their lawn, stuff like that and basically just wipes everything out. And what’s the company that produces Roundup called Monsanto wants to do is allow farmers to go out and spray field of crops and have Roundup kill all of the weeds that they don’t want but leave the crops growing. So what they do is they go onto the seeds of these major crops and changed it so that Roundup does not kill them. So that’s one of the biggest and first uses of genetic modification and the solution there if you look at organic food production, the bases behind the whole process is about making plants healthy, making the soil healthy first so that it grows healthy plants and those healthy plants won’t have diseases won’t get pests and will grow in healthy soil and the weeds won’t even be a problem. So it eliminates the need for these Roundup ready crops, I mean it’s more complex than that but that’s the – the basic idea is let’s look at what we want and create that rather than taking how things are and kind of putting a band aid on it and trying to make it better. So you can read a little more about this over at my blog, go check that out but I wanna hear from you guys. Leave me a comment and let me know what you think about genetically modified foods. And whether you think there are some major disadvantages, whether you think they’re important, what you think are some good solutions that would be really awesome thing hear from you guys, what you think some better ways of doing things would be so let me know and I’ll see you guys next time. pHey guys! This is Heather from HealthyEatingStartsHere. com. Today I wanted to talk to you about the disadvantages of genetically modified food. I do mention genetic modification every so often and to be on the lookout for it and that’s one of the reasons why I buy organic foods. And whenever I mentioned I always got a lot of question what it is? Why is it bad? All that kind of stuff!   first of all let’s look out what exactly it is. Genetic modification is when a scientist, genetic engineer goes into the actual DNA of a seed and changes something about the DNA. What it is depends on what they are trying to do. Often in food crops what they’re doing is they’re slicing in a little bit of some other species of plant or animal into the seed for certain traits that they want that plant to have. So if you are a vegan and you’re concern about animal rights and the use of animal products in your food, you wanna be really careful about genetically modified food because they might have some animal genes place in. And that involves not only the animal gene but obviously they are taking it from somewhere so there is some kind of animal experimentation going on. Aside from that, another thing that often comes up in question of what’s the difference between genetic modification and hybridization? Because people have been making hybrids for a long time, is that bad? Well, the difference is with hybrid foods what they’re doing is that they are taking two plants and they’re putting them together, kind of like mating them and producing a slightly different second generation off spring. So, it’s different because they’re not going actually on the actual DNA of the seeds and changing things mechanically. They are cross breeding and hybridization have been going on for a long long time since the beginning of agriculture really and genetic modification is very very new. It only started being experimented with in the late 1980’s and then it’s only been on the commercial scale since the late 1990’s. So not a lot of time they have been gathering data on what the long term effects are and that is one of the main disadvantages that people talk about with genetic modification. Today I want to focus more on the positive and look at what can we come up with as better solutions to whatever it is that people are trying to which are like genetic modification. If you want to read more about the disadvantages, I did write about them in my blogs, you can check that out at HealthyEatingstartsHere. com but again let’s take a look on the positive. The benefits that people are going for in genetic modification, one of the first one is the resistant to pesticides and herbicides. What happens there is well let’s take the biggest example which is Roundup ready crops. Roundup is a chemical that is a herbicides so it kills plants. You probably heard of it, people use it on their lawn, stuff like that and basically just wipes everything out. /p pAnd what’s the company that produces Roundup called Monsanto wants to do is allow farmers to go out and spray field of crops and have Roundup kill all of the weeds that they don’t want but leave the crops growing. So what they do is they go onto the seeds of these major crops and changed it so that Roundup does not kill them. So that’s one of the biggest and first uses of genetic modification and the solution there if you look at organic food production, the bases behind the whole process is about making plants healthy, making the soil healthy first so that it grows healthy plants and those healthy plants won’t have diseases won’t get pests and will grow in healthy soil and the weeds won’t even be a problem. So it eliminates the need for these Roundup ready crops, I mean it’s more complex than that but that’s the – the basic idea is let’s look at what we want and create that rather than taking how things are and kind of putting a band aid on it and trying to make it better. So you can read a little more about this over at my blog, go check that out but I wanna hear from you guys. Leave me a comment and let me know what you think about genetically modified foods. And whether you think there are some major disadvantages, whether you think they’re important, what you think are some good solutions that would be really awesome thing hear from you guys, what you think some better ways of doing things would be so let me know and I’ll see you guys next time. A lot of people arent clear on what exactly genetically modified food is. Very simply, its food thats been changed on a genetic level through genetic engineering. The process usually involves splicing in a gene from a different species of plant or animal to take advantage of certain traits. Hybridization causes some confusion here, since its also a way of breeding plants (or animals) for certain traits. The difference is that hybrid food is created through cross-breeding two plants into a second generation. Genetic modification is done directly in the DNA of a seed. The main benefits producers are going for in genetically modifying food plants is a resistance to pesticides and herbicides, better tolerance of extreme weather conditions (like drought), longer shelf lives, and an increase of certain nutrients (like vitamin A-infused rice). That all sounds good on paper, but there are some serious disadvantages of genetically modified food. The most blatant one is that this GM seeds are already in widespread use in the industrial agriculture food chain without having had long-term testing. They only started small scale experiments in the late 1980s, and large scale operations started in the late 1990s. The future effects on our health, our environment and the sustainability of our food crops arent easy to predict in the best of times, but GM foods and crops throw a real curveball in the mix. Because they are a fundamentally new organism, theres a lot of speculation that GM foods are treated as allergens foreign invaders by our bodies. Theres also the potential of splicing in a gene that is a natural allergen. The disadvantages of genetically modified food dont stop at health and environmental concerns. There are some serious social justice issues, where farmers in developing nations (and even those in rich countries) are generating massive profits for large corporations without any gains for themselves. In fact, lots of farmers in India kill themselves because they just cant see a way out of the downward spiral of paying for seeds that require paying for pesticides and fertilizers and machinery, then paying for more seeds and now having to pay for irrigation systems because their land is drying out Now, thats just a quick overview of the disadvantages of genetically modified food. I dont really like to dwell too long on the negative side of things, but sometimes its important to know why you dont do certain things. What I much prefer looking at is the positive side of what you can do instead. If you look at the benefits of GM crops, there isnt a need to use genetic modification to get them. Organic methods of growing food are about making plants optimally healthy, so that they dont need pesticides, fertilizers or herbicides. Growing healthy plants from healthy soil also makes for higher nutrient levels, and getting a variety of healthy foods is a better way of getting nutrients than protein-enhanced sweet potatoes or vitamin A-enhanced rice. Growing food in polycultures (lots of different types of plants together) rather than massive monocultures (like the enormous fields of corn or soy beans you see all over North America), and using different varieties of plants brings biodiversity that can better withstand extreme environmental conditions. Its like building diversity in your investment portfolio having a wide variety of stocks helps lessen the impact of one or a few companies crashing. Local food systems make shelf life less of an issue. Besides, do you really want to eat rice that could last for a few years? When the farmers are the ones who are starving, there is something seriously wrong in our food supply chain. My main question is this: If there are so many unknowns and disadvantages of genetically modified food, why dont we put our efforts into better solutions ones that address the root of the issues? The best way to avoid the disadvantages of genetically modified food is to grow your own and if you dont have space or time for a vegetable garden, a jar of sprouts on the windowsill is still awesome. If you need pointers, you can watch me show just how easy it is to grow alfalfa sprouts at home. Want to know it? Answers to lifes questions Want to know it? This blog has a little bit of everything to challenge your mind and find answers to lifes questions. Home Disadvantages of Genetically Modified Food By: Want To Know It Photo Credit wheat field image by Soja Andrzej from Fotolia. com Genetic engineering has been practiced in the form of selective breeding throughout the history of agriculture. However, the discovery in 1953 of the structure of DNA gave scientists the ability to insert genes from one life form into those of a completely separate life form, thus arriving at the modern genetic engineering movement. Genetic engineering is fraught with controversy regarding its ethical and moral implications and health effects. Cancer Genetically modified foods share certain toxic effects on the liver, pancreas, kidneys and reproductive system that may cause cancer in these organs, according to a Greek study published in the February 2009 Critical Reviews in Food Science and Nutrition. The widespread use of recombinant growth hormone a genetically modified substance in the agricultural industry is associated with increases in IGF-1, a growth hormone that, in excess quantities, can lead to cancer. Sponsored Links Humanization Special Rapid, Powerful, Full length IgG Short time only End-of-Year Pricing www. BioAtla. com Allergy Allergic reactions to genetically modified foods may arise due to the presence of proteins derived from the plant or animal used to modify the food, according to a U. S. study published in the July 2009 Toxicological Sciences. Current safety standards involve evaluation of the foreign proteins for allergenic potential, and a database of known allergenic proteins has been compiled, along with computer programs for assessing potential allergenicity of proteins. Additionally, animal and non-animal testing methods are being developed to assist in the process of screening for allergenicity. Intestinal Immunity Genetically modified corn caused an immune reaction in mice in an Italian study published in the December 2008 Journal of Agricultural and Food Chemistry. Mice fed genetically modified corn for 30 days showed altered levels of white blood cells; interleukins, a category of protein molecules that regulate immune function; and MIP-1beta, a chemical produced by certain white blood cells that initiates inflammation. The researchers noted that young and old mice were similarly affected by the modified corn. Endometriosis Rising rates of endometriosis coincide with increased consumption of genetically modified foods over the last decade, according to a Canadian report published in the December 2010 Gynecology, Obstetrics and Fertility. The presence of pesticide residue and foreign proteins in genetically modified foods may be the culprit, say the authors, citing the low-dose hypothesis that accumulation of toxins, along with added chemicals for the stabilization and delivery of pesticides designed for use with genetically modified foods, multiply the risk factors and could be harmful for their immune-toxic effects and ability to disrupt the endocrine system. Read more: http://www. livestrong. com/article/345554-disadvantages-of-genetically-modified-food/#ixzz2G2YGRNlT. Genetically modified food has been on the market since the early 90’s and since that time has attracted both positive and negative attention. Many people believe genetically modified food to be unsafe for human consumption and a hazard to the natural environment. There have been numerous studies undertaken to determine the risks involved with genetically engineering foods. As yet no set conclusions have been reached about the risk involved with genetically engineered food and strict guidelines have been established to regulate the genetically modified foods that can be sold to the consumer. What is Genetically Modified Food? Genetically modified food is food that has been altered at the DNA level. This is done by very precise genetic engineering techniques developed by scientists. In general the aim of genetically modifying food is simple, either to make the food more marketable or make it easier to produce. Most food that is genetically modified are plant products or vegetables such as soybeans, corn and tomatoes. The genetic modification of crops happened prior to scientific engineering via breeding and cross pollination. This method is still used to create crops that are more resistant to pests or to produce plants that yield bigger harvests. Scientific genetic engineering allows for a specific gene to be taken from one organism and transplanted into another. The gene responsible for making a plant resistant to pests can be quickly and efficiently transplanted into another plant allowing it to gain this resistant property. Disadvantages of Genetically Modified Food. †¢ There have been numerous criticisms leveled at genetically modified produce and it is important that we as the consumer are informed about the possible drawbacks of a product. †¢ Changing plants may have lasting effects on other organisms in the ecosystem. The change in a plant may cause it to be toxic to an insect or animal that uses it as its main food source. †¢ Due to the widespread use of insect resistant genes in crops the insects may become resistant to the genetic modifications. This would cause a widespread loss of crops and plants that have the natural immunity leading to a loss in biodiversity. †¢ Breeding and cross pollination across unintended species could occur resulting in things such as insect resistant weeds. †¢ Cross pollination can also occur across crops that are not genetically modified leading to lawsuits about who owns the GM technology and seed. The same thing can happen between organic crops and genetically modified crops making it difficult to maintain an organic status. †¢ A huge concern is that genetic modification could cause allergies in humans due to gene modification of plants. People may find that they are now allergic to other food products – people because they contain a gene from the allergen they have. One example is the use of a Brazilian nut gene in corn. †¢ Some studies have shown that it may affect the human digestive system in a number of ways. The incorporation of substances that may interact badly with one another in food or in fact be poisonous to people may happen. The modification of certain genes may make some plant substances difficult to digest at all. †¢ A major economical concern is that the control of world food sources may be limited to large companies because they own the GM seeds and have the money to start and finish the accreditation process. †¢ Genetic modification can also make it difficult to know what you are eating, as a plant could contain animals products via genetic engineering. This could cause issues for those with dietary restrictions and religious commitments. Related Articles.

Preserve Toothbrushes Essay Example for Free

Preserve Toothbrushes Essay Strategic planning is an important aspect for any business or corporation. Without it, an organization has no way to achieve a stated goal. They have no way to march towards their vision. In the case of Eric Hudson, an entrepreneur with a vision, he successfully created a business with a goal in mind and implemented a strategic plan to make it happen. Every small business startup has to have some edge in order to compete; otherwise they will be forced out by larger, pre-existing competitors. For Preserve, this meant identifying and filling a niche in an industry largely consisting of multinational conglomerates. For Eric Hudson, this meant thinking critically, having a plan, and implementing it in order to carry out his vision. Preserve found its niche in environmentally friendly toothbrushes. Preserve created an environmentally friendly toothbrush manufactured from recycled plastic. Further enhancing the product was a unique 45 degree angled head designed by Hudson’s father, an industrial engineer. At the time, the â€Å"green† movement was largely a niche in itself. While not a first-mover, others were already in the â€Å"green† products industry; Preserve had a modified approach of the second-mover strategy. It did not create the â€Å"green† industry, but it did create a new product. It was often a small market for â€Å"green† products, and the products that existed were often less effective and of poor quality. However, for Eric Hudson, he made it his vision to provide an environmentally friendly product without sacrificing quality or performance. Initially, Preserve’s toothbrush was marketed through grassroots movements and sampling. However, it was at one of the sampling events, that an employee from Stonyfield Yogurt, an organic yogurt company, approached Preserve and relayed the information that they consistently had leftover plastic from producing yogurt containers. With this bit of information, Preserve had a new strategic alliance that provided them with the raw materials to produce its product, and Stonyfield had the ability to promote tself as an environmentally friendly corporation as a result of its efforts. Preserve is a small, niche brand, and like most other small niche brands, their marketing budget pales in comparison to its larger competitors. In Preserve’s case, they focus on generating publicity to promote and advertise their brand. The best advertisement is free advertisement, and Preserve tends to generate a lot of magazine articles and television appearances. This in turn generates word of m outh testimonials, the most effective form of advertising. Businesses in general should continually strive to enhance their business model and update their strategic plan. A SWOT analysis is a useful tool for examining a business and how it is meeting its basic mission. By comparing the firm’s strengths and weaknesses with external opportunities and threats, a SWOT analysis provides managers with a view of the organization’s internal and external environments. In turn, this analysis can be used to determine if the firm is meeting expectations or if it is on track to meet expectations. Preserve’s director of marketing, C. A. Webb, admits that she doesn’t actually perform SWOT analysis’s, but certainly uses that form of thinking consistently when implementing new products, distribution channels, designs, or other decisions. In fact, it was this style of thinking that led to Preserve to focus its effort on packaging its unknown product in order to appeal to a more sophisticated market and consumer. It was crucial to target a specific audience because retailers could not devote large amounts of shelf space to a small brand such as Preserve. So Preserve made it their mission to go up against their large competitors in the only way possible—out marketing them. Business strategy and strategic plans are crucial for any business, small, medium, or large. Preserve certainly provides an excellent example of the necessity of a strategic plan and how following one can lead to success, provided the organization has the necessary strengths and environment as can be determined by a SWOT analysis. Preserve’s success can certainly be attributed to a successful business plan, as well as careful planning. Both are important lessons to be taken away from Preserve’s market presence.