Market Segmentation and domino effect Essay Example | Topics and Well Written Essays - 2250 words

Market Segmentation and domino effect - Essay Example The strategy formulation is when the revelation of business strengths and weaknesses, for the growth of a wide range of strategic plans for the successful administration of environmental openings and threats. The corporate projects are redefined by signifying attainable goals, emergent strategies, and setting execution procedure. Strategy formulation is germane both for organization's proposal in general and for individual product. Economic Conditions: economic conditions of the area or territory where the company market their product can affect the sales of the product. Thus it is important to understand the economic conditions such as unemployment rate, inflation rate, interest rate etc. before launching the product Innovation is the process of creating a commercial product or process and also an invention of the product. Thus, in terms of creating value, an invention's potential is reached only when a firm develops and sells a product that satisfies customer's current or unmet needs. McDonalds is known a the most popular fast food chain, with more than 3000 franchises in almost every country of the world. The global annual sale of McDonald is 57 billion dollars while more than 25 billion dollars only in America (Arndt, 2007: 64-72). Committed to stringent standards of product quality, service and cleanliness, McDonalds uses value pricing (the source of relatively low costs to customers) while offering menu and storefront variety and relying on the power of its brand name (sources of differentiation). Globally, McDonalds seeks to provide its combination of relatively low costs and some levels of differentiation in a culturally sensitive manner. In India, for example, the Maharaja Mac, which is made from lamb, substitute for the beef-based Big Mac. Popular corn soup is offered on the chain's menu in its Japanese units (MacArthur, 2001:13 -53). McDonalds marketing strategy mainly focus on children, parents having young children, teenagers and business workers. Market Segmentation for McDonald's new burger The company which practice the strategy of market segmentation is discouraging broad segmentations sections because minor segmentation helps in focusing and better understanding of the consumers. An advertising company states, "there will be no market for products that everybody likes a little, only for products that somebody likes a lot" (Cutler, p.76, 1989). While other marketers are of the view that market segmentations are very important (Linneman & Stanton, 1991: 50-67). McDonald has been in the fast food industry for a long time and it has ample experience of new food products. Statistics have depicted that the size of fast food industry has reached, to the annual growth of 4.8% in the industry of fast food. McDonald's per year income is almost 102.4 billion dollars, along with the global

Global Business Coursework Example | Topics and Well Written Essays - 1500 words

Global Business - Coursework Example There are many benefits for global business; for example, credibility and discipline. In the business market there is so much competition that companies sell outside the country to increase their sales. Increasing globalization of business is requiring managers to have a global business perspective and an understanding of the differences in the environmental forces of the markets in which they operate. The global integration of markets of various products is altering the structure of many industries. Companies have become more specialized in their production and national industries have become more concentrated. Although the effects of economic integration are well known, how changing market structures are impacting upon the competitive behavior and strategic decision-making of firms is less well known. The Characteristics of three different market strategies used by aggressive foreign competitors is established by Donald Feaver. The paper also considers how domestic firms might resp ond to the import competition under different conditions. An empirical model investigating the three import strategies is presented that seeks to identify distinguishing characteristics of the aggressive market entry strategies. The identification of key characteristics provides useful insight into how the domestic firm may best respond to either defend market share or maintain profitability. (Feaver, D. 2010). The model proves to be a great help in understanding a very crucial role of changing markets globally as markets keep on changing drastically every minute in the global business circumference. The business world has always relied on contractual agreements while conducting businesses. These contracts are very important as it contains a seal or sign of the business partner. But there are instances when the contracts are not fulfilled instead are nullified. The world of business ethics is an old discipline in most parts of the world, and in most of the cases, it is applied to th e everyday business world. Business ethics is a multi-faceted approach to honesty, integrity and straight-forwardness in the cooperative world. When business is done globally, business ethics play a crucial role as a business entrepreneur not only represents himself globally but also reflects this country of origin and residence. Hence, erroneous business terms or breaking of any ethics can prove to be a negative point in the global business world. The concept of the dark side of entrepreneurship was introduced by de Vries (1985). While entrepreneurship is normally considered as something positive, Petter Gottschalk in his paper considers the dark sides of it. His conceptual research paper applies entrepreneurship literature to generate new insights into entrepreneurship in organized crime and entrepreneurs in criminal organizations. Entrepreneurial opportunities can be exploited in a variety of ways, depending on strategy and available resources. As organized crime is growing local ly as well as globally, law enforcement agencies need to develop their understanding of strategic criminal entrepreneurship. Based on this perspective, the darker side of entrepreneurship needs to be further explored within the business sector in the global perspective in future research. Petter Gottschalk in his paper has concluded that innovation and learning can be found in both legal and illegal enterprises. A learning organization is one that changes as a result of its