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Demand sides factors mr bailey (Wage Rates The upwards sloping supply…
Demand sides factors mr bailey
Cultural differences
Cultural differences need to be acknowledged and a common ground establish in order for marketing efforts to be successful.
For many of us ,
humor
is a way to connect with others, but in business humor is a cultural minefield and is absolutely not culturally neutral . British humor sometimes has a hard time succeeding in the united states our self-deprecating form of ironic humor sometimes leaves many Americans baffled.
Diversity in tastes across international markets
. At a basic level, any
food
industry trying to break into international markets must be aware that people from different cultures have different preferences in how food tastes, some like more or less sugar, others eat foods that we in
Britans
would never even consider as food.
Tastes
do change and consumers can be educated to adapt their eating habits, but when breaking into a new foreign market it is best to overcome as many barriers to entry as possible in advance. In broader sense a persons taste is their cultural choices and preferences and these can cover a wide range of personal styles.
Example Question:
Identify five areas of cultural differences you would research before launching a new health food in an international market?
Religious beliefs- certain foods they don't consume.
The market gap in another country for healthy food
Advertising needs to be suitable to the market.
You need to name foods that are suitable to the market.
You need to be able to make sure packaging for food is appropriate for market such as right colors, language.
Information and communication factors
A significant area of cultural diversity is communication.
-Tradition and Politeness
-Language
Business meeting in traditional western countries compromise discussions culminating in a yes and a handshake. In eastern cultures, saying yes may simplify signify understanding of the discussion not an agreement.
Personal space differs from country to country
For international companies they need to communicate with local suppliers to make sure product is produces to expectations.
Colour
are very personal but they can also be culturally significant.
. Emotions and associations
.Green- enviromentally friendly
.Red means different things in different countries, however, in India, it is a symbol of power, fire, and wealth but in South Africa the colour is represented as mourning
Targeting markets
Some
products are universal
- they can target a mass market with little shift in the global approach.
Where an item is very
brand specific
and the custom,er is buying the brand the it can be sold as it to mass markets and no change
Local impacts of MNCs moving into communities
Wages
MNCs normally pay a higher wage the local firms.
Increase demand in local economies- for jobs firms compete by paying more
MNCs normally tend to tend unskilled employees to be able to work in manufacturing but in return the company can pay them low wages
Job Creation
Job Creation. MNCs create jobs and MNCS tend to be large organisations and thus employment can increase dramatically
long term job stability, training and development
Working conditions
MNCs often operate with more favorite conditions for their employees
They Make larger profits, which they are able to invest into improving staff facilities and working conditions
however whether MNCs actually improve working conditions remains controversial. Rather than investing they keep the profits and exploit the market
community
MNCs are highly concerned with brand image and so often invest into the local community
invest in transport links
They pay tax to the local authority
Environment
They can improve the environment
National impact of MNCs
Balance of payments
Technology and skills transfer
Consumers
Business culture
Economics growth
Tax revenue
Contolling MNCs
Political influences
The activities of MNCs could be regulated and controlled, the firms that don’t stand by regulation can be fined heavily, or some governments may not regulate companies to make sure that FDI doesn’t stop as they contribute positively to economy.
Legal contol
The government set standards for consumers, employees and supplier rights.
Self-regulation
Self regulation is when a firm monitors its own behavior, especially in relation to ethical or legal standards.
as well the firm would want to be ethical to have a good public reputation.
OECD guidelines, these are guidelines that control; the way that MNCs behavior by behaving to the human rights laws.
Having regulation can effect a firms competitiveness and productivity which can lead to profits and revenues decreasing whilst costs increase to implement regulations
Growth of the global labour force.
The global labor market has grown significantly since economies around the world have become more.
capital intensive, can decrease employment in the country as more money will be invested in machinery and less labor will be needed to produce products or services.
The global labour force is estimated to increase to a size of 3.5 billion by 2030.
The main contributors to this growth will be developing countries, which are moving from their traditional rural backgrounds, and towards industry.
Globalization has a caused more employment due to FDI.
MNCs invest in other countries so that innovation can
Wage Rates The upwards sloping supply curve shows the proportional relationships between how much the workers is paid and the my number of workers willing and able to work
Demand for the product with labor.
Since the demand for labour is derived from the demand for products, the higher the demand for the products, the higher the demand.
Productivity Labor
the more productive worker are, the higher the deamand for them. this can be increased with education and training, and by using technology.
Substitutes for labou
r. If labor can be replaced for cheaper capital, then the demand for labour will fall. this will shift the demand curve for labour to the left.
How firms can be more profitable
. The higher the profits of the firms, the more labour they can afford to employ.
The number of firms in the market.
this determined how many buyers of labour there is. If there is only one employer, for example the NHS, the demand for labour is lower than if there are many employers, such as in the supermarket industry.
Supply of labour
The supple of labour is calculated by the number of workers willing and able to work at the current wage rage, multiplied by the number of hours they can work.
Migration. Migrants are usually of working age, do the supply of labor at all wages rates tends to increase. Migration particularly affects the supply of labor at the lower wage rates
Advantages of eotk
