'Economic Globalization Essay\r'

'Economic globalisation is a concept that has become common in the novel times and it is popularity is t apieceing overtime. It virtually implies the process by which two or more countries frugalally desegregate with an aim of enabling a global mart or in an new(prenominal)(prenominal) words creating a global single grocery store (Fung, 2006, pp 1). The important affair for stinting integration is to alter the expansion of the trade, that is, mints argon alterd to flow beyond the borders of their country of origin.\r\nThe concept of frugal globalisation bear be comprehend to posses some(prenominal) positives and negatives depending on the context over which is being examine from (Gardner, 2005, pp 67) The concept of frugal globalisation butt be traced back to the ancient days during the trans-national trade period, which is several(prenominal) thousand years ago. The process of economic globalisation is in control of the world trade musical arrangement that pr ovide rules that need to be attended in enhancing effectual trade interactions between respective(a) countries of the world (Stalker, 1998, pp3),.\r\nThe main(prenominal) goal of the WTO is to change the averrs of bang-ups and go, the tradeers of the goods and the importers of goods to conduct their business with oft easy. The rules argon based on the agreements that argon right among the trading nations, where the agreements argon pass judgment to be authorise by the parliament of respective nations (Gu, 2006, pp 157). The WTO membership is before long 153 world countries with to a fault a subprogram of observers. The entrance fee date into the organization of various nations vary from whizz country to other as it is a wilful ingest aroundicipation.\r\nFor recitation, china joined the organization on 11 December 2001 (Peerenboom, 2007, pp 145). This project is based on carrying a research concerning the do of Economic globalization and chinaw atomic num ber 18’s accession to WTO on house servant help companies. The proposal starts at initiative providing the background teaching concerning economic globalization in china and its effect on the Chinese Economy. The research questions and objectives ar then provided, the stove of the breeding and the significance of the culture as the part of introduction. Literature review go away then follow methodology and lastly the time plan.\r\nThe research ordain use the Shenzhen skill Corporation in mainland china as one of the mainland China’s home(prenominal) null enterprises in analyzing the effects of economic globalization on domestic companies and the response of these companies to the rivalry that arises from economic globalization in ensuring grocery sustainability. 1. 1 priming coat Economic globalisation is sensed to watch enhance China to have an accelerated economic harvest-feast spargon-time activity the expansion of its market size, which enab les the country to garden truck more avocation the increased prerequisite for their products and services (Kotler, 2005, pp 37).\r\nThe country is perceived to be benefiting from the global market in a reasonable manner following the country’s comparative advantage of cheapjack labour (Lu, 2003, pp 567). The cheap labour is enhance with the laid-back population of the country that implies abundant impart of labour (Prigoff, 1999, pp 89). This situation provides the country with a belligerent advantage in the world market on the reason that its products be probably to bear a low toll comp bed to the ones of their competitors who experiences postgraduate cost of product (Allan, 2004, pp 17).\r\nFollowing the encouraging of economic globalization by China becoming a member of WTO, the majority of unconnected investments grew in China that were plausibly to struggle with the local anesthetic producers of goods and services (Hopper, 2006, pp 297). Shenzhen zip fastener is one of the domestic companies that felt the restore of the foreign investment competitor and responded to it accordingly in enabling market sustainability. Shenzhen button Corporation was established finished a gillyflower raising in 1993 on it being approved by the people’s government portion in the city of Shenzhen.\r\nThe last society was listed in the Shenzhen personal credit line exchange market in September 1993, and it was the first medium-large shargonholding enterprise in the national galvanizing causes to be listed in the stock market. The phoner was in addition the first public service stock federation to be listed in the Shenzhen stock market (http://www. sec. com. cn/en/ nigh/index. aspx? ModuleNo=080102 ). The caller is controlled by the shareholder, Shenzhen Energy reckoning caller-up that was founded in 1993 as a put in owned forefinger attach to.\r\nThe controlling gild had been growing rapidly in proportionate to the econom ic evolution of Shenzhen economy. The scope of business for the bon ton is to develop, produce, purchase and market the various convectional energies and new energies within China. The confederation engages in investments and carries operations that are meant to enhance development. It participates in the transporting raw(prenominal) materials that are qualification related and also refers itself in port, dock and storage diligence.\r\nThe company has investments and operations that are related to energy in the land industry, accepted estate industry and also the leasing industry. The company’s investments and operations are also extended to last technology industries that are meant to purify the efficiency in the work of energy. The company’s operations go beyond the border of China, that is, it involves in the import and the export of various goods. The goods that are exported and imported by the company complicate the set of equipment, supporting equipme nt, machines marionettes and also the vehicles that are to be employ in energy projects.\r\nThe company is also engaged in providing services that are related to the energy industry that include the aim, construction, precaution and providing the day to day operating services to energy projects. The company also provides service that includes staff training, denotation among other services that are mean to enable improved performance of the human resources in the energy industry and the making of informed decisions. The participation in developing environmental protection technology is a task that is carried by the company following the taint claims that are raised concerning the consumption of energy.\r\nFrom the accounting survey of the company’s performance in 2007, the company had a total asset base expenditure 24. 5 billion Yuan. The larger proportion of the company’s market is based in Shenzhen where it also hold majority of the share value of the plants . Its operations are mainly concentrated in Shenzhen and its surrounding. well-nigh of these plants in which it holds shares include Shenzhen Mawan General designingt, Shenzhen Yuelianngwan advocator plant, Dongguan Zhangyang Power Plant, Huizhou Fengda Power Plant, Guangdong heyuan Power Plant, and Ghana Combustion locomotive engine Power Plant.\r\nThe last two plants as provided in the list above are under construction. The company’s performance as been desirable overtime. Shenzhen Energy Corporation has consistently been awarded various tittles that include owing(p) enterprise, Advanced party committee and the law persistent tax payer. Therefore, Shenzhen energy Corporation can be perceived as being a local company in China that is liable(predicate) to be affected by the foreign investors in china in the energy industry as a result of economic globalization. 1. 2 Problem description\r\nFollowing the participation of China in the economic globalization as an avenue over which economic growth can be enhanced and the China’s accession to WTO can be perceived to have present some effects on the domestic companies in China. The effect on the domestic companies arises from fact that a number of foreign companies are in all likelihood to be established in China to compete with the domestic companies. The competition between the domestic and the foreign companies in a given industry imply that the market for some industry is likely to be divided among the competitors with respect to their competitory advantages.\r\nThe companies that produce their goods and services within the market standards and expenditure result stand a better chance of fetching a larger marker share compared to the companies that are less(prenominal) competent. In the wake for economic globalization and China’s accession to WTO, thither has been lovelya a large inflow of foreign companies into the Chinese economy. The energy industry has not been the exempt ion. A large number of violence enterprises have been flowing into the economy, and they are characterized by having a large capital base, they are of high technology and possess management efficiency.\r\nThese characteristics enable these foreign mogul enterprises to compete favourably with the domestic former enterprises like Shenzhen power breadbasket. The competition has been plastered between the domestic power enterprises and the foreign power enterprises that require respective enterprises to under civilise some strategies in enabling them to survive in the market. Shenzhen power heap has not been an exemption in the competition that is posed by both foreign power enterprises and the local enterprises. The stool has been thriving despite the increased and rigid competition in the energy industry.\r\nTherefore, the aim of the subject field is to bring the strategies that have been taken by Shenzhen power dope in enhancing the capability of being potent and profitab le in the energy industry that search to be flooded by the foreign power enterprises that have a large capital base, operate with high technology and posses impressive management skills. 1. 3 interrogation questions The main research question of the subscribe to is to explain the merchandising strategies that have been taken by Shenzhen power pot in enhancing market sustainability in an industry that is dominated by foreign power enterprises.\r\nThe questions to be answered in the reach for answering the main question include; i. How does the corporation gather knowledge that is meant to aid in throwing merchandising strategies? ii. What are the company’s target area groups? iii. How does the company do its pricing? iv. To what level is node cheer apply as a marketing outline? v. The disposition of public relation of the corporation? 1. 4 Research objectives The main objective of the paper is to establish the kind of marketing strategies that have been undertake n by Shenzhen power corporation in enabling market sustainability in foreign enterprises dominated industry.\r\nThe auxiliary objectives that forget enable to unwrap the main objective of the determine include i. let out the various means in which the corporations gather selective cultivation that is employ in calculative marketing strategies ii. localize the target groups for the company’s products and services. iii. Identify the criteria that the company uses to set its costs in ensuring impressive terms setting. iv. micturate the level of client satisfaction by the corporations v. build the temper of the products and services provided by the corporation to the market and their uniqueness compared to the products of the competitors.\r\n1. 5 Scope of the study The study bequeath be based on the face at the practices adapted by Shenzhen power corporation in relation to the attempt of the corporation to suss out market sustainability in tight competition offe red by the foreign power enterprises that are characterized by a large capital base, operate with the application of high technology, and inherent with effective management. Therefore, the study is meant to address the responses from Shenzhen power corporation following the tight competition in the industry that enable the company to thrive in the industry.\r\n1. 6 Significance of the study The significance of the study follows from the argument that economic globalization is accepted to disfavour the domestic industries, that impart have an adverse impact of retarding economic growth. Following the economic globalization of China and the example of Shenzhen power corporation, the above statement bet to be invalid because Shenzhen power corporation is muted profitable regardless of the economic globalization as a China’s domestic company.\r\nThis implies that, there are lessons that are to be learnt from the practices of Shenzhen power corporation following its enhanced market sustainability. The lessons allow for be applied by other corporations that associate their ill to the concept to economic globalization. 1. 7 Hypothesis of the study The hypothesis of the study is that domestic companies are not affected negatively by economic globalization, barely it is their economic inefficiency that makes them incompetent in competing with the foreign companies.\r\nTherefore, the companies’ short(p) performance after economic globalization is not as a result of the many competitors, it is because of their inefficiency that makes them less emulous. Competitive advantage is earned by designing relevant strategies and not by reducing the number of competitor. Competition is required in the economy in avoiding the excesses that are associated with the monopolies, because the inefficient companies are certain to exhalation the market due to their inability to compete favorable.\r\nTherefore, competition is likely to ensure efficient utilization of resources in tallying the ask of the society. Domestic companies should thus design strategies that are meant to enable them withstand the competition in the market, and that ordain also promote efficient utilization of the national wealth in meeting the needs of the society. 2. 0 Literature Review 2. 1 collection information for scheme designing On ensuring effective strategy designing, an organization is required to gather information that is meant to be used as a tool for strategy designing.\r\nThis act is meant to eliminate the act of designing strategies arbitrary as it posses the casualty of the strategies becoming irrelevant. Therefore, an giving medication requires to lay some measures in ensuring that information that is unattached and to be used for designing strategy is eidetic of the real market situation, otherwise the expected results from the strategies pull up stakes never be empathised (Hiebing, 2004, pp 2).\r\nThe source for information that go out b e useful for designing the strategies varies in relation to the nature of the industry, the operations of fundamental law and declare oneself to which the information will be put into. For example gathering information that is meant to be used in designing the marketing strategies, an agreement is required to get the information concerning the market condition (Boone, 2005, pp 37) The information concerning the market condition may include the desires of the customers, the market price of some products as provided by the postulate and the impart forces, and practices of competitors.\r\nThe right source for information that is to be used in designing marketing strategies should be obtained from the various agencies of the organisation who interact with the customers, because they are the ones who are convenient to the customers, hence likely to understand the customer desires than the managers who are responsible of administration related matters (Cundiff, 2007, pp 48) On ensur ing effective designing of strategies that are meant to improve the organisation’s competence, an organisation is supposed to base its redesigning using the ultimo experience.\r\nThis will enable an organization to avoid the possibility of repeating the errors that were committed in the previous designs (Bradley, 2005, pp231) 2. 2 Pricing. The pricing mechanism usually depends on the nature of the market structure. A market structure can any be a monopoly, an oligopoly or a competitive market (Gummesson, 2002, pp 137) Price setting in each market structure vary depending characteristics in each market. For example, in the competitive market, every blind drunk in the market is a price taker.\r\nThey are price takers on the reason that none of the incorruptibles can determine the price in the, otherwise the price in the market is influenced by the price mechanism. In a monopoly market, a firm has the powers to determine the price of its goods through the controlling of the supply (Luck, 1985, pp 132). For a firm to survive in the competitive market, the firm is expected to sell at the market price as provided by the market mechanism, otherwise its products are likely to experience a low demand compared to the products of the competitors (Adcock, 2001, pp 102).\r\nThis follows from the demand law, that explains that when the price of a good increases, the demand of the good is likely to decline. The decline of the demand follows from the put throughr either transmutation to the consumption of a substitute good that will benefit a competitor or surmount the consumption of the good due to the budget modesty (Hisrich, 2000, pp 112) In the competitive market, a firm that is likely to produce its goods and services at the lowest costs is the one that is likely to earn a competitive advantage over the other competitors in the industry.\r\nThis follows from the fact that the production of goods with low costs will have an impact of increasing the profit margin of the company when marketing the goods at the market price (Kotler, 1988, pp 199). This will also enable the firm to compete favorably in the price war in enhancing the demand of the its products, because the company will be able to effect the desired profits level even when selling the goods at the price below the market price (Gualtianan, 1995, pp 89).\r\nA firm will only attain the low costs of production if it produces the goods with a galvanic pile of efficiency in avoiding waste, that is, the firm should enhance optimum allocation and utilization of the resources in attaining an optimal essence of output at a given the circumstantial level of technology. Organizations can enhance the efficient utilization of the resources by adaptation the various practices that are meant to optimally utilize the resources that include human resource development and the adaptation of the appropriate technology that is certain to enable efficient utilization of the resources owned by a firm (Webster, 1995, pp 47)\r\n2. 3 Customer Satisfaction. Customer satisfaction plays an important role in creating consumer loyalties. The creating of loyalties will manner of speaking the firm from incurring a lot of expenses in advertisement on the look for customers (Davenport, 2001, pp 69). The created consumer loyalty will retain the customers, as they are likely to consume the products of the company in the time to come. Therefore, it can be perceived as an investment that is meant to benefit the firm to realize the flow of income in the future following the enhanced loyalty.\r\nConsumer loyalty is maintained by the firm providing high standard goods to their customers and listening to the desires of the customers, otherwise, the firm is certain to candid the already created loyalties in the future if it does not meet the desires of the customers. The firm is also required to engage in product innovations overtime that are supposed to improve the quality of the produc ts in factoring in the desires of the customers (Hutt, 1981, pp 201).\r\nThis will reinforce the existing loyalties and also create other more loyalties that are certain to ensure the future demand for the products and services provided by the firm. There normally exist variations in the desires of the customers, implying that the providing of standardized services and products to customers is certain to satisfy the customers in varied ways. In such a situation, a firm is required to either provide a wide range of products that is meant to meet the varied desires or provide customized products and services that are meant to improve the level of customer satisfaction.\r\nThe advantage for creating customer loyalties through customer satisfaction is that the firm is likely to reduce the costs in advertisement and other promotions because the customers that are retained are aware of the operations of the firm and its operations (Godin, 1999, pp 32). This will enable the company to re duce its cost of operation that will be reflected as an increased marginal profits, hence a positive step towards profit maximization. 2. 4 merchandise differentiation and patenting.\r\nProduct differentiation can be perceived as being a strategy that is meant to make the products of some firm unique compared to the products that are offered by the competitors. It will enable the customers to identify the products substantially without mistaking it for the ones offered by the competitors. Differentiation may include the adding of some features to the products offered to the market that is meant to sway the customers in enhancing high demand. The differentiations that make the product unique can be copyrighted to avoid the competitors from imitating the design of the product (Sandshoes, 2000, pp43).\r\nThe patents will bar the competitors from imitating the products, thus a marketing strategy that is meant to enable the firm to minimize competition. 3. 0 methodo logical analysis 3. 1 Design The research will involve the collection of information concerning the organisation in question, judge its performance over time, and mostly by direction at its profitability over time in relation to the various strategies that were taken by the organisation to enhance the performance.\r\nThe study will look at the marketing strategies that are adapted by the organisation and their effects on performance of the organisation. The evaluation of the effects of the strategies on the organization will be place on using the theories that have been established in alliance to the impact of various changes that are through with(p) within the organisation on the performance of the organisation. Therefore, the study will rather use qualitative information than quantitative given the nature of the topic addressed. 3. 2 Participants\r\nThe main participant in the research is the shenzhen Energy corporation. The company is chosen as a mimetic of the domestic companies in evaluatin g the impact of economic globalization on domestic companies and on how best the companies should responding through the designing of marketing strategies in enhancing competence. Shenzhen energy corporation has been used as a representational following its ability to withstand the competition from foreign companies in the energy industry in China. 3. 3 entropy collection\r\nFollowing the design of the research, the data that will be collected should be related to the marketing strategies that the Shenzhen energy corporation had taken in enhancing competitive advantage. The strategies that need to be identified include, how the company is enhancing customer Satisfaction, how does the company do pricing, how does the company reach the target group, how does the company gather information that is to be used in decision making concerning the design of marketing strategies, and how the company make its products competitive in the market. 3. 4. information analysis\r\n data analysis wi ll be done by confronting the identified marketing strategies with the existing marketing theory as provided in literature. This will enable the study to bring out the logic behind the strategies that were taken by Schenzhen energy corporation is ensuring its success. 4. 0 Time Plan. The research will take a time frame of ten weeks, where each week will be allocated its tasks as provided by the schedule below: Task Week making contacts on places where data and literature will be collected 1 Literature Reviewing 2-3 Collection of info 4 Data Validation 5 Data Analysis and Interpretation 6-7\r\nwriting a rough drawing report 8 Third party rendering of the report 9 writing the final report 10 Bibliography Adcock, Dennis. trade: Principals and Practice. Financial Times/ learner hall. 2001. Allan, Clement. Economic globalisation: Social Conflict. labour and environmental Issues. Edward Elgar Publishing. 2004. Bradley, Frank. International marketing strategy. Financial Times/ prent ice hall. 2005. Boone, Louis and Kurtz, David. Contemporary Marketing. Thomson South-Western. 2005. 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Butterworth-heinmenn. 2002. Hiebing, Roman and Cooperi, Scott. The One Day Marketing Plan for an organisation: Organizing and Completing a working Plan. McGraw-Hill Professional. 2004. Hisrichi, Robert. Marketing: Business Libr. Barron’s Series. 2001. Hopper, Paul. Living with Globalization. Berg publishers. 2006. Hutt, Michael and Speh, Thomas.\r\nindustrial Marketing management: A Strategy thinking of Organizational Markets. University of Michigan. 1981. Kotler, Philp. Principles in Marketing. Pearson Prentice pressure group. 2005. Kotler, Philip. Management Marketing: analysis, planning process, implementing, and controlling. Prentice hall. 1988. Peerenboomi, Randalla. China’s Modernization. Oxford University Press. 2007. Prigoff, Wyner. economics of the Social workers University of Michigan. 1999. Stalkeri, Peter. The Social Effects of Globalization. Prentice Hall P ublishing. 1998. Webster, Fredrick. Industrial , Marketing Strategy. John Wiley and Sons. 1995.\r\n'