Critical analysis of the impact of e

Basic examination of the effect of e-relying upon the clients of the financial division in the unified realm and their future conduct Essay Outline1 Abstraction2 Chapter 1-Introduction3 1.1 Internet Banking in the United Kingdom and Europe4 1.2 E-banking security incites dread or lack of concern for the British populace5 1.3 UK Consumers avoid e-banking6 1.3.1 Cuting costs, non customer attention7 1.3.2 Educating clients8 Chapter 2-Literature Review9 2.1 Executive Summary10 2.2 the internet and its benefits11 2.3 What is on-line banking about?12 2.4 Internet Banking13 2.5 Online banking security14 2.6 Current web based financial security issue15 2.7 An outcome about on-line banking security and its hereafter16 Chapter 3-Research Methodology17 3.1 Evaluation of five E-Banking Sites in the UK18 3.2 Methodology for Evaluation of E-Banking sites:19 Purposes and aims:20 3.3 Research Method21 Chapter 4-Research Findings22 4.2 Advanced Information Technology and Banking Efficiency23 4.3 Problems Associated with the Advances in Information Technology24 Advantages of e-banking:25 4.4 On-line banking: phishing for security26 4.5 B enefits from the UK customerspoint of position27 4.7 Motivational features of Internet bank use Deliberation This exploration paper will investigate the highlights of the conventional banking and e-banking. Furthermore, exploration will put the likenesses and contrasts between the down to earth and this present reality banking industry customers. Recognize the contrast between the universe of e-banking and the existent universe in footings of customer interchanges. Figure out which customary customer interchanges can and can non be effectively ported to the universe of e-banking. Measure what new correspondences methods are unambiguously accessible known to man of e-banking. Furthermore, show how the use of sight and sound engineerings makes strong e-banking sites. Conversation of customer imparting plans and genuine representations will be introduced. Section 1-Introduction 1.1 Internet Banking in the United Kingdom and Europe In the United Kingdom, Internet banking administrations are accessible and given by 12 Internet banking administrations providers. The Egg, for outline, is an Internet banking administration provider ( bar current history attributes ) that has in excess of 150,000 customers visited their site during October 1998 to July 1999. The Internet banking administrations providers in the U.K. have experienced an expanding interest for cross guest installment minutess for littler total of hard cash and installment over the Internet. Numerous Bankss proceed to create and build up new financial administrations on the Internet so as to satisfy and run into their Internet-based customer requests in term of clasp, effectiveness of use, security and privateness in the U.K. ( Birch and Young, 1997 ; Mathew and Dagi, 1996 ; Gandy and Brierley, 1997 ) . In June 1999, the U.K. also, eight other western European states: France, Spain, Portugal, Germany, Switzerland, Holland, Luxembourg, and Scandinavia have become prima states in providing Internet banking administrations in Europe. Germany other than has been evaluated as the express that has the most elevated figure of Internet banking administrations providers in Europe ( Blue Sky International Marketing, 1999 ) . In spite of the fact that the UK has littler figure of Internet banking destinations on the Internet than in Germany, however it has been appraised as the highest caliber and usefulness at no additional charges to their customers in Europe. In any case, there are two Bankss in the U.K. that charge additional expenses for Internet banking administrations, Nat west and NPBS In Scotland, the Bank of Scotland does non flexibly 24 hours Internet banking administrations by means of the site. Clients can non dish to Bank of Scotland site between 1:00 a.m. what's more, 5:00 a.m. during weekdays and among 12 PM and 5:00 a.m. during ends of the week. During the bank site is non open, an everyday back office tasks and care is performed to ensure truth and security blending to neighborhood impediments, guidelines and statutes. The vast majority of customers in the U.K. furthermore, European states use Internet banking administrations to get some information about their exceptional adjusts in rescuing and look intoing accounts, and inside informations about their most recent or last minutess for their everyday rapprochement. The frequence to course the customer s history per twenty-four hours is somewhat high. Numerous Bankss, henceforth, have given many position only highlights to customers to request and see the data on their chronicles each piece every now and again as they need per twenty-four hours. As a result, the Bankss have decreased both working expenses and work hours for their staffs at call focuses and nearby regions for frequently asked ( FAQ ) and unyielding minutess. 1.2 E-banking security incites dread or lack of interest for the British people An ongoing overview by examiner Forrester Research has uncovered clashing situations about the security or in any case of internet banking. The investigation of 11,300 UK net clients found that while numerous web based financial buyers are smug about security, a major minority have abandoned line banking as an immediate result of security alarms. Most UK net clients are perceptive of security dangers like phishing and keystroke logging however are resolute by these perils and anticipate that their Bankss should cover with the activity, despite the fact that these attacks are tossed against the purchaser s Personal PCs rather than a bank s ain frameworks. In a perfect world clients need Bankss to give a spread warrant against misrepresentation. In light of reactions to its examination, Forrester infers that an expected 600,000 from an aggregate of 15m endorsers have discarded on-line banking as an immediate result of security trepidations. Forrester figures that clients are befuddled and Bankss need to step up their endeavors to instruct customers about on-line misrepresentation. Measures to abridge the usefulness of certain accounts ( for outline telling how much cash can be moved on any twenty-four hours ) , more grounded the internet banking trademark and improved customer profiling are other than expected to help against security dangers, it exhorts. In add-on to individuals who intend to drop the internet banking accounts as an outcome of security dreads, another fifth of net clients state that security dismays will end them ever banking on the web. 1.3 UK Consumers avoid e-banking Clients despite everything esteem direct contact with existent individuals in their bank development. An enormous heft of bank customers imagines that a web based financial assistance is non of import for their relationship with a bank. Orchestrating to an investigation one tierce of customers rate e-banking as an of import administration, and of those solitary 22 % truly use it. Considerably increasingly unwanted insight for some Bankss will be the solicit happening that more than 30 % of customers do non even know whether their bank gives on-line benefits by any means. The discoveries balance obviously with the market viewpoints among banking administrators. In a prior Deloitte study, monetary administrations administrators had anticipated that customers would be anxious to make their putting money on the web. 1.3.1 Cuting costs, non customer consideration Julian Badcock, retail monetary administrations investigator at Deloitte, said customers were without a doubt non assessment the internet or synergistic administrations as a cardinal factor in mensurating their fulfillment with their financial assistance provider . An antiphonal help and the sentiment of being treated as an esteemed customer were significantly more prone to do shoppers experience content with their bank. Also, more than 50 % might suspect it is of import to hold rapid and simple course to a nearby development. The discoveries of the examination make rancorous perusing for holy messengers of the internet banking unadulterated plays like Virgin and Egg. Julian Badcock s choice: 90 % of customers at present demoing no contribution in getting financial administrations from new participants. Set up members, then, need to stress whether their gigantic putting resources into on-line banking is cash acceptable spent. The interest for costly customer consideration does non si t pleasantly following to the cost-driven move to internet banking. 1.3.2 Educating customers Since quite a while ago run seeks after cost retirement funds will just occur, if purchasers can be convinced to use the administrations. An ongoing report by give withing immovable Cap Gemini Ernst A ; Young had discovered that directly simply 4 % of all bank minutess in Europe are done on the web, a figure expected to lift to 25 % by 2003. In the United States simply 3 % of minutess are done on the web, and at that spot developing possibilities are increasingly unobtrusive, with the segment of on-line minutess seen to make 12 % inside three mature ages. Such developing rates, in any case, can only go on if Bankss start to teach their customers about the advantages of internet banking, Deloitte s investigators state. Part 2-Literature Review 2.1 Executive Summary How secure is on-line banking for the standard and non so customary the internet client? The internet is going an all the more comprehensively known signifier of imparting around the universe these yearss and it s utilized generally in simultaneousness with individual/business apparatuses to spread out the horizons of web based business. The same number of little to large concern follow the propensity, searching for flooding overall gains, by puting their anxiety on the web, they are left to happen a danger in the on-line universe in footings of security issues. This can be stretched out in regards to online Bankss and financial foundations that give the worries their minutess, alongside the current threats of individual privateness and insurance absconds related with banking on the web. Web based banking is non just about sing chronicles on-line, or paying measures. It has more to that, it incorporate reassigning of financess, shopping on-line and so on. As a demonstrated truth, lawful offenses staying of beguiling conduct have assaulted national Australian Bankss and are directly in lawful problem over the astounding issue. Before long, questionable of the base of the offense, Bankss have been constrained into an inadmissible st

Mary Shelly’s Frankenstein Essay

 The chief has made it understood to the crowd that the film will be about existence and demise by having a sculpture of Jesus nearly toppling over, close to an enormous figure of the messenger of death speaking to death. At the point when Frankenstein is uncovering the grave, he tosses soil over the sculpture, maybe speaking to how he has no regard for death. The props and outfits are utilized mirror the setting and air. Dr. Frankenstein’s garments contrast from the remainder of the cast, wearing a cravat and white shirt; the executive may have done this to speak to his higher status in the public arena, contrasted with the grievers or Frankenstein’s hunchback collaborator. In Branagh’s film the ensembles are generally fundamentally the same as, they have no significant impact in the initial four minutes examined. Anyway they help to keep in with the mono shade of the ice and pale appearances. These flat hues make a distinct and sensational complexity to the splendid red blood which goes ahead screen when the monster’s hand drastically shows up. The make up worn by the characters in Whale’s film is overwhelming, articulated and showy; planned with the goal that individuals in the performance center could see the countenances from far away, yet on camera it looks overstated and over the top. Branagh has utilized make-up unobtrusively and everything being equal, making red cheeks to show cold conditions close by untidy hair and rough looking countenances to speak to the timeframe since the characters have been close to progress. Whale’s showy past proposes why all the outward appearances and developments are unmistakable and misrepresented. In spite of the fact that Branagh additionally has a recognized history in theater, Whale was working in the beginnings of Hollywood when film was depicted a lot of like venue on screen. In the principal close ups of Fritz and Frankenstein they are both wide-looked at which hints cliché crazy lab rats and the two characters creep around the burial ground with sensational stage murmurs. The outward appearances and feelings in Branagh’s Frankenstein are far more subtle and it is because of this reality that there is significantly more change in feeling over a short space of time. During a couple of moments, the declarations of one character changed from dread, to pride, to focus and afterward outrage. This feeling change is marginally overstated to allow the crowd to draw in and relate to the characters. One way that Branagh lets the crowd utilize their creative mind is by his utilization of situating inside the edge. Most shots are firmly edited to the appearances with the goal that we can see articulations obviously. Notwithstanding, when the beast was murdering the mutts, Branagh shrewdly cut the shots with the goal that the tension could be proceeded and drawn out. This strategy for situating is a major complexity to Whale’s. The vast majority of the shots in his variant are mid or long and there are not many perspective or close ups. This is halfway because of the absence of innovation and experience. Branagh may have utilized increasingly daring and fascinating edges yet he has had 60 years of Hollywood to think back on; Whale was at a tremendous inconvenience in this regard and this ought to obviously be viewed as when concluding who is the better chief. Whale did attempt to be gutsy in certain regards: he utilized a viable high edge shot towards the finish of the four minutes, it indicated Fritz and Frankenstein strolling towards the scaffold, which elevated the sentiment of a difference in setting, and it plainly demonstrated the rough scene, which additionally expanded the feeling of dread. Whale has put the characters so they were exceptionally focal inside the edge. The camera adheres to the activity and tails it, much like in the event that one were watching a play, a strategy most presumably impacted by Whale’s history in dramatic coordinating. Branagh’s altering is significantly quicker than Whale’s so this gives him more degree to change the camera edges. Notwithstanding, the purpose behind this distinction in speed could be down to the settings of the works, not viability of coordinating. Branagh’s film starts in a disorderly tempest with heaps of activity, though Whale attempts to indicate feeling of dread and moderate ghostliness. Branagh attempts to make an enthusiastic effect and assumes that the crowd will comprehend and follow the activity, though Whale’s style is progressively regular and his altering is utilized for pragmatic purposes and to see the setting and to follow the activity. As a group of people in the 20 and 21st century, we are so used to the traditional stun strategies, that we neglect to consider their impact in more established movies, for example, Whale’s Frankenstein. In spite of the fact that parts of Whale’s creation may appear to be dated to today’s crowd, there’s an environment present that would be difficult to re-make, even with mechanical advances. Kenneth Branagh’s Frankenstein, for all its utilization of present day innovation, does not have the barometrical develop that Whale’s appears to have. Whale’s film is progressively similar to the nineteenth century novel; his style suits the moderate revealing of account, as in the book, while Branagh passes on a feeling of activity and quick moving anticipation to fulfill the ever-requesting crowd. The quick moving activity implies that Branagh has not gotten an opportunity to develop a feeling of dread; everything is over sensationalized and with an exceptionally quick pace. Despite the fact that Branagh has to be sure made an air develop, utilizing all the cutting edge innovation accessible, James Whale’s Frankenstein has stood the trial of time and, in spite of the fact that it was coordinated 63 years before Branagh’s, has utilized the best procedures accessible to develop an environment of pressure and dread. In the event that a group of people of today discover Whale’s coordinating more or similarly viable than Branagh’s then envision how well it would have taken a shot at crowds not used to this degree of loathsomeness inside a film. Show review just The above see is unformatted content This understudy composed bit of work is one of numerous that can be found in our GCSE Mary Shelley area.

Blog Archive MBA News Kaplan Survey Implies That Importance of GMATs IR Section Still Unclear

Blog Archive MBA News Kaplan Survey Implies That Importance of GMAT’s IR Section Still Unclear A recent Kaplan survey suggests that the Integrated Reasoning (IR) section of the GMAT exam still has only a limitedâ€"if anyâ€"influence on B-school application decisions. According to an October 9 press release, Kaplan Test Prep surveyed more than 200 U.S. graduate program admissions officers between August and September of 2014. A sizeable 60% of those surveyed (including respondents from 11 of U.S. News World Report’s top 30 MBA programs) claim that an applicant’s IR score is not an important part of their prospect evaluation process. The IR section was introduced in 2009, which means MBA candidates who applied in 2014 or earlier years may have submitted GMAT scores without IR results (scores are valid for up to five years). With little data to compare, admissions representatives hesitate to base major acceptance decisions on this criteria. While numerous admissions representatives may say they place minimal significance on applicants’ IR results at this point, our friends at Kaplan (and we here at mbaMission) encourage all MBA hopefuls to thoroughly prepare for and strive to do their best on every portion of the GMAT. Comprehensive test scores and proven reasoning skills can only help your chances! Share ThisTweet News

The Negative Impact Of Social Media - 852 Words

The Negative Impact of Social Media According to the Pew Research Center, â€Å"41% of social media-users have experienced at least one negative outcome as a result of using a social networking site.† In this article, Norton uses logos, pathos, and ethos to explain his standpoint to his audience. Logos are used when Norton brings up the legal issues of social media such as privacy concerns. Bringing the reader into Norton’s own personal experiences of abuse and name-calling uses pathos. Finally, ethos are used indirectly in the article due to the fact that Norton is a writer and has experience with social networking and the negative impact it can have. Norton uses logos, pathos, and ethos by establishing evidence and logical points in his article to persuade his audience against using social networking. This article, written by Alan Norton, addresses several reasons why people should not use social networking sites. In Norton’s first points, he mentions several legal issues and privacy concerns tha t come along with social media. Norton also describes the emotional effect that these sites can have; with their usage comes along abuse and peer pressure. Furthermore, Norton’s last point is the plain fact that social networking is just not for everyone. Giving real-world examples and addressing the negative aspects of its usage support the author’s argument by not using social media. Norton’s article is aimed at the percentage of society that is currently active on socialShow MoreRelatedNegative Impact Of Social Media975 Words   |  4 Pagestools for survival to the invention of social media for communication. Social media started playing a big role in the world around 1997 when a site called Six Degrees was created. However, in 1999, the first blogging site became popular and this type of social media is still popular today. For example, Instagram, Snapchat, and Twitter can all be considered blogging sites that are popular in current time. Due to social med ia, there has been a decline in social interaction. According to a UCLA psychologyRead MoreNegative Impact Of Social Media1233 Words   |  5 PagesMedia in all forms has transformed the world in many aspects of the society as a whole as well as individuals lives. With technological advancements, the influence of social media has had a significant and detrimental effect on the masses. In Neil Postman’s Amusing Ourselves to Death he discusses the role that television plays in society and how its methods of providing information to the public are nothing more than entertainment. In addition, Aldous Huxley’s Brave New World Revisited discussesRead MorePositive And Negative Impacts Of Social Media Essay1082 Words   |  5 Pagesas there are positive effects of social media, there are also negative effects as well. False connections are often made on SNS. Ninety percent of students have Facebook which is constructed to be socially shared with any user. It may seem obvi ous that users of social networking cannot stray far from reality from his or her online identity, although the users can depict what he or she wishes to display (Moreno et al. 452). There are many young teenagers on social networking websites posting trueRead MoreNegative Impacts Of Social Media Essay1854 Words   |  8 PagesAaron Hanson Mrs Sharifian American Government 20 October 2017 The Impacts of Social Media Social media is a vast network of connections that provide instant communication of information’s from across the globe. This includes news, file sharing, opinions sharing, life sharing and so forth. One single click can reach to millions of people who can instantly get notified of an occurring situation and other important updates. 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According to a report conducted by the Pew Internet American Life Project in 2012, ninety-five percent of individuals aged 12-17 use the internet; and eighty-one percent of those use social network sites (Pew Interest). Although it is known that social media can have a useful impact on lives, often times people forget that with a positive comes a negative. The continual use of social network sites will impact teen lives more negativelyRead MoreThe Negative Impact Of Social Media And Body Image1452 Words   |  6 Pagestremendous exposure to the media has a negative impact in the consumers and their health, as well as their body image. The ideal body image that is seen by today’s society is tall, thin, muscular, and fit. It is constantly advertised in various forms of media including, such as televisions, magazines, internet, and smartphone devices, which make others feel insecure about appearance and health. The constant reinforcement of the ideal body image throughout the media negatively impacts society through self-esteemRead MoreInstagram : The Positive And Negative Impact Of Social Media967 Words   |  4 PagesIn 2012, I was in the seventh grade. Around that time, this social media app called Instagram became popular. I was not allowed to have social media at the time but I really wanted an Instagram. People around my school asked me what my username was, but I could not give it to them because I did not have an account at the time. Later that year, everyone in my school had one, and if you did not have one, then you were considered â€Å"lame†. My best friend was starting to stir off and I became upset. ForRead MorePositive And Negative Impacts Of Social Media On Society853 Words   |  4 PagesThere are various ways in which a positive social nudge can be initiated to help individuals experiencing this issue. Although a social nudge is what is influencing the deviant behavior, it can also be reconstructed in a way that decreases deviant behavior. According to Thaler and Sunstein, social pressures nudge people to accept some pretty odd conclusions (2009). Although the goal is not to get people to accept an odd conclusion, knowing that social pressures have that much effect on an individualRead MoreThe Negative Impact of Social Media/Networking on Today’s Society2211 Words   |  9 Pagesgets, the more it has a negative influence on society and individuals. To me, social media has created a new form of bullying, stereotyping, and racism. Along with the overuse of the internet, giving social media more authority, where it is able to expand in form. And last but not least, the way people have taken something that started out constructi ve, and mutated it into something that can be so negative. Some days when I sit and look at how the world is so reliant on media outlets and the opinions

Enron Scandal - 2929 Words

CILM Book Review 0834172 IB3A20 Critical Issues in Law and Management Book Review Enron, Titanic and The Perfect Storm - Nancy B. Rapoport Student No: 0834172 Word Count: 1500 1 CILM Book Review 0834172 Two years after Enron filed for bankruptcy in 2001, Nancy b. Rapoport wrote this essay expressing her unique perspective on the real cause of Enron’s demise. This essay catches the reader’s attention instantly, because unlike abundant other articles written on the biggest corporate scandal in American history, the author here rejects Jeff Skilling’s (former president of Enron) argument1 of what brought about Enron’s downfall. She instead uses another metaphor, arguing that Enron’s downfall was more like Titanic’s-†¦show more content†¦I would go a step further to say that it seems like the author has taken the metaphors a bit too seriously and would agree with Mark’s comment in ‘Lawyers in the Perfect Storm3’ that ‘’her insistence on comparison of the Enron scandal to the tragicomedy of human errors in the sinking of the Titanic underestimates the importance of the systemic failures that allowed the m align leadership of Enron to produce such an enormous disaster.’’ Nevertheless, she develops her further argument well as she explores the inextricable link between Character and Leadership. She elaborates on the inevitable failure of character in Enron leaders to resist illegal deals when the supervisors of those leaders were also engaging in side deals (pg 209). Her close attention to the underlying conflict of human traits and situations, aggravated by the magnitude of profits offered by the Enron culture justifies her statement, ‘why it must have taken significant strength of character to resist getting on that gravy train’ (pg 210). 3 Sergeant, M, .2003. Lawyers in the Perfect Storm, Washburn Law Journal,. pg 3 4 CILM Book Review 0834172 Moreover, the author does not merely conclude her argument, rather deals well with counter evidence as she considers the few people that did resist and play the role of whistle blowers. Her point that ‘most whistle blowers at Enron were suppressed with downright abuseShow MoreRelatedThe Enron Scandal854 Words   |  4 PagesThe Enron Scandal Background Enron Corporation was an American energy, commodities, and services company based in Houston, Texas. 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Essay on Generation Y The Surpassed Struggles for...

Life is a struggle in itself, but to do well in life one must do well in school. The older generations view Generation Y as lazy â€Å"kids† who want to take the easy way out. Just because things look easy, doesn’t really mean they are. Computers and calculators may make tasks easier but because of this, harder tasks are given. This new â€Å"Lazy† generation must defy all odds just to get through the crazy competition that is high school and college to achieve a well-paying job. The definition of success as we know it is now much harder to attain than it once was for Baby Boomers; yet this â€Å"lazy† generation known as Millennials continue to achieve it while overcoming these difficulties that previous generations never faced. Older generations†¦show more content†¦High school students took over three million AP exams in 2012 (ANNUAL AP PROGRAM PARTICIPATION 1956-2012). This shows you how much high school students are competing today. The competition is so great that it even bleeds into middle school. Students try to take more advanced classes in middle school so they can have a head start in high school. What’s crazy is parents will even put their children in special â€Å"gifted† elementary schools now to try to get an even earlier edge on the competition. â€Å"There has been a boom in the popularity of these programs in recent years, and some only accept children who score in the 99th percentile on admissions tests.† (What are your options?). That is what the world is coming to. Just as Millennial are finishing roughing it through high school, they have a to do all their college applications. Due to the Internet, something Baby Boomers did not have back when applying to schools, the difficulty to send out applications has decreased. Today there is something called the Common App, which allows students to create a single application and send it to any and as many schools as they desire. This simplicity allows many more students to apply and allows each student to apply to many more schools. Susan Adams of Forbes.com writes, â€Å"When I was a high school student in the late 1970s, I remember typing out each form and tucking the pages into a bulky envelope. Now students can fill out an onlineShow MoreRelatedAkeelah and the Bee - Essay3141 Words   |  13 Pagescan relate to because they are as intelligence and smart like her. The professor from UCLA, Dr. Larabee, is introduce to her by Mr. Welch and becomes her spelling coach for the spelling bee competitio ns. Akeelah’s spelling competition brings achievement, empowerment and neighborhood pride to everyone affiliated within her community. 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Marketing Channel Management Exam free essay sample

Please start each section on a new page. 3. Please write clearly and neatly. Marks will be penalized for bad writing. 4. Cross out any unwritten pages in the answer sheet. 5. Calculators are allowed to be used during the exam. Section A 5 X 2 Marks = 10 Marks This section consists of Multiple Choice questions. Please mark you answer in the answer sheet by writing only the option number after the question number. Please write only what is asked. As a thumb rule, write a maximum of a page for each 10 marks and half a page for a 5 marks question. 1. Define Marketing Channels. Explain how and why marketing channels are managed. marks 2. What are the responsibilities of a sales executive? 5 marks 3. Illustrate the sales call process and write down all the steps involved in the sales call. 5 marks 4. Draw a typical marketing channel for a mass product and illustrate the flow with directions for the following A. We will write a custom essay sample on Marketing Channel Management Exam or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Money B. Stock C. Information 10 marks Section C This section consists of numerical questions. Please illustrate all steps and try to show calculations wherever possible. Please state any assumption you are making clearly. Question: 15 marks Please estimate the number of sales executives, and supervisors needed for the following Channel Partner for Hindustan Singleshaft which is a top FMCG company in India. The channel partner has to service 1000 outlets. The categorization is given below along with the time required to complete a sales call at each outlet and the frequency of visiting the outlets. The time required to travel from one outlet to another is 10 minutes on an average. Each Sales Executive has a six day work week and works for 10 hours a day including an hour long lunch break. So each sales executive has 9 effective hours of work for 6 six days a week. Assume a 10% buffer sales force in your estimation. For every 4 sales executives one supervisor is required to supervise them.

International Marketing Management Essay Example

International Marketing Management Essay Avery Wellness (M) Sdn Bhd is a private company specialise in total skin care and beauty product solutions in Malaysia. The company began its operation in Malaysia since 1990. Follow Me Industries Sdn Bhd is the sole manufacturing facility for all skin care and beauty products to Avery Wellness (M) Sdn Bhd. Avery Wellness business model involved in marketing and distributing skin care and sun care products within Malaysia market. The main distribution centres in Malaysia focus in all pharmacy chains, departmental stores and beauty retailers.The company is envisaged to transform from a local enterprise into a multinational brand company with growth plan to tap into overseas market. The company has a headquarter base in Subang Jaya Industrial Park with total 80 employees. The advantage of Avery Wellness products are HALAL accreditation and this gave the company a strong market presence in Muslim segment. The company with its marketing and branding strategy by leveraging on local Muslim celebrity as ambassador to successful help the brand enters the Muslim market. 2. 2 Vision and MissionAvery Wellness is visioning to capture the South East Asian market and to emerge as a dominant company in providing skin care and sun care solution for all consumers. The mission of Avery Wellness is to provide continuous innovative and reliable product to overcome all man and woman skin problems with a product certified halal accreditation. 2. 3 Sales Revenue Avery Wellness average sales revenue for the past 3 years from 2010 to 2012 mainly contributed from 3 major brands which are Ageless solution, Clear Clean and Sun Safeâ„ ¢ (Table 1).The percentage of contribution is 46%, 20% and 34% respectively. The Sun Safeâ„ ¢ brand has two main sun care products which are Sun Safeâ„ ¢ Face and Sun Safeâ„ ¢ Body. Currently the market share for these two products in sun care category is more than 35% in Malaysia. Table 1: Sale Revenue on Skin Care Brand for Avery Wellness Brand 2010 (RM/Million)2011 (RM/Million)2012 (RM/Million)Averagepercentage Ageless5. 55. 86. 05. 7746% Clear Clean2. 42. 52. 52. 4720% Sun Safeâ„ ¢4. 24. 34. 34. 2734% Total Revenue12. 112. 12. 812. 5100% 2. 4 International Market Entry Objective In view of sales revenue stagnancy from year 2010 to 2012, and increasing of fixed and variable cost yearly such as cost of goods sold, salaries and wages, interest expenses and promotion, thus impacting in net income yearly. In fact, there is significant descent of net profit from 11. 4 % to only 9. 9% in year 2012 (Appendix 1). In order to sustain business growth and achieve imperative profitability, step to enter international market is essential.In particular, sustained economic growth has been experienced in emerging economies, which have become a source of expanding market opportunities and are currently underpinning the global recovery (Zizah Che Senik et al, 2010). Malaysia policy of governance encourages local SME to go International . In the effort to encourage SMEs to go global, SME Corp has introduced the National Mark of Malaysia Brand which is a certification process, audited and monitored by Sirim.Through this initiative, Malaysian Brands are developed not just for the local market, but with the intention that they would be good enough to penetrate international markets (Mohd Rithaudden Makip, 2012) In addition, the SME Master plan (2012-2020) has also outlined a High Impact Programme – Going Export Programme that will focus on addressing challenges faced by SMEs on entering new markets overseas, which include high upfront costs and the lack of detailed knowledge about the markets and local competitors (Charles Fernandez, 2013). 3 Country and Market Entry Analysis 3. 1 Country AnalysisIndonesia, Thailand and Singapore are selected as the potential markets for Avery Wellness’s expansion plan to sell HALAL accreditation sun care products. In order to minimize business failure and find out the b est of the country market, three candidate markets (Indonesia, Thailand and Singapore) which are the most nearest country to Malaysia are chosen to make comparison for the first step of Avery Wellness to success. The selection of oversea markets is a vital issue for a company, this is imperative as the international business environment is turbulent and more uncertain as compared to domestic market.Therefore, fully identify the potential opportunities cab be exploited while minimizing threats and risks (Fariza Hashim et al, 2010). 3. 1. 1 PESTEL Analysis PESTEL analysis will be used to focus the discussion within this analytical framework on the political, economical, social, technological, environmental and legal factors that may influence the business operation for the company (Kotler 1994). A company must be aware of many considerations such as differences in language and customs as well as political and legal when doing business internationally (Farese et al, 2002).Table 2: Comp arison of PESTEL on Indonesia, Thailand and Singapore Analysis FactorCountry IndonesiaThailandSingapore Political Legal(tax)Doing business in Indonesia is complex and time consuming. This is because of negotiation through the regulatory and industrial landscape. Corruption in the country is active at all levels. Skin care Import duties and taxes of 10% are applied in this country. Thailand is an export-dependent country. A total of $ 223 billion worth of goods in 2011 were exported, accounting 69% of its GDP. Corruption and lack of transparency still a major concerns especially in procurement tender.Thailand’s average applied tariff rate is 11%. Highest tariff rates applied to imports competing with locally produced goods. Skin care is 35% of import duties and taxes. Singapore is a free port country. More than 99% of all imports enter Singapore duty-free. It is a liberal trading regime. Singapore is a strong intellectual property protection country with virtually no corrupti on. Singapore levies a 7% Goods and Services Tax (GST), including skin care products. Economic (Gross Domestic Product) Indonesia is the largest population with 240 million in Southeast Asia.GDP growth above 6. 5% in 2011 and projected to remain above 6%. GDP per capita of $3,500. .The total population in Thailand in year 2012 is 67 Million. Thai economy grew only 1% in 2011, as the devastation caused by severe flooding that happened yearly in the country. GDP growth rate only 5. 5% in year 2012 and estimated will be above 7. 5% in year 2013. Total population in in year 2012 is 5 Million Singapore economy expanded by 14. 5% in year 2012, become the second fastest growing economy in the world. GDP is expected sustainable growth of 4% in 2013.Social CulturalRich natural resources country with very strong domestic demand. Bahasa is a common speaking and language used in Indonesia. Indonesian labor cost is relatively low by compare other Southeast Countries. Consumers are extremely pri ce-conscious; prefer lower prices over product quality. Thai and English are the most common spoken language in the country. Labor cost is moderate, where unemployment rate in 2010 only 1% of the labor force. Most citizen and people are highly educated. English is common language for business and education. Local labor laws are flexible.EnvironmentInfrastructure and service networks still under developed in the country. Most of the area are rural and with more than 180 islands in the country. Severe flooding occurred yearly. It caused thousands of homes were inundated and many business operations affected. Singapore levies high excise taxes on motor vehicles and petroleum products due to environmental reason. TechnologyMobile internet is now emerges in the country, providing opportunities to do business through internet. E-Commerce technology enables Thai to support â€Å"business to business† collaboration.It is another technology upcoming trend in the country. Telecommunica tions and Internet facilities in Singapore are extremely well developed. Resource: 2012 Country Commercial Guide for U. S. Companies (http://www. state. gov/) 3. 2 Selection of Country Base on the PESTEL analysis (Table 2), Indonesia will be the best country as the target market of Sun Safe expansion plan outside Malaysia because of its the excellent overall performing ability, widely accepted culture, comparably higher economic growth with less interest rate, and moderate corporate tax rate.What’s more the fact that Indonesia is the largest population growth country which means a vast room for expansion has make it a more attractive market than Thailand and Singapore. 3. 3 Type of Entry mode The expansion into Indonesia market usually could be achieved by indirect investment such as exporting, licensing, trading, joint venture and direct investment. Export Trading Company acts more like an agent to pay the manufacturer for the exported products and thereafter sell the produc t to interested buyers.There is an advantage to help securing foreign market share on behalf of its clients (Fariza hashim et al, 2010). Avery Wellness is recommended to start its business by appointing a local trading and distribution company in the targeted sun care market. The reasons of appointing a trading company are 2 folds: First of all, risk can be transferred to the appointed local company in the new market development. This is because risks still exist since such market expansions come along with potential failures besides profit makings.Secondly, a well established local trading and distribution company has been proved successful pool their resources such as experiences, technologies and capitals together to expand the business in a fast speed. 3. 4 Trading Company Analysis and Selection In order to minimize the rate of failure and ensure the success entry to Indonesia market, an audit to local well known trading companies is made to compare the background of the company , services provided, distribution channel coverage and the reliabilities of the company (Fariza Hashim et al, 2010).There are 3 local trading companies which are PT Dos Ni Roha, PT Maha Jaya Suksesindo and PT Fremont Nusametal Trading that already well-established in Indonesia (Table 3). PT Dos Ni Roha is the best trading company of Avery Wellness because of its market expansion in Indonesia that covers a lot of states and operational experiences in the business. Table 3: Comparison of Trading Companies in Indonesia PT Dos Ni Roha (DNR Distribution)PT Maha Jaya Suksesindo (MJS)PT Fremont Nusametal Trading (FNT) Company BackgroundPT Dos Ni Roha (DNR) was established in year 1963. The company is now a truly professional distributor in the country.PT Maha Jaya Suksesindo (MJS) is a 15 years old trading company in Indonesia and primary business is exporting fast moving consumer goods to Indonesia Borneo and Sumatra island, and other part of ASEAN countries. PT Fremont Nusametal Trading (FNT) main business is distribution home appliances for international brands such as Sony, Panasonic and LG in Indonesia. The company was established in 1985. Scope of ServicesSales and distribution of pharmaceutical products, consumer products, medical supplies and equipment including after sales service. Logistics services including importation, storage, shipping and inventory managementExport and distribution of consumer goods. Trading and distribution of home appliances. Distribution ChannelDNR has 30 branches and 19 sub-branches spread out all over Indonesia: Java Island (greater Jakarta, west Java, central Java, east Java), Bali Nusa Tenggara, Sumatera, Kalimantan, Sulawesi, Jayapura. MJS distribution is mainly in the sub-urban and rural areas of Indonesia especially in Sumatra island. The 8 sales offices of MJS are for exporting businesses. FNT has the largest distribution coverage across the 3 main islands of Indonesia – Java, Sumatra and Borneo. The business model o f FNT is wholesaling of the home appliances.Business LicenseTrading license with ability to do product registration as currently distributing consumer health supplement products. Trading and Export license but MJS only experience in trading locally produced consumer goods. Trading license on home appliances Current Business PartnersDNR is one of the trading company for international consumer goods of Unilever, Kraft Food and leading local beauty products Mustika Ratu and international L’Oreal and medical products B. Braun, Novartis, Schering Plough. Yummy Food Utama is the largest consumer goods in Indonesia with brands such as Indomie and Yam Yam instant noodles.MJS is the sole trading company. Wholesaling partners for Sony, Panasonic and LG. FNT also is sole distributor of Yamaha heavy equipment in Indonesia such as water pumps, and power generators. Source: Indonesia Business Directory, www. gdgindonesia. com 4. Market and Industry Analysis 4. 1 Porter’s Five Forces Analysis Competitive rivalry within an industry An industry could be defined as substance between the established competitors and the substitute products (Porter, 2008). And the competitive rivalry exists between the established competitors in the same product segment and it is the center of the Michael Porter’s five forces model.Sun care industry in Indonesia, though there are many large corporations such as Beiersdorf and Oriflame Coemetics, but the industrial competitive rivalry would not obviously affect Avery Wellness as there is still a large potential growth of sun care in the country. Bargaining power of customers The bargaining power of the customers also poses significant influence over the business behaviors within the sun care industry. Such forces usually could be seen in term of forced down prices, demand for higher-quality or more services and pit rival organizations against one another (Porter, 2008).However, most customers with small quantity of purchase sti ll having low bargaining power though they only demand in effectiveness product. Threat of new entrants The threat of new entrants comes is quite high due to the low entry barriers in Indonesia. This is because Sun Care products can be imported easily into the country of only 10% import taxes imposed. Besides, Indonesia with population of 240 million people among Southeast Asia country is attracted with all multinational company to tap into this large resource country.Bargaining power of supplier Collaborations with manufacturer Follow Me Industries Sdn Bhd in Malaysia has given Avery Wellness a quality assurance and stability supplied of innovative products. Base on the excellence working relationship for more than 20 years with existing cooperation, it should be possible for Avery Wellness to control such increases in bargaining power from suppliers due to the increasing demand of products during the execution of the Indonesia market expansion plan. Threat of substitute productsTh e threat from substitute products to sun care products is very less thanks to the ingredients of sun reflective function named titanium dioxide and zinc oxide. This is because the 2 main ingredients only can be used on sun protection purpose. 4. 2 SWOT Analysis SWOT analysis used to summarize audit which concentrates upon main issues for objectives, strategies and tactics. The audit consists of internal current strengths and weakness that largely controllable, and also external future opportunities and threats that unpredictable (Lancaster Massingham, 2011). Table 4: SWOT Analysis InternalStrength: Both have been establishing for more than 20 years and expertise in product sales and marketing strategy. -Halal certification for both sun care products help to gain more Muslim consumers which is occupied of 65% of Malaysian populations and 95% of Indonesian populations. Weakness: -Avery Wellness as a Distribution company in fact fully reliable on Follow Me as a Manufacturer to provide sun care product. -Market development solely dependent on PT BNR as trading company without involving in any management and strategic planning. ExternalOpportunity: -Indonesia population estimated to be more than 250 million with 58% live in Java island. Similar tropical country with sunny weather almost throughout the year to promote the using of Sun Care product. -Common language and culture between Malaysia and Indonesia which provide easy platform for market development. Threat: -Sun Care products can be imported easily into Indonesia because of only 10% import taxes imposed. -Plenty of existing premium Sun Care brands such as Cllinique, Clarins, Biotherm are entering Indonesia market. -Sun protection awareness is still primarily high only in Jakarta district. But the sub-urban and rural populations are very lacking of health conscious towards sun protection. 4. Total Market Size and Share of Sun Care Despite the market size of Sun Care in Indonesia relatively low compare to ot her country such as Malaysia, Singapore and Thailand even though at same currency exchange, whereby Indonesia population is 5-10 times larger compare to these countries, but still it shown the growth of sun care market ascent almost double from 11. 3 bn Rupiah to 20. 2 bn Rupiah within 6 years from 2007 to 2012 (Table 5). Positively, a sun care product is expected to have greater growth rate in Indonesia market. Table 5: Sun Care Market Size of Indonesia Sun Care2007200820092010201120122012 * (RM mn)World (US$ mn)6,817. 17,557. 77,521. 28,161. 89,043. 39,094. 22,860. 0 Indonesia (Rp bn)11. 311. 911. 613. 516. 720. 26. 36 Malaysia (RM mn)9. 39. 49. 69. 79. 910. 110. 1 Singapore (S$ mn)14. 515. 416. 217. 318. 619. 648. 9 Thailand (Bt mn)1,046. 21,200. 81,183. 01,282. 21,401. 71,597. 0162. 0 Resource: Euromonitor International 2013 *Equivalent to Ringgit Malaysia Table 6: Indonesia Sun Care Brand and Company Shares 2007-2012 BrandCompany Name (GBO)200720082009201020112012 NiveaBeiersdo rf AG40. 141. 446. 042. 236. 843. 0 OriflameOriflame Cosmetics SA24. 319. 19. 214. 321. 412. 2 Nu SkinNu Skin Enterprises Inc6. 6. 28. 39. 210. 010. 9 The Face ShopLG Household Health Cate Ltd8. 08. 39. 09. 6 VaselineUnilever Group-4. 35. 15. 55. 67. 4 Banan BoatEnergizer Holdings Inc3. 74. 14. 43. 93. 24. 3 BiothermLoreal Groupe3. 23. 33. 73. 43. 02. 9 CliniqueEstee Lauder Cos Inc1. 62. 22. 52. 42. 22. 0 ClarinsClarins SA1. 21. 71. 81. 61. 51. 4 RossolareGalenium Pharmasia Laboratories PT0. 30. 30. 40. 40. 40. 4 The Face ShopFaceshop Co Ltd6. 76. 7- OthersOthers12. 610. 710. 68. 86. 96. 0 Total100. 0100. 0100. 0100. 0100. 0100. 0 Source: Euromonitor International 2013 from trade sources/national statistics (Sun Care in Indonesia)The Sun Care brand shares held by most leading companies in Indonesia remained fairly stable from year 2007 to 2012 (Table 6). The top 3 sun care brands mainly imported from international market are Nivea, Oriflame and Nu Skin, total dominated 65-70% of su n care sales in Indonesia from year 2007 to 2012. Beiersdorf Indonesia with its Nivea Sun brand continued to lead sun care with a 46% value share in 2009. The notable fluctuation brand was Oriflame, which its overall share declined from 24. 3% to 12. 2% throughout year from 2007 to 2012 instability.However, Rossolare is the only local sun care brand owned by Galenium Pharmasia Laboratories PT at 0. 3% of total market share (Table 6). 5. Marketing Strategy 5. 1 Marketing Objectives Key Objective of Avery Wellness and PT BNR are to have Market Development of Sun Care segment in Indonesia market order to achieve: 1. Increase company sales revenue contributed from sun care brand market penetration: a. 10% in year 2013, b. 20% in year 2014 and c. 25% in year 2015. (From RM 12. 6 Mil- 2011 to RM 21. 0 Mil- 2015). (Appendix 1) 2. Capture 20% of sun care market share in Indonesia (2012 total market size in Indonesia RM 6. Mil/ 20. 2 bn Rupiah) 3. Achieve 15% net profit margin in Sun Care pr oduct segment in line with profitability generated from other skin care segment within 3 years. 5. 2 Financial Budget 5. 2. 1 Funding Avery Wellness indirect investment strategic to appoint a local trading company in entering Indonesia new market development needs both parties commitment to success the plan. So, both parties need to have contribution in startup capital base on 2:1 ratio whereby Avery Wellness will be contributing RM 500,000 and PT DNR required allocating RM 250,000 as capital to start up the business in Indonesia (Appendix 2). . 2. 2 Working Capital Cash Flow statement is an indication to show cash coming in and out every month. It is essential for a company to use cash to pay business expenses such as bills, wages, merchandise and even unexpected expenses (Farese et al, 2002). Projected cash flow statement (Appendix 3A 3B) shows the budget planning start from December 2012 as a business startup month. Total funding of RM 750,000 (value equivalent to rupiah VER) u se to pay for 2 months inventories (sun care products), import duties of 10% and promotion support in Indonesia market.Account receivable is base on 60 days term and expected cash is recovered in month of March 2013 with RM 120,000 (VER) sales collected on every subsequent month onwards. Monthly wages, general operating and administrative expenses start from month January 2013 at fixed cost of RM 24,000 and RM 5,500 respectively base on monthly basis. Inventory cost at RM 84,000 (VER) will be paid quarterly to store for 3 months supply. Product registration cost of RM 8,000 is used at one off payment to get qualified certificate to sell sun care product within Indonesia. 5. 2. 3 Sales Forecast and ProfitabilitySun SafeTM brand consists of Sun Sport body and Sun Defense face are forecasted to generate additional sales of RM 1. 2 mil in 2013 (Appendix 4). A successful marketing plan is to achieve company main objective by generating satisfaction profit (Kotler 1994). Net profit ranges is expected between 12-19% yearly, which is above the company net profit of 9. 9% in year 2012. 5. 3 Market Mix George Michael (2004) classified the 4 Ps marketing such as Product, Price, Place and Promotion as marketing mix. The target market for Sun SafeTM brand is focused on population in mass market of all age in Indonesia. 5. 3. Product There are 2 Sun care products named Sun Sport body and Sun Defense face to be sold in Indonesia market. Base on Warren Keegan model (table 7), there are 5 international product and communication strategies (Keegan Green, 2011) Table 7: Warren Keegen Model Source: (Keegan Green, 2011)) Avery Wellness is using Straight Extension whereby products that entering foreign market without changes as no requires RD expenses, manufacturer retooling or promotional modification. This will be an added advantage for Avery Wellness as the products is using Bahasa and English as communication to deliver the message.In other cases, this strategy may be a disa ster; for example Campbell Soup Company experienced a loss of $30 million by introducing a condensed soup in England. The reason is product communication breakdown as consumers did not realize water is added in the soup by assuming the product in small can was expensive. 5. 3. 2 Price Sun SafeTM brand will be positioning as low pricng with high quality value to win loyal customers (Kotler Keller, 2012). The selling price for Sun Defense Face and Sun Sport Body in Indonesia will be set at RM 29 RM 25 respectively (VER). . 3. 3 Promotion PT BNR will be using straight extension strategy. Therefore, the company does not change the products and also promotion methods since the culture and language for both Malaysia and Indonesia are similar (Kotler Keller, 2012). For example, Ford adapted its advertising message due to the product used in United States would not be interpreted the same meaning by Spanish speakers. Sun SafeTM brand is expected to obtain sales of RM 1. 2 millions in 2013 . PT BNR is budgeting 10% of the sales revenue for AP purposes.The advertisement campaign is mainly focus on brand awareness and the whole entire activities as below: 1)Press and magazines for sun protection information/article 2)Merchandising at beauty retail outlets. 3)Social media campaign. 4)Public relation of local Muslim Ambassador. 5)Sample distribution in shopping mall. 6)Sales Promotion. 5. 3. 4 Place PT BNR currently is having a very strong and established distribution network in broad channel for its existing product line in 30 branches covered the following chains such as: a. Pharmacy Chains b. Beauty Retailers c. Departmental Store 6. Management Structure and ControllingManagement is the process of reaching goals through the integrated of technology and human resources (Farese et al, 2002). To facilitate the effectiveness of an organization, PT BNR is currently practicing Horizontal Organization structure. Horizontal Organization involves self-managing teams that set th eir own goals and decisions; it helps the process of making spontaneous decision without delaying any important task (Farese et al, 2002) Marketing plan should be controlled using qualitative and quantitative standards including sales, market share, expenses, profitability and customers tracking.The controlling process is an indication to the evaluation of the effectiveness of an organization marketing plan (Lancaster Massingham, 2011). However, despite Avery Wellness is not participating in any sales and marketing activities but the director of sales will be monitoring and control the sales and marketing plan base on annual, profitability, efficiency and strategic control from time to time. 7. The Challenges for SME to Enter International MarketFrom a viewpoint of SME policy, the drastic changes in global growth and trade dynamics may open up opportunities for SMEs in international markets. However, they also pose a new challenge to policy makers in the need to design, adapt and i mplement effective policies to facilitate internationalization and enable SMEs to take full advantage of its benefits (Zizah Che Senik et al, 2010). In general, SMEs are considered to experience greater difficulties relative to large firms when operating internationally because of constrained resources and lack of international experience.Furthermore, the regulatory framework of some high-growth economies makes it more difficult for SMEs to enter the markets, which can be characterized by an unpredictable business environment likes frequent regulatory changes, weak protection of property rights, non-transparent judicial systems, inadequate enforcement of commercial law and specific institutional constraints. All these factors create additional challenges challenge to SMEs, which are typically resource constrained and inexperienced (Zizah Che Senik et al, 2010).A study on â€Å"Removing Barriers to SMEs Access to Global Markets† has identified in some of the barriers that affe ct the decision in entering foreign market. Table 6 has shown the ranking of the barriers (Koji Ito, 2013). Table 8: Types of Barrier of entering foreign market RankingTypes of Barrier 1Inadequate of well trained personnel 2Working capital shortage 3Insufficient and limited information on market audit 4Wrongly identifying foreign business opportunities 5Time management to manage international business is lack 6Inability to rapture potential customers in oversea market 7No strategy to develop products for foreign markets Unfamiliar foreign business practices and regulation 9Product quality and standard not meet the country requirement 10Unfamiliar exporting procedures and processes Source: US International Trade Commission (2010). 9. Recommendations It is suggested that Avery Wellness should build a network in Indonesia by appointing PT BNR as a trading company to distribute its products in the country. However, it is recommended that Avery Wellness can use direct entry mode after th e successful of product penetration into Indonesia market. International Marketing Management Essay Example International Marketing Management Essay Avery Wellness (M) Sdn Bhd is a private company specialise in total skin care and beauty product solutions in Malaysia. The company began its operation in Malaysia since 1990. Follow Me Industries Sdn Bhd is the sole manufacturing facility for all skin care and beauty products to Avery Wellness (M) Sdn Bhd. Avery Wellness business model involved in marketing and distributing skin care and sun care products within Malaysia market. The main distribution centres in Malaysia focus in all pharmacy chains, departmental stores and beauty retailers.The company is envisaged to transform from a local enterprise into a multinational brand company with growth plan to tap into overseas market. The company has a headquarter base in Subang Jaya Industrial Park with total 80 employees. The advantage of Avery Wellness products are HALAL accreditation and this gave the company a strong market presence in Muslim segment. The company with its marketing and branding strategy by leveraging on local Muslim celebrity as ambassador to successful help the brand enters the Muslim market. 2. 2 Vision and MissionAvery Wellness is visioning to capture the South East Asian market and to emerge as a dominant company in providing skin care and sun care solution for all consumers. The mission of Avery Wellness is to provide continuous innovative and reliable product to overcome all man and woman skin problems with a product certified halal accreditation. 2. 3 Sales Revenue Avery Wellness average sales revenue for the past 3 years from 2010 to 2012 mainly contributed from 3 major brands which are Ageless solution, Clear Clean and Sun Safeâ„ ¢ (Table 1).The percentage of contribution is 46%, 20% and 34% respectively. The Sun Safeâ„ ¢ brand has two main sun care products which are Sun Safeâ„ ¢ Face and Sun Safeâ„ ¢ Body. Currently the market share for these two products in sun care category is more than 35% in Malaysia. Table 1: Sale Revenue on Skin Care Brand for Avery Wellness Brand 2010 (RM/Million)2011 (RM/Million)2012 (RM/Million)Averagepercentage Ageless5. 55. 86. 05. 7746% Clear Clean2. 42. 52. 52. 4720% Sun Safeâ„ ¢4. 24. 34. 34. 2734% Total Revenue12. 112. 12. 812. 5100% 2. 4 International Market Entry Objective In view of sales revenue stagnancy from year 2010 to 2012, and increasing of fixed and variable cost yearly such as cost of goods sold, salaries and wages, interest expenses and promotion, thus impacting in net income yearly. In fact, there is significant descent of net profit from 11. 4 % to only 9. 9% in year 2012 (Appendix 1). In order to sustain business growth and achieve imperative profitability, step to enter international market is essential.In particular, sustained economic growth has been experienced in emerging economies, which have become a source of expanding market opportunities and are currently underpinning the global recovery (Zizah Che Senik et al, 2010). Malaysia policy of governance encourages local SME to go International . In the effort to encourage SMEs to go global, SME Corp has introduced the National Mark of Malaysia Brand which is a certification process, audited and monitored by Sirim.Through this initiative, Malaysian Brands are developed not just for the local market, but with the intention that they would be good enough to penetrate international markets (Mohd Rithaudden Makip, 2012) In addition, the SME Master plan (2012-2020) has also outlined a High Impact Programme – Going Export Programme that will focus on addressing challenges faced by SMEs on entering new markets overseas, which include high upfront costs and the lack of detailed knowledge about the markets and local competitors (Charles Fernandez, 2013). 3 Country and Market Entry Analysis 3. 1 Country AnalysisIndonesia, Thailand and Singapore are selected as the potential markets for Avery Wellness’s expansion plan to sell HALAL accreditation sun care products. In order to minimize business failure and find out the b est of the country market, three candidate markets (Indonesia, Thailand and Singapore) which are the most nearest country to Malaysia are chosen to make comparison for the first step of Avery Wellness to success. The selection of oversea markets is a vital issue for a company, this is imperative as the international business environment is turbulent and more uncertain as compared to domestic market.Therefore, fully identify the potential opportunities cab be exploited while minimizing threats and risks (Fariza Hashim et al, 2010). 3. 1. 1 PESTEL Analysis PESTEL analysis will be used to focus the discussion within this analytical framework on the political, economical, social, technological, environmental and legal factors that may influence the business operation for the company (Kotler 1994). A company must be aware of many considerations such as differences in language and customs as well as political and legal when doing business internationally (Farese et al, 2002).Table 2: Comp arison of PESTEL on Indonesia, Thailand and Singapore Analysis FactorCountry IndonesiaThailandSingapore Political Legal(tax)Doing business in Indonesia is complex and time consuming. This is because of negotiation through the regulatory and industrial landscape. Corruption in the country is active at all levels. Skin care Import duties and taxes of 10% are applied in this country. Thailand is an export-dependent country. A total of $ 223 billion worth of goods in 2011 were exported, accounting 69% of its GDP. Corruption and lack of transparency still a major concerns especially in procurement tender.Thailand’s average applied tariff rate is 11%. Highest tariff rates applied to imports competing with locally produced goods. Skin care is 35% of import duties and taxes. Singapore is a free port country. More than 99% of all imports enter Singapore duty-free. It is a liberal trading regime. Singapore is a strong intellectual property protection country with virtually no corrupti on. Singapore levies a 7% Goods and Services Tax (GST), including skin care products. Economic (Gross Domestic Product) Indonesia is the largest population with 240 million in Southeast Asia.GDP growth above 6. 5% in 2011 and projected to remain above 6%. GDP per capita of $3,500. .The total population in Thailand in year 2012 is 67 Million. Thai economy grew only 1% in 2011, as the devastation caused by severe flooding that happened yearly in the country. GDP growth rate only 5. 5% in year 2012 and estimated will be above 7. 5% in year 2013. Total population in in year 2012 is 5 Million Singapore economy expanded by 14. 5% in year 2012, become the second fastest growing economy in the world. GDP is expected sustainable growth of 4% in 2013.Social CulturalRich natural resources country with very strong domestic demand. Bahasa is a common speaking and language used in Indonesia. Indonesian labor cost is relatively low by compare other Southeast Countries. Consumers are extremely pri ce-conscious; prefer lower prices over product quality. Thai and English are the most common spoken language in the country. Labor cost is moderate, where unemployment rate in 2010 only 1% of the labor force. Most citizen and people are highly educated. English is common language for business and education. Local labor laws are flexible.EnvironmentInfrastructure and service networks still under developed in the country. Most of the area are rural and with more than 180 islands in the country. Severe flooding occurred yearly. It caused thousands of homes were inundated and many business operations affected. Singapore levies high excise taxes on motor vehicles and petroleum products due to environmental reason. TechnologyMobile internet is now emerges in the country, providing opportunities to do business through internet. E-Commerce technology enables Thai to support â€Å"business to business† collaboration.It is another technology upcoming trend in the country. Telecommunica tions and Internet facilities in Singapore are extremely well developed. Resource: 2012 Country Commercial Guide for U. S. Companies (http://www. state. gov/) 3. 2 Selection of Country Base on the PESTEL analysis (Table 2), Indonesia will be the best country as the target market of Sun Safe expansion plan outside Malaysia because of its the excellent overall performing ability, widely accepted culture, comparably higher economic growth with less interest rate, and moderate corporate tax rate.What’s more the fact that Indonesia is the largest population growth country which means a vast room for expansion has make it a more attractive market than Thailand and Singapore. 3. 3 Type of Entry mode The expansion into Indonesia market usually could be achieved by indirect investment such as exporting, licensing, trading, joint venture and direct investment. Export Trading Company acts more like an agent to pay the manufacturer for the exported products and thereafter sell the produc t to interested buyers.There is an advantage to help securing foreign market share on behalf of its clients (Fariza hashim et al, 2010). Avery Wellness is recommended to start its business by appointing a local trading and distribution company in the targeted sun care market. The reasons of appointing a trading company are 2 folds: First of all, risk can be transferred to the appointed local company in the new market development. This is because risks still exist since such market expansions come along with potential failures besides profit makings.Secondly, a well established local trading and distribution company has been proved successful pool their resources such as experiences, technologies and capitals together to expand the business in a fast speed. 3. 4 Trading Company Analysis and Selection In order to minimize the rate of failure and ensure the success entry to Indonesia market, an audit to local well known trading companies is made to compare the background of the company , services provided, distribution channel coverage and the reliabilities of the company (Fariza Hashim et al, 2010).There are 3 local trading companies which are PT Dos Ni Roha, PT Maha Jaya Suksesindo and PT Fremont Nusametal Trading that already well-established in Indonesia (Table 3). PT Dos Ni Roha is the best trading company of Avery Wellness because of its market expansion in Indonesia that covers a lot of states and operational experiences in the business. Table 3: Comparison of Trading Companies in Indonesia PT Dos Ni Roha (DNR Distribution)PT Maha Jaya Suksesindo (MJS)PT Fremont Nusametal Trading (FNT) Company BackgroundPT Dos Ni Roha (DNR) was established in year 1963. The company is now a truly professional distributor in the country.PT Maha Jaya Suksesindo (MJS) is a 15 years old trading company in Indonesia and primary business is exporting fast moving consumer goods to Indonesia Borneo and Sumatra island, and other part of ASEAN countries. PT Fremont Nusametal Trading (FNT) main business is distribution home appliances for international brands such as Sony, Panasonic and LG in Indonesia. The company was established in 1985. Scope of ServicesSales and distribution of pharmaceutical products, consumer products, medical supplies and equipment including after sales service. Logistics services including importation, storage, shipping and inventory managementExport and distribution of consumer goods. Trading and distribution of home appliances. Distribution ChannelDNR has 30 branches and 19 sub-branches spread out all over Indonesia: Java Island (greater Jakarta, west Java, central Java, east Java), Bali Nusa Tenggara, Sumatera, Kalimantan, Sulawesi, Jayapura. MJS distribution is mainly in the sub-urban and rural areas of Indonesia especially in Sumatra island. The 8 sales offices of MJS are for exporting businesses. FNT has the largest distribution coverage across the 3 main islands of Indonesia – Java, Sumatra and Borneo. The business model o f FNT is wholesaling of the home appliances.Business LicenseTrading license with ability to do product registration as currently distributing consumer health supplement products. Trading and Export license but MJS only experience in trading locally produced consumer goods. Trading license on home appliances Current Business PartnersDNR is one of the trading company for international consumer goods of Unilever, Kraft Food and leading local beauty products Mustika Ratu and international L’Oreal and medical products B. Braun, Novartis, Schering Plough. Yummy Food Utama is the largest consumer goods in Indonesia with brands such as Indomie and Yam Yam instant noodles.MJS is the sole trading company. Wholesaling partners for Sony, Panasonic and LG. FNT also is sole distributor of Yamaha heavy equipment in Indonesia such as water pumps, and power generators. Source: Indonesia Business Directory, www. gdgindonesia. com 4. Market and Industry Analysis 4. 1 Porter’s Five Forces Analysis Competitive rivalry within an industry An industry could be defined as substance between the established competitors and the substitute products (Porter, 2008). And the competitive rivalry exists between the established competitors in the same product segment and it is the center of the Michael Porter’s five forces model.Sun care industry in Indonesia, though there are many large corporations such as Beiersdorf and Oriflame Coemetics, but the industrial competitive rivalry would not obviously affect Avery Wellness as there is still a large potential growth of sun care in the country. Bargaining power of customers The bargaining power of the customers also poses significant influence over the business behaviors within the sun care industry. Such forces usually could be seen in term of forced down prices, demand for higher-quality or more services and pit rival organizations against one another (Porter, 2008).However, most customers with small quantity of purchase sti ll having low bargaining power though they only demand in effectiveness product. Threat of new entrants The threat of new entrants comes is quite high due to the low entry barriers in Indonesia. This is because Sun Care products can be imported easily into the country of only 10% import taxes imposed. Besides, Indonesia with population of 240 million people among Southeast Asia country is attracted with all multinational company to tap into this large resource country.Bargaining power of supplier Collaborations with manufacturer Follow Me Industries Sdn Bhd in Malaysia has given Avery Wellness a quality assurance and stability supplied of innovative products. Base on the excellence working relationship for more than 20 years with existing cooperation, it should be possible for Avery Wellness to control such increases in bargaining power from suppliers due to the increasing demand of products during the execution of the Indonesia market expansion plan. Threat of substitute productsTh e threat from substitute products to sun care products is very less thanks to the ingredients of sun reflective function named titanium dioxide and zinc oxide. This is because the 2 main ingredients only can be used on sun protection purpose. 4. 2 SWOT Analysis SWOT analysis used to summarize audit which concentrates upon main issues for objectives, strategies and tactics. The audit consists of internal current strengths and weakness that largely controllable, and also external future opportunities and threats that unpredictable (Lancaster Massingham, 2011). Table 4: SWOT Analysis InternalStrength: Both have been establishing for more than 20 years and expertise in product sales and marketing strategy. -Halal certification for both sun care products help to gain more Muslim consumers which is occupied of 65% of Malaysian populations and 95% of Indonesian populations. Weakness: -Avery Wellness as a Distribution company in fact fully reliable on Follow Me as a Manufacturer to provide sun care product. -Market development solely dependent on PT BNR as trading company without involving in any management and strategic planning. ExternalOpportunity: -Indonesia population estimated to be more than 250 million with 58% live in Java island. Similar tropical country with sunny weather almost throughout the year to promote the using of Sun Care product. -Common language and culture between Malaysia and Indonesia which provide easy platform for market development. Threat: -Sun Care products can be imported easily into Indonesia because of only 10% import taxes imposed. -Plenty of existing premium Sun Care brands such as Cllinique, Clarins, Biotherm are entering Indonesia market. -Sun protection awareness is still primarily high only in Jakarta district. But the sub-urban and rural populations are very lacking of health conscious towards sun protection. 4. Total Market Size and Share of Sun Care Despite the market size of Sun Care in Indonesia relatively low compare to ot her country such as Malaysia, Singapore and Thailand even though at same currency exchange, whereby Indonesia population is 5-10 times larger compare to these countries, but still it shown the growth of sun care market ascent almost double from 11. 3 bn Rupiah to 20. 2 bn Rupiah within 6 years from 2007 to 2012 (Table 5). Positively, a sun care product is expected to have greater growth rate in Indonesia market. Table 5: Sun Care Market Size of Indonesia Sun Care2007200820092010201120122012 * (RM mn)World (US$ mn)6,817. 17,557. 77,521. 28,161. 89,043. 39,094. 22,860. 0 Indonesia (Rp bn)11. 311. 911. 613. 516. 720. 26. 36 Malaysia (RM mn)9. 39. 49. 69. 79. 910. 110. 1 Singapore (S$ mn)14. 515. 416. 217. 318. 619. 648. 9 Thailand (Bt mn)1,046. 21,200. 81,183. 01,282. 21,401. 71,597. 0162. 0 Resource: Euromonitor International 2013 *Equivalent to Ringgit Malaysia Table 6: Indonesia Sun Care Brand and Company Shares 2007-2012 BrandCompany Name (GBO)200720082009201020112012 NiveaBeiersdo rf AG40. 141. 446. 042. 236. 843. 0 OriflameOriflame Cosmetics SA24. 319. 19. 214. 321. 412. 2 Nu SkinNu Skin Enterprises Inc6. 6. 28. 39. 210. 010. 9 The Face ShopLG Household Health Cate Ltd8. 08. 39. 09. 6 VaselineUnilever Group-4. 35. 15. 55. 67. 4 Banan BoatEnergizer Holdings Inc3. 74. 14. 43. 93. 24. 3 BiothermLoreal Groupe3. 23. 33. 73. 43. 02. 9 CliniqueEstee Lauder Cos Inc1. 62. 22. 52. 42. 22. 0 ClarinsClarins SA1. 21. 71. 81. 61. 51. 4 RossolareGalenium Pharmasia Laboratories PT0. 30. 30. 40. 40. 40. 4 The Face ShopFaceshop Co Ltd6. 76. 7- OthersOthers12. 610. 710. 68. 86. 96. 0 Total100. 0100. 0100. 0100. 0100. 0100. 0 Source: Euromonitor International 2013 from trade sources/national statistics (Sun Care in Indonesia)The Sun Care brand shares held by most leading companies in Indonesia remained fairly stable from year 2007 to 2012 (Table 6). The top 3 sun care brands mainly imported from international market are Nivea, Oriflame and Nu Skin, total dominated 65-70% of su n care sales in Indonesia from year 2007 to 2012. Beiersdorf Indonesia with its Nivea Sun brand continued to lead sun care with a 46% value share in 2009. The notable fluctuation brand was Oriflame, which its overall share declined from 24. 3% to 12. 2% throughout year from 2007 to 2012 instability.However, Rossolare is the only local sun care brand owned by Galenium Pharmasia Laboratories PT at 0. 3% of total market share (Table 6). 5. Marketing Strategy 5. 1 Marketing Objectives Key Objective of Avery Wellness and PT BNR are to have Market Development of Sun Care segment in Indonesia market order to achieve: 1. Increase company sales revenue contributed from sun care brand market penetration: a. 10% in year 2013, b. 20% in year 2014 and c. 25% in year 2015. (From RM 12. 6 Mil- 2011 to RM 21. 0 Mil- 2015). (Appendix 1) 2. Capture 20% of sun care market share in Indonesia (2012 total market size in Indonesia RM 6. Mil/ 20. 2 bn Rupiah) 3. Achieve 15% net profit margin in Sun Care pr oduct segment in line with profitability generated from other skin care segment within 3 years. 5. 2 Financial Budget 5. 2. 1 Funding Avery Wellness indirect investment strategic to appoint a local trading company in entering Indonesia new market development needs both parties commitment to success the plan. So, both parties need to have contribution in startup capital base on 2:1 ratio whereby Avery Wellness will be contributing RM 500,000 and PT DNR required allocating RM 250,000 as capital to start up the business in Indonesia (Appendix 2). . 2. 2 Working Capital Cash Flow statement is an indication to show cash coming in and out every month. It is essential for a company to use cash to pay business expenses such as bills, wages, merchandise and even unexpected expenses (Farese et al, 2002). Projected cash flow statement (Appendix 3A 3B) shows the budget planning start from December 2012 as a business startup month. Total funding of RM 750,000 (value equivalent to rupiah VER) u se to pay for 2 months inventories (sun care products), import duties of 10% and promotion support in Indonesia market.Account receivable is base on 60 days term and expected cash is recovered in month of March 2013 with RM 120,000 (VER) sales collected on every subsequent month onwards. Monthly wages, general operating and administrative expenses start from month January 2013 at fixed cost of RM 24,000 and RM 5,500 respectively base on monthly basis. Inventory cost at RM 84,000 (VER) will be paid quarterly to store for 3 months supply. Product registration cost of RM 8,000 is used at one off payment to get qualified certificate to sell sun care product within Indonesia. 5. 2. 3 Sales Forecast and ProfitabilitySun SafeTM brand consists of Sun Sport body and Sun Defense face are forecasted to generate additional sales of RM 1. 2 mil in 2013 (Appendix 4). A successful marketing plan is to achieve company main objective by generating satisfaction profit (Kotler 1994). Net profit ranges is expected between 12-19% yearly, which is above the company net profit of 9. 9% in year 2012. 5. 3 Market Mix George Michael (2004) classified the 4 Ps marketing such as Product, Price, Place and Promotion as marketing mix. The target market for Sun SafeTM brand is focused on population in mass market of all age in Indonesia. 5. 3. Product There are 2 Sun care products named Sun Sport body and Sun Defense face to be sold in Indonesia market. Base on Warren Keegan model (table 7), there are 5 international product and communication strategies (Keegan Green, 2011) Table 7: Warren Keegen Model Source: (Keegan Green, 2011)) Avery Wellness is using Straight Extension whereby products that entering foreign market without changes as no requires RD expenses, manufacturer retooling or promotional modification. This will be an added advantage for Avery Wellness as the products is using Bahasa and English as communication to deliver the message.In other cases, this strategy may be a disa ster; for example Campbell Soup Company experienced a loss of $30 million by introducing a condensed soup in England. The reason is product communication breakdown as consumers did not realize water is added in the soup by assuming the product in small can was expensive. 5. 3. 2 Price Sun SafeTM brand will be positioning as low pricng with high quality value to win loyal customers (Kotler Keller, 2012). The selling price for Sun Defense Face and Sun Sport Body in Indonesia will be set at RM 29 RM 25 respectively (VER). . 3. 3 Promotion PT BNR will be using straight extension strategy. Therefore, the company does not change the products and also promotion methods since the culture and language for both Malaysia and Indonesia are similar (Kotler Keller, 2012). For example, Ford adapted its advertising message due to the product used in United States would not be interpreted the same meaning by Spanish speakers. Sun SafeTM brand is expected to obtain sales of RM 1. 2 millions in 2013 . PT BNR is budgeting 10% of the sales revenue for AP purposes.The advertisement campaign is mainly focus on brand awareness and the whole entire activities as below: 1)Press and magazines for sun protection information/article 2)Merchandising at beauty retail outlets. 3)Social media campaign. 4)Public relation of local Muslim Ambassador. 5)Sample distribution in shopping mall. 6)Sales Promotion. 5. 3. 4 Place PT BNR currently is having a very strong and established distribution network in broad channel for its existing product line in 30 branches covered the following chains such as: a. Pharmacy Chains b. Beauty Retailers c. Departmental Store 6. Management Structure and ControllingManagement is the process of reaching goals through the integrated of technology and human resources (Farese et al, 2002). To facilitate the effectiveness of an organization, PT BNR is currently practicing Horizontal Organization structure. Horizontal Organization involves self-managing teams that set th eir own goals and decisions; it helps the process of making spontaneous decision without delaying any important task (Farese et al, 2002) Marketing plan should be controlled using qualitative and quantitative standards including sales, market share, expenses, profitability and customers tracking.The controlling process is an indication to the evaluation of the effectiveness of an organization marketing plan (Lancaster Massingham, 2011). However, despite Avery Wellness is not participating in any sales and marketing activities but the director of sales will be monitoring and control the sales and marketing plan base on annual, profitability, efficiency and strategic control from time to time. 7. The Challenges for SME to Enter International MarketFrom a viewpoint of SME policy, the drastic changes in global growth and trade dynamics may open up opportunities for SMEs in international markets. However, they also pose a new challenge to policy makers in the need to design, adapt and i mplement effective policies to facilitate internationalization and enable SMEs to take full advantage of its benefits (Zizah Che Senik et al, 2010). In general, SMEs are considered to experience greater difficulties relative to large firms when operating internationally because of constrained resources and lack of international experience.Furthermore, the regulatory framework of some high-growth economies makes it more difficult for SMEs to enter the markets, which can be characterized by an unpredictable business environment likes frequent regulatory changes, weak protection of property rights, non-transparent judicial systems, inadequate enforcement of commercial law and specific institutional constraints. All these factors create additional challenges challenge to SMEs, which are typically resource constrained and inexperienced (Zizah Che Senik et al, 2010).A study on â€Å"Removing Barriers to SMEs Access to Global Markets† has identified in some of the barriers that affe ct the decision in entering foreign market. Table 6 has shown the ranking of the barriers (Koji Ito, 2013). Table 8: Types of Barrier of entering foreign market RankingTypes of Barrier 1Inadequate of well trained personnel 2Working capital shortage 3Insufficient and limited information on market audit 4Wrongly identifying foreign business opportunities 5Time management to manage international business is lack 6Inability to rapture potential customers in oversea market 7No strategy to develop products for foreign markets Unfamiliar foreign business practices and regulation 9Product quality and standard not meet the country requirement 10Unfamiliar exporting procedures and processes Source: US International Trade Commission (2010). 9. Recommendations It is suggested that Avery Wellness should build a network in Indonesia by appointing PT BNR as a trading company to distribute its products in the country. However, it is recommended that Avery Wellness can use direct entry mode after th e successful of product penetration into Indonesia market.