The raise of Taxes at the United States

Abstract This essay will look at the effect of a change in tax rate in an economy. Based on the current economic and financial crisis relationships with be established on taxation with work incentives, labor productivity, investment decisions, budget and the rich so as to make informed opinion.Advertising We will write a custom research paper sample on The raise of Taxes at the United States specifically for you for only $16.05 $11/page Learn More When an economy is facing a crisis, it adjusts its tax system as policy to rectify the deficit in the economy. For instance, United States has been hardly hit by the economic crisis and is contemplating on increasing taxes for the rich. The change in taxation has both positive and negative effects. Introduction The current economic and financial crisis has adversely affected all the countries in the world. Those that have been hard hit by the crisis include the United States of America and European countries. O ther countries, especially developing countries are suffering from the spill over effects. In United States, the effects of this crisis have been evident in various sectors of the economy. The country has been hit by high rates of employment with nearly ten million people registering for the unemployment benefits. The number of people registering in job search centers has increased, with fresh graduates taking the highest percentage. The economy has failed to create new jobs, with jobs lay off mounting by the day. Most industries are streaming their workforce since they cannot adequately meet their needs, such as paying salaries and other benefits. The situation has rendered a high percent of the populace jobless, with most of them having difficulties in paying their bills. Those who are unable to meet their bills have resorted to pegging in streets so at least to get something to sustain them. The suffering of most Americans has not gone unnoticed, with the President Barack Obama c onstantly giving an account of government progress on how the crisis is being handled. The most recent announcement by the President is an increase in the rate of tax for the rich. The tax raise among the rich will lead to an increase in national revenue that can then be used to create jobs at national levels. This move has elicited controversy, with some supporting while others attack the move as inappropriate. It is like taking from those who are rich and distributing it to those who are poor. Despite raising taxes for the rich, taxes for foreign people should be lowered. Discussion Taxation is a fiscal policy tool that government can use in order to have a balanced fiscal budget. The government to attain certain objectives like full employment, price stability and economic growth normally uses fiscal policy. Other policy tools that can be used include printing of money, sell of fixed assets, internal or external borrowing as well as consumption of fiscal reserves.Advertising Looking for research paper on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More When a government is facing huge deficits, tax revenue can be raised by increasing the tax rates. Taxation is a tool that can be used to rescue an economy facing difficult times. Proper design of a tax policy can be a panacea to the prevailing economic hard times such as unemployment. United State has sought to follow Germany’s way to rescue its economic from adverse effects of its current debt position. Economist asserts that the only way in which an economy can reverse a crisis is using an expansionary fiscal policy. This will solve the issue of fiscal budget imbalance, unemployment and ‘crowding out’ effect. Conversely, high taxes will look out private companies from investing in the country because of the cost of production which will translates to higher commodity prices. It will be hard for businesses to carry out business in countries with high tax rates. This is because it will render most establishments less competitive in the global market. To encourage foreign investment tax rates should be reduced for them and sometimes coupled with tax havens, allowances and subsidies, this will encourage them to take up their new investment in the economy (Kivel, 2002). Taxation and work incentives When there is an increase in the rate of income tax, the effect will be that the post-tax income of individuals will reduce. This is because the net income resulting from each hour of work will be lower. The move might encourage workers to increase their number of working hours to meet their target income. On the other hand, an increase in tax might be used as a disincentive to promote less work. The government normally sets a lower income tax rate for low-income employees. This will act as an incentive for workers to do their job for long hours and earn more money. Low taxes on low-income earners serve as a tool of reducing ‘poverty trap’ risks where individuals will get high net financial benefits from their work. When tax reforms are favorable, it leads to an increase in supply of labor thus a reduction in unemployment equilibrium rate hence, the growth rate will increase. Taxation and the pattern of demand Demand patterns for goods and services vary as indirect taxes are changed. When value added taxes (VAT) on commodities such as alcohol and cigarettes increase, it is aimed at causing a low consumption among consumers or a substitution effect. The result will be a low demand for such commodities. Indirect taxation can be applicable where there is a total market failure, as well as when the government wants to ensure equitable distribution of resources such as health care.Advertising We will write a custom research paper sample on The raise of Taxes at the United States specifically for you for only $16.05 $11/page Learn More Taxation and investme nt decisions When the rates of business taxes and corporate tax are low, this can stimulate a business to increase its spending in fixed capital investment. An increase in investment will mean that the capital stock of a nation has increased thus an increase in capital stock of every worker employed (Mankiw, 2011). Government can use incentives such as tax allowances to boost research and development and in encouraging new business developments. A tax regime that is favorable will attract increased inflow of FDI (Foreign Direct Investment). This will be a stimulus that will benefit an economy’s aggregate supply and aggregate demand. Low rates of corporation tax will attract huge amounts of private investment. Tax changes act as a stimulus of investment in capital assets, social infrastructure, and labor force skills as well as in technology. A good tax system will ensure an improvement in infrastructure, which is essential for economic growth through increased production and competitiveness. Government spending can be terms of development of an education system that is skills oriented and technology focused. This will ensure a steady long-term supply of human resources (Dye, 2011). Company’s risk attitude and corporate income tax are the main factors that are considered by an organization before making an investment decisions, this is because this factors can affect the rate of return on investment. Amount of corporate tax to be paid is an important factor that is taken into consideration before making a financial investment decision. This is because low taxes will mean lower prices for goods and higher revenue generated. The Rich Should Pay More For equal sacrifice and fairness among citizens, those individuals who benefited from favorable economic times such as boom, rescue packages among others should find it necessary to shoulder the costs that arise from a crisis. There willingness will save the economy from suffering the worst effects of a crisis that a time may spill over to drain resources of the rich. This argument looks at increasing government revenue through an increase in income as well as an increase in capital gains tax. This was illustrated by Germany’s case after the World War II where legislation was passed which mandated financial compensation to gather for loses that arises during the war. This lead to a creation of tax on property and capital, this law was applicable to individuals who still possess substantial assets after the war. The law required them to pay half of their asset worth to a compensation fund over a period of thirty years. In case of United States, an increase in tax has no chance any time soon. The reason being the required budget consolidation should occur on the expenditure part. This will imply a reduction in government expenditure and this will have adverse effects on the economy. On the other hand, an increase in income tax disproportionately has an effect on higher earners . The impact of high tax on the rich is minimal because large proportions of their income go to savings while minimal amounts are spent (Blinder Baumol, 2011).Advertising Looking for research paper on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More United States cannot undertake spending cuts since it will adversely affect their growth. This is because the economy is spending less on infrastructure, education and social transfers. For other countries that are facing similar crisis, an increase in government revenue will serve the country better. Therefore, if Americans refuse to contribute more to their economy through tax, they will suffer from a middling economy. Conclusion Taxation as an expansionary fiscal policy is applicable when an economy is facing difficult economic times, where the government spending exceeds its revenue significantly. The current financial and economic crisis has led to increase of tax rates to generate more revenue. The revenue generated is ploughed back to the economy to offset the high standing levels of debts. Increased tax will hurt the economy in terms of reducing the disposable income of consumer and investment income for companies. Individuals will be left with insufficient money to spend he nce a decline in aggregate demand. The rich should make a greater sacrifice to shoulder the costs that have accrued due to a crisis as the low-income earners still pay their tax at the usual lower rates. Poor economic standing of an economy will imply that sectors such as education, health care, communication, physical infrastructure among others will suffer, yet they are the main drivers of economic growth. A good tax system should be developed to realize economic progress. Good taxation we stimulate accumulation of capital stock in the economy in terms of new industries being set up and new technology adopted. This will ensure that the rate of unemployment reduces with a significant margin. Increase the tax rates for the rich will increase the revenue base of a country with the money generated channeled towards job creation in the economy. An economy in a crisis should receive compensation from those who benefited from it during good times such as times of rescue package, social t ransfers and boom. The wealthier should make huge sacrifices in terms of tax payment even though the burden may be overwhelming. A good tax system should act as a magnet for attracting foreign investors through the provision of tax haven for newly established industries. This will encourage foreign investors in the country; hence help in solving the problem of unemployment. References Blinder, A. S., Baumol, W. J. (2011). Macroeconomics: Principles and Policy. New York: Cengage Learning. Dye, T. R. (2011). Understanding Public Policies (13th ed.). Boston: MA Pearson. Kivel, P. (2002). Uprooting racism: how white people can work for racial justice. New York: New Society Publishers. Mankiw, N. G. (2011). Principles of Economics. New York: Cengage Learning. This research paper on The raise of Taxes at the United States was written and submitted by user Madelyn Carver to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.

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The Global Business Strategy Of Bmw Group Marketing Essay

The Global Business Strategy Of Bmw Group Marketing Essay The motor industry always is the most famous industry in the worldwide, because the development of global economy increasingly lead to human cannot live without cars. As a result, the demand of the market brings more intense competition in the industry. Meanwhile, the Bayerische Motoren Werke Aktiengesellschaft (BMW AG) is a renowned motorcar and motorcycle company in the world. The major products positioning of BMW is premium segments of cars in the global motor market. Its main competitor is Daimler Motor Company with the famous brand called Mercedes-Benz which also concentrates on the same market segment. The overview of BMW Group The origin of BMW Group Bayerische Motoren Werke Aktiengesellschaft (BMW) is a German motorcar, motorcycle and engine manufacturer which was founded in 1917 by the first chairman Franz Josef Popp. It is headquartered in Munich, Germany. BMWs history can trace its roots back to 1916. 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In 1923, the advent of the first BMW motorcycle has been produced by the company. Five years later, in 1928, BMW acquired the Eisenach car factory began producing cars. After integration of resources, BMW AG launched the first car which named Dixi 3/15. At the same time, BMW started its own legendary in the automotive industry and created several masterpieces in the history of its car manufacturers which appeared to the market. These products continue to inspire strong feelings and peoples desire to create an excellence reputation of BMW AG as a car manufacturer. From 1916 to 2013 by the first day of an aircraft engine manufacturer developed into a company of premium motorcar and motorcycle-oriented, that BMW was ranked the top twenty motor company of the world. Its pro cess of development is similar to Japanese Daihatsu Motor Company. The current status of the BMW Group Nowadays, BMW Group not only produce its own brand BMWs motor car, but also owns and produces the brand of MINI and owns a subsidiary which named Rolls-Royce Motor Cars. In the aspect of motorcycle production, there is a motorcycle brand is now known as BMW Motorrad which continue to produce the High performance motorcycle for BMW group. What is more, it also provides financial services, include the relationship of customer and supply chain management. BMW has always been based on a premium brand which is the foundation of business success. There are three brands in BMW Group including BMW, MINI and Rolls-Royce. These brands aim at the premium market in each segment from small cars to top luxury sedans. BMW Group has become the only manufacturer which focuses on high-end cars and motorcycles in the world. In present, BMW Group which has 24 production facilities and assembly plants in 14 countries and its business network across 120 countries around the world. Meanwhile, there are 12 Research and Development (RD) plants in 5 countries around the world by BMW. On the one hand, there are several series under the brand of BMW, such as 1, 3, 5, 7, Z and M series. It also has productions of MINI and Rolls-Royce. On the other hand, there are having C, F and R Series under the BMW Motorrad in terms of motorcycle production. Currently, BMW AG continues to thrive, but not without setbacks. BMW AG has always been known for its emphasis on technological innovation and continues to set new standards for high-performance luxury car. At the same time, BMW Group company attaches great importance to the safety and environmental issues. The company has earned a reputation for its performance of active safety and passive safety; include Fully Integrated Road Safety Technology (F.I.R.S.T.). The global business strategy of BMW Group Mercedes-Benzs success factors are based on its history and accumulation of experience. Audis success is because the classic brand revival. Compare  with  other  brands, the brand strategy is the key point to the success of BMW. BMW gives a special significance for its own brand through the implementation of brand strategy. Unlike Mercedes-Benz has a long history, BMW been originally a manufacture aircraft engine for the German air force. In the 1960s, it was the smallest car company in Germany. BMW rose in the world since the 1980s. But at that time, Mercedes-Benz as the market leader of the traditional premium luxury motorcar stick to the luxury car market in the world with the accumulation of traditional brand image and market advantages, which pose some significant obstacles to the market penetration of BMW luxury car series. Deeply influenced by the high technology of German, the manufactured technology of BMW can also compete with Mercedes-Benz. But, more efforts need to be spared to its value and brands compared with Benz. There are some negative effects to BMWs brand. At that time, forming a good brand image is a big challenge for BMW. The global marketing strategies of BMW Group The BMW Group is committed to produce the outstanding and distinctive products. It also tries to gain the maximum market share in the luxury car market around the world. Through unremitting efforts for years, BMW Group has created an excellent international brand image in the world. However, the creation of a well-known brand image of the world does not mean that it can be marketed in some particular market successfully. In order to satisfy the different requirements of the different local markets, BMW Group decided to adopt a centralized and unified brand strategy which be carried out by different country. It is the marketing strategy system which called global branding and localised marketing. The following are the different marketing strategies taken by BMW Group in three major markets, including European, American and Asian markets. Localised marketing in the European market BMW AG is an export-oriented motor company in German. There are 70% of its production is exported. The orders of exports mainly concentrated in the highly industrialized countries, such as the European Union countries, Japan and the United States. 1st January, 1993 is the date which marked the formation of European market integration. After that, most of car manufacturers have adjusted their sales network of the European Economic Community (EEC) market. On the surface, the description of the companys customer structure information seems to indicate that the companys target groups are similar. Those customers who choose BMW are basically with higher education. They are either in high positions or free professional. Both of them are the high-income people. However, these things are not as simple as this situation. Although the existing target markets of BMW Group concentrated in the industrialized countries, there also are a number of European countries with relatively developed agriculture industry in its target market. In these countries, peoples lifestyles are different with the disparity of living standards. In terms of gross domestic product (GDP) per capita, the difference between the rich and poor regions is more than five times. Thus, there is no same preferences and purchasing power of consumers in Europe. The Management Act of EEC integration came into effect on 1st January, 1993, but the personality characteristics of the p eople will not be erased, it also will not let the different nationalities eliminate the difference in spirit. In view of this, BMW Group should implement the marketing strategy which can be adapted to the local market. The demand of European customers The first step in the formation of the marketing strategy is Conducting market research. Market research task is to determine the ideal positioning of BMW in Europe. The ultimate aim of the in-depth study of the differences between the different countries is to identify the language issues and acceptable brand features from these countries by organizing a series of group discussions. Finally, BMW Group found out that some important situation would not be understood without these problems happened. For instance, some purchasers who are from Dutch and Italy expect cars have its own special factors, but they hold totally different opinions about those factors. There are several requirements all over the Europe when customers consider to purchase a car, such as reliability, safety, quality and advanced technology. BMW Group refer to these requirements as the basic requirements of company. On the one hand, in the initial stages of the purchase decision, those motorcar products that be deemed to inconformity with above requirements will be eliminated from the list of purchasers option. On the other hand, it is considered to be an excellent car if comply with above requirements in all European countries. After the above-mentioned basic research, the next step is to choose the type of car for the special requirements of the country, also the countrys climatic conditions should be considered together. In the Netherlands, the attractiveness of the car depends on the quality of its internal, such as excellent internal configuration. In contrast, due to the concept of Austrian Drivers are stronger than any other country, Austrians prefer to drive a car which can show their self-confidence. In Italy, people hope that the vehicles are able to comply with the personal style of the driver. Italian have high requirements for their cars which including its design, aesthetics standard and the engine performance. Therefore it can shows that the Italians car pursuit are totally different from other countries. In view of the basic requirements is coincident when people purchasing a car in all European countries. Take some European countries for example, if a car be approved is excellent by French, it also have same opinion from Austrian and Dutch. Obviously, there is just a little difference that is the specific expectations of the car due to the different point of view from different countries. Therefore, BMW Group believe that it is a problem of communication ultimately if the motor products to be successfully marketed in many European countries. BMW Group deeply know that it need to pay more attention to the customers rather than the vehicles. Even though these customers might have some common view of the motorcar in terms of the same nation. But for individually, every customer wants to show their personal style is totally different. It is in this sense, these people are constituted the target audiences in the market segment of BMW who are from different countries and hold the similar requirements. The scale and characteristics of the various types of customers have been mastered by BMW Group. Also, on the core target market of the BMWs brand which can be determined according to the blueprint of enterprise strategy. BMW Group are most interested in different types of its products could be sold in some particular countries. On the one hand, there are some types of motorcar and motorcycle enthusiasts has a large proportion in each country, such as it has a large proportion of the sporty performance car drivers and normal car lovers in Italy, France, the Netherlands and Austria. Thus, the strategy of global branding have the direct attractiveness for above two types of enthusiasts. On the other hand, according to the composition of different motorists from different countries. There are many motorists who come from different countries support a certain conception in the different thought. Such as there about seventy percent of traditional drivers in France currently, but only ten percent in Italy in this situation. Obviously, the important thing is the marketing strategy which called localised marketing. The research by BMW Group found out that the drivers of BMWs products are always have several same requirements, including the superior design, excellent driving performance, modern technology and unique personality. These BMWs drivers from different countries have views in common that is the original idea for BMW Groups global strategy. Application of the results of market research in Europe The result of market research provide a strong basis for the marketing strategy which called global branding and localised marketing. In addition, BMW Group Company could find the best strategic direction through the organic combination of positioning criteria. The positioning principles and the research result are essential when BMW use a modern way to rebuild its international positioning. The previous method was unilateral consider the characteristics of technical capability and the advancement. The new method is extend to embrace some personal characteristics such as emotional factors, aesthetic value, sophisticated ideas and distinctive personality. It is broke through the emphasis on technology and sporty style, as the BMW traditional image. Thereby it is greatly increasing the pathway of expansion its brand. The formation and implementation of BMWs new brand strategy is built on the basis of the scientific market research. The results of market research provide a solid foundation for the relationships between the brand and products, brand and communication as well as products and environment. Meanwhile, it also solve the marketing problems between the BMW Groups headquarter and local branch companies. Thus, the strategy of global branding and localised marketing as a best method which can improve the strategic position of the brand and strengthen the companys competitiveness greatly. In addition to the European market, BMW Group has achieved considerable success in which this method is used in North American market and Japanese market. To gain the US market by innovation advertising The progress of BMW Group was not smooth when it enter the American market. Early as 1974 years ago, the first BMW branch company has been established in the United States. But its popularity has been low, even many local consumers mistakenly believe that BMW is the product of the United Kingdom at that moment. However, during 1974 to 1978, BMW cars has become the famous brand cars which could represent the customers identity and social status through its smart advertising campaign in United States. In the late 1980s, United States appeared a new marketing environment of low-price revolution, at the same time the Japanese premium motorcar brand was began to seize the American market share with BMW. BMW maintained and enhanced its brand position through its advertising strategy. Therefore, the advertising of BMW is smart method in the marketing warfare of expansion international emerging market. Advertising positioning: from comfortable to driving In 1974, in order to expand the potential market of BMW cars in the United States, BMW Company has invested heavily in United States to establish their own sales channels, and carried out a large number of advertising campaigns simultaneously. In the same year, Ammirati Puris Lintas advertising company won the contracts worth of nine hundred thousand States dollars when it participated in the BMW advertising bidding. At that time, there are a large number of competitors in the North American motor market, such as Cadillac b brand car with the sales of over one millions, 90000 vehicles sales of the Lincoln Motor Company as well as Mercedes-Benz with sales of 40000 vehicles. If BMW want to be successful in the North American market, it must seize the market share from these competitors. In order to test the brand image of BMW in the minds of consumers, Ammirati Puris Lintas advertising company conducted a survey in the western United States. It is a picture shows that a BMW car was parked with a Cadillac car and a Lincoln car together by Ammirati Puris Lintas to test the people reaction in the survey. The survey results shows that almost all of them had no favourable impression for the brand of BMW because their own car have some advanced equipment which does not provide in BMWs cars, such as power windows, leather seat and chrome-plated body. Due to BMW did not have a successful strategy of brand promotion, the excellent driving performance and elaborate interior design of BMW didnt attract the attention of people. Faced with above situation, the Ammirati Puris Lintas is decided that positioned the target market for the post-war new young generation. Compared with those old people who got used to buy Cadillac, the new generation desire a new brand to show their values. The values are including their personality, pursuits and preferences. BMWs excellent driving performance and elaborate interior design coincided with the consumer psychology of the post-war new generation, who have the enthusiasm and pursuit of stimulate. Therefore, BMW competed with other motorcar companies through taken the advantages of its driving performance rather than simply in the power windows, leather seats and chrome car body in the new market. Tagline The Ultimate Driving Machine. In 1970s, BMW of North America start used the tagline The Ultimate Driving Machine which created by Ammirati Puris Lintas advertising agency company. This tagline shows that being a real premium car must have excellent driving performance and also emphasizes the unique selling point of BMW. The advertising theme and positioning achieved great success because the tagline highlights the differences and advantages of the BMW and attracted the new generation with the extremely vitality. à ©Ã‚ ¦Ã¢â€ž ¢Ãƒ ¦Ã‚ ¸Ã‚ ¯Ãƒ ¦Ã¢â‚¬ ¢Ã‚ °Ãƒ ¦Ã‚ Ã‚ ®: http://www.bmwhk.com/com/en/news/news-201201-02.html Swot: http://www.wikiwealth.com/swot-analysis:bmw English essay: http://www.ukessays.com/essays/marketing/company-overview-and-market-analysis-of-bmw-marketing-essay.php à ¥Ã‚ ¾Ã‚ ·Ãƒ §Ã‚ ³Ã‚ »Ãƒ ¤Ã‚ ¸Ã¢â‚¬ °Ãƒ ©Ã¢â‚¬ ºÃ¢â‚¬Å¾: http://www.autohome.com.cn/news/201301/462629-3.html Ammirati Puris Avrutick Inc.: http://adage.com/article/adage-encyclopedia/ammirati-puris-lintas/98315/

The Novel: Victorian Women’s Guilty Pleasure Essay -- Victorian Era

The Novel: Victorian Women’s Guilty Pleasure Introduction Victorian single women in the middle and upper class were expected to explore charity and community service as a way to help the poor. The attitude of â€Å" rich are busy, poor can wait† was supposed to be overturned, so that a â€Å" poor are busy, rich can wait† attitude could alleviate the growing poverty within the lower class. Miss Crawley’s blatant disregard for the poor, in addition to her zealous behavior, would normally be shunned in Victorian society, but because of her status, her irate behavior is overlooked. Her love for French culture was unusual for a woman of her status, but French novels, along with various types of British â€Å" sensation† novels, were a popular form of entertainment among Victorian women. French Influence After the French Revolution of 1789, the British followed events in France very closely. British museums have an extensive collection of French artifacts, especially literature by Alexander Dumas and Emile Zola. The French novel was under much scrutiny, due to the French novelists love of realistically portraying dramatic, grotesque events in an erotic fashion. The novels portrayal of their heroines was shunned as well. â€Å"Their contents included tales of adultery, bigamy, passion, crime and general unladylike behavior and were especially disliked for the overt presentation of sexuality in their leading female characters† (â€Å" Women’s Reading Materials†) The French novel was easily identified by a distinct yellow cover, beautifully illustrated by Vincent Van Gogh in his painting â€Å"Parisian Novel (yellow books).† Unfortunately, the British Medical Journal â€Å" The Lancet† thought otherwise. French novels were deemed responsible for social â€Å" diseases† ... ...ly of society, providing women readers with women who live outside of their own realms of society. â€Å" The heroine of this class of novel is charming because she is undisciplined, and the victim of impulse; because she has never known restraint or has cast it aside, because in all these respects she is below the thoroughly trained and tried woman.† (Sensationalist reviews). Further Information http://www.womenwriters.net/domesticgoddess/wellreadlinks.htm http://www.worldreviews.com/BOOK0008_JAN2001.htm Works Cited Victorian Sensationalism Online http://www.humanities.mcmaster.ca/~mactavis/vso/) French Literature (http://www.discoverfrance.net/France/Literature/DF_literature5.shtml) Women’s Reading Material (http://www.nearwell.com/downloads/Chapter2_LC.doc) Sensationalist Review( http://www.humanities.mcmaster.ca/~mactavis/vso/reviews/reviews.htm)

Life chances of young people Essay

Describe the social, economic and cultural factors that can have an impact on the outcomes and life chances of young people. Whether it be family income, social class or racial background, factors like these often have a long lasting impact on children’s lives. The economic factors are, in my opinion, the easiest to describe as the extremes are most apparent. GCSE results showed that children who’s parents worked tended to do better that those who’s parents didn’t. Those children who lived below the poverty line tended to do worse again. This is a clear indicator that economic wellbeing has a positive effect on the outcomes of young people. Cultural factors can impact massively on children’s lives. The first example of this that springs to most people‘s minds is often when a group is discriminated against because of their culture. This is well documented throughout history and where it has happened, those children who have been subject to discrimination have generally achieved less at school and had fewer life chances. This is not the only example however. In certain cultures there is a tendency for boys to be offered more opportunities than girls, possibly where the girls will expected to take on the role of housewife. This is the case in certain religious sects and ethnic backgrounds. For me, social inequality is the broadest factor that can impact upon children. The class system may still be used on occasion to differentiate and discriminate , whether by other children or authorities keen to place children in a certain category. The more common factors though are things like bullying and gender discrimination. Bullying is a traumatic experience that will often affect a child for many years, sometimes into adulthood. Children who have been bullied will often be less confident and can often  experience difficulty at school. Gender discrimination can sometimes lead to bullying but is also evident elsewhere in the UK. Men still tend to earn more than women and still occupy a great many more CEO roles in this country. There are far more male Mps and a smaller percentage of women again in the cabinet. Explain the importance and impact of poverty on the outcomes and life chances of young people. University entrance results show that far fewer children who have grown up in poverty are entering higher education. This is a clear indicator that poverty has a negative effect on a child’s education. This can be for a number of reasons. Simply owning a car allows parents a wider choice of schools for their children to attend. Another example is whether or not the child has a workspace in order to complete homework or projects for school. Children living in poverty often live in a small house where each room is shared between several people. The more serious cases however are when children are discriminated against because of their families wealth. More often than not the first indicator of poverty will be a child’s appearance. Those children who live in poverty have a higher tendency towards poor hygiene and scruffier clothes, as their families may not own a washing machine or in more extreme cases, have any hot water. This can lead to some professionals categorising these children as underachievers, whilst their peers may pick on them which may lead to bullying. Children who live in poverty are seldom offered the luxury of things like holidays. This is especially true of holidays abroad. I once taught in a school in Bradford where none of the children, aged 8- 9, had left the city. This means they have never experienced other cultures or places and may be less likely to in later life. When those children become adults this means they are less likely to make a geographical move in order to help them out of poverty. Examples of this are rife in south Wales where there are no longer any jobs in towns such as Merthyr Tydfil. Unemployment figures have continued to rise whilst young adults are finishing school and remaining in  their home town. Describe the impact of children and young people’s experiences on the outcomes and life chances of young people. Oscar Wild said that â€Å"variety is the spice of life†. Too an extent I believe this to be true. Those children who are offered many rich and varied experiences are often more open minded when it comes to trying something new. However, the way in which children’s life chances can be most keenly affected is through a traumatic experience. Children who suffer bereavement or abuse often have issues socially and may struggle to make friends. Children who are bullied by peers, teachers or family often build a negative association with that aspect of their life and will turn down chances such as further education or families of their own. The flip side of course is if excellent care is given then children will most likely flourish and seize their opportunities. The role of the Early Years professional is to provide positive experiences for children, whilst identifying negative ones and offering support, not just to the child, but to the family as a whole. Through this the child will build in confidence and learning and will be better prepared for, and more likely to seize the opportunities that life provides.

International Marketing Plan for Tata Nano

International Marketing Plan for Tata Nano The aim of this case study is to develop an international marketing plan for ‘Tata Nano’ the world’s lowest price car with lowest fuel consumption produced by the Tata Motors of India. To carry out the marketing plan, this report will provide historical background and cultural background of host country and give a brief overview of the company and economic analysis of home country India including an export diagnosis of the company.Advertising We will write a custom essay sample on International Marketing Plan for Tata Nano specifically for you for only $16.05 $11/page Learn More Background of the Company TSL (2011) reported that the Tata group stated it journey in 1868 and now operating in eighty countries with ninety different subsidiaries with a market capitalization of US$ 100.39 billion while its 57% of the revenue comes from export. Donlan (2005) mentioned that in 2003, the hundred and forty years old group of companies announced in the Geneva Motor Show that Tata Motors would produce world’s cheapest car ’Tata- Nano’. In 2006, Tata Motors started to establish its Nano plant at Singur of West Bengal in India by accruing 1,000 acres of land, which was disturbed by the political violence of farmers who were not willing to give agricultural land for Nano plant. After trilateral negotiation with the government political parties and entrepreneurs Tata Nano successfully came in the market in March 2009 and the market response were more than expectation due to the world’s cheapest car with highest energy efficiency both in home and abroad. However, this brand is popularly known as a raise- engine, cheap, four- passenger city automobile and it is generally a silver bodied car. Some common features of this product include single windscreen wiper, three pull nets on wheels, single mirror without CD player or radio along with airbags and power steering and 623cc engine, etc. The Nano has three basic models offering distinct patterns of additional values regarding without additional benefits, with air condition and with power windows along with air condition. According to the annual report 2010 of this company, its outer layout has designed by Italian Institute of Development in Automotive Engineering, and its engine configurations involve 2 cylinder petrol, value of Motronic engine, 35 PS power, 48 N.m Torque and the compression ratio of 9:5:1. Regarding suspension, brakes and tires, the car has 180 mm of front and 180 mm of rear brake, 1315 mm of rear and 1325 mm of from track and finally, McPherson strut of front and free coil spring of rear suspension while its wheels are sized as 12 inches. It has the average speed of 60 km/h with the maximum limit of 105 km/h a full efficiency is 23.6 km per liter; however, it is a rear wheel drive car that has 4 speeds manual spreads with automatic rack and pinion steering with 4 meters of revolving radius. Various entities supply i ts multiple parts among them some are Bosch, Caparo, Delphi, Ficosa, GKN, Mahle, TRW, Visteon and AG etc. (Tata Nano, 2011)Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More PEST analysis The PEST analysis of Tata Nano for US market is shown below- Political factors: USA is the country that has relatively stable government with specific and advantageous business policies for foreign companies, like- Tata. Also the country’s local government already has several trading relations with various Indian vendors which would leverage the introduction of Nano into that country (USA Forum, 2011). Economic factors: The overall economic condition of USA is very well and for this, it is considered the strongest economy in the world. Thus, Tata needs to consider a number of integral factors, like- interest rates, inflation and unemployment level and GDP etc. because those factors can posit ively or negatively affect the sales and profitability from the product (USA Forum, 2011). Socio- cultural factors: It incorporates prime religion, local attitude towards imported products, projected influence of language, recreation and leisure pattern of people, environmental concern and the practice of green marketing, family pattern and life cycle etc. (USA Forum, 2011). Technological factors: One of the prime characteristics of US consumers is that they are highly technologically advanced than many other consumers of other parts of the world. So, this factor includes customer affordability to enjoy new technology, habituation of using online distribution channel and the potential to use technology more than product differentiation as providing customer service or promotion (USA Forum, 2011). Relevant History Library of Congress (2004) pointed out that India is one of the Asian emerging economies that became independent in 1947 coming out from British colonial rule more than a t wo centuries, the country upholds multi party federal democratic system based on secularism and social justice. In context of population, India is the world’s prevalent democratic country that has successfully evidenced balance of power between the central and state government with rich diversity of nations while the country huge political unrest with a number of isolation movements. Kujur (2008) mentioned that the remarkable political and social unrest of India has aligned with underground political organizations like Marxist-Leninist Communist Party of India, People’s War Group, Maoist Communist Centre and Naxal Movement all these go with arms straggle that seriously hampered the smooth investment environment of country.Advertising We will write a custom essay sample on International Marketing Plan for Tata Nano specifically for you for only $16.05 $11/page Learn More The government and law enforcement agencies have to engage special effort for the unification of the country and to protect terrorist trends of communist groups and liberation activists. The major political parties who are in democratic practice are Congress- that carried out independence, BJP and Left Alliances though there are dozens of regional parties in every state with strong institutional infrastructure to protect isolation or so called liberation movement. With far above the ground religion diversity such as Hindu, Muslim, Buddha, and Christen, Indian political system has ensured human right, freedom of speech, liberty of media, and nourishing scholars to face the challenger of globalization though there are enough evidence of emergency and presidential rule in some provinces. In the province West Bengal where the Tata Nano plant situated, has ruled by left alliance under the leadership of communist party for more than four decades, and the Tata Motors has to face serious political disturbance with its Nano project though the government has strong support for Tata. Population IndexMundi (2011) forecasted that the total population of India is approximately 1,189,172,906 in 2011 while it was 1,173,108,018 in 2010. Initially, the population growth rate was high, but not this rate is reducing dramatically, for instance, in 2004 and 2007, it was 2.91 % and 3.15% approximately and now the growth rate is 1.39%. Figure 1: Total population of India from 2003 to 2011 Source: IndexMundi (2011)Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Legal System India is a promising market to the present corporate houses and the legal system of India is very flexible to the multinationals and new entrants as the government tries to ensure the highest possible business-friendly environment to the firms, as a result, the policy makers support to increase Foreign Direct Investments. However, it is notable that commercial legislation regarding labor and environmental concerns are theoretically very strong, but practically practice of labor law and ethical codes is not too standard in terms of remuneration, workplace safety and compensation issues. Distribution System For distributing Nano in the USA, the marketer can import the ‘easy- to- assemble’ kits from their home country and then the products should assemble at certain locations. After that, the company should redistribute the finished cars to the various showrooms throughout the country and fifty sales centers can be opened for this purpose (TNN, 2011). Gross Na tional Product (GNP) of India: ICAI (2008) pointed out that Indian GNP[1] calculated by adding net factor incomes from foreign counties with GDP[2] and subtracting the foreigners income from India while it is equated as GNP = GDP + NFIA [3]; NFIA indicates the balance of export earning and import spending. In this process, service rendered for free of cost are not taken into account of GNP, at the same time capital gains and losses are also dropped from this calculation as they are not the consequence of concurrent economic activities of that year. During the 10th five years plan India targeted 8% GNP growth but in practically the country has gained 7.6 % while the country pointed to gain 8.5 %. Zaman et al (2008) added that there is no particular standard to identify the gross national income in India, it has incorporated a number of factors, while the economic growth of the country are benchmarking with GNP growth, per capita income, renovation with multidimensional course of acti on connecting the restructuring and progress of entire economy with social systems. At the same time in Indian, the improvements of incomes and outputs are characteristically engross with fundamental changes in institutional infrastructure, education, social and political alignments, different ethic groups along with administrative structure. The export data of Indian statistically demonstrates noteworthy positive signs and its export are in intensifying with upper trend that point toward potency of the economy while the FDI[4] inflow in the country is a vital concern of the economy that has presented statistically momentous progress. The Indian GNP from 1990 to 2006 has demonstrated in the following table as follow- Figure 2: Indian GNP Table 1970 – 2006 Source: Zaman et al (2008) WUSTL (2011) pointed out that the Indian economy is the world’s eleventh largest economy with GNP of US$ 2400 billion in context of purchasing power parity while the agriculture sector cont ributes 25.3 %, industrial production donates 26.2 %, manufacturing segment produces 15.1 %, and rest 33.4 % contributed by the service sector. For the country has been progressing in its GNP growth at a targeted growth of 8 % and the driving force laid behind for such achievement are the democratic society with low cost labor, vibrant capital market, and liberalized capital market and open window for foreign direct investment. Principal Industrial Sector of India The raising sectors of India those are aimed to compete in the global market are as biotechnology, pharmaceutical, petrochemical, iron, steel, chemicals, vehicles, entertainment, alternative energy resources, software, and information technology and the country already proved its successful footstep for IT industry while major multinational companies are deeply concerned with the Indian market. WUSTL (2011) also added that the major growth driver of Indian economy and the biggest asset for future growth is its competent pe ople while the population of the country has been growing at 1.8% per year with increasing education rate and the domestic customer market is growing 5 to 10 percent per annum. Principal Exports Johansson (2008) stated that exporting means the promotion and direct sells of locally manufactured products in the foreign market and it is a well-developed and conventional form of strategy to capture international markets. As a result, export is the core basis of revenue for the India’s financial system because it generates huge amount of money from this segment and earning from exports is increasing per year, for instance, India’s net exports earning was approximately $168.2 billion in 2010 whereas economists estimate $201 billion in current year (IndexMundi, 2010). However, the following figure demonstrates the actual figure of exports from 2003 to 2011 Fiscal Year Total Imports ($billion) Rank 2003 44.50 32 2004 57.24 31 2005 69.18 33 2006 76.23 33 2007 112. 00 29 2008 151.30 25 2009 176.40 25 2010 168.20 21 2011 201.00 22 Figure 3: Net Exports Source: IndexMundi (2011) Trade Deficits Library of Congress (2004) India’s negative trade balance has grown gradually from last three decades such as in 2010 exports were $168.20 billion and imports were $253.90 billion, resultant Trade Deficits were of $85.7 billion whereas Indexmundi (2011) estimated that this negative balance of trade would be more than $126 billion. Figure 4: Surplus or Trade Deficits Source: Trading Economics (2011) Cultural Analysis Education and literacy rates: The US government is basically responsible for providing education with three sectors of funds as state, federal and local. More than 77% people have completed their educational life from kindergarten to graduation level. Among the adults, more than 85% have finished their high school level and 27% have completed bachelor’s degree or more. This sophisticated educational background of the c ountry is an optimistic factor for Nano since education assists knowledge and such knowledge would help US customers to understand the technical and general superiority of the car. For example, the white color car purchasers would be highly conscious about the safety issue of a car rather than any other configurations. In this regard, Nano would be able to gain much of their attention because of its careful safety arrangements (USA Forum, 2011). Social classes In USA, social class is a mixture of educational achievement, occupational and income sovereignty that influences its culture highly. In general, there are three layers of social classes as high, medium and low. The upper section involves in luxury consumptions and leisure. The middle class is commonly identified as the educated class having some key values. Although their budget is limited, they often have more opportunity to enjoy more travels and vacation. They want to have such consumptions which can be obtained at lowest price and yield in highest return. They are not at economy level but they are to maintain economy at their living. The working class is the top sufferer of economic vulnerability. This class and many middle class individuals frequently face job downsize. Moreover, the US workforce is highly productive as the average per week working hour is above 40 hours (USA Forum, 2011). In these circumstances, the Nano can be offered for the middle and especially the low class segment of US society. Since the car is positioned as an affordable item for all, this segment can easily find it suitable for both purchase and usage. The middle class would also prefer it by considering the economy along with the competitive advantages offered by the Nano (USA Forum, 2011). Belief system Most of the Americans commonly believe in equal opportunity for all in the society. Here, the concept of individuality and self- expression are highly emphasized. Competition is also a common thought which is practiced b y progressive attitude for improvement. For them, tradition is less valuable as they trust in rationality rather than emotion for taking any decision. This attitude is motivating for Nano as if they find it better than other American cars; they would be interested for buying this car. The integral parts and other value added features of Nano would be able to attract the rational sense of satisfaction of local customers (Virtual USA, 2011). Language Above 97% of Americans speak in English although there are above 300 native languages. Some other commonly used native languages are Spanish, Indo- European, Pacific Islander and Asian languages etc. The American dialect is called American English which has 4 major divisions involving south, north- eastern, mid- western and inland north. Both local and immigrants use English as a common language that acts as the symbol of cultural integration and can also influence the performance of Nano. Language can act as common form of promotional de vice for Nano. For example, one customer can express his/ her positive feeling about the car to another one by using language and thus form viral marketing (USA Forum, 2011). Living conditions and leisure Housing is a prime factor of living conditions. In urban areas of USA, most of the families live in semi- attached houses and apartments. Existence of dwelling houses, business units, shopping malls and educational institutes as a single unit is also common here. Urban dwellers also need to have more travel by mass transportation while children are familiar for walking or driving bicycle than rural areas. Life is comparatively busy and hasty in urban areas rather than rural ones. Thus, the small, city car image of Nano would be highly meaningful for accelerating such pattern of busy life. Since having a personal transport is very essential regarding the American living standard, the evolvement of Nano can satisfy such requirement with its size, engine and speed etc. (Virtual USA, 2 011). The Americans undertake a number of activities during their weekly holidays and vacations. Around the year, outdoor is the most common form of enjoying leisure. Some other forms of holiday activities are hiking, sailing, skiing, camping and mount riding etc. Participation of professional and non- professional sports is equally well- known there. The role of a private car is significant for enjoying that different types of leisure tasks, especially for outdoor. For many small families having the maximum members of 4 and single college or university students who want to spend their weekend at hill top, river side or jungle camp, Tata Nano would be the perfect choice regarding the overall size, passenger capacity and longevity of the car. Its 4 wheel driving condition would also be preferred by those who want to pass their vacation on rough hilly areas (USA Forum, 2011). Music and folklore Among a number of versions, American young generations and teens basically prefer rocking a nd cheerful music. This is particularly true when they go for a long drive alone or accompanied by some friends or simply enjoy a party. Folklore has also various dimensions regarding patriotism or fascination for cultural values which can be a symbol of expressive culture. Since the choice of music and orientation of folklore can significantly affect customer’s preference and attitude towards a product, both those factors would be notable for the US market expression of Nano (Virtual USA, 2011). Others There are some other cultural elements that should be considered for Tata Nano in USA. Such as- Family patterns: Divorce is a common phenomenon of American culture. Almost all the Americans commonly face this incident at least once in their life. For this, the trend of living in a single father or single mother family is increasing. Many also remarry; having kids and then continues a nuclear family. Thus, the specialization and features of Nano are adjustable for meeting the n eed of such families. Moreover, its low price offer would also be attractive towards those families (USA Forum, 2011). Fashion: Americans believe in flexibility and informality as a part of their fashion whether it is for clothing, eating, traveling or driving. This simplicity would be effective for expanding the market of Nano as the car integrates most of the mandatory parts and eliminates several common but less necessary items, like- CD player (Virtual USA, 2011). Culture of automobiles: In USA, the evolvement of sub- urban areas and the need of working class for communicating with cities are accelerating the need of having a private car. In almost all the states of USA, people have their own automobiles whether the brand or price would be. So, in this situation, the Nano poses a wide market potential since the car can be offered for a larger group of people for whom it is one of their primary needs (USA Forum, 2011). Evaluation of the Possible Success of Product The growth rate of the world economy declined from 5.2% in 2007 to 3.2% in 2008 because of global financial downturn and this crisis has started from the US market. The impact of this economic downturn was severe in this market as many companies has collapsed or insolvent due to liquidity crisis of Banks, corporate frauds or other financial management problems. On the other hand, Banks had not interested to provide car loan because of increasing number of unemployment rate and unstable market condition, which increased the risk of failure to pay back. As a result, it was difficult for the middle class people to purchase large and luxuries cars within their budget and this force creates the opportunity for the small car manufactures to enter the developed countries with their low cost products. However, Ruddick (2009) in The Telegraph reported that the largest automobile market has fallen dramatically due to recessionary pressure regarding unstable oil prices and lower employment ratio. In addition , market leader General Motors has also experienced unfortunate loss as in 2009, GM’s sales have been lowered by 30% than 2008 and this company had fired international white- collar payroll from 73000 to 63000 with downsizing of 3400 US employees (General Motors, 2010). However, the market position of GM has declined with the overall market demand after 2008, but it is important to mention that Toyota and other companies have already stared to manufacture small cars in order to create market demand for small sized products and the customers have showed positive response. On the other hand, IFC (2011) reported that the government of US is not interested to establish foreign companies by FDI, but this crisis must influence the government to reduce tax for foreign companies and flexible entry requirements. As a result, it can assume that the market would be profitable for Tata Nano as the market share of these Japanese companies is increasing in this market. Characteristics of t he Possible Market The new entrants enjoy huge facilities and greater flexibility in this market because it is the greatest and most technologically dominant economy in the globe. According to the report of IFC (2011) and Indexmundi (2011), this is the right place for developing products or expanding existing business though newcomers have to face high competition with other entry barriers, but the per capita GDP US$47,400 would minimize these risks. Indexmundi (2011) estimated that more that 12% people of US below poverty line and more than 4.43% Asian migrants who have straggle to sustain in this country. They also need transportation facilities, but they have not enough money to fulfill their demand, so, they can purchase Tata Nano as it is a comfortable, safe, well-weathered, low emission, and high fuel efficient model. On the other hand, Indexmundi (2011) reported that the unemployment rate is increasing day-by-day, for instance, present unemployment rate of the US is 9.3%, whi ch was 5.8% in 2003. However, increase rate of unemployment influences the current market position and purchasing power of customers in many ways, such as, bank would not ensure large fund for car. At the same time, middle class and higher class people would like to purchase luxury cars, but there are many small families and single person who also buy small car for their regular uses or reduce fuel costs. However, there are many companies (like McDonalds, KFC, Fedex, and so on) those offer home delivery services and these companies require transportation system, therefore, local multinational companies can be potential target market of Tata Nano. Description and Characteristics of Competition Tata Motors has to compete with numerous direct and indirect auto manufacturers though it is one of the most prominent and the largest markets in the world. However, this company may face hard competition from some other alternative transportation besides large and small, for instance, a signif icant part of the community use public transportation like bus, railways, trams and so on. According to the annual report 2010 of Tata, international business of the company had adversely affected by the financial crisis in the main markets, but its’ integrate market share of small vehicle sector has increased by 13.3% and developed brand image in global market. However, this brand has to face instance competition in local market as many companies like Maruti Suzuki Ltd and Bajaj Auto produce small cars, but Tata Nano has to compete with other multinational like General Motors, Hyundai, and Toyota, which are now manufacturing small cars to compete with Nano to attract middle class customers (Tata Nano, 2011). Tata Nano’s Distribution in the US Market Noronha (2005) pointed out that Tata Group has long integration with US market from early 1900s with a huge segment of product and services while the company has enlisted in the New York Stock Exchange with eighty offices all over the USA with ten thousand employments, thus Tata Motors would get some competitive advantage to establish distribution channel for Tata Nano. Tata Nano being the world’s lowest price car, has a great market demand in rural and urban low-income level people under the current recessionary economy, thus it would be suitable for the company to adopt free distribution channel rather than engaging territorial distributor. The company would first establish at least five sales and service centre covering the US market and all car distributors of US market arte entitled to collect Tata Nano from these points for their customers. Every distributor would facilitate with handsome commission package depending on their sales volume. The Economic Times (2011) reported that the Tata Motors has already gained a good customer base by purchasing British Auto Company for its Jaguar Land Rover that has an existing market in the US territory. To distributing Tata Nano, the company has the opportunity to involve the distribution channel of Jaguar Land Rover that would provide a strong distribution with less effort. It has predicted from the car dealer study that such a low price car with low fuels consumption – 54 miles for each gallon of gas would be preferable for the US market even if the price stands at US$ 10,000 and a large number of dealers are interested to act as Tata Nano’s distributor. Advertising, Promotion and Media used to communicate Product Tata Motors Ltd is going to undertake several strategic methods in order to boost its sales-configuration in existing market as well as to aware people of prospective market about the features of the products. However, its advertising strategies are now focusing on gratifying and impressing the people who put across abhorrence over Tata’ cars, but the advertising policy for the US market should different from existing market to create market demand with strong market position. Therefore, the ma rketer of Tata Nano Brand should consider effective media and promotional strategies to communicate with the customers to develop loyal customer base in the US small car market. However, the marketer will arrange integrated marketing communications (IMC) campaign to aware people about the advantage of this brand to save the environment from air pollution and to get economic benefit in this recessionary period. As the promotional strategy of the Tata Motors varies in accordance with changing consumer attitudes, demands, and other external factors, the marketer should mainly consider the environmental, socio-cultural and economical factors of the US market in order to arrange IMC campaign and other promotional activities. Media Plan Key Features Web site Initially, the marketers of Tata Nano will require to find out the web designers or programmers to design an excellent Website with integration of latest software because the US customer mostly collect information from the web co ntent and they also ask feedback by using the company’s website. As a result, they will highlight the main features of the model, key advantage to purchase this car, environmental concern, materials, safety measures and so on; You Tube Nowadays, TV. YouTube was launched in the year of 2005 as a video sharing website which allows users to download, upload, and view as well as share videos, but it is now the most popular and successful website of video sharing service in the cyber world. In addition, YouTube was providing over two billion videos per day, which is almost twice as many as the prime-time audience of all three main US television networks together; therefore, it could replace the traditional television and become the new television Social Networking Site As social networking sites contributed significantly over Tata’s marketing activities, it will use social networking sites like Facebook, Flickr, Twitter, and Linkedin in order to attract more customers i n the US zone; Billboard and Hoardings these can be every powerful media if the company can utilize this media by conducting proper market research Television Advertising is a type of communication that continuously imposes into people’s daily lives though people do not pay much attention to it, its form of persuasion, and of the extent how it manipulates the culture. At the same time, the Therefore, the marketer will use this media as one of the most effective sources to create customer attention; Radio The cost of advertisement in radio is lower than television, therefore, Tata Motors can also use this media to advertise its Tata Nano Brand Search Engine link in Google, yahoo, MSN and other sites are useful promotional tools for Tata Motors; Newspaper Advertisement in the newspaper is also effective tools Table 1: Media Plan for Tata Nano in the US market Source: Self generated Price Range for Competing Products Conklin (2005) reported that the entry of Japanes e auto makers like Toyota, Honda and Nisan have already reduced the market share of the General Motors, and Volkswagen by creating strong customer base in the US car market by using low cost strategies. At the same time, Tata Nano is the cheapest car brand in the world, which has long experience to enter new market and capture large share within short period using different strategies beside pricing strategy. However, different company setup the price range considering different factors such as market competition, production costs, direct margin, purchasing power of the customers and many other factors. As Tata Nano is marketed with lowest price structure, it can assume that it will ask cheapest price in the US market though the price would be comparatively higher than the price of other Asian countries. However, the rationale behind this pricing strategy would be included the extra costs to incorporate new features to decrease CO2 emissions and increase the safety measure in the mo del of Tata Nano. According to the annual report 2010 of Tata Motors, the price of this brand is only $2500 for international market, but this price changes considering the specific requirements of the markets and external environment, such as, the price of Tata Nano is higher in EU zone. However, Ramesh (2009) reported in The Guardian that the company would develop the European Nano to fulfill the requirements of the USA market in terms of higher safety standards includes airbags and antilock brakes. As a result, Tata Nano will set up the price of this brand considering EU market where the additional features make this brand more expensive. However, the company can ask $6,000 to $6500 to introduce this brand in the US market because Ramesh (2009) reported it has already asked more than â‚ ¤4000 in the EU market. Market Size and Sales Estimates According to the data of the World Street Journal, the US market is really potential to the small and Eco friendly car makers. However, W SJ (2011) reported that about 546,687 cars were sold in the US market in May 2011, among these cars 196,498 were small sized. However, it is important to note that the prospect of small cars is better than luxury cars or large cars in this market because the auto makers aggregate sale volume was only 73,566 luxury cars and 5,962 large cars in May 2011 (WSJ, 2011). Considering this fact, it can be estimated that the annual sale of small cars would be approximately 2357616 units. However, total car market size is also depend on the On the other hand, the customer behavior of the US market has changed due to the global financial crisis and development of the consciousness about the difficulties of large cars. The recessionary impacts derived the customers to purchase cars at low price and this force influenced small car producers to enter this market. Therefore, it would be easy to Tata Motors to capture large market share of the US car markets with their Tata Nano product. As this com pany needs to invest large amount of fund to enter this market, it is important to estimate approximate sales volume in order to avoid market risks. However, this report suggests that Tata Motors should enter the US market with small sales target at the initial stage, for instance, it sales target should 10000 units per month or 120000 units per year. The actual car sales of first year will direct the company to take further step to increase sales volume in this market. Recommendations From the above discussion, Tata Motors should enter the US market with Tata Nano brand as it has designed and manufactured in such way which assures the low budget customers to purchase a better quality, small size and fashionable car. On the other hand, the biggest competitive advantage of Nano is its cost cutting features would help the company to create market in the post-recessionary period. Since the company is thinking to renovate the electric version of the car, it is also possible that such el ectric version would become the least expensive electric automobile with a range of 130 km and lithium- ion batteries. In addition, the marketers of Tata think that the Nano is safe as the car incorporates some especial features, such as, side arm mirror for passenger, no airbags and wrinkle zone. As the US people highly concern on safety issue, all of these criteria help to have a safe driving at Nano than any other forms of two- wheel cars. Reference List Conklin, D. C. (2005) General Motors: Acting Strategically. Ortario: Richard Ivey School of Business. Donlan, T. (2005). Recent History of Tata Motors (TTM). Retrieved from http://seekingalpha.com/article/2486-recent-history-of-tata-motors-ttm General Motors (2010) Annual Report 2010 of General Motors Company. Retrieved from http://investor.gm.com/pdfs/10-K.pdf ICAI (2008) National Income India: Concept and Measurement. Retrieved from icai.org/resource_file/16788National_Income_india.pdf IFC (2011) United States: Doing Business 2 011 Making a Difference for Entrepreneurs. Retrieved from doingbusiness.org/~/media/fpdkm/doing%20business/documents/profiles/country/db11/usa.pdf Indexmundi (2011) Country profile of India. Retrieved from indexmundi.com/india/ Indexmundi (2011) United States Population below poverty line. Retrieved from indexmundi.com/united_states/population_below_poverty_line.html Kujur, R. (2008). Naxal Movement in India: A Profile. Retrieved from http://kms1.isn.ethz.ch/serviceengine/Files/ISN/92603/ipublicationdocument_singledocument/ec30cde7-82ac-42a3-82ac-55ddfe7144fe/en/RP15-Kujur-Naxal.pdf Library of Congress (2004) Country profile India. Retrieved from http://lcweb2.loc.gov/frd/cs/profiles/India.pdf Noronha, C. (2005) Good tidings. Retrieved from tata.com/company/Articles/inside.aspx?artid=e0L3MDPhEIQ= Ramesh, R. (2009) Tata Nano: Worlds cheapest car is Indias answer for cash-strapped drivers. The Guardian. Retrieved from guardian.co.uk/business/2009/mar/24/tata-nano-worlds-cheapest-car Tata Nano (2011). Annual Report 2010 of Tata Nano. Retrieved from tatamotors.com/investors/annualreports-pdf/Annual-Report-2009.pdf The Economic Times (2011) Tata Motors puts Jaguar, Land Rover back on track. Retrieved from http://articles.economictimes.indiatimes.com/2011-06-01/news/29608472_1_jlr-unit-tata-motors-british-luxury-marques-jaguar Trading Economics (2011) India Balance of Trade. Retrieved from tradingeconomics.com/india/balance-of-trade TSL (2011) Leadership with trust. Retrieved from tata.com/aboutus/sub_index.aspx?sectid=8hOk5Qq3EfQ= USA Forum. (2011). United States of America. Retrieved from everyculture.com/To-Z/United-States-of-America.html Virtual USA. (2011). USA Culture. Retrieved from virtualamericas.net/usa/culture/ WSJ. (2011) Sales and Share of Total Market by Manufacturer. Retrieved from http://online.wsj.com/mdc/public/page/2_3022-autosales.html WUSTL. (2011). Doing Business in India the Indian way. Retrieved from http://apps.olin.wustl.edu/orgs/ClubDown loads/India.ppt Zaman, K. Aman, Q. Farid, G. (2008). Key Indicators of Economic Development in Pakistan and India: A Comparative Study. Retrieved from eurojournals.com/ejefas_25_06.pdf Footnotes Gross National Product Gross Domestic Product Net Factor Income from Abroad Foreign Direct Investment

What to Know About Business Math

What to Know About Business Math Put quite simply; Business Math deals with Money! Who cant benefit from having a better understanding of money and finance? Everyone can! Business math is for the individual who wants to understand everything about personal finance fully and its also for the business person who wants to learn about business finance. You simply cant take business without taking math, business and math go hand in hand. Some passionate business math enthusiasts will tell you, if you dont take any other math or if you dont like math, you still need business math, and because it deals with money, you might just like it. Everyone needs to manage money on some level which is what makes business math important for everyone to take. What Will I Take in Business Math? Topics in business math are many and include, but are not limited to: Interest ratesLoansMortgage Finance and AmortizationDepreciationInvestment and Wealth ManagementInsuranceCreditTaxes and Tax LawsDiscountsPayrollMarkups and MarkdownsStatisticsInventoryFinancial StatementsDepreciationAnnuitiesFuture and Present ValuesSimple and Compound Interest What Math Do I Need to Take Business Math? If you decide that business math is for you or that you need business math for your career goal, you will benefit from having an understanding of the following topics along with the ability to solve word problems: Fractions, Decimals, and Percents (use the four operations with fractions, convert between fractions and decimals and percents, calculate percents of a number with and without a calculator, convert and simplify fractions, reduce and convert fractionsWhole Numbers (to a million, read, write, round and estimate numbers) and Integers (understand how to use the four operations with integersBasic Equations in Early Algebra (solve equations involving more than 1 unknown term, solve proportions, solve equations using more than one operation, use the problem-solving planBe Able to Use a Variety of FormulasUnderstand and Work with the Mean, Median and the ModeRead Charts and Graphs Business MathSummary Business math is not just for the business owner or for personal finance. Business math is also important for the real estate profession, they need to know how to close a deal financially, and to understand mortgages, calculate commission rates, taxes and fees and use a variety of formulas effectively. Wealth managers and advisers, bankers, investment consultants, stockbrokers, accountants, and tax consultants all need to understand the financial transactions for investment purposes along with having an understanding of growth or loss over time. Business owners need to understand payroll applications and deductions. Then theres goods and services. Whether its buying or selling, an understanding of discounts, markups, overhead, profits, revenues, and costs are all essential components of the math needed to manage inventory whether it be goods and services or property, which also needs to be financially managed. Having a background in math opens opportunities, and the job prospects are promising. Now is the time to embark on business math.

Problems faced by Grandiose Motors Essay Example | Topics and Well Written Essays - 2500 words

Problems faced by Grandiose Motors - Essay Example Being proactive in his approach, the CEO wants to make sure that the planning for inventory management is done in advance so that the company can remain efficient. A major factor, which Felix Fabulous has extracted out, which could cause problems to the company is the inventory management system of the spare parts which are used in after sales service, one of the most important reasons why customers prefer Grandiose Motors over its competitors. In order to maintain the reputation of the company as an excellent provider of after sales service, the CEO wants to make sure that the purchasing and inventory management of the service parts should remain as efficient as possible and the company must be able to provide all the necessary spare parts without delaying customer wait time and at the same time reduce the cost of inventory holding and other operations in order to provide customers with low priced after sales service car repairs.. That is why he wants the purchasing department to de vise strategies for improved purchasing and warehousing of spare parts and other materials. A car dealership is a business in which profitability depends on per square foot of floor space and as vehicles occupy a lot of space, it is important that any car dealership must allocate maximum space to accommodate the placement of vehicles. In order to do so, it must utilize a much lesser space for other operations such as keeping and warehousing inventory. In light of this, Grandiose Motors faces the following problems related to space availability and inventory management: All the parts had different levels of demand and different suppliers; hence the company had to deal with many suppliers at the same time. This prohibited the company to achieve cost cutting as they could not purchase bulk quantity from a single supplier at a discount.

The T Test and the Chi-square Test Article Example | Topics and Well Written Essays - 1250 words

The T Test and the Chi-square Test - Article Example That is the significant differences in the means of two independently sampled populations can be evaluated. The two assumptions are the independence of population and within each population, the variable of interest is normally distributed with equal variances. The mathematical derivation of this test statistic is as follows: where n1 and n2 are the numbers of observations in each of the two groups; x1 and x2 are the means of the two groups. is the estimate of the standard deviation of (á ºâ€¹1 - á ºâ€¹2) and is calculated using the formula: Consider the situation when we would like to determine whether there was a significant difference in the infant birth weight between mothers who smoked during pregnancy and those who did not. The mean birth weight measured among ten infants whose mothers smoked was 5 lbs., while the mean birth weight measured among the same number of infants whose mothers did not smoke was 8 lbs. Based on the weight measurements of the 20 infants, the pooled sample variance was obtained as 3 lbs. Using the above formula, the calculated t-test statistic was approximately 3.9 with 18 degrees of freedom. The two-sided p-value associated with this test is approximately 0.0006. In other words, even if there was no connection between birth weight and maternal smoking, it could be said that there is a 6 out of 10,000 chance of observing a difference at least as large as 3 lbs. by chance alone. Hence we would conclude that the observed mean difference of 3 lbs. was statistically significant as it could not b e explained as to be by chance. The chi-square test is used to compare the observed data with data expected to obtain according to a specific hypothesis. The data involves categorical variables only. It requires the observed data in a tabular format containing the categories in rows and columns. Thus chi-square test statistic is designed to test the null hypothesis that there is no association between the rows and columns.