Title - Cross cultural challenges between America and China

Title - Cross cultural challenges between America and China

Table of Contents

1.    Introduction. 1

2.    Common Cultural dissimilarities between the West and China. 3

3.    Impact of Cultural Differences on Cooperative Strategies. 7

4.    Impact of Cultural Differences on Conflict Management 8

5.    Impact of Cultural Differences on Decision-making. 9

5.1.     Risk-taking/Risk-avoiding. 9

5.2.     Levels of Participation in Decision-making. 9

6.    Impact of Cultural Differences on Work-group Characteristics. 11

7.    Impact of Cultural Differences on Motivation Systems. 12

8.    Conclusion. 14

References. 16

1.      Introduction

Due to globalization of world-trade, overseas investors are attracted towards Chinese market. The trouble of cross-cultural organization comes into existence as the collaboration between China & its culturally diverse foreign associates keep on increasing at an exceptional rate. The study depicts views on the common cultural dissimilarities between America & China through the application of cultural dimensions of Hofstede. Moreover, it helps to develop understanding regarding influence of these cultural dissimilarities on their business activities regarding following concerns - supportive plans, work-group characteristics, decision-making, motivation systems and conflict management.

This report is focusing on a global company from a western economy, i.e. America contemplating a joint venture with a foreign partner in China and analyzing the cultural difficulties that are likely to be encountered.

The twenty first century paves the way for globalization in world-trade. International trade faces various concerns due to cultural dissimilarities. The survey was conducted in order to find out main challenge while pursuing international business which revealed that cultural dissimilarities is one of the topmost concern along with law, verbal communication, price competition, time differences, knowledge, deliverance, overseas exchange and cultural differences. Hofstede (2003) stated that there is a little in every nation called 'management', but its significance varies to a bigger or lesser degree from one nation to another.

It may be taken into consideration that various global organizations have failed because of ignoring cultural differences. Though, internationalization of the world economy resulted in prospects for international alliance among various nations but has also resulted in different challenges and concerns regarding efficient management of associations with diverse cultures. 

Due to increased significance of the China market in the global market, various global corporations depicted their interest for entering Chinese market for exploring trade prospects. They entered the vast market through joint ventures, mergers or acquisitions which stimulated the requirement for study of cultural dissimilarities in China. It was stated that severe challenges due to cultural dissimilarities such as communication problem, raised probable transaction costs, various aims and methods for collaboration and operations have resulted various unsuccessful Sino-foreign collaboration projects. The main concerns for the corporation willing to enter Chinese market are as follows:

Ø  The way to be aware of China

Ø  The ways to do trade with Chinese citizens

2.      Common Cultural dissimilarities

Being the largest market and almost certainly the most attractive of all Asian markets is pursuing international alliances with variety of overseas associates. Along with the FDIs from Asian nations, the 2^nd major investors are from North America while 3^rd major investors are from Europe. Therefore, it is important to study the cultural dissimilarities between China along with its global trade associates in North America and Europe. 

For explaining the variations between the West and China, Hofstede's four cultural dimensions may be referred. Many researchers tried to explain the concept of culture but Hofstede initially adopted a realistic way for problem-solving in the field & associated culture with management. Hofstede (2000) defined culture being a shared programming of the human mind, differentiating the individuals of one group from other group.

Additional study by Javidan(2002) recognized a 5^th aspect known as longer period orientation or lesser period setting. Hofstede (2001) stated that through the comparison of few Western nations and China and these 5 aspects as per their cultural dimension points, few faltering concluding statements can be stated. Firstly, Western nations appear to be normally lesser (Canada 40, United States of America 50, United Kingdom 30, France 70 and Germany 45) than China (80) in power distance.

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Title - Barriers to Implementation of TQM in Two Tertiary Hospitals in Mumbai

Title - Barriers to Implementation of TQM in Two Tertiary Hospitals in Mumbai

Table of Contents

1.    Introduction.. 1

1.1.     Statement of the Problem.. 2

1.2.     Aims and Objectives of the Study. 3

2.    Literature Review.. 4

3.    Research Methodology. 6

3.1.     Data Collection Methods. 7

3.2. Data analysis. 7

1.      Introduction

The health care trade is tackled with a number of dares varying from growing medicinal prices, meager condition of infirmaries, declining health care facilities and a rising figure of mortality rate of hospitals. All these differences bring great dares for the health care executives on duty of the health care facilities in India. Consequently, they are required to attempt new managing procedures that will help their enterprises to be price operative and effective. Total Quality Management (TQM) comprises of a suitable reaction to these dares and it has developed the policy of high-quality to increase enterprise’s presentation and patient gratification. Though, in actual the application of TQM is usually ineffective. Few obstacles have been recognized which avoid the effective application of TQM in other businesses along with the health care trade.

The excellence of health cure is anticipated to donate to achieving a finer standard of lifecycle in humans’ daily lives. Efforts to discover real answers to efficiently handle health issues of Mumbai, India have been a continuing procedure for the political bodies that have been in supremacy for the former two eras. Quality recognition occurs as the key constituent of this suite. Hospitals in Mumbai as governmental bodies provide facilities to come across the mainstream of demand in the nationwide health trade. Issues of health facilities have resulted in the summary of new prototypes of health facility providing.

Because of these causes, attempts to raise together the publics’ and workers’ quality consciousness of health facilities have at present been applied. Unluckily, despite their distinguished familiarities in this field, there has been no agreement between shareholders till today, nor are staffs were motivated to part a lively character in this structure.

1.1.            Statement of the Problem

Though TQM has been a practical device for refining quality of carefulness in the health care provision trade (Yang and Christian, 2003), many infirmaries in Mumbai are till today are facing difficulties to offer quality carefulness that is required for all the shareholders engaged. It is properly recorded that many enterprises have tried to apply TQM; however they were not prosperous in their application (Zabada et al, 1998). Youseff and Zairii (1995) agree that numerous enterprises that have attempted to apply TQM came across several hindrances varying from administration to operational hindrances. This is in pact with Zabada et al(1998) and Shortell et al(1995) who discovered that there were problems to the implementation of TQM in health care. Ennis and Harrington (1999) study in the Indian health care discovered that there were great problems in the applying TQM in the health care and these hospitals undergone struggle to the application of TQM. Ovretviet (2000) aids that there are problems that the hospitals are confronted with when accomplishing TQM and several health care amenities have problems in applying TQM wits. Besides, there are no researches done in India particularly in government hospitals in Mumbai that measure and take care of the obstacles to the application of TQM. There is also least information on and associated to the application of TQM in the people’s health care.

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TITLE – A REVIEW OF MARKETINGSTRATEGIES WORK BYDIFFERENT PHARMACEUTICAL COMPANIES

TITLE – A REVIEW OF MARKETINGSTRATEGIES WORK BYDIFFERENT PHARMACEUTICAL COMPANIES

1.INTRODUCTION:

Background

A brief history of Indian pharmaceutical sector and the present situation

The pharmaceutical industry is the world’s largest industry due to worldwide revenues of

approximately US$2.8 trillion. Pharma industry has seeb major changes in the recent

years that place new demands on payers, providers and manufacturers. Customers now

demand the same choice and convenience from pharma industry that they find in other

segment.

Indian Pharmaceutical Industry is poised for high consistent growth over the next few

years, driven by a multitude of factors. Top Indian Companies like Ranbaxy, DRL

CIPLA and Dabur have already established their presence.

The pharmaceutical industry is a knowledge driven industry and is heavily dependent on

Research and Development for new products and growth. However, basic research

(discovering new molecules) is a time consuming and expensive process and is thus,

dominated by large global multinationals.

Indian companies have only recently entered the area. The Indian pharmaceutical

industry came into existence in 1901, when Bengal Chemical & Pharmaceutical

Company started its maiden operation in Calcutta. The next few decades saw the

pharmaceutical industry moving through several phases, largely in accordance with

government policies. Commencing with repackaging and preparation of formulations

from imported bulk drugs, the Indian industry has moved on to become a net foreign

exchange earner, and has been able to underline its presence in the global pharmaceutical

arena as one of the top 35 drug producers worldwide. Currently, there are more than

2,400 registered pharmaceutical producers in India. There are 24,000 licensed

pharmaceutical companies. Of the 465 bulk drugs used in India, approximately 425 are

manufactured here. India has more drug-manufacturing facilities that have been approved

by the U.S. Food and Drug Administration than any country other than the US. Indian

generics companies supply 84% of the AIDS drugs that Doctors without Borders uses to

treat 60,000 patients in more than 30 countries . However total pharmaceutical market is

as follows:

2.Marketing problem facing the organization

While many pharmaceutical companies have successfully deployed a plethora of

strategies to target the various customer types, recent business and customer trends are

creating new challenges and opportunities for increasing profitability. In the

pharmaceutical and healthcare industries, a complex web of decision-makers determines

the nature of the transaction (prescription) for which direct customer of pharma industry

(doctor) is responsible . Essentially, the end-user (patient) consumes a product and pays

the cost .

Use of medical representatives for marketing products to physicians and to exert some

influence over others in the hierarchy of decision makers has been a time-tested tradition.

Typically, sales force expense comprises an estimated 15 percent to 20 percent of annual

product revenues, the largest line item on the balance sheet. Despite this other expense,

the industry is still plagued with some very serious strategic and operational level issues.

3. Pharmaceutical Company Business Strategies

What’s the secret behind these successes? For one, the company operates in niche

formulations (chronic) segments such as psychiatry, cardiovascular, gastroentology and

neurology. While most of the top Indian companies have focused on antibiotics and anti–

infectives (acute), Cipla Pharma focused on therapeutic areas such as depression,

hypertension and cancer. The company has introduced the entire range of products and

has gained leadership position in each of these areas. Being a specialty company insulates

Cipla Pharma from the industry growth. The first quarter results for FY02 explain this to

some extent. While the industry was affected to a large extent by a slowdown in the

domestic formulations market, Cipla Pharma logged a growth of 26% in revenues. Over

the years Cipla has also used the strategy of acquisitions and mergers to grow quickly. It

acquired Knoll Pharma’s bulk drug facility, Gujarat Lyka Organics, 51.5% in M. J.

Pharma, merged TamilNadu Dadha Pharma & Milmet Labs and acquired Natco’s brands.

Post Merger with TamilNadu Dadha Pharma the company gained presence in gynecology

and oncology segments.

One of the constants of pharmaceutical company strategy over the past decade has

beenincreasing scale. Only by growing larger are companies able to afford the

considerable costs of drug development and distribution.

Within this broad approach at least two business models are discernable:

(i) Super Core Model involving the search for, and distribution of a small number of

drugs from Chronic Threapy Area that achieve substantial global sales. The success of

this model depends on achieving large returns from a small number of drugs in order to

pay for the high cost of the drug discovery and development process for a large number

of patients. Total revenues are highly dependant on sales from a small number of drugs.

(ii) Core Model in which a larger number of drugs from Acute Threapy Area are

marketed to big diversified markets. The advantage of this model is that its success is not

dependant on sales of a small number of drugs.

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Title - Survival Strategies for local furniture retailers vs. IKEA in India

Title - Survival Strategies for local furniture retailers vs. IKEA in India

____________________________________________________________

1. Introduction

1.1. Background

In its Annual Cabinet Meeting of 2012, the Indian government passed regulation regarding FDI. A 100% foreign direct investment was approved in the retail segment, but only for single brand products (Slaughter and May, 2012). This move on the part of the Indian government was one of the key reasons for the Swedish furniture giant IKEA, to make entry into the Indian furniture market with an investment budget of around $ 2 billion. Specific conditions were laid down by the Indian Government as to sourcing a certain percentage of finished products locally and after a few negotiating rounds, India has now approved of IKEA’s investment (Reuters India, 2009). The furniture Industry in India is valued at about $8 billion. This Industry belongs to the unorganised sector. Reports suggest that more than 90 percent of the Industry belongs to the unorganised sector. The Industry is also highly fragmented but at the same time it has a few big retailers who supply a large portion of the home furniture segment.

The major retailers are AT Home, Durian Industries, Godrej Interio, Lifestyle. These are the established retailers and have their presence all over the country. Since IKEA is now entering the Indian furniture and home furnishings market , all major retailers are at a risk of losing their market share as IKEA is known for supplying innovative designs at attractive price making it a value for money package, which is exactly what Indian consumers look for (Reuters India, 2009). Since this would be a cause of concern for Indian furniture retailers, this research paper focuses on different possible strategies that can be used by these retailers in order to gain a competitive advantage over multinationals like IKEA.

The literature review begins with defining the concepts of what exactly MNC’S are and also defining what competitive advantage means. The literature review for this paper can be looked at in 2 perspectives. First are the different sources by which a firm can gain competitive advantage. This deals with different sources with which a firm can generate and develop an edge over other competitors in the market. The various sources highlighted in this paper are, the resource base of a firm as a major source of competitive advantage. The other sources were cultural diversity as a source of competitive advantage and generation of customer value as source of competitive advantage. The literature on competitive advantage is more on a general basis however it is important to understand the different sources available at a firm’s disposal. The more narrow study of the papers literature review focuses on survival of local firms vs. MNC’s mainly focusing on emerging markets. The review is interesting and there is literature to support both sides of the argument. Some authors clearly identify MNC’s as the superior power with regards to resources and experience , however there is past evidence that shows that emergence of home grown champions in emerging economies is also something Indian furniture retailers can be inspired by. The literature review also manages to highlight certain strategy frameworks which have proved to be successful in the past.

In terms of the methodology the researcher has managed to conduct structured interviews with important personals from the 5 major retail stores in order to gain their insight. The author has chosen to use qualitative primary data as the main source of research in order to analyse the response to various strategies that these retailers would wish to employ. In terms of research philosophy the researcher has focused on positivism and interpretivism. The researcher would focus on inductive research as the main approach which deals with adding to existing literature by gaining valuable insights from interviews carried out. A combination of both inductive and deductive approaches has been used. Although more focused on inductive approach, the deductive approach focuses on comparing the data collected with existing literature and then developing a hypothesis on the same.

The research paper then focuses on analysing the data collected via interviews and analysing the same with various approaches that have been adopted by the researcher.

1.2. Aim and Objectives of the study

The main aim of the research is to analyse the strategies that can be adopted by Indian local firms to attain competitive advantage over foreign multinationals like IKEA. A key aspiration of the study is to analyse the survival strategies that can be used by local firms to defend themselves and sustain profitability in presence of global corporate giants like IKEA.

Based on the Aim the objectives of the present research work can be specifically listed as:

Ø  To analyze the influence on performance when interaction between local firms and MNCs takes place

Ø  To study the relation between the effect of entry of Multinational firm and the strategy adopted by the local firm

Ø  To review the strategies that can be adopted by local firms to attain competitive advantage over foreign multinationals.

Ø  To analyse the Indian retail future market and find out how the entry of IKEA will influence the performance of local firms

Ø  To analyze strategies that can be adopted by Indian local furniture firms to create competitive advantage over IKEA.

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COMPARATIVE STUDY OF PATTERN OF ADVERTISEMENTS IN TIMES OF INDIA AND INDIAN EXPRESS

A Research Proposal

On

COMPARATIVE STUDY OF

PATTERN OF ADVERTISEMENTS IN

TIMES OF INDIA

AND

INDIAN EXPRESS

Introduction: -

                        With an increase in global competition, technology advances and fast informed consumers, it has become important for business to make a powerful impact on target audiences and markets. Therefore marketing communication strategies has become an important part of company’s overall performance.

Introduction

Advertising has been defined as “a powerful communication force and a vital marketing tool  helping to sell goods and services, image and ideas…” (Wright 1983). Similarly, Roderick

(1980) defines advertising as “a message specified by its originator, carried by a communication system and intended to influence and/or inform an unknown audience”.

Advertising may also be seen as “a group of activities aiming at and including dissemination of information in any paid product or service to compel action in accordance with the intent of an identifiable sponsor.” (Doghudje,1985)

Advertising has a long history, with some opinions tracing its origin to the story of Adam, Eve and the Serpent in the Bible (Okigbo 1985 and Klepper 1985). Wright

(1983) however opines that advertising started in ancient Babylon at about 3000 BC when inscriptions for an ointment dealer, a scribe and a shoe maker were made on clay tablets. Sandage and Fryburger (1963) argue that Egyptians first wrote runaway – slave announcements on papyrus at about 3200 BC.

Situation in India

In India, town-crying and hawking were the earliest forms of advertising. These have survived

in many Indian villages till date. With respect to media advertising, which is the focus of this

paper, Sandage and Fryburger, 2006:) suggest that the first media advertising

was done in London in 1477 when a prayer book was announced for sale while the first

newspaper advertising appeared in the Boston Newsletter in 1704.

The print media came into India in 1859 with the appearance of a Yoruba language newspaper,

iwe Iroyin published by Reverend Henry Townsend at Abeokuta. The publication carried an

advert in the form of an announcement for the Anglican Church.

Advertisement: -

                        Advertisement consists of all activities involved in presenting to target audiences, non-personal paid massage relating to a product, idea or service. It can be done through various Media.

i)              Electronic Media.

ii)             Multi Media.

iii)            Print Media.

iv)           Outdoor Media etc…

Future advertisement classified as: -

 

Social Advt.         Political Advt.        Retail Advt.       Financial Advt.      Corporate Advt.

            However for any kind of advertisement media selection is an important & challenging taste for the Company or Firm.

            Advertisement through print media specially in newspapers is gaining important due to increase in literacy, circulation & improvement in quality of printing.

            According to the 1993 annual report of the register of Newspapers, there has been a growth in total circulation of details in 1998 over 1991 circulation increased from 5.3 crore in 1991 to 10.6 crore in 1998, it directly 100% increment.

            Hence statement of problem is that a comparative study of advertisements in Time of India and Indian Express.

Someone once said “effective advertising- it’s a bit like trying to interest a deaf tortoise” (unknown). By glossary terms, ‘effectiveness’ has been described as ‘the degree to which a system’s features and capabilities meet the users’ needs (Carnegie Mellon Glossary, 2004). This falls apt for the field of advertising too. Effective advertising can be described as a paid form of communicating a message which is persuasive, informative, and designed to influence purchasing behavior or thought patterns, and meets the goals that it set out to do. It is such advertising that welcomes one into the world of advertising in India.

1)            Objectives of the study: -

The present study has the following specific objectives:

i)          To study and assess, advertisements in Times of India.

ii)         To study and assess, advertisements in India Express.

iii)        To compare advertisements of Times of India and Indian Express.

iv)       To Study and understand impact of print-media advertisements on trade and commerce.

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