Thursday, September 29, 2016

A rich land with poor people Ethiopia: #coffeetalk


Ethiopia the birthplace of coffee and is custom to a pure product of the highest quality. In 2003 many Ethiopian farmers in Kaffa and Oromia were affected by the plummeted prices of coffee abandoned the crop while others fled to the city ("History Of Coffee In Ethiopia", n.d.). In 2008 ninety-five percent of the coffee grown to export is harvested in the backyards of farmers (Tansey, 2008). The Samb (2016) website, states according to World Bank figures, coffee makes up half of Ethiopia GDP, eighty- four percent of exports, and eighty percent of employment. In 2014 the country projected to ramp its production forty-five percent to two- hundred and sixty- thousand tons of coffee (Samb, 2016). Ethiopia remains to be one of the poorest nations in the world despite its land rich biodiversity. The per capita in 2015 was recorded as $1,529.89 the country highest point ever ("Ethiopia GDP Per Capita 1990- 2016", 2016). Ethiopian Yirgacheffe $15.00 per lb USD shop at http://echbg.com

Saturday, September 24, 2016

The new Race behavior a closer look at a global market and social media effects


Even with complex listening software to monitor millions of dialogs, discussions and conversation data it is difficult to decipher the consumer point of view in real time (Hayden and Webster, 2015). Social media, text, picture messages has been blamed for creating not only a new language but a new category of people. Alongside segmented groups of race, gender, economics, and we now have behavior. According to Hayden & Webster (2015), Natural Listening Programs (NLP) are able to analyze millions of text and categorizes groups by behavior a model that has been unprecedented before the social media tool. What does this mean for the business world, can we assume a generation has moved closer to an artificial intelligence age? Is it safe to ask now how long will it before the shopping experience completely change? Can we even assume that one day in the near future brick and mortar stores will be obsolete? I venture to say that all of the above are fair questions considering the dynamic of social media platforms. In reference to retail some have went into manufacturing to produce a brand consumers will trust and shareholders can yield larger margins with. Although a majority of US and global retailers use purchasing power to buy from manufacturers and marginalize retail. In many instances American production cost in comparison to China, Mexico, and other macro- productive nations, multiplies US production prices above market willingness. From a global perspective of supply and demand economist must begin to ask questions about the future of world retail markets. The landscape of competition in the retail industry has the prospects of becoming increasingly aggressive and dangerous for companies behind the social media learning curve. When suppliers of a global market connect directly with buyers what will the world of business look like? Reference Hayden, T., & Webster, T. (2015). The mobile commerce revolution: Business success in a wireless world. Indianapolis, IN: Que Publishing.

Thursday, September 15, 2016

Domestic advantage in emerging markets (EM)


Domestic companies in emerging markets (EM) use leverage to compete against Multi-national companies (MNC's). The advantage home grown companies has is its understanding of the native market. Emerging markets acquire labor at cheaper rates, knowing the native recipes and traditions, and use loyalty as a selling point. The same way companies in America advertise the "made in the USA", or "buy local" marketing slogans to foster pride and guilt in consumers other countries do it too. Domestic brands use heritage knowledge to identify with the consumer market. According to Kotabe & Helsen, 2014 "Looking at China, the fastest growing EM, local champions throw their weight in dozens of industries". The advantage MNC has in recruiting talent from emerging markets is in the ability to pay workers above what they would receive working for a company in their home land. MNC also invest large sums of dollars in an undersaturated market if trade laws permit. Understanding emerging markets requires an understanding of the sophistication of its consumers. MNC should know; if consumers buy brands or no name, new or used, and even market disposable income and per capita (Kotabe & Helsen, 2014). Reference Kotabe, M., & Helsen, K. (2014). Global marketing management (6th Ed.). New Jersey, NJ: John Wiley

A look at indicators when going global


In today's global market companies decide the best areas to invest in according to key indicators. As a part business strategic plan for Multinational Companies (MNC's) researchers evaluate per capita, joint venture possibilities; according to geographic locations (Kotabe & Helsen, 2014). The risk entering a new market stems from the political and economic conditions of the country. Corporations consider list of variables before deciding the scale of entry into the global market.  Company objective determine the scale of entry. Scale of entry is the measurement of resources involving monetary- humans a business use to enter into a global market (Kotabe & Helsen, 2014). As a rule of thumb companies invest more in areas that are well off as oppose to the poverty stricken. The larger scale entries are often reserved for developed regions. The company objective also determine its commitment of resources. A business has the opportunity to perform a small scale entry by licensing with established companies in the desired country. However the risk associated with this tactic is the company that is offering the license could be a future competitor (Kotabe & Helsen, 2014). Entering a new market the organization must consider competition along with the other variables mentioned if it plans to have a long term presence in the new market are the intentions. Reference Kotabe, M., & Helsen, K. (2014). Global marketing management (6th Ed). New Jersey, NJ: John Wiley