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Chapter One
Human Resource
Question: What is the Definition of Human Resources?
Answer: The number one glossary suggestion and question that people request is:
“What is the definition of human resources?” William R. Tracey, in The Human
Resources Glossary defines Human Resources as: “The people that staff and operate
an organization … as contrasted with the financial and material resources of an
organization. The organizational function that deals with the people ...” Long a term
used sarcastically by individuals in the line organization, because it relegates humans
to the same category as financial and material resources, human resources will be
replaced by more customer-friendly terms in the future.
Chapter Two
Market Research
Market research is the process of systematically gathering, recording and analyzing
data and information about customers, competitors and the market. Its uses include to
help create a business plan, launch a new product or service, fine tune existing
products and services, and expand into new markets. Market research can be used to
determine which portion of the population will purchase a product/service, based on
variables like age, gender, location and income level.
Chapter Three Product Life Cycle
Product lifecycle management (PLM) is the process of managing the entire lifecycle
of a product from its conception, through design and manufacture, to service and
disposal.[1] PLM integrates people, data, processes and business systems and
provides a product information backbone for companies and their extended enterprise
Product Lifecycle Management (PLM) is more to do with managing descriptions and
properties of a product through its development and useful life, mainly from a
business/engineering point of view; whereas Product life cycle management (PLCM)
is to do with the life of a product in the market with respect to business/commercial
costs and sales measures.
Chapter Four Electronic Commerce
Electronic commerce, commonly known as e-commerce or eCommerce, consists of
the buying and selling of products or services over electronic systems such as the
Internet and other computer networks. The amount of trade conducted electronically
has grown extraordinarily since the spread of the Internet. A wide variety of
commerce is conducted in this way, spurring and drawing on innovations in electronic
funds transfer, supply chain management, Internet marketing, online transaction
processing, electronic data interchange (EDI), inventory management systems, and
automated data collection systems. Modern electronic commerce typically uses the
World Wide Web at least at some point in the transaction's lifecycle, although it can
encompass a wider range of technologies such as e-mail as well.
Chapter Five
International Trade I
Eye contact
In the US, UK and much of northern Europe, strong, direct eye contact conveys
confidence and sincerity. In South America it is a sign of trustworthiness. However, in
some cultures such as the Japanese, prolonged eye contact is considered rude and is
generally avoided.
Personal space and touch
In Europe and North America, business people will usually leave a certain amount of
distance between themselves when interacting. Touching only takes place between
friends.
In South America or the Middle East, business people are tactile and like to get up
close.
In Japan or China, it is not uncommon for people to leave a gap of four feet when
conversing. Touching only takes place between close friends and family members.
Time
Western societies are very clock conscious.. Time is money and punctuality is crucial.
This is also the case in countries such as Japan or China where being late would be
taken as an insult.
However, in South America, southern Europe and the Middle East, being on time for
a meeting does not carry the same sense of urgency.
Meeting and greeting
Most international business people meet with a handshake.
In some countries, this is not appropriate between genders. Some may view a weak
handshake as sign of weakness whereas others would perceive a firm handshake as
aggressive.
How should people be addressed? Is it by first name, surname or title? Is small talk
part of the proceedings or not?
Gift giving
In Japan and China gift-giving is an integral part of business protocol. However in the
US or UK, it has negative connotations.
Where gifts are exchanged, should one give lavish gifts? Are they always reciprocated?
Should they be wrapped? Are there numbers or colours that should be avoided?
All the above in one way or another will impact cross cultural negotiation and can
only be learnt through cross cultural training. Doing or saying the wrong thing at the
wrong time, poor communication and cross cultural misunderstandings can all have
harmful consequences.
Cross cultural negotiation training builds its foundations upon understanding
etiquettes and approaches to business abroad before focusing on cross cultural
differences in negotiation styles and techniques.
Chapter Six International Trade II
The Chinese mainland registered a trade deficit of 77.56 billion U.S. dollars with
Taiwan last year, according to the Ministry of Commerce (MOC) on Friday.
Trade volume between the mainland and Taiwan reached 124.48 billion U.S. dollars,
up 15.4 percent year on year, MOC statistics show.
In 2007, the mainland's exports to Taiwan reached 23.46 billion U.S. dollars and
imports from the island reached 101.02 billion U.S. dollars, up 13.1 percent and 16
percent respectively.
During the same period, the mainland approved 3,299 projects with Taiwan
investment and the actual use of Taiwan investment reached 1.77 billion U.S. dollars,
down 12.1 percent and 20.4 percent respectively year on year.
By the end of 2007, direct investment from Taiwan in the mainland , totaled 45.76
billion U.S. dollars since figures first began in 1988 with the opening up of trade
between the mainland and Taiwan. The actual use of Taiwan's direct investment in the
mainland accounted for six percent of all actually used direct investment from outside
the Chinese mainland.
Taiwan is the mainland's seventh largest trade partner, ninth largest export market and
fifth largest import market.
Chapter Seven Types of Business
While buying a franchise affords numerous advantages over opening a solo business,
the benefits to franchisors are even greater. Some things to expect are lessened risk
when expanding your business. This is because you have no capital invested in your
franchisee's units. You also have increased growth, stronger brand building, and
limited contingent liability because as a franchisor you are not signing leases or taking
out financing. In addition, you have less liability for the actions of franchisees'
employees and events that take place in franchisees' units.
Franchisees often contribute to an advertising fund, which is used to promote the
company at the franchisor's discretion. Keep in mind that you will have to hold up to
promises you make to franchisees about advertising. Because franchisees are vested in
the success of their business, you can expect better performance and structure, as well
as count on long-term management instead of high turnover of non-owner managers.
In addition to the advantages, there are legal obligations now required of you.
Franchisors are required by the Federal Trade Commission (FTC) to present material
information about their company to potential franchisees. This information includes
your company's and all of its officers' litigation histories, financial information, and
anything material about the company.
Franchisors need to train franchisees how to operate the business and provide very
detailed operating manuals. Franchisors generally provide some kind of support as
well, from ongoing training to administrative and technical support. Franchisees rely
on the franchisor for guidance based on the franchisor's proven system. Franchising is
a mutually satisfying and lucrative arrangement if both parties meet their obligations.
Chapter Eight Technology
The Internet can be a wonderful resource for kids. They can use it to research school
reports, communicate with teachers and other kids, and play interactive games. Kids
who are old enough to punch in a few letters on the keyboard can literally access the
world.
But that access can also pose hazards. For example, an 8-year-old might do an
online search for "Lego." But with just one missed keystroke, the word "Legs" is
entered instead, and the child may be directed to a slew of websites with a focus on
legs — some of which may contain pornographic material.
That's why it's important to be aware of what your kids see and hear on the Internet,
who they meet, and what they share about themselves online.
Just like any safety issue, it's wise to talk with your kids about your concerns, take
advantage of resources to protect them, and keep a close eye on their activities.
Chapter Nine
Pricing
A well chosen price should do three things:

achieve the financial goals of the company (e.g., profitability)

fit the realities of the marketplace (Will customers buy at that price?)

support a product's positioning and be consistent with the other variables in
the marketing mix
o
price is influenced by the type of distribution channel used, the type of
promotions used, and the quality of the product

price will usually need to be relatively high if manufacturing is
expensive, distribution is exclusive, and the product is
supported by extensive advertising and promotional campaigns

a low price can be a viable substitute for product quality,
effective promotions, or an energetic selling effort by
distributors
From the marketer’s point of view, an efficient price is a price that is very close to the
maximum that customers are prepared to pay. In economic terms, it is a price that
shifts most of the consumer surplus to the producer. A good pricing strategy would be
the one which could balance between the price floor (the price below which the
organization ends up in losses) and the price ceiling(the price beyond which the
organization experiences a no demand situation).
Chapter Ten
Logistics
Logistics is the management of the flow of goods, information and other resources,
including energy and people, between the point of origin and the point of
consumption in order to meet the requirements of consumers (frequently, and
originally, military organizations). Logistics involve the integration of information,
transportation, inventory, warehousing, material-handling, and packaging. Logistics is
a channel of the supply chain which adds the value of time and place utility.
Chapter Eleven
Insurance
Global insurance premiums grew by 8.0% in 2006 (or 5% in real terms) to reach $3.7
trillion due to improved profitability and a benign economic environment
characterised by solid economic growth, moderate inflation and strong equity markets.
Profitability improved in both life and non-life insurance in 2006 compared to the
previous year. Life insurance premiums grew by 10.2% in 2006 as demand for
annuity and pension products rose. Non-life insurance premiums grew by 5.0% due to
growth in premium rates. Over the past decade, global insurance premiums rose by
more than a half as annual growth fluctuated between 2% and 11%.
Advanced economies account for the bulk of global insurance. With premium income
of $1,485bn, Europe was the most important region, followed by North America
($1,258bn) and Asia ($801bn). The top four countries accounted for nearly two-thirds
of premiums in 2006. The U.S. and Japan alone accounted for 43% of world
insurance, much higher than their 7% share of the global population. Emerging
markets accounted for over 85% of the world’s population but generated only around
10% of premiums. The volume of UK insurance business totalled $418bn in 2006 or
11.2% of global premiums.
Chapter Twelve Advertisement
With the dawn of the Internet came many new advertising opportunities. Popup, Flash,
banner, Popunder, advergaming, and email advertisements (the last often being a form
of spam) are now commonplace.
The ability to record shows on digital video recorders (such as TiVo) allow users to
record the programs for later viewing, enabling them to fast forward through
commercials. Additionally, as more seasons of pre-recorded box sets are offered for
sale of television programs; fewer people watch the shows on TV. However, the fact
that these sets are sold, means the company will receive additional profits from the
sales of these sets. To counter this effect, many advertisers have opted for product
placement on TV shows like Survivor.
Particularly since the rise of "entertaining" advertising, some people may like an
advertisement enough to wish to watch it later or show a friend. In general, the
advertising community has not yet made this easy, although some have used the
Internet to widely distribute their ads to anyone willing to see or hear them.
Another significant trend regarding future of advertising is the growing importance of
the niche market using niche or targeted ads. Also brought about by the Internet and
the theory of The Long Tail, advertisers will have an increasing ability to reach
specific audiences. In the past, the most efficient way to deliver a message was to
blanket the largest mass market audience possible. However, usage tracking, customer
profiles and the growing popularity of niche content brought about by everything
from blogs to social networking sites, provide advertisers with audiences that are
smaller but much better defined, leading to ads that are more relevant to viewers and
more effective for companies' marketing products. Among others, Comcast Spotlight
is one such advertiser employing this method in their video on demand menus. These
advertisements are targeted to a specific group and can be viewed by anyone wishing
to find out more about a particular business or practice at any time, right from their
home. This causes the viewer to become proactive and actually choose what
advertisements they want to view.
In freelance advertising, companies hold public competitions to create ads for their
product, the best one of which is chosen for widespread distribution with a prize given
to the winner(s). During the 2007 Super Bowl, PepsiCo held such a contest for the
creation of a 30-second television ad for the Doritos brand of chips, offering a cash
prize to the winner. Chevrolet held a similar competition for their Tahoe line of SUVs.
This type of advertising, however, is still in its infancy. It may ultimately decrease the
importance of advertising agencies by creating a niche for independent freelancers.
Chapter Thirteen
Marketing Mix
The Marketing mix is generally accepted as the use and specification of the four p's
describing the strategic position of a product in the marketplace. One version of the
origins of the marketing mix starts in 1948 when James Culliton said that a marketing
decision should be a result of something similar to a recipe. This version continued in
1953 when Neil Borden, in his American Marketing Association presidential address,
took the recipe idea one step further and coined the term 'Marketing-Mix'. A
prominent marketer, E. Jerome McCarthy, proposed a 4 P classification in 1960,
which would see wide popularity. The four Ps concept is explained in most marketing
textbooks and classes.
Chapter Fourteen
Branding
With the emergence of strong retailers the "own brand", a retailer's own branded
product (or service), also emerged as a major factor in the marketplace. Where the
retailer has a particularly strong identity (such as Marks & Spencer in the UK clothing
sector) this "own brand" may be able to compete against even the strongest brand
leaders, and may outperform those products that are not otherwise strongly branded.
Concerns were raised that such "own brands" might displace all other brands (as they
have done in Marks & Spencer outlets), but the evidence is that — at least in
supermarkets and department stores — consumers generally expect to see on display
something over 50 per cent (and preferably over 60 per cent) of brands other than
those of the retailer. Indeed, even the strongest own brands in the UK rarely achieve
better than third place in the overall market.
This means that strong independent brands (such as Kellogg's and Heinz), which have
maintained their marketing investments, are likely to continue their strong
performance. More than 50 per cent of UK FMCG brand leaders have held their
position for more than two decades, although it is arguable that those which have
switched their budgets to "buy space" in the retailers may be more exposed.
The strength of the retailers has, perhaps, been seen more in the pressure they have
been able to exert on the owners of even the strongest brands (and in particular on the
owners of the weaker third and fourth brands). Relationship marketing has been
applied most often to meet the wishes of such large customers (and indeed has been
demanded by them as recognition of their buying power). Some of the more active
marketers have now also switched to 'category marketing' - in which they take into
account all the needs of a retailer in a product category rather than more narrowly
focusing on their own brand.
At the same time, probably as an outgrowth of consumerism, "generic" (that is,
effectively unbranded) goods have also emerged. These made a positive virtue of
saving the cost of almost all marketing activities; emphasizing the lack of advertising
and, especially, the plain packaging (which was, however, often simply a vehicle for a
different kind of image). It would appear that the penetration of such generic products
peaked in the early 1980s, and most consumers still appear to be looking for the
qualities that the conventional brand provides.
Chapter Fifteen
Customer Service
Customer service (also known as Client Service) is the provision of service to
customers before, during and after a purchase.
According to Turban et al. (2002), “Customer service is a series of activities designed
to enhance the level of customer satisfaction – that is, the feeling that a product or
service has met the customer expectation.”
Its importance varies by product, industry and customer. As an example, an expert
customer might require less pre-purchase service (i.e., advice) than a novice. In many
cases, customer service is more important if the purchase relates to a “service” as
opposed to a “product".
Customer service may be provided by a person (e.g., sales and service representative),
or by automated means called self-service. Examples of self service are Internet sites.
Customer service is normally an integral part of a company’s customer value
proposition.
Some have argued that the quality and level of customer service has decreased in
recent years, and that this can be attributed to a lack of support or understanding at the
executive and middle management levels of a corporation and/or a customer service
policy.