Analysis of Heavy Metals Contamination in Urban Dust

Analysis of Heavy metals Contamination in Urban spit2.1 check up on OF REPORTED STUDIES2.1.1 Assessment of Heavy Metal in thoroughfare circularize in Kathmandu Metropolitan City and their Possible Impacts on the Environment.Chirika S.T. Pawan R.S.9 conducted a count in 2011 to determine the aims of effectual alloys in channel circularise at different localities in the Metropolitan City of Kathmandu, Nepal. A tote up of 20 passage dissipate experiments were hive away from four taste sites more(prenominal) as mechanical workshops, motor pose, market knowledge bases and residential areas as rise up as dissipate were imperturbable from sites which were not affected by relations.The composed stresss were digested commit aqua regia through microwave digestion and sedate alloys were resolute victimization a SOLAAR M5 Dual Automizer Atomic Absorption Spectrophotometer. The mean niggardness of level of hold and plate were 80.3 and 52.9 g/g. However, the hi ghest involve stringency was 116.8 g/g at the mechanical workshop, which were directly associated with the emissions from fomites tucker forth since vehicles were still exploitation slip away gasoline although it was banned in Nepal.2.1.2 Multivariate analysis of heavy metals defilement in urban system of Xian, Central ChinaFor this workplace undertaken in 2005, Yongming H. et al.23 calm sixty-five samples of urban stud in Xian. The aim of this muse was to determine the level of heavy metals such as Pb, Cr, Ag, Hg, Mn, Sb, Zn, Cu and As, as salutary as to identity their natural starting times. Xian was selected for this study since it was the central city consisting of heavy metals in spreadries, textile in spreadries and chemical industries. The placid samples were digested development HF, HNO3, H2SO4 and HClO4. The mark of heavy metals such as Cu, Pb, Zn, Cr, Ag and Mn where carried come on victimization Vario 6 atomic tightness spectrophotometer whereas Hg, As and Sb were analyzed by cold vapor atomic spectrometry.The highest mean submersion was found to be of course, Zinc, Manganese and Chromium which were 230.5, 421.3, 687 and 167.3 g/g respectively. It was cerebrate that the high parsimony prove principally from industrial sources as well as traffic sources. Further, the high concentration of Mn was found to originate from soil sources which were considered to be a mixture of natural and anthropogenic sources.2.1.3 design of Heavy Metals content in Soils and Indoor Dusts From nurseries in Dungun, TerengganuTahir M.N. et al.22 determined the concentrations of accredited heavy metals such as Al, Fe, Pb, Zn, Cd, Mn and Cu, in indoor dusts and outside soils from nurseries located in industrial, town and village area found in Dungun district, which was one of the coastal towns located in Malaysia. For this study carried out in 2007, eighteen sampling sites where chosen which were nursery schools. The sampling sites were divided in to 3 groups the first group was at the center of the town and near hard frequented urban traffic routes the second group selected was found in the randomness region of the town and was considered as industrial area. This region had high minginess of gasoleneeum chemical industry, power plant and main roadstead with heavy traffic loads. The Third group was village, situated at the edge of the urban area which was a quiet residential district with low the great unwashed of traffic and negligible industry.The collected samples were then digested and heavy metals concentrations in both soils and dust indoors were determined using atomic assiduity spectrometer (FS 220A VARIAN). The range of metal observe were 46.9 g/g for Cu, 338 g/g for Mn, 4.66 g/g for Cd, 130 g/g for Zn, 91.7 g/g for Pb and 114000 g/g for Al. However, from the result obtained, it was found that the village areas had higher(prenominal) level of toxic metals compared to both town and industrial areas for outdoor soils. On the other hand, industrial areas had exhibited higher mean concentration of Cu, Mn, Fe, Pb and Zn in their indoor dusts which originated from infiltration of outdoor particles, dust, soils, internal ventilation system, planning smoke, old paint and furniture materials.In general, results obtained from this study showed that some nursery schools in Dungun had high levels of heavy metals content in soils and indoor dust. It was suggested that the major(ip) source of these heavy metals in soils was due to the road vehicular emission.2.1.4 Metals Levels in Indoor and Outdoor Dust in Riyadh, Saudi ArabiaAl-Rajhi A.S. et al.3 conducted a study to determine the concentration of heavy metals in outdoor and indoor dusts in Riyadh, Saudi Arabia. In 1996 , outdoor dust samples were collected from 231 sites including various rural, suburban, and urban, information superhighway and two industrials sites and indoor samples were collected from 20 public community centres. The samples were digested using aqua regia and were then analyzed for heavy metals using atomic absorption spectrometer (Perkin-Elmer model 1100).The mean concentration of indoor dust were 639 and 52.9 g/g respectively for flow and plate and the outdoor dust concentrations for lead and nickel were 1762 and 43.9 g/g respectively. Among all these metals analyzed, lead had the highest concentrations. This was due to the use of leaded fuel, with levels being especially high near motorways as a result of high traffic density. However, it was observed that in that location was a slump in lead levels in suburban and rural areas where auto emissions were much less than in urban areas.2.1.5 Investigation of Trace Heavy metal Concentrations in the Street Dust Samples Collected from Kayseri, TurkeyDivrikli U. et al.12 investigated the levels of heavy metal ions of the street dusts from Kayseri, Turkey. A total of 77 street dust samples were collected during the period of April 2000 till June 2000 a nd control samples were collected from trinity hills outside Kayseri that were not affected by metal sources. After digestion with aqua regia, the samples were analyzed using flame atomic absorption spectrometry.The range of concentrations of heavy metals was 84 -532 g/g for lead and 49 -381 for nickel. It was observed that high levels of lead in dust were from combustion of gasoline. The highest concentration of lead (165.5 g/g ) was observed around street carrying heavy traffic and the minimum concentration was 103.3 g/g which was from school garden.For nickel, the source was from cabbage and corrosion of nickel containing part of the vehicles in the traffic. The highest concentration was 57.3 g/g which was observed in heavy traffic.2.1.6 Lead Distribution in Near-Surface Soils of Two Florida Cities Gainesville and Miami, USAIn 2004, Chirenje T. et al.8 conducted a study to determine lead distribution in soil in two Florida urban areas, having different levels of industrial de velopment and creation. 240 samples were collected from three land-use classes residential, commercial and public land. They were digested using USEPA method (hot plate digestion) and analyzed using graphite furnace AAS.After analysis of the samples, it was found that the average concentration of lead in Gainesville was 16 mg/kg while 93 mg/kg was observed in Miami. Considering Gainesville, the lead concentration increased as follows public parks (10 mg/kg), commercial areas (18 mg/kg), public buildings (20 mg/kg) and residential areas (23 mg/kg) whereas for Miami the increased was from public buildings (77 mg/kg), public parks (79 mg/kg), residential (102 mg/kg) to commercial areas (120 mg/kg). Hence, the higher lead concentration was found in Miami, which was mainly due to the soil properties alternatively than just anthropogenic factors.2.1.7 Heavy Metal Concentrations in Street and toss Deposited Dust in Anand City, IndiaBhattacharya T. et al.6 investigated the heavy metal co ncentrations in street and cockle deposited dust in Anand City, India in 2011 . Street dust samples and leaf deposited dust samples were collected from five major driveways selected on the basis of traffic load, population density and anthropogenic activities and analysis for Cu, Ni, Pb and Zn were carried out. The samples were digested and analyzed using AAS (Perkin Elmeyer model).The mean metal concentration in street dust sample varied with sampling location. Lead concentration (105.4 mg/kg) in dust samples was consistently high. The high Pb concentration was interpreted as resulting from the keep use of leaded gasoline on the outskirts of the city since some petrol stations were stilling selling unleaded petrol. In addition, Pb was also apply in manufacture of pesticides, fertilizers, paints, dyes and batteries. Therefore industrial sources had also contributed to Pb levels from vehicle emission. The concentration of nickel in the street dusts ranged from (56.9-75.81 mg/kg) . The main source of nickel in street dust was the combustion of diesel fuel. Unexpectedly, nickel content was relatively higher, compared to other metals, in the rural area suggesting that the spacious use of diesel in three wheelers, tractors and water pumps used for irrigation in rural areas was contributing the elevated level in dust.2.1.8 Heavy Metal Concentration in Road Deposited Dust at Ketu-South District, GhanaAddo M.A et al.1 carried out a study in 2012 to determine the metal concentration in deposited dust along the road of Ketu-South District, Ghana. Fifty sampling sites were selected from popular roads that experiences intense traffic conditions within the district. The collected samples were allowed to dry for 10 age and were analyzed by X-ray Fluorescence Analysis.The lowest metal concentration was 0.4 g/g for As 284 g/g for Cr 18.4g/g for Cu 233 g/g for Mn 12.3 for Ni 3.1 g/g for Pb and 18.2 g/g for Zn. It was noted in a roadway which runs through a host of rural communities. The maximum concentration of Cr (9106.0 g/g), Mn (1240.0 g/g), and Pb (67.80 g/g) were found in road soil samples collected from the roadway normally patronized by heavy trucks used in conveying cementum products and raw materials to and from the cement factory. Therefore, much cement dusts were spread along the road as blind drunk cement trucks made use of the road. The source of Cu and Zn in the samples was indicated by research as tire abrasion, the corrosion of metallic part of cars, lubricant and industrial.2.1.9 Heavy Metal Determination in Household Dust from Ilorin City, NigeriaAdekola F.A et al.2 collected samples from 18 different locations in Ilorin, which was the capital of Nigeria, to determine the levels of lead, cadmium, nickel, bulls eye and iron in indoor dusts. Sampling was done daily in the morning surrounded by the months June and September, 1998. The collected samples were digested and the concentrations of metals were determined using atomic ab sorption spectrophotometer (Pye Unicam Model 2900).The mean metal concentration in dust sample varied with sampling location. The range of concentration of heavy metals was (2.34 -10.17) mg/kg for Pb, (0.19 -1.99) mg/kg for Cu, (0.001 0.38) mg/kg for Cd, (0.006 -2.19) mg/kg for Ni and (28.6 -45.4) mg/kg for Fe. The high levels of concentration of Pb, Ni and Fe were largely likely originated from sources such as emission from automobiles and fall out from mole paint. Further, the important levels of Fe observed in all locations were due to the personality of the local soil and the intensity of human activities in the various localities.2.1.10 water-soluble Species and Heavy Metals Contamination of The petroleum Refinery Area, JordanIn 2002 , Momami A.K et al.16 investigated the levels of Pb, Cd, Cu, Zn, Al, Cr and Fe in street dust, soil, and plants in the Jordanian petroleum refinery. Eighty- one street dust samples, coded D1-D18, were collected from different sites such as high way, housing area, manufacturing area, main gates, dispatch parking area, tanker cargo area and major civilization units. The collected samples were dried and digested using concentrated nitric acid. Heavy metals were then determined using a Thermo Jarrel Ash Flame Atomic Absorption spectrometer, (Model Smith-Hieftje 11, USA, with SH back-ground correction. For determination of low concentrations of heavy metals, a Graphite Furnace Atomic Absorption mass spectrometer (GFAAS) was utilized.The mean concentration of heavy metals obtained was as follows Pb (77 g/g), Cu (69 g/g), Zn (178 g/g), Fe (4510 g/g), Cr (21 g/g) and Cd (1.38 g/g). The highest levels of lead were observed in the housing area, streets between loading parking area, the road tanker loading area and at streets near the main gate of the refinery. The high lead contamination at the housing area and at the main gate was due to automobile exhaust emission since most automobiles passed through these sites. Also fuel le aks, spills, and exhaust emissions from tankers in the loading parking area and tanker loading area was responsible for lead contamination occurring at these sites.Further, high concentrations of the other metals Cu, Zn, Cd and Cr were commonly found in the manufacturing area, and around the major refining units. These findings indicated that materials used in manufacturing cylinders, major refining processes, leaks of oil product during loading of tankers, and motor vehicles were the primary sources of these heavy metals. Additionally, existence of CU in street dust was derived from engine wear of automobiles, while attrition of automobile tires and lubricating oils were practicable sources of Zn and Cd.2.1.11 Soil Lead Pollution alongside Some major Roads In MauritiusIn 2000 , Choong Kwet Yive N.S et al.10 conducted a study to determine the lead levels in soil alongside main roads in Mauritius which were caused mainly by vehicular exhaust. Four Mauritian roads with different tra ffic densities were selected for sampling. The collected samples were digested using Milestone microwave digester and the lead determination was carried out using atomic absorption spectrometer (UNICAM 929).The mean lead concentration in dust sample varied with sampling location. The highest lead concentration, 1938 g/g, was found at Rd1, which was the major motorway having the highest traffic density. Further, it was also inform that the west side of Rd1 had a concentration of 786 g/g compared to that on the east side (536 g/g). This was due to the South- East Trade tramp which blows the lead particulate to the go forth side of the road. The low concentration of lead found was 12 g/g, which was due to the dry weather and campaign soil. It was concluded that the major sources of lead pollution in street dust was due to vehicular emission.2.1.12 Monitoring of Pb and Ni in Street Dust Coming from Vandermeersch StreetJhurry K.R.15 conducted a study in street dust coming from Vander meersch Street, to determine Pd and Ni concentration. Sixty- four dust samples were collected over a period of four months from August to November 2011. The collected samples were acid digested using microwave digester system and then analyzed using FAAS.The mean concentration of heavy metals was 65.4 ppm for lead and 208.2 ppm for nickel. Further, it was also reported that the left side of the road had the highest metal concentration compared to that on the right side. This was due to the South-East Trade Wind, blowing the dust particulate toward the left. The high Ni concentration observed was due to traffic density. Considering the lead concentration, it has decrease considerably since there was a shift from leaded gasoline to unleaded one. Further, other factors affecting lead level from one place to another was seasonal demeanour and human activities.2.1.13 Lead and Nickel Levels near Vandermeersch Street.Summoogum Y.P.21 carried out a study to determine the lead and nickel l evels in street dust at Vandermeersch Street, Mauritius. A total of 80 samples were collected from 8 different sampling sites over a period of five months from August to December 2012. The concentration of lead and nickel were determined using FAAS after digestion in acids using microwave digester.The mean concentration of heavy metals obtained was 32.6 ppm for lead and 52.5 ppm for nickel. The concentration of nickel was explained by the increase in traffic volume, which was mainly due to abrasion and corrosion of vehicular parts. Moreover, it was seen that the left side of the road was more begrime than that of the right, showing the effect of the South-East Trade Wind which blow the dust particulate toward the west side of the road, causing accumulation. For lead, it was seen that there was significant decrease since the use of leaded gasoline was banned in September 2002 and unleaded gasoline was introduced all over the island.

The Hospitality Industry Of Malaysia

The Hospitality Industry Of MalaysiaAround the world, the cordial reception exertion has been marked by growing at an unprecedented rate . in that respect has increased focus on the cordial reception fabrication as an application of globose dimensions. To daytime, the cordial reception exertion is considered as a successful heavens especially there argon much and to a greater extent consumers look at the smell not merely quantity. Consumers de discontinue not be attr proceeded by merely a large quantity of products offered, unless they result gestate attention to the quality of the products and military portion leaved. Hence, the cordial reception firms put to a greater extent emphasize in guests subscribes and requirements so that the customer will intuitive feeling sate. Dupre and roadway (1997) throw away menti iodind that the historic ability of cordial reception manufacturing to anticipate customer needs has contributed to its successful in global economy.When asking ab break through the components of cordial reception pains, most hatful will give answer of hotels and restaurants. In fact, cordial reception is just like a braggy umbrella. It is a raft-oriented industry and involves employers, employees, and customers. The personal credit line of cordial reception is created when the needs for certain work emerge for people absent from rest home. People may make a motion from one unsophisticated to an impudent(prenominal) one, or travel from one state to an opposite state. They may to a fault travel to a stance nearby their house. Those people need a prop to eat or sleep. That is cordial reception industry which volunteers these dickens distinct assists that satisfy people needs that argon sleep and eat. Thus, under the big umbrella of cordial reception, there argon devil main orbits which included inhabit and provender assistance (Jones, 2002). Hospitality industry has endured the shelter for peo ple staying away from home and leave alones food and beverages for people eating away from home or not prepares their admit meals.Lodging sector involves the provision of facilities for overnight or lifelong cartridge clip works to guests. In the view of most people, lodgement is simply a place for people to sleep. For others, lodging is not just a place to sleep but it also provide pastime and recreation facilities. In other words, lodging sector not just refer to hotels but it is also include lodging with entertainment facility such as cruise ships and spa resort, lodging affiliated with recreation like camping, and also lodging with health care such as assisted support centers. Each customer has different needs and requests towards their place to stay. Therefore, hospitality industry offer many types of lodging to satisfy varying customer preferences figure of speech from budget or economy motel to luxury hotels to extensive resorts.On the other hand, food improvement se ctor involves provision of food and beverages for consumption of patrons. Traditionally, the two main categories in foodservice sectors are commercial and noncommercial foodservice establishments. In commercial foodservice establishments, the preparation and service of food is the primary natural action. Meanwhile, the preparation and service of food is routineary activity for noncommercial foodservice establishments. According to Dupre and Lane (1997), the commercial foodservice operations git be further categorized as stand-alone restaurants, foodservice in spite of appearance a lodging property, clubs, and catering. Meanwhile, the noncommercial foodservice operations are broken d hold further to restaurants within other establishment, eatertainment (combine the concept of eating and entertainment), and excogitational establishment.The hospitality industry has its root lie in social life. It is shaped by society and act ups convinces found on it. The societies often change s in what they need and what they want. Therefore, hospitality will continue changes with the changes in societies. Nowadays, go throughers in hospitality firms go beyond the traditional skills in operation. They need to learn the ability to gain and give immobile respond to the changing world. They should also able to predict the changes in advance. For instance, people now are become increasingly concerned about the environmental issue. Be obtain of this, more and more hospitality firms are aware about this and bring forth increasingly encouraging environmental-friendly practices. They generate adopted some changes in aver that they sewer align themselves as environmentally conscious player.In Malaysia, the hospitality industry has make loved a positive increase consistent with the harvest-feast of global hospitality industry in recent years. In our state, the hospitality industry has become the major pillars of national economy. Zain (as cited in Lean and Chor, 2010) has mettlesomelighted that Malaysia which has bawl outed by 16.4 million visitors in year 2005 has been awarded as the second most visited last in Asia in that year. Tourism arrivals to Malaysia have achieved 23.6 million in year 2009 and have contributed to RM 53.4 billion. The arrivals of tourists have increased 7.2% compared to 2008 (Ministry of Tourism Malaysia, 2009). Despite the slower suppuration of Malaysia economy due to global scotch crisis and concerns regarding H1N1 flu, the tourism industry has rebounded quickly. In 2009, there are approximately 2,373 hotels that contribute to a total elbow room supply of 168,844. Besides, Malaysia hotel occupancy rate in 2009 was at 60.9% (Ministry of Tourism Malaysia, 2009). In addition, hotels in this country have been awarded accolades in world award shows. locomote Pacific Kuala Lumpur International Airport Hotel has voted as the Worlds Leading Airport Hotel for second year running in 2009 (World Travel Awards, 2009). Such a wards show Malaysia hospitality industry has world-class standard.This sphere is conducted to provide in cultivateation for public to have more arrest and increase awareness of Malaysia hospitality. Moreover, the hospitality firms in our country can obtain entropy regarding this industry. They can know about the Malaysia hospitality more thoroughly and use the information for planning and management at national and international levels. This is also can be use as referential framework by schools and institutes to educate and train their students.1.2 Problem instructionHospitality industry is the worlds largest and fastest growing industry. It is one of the major contributors to global economic growth. The hospitality related service has become more and more significance in recent years (Tsaur and Lin, 2004 Barros, 2005). Concurrent with the growth of hospitality industry, it has triggered a complementary need for growth in hospitality information. Thus, search has become an pr imary(prenominal) tool for private and public sectors in this industry to gather information on the hospitality.In addition, the hospitality industry is considered as a hawkish global industry (Claver and Pereira, 2006). This industry is unique since it involves people serve people. The performance of this unique operational strategy can have strong influence on the firms, the employee, and the customers. Therefore, the hospitality firms have to in invoke with the commercialises in terms of recent trends and changes. They need to have thorough extrapolateing of hospitality industry. Through a better understanding of hospitality and understand its uniqueness in our country, the hospitality firms are able to know better about the hospitality and can build competitive strategy.Although there are many research in hospitality, there is little research has been conducted on Malaysian hospitality. People always heard about French service, English service, American service, Thai Serv ice and other services. Each service has its own typical. They have their own way to provide the service. Nevertheless, public is not deport about Malaysia hospitality and its characteristics. Malaysia hospitality does not have a class edge. This study aims to explore the way that hospitality firms in this country to provide the service in Malaysia way.1.3 ObjectivesTo define what Malaysia hospitality concept is and investigates how service is provided in Malaysian way.To identify the difference of Malaysia hospitality from other service and thuslyunderstand about strengths and uniqueness of Malaysia hospitality.To propose Malaysia hospitality.1.4 Research QuestionsHow Malaysia hospitality firms provide service in its own way?What are the characteristics of Malaysian hospitality?What is the attractiveness of Malaysia hospitality?CHAPTER 2 LITERATURE REVIEW2.1 Definition of hospitalityThe word hospitality is derived from the Latin hospitis that is origin for hospital and hospice (Barnhart, 1988). The past literatures have shown many meanings of hospitality. Grove (1965) has delineate hospitality as a genial act or practice with sincere and generous get and entertainment of strangers and guests either socially or commercially. Collins Concise English mental lexicon Plus has been sum up the definition of hospitality as almsgiving in welcoming strangers or guests (Hanks, 1989, p. 604) which is considered as the main theme of hospitality from the dictionary definitions from the 1930s to 1999s.Some definition of hospitality is too cosmopolitan to explain it. For instance, hospitality has interpreted by Tideman (1983) as the way that makes the guests feel satisfy and provision of desired quantity and quality of level-headeds and services with satisfactory price for the guests. This definition is too general to explain the definition of hospitality since it is actually can use to define almost any economic activity.Other academic paper has explained definiti on of hospitality in more holistic ways. For instance, Cassee (1983) interpreted hospitality as a harmonious premix of tangible and intangible components food, beverages, beds, ambience and environment, and behaviour of staff (p. xiv). This definition has limited by Cassee and Reuland (1983) to a harmonious mixture of food, beverage, and/or shelter, a animal(prenominal) environment, and the behavior and attitude of people (p. 144). These definitions avoid the problem of conflating definitions of hospitality with the hospitality industry but continue to exhibit the underlying assumption that hospitality is something that is, principally, commercially created for consumption. In the past, hospitality has known as social quantify in western country. When the time passes, hospitality has been explained in a more expound way. When the time passes, hospitality has been explained in a more detail way. According to Gilje (2004), hospitality is a moral imperative, kindliness, civility, and even a legislated duty.2.2 feature of hospitality industryHospitality is a special operational agreement which is considered as people industry. It is a service worry that the hosts provide service to guests who are apart from home (Brotherton, 1999). One of the characteristics of hospitality industry that is stated by Walker (2008) is the operation time of 24 hours a day and 365 days a year for hospitality businesses. Walker (2008) also pointed out that the personnel in hospitality industry have to work longer time when compared to the other industries due to its long hours operation time. The personnel in this industry even need to work during the holiday, while others are sleep together their free time.In operation of hospitality business, many peaks and valleys happen. In a hotel, there are seasonal fluctuations which are months that have spicy, low, or chairman volume of business. In addition, weekly fluctuations also can be seen in hotel. There are differences of bu siness volume between weekdays and weekend. Even in a day, there is actually has peak and valley time. Lots of the customers will patronize the restaurant during the meal period (Lane and Dupre, 1997).The hoteliers as the hospitality providers act as hospitable host and also security officer. It is very punishing to play these two roles due to the unlimited time and public entranceway of a hotel. However, these roles are essential to make the uninvited guests feel welcome and those uninvited guests do not create any security problems. In fact, the hospitality firms make great efforts to bring outstanding customers ecstasy. This not further can lead to loyalty of customers but also profit for the firms (Walker, 2008).In addition, Hepple, Kipps, and Thomson (1990) have mentioned that hospitality consists of both tangible and intangible components. The tangible components are the physical products while intangible components refer to services. Services cannot be touched, seen, tast ed, smelled or heard before being purchased (Lockyer, 2007). Christopher, McDonald, and Wills (1980) have mentioned that products in service industry can produce a series of benefits. However, these benefits cannot be stored for future use. When a hotel does not sell out rooms for certain night, the revenue for those unemployed rooms is lost permanently. Those unoccupied room cannot be stored like other inventory and hence the products provided is considered as perishable (Mullins, 1993).Walker (2008) has explained another characteristic for hospitality industry which is inseparability. Both the host and guests are indispensable in the transaction in hospitality industry (Brotherton, 1999). There is interaction outlast between the hospitality provider and receiver. Lockyer (2007) has recognized that customer-employee contact as part of the product. nodes may dissatisfy with the poor service delivery despite the high quality of food. Customers are also considered as part of produc t. The behaviour of one group of customers such as make loud noise can influence other group.2.3 Components of Hospitality IndustryAccording to Jafari (2003), hospitality comprised of two components which are lodging component and foodservice component.2.3.1 Lodging ComponentLodging sector involves accommodation service which is the provision of facilities for people who stay away from their home (Jones, 2002). According to Chon and Sparrowe (2000), lodging sector is actually can more invent hospitality industry since it offer overnight and even long-term service to customers. In the past, lodging sector just provide the simplest and basic form of accommodation, which has known as bed and breakfast. Over the time, lodging is continually to change to appeal the customers. Nowadays, it is not just a place to sleep, but is increase with washing facilities, comfort facilities, and entertainment facilities (Jones, 2002).2.3.2 Foodservice ComponentJones (2002) has indicated that foodser vice sector is the provision of fodder for those have their meal away from home. Chon and Sparrowe (2000) has highlighted that on-site and commercial foodservices are two elements of foodservice operations. On-site foodservice operations serve people from specific kind of institution which included schools, hospitals, nursing homes, and military. Meanwhile, commercial foodservice operations are different from on-site foodservice since they are open to all customers and compete in free commercialise (Lane and Denise, 1997).2.4 Hospitality as a service businessBusiness in the food service industry is one of the biggest economic contributions towards a country in term of its hospitality system. Service in hospitality could be tangible and intangible where tangible could be the products sell in the market place that can be touch, see, and taste, while intangible could be the unseen service such as food service (Barrows Powers, 2008). It is only can be evaluated by its quality charac teristics. In term of business, service may provide and increase the organizations profit (Friedman, 1970).The goal of business in hospitality industries specially, is to satisfy clients. Barrows and Powers (2008) proposed that business in food service industry must(prenominal) satisfy customer needs for example, they wants least expensive food with enough phase and high quality so that they will loyal towards the organization. Therefore, the hospitality firms must implemented lots of business skills and techniques to maintain old customers and increase new customers (Kozak and Rimmington, 1998).Service in hospitality industry needs to meet customers satisfaction besides making profit and create customer loyalty (Lane and Dupre, 1997). In addition, good image of the hospitality industry would at least depends on the service business provide by the organizations under the hospitality system (Kozak and Rimmington, 1998). Thus, service must be treat as a play process where it will h elp the organization to generate profit, insure high quality, and make every moment count (Lane and Dupre, 1997).2.5 Importance of ServiceGenerally, service play as a significant role in the customer-oriented industry such as hospitality industry. It was argued that the service quality for the hospitality industry was highly competitive in meeting customer satisfaction (Jeong and Oh, 1998). The immenseness of customer service in hospitality is highlighted since that customer ratiocination has a significant implication toward the continuous survival of the business in the market base on the degree of customer satisfaction.Tsang (2011) proposed several factors such as integration, moderation, relationship status, and discipline which impacted on the service performed. It is the responsibilities of the server in performing a quality service and creating a memorable experience for the customer while dining in the food service industry. However, the service quality context might respe ctively divergent for managerial and employee (Ross, 1995).Customer service is the fundamental key factor to success in the hospitality industry despite of keeping the competitive edges. Prompt service is important in meeting the demand of the customer thus creating customers satisfaction. Whereby, it dedicate for expression customer loyalty indirectly and good reputation among the customers. This will so develop good reputation and thus allows spreading of positive word-of-mouth which enables attraction of new patronages. For ensuring the continuous survival in this highly competitive industry, the return of the customers is essential. Instead of that, attentiveness and passionate of the staff and server are also the essence of a good quality service in meeting the customer needs and demands. Mavondo and Nasution (2008) reported that the delivery of customer nurture should be emphasized in assuring customer expectation and need are met. Undeniably, customer satisfaction tends t o be higher whenever the service provided beyond the customers expectation.A good service usually associated with better customer relationship. Establishing good customer relationship is vital particularly to the hospitality industry. Satisfaction toward quality of service received significantly brings in effect on the business performance in which a good service quality will in turns leads to customers repetitive patronage (Su, 2004). intentioning quality service has gradually evolved becoming an important issue in particular in the hospitality industry.The service quality should be continuous and consistence. The first time visit of customer in experiencing the service will definitely affect the decision for their patronage in the future. Nice service experience will lead to retain regular customer as well as create more business. On the other hand, bad service experience cause towards complaints, negative word-of-mouth, lower satisfaction, and reputation loss.CHAPTER 3 METHODO LOGY3.1 Research DesignThis study aims to explore Malaysia hospitality, in which the service provided in Malaysia own way. It is considered as an exploratory study since there is little research previously through with(p) on the Malaysia hospitality (Jennings, 2001). The manner used in this research is qualitative method. Jennings (2001) has suggested that qualitative method is applied in exploratory study because of the flexibility of entropy collection approaches. Furthermore, this type of study is not based on random sample and representation of a studys population. Moreover, qualitative method is used to explore the perspectives, experiences, attitudes, and belief of the respondents (Holloway, 1997).3.2 SubjectThe target population in this study is the industry experts in hospitality industry. They included the managers of hotels and restaurants. 15 managers of four or five star hotels and restaurants are selected. As they have rich friendship and experience in field of ho spitality, they can give their perceptions and opinion towards Malaysia hospitality.3.3 try out SiteThis study will be carried out around Klang Valley. It is comprised of Kuala Lumpur and towns in Selangor. Hence, Klang Valley can be considered as the main city in Malaysia. It is the place that most of the tourists from other countries and even local residents will visit. Moreover, the hospitality industry in Klang Valley has grown extensively. Thus, Klang Valley is chosen as the sampling site.3.4 Sampling procedureThe sampling method used in qualitative research must provide information-rich selective information and serve the design of in-depth understanding (Altinay and Paraskevas, 2008). Thus, judgment sampling is used in this study. Judgment sampling is often used in qualitative investigation. The samples are chosen based on their expertise in the research topic who can provide information required (Sekaran and Bougie, 2009).3.5 Data Collection Method consultation method is c onducted since exploratory research can be studied by oppugning individuals (Sekaran and Bougie, 2009). Interview method provides access to experience and knowledge, and gives an opportunity to explore the issue investigated (Altinay and Paraskevas, 2008). The interview involves data collection through face-to-face interaction. By face-to-face interview, the communicatory cues from the respondents can be noticed. The respondents facial expression and body language are observed for better interpretation of the views (Sekaran and Bougie, 2009).In addition, the interview technique of formless interviews is chosen. In this technique, the interviewer has some broad questions related to the issue studied in the interview guide (Jennings). By unstructured interviews also, rich data and three-ply descriptions of the world being studied can be collected. Open-ended questions are used in this research. Crowther and Lancaster (2008) have noted that open-ended questions are commensurate f or interview method as they can provide deeper insights responses and richer information.3.6 Instrument breedingA list of interview questions needs to be developed. According to Creswell (2003), the data collection of qualitative research should be conducted in the natural background which always refers to the home or office of the respondents. Hence, interview will be conducted in the office of manager in the hotel or restaurant. Due to this, there is a need for the permission of interview.Information from the respondents is recorded by written notes and audio taping during the interview (Creswell, 2003). According to Crowther and Lancaster (2008), the electronic device is used to record the interview in order to record the whole interview for future reference.3.7 Data AnalysisWalsh (2003) has noted that qualitative data summary involves summarize the data and then identify related themes and patterns. Data simplification is the first step in qualitative data analysis since qu alitative data collection collects large number of data. It can be through through coding and categorization (Sekaran and Bougie, 2009). The data collected is categorized and transcript. Moreover, a coding scheme is created to organize concepts (Walsh, 2003).According to Sekaran and Bougie (2009), the second step is data display. In this step, the reduced data is presented in an organized mode. Maps, charts, matrices, graphs, or diagrams can be used to find out the existence pattern. Conclusion draft is the last step in data analysis. Qualitative theory is infer by explaining the observed pattern and relationships, or comparing data against other data.CHAPTER 4 CONCLUSIONAs a conclusion, we hope that rich information can be obtained by interview the manager in hospitality firms during data collection time. By interpreting that information, we can have a clear concept about Malaysia hospitality. Hence, Malaysia hospitality can be defined clearly through this study. This study is use ful for public and hospitality firms in knowing the details and understands about the service provided in Malaysia. When the hospitality firms understand about the Malaysia hospitality, they can provide service in Malaysia way.

Company overview of Tata Motors Limited

Comp whatsoever all oerview of Tata Motors LimitedTata Motors Limited was founded in 1945 and it is the most fortunate gondola manufacturing corporation in India. With Tata Group as its pargonnt association and rattan Tata as its CEO, Tata Motors has sold almost 6 one(a) million million million vehicles nationally since their world-class launch in 1954 (Tata Motors, 2010). In expanding their ancestry internationally, Tata Motors has proven that they are certified as a nonher competitor in political machine industry. Their crossways are commercial message vehicles the likes of buses and trucks, and withal passenger automobiles like Tata Sierra, Tata Estate, Tata India, Tata Nano, Tata Xenon, etc. The ships company taxation was Rs. 27, 055.57 crores in June 2010 (Tata Motors, 2010). In India, Tata has operations in Jamshedpur, Pune, Luc populate, Patnagar, and Dharwad. Tata Motors was listed in refreshing York cable Exchange in 2004, followed by open their operations in UK, southwesterly Korea, and Spain (Tata Motors, 2010).In 2004, Tata Motors joystick venture with Daewoo mercantile Vehicles federation from randomness Korea and form Tata Daewoo. Continue one year later they bought Hispano Carrocera, a Spain company and in any case in 2008, they bought puma and prop bird of passage from Ford, a UK based automobile company (Tata Motors, 2010).Macro Environment psycho digest of the confederationIn analyzing macro milieu of Tata Motors, it is crucial to know the main factor outs that influence the company when move into business to a nonher realm. Political, Economic, Social, and scientific (PEST) analysis is use to dig deeper rough external factors which affect business in macro environment. With 4 perspectives in PEST analysis, it lead ease us to know the host food merchandiseplace circumstance, possible issue, opportunities, decision making, and crucial measuring rods ( policeson, 2006).III.1. Political-LegalPolitical is about the look into of politic and security in the home(prenominal) grocery which influence chance(a) activity, including business. Legal is about the bureaucracy or pattern that should be fulfill when we trust to open a business. This is alike an important factor because without obeying laws, rules, and regulation in the country, it is almost impossible to establish commercialise there. Tata Motors was realised in India, so Tata Motors has to allude on laws, rules, regulation, and political stability in India. unless since Tata Motors has many subsidiaries in many countries, Tata Motors has to obey the host countrys laws excessively. In 2008, Tata Motors bought over background wanderer and panther from Ford Motor. Since then, Tata also has to reverence on the UK laws and regulation (Carty, 2008). Moreover, as the counter relaxation company to be listed in unseasoned York transmission line Exchange, Tata Motors also has to line of work on US politics..Generall y, the political factor in the companys macro environment such as tax policy, government regulations, and laws. It is famous that India is one of the countries which stimulate a complicated bureaucracy, this is one of the obstacles if establishing business there (Sastry, 2005). Political unstable such as wars or conflicts also cause inflation and may affect rock oil bell in one country. High inflation cause the government has to rise up prices, and oil price is the common price to get raised. And it is automatically the elevateder(prenominal) price of oil lead affect the sales of cars (Wardell, et al., 2008).There were whatsoever political conflicts which were faced by Tata Motors youngly. In their official website, stated that rattan palm Tata (Tata Motors CEO) faced difficulties when he wanted to lauch Tata Nano. They receive to deal with about sacking norms and regulations in order to grow the cars (Tata Motors, 2010).As been reported on Bloomberg Businessweek in 20 08, there was conflicts happened between two political parties when Tata Motors wanted to established their manufactory in Singur (India) and some protests from the local farmer. The conflict was about the agricultural domain of a function which Tata used to build the factory. Finally, Tata Motors had to relocate their factory and lost $ coulomb million for relocation make up and over $ 300 million for investment (Banerjee and Guha, 2010). This occupation is to prove that how stable the political situation of the country rooks an important persona in the companys macro environment.III.2. EconomicalThe condition of economic system in recent snip or in the in store(predicate) groundwork influence the evolution and st sendgy of the company. This is very important because Tata Motors is a multinational company. Tata Motors has to guess the skip of economic growth in all atomic number 53 country that they do business with. This factor tells about the economical factor that surrounding the company such as providence fluctuation, monetary and fiscal policy, government spending, unemployment level, pastime rate, supersede rate, Gross Domestic ware (GDP) per capita, etc.In the house servant market, Tata Motors has to pay attention to the economic condition of India. India is a softening country with GDP per capita = $ 3,200 and $ 3.68 trillion national purchasing agent (CIA, 2009). As been touched by the depression of global economic, Indias automobile industry also has to substantiate the consequences. The increase of material price forced Tata Motors to increase its truck price of 3.5% which lead to come drink down in necessitate (Mapso square offia, 2010).In the international market, Tata Motors aims much(prenominal) than to developing countries and middle-class family (Peacock, 2008). Each and every country has their own exchange rate or currency and it keep on changing every time. So for being a multinational company, Tata Motors has to concern in any changing of countries currency, especially US Dollar because Tata Motors also listed in New York Stock Exchange (NYSE, 2010). Inflation is also one of the factors, because it affects the hobby rate for doing investment in a country (Russell, 2006). The increase or decrease of Inflation, leaveing lead to a trim down or higher interest rate. Looking deep to the economical macro environment may dish out Tata Motors in price setting, demand, cost, and decisional making in the company.III.3. Socio-CulturalSocio-cultural is focus on the office of consumer and employee which also affect the strategy. Strategy planning essential(prenominal) follow the outgrowth of educational level and social assessment in order to foresee the influence toward the strategy. nigh of the factors are income distri scarceion, attitude, education, health and wellness, changing life sentence style, and demography.Tata Motors must realize the type of customers in India as its domestic market. The attitude and life style of those customers affect the demand for Tata Motors which also influence its decisional making (Tata Motors, 2009). Indian spate are measured with their spending. They do not want to deprave thing which is not worth it (Sharma, 2010). They are also ordinarily amend and easy access to information. So, Tata Motors has to look at local perspective to market their harvest-festival (Deoras, n. d.).Besides that, in doing business in 26 countries with 26 different cultures in each country, Tata Motors has to under stalling and apply different strategy. For moral Tata Motors usher outnot apply Indian culture to coupled ground when they purchased push down Rover and Jaguar from Ford (a UK based company), because each place has their unique demographic. other example would be When marketing their harvest-home, Tata Motors must know the local demand. India for example, they direct pretty low GDP per capita and most of the people prefer weeny car (Alvares, 2010). So, Tata Nano (one of Tata Motors ingathering, a small car with $2500 price and the world cheapest car) seems blend in into the market (Nussbaum, 2008). In 2009, Tata Motors faced culture difficulty in United States whereby affected the sales of their Jaguar. galore(postnominal) American did not want to steal a famous brand like Jaguar if it is owned by Indian company (Kamath, 2009).In focusing their socio-cultural environment, Tata Motors has Corporate Social office (CSR) team which does social activities, donation, charity and caring the environment (Tata Motors, 2008).III.4. TechnologicalTechnological environment could affect raw material, operation, ingathering, and company serve. The development of technology can accomplish huge opportunity to increase the reaping output in the company. Government intervention through tax policy and laws also play important role in the development of technology. The willingness to do innovation and fetching risk seems to be the important component in this factor. Technological environment such as The impact of changes in technology, radical invention and development, cost and use of technology, and information technology development. This factor could go against a warring advantage to the company.As one of the giant automobile company, Tata Motors has to adapt and develop their intersection point to the technology. The adaptation is not only in the factory machines just now also in the car parts. Tata Motors allocate 2% of their Sales to query Development Department (Tata Motors, 2010). Now, they are working to make environmental matey buses such as hydrogen score notice cell buses and hybrid cars (Doggett, 2010).not only in the real world, but Tata Motors also expand their services through internet. Tata Motors has on Online Booking Services which allow customers who has problem with their car to book date to send their car to their workshop. Now, customer also can purchase Tata Nano through internet, Tata Motors expand their business to e-commerce marketing (Marathe, 2009).III.5. SWOT Analysis of Tata MotorsSWOT Analysis is a tool to analyze situation and condition of a business. It interprets the Strengths, Weaknesses, Opportunities, and Threats of the business. It is jockful to support the decisional making in the company because this analysis shows the current performance of the company and the possible challenges in the future time (Kern, 2001). And these are the SWOT Analysis of Tata Motors which been described from their official websiteIII.5.1. Strength conceptive brand image Good management Done many advanced innovationsIII.5.2. Weaknesses The market design mostly is lower level citizen Advertisement and procession hushed below other companiesIII.5.3. Opportunities The acquisition of Jaguar-Land Rover will give more(prenominal) opportunities to mystify different fruit innovation and aim to opulence market segment. The new Tata Nano as t he world cheapest car will re prove spiles of demands.III.5.4. Threats The tight conflict in automobile industry The high oil price The high price of raw materialsThe International preconditionAs being the largest automobile company in India, Tata Motors knew that they could gain more attain by expanding their market globally. Opening business in some other countries outside their domestic market in India will stimulate benefit to them to be closer to their customers and reach worldwide market.IV.1. Worldwide BranchesTata Motors was established in 1945 however Tata Motors started expanding their business internationally since 1961, they are doing merchandise with over 80 countries in 5 continents. In 1992 Tata Motors reached Europe market by export (Ibef, 2010). They have operations in Venezuela, Senegal, Ghana, Nigeria, Zaire, Tanzania, sulfur Africa, Spain, Italy, United Kingdom, Ukraine, Russia, Chile, Australia, Poland, jokester, Syria, South Arabia, India, Sri Lanka, B hutan, Thailand, Malaysia, and Bangladesh (Tata Motors, 2008).With 23,000 employees worldwide, Tata Motors is the first automobile company to be listed in New York Stock Exchange (NYSE) in 2004. In the comparable year also they bought Daewoo Commercial Vehicles Company, a South Korea truck manufacture. Again Tata Motors expand its wings by purchaseing 21% shares of Hispano Carrocera in 2005, a bus maker from Spain. A year later, they peg venture with Thonburi Automotive Assembly Plant Company from Thailand. Moreover, they also cooperate with Marcopolo, a Brazilian company. Furthermore, in 2008 Tata Motors acquired Jaguar and Land Rover from a UK company, Ford (Tata Motors, 2010).IV.2. Tata Motors Concern toward International BusinessAs one of the crowing player in automobile business, Tata Motors must concern on many important things such as environment, politics, and cultures. There is a big issue right now in Tata Motors which is related to their concern toward environment. A big demand for their low cost car Tata Nano will vex even more pollution because it is affordable and every people will secure it (Shivani, 2010). It is a dependable sign for the company but a bad sign to the earth.To focus into Tata Motors international business, United Kingdom is taken as an example. UK market is favourable for Tata Motors. Some of the advantage that they legitimate by doing business in the UK are Language because India used incline as their official language and so does UK, Tata Motors sees UK market is potential, UK is more hypnotic than another country also because they have lower ledger entry barriers and they have a impregnable network for principal sum which is very important for Tata Motors (Purcell, 2009). Tata Motors has to concern on UK economic condition too, because it is a main market for Jaguar and Land Rover (Subbu, 2003 David, 2008). It is saver for Tata Motors for doing business in UK because the stability of jam Sterling and UK is a goo d place to make Foreign bear Investment (Invest in the UK, 2010).But overall, Tata Motors has to concern on the tight competitiveness in automobile industry in the UK. Huge brands such as Toyota, BMW, Honda, Mercedes-Benz, etc, are also big players in the market. Therefore, Tata Motors must keep the rigid performance by keep developing new product to drag customers. Also keep good relationship with customers to leaven their allegiance (Nemo, 2010).IV.3. internationalisation MethodTata Motors ways to international business such as joint-venture, adjuvant, exporting, franchise, and dealer distribution. Tata Motors used Joint-venture or associate companies to touch Europe market (Ibef, 2010). They associated with Hispano Carrocera in Spain and let Tata Hispano. Tata Hispano produces coach, big buses, large cars, and regional transport (Auto, 2009). In 2009 Tata Motors bought 100% stake of this company (Indian Info Tech, 2010).Subsidiary or acquisition agent when a company is ow ned and controlled by its parent company by and by has been acquired (Lennon, 1999). Tata Motors has 30 subsidiaries and 20 of them are outside of India. They gained almost Rs. 6500 crore revenue from the subsidiaries in 2006 which contributed almost 20% of the group revenue (Tata Sons Ltd, 2007). The most profitable subsidiary is Tata Daewoo Commercial Vehicle (TDCV) in South Korea and Telco Construction Equipment Company (Telcon), cooperate with Hitachi in India (Tata Sons Ltd, 2007).Besides doing joint-venture and subsidiary, Tata Motors also exports some of their products. In 2008, Tata Motors exported more than 33,000 units (Tata Motors, 2009). The exported country is spread in 5 continents and more than 70 countries. In the year 2006, Tata Motors exports reached 11% of its total sales (Onkvisit and Shaw, 2004) they focused in South Africa market in that year and exported almost 33% of the total export (Economic Times, 2006).Tata Motors has franchisees in some countries such a s Kenya, Bangladesh, Senegal, Russia, and Ukraine (Tata Motors, 2010). In addition, they have dealers to mobilise their cars to their customers in Venezuela (Tata Sons Ltd, 2010).IV.4. Problem Faced by Tata MotorsEven though the subject of international business seems fertile, but it has so many obstacles and problems. Tata Motors has to be careful to overcome all the problems. Some of the problems would be Joint venture problem, diminish of stock, economic downturn in America and Europe, and last but not least is the tight global competitiveness of automobile company (Menezes, 2005).First, joint venture problem. When Tata Motors took over Jaguar and Land Rover in 2008, both them was doing badly (The Economist, 2009). Jaguar sales dropped to less than 65,000 cars in 2007 while Land Rover turned form favourable to unfavourable because they world demand is changing to environmental friendly cars while Land Rover hush up producing its spendthrift fuel cars. To overcome these proble ms, Tata Motors made a careful trample by making new car design. Tata Motors came with Jaguar X-type which is better in design and also cheaper. They had a warm response from the market. To entertain it, Tata Motors asked help from Jaguar-Land Rover management to take part in the company. In Land Rover case, Tata built Land Rover LRX which is better in fuel consumption and low emission (Kamath, 2009).Another problem would be the fall stock of Tata Motors in 2008. This problem rose because of the $ 3 billion debt that Tata Motors loaned to buy Jaguar-Land Rover which could cause higher interest cost and lower down earnings (Kamath, 2009). This problem also compounded by the global economy crisis. Many Investors afraid that Tata Motorss stock would fall down. The best declaration to this problem is to increase sales by making lower cost cars which will tempt the customers, also support from Tata Group (its parent company) to help Tata Motors to settee their financial problem fir st (Krishnamoorthy and Koenig, 2008 Moinansari, 2009).Can be said that Tata Motors enter the global market was not in a right time. When it acquired Jaguar-Land Rover from Ford, American and European markets were in a weak point. The best solution in this condition is to keep the good management between Tata Motors and Jaguar-Land Rover, and also good investment in their product line like the in style(p) Tata Nano which is the world cheapest car to reach every corner market (MBA, 2010).Although Tata Motors is a largest automobile company in India, but it only ranked as the 19th largest manufacture in the world (OICA, 2009). So, to face the competitiveness among the companies, Tata Motors must find a way to attract the market, for example New product line, Make a low price car with a good shade, maintain their safety level, etc (Horner, 2009).The Future Growth of BusinessTata Motors performance is also countable in automobile industry. With Tata Group as its parent company, and ra tan Tata as its CEO, Tata Motors is keep growing and expanding their market. In their official website, stated that the company revenue jumped 30.5% from last year and they got Rs. 2,571 crores of profit (Tata Motors, 2010). It is a positive growth from the company.Ansoff Product-Market Matrix was founded by H. Igor Ansoff in 1957. This marketing tool is used to help company to find the best strategy that should they choose to reach the objectives (Harris, 2000 Botten, 2008). outset Ansoff 1957 cited in Campbell and Craig, 2005Output from this Ansoff Matrix is a growing strategies which are detach for every part of business. Igor Ansoff stated that there are 4 strategies in Ansoff Matrix, they are 1). Market perceptivity, 2). Product Development, 3). Market Development, and 4). Diversification (Graham and Allan, 2008).V.1. Market PenetrationThe company is trying to reach the existing market with product that has existed too. This is the safest step because it has lesser risk than any other strategies. Usually, companies use this strategy to attract their competitors customers. Tata Motors used this strategy when they reached UK market by take over Jaguar-Land Rover, Tata Motors did not just concentrate on the new products line that they can produce from the two companies above but instead, Tata Motors still producing Tata Indica in the market (Tata Motors, 2003).V.2. Product DevelopmentThe company offer new product to the present market. This is an important strategy to give fresh breath to the market. The new product will attract more customers from the existing market. The first product development of Tata Motors was Tata Sierra, their first passanger vehicle. Tata Sierra was marketed in 1991. And that was the first step of Tata Motors to develop their product and future strategy (Tata Motors, 2010).Tata Motors also did product development when they started to produce Tata Nano in 2008, rattan cane Tata thought about making the world cheapest car and prod uced it in the domestic market first, India (Tata Motors, 2009). The strategy was to sell affordable car to the people in the same time, expanding their market.Before that, Tata Motors authentic the first mini-truck in India called Tata champion. Tata Ace came to the market in 2005 and in 2 years time, they have sold 96,000 units of Tata Ace (Tata Motors, 2007). By marketing this product, Tata Motors expand their market to mini-truck segment and become market leader (Thakkar, 2010).As been stated in Businessworld website (2010), Tata Motors is planning to put Rs. 10,000 crore for product development. The investment will be used to cover their debt when purchasing Jaguar-Land Rover, to buy new technologies, and any other improvement.V.3. Market DevelopmentUse the present product that belong to the company and offer it to a new market. Many MNE usually use this strategy to reach wider market domestically and internationally. Some examples of market development are expanding to anoth er country, selling the product to a different market segment, and using the product for different function (Graham and Allan, 2008). Tata Motors has developed their market overseas they reached South Korea market in 2004, Spain market in 2005, Thailand market in 2006, UK market in 2008, and many more. Tata Motors sells their existing product like buses, trucks, and cars in those markets. Tata Motors is planning to make their market even wider by opening new companies in developing countries such as Indonesia, Philippines, and Turkey (Tata Motors, 2010).V.4. DiversificationThis is a strategy whereby the company makes a new product and offers it to the new market. Diversification has higher risk than another strategies because the market and the product is new, but in the other side it could bring more profit to the company as it will bring new customers (Graham and Allan, 2008).Tata Motors diversified their product when they entered UK market and took over Jaguar-Land Rover in 2008 (Rao, 2009). It allowed Tata Motors to produced new products line, for example Jaguar X-Type and Land Rover LRX (Kamath, 2009).New VentureTata Motors main target market mostly is developing countries because developing countries seem to have fewer barriers to entry and the market is growing (Wentz, 2007). Tata Motors currently is famous with their Tata Nano, a one-lakh-car which is cheap in price this car is only cost Rs. 100,000 or $ 2,500 (Tata Motors, 2010), this car really fits for developing countries which have lower GDP per capita, and also Tata Motors produces buses and trucks which is suitable for industrial country. It is proven by how they operate business with Thailand, in 2008, they managed to sell 600 big trucks (HT Media, 2009).To expand Tata Motors market, Indonesia will be chosen. Dilip Chenoy, director of Society of Indian elevator car Manufacturers (SIAM) says that Indonesia has a very good market and it is showing an optimistic economy (Reuters, 2009).VI.1. Meth od of Business EntryThe method of business entry that should Tata Motors do is Foreign Direct Investment (FDI). They did the same when they entry Thailand market Tata Motors joint venture with Thornburi Automotive Assembly. And since Indonesia and Thailand has similar market, it will be good if they find a partner in Indonesia and joint venture with them (Bhattacharya, 2010). FDI has a lot of benefits to both sides. It gives advantage to the host country to develop their economy, enhance the technology, more capital and investment, and new product. To the original firm, it gives opportunity to expand the market, easier marketing process, and sure as shooting will bring more profit to the company (Graham and Spaulding, 2005).Indonesia has become target for FDI to so many companies in many countries. Lots of Multi National first step (MNE) planted their business there (Afrida, 2010). Foreign Capital Investment Law No. 1 of 1967, amended by Law No. 11 of 1970 regulates FDI (Expat Ass ociation Jakarta, 2010).VI.2. hall porters Five Forces AnalysisThis theory was found by Michael Porter. It is used to analyze competition between industries. It says that a company should not be only competitor oriented but also has a constitute market vision, Porter explains that our potential competitors are those infant industries, suppliers, customers and buyers, and successor product producers. Therefore we have to know 5 forces that determine the character of one industry, they are The threat of new entrants, Rivalry among existing competitors, The threat of substitute products or services, The bargaining power of buyers, The bargaining power of suppliers (Porter, 1979).Source Porter 1979 cited in Harvard Business Review, 2008This theory will help us to understand the Indonesia market for Tata Motors, by using its 5 factors it will be easier to know the market strength and opportunity. First is The threat of new entrants. This force is usually influenced by barriers to entr y. For example laws and regulation, access to materials, tariff, investment cost, etc. The more barriers to entry, the lower the threat of new entrants. Tata Motors must be aware for this threat if they want to come to Indonesia. Indonesias market for Tata Nano seems good because most of the cities in Indonesia are herd and often jammed so the small and cheap car like Tata Nano will be on demand (Chaudhary, 2009). The new entrants which can give threat for Tata Motors such as Intelligent Geely, a 1,500 car by China Geely Automobile (The Economist, 2008) and also Maruti Ritz by Maruti Suzuki (Autocar, 2010). So, Tata Motors must maintain the loyalty of its customers by always giving the best services and always produce not only cheap but also good quality cars.Second is Rivalry among existing competitors. It is the most common thing in business world. If the business has many competitors, it could give disadvantages to the company because they share the same amount of customers (Roye r, 2005). Tata Motors will have many competitors in Indonesia, such as Honda, Toyota, Mitsubishi, Daihatsu, and many more. Each brand has their own competitive advantage, so Tata Motors have to make sure that they are strong enough to enter the market by keep innovate their cars, keep the low price, and promote more (Landge, 2010).Third is The threat of substitute products or services. This theory investigates how many substitutes that the product has in the market. The existence of substitute product will block up the producer freedom for price setting (Morrison, 2008). The high price of oil sometimes lower down the demand for car, especially nowadays when the oil price has reached $87/barrel (OPEC, 2010). People might substitute it with bicycle, motorcycle, or hybrid car which is popular recently. The strategies that Tata Motors should do are produce good quality cars, innovative products, and keep update with latest technology (Humad, 2005). after part is The bargaining power of buyers. The more products that the company has will bring a more choices to the buyers which will make their position become stronger. Buyers or customers are the main key for company, because they bring sales and profit (Miles, 1995). The target customer for Tata Nano is moderate to low level because it is affordable. The cheap price will bring positive respond from Indonesia market (OConnor, 2008).And the last one is The bargaining power of suppliers. This explains how important a supplier to a company. If lets say there are only a few suppliers in the market, the material will become rare and the bargaining power for the suppliers will be higher (Peng, 2008). Tata Motors Indonesia will still depend on their suppliers in India, so they need to maintain close relationship to the suppliers especially when the demand increases (Sachin, 2010).ConclusionTata Motors, India largest automobile company has proven that they are countable in automobile industry. They are successful to reach domestic market and global market. Now, Tata Motors has reached market in 26 countries worldwide, from South America, Africa, Europe, and some part of Asia. This condition forces them to know every single countrys political, economical, socio-cultural and technological issues and operates the business according to that. The headquarters in Mumbai (India) is responsible to balance and to control how the subsidiaries in many countries operate their production because political changing and conflicts always exists.Tata Motors might face many competitors from the whole world, but to stand still and conquer the competitors is by developing products and keep innovating, this will give competitive advantage to Tata Motors. In these 2-3 years time, Tata Motors will invest to enhance their technology and cover their debts. This is a very good action from Tata Motors to show how integrated and strong they are. However, Tata Motorss step is not over yet, they are still expanding the business t hrough many strategies. Developing new products and covering new market will always be their main purpose. Their vision is outflank in the manner in which we operate, best in the products we deliver, and best in our value system and ethics Ratan Tata.Word Count 4677 linguistic process

Economic Development In The Uae Economics Essay

economical Development In The Uae Economics EssayUAE United Arab Emirates as we waul it has managed to become the regional trading hub of the middle-east along with being an enormously growth business capital. The rustic is likewise referred to as the wealthiest in the Region with the gross domestic product per capital income of round $49500 (forecast 2011). The credit for much of the k immediatelyledge goes to the oil and attack reserves of the country because the UAE has the third largest reserves of the OPEC. Even though the UAE is jolly dependent on oil as it comprises of 20% of the international gross domestic product, even so the diversification measures are constantly taken to shift the miserliness away(predicate) from being super dependent on the Oil prices. This diversified providence of The UAE is definitely a success and a parting model for the tout ensemble the other economies in the GCC to follow. The visual sense of UAE is to become the best country in the arena by 2021. (GCC)UAE VISION 2021The batch of UAE is to be among the best countries on the k nowledge domain by 2021. They aspire to be united in knowledge, prosperity, deal and responsibility. The vision 2021 portrays some of the responsibilities of the UAE g all overning.UAE lead introduce tall quality spheric standard infrastructure, brass go and recreational surroundingss.Emiratis will benefit highly from customer oriented political relation serve offered at the best quality. glorious communication infrastructure will promote business networking and give them a leading edge when they interact with the humanityUAE Government Strategy 2011-2013UAE political science strategy highlights the main priorities of the government in the coming two days covering the period of 2011-2013. The strategy will act as a benchmark for federal entities to formulate and their strategicalal plans. The strategy lays the foundation for the vision of 2021.The strategy is basicall y divided in to 7 general principles raise the role of national entities and in carrying out operative regulations and cohesive policies by booming planning and implementation.Enhance coordination and cooperation among National entities and topical anaesthetic government.Focus altogether on delivering high class, customer oriented and integrated government dish ups. hap in human resource competences and give rise and polish leaders.Encourage in force(p) resource management within the national entities and leverage the dynamic partnerships. impose a culture of brilliance through strategic thinking, uninterrupted mathematical process improvement and excellent resultsEncourage transparency and enhance the accountability mechanisms of the government throughout the federal entities.UAE is the second largest thriftiness in the Arab gulf and it is systematically ranked among the fastest growing economies of the world. During the past 40 years gross domestic product of UAE has gro wn tremendously from $6.5 one million million million in 1971 to a massive amount of money of $1248 billion in 2011.which is roughly a 192x increase (The glorious quaternary decades of the UAE). The per capita GDP of Dubai has increased from 100000 dirhams (1975) to 174000 dirhams in (2011). This outstanding performance has oblige international organizations to rank Dubai among the top emergent markets in the world along with china, Turkey, India, Singapore, Russia, Malaysia and Brazil. The strategy for the diversification of income resources has proved successful. According to local and international survey the steady economic growth has not solely resulted from energy drudgery and exports of oil, as the case with other oil economies, it has resulted from diversifying sources of income and minimization on the conviction of oil. Many orbits such as the pecuniary services, logistics, tourism and other strategic spheres in the economy have not been favored by the government for the furnish of oil. According to juvenile statistics oil contribution tom the GDP has decreased from 70% in 1971 to 29% in 2010. This approach portrays a massive achievement of the country in the area of economics because it portrays broad contribution towards the stability of the national economy. According to the recent forecast by (IMF), the GDP growth of UAE is prone to rise from 3.3% in 2011 to 3.8% in 2012. It is likewise expected that the UAE will maintain a double figure bare(a) of around 10.3% in 2012.Environment has been rated as a potential office of The UAE phylogenesis strategy, UAE has never overlooked the surroundings factor and has always regarded environment protection as a major goal of its sustainable suppuration strategy. The government has addressed harsh desertification and developed water resources for increasing greenery. factory farm has in any case been addressed thoroughly by the government of UAE, and the government has been successful in a chieving goals despite the problem of scar urban center and desertification. The main goal for the development and growth of agriculture sector has been the provision of food to the local economy. This is because the government regards it as being an element of national security. The industrial sector has withal boomed a lot on the 21st century with coronation in this sector amounting to DH101.12 billion in 2010 (IMF). Around 4960 industries have been turn uped and the derive way out of workers employed has increased dramatically. This clearly portrays the vision of federal and local government to modify and develop the Industrial sector.Over the years UAE has managed to establish a modern infrastructure which solidly addresses the needs of public services for citizens and businesses. The infrastructure not only complicates roads, power and bridges but similarly transcends to include, specialized and economic free partitions. The free zones are to a greater extent than 30 in number and are widely spread all over the emirates. The strong estate sector at the Abu Dhabi and Dubai contributed firmly towards the transformation of the country (GCC). The real estate in these states has been referred to as the world renowned real estate front with unseasoned and modified concepts and green building.The tourism sector has withal improved tremendously over the years. It was the drop off high in 2010 with the number of tourists reaching over 10 million. What majorly contributed to the tourism sector has been the strategic location and domestic flow of local and impertinent investments in the sector. The investment size associated with tourism and infrastructure has been 47 billion Dh on modal(a) over the last 10 years. Presently the Dubai Airport is ranked as the fourth best Airport of the world. Conferring to the Travel and tourism battle level of 2011 published by the world economic forum (IMF), the UAE was ranked 30 among the lot of 139 countries and w as ranked first in the middle -east as the about progressive country in tourism and travel with the score of 4.78.The foreign vocation in accounts for 70% of the UAE Gross Domestic Product (GDP). The country has a wide network of trading partners around the world and it enjoys bilateral trade relations all of them. It is forecasted that the foreign trade will grow in excess of 25% after 2011, because of the massive improvements in the economic environment of the UAE (Trade). The UAE is among the largest exporter and importer countries of the world with exports of $235 billion and imports of $170 billion. The exports comprise of 2% of the total world exports whitheras the imports comprise of 1.4% of the total world imports. The massive balance of payment surfeit has benefitted the economy of UAE tremendously. Non-oil exports of the country have increased form Dh 2 billion in 1981 to Dh 27.4 billion in 2010. Dubai standard for 82% of the total nonoil exports of the UAE in 2010. Ab u Dhabi comprised of 14% and Ras-Al-Khaimah comprised of 2.5% of the total nonoil exports in the UAE.The financial services sector (UAE) has in addition witnessed rapid growth in the past few years. An important role was played by the commercial and specialized banks of the UAE in sponsoring economic act and trade in the country. Fifty one banks are currently operating(a) in the country including 23 national banks. Financial markets have alike contributed heavily in mobilization of domestic savings the Abu Dhabi securities market and the Dubai financial market are figured as the main financial markets of the country. Dubai planetary financial market was as well established to become the free zone for the most important financial centers in North Africa and the Middle-East. The government also invested its accumulated surpluses in international institutions such as the Abu Dhabi investment authority, and this contributed heavily to the countrys domestic wealth (Suwaidi).When it comes down to disceptation UAE has achieved record figures in Arab and the international conflict field. UAE regards emulousness as its most strategic direction. For the sake of this the government has established a council known as the Emirates competitiveness Council. The aim of this council is to improve the performance of the key sectors of the country and to ensure the wellbeing and good quality life for its citizens. The economic council of Dubai also setup the Dubai competitiveness center. The aim of this center is to kind Dubai as the utmost competitive city in the world. Abu Dhabi part of economic development has also established a competitive office. All these bodies work together for the national economy which is victorious a lot of strides to include UAE among the best economies of UAE till the year 2021.UAE is now ranked among the top in the competitive group. It is ranked third in the Arabs world and twenty seventh worldwide (Jones). The main competitors of UAE i n the Arab world have been Saudi-Arabian Arabia, Kuwait, Oman and Egypt to say the least. The global competitiveness report has assign high rank to the UAE for the past three years (2011-2012). UAE leads the list of emerging markets that includes India, China, Russia and Brazil.E-Government in the UAE.The federal egovernment project started in the UAE in the year 2001 when the ministry of finance carried out the edirham. It was the first eservice that helped the electronic payment for accessing the federal government services (Interact).Since then, many of the federal and local level entities have launched eservices that have be to be time efficient and cost efficient and the government is also experiencing reduced operational costs and increased efficiency In fling the services.The egovernment strategy was then setup in 2003. IBM helped to conduct an evaluation have for the development of the executive plan. The ministry of finance started an operational plan for e-government in 2004. The instrument of understanding was signed between Etisalat and the government to provide infrastructure for e-government in March 2005. Then finally in june 2008 the TRA passed a resolution to develop a plan for IT in the federal government.Federal E-GOVERNMENT Plan 2012-2014The vision of the federal government of the UAE 2012-2014 plan is to maximize the competitiveness of the UAE by the provision of world class practices in all the areas of E-government.The federal E-Government plan development is dependent upon a strategic framework consisting of three dimensions. The dimensions include E-Services, E-readiness and the ICT environment (Interact)E-Government has been successfully launched in the UAE and is operating at local levels as well. sise out of seven emirates including Abu Dhabi, Sharjah, Dubai, Ajman, Fujairah, and Ras Al Khaimah. All of them have launched their semiofficial portals.E-COMMERCE in the UAEThe E-Commerce is responsible for overseeing the implementat ion of the E-commerce Law and the services of certification in the UAE. It promotes adherence to the regulations and laws which enables safe and secure E-commerce transactions. The ultimate mission and target of E-commerce department is to promote economic development and technological advancement and innovation within the defined limits of a just e-commerce regulatory political science totally in line with the global standards (Aya). It also aims to establish a regulatory and licensing regime that will be responsible for providing optimal development and encourage innovation, growth, ambition and massive investment in the UAE ICT and the ecommerce sector, via implementation of the best global practices and standards maculation responding to the market needs and local consumers.THREATS TO THE UAE ECONOMYUAE economy is not sodding(a) as merely and is lock up not the number one economy of middle-east. It has to strive hard in order to be more competitive in the region. The econom y of UAE is facing heavy competition from Saudi Arabia and Egypt. Saudi Arabia has a lot of oil reserves and many seaports for international trade. The competition is intense. UAE has just managed to pass both Saudi Arabia and Egypt in the UAE (Abdul Basit) but it is still not enough to get a comprehensive lead in the economic standing of the region. Some of the recent panics to the UAE economy has include the recent Euro Crisis in Europe. IMF has issued a warning to the UAE that it could be hit by the worsening situation in Europe after the recent news of Spain seeking a 100 billion euros bail out. Other threats to the UAE economy include the heavy government subsidies by the government in the UAE and its agriculture sector. The obsolescent tax system is ranked as a potential threat as well because it is very different from the tax system around the world. Job cuts in the Expanding UAE economy have also been listed as a potential threat to the economy as a whole (Bundhun). fall Oil reserves in Dubai is also an issue that needs to be taken into account. Although UAE has been pretty successful in shifting from oil to nonoil exports, yet the focus should be on decreasing the oil exports further to create a provision for diminishing oil reserves.The emerging economic world powers in the world include China, India, Turkey, Russia, Brazil to name a few. UAE is a trading partner to china and the importance of trading partners is every high because china is also among the fastest growing emerging economies today. USA is sacking through a a bad patch right now because of its deteriorating economic conditions, but it is a strategic partner of UAE in trade and infrastructure. American goods and services discover a ready market here provided they bring a technological superiority or a new feature. Along with that US is also among the biggest competitor of UAE because of its high quality products with a la mode(p) technology and after sales service. The competition i s intensely high and UAE will have to focus on the quality and after sales service to compete effectively in the future (Interact).CONCLUSIONLooking at all the recent developments and the achievements of UAE, it is true to say that UAE has been acting like a champion in the past decade with constant innovations and increased international trade. The introduction of E government and E commerce has helped the domestic economy lot in everyday life (Aya). The main focus of this system by UAE was to accelerate continuous in the economy. The International standing OF UAE has also improved a lot and it is now ranked 27th in the world and third in the UAE (Jones) which is no less than a milepost for them. The dependency on oil exports has increased and non-oil exports now comprise of more than 70% of the total exports, Dubai being the highest contributor in the non-oil exports sector. This will also prove to be an Asset for UAE in the times of oil crisis. The manufacturing sector of the eco nomy is also booming and is now ranked as the number one manufacturing sector in the UAE. With all these milestones and achievements it is not hard to cogitate that UAE will be among the best economies of the world till 2021.

LOreal International Strategy

LOreal international StrategyThe cosmetic diligence drop be analysed using hall porters five forces framework, by identifying threats of New Entrants, Industry Competitors Suppliers, Substitutes and Buyers. check to Euromonitor International (2008), the threat of sassy entrants into the cosmetic foodstuffplaces is low, considering that major(ip)ity of the trade is already possess by leading companies much(prenominal)(prenominal)(prenominal) as LOreal, Unilever, Proctor and Gamble (Appendix 4). Hence, it would be extremely difficult for a rising firm to establish their score name, over referable to the intensity of aspiration. Since there are few differentials between harvest-festivals, and due to strategical objective of harvest-tide by byplay rivalry is steep. doorkeeper (2004) so it can be argued the American barrier to entry into the application is fairly low, which is a key driver for world(prenominal)isation. However if a crude firm is un equal to com pete there is the possibility of business trial or threat of being subscribed by leading manuf achievementures. Due to the intentness leaders acquiring a variety of cosmetics, pig and sweetie companies, consumers sport the option of an array of substitute increases as a result this tear downs the industry attractiveness and sets a limit on price directs. However in monastic lay to overcome the issues LOreal lead established a prestigious carry bod based on quality and allowing them to soaring price compared to their competitors.This allows the dicker power of buyers to be greater, since there are many sellers in the industry and fewer dominant buyers. The bargaining power of supplier is currently low, since majority of the establish firms do not require dependence on suppliers to go forth cosmetic products. Porter (2004)Therefore in rural area to identify LOreals agency with in the industry a SWOT analysis has been conducted, (Appendix 2).LOreal, How it BeganThe French association LOreal started in 1909, with production of worlds first blur food coloring product. The products were first sell in Parisian whisker beauty shops, using very tight production, gross sales and commercialiseing dodge and by 1912 the products were distributed in other European component parts such as Italy and the Netherlands (LOreal 2010). consort to LOreal (2010), in order first come on on their fool portfolio, the social club had acquired a number of French companies such as Lancome and Garnier, thereby diversifying into other securities industrys, such as upscale perfumes and cosmetics. The learnings had allowed LOreal to maturation their cathode-ray oscilloscope of products among voltaic pile distributors and by 1970 eighty percent of fraternity sales were approach shot from France, (Cardona 2000). Hence the alliance became Frances leading beauty ac confederation, so far the globalist strawman was still little and the c at oncept of expensive Parisian products by consumers roomrate LOreal ability to expand into international merchandises. match to Cardona (2000), LOreal first enrolled the American commercialise in 1954 by forming a licensee with the cosmetics and hair product company Cosmair Inc. Licensing as method of entry into the mart involves LOreal granting rights under contract to intangible property. This had LOreal at began by distributing their products to U.S. beauty salons, however the company armorial bearing was still lessened due to the company spots being managed individually. Hence, without a licence it could have proven difficult for LOreal to enter the market, consider that there product was unfamiliar to the American market. as well as this had allowed LOreal to understand the American market, the buyer behaviour and level of competition. However, fit in to Bartlett and Ghoshal (1989) the dis return of this method is it forces LOreal to depend on the skills, abilities and re writ ers of the licensee as the source of revenue.However it is further argued by Cardona (2000), that LOreal acquired Cosmair Inc in 1994, which en equald the company to further strategise its beguile in the American market and acquire cosmetics company Maybelline in 1996. match to Ono (1995) Maybelline was Americas third largest cosmetics company, sold nearly(prenominal)ly in supermarkets, cosmetic speciality stores and mass market discount stores. LOreal believed by improving the Maybellines products, marketing and grime image would give the products huge international potential. According to Edmondson et al (1999), this gave LOreal entry into the jr. consumer base from the affluent European consumer base, due to its strong American brand image. Maybelline was a cheaper product, carried a wider statistical distribution network and a wider product setting which appealed to a vast number of pagan consumers in America and outside. As a result, LOreals sales from Maybelline outside the United States had grown by 50 percent (Edmondson 1999). The acquisition of these businesses gave LOreal a seventeen percent role of the $2.3 gazillion U.S. cosmetics industry, (Ono 1995).Therefore it can be argued the mode of entry into the market presently developed into strategic acquisitions, in order to pursue the scheme of growth and internationalisation. This method according to Bartlett and Ghoshal (1989), allows LOreal spread risk and contract the level of competition since rivals are ride over. This has also given LOreal greater market share for horizontal integration within the industry and thus allowing them to sharpen higher price for their products. However Bartlett and Ghoshal (1989) further argue this mode of entry can often cause clash in cultures, which is dispute further in this report.According to LOreal (2010), during 1980s the company had purchased stakes in two additional American companies, the cosmetics maker capital of Montana Rubinstein and R alph Lauren Fragrances. Both firms were later on fully acquired in 1988 and 1990. Weil (2006) argues, even though Helena Rubinstein had lost most of their product appeal among American consumers, LOreal believed with effective merchandising and a know re-launch of the brand, the products would be successful in the U.S. Market. This was due to the brand having a costly position in other regions such as Europe and Asia, where Helena Rubinstein products were considered upscale, according to Weil (2006). On the other hand, the acquisition of Ralph Lauren Fragrances was completed in order to strengthen LOreals sumptuousness products division, which possessed a smaller mass market fragrances brand (LOreal 2010). Due to Ralph Lauren established brand image and excellent distribution networks with stores such as Saks Fifth Avenue, it had allowed LOreal to enter a younger consumer market.It had been set that the key acquisition for LOreal in order to increase their global presence was b y the purchase of Kiehls, in 2000. According to Anon (2000), Kiehls was a meaning(a) addition to LOreals luxury product division, offering a diverse melt of specialised products for the high cost segment of the market from perfumes, skin, body and hair condole with. Thus by acquiring Kiehls, LOreals was able to increase their product wave and influence on American society. Considering that LOreal had expensive multi- cardinal pound publicize campaigns, Kiehls did not require such advertising due to exclusivity of the products at the time and its quotation among famous individuals (Anon 2000). This had allowed LOreal to grow, with the company revenue increasing yearly, (LOreal 2009).Therefore the acquisitions of such major U.S. companies allowed LOreal to increase its global presence and enter new emerging markets. Also the company has been able to develop an effective internal organisation, which is split into Consumer Products, original Products and Luxury Products. Due to t hese factors approximately twenty to twenty five percent of the company annual revenue comes from the United States (Cardona 2000).Diversifying into Other MarketsLOreal had acquired the victor hair product company Redken in 1993. This acquisition had allowed LOreal improve the social organisation of their hair product division, due to Redkens elongated distribution networks (LOreal 2010). Hence LOreal had reassessed the company hair care division to focus on the sales to salons and hairdressers. Compared to the European market where luxury hair products were sold in department stores, in the U.S. luxury hair products were primarily sold in hair salons and speciality beauty supply stores. According to Nichol (2010), LOreal was able to increase their revenue, since sales from salons carried a higher profit margin compared to mass market hair products. Hence, LOreals sales from the professional hair care division had provided one third of the companys sales from hair care (LOreal 20 10).According to Morais (2000), in 1998 and 2000, LOreal had made a combined strategic acquisition of the companies Soft Sheen and Carson, in order to enter the ethnic hair care market. Soft sheen was one of the leading American ethnic hair care products and Carson had an eighty two percent share of the U.S ethnic hair care market. Rhea (1997) argues in concomitant the acquisition of Carson had helped LOreal to entire the South African market which was worth an estimated market cling to of one billion dollars, due to the establish presence Carson had already developed.LOreal had precept the entrance into the American market particularly important, since African Americans represent 12.85% of the American population (Appendix 1) and accounted for thirty percent of the total U.S. hair care expenditure, totalling $1.2 billion in 1997 (Morais 2000). The purchase of the companies allowed LOreal to increase their distribution channel further, since majority of sales come from wholesale s such as Costco and beauty shops. According to Morais (2000), the market is fragmented, and in general responsive to word of mouth, hence does not require much advertising or promotions.From the analysis it can be identified that LOreal has followed the Uppsala Model (Appendix 6) in the process of internationalisation. The model illustrates the gradual international expansion of the company by the four portrays. In stage one it was LOreals objective to first build a presence in the American market through a licensee with Cosmair rather than make a large foreign direct investment. This allowed the company to develop market knowledge in order to control the international expansion within the American market. Therefore this method of entry was the most idyllic approach for LOreal, since according to Forsgren (2002) business will enter a new market using the lowest possible resource freight and expand from there on to establish the firm. As a result, LOreal was able to control the l evel of risk and eventually increase resource commitment. In Stage two, LOreal had exported their products through independent representatives in America through regional middlemen. In the third stage, LOreal had made establishment of sales subsidiary through Helena Rubinstein and Ralph Lauren Fragrances. According to Forsgren (2002), in this stage LOreal is able to collect to the highest degree market conditions, leading to a to a greater extent wide market make love and give greater information regarding factors of language, culture and governmental system. In stage four LOreal had established a foreign production facility in the American market.Intensity of Competition for LOrealAs seen on Appendix 4 the level of competition in the cosmetic industry is high however due to LOreal strategic international strategy the company has been able to be the industry leader. This was accomplished due to LOreal developing brands in different market segments and vast distribution channels i n mass market, hair salon products, pharmacies and department stores, (LOreal 2009). Due to the companys operations in different markets, LOreal experiences a high number of challenges from competitors in different markets.According to Drier (2004) in the consumer cosmetics division, the chief(prenominal) competitors for LOreal are Proctor Gamble, Revlon and Unilever. Similar to LOreal, Proctor Gamble had established brands in health, beauty as well as household care. The company receive a major competitor for LOreal due to the companys acquisition of Clairol in 2001, Gillette in 2005 and majority stake in hair care brand Wella in 2003. Hence, Proctor and Gamble was one of the leading cosmetics businesses in the United States, where it had a seventy percent share of the American market from its hair colour brand Clairol (Drier 2004). Hence a key globalisation driver for LOreal was to enter the hair care market, which was accomplished by the acquisition of Redken and rather than mass-market LOreal hard on specialised hair salons.In addition, Unilever had also streamlined their brand portfolio, by developing similar strategies to that of LOreal and Proctor and Gamble. The company had developed a competitive advantage by identifying potential acquisitions. For example, the purchase of American business Chesebrough-Pond, allowed Unilever to make out one of the world leaders in personal care and cosmetics, (Anon 1997).Therefore in order to compete, LOreal has developed their competitive advantage by positioning the business above the drug store cosmetic brands such as Revlon. Their marketing strategy has allowed them to establish a prestigious brand name LOreal has been able to charge high prices.According Trout and Rivkin (2009), in order for companies to charge higher prices, the products should offer prestige, thus consumers will pay a little more for the perceived cling to. Hence, by putting a particular emphasis on their packageing and advertising camp aigns using celebrity models, the company has perceived the brand as elegant among consumers, (LOreal 2010).It can also be argued that LOreals factor of success in the industry is due to being able to develop a comparative advantage over competitors by fashioning a powerful commitment to research and emergence. According to (La Roche-Posay 2005), the company had invested $612 million on research in 2005, which was three percent in de consortment compared to the industry average. As a result LOreal was able to significantly reduce production costs and the purchasing cost of goods for the company fell to 19 percent of sales compared to there rivals Wella, who had cost of twenty five percent, (Morais 2000).Therefore it can be argued that LOreal competitive strategy falls into Porters Differentiation strategy as seen on Appendix 7. This is due to LOreals high research and developing costs and acquisitions of companies such as Soft Sheen which involves producing a range of products that meets the particularized needs of the consumer segments.Thus by creating uniqueness and developing a prestigious brand image, LOreal is able to charge high prices for their products compared to the competitors. According to Porter (2004), this lowers the sensitivity to price of the brand loyal customers and can also act as a, entry barrier for new firms. It is further argue that, this strategy could generate higher revenue than the low cost strategy, due to the development of high barrier to entry and therefore making it difficult for new businesses to enter. However, the higher price is likely to result in a lower volume of sales and thus one strategy will not necessarily mean high profit than the other. It is argued by Kim et al (2005), the competition based strategy of Porter is not sufficient to sustain high business performance and firms should develop new growth opportunities through value innovation. In order for value innovation to be created for both the company and b uyer, the company must discover unused areas of the market and create the new demand. Thereby focus is shifted towards innovation rather than competition.LOreals Organisational StructureIt can be identified from Appendix 3 that LOreal has incorporated a matrix organisational structure. According to Bartlett and Ghoshal (1990), matrix structures tend to be complex and combines two or more organisational responsibilities. For example, the CEO of LOreal is placed at the Head office rigid in France, with the top regional leaders reporting directly to the CEO. The righteousness of the division executives is to manage the brand strategy, global brand sales, profitability and marketing. The contribution Managers (i.e. Asia, U.S.A, Africa and Europe) are responsible for the sales in their region and executing sales strategies. The strategies are developed by brand teams based in their various(prenominal) region and brand teams work mostly with their division executives in order to impl ement effective marketing strategies within the region. Hence, in order to wield an effective level of communication, managers of each country often keep close kinship with the general managers of each brand to identify needs of the specific country. In return, the general mangers provide information on marketing strategies for their region and product development ideas, which then requires co-operation with Research Development.Cogmap, (2009)However, Bartlett and Ghoshal (1990) argue a matrix structure can prove to be unmanageable in the international context, since multiple reporting often leads to confusion and creates overlapping responsibilities. As a result distance is created between language, culture and time.LOreal have invalidate such problems by keeping a strong central solicitude over executives of each division, since it then allows LOreal to identify whether each executive is effectively managing the division and the responsible regional mangers, to ensure there is no redundant work or conflicting interests. Therefore the implementation of the matrix structure has allowed LOreal to save costs, as fewer people are required due to employees sacramental manduction information between different projects. In addition, resource sharing saves time and costs, since those employees engaging in different projects often share related information. Hence it has been identified by Appendix 3, that LOreals executives work on more than one project at a time and keep a regular flow of information about the progress of the company, this has made the company stronger since different departments are working together and not against each other.ethnical Issues for LOrealIt has been identified that LOreal had experienced number of cultural issues, due to their international strategy to become a global brand. When LOreal had decided to enter the American market through licensee with Cosmair in 1954, the company had faced cultural differences. According to Sharma (2010), compared to the European Market, in the American market LOreal was required to have business relationship with local middlemen rather than national distributors in order to distribute product to salons. This had become significantly difficult for the company, since LOreals presence within the U.S. market was limited, such relationships was hard to acquire. In addition, American salons were also unfamiliar with the quality of the products and disagreed on selling such goods.To resolve the issue, LOreals primary goal was now to increase there global presence and was accomplished by strategic international expansion and by taking the company public in 1963. According to Sharma (2010) LOreals strategy was to sell cosmetics through different channels of distribution which in turn affected the macro economic levels of sales. The four types of distribution channels from professional salon hair specialists, beauty advisors, medically trained advisors in pharmacies and self service department stores allowed LOreal to develop their international presence and acquire a competitive advantage over competitors.Political RisksHowever, LOreal had now once faced issues while operating in Europe. After the company had become a publicly traded company in 1963, LOreal was under threat of state control by the French government and feared that the company strategies for international growth would be jeopardised. Hence, LOreal took steps to internationalise the ownership structure, in order to stay the government control by selling fifty percent of LOreal billet to french personal care manufacturer Gesparal and keeping other half(prenominal) of the company publicly traded (Moodie 2004).According to Balassa (1985), the reason for the French government to take ownership was due to threat from international companies. Therefore the French political system considered that it could provide security to the French communities trade by subsidising and directing publicly owned c ompanies. Since, LOreal had become publicly traded in 1963 the company was attached to come under state influence.Using Yips model (Appendix 8), it can be identified one of the key globalisation drivers for LOreal to enter the cosmetics market is growth of global and regional channels. This is a key market driver, since it has allowed the company to develop their distribution channels worldwide. By entering the American market and acquiring ready established brands, LOreal was able to access the acquired companys resources. Another market driver can be identified from Appendix 1, which indicates that America has an aging population, therefore demand for LOreals anti-aging products have increased. These products success were a result of the companys extensive investment in research and development. It has been identified that global acquisitions by consumer product companies also acted as a competitive driver. Since, the existence of various global competitors had indicated that the industry is good for globalisation where global competitors have the cost advantage over local businesses, according to Bartlett and Ghoshal (1989). One of the key reasons for LOreals globalisation development is due to the lowering of trade and investment policies internationally, where GATT (General Agreement of tax and Trade) have made free trade agreements between participating countries. According to Hill (2007), this can also benefit the countries that do not have a large amount of sources to utilise their resources and hence encourage foreign direct investment companies to invest.