Global Logistics Opportunities and Challenges

Global Logistics Opportunities and Challenges Western Europe consists of United Kingdom, Netherlands, Belgium, Luxembourg, France, Germany, Italy, Ireland, Denmark, Norway, Sweden, Finland, Austria, Switzerland, Portugal, Spain, Greece, Malta and microstates of Vatican City, San Marino, Monaco, Andorra and Liechtenstein. Western Europe is considered as major contributor of the European economy. Its determining characteristics are common currency, tax equalization, political homogenization and standards homogenization. Logistically speaking Western European markets offer a great opportunity for exploiting economies of the scale and size in moving goods throughout the Europe opting from a number of transportation modes. European transport networks have grown because of deregulation of transportation; shipments, optimal route and plan scheduling, and the development of national services. The number of long-distance transports has grown significantly with the largest share of freight transports as road transports. The preferred mode s of transportation in the area are roads and rails, closely followed by sea freight. In addition, the Chunnel links the UK with the rest of Europe reducing the transportation cost to a great extent. Source: (DHL Discover Logistics, n.d.-a) The logistics systems in Western Europe are characterized more by political change associated with EU enlargement than by geographic features. In Western Europe transport, storage, packaging and administrative jobs are becoming noticeably more efficient due to uniform regulations. The transport networks are very well developed but average shipping distances have grown principally in the wake of the European Unions enlargement. Outsourcing activities are increasingly affecting logistics in Western Europe because companies no longer consider logistics to be a core business. Instead, larger distribution networks are developing at a rapid pace. Global firms prefer vertical integration and go for direct marketing and distribution in order to reduce inventory and total logistics costs. The changes in the logistics sector have generated challenges of increased efficiency in shipping, packaging and labelling. Here, the reduction of customs processing plays a critical role. In addition, techn ological improvements throughout Europe are almost uniform and not just clustered in individual countries. As a result, order processing, inventory management, warehousing and IT technology are being further centralized. In nutshell, the competitive situation in Western Europe is intense as compared to the rest of Europe. Japan has evolved into an economic powerhouse of Asia and created a highly developed logistics system in spite of challenging geographic conditions. On one hand, such a system is necessary to offset the Japanese islands lack of raw materials. On the other hand, it is the foundation for expanding the positive growth of the export nation. The countrys main manufacturing and therefore, logistics hub lies in a triangle around the cities of Tokyo, Nagoya and Osaka on the island of Honshu. Air transport, in particular, plays an important role here. The most important means of freight transport in Japan are road transports and coastal shipping. Almost ninety percent of the transport is carried by trucks. The role of rail transports is almost non-existent. But this could change in the years ahead. A portion of sea freight has been shifted to air transport in recent years. As a result of this shift, international air transports on trans-Pacific routes have climbed tremendously. Compared with other industrial countries, Japans distribution system is very complex and inefficient leading to high distribution costs. Most aspects of goods distribution Source: (DHL Discover Logistics, n.d.-b) in Japan is tightly regulated by the government. Joint distribution is typical; competitors who make deliveries to the same businesses tend to use joint delivery capacities and trucks. The logistics market in Japan is opening up to international service providers which are already successfully competing against Japanese companies in areas such as storage, distribution and complex contract logistics. The major logistics challenge is traffic congestion in metropolitan areas around the industrial hub. Just-in-time systems require small and frequent shipments to meet customer requirements. The distribution system in Japanese market is characterised by non-store channels, carrying least inventory. It is helpful in introducing new products through mail order, catalogue sales, and tele-shopping. Shared distribution system is common among competitors. Uniform palletization is used to avoid complicacy in operations. China Chinas logistics market is opening up gradually to the outside world. Logistics enterprises are reorganizing and integrating in the competitive environment. It is more and more obvious that state owned, private owned and foreign funded enterprises are surviving and thriving in the competitive markets. With the increasing demand of logistics, the logistics service for enterprises is changing from low value fundamental services to the high value added services. Logistics infrastructure, integrated logistics, traffic and transportation, and delivery services provide huge investment opportunities. However, the related risks must be put into account, and firms should be cautious when choosing investment projects. Source: (DHL Discover Logistics, n.d.-c) In some parts of China, due to advancement in technology, the road network now approaches Western standards. Modern freeways have been built in the Pearl River delta as well as in Shanghai and Beijing. Parts of this network extend far into the countrys interior but the standards and quality of the road drops as we move away from the cities particularly in the areas located away from the metropolitan areas. As a result of the underdeveloped infrastructure outside the metropolitan areas, logistics costs are high in an international context. In comparison to other means of transport, the rail network is almost inappropriate for logistics operations due to poorly built rail lines. For example, a container takes five days to journey by train from Hong Kong to Shanghai (DHL Discover Logistics, n.d.-c). A transport by ship takes about the same amount of time, but is much cheaper. Rail transports play a major role only in the shipment of bulk cargo like coal or iron ore. As a result, rail tr ansports are not particularly attractive to international companies for general logistics operations. The key challenges for the Chinese logistics industry are: Poor infrastructure: insufficient integration of transport networks, information technology (IT), warehousing and distribution facilities. Regulation: exist at different tiers, imposed by national, regional and local authorities and often differ from city to city, hindering the creation of national networks. Bureaucracy and Culture: companies need to build links with political agents at various levels. Moreover, it is difficult to repatriate profits back to home country. Poor training: in logistics sector and the manufacturing and retailing sectors, both at a practical level, i.e., IT, transportation and warehouse as well as at a higher strategic level. Information and communications technology: lack of IT standards and poor systems integration and equipment. At a very basic level, there is no consistent supply of energy. Undeveloped domestic industry: logistics sector is fragmented and dominated by commoditized and low quality transport and warehousing, unable to meet the growing supply chain demands for industrial and commercial enterprises. High transport costs: almost 50% more than Japan, Europe and North America, mainly due to high tolls on roads. Logistics costs (including warehousing, distribution, inventory holding, order processing, etc.) are estimated to be two to three times the normal. Poor warehousing and storage: high losses, damage and deterioration of stock, especially in the perishables sector. Regional imbalance: of goods flows from the developed east of the country to the more undeveloped west leading to higher costs for haulage companies which are then passed on to their clients. Domestic trade barriers: besides lowered trade barriers such as tariffs and quotas for international shipments, there are still problems such as unofficial border tolls from an inland manufacturing location to a port city or vice versa. Commonwealth of Independent States (CIS) and Eastern Europe Four out of fifteen former Soviet Republics belong to CIS are in Europe: Russia, Ukraine, Belarus, and Moldova. Eastern Europe is made up of Poland, Czechoslovakia, Hungary, Romania, Bulgaria, Serbia, Croatia, Slovenia, Bosnia, Macedonia, Albania, and the Baltic states of Lithuania, Latvia, and Estonia. The countries of Eastern Europe occupy a strategically central position on the continent and are located at Western Europes interface with Russia. As a result of the European Unions enlargement to the east, they are increasingly serving as a bridge. As a result, many manufacturing companies have moved their production facilities to Eastern Europe for cost reasons. Logistics service providers entered either following these companies or to exploit the new markets by carrying out mergers or acquisitions. The opportunities for the companies interested in entering these markets vary significantly from country to country. Although, these countries have relatively well developed transport ne tworks but they do not meet western European standards. Despite the rapid growth of road transports, railroads remain the dominant means of transport. The Eastern European logistics market is characterized by wide regional differences. While the Czech Republic, Slovakia, Slovenia, Hungary and Poland have made major strides, Romania, Bulgaria and Croatia are trailing far behind. The infrastructure is in even worse shape farther to the east. The road-based freight transports have limited ability to meet the demands of European industry in a cost effective manner. The causes of these limitations include traffic jams, the limited potential for expanding network capacity, rising energy costs and growing intermodal competition from railways. Eastern European harbours, particularly the major sea ports in Poland, perform a significant amount of trans-shipping and are being increasingly expanded. The European Unions enlargement and the increasing transport volumes have resulted in intensified storage and distribution activities in the countries of Central and Eastern Europe. One of the major challenges is to overcome the barriers that exist between Eastern and Western Europe, including the transport infrastructure. Foreign Market Entry Strategies Foreign market entry strategies are mainly categorized into: Indirect exporting Direct exporting Manufacturing strategies Cooperative strategies Indirect Exporting Piggybacking An established international distribution network of one manufacturer may be used to carry the products of a second company without such a network. The second manufacturer is said to be piggybacking on the first in these cases. The first company has an established reputation and contacts in an international environment. It handles the logistics and administration costs of exporting for the second manufacturer. Piggybacking can offer many advantages to firms; such as cheaper and quick access to new markets, an established knowledge base of the foreign markets and economies of scale with regards to administration, shipping, marketing and distribution. Piggybacking may lead to unsatisfactory marketing arrangements such as lack of strategic fit, providing technical support, and after sales services for buyers potentially leading to disagreement. This method of exporting too is not ideal for building a long-term foreign market presence. Trading Companies A trading company trades on its own account. It performs many functions as; buying and selling as a merchant, handling goods on consignment, or it may act as a commission house for some buyers. Trading companies match sellers with buyers and manage all the supportive functions such as export arrangements, paperwork, transportation, and legislative requirements. Firms initially choose this mode, because of TCs extensive contacts, experience, operations and long-term commercial relationships in many different trading regions in the world. After some experience in the international market, exporting firms want more control over decision making, so TCs are not their long-term partners. Export Management Companies Export Management Companies are specialist companies that act as export department for a number of companies. They provide companies with access to foreign buyers, take orders from those foreign buyers, purchase finished products, and handle the transporting and distribution of the goods in the foreign market. Their core competency is in export logistics and deals with the necessary documentation and extensive knowledge of purchasing practices and government regulations in the foreign markets. This is a less risky and fast penetration strategy suitable for new entrants in the international market in the short-term. Disadvantages of EMCs include; export strategy conflict among both parties, lack of manufacturers control over foreign market decisions and market knowledge. Due to expertise in exporting, the EMC has complete control over all foreign market decisions. In addition, EMC may even export products that are in direct competition with each other. Therefore, manufacturers need to devote resources to monitoring the performance of an EMC and invest in managing the business relationship. As the manufacturers revenue from exporting increases, moving away from the EMC or eliminating EMCs from the business may prove harmful due to lack of foreign buyer contacts or market knowledge or because of contractual agreements. Domestic Purchasing Domestic purchasing is a method of market entry which involves the least company involvement. This export method often involves an unsolicited purchase request from a foreign commercial buyer. The company may not even have considered the export potential of their products until approached from the foreign buyer. In general, companies can use this method to sell off excess stock with the least inconvenience. It generates a relatively low level of revenue and the company is completely dependent on the foreign buyer. The company gains limited knowledge of the international markets, as it has no direct contact with them. The foreign buyer often picks up the goods at the factory gates and proceeds to transport the goods, market them, and distribute them in one or more overseas market. Direct Exporting Distributors Export distributors differ from agents in that they take ownership and responsibility for the goods. Distributors usually take limited rights for the sales and servicing of a particular territory where they represent the manufacturer in all respects. The capital investment can be particularly high for a firm exporting goods requiring specialist handling. Due to this large investment both parties undertake to maintain a long-term relationship. Agents Export agents are usually individuals or firms operating in a foreign market, contracted by the firm, and paid a commission to obtain orders for the product. After entering into a contractual agreement, sales targets are usually agreed with agents by the firms. Agents are usually contracted to carry non-direct competing products therefore providing a lower exposure to risk. Although agents are the cheapest and quickest form of market entry, the long-term profitability is moderate to low with a short payback period. Agents can be beneficial to the company in that they have local market knowledge, established relationships and provide adequate feedback regarding further product or market development strategies. Agents do not owner goods which limits their motivation to improve performance. They can take the form of brokers, manufacturers representatives, managing agents and compradors performing specific functions (Cateora Graham, 2002). Direct Marketing Using database marketing tools such as mail order, telemarketing, media marketing, direct mail and the internet can be a useful technique to expand a firms customer base abroad. Usually, this market entry method is very useful when there are high barriers to entry exist in a foreign market or where markets have insufficient or underdeveloped distribution systems. Success using direct marketing can only be obtained if the standard product/service is customized to meet the personal needs of the target market in different markets. Issues of product promotion and privacy needed to be addressed when engaging in telemarketing, direct mail or Internet commerce. Franchising In franchising, the firm grants the legal right to use branding, trademarks and products, and transfers the method of operation to a third party (the franchisee) in return for a franchise fee. Franchising is less risky and less costly due to the nature of the agreement. The franchisee provides the local market knowledge, capital, time and resources needed to develop the franchise. The two types of franchise agreement used by franchising firms are that of a master franchise and licensing. A master franchise often operates a multi-unit franchising agreement or it may take the form of a trading company whereas in licensing the franchiser uses the property, trademark and intellectual rights for a royalty or fee. Management Contracts Management contracts usually involve selling the skills, expertise and knowledge of firms in an international context. The contracts undertaken are usually those for installing management operating and control systems and the training of local staff to take over when the contractors are finished (Doole Lowe, 2001). Manufacturing Strategies Own Subsidiary This form of market entry requires the maximum commitment in terms of management and resources and offers the fullest means of participating in a market. Before investing huge capital, the firm must evaluate the pros and cons of the business as the cost of withdrawing from the market would be significant. Although sole ownership provides high level of control, the firm may not only incur the costs if withdrawal is eminent but also the companys reputation can be damaged both in the foreign and domestic market. The advantage is of avoiding communication and conflict of interest problems which may occur through other methods like acquisitions and joint ventures. Acquisition Acquisition occurs where an organization develops its resources and competences by taking over another organization. It is a faster entry strategy in new product or market areas. A firm may acquire cost efficiencies, immediate access to a trained labour force, recognized brands, existing customer and supplier contacts, an immediate source of revenue and an established distribution network or otherwise as a result of acquisition. In return, the acquiring company may have to make certain sacrifices. Assembly Assembly involves establishing plants in foreign markets simply to assemble components manufactured in the domestic market by the firm. This method of market entry is attractive for certain companies when they see that the importation of components is subject to lower tariff barriers than assembled goods which eventually decrease their costs. Moreover, it can be more advantageous if the finished product is large and transportation costs are high. The domestic plant in addition, can focus on development and production skills and investment, hence, profiting from economies of scale. Assembly firms also take advantage of lower wage costs and government incentives. Cooperative Strategies Joint Ventures Joint venture (JV) is a market entry option in which the exporter and a domestic company in the target country join together to form a new incorporated company. Both parties provide equity and resources to the JV and share in the management, profits and losses. The JV should be limited to the life of a particular project. This option is popular in countries where there are restrictions on foreign ownership, e.g. China. Its advantages include; acquisition of competencies or skills not available in-house, risk sharing of a large project with other firms, faster market entry/penetration and payback, and avoiding technical trade barriers. Its disadvantages are; divided management control, difficult to recover capital invested, disagreement on new export markets, and different views of partners on expected benefits. Strategic Alliances Strategic alliances are a wide range of cooperative partnerships and joint ventures which unite to follow a set of important, agreed goals while in some way remaining independent subsequent to the formation of an alliance. The partners share both the benefits of the alliance and control over the performance of assigned tasks during the life of the alliance. The partners contribute on a regular basis in one or more key strategic areas, for example, technology or products. Strategic alliances are usually formed in three areas technology, manufacturing and marketing. The main reason behind strategic alliances is competition. Other reasons include; the reduction of risk, the attainment of economies of scale and complementary assets such as a brand name and government procurement. Firms, which employ strategic alliances, have the advantage of simultaneously penetrating several of their key markets. Specific Recommendations The decision of, which foreign market to enter, depends on firms external as well as internal factors and foreign countrys market conditions. The strategy to be adopted should be based on firms short and long-term corporate objectives. Initially, the firm should choose among direct or indirect exporting leading to cooperative and then manufacturing strategies. If exporting is a long-term goal of the firm, then indirect exporting methods may not prove to be the wisest strategic choice. In long-run, the firm has to trade off among costs and control over the decision making. Customer Service When a firm becomes extensively involved in international business, logistics is seen as a critical part of the strategic planning process and a deterministic factor of customer service level. The complexity of the international business environment, including different business customs, inadequate/inappropriate transportation infrastructure, restrictive regulatory frameworks, and different levels of logistics services, presents barriers that make operations in foreign countries far more complicated and less controllable than in domestic markets. Generally, existing or emerging barriers result in longer order cycle times, higher logistics costs, and greater customer dissatisfaction. The customer service level chosen for use internationally is based on expectations encountered in each market. These expectations are dependent on past performance, product desirability; customer sophistication, and the competitive status of the firm and industry. Therefore, additional logistics costs are required to support operations which may be so important that, if not handled properly, they may offset any potential cost savings from using inexpensive labor and other resources in foreign countries. The need for cost-service trade-off analysis becomes inevitable for the managers in such an indifferent situation. Under these circumstances, logistics barriers obviously make it difficult for firms to gain a competitive advantage from their international operations. Table 1 summarizes the firms major external factors affecting its logistic performance (and therefore, customer service) at domestic and global level. It also depicts how difficult it becomes for the firms to provide same level of customer service at international level. Another major external (and therefore, uncontrollable) factor which has made international logistics more vulnerable and complex is security risks after 9/11 terrorist attacks. As a result security clearance procedures have lengthened and transit times of shipments have extended. Insurance rates for cross-border shipments have also climbed. Some factors internal (and therefore, controllable) to the firm, for example, centralized logistics activities, do not make the customer service work best, as it can be under local control in foreign market. Financial aspects such as working capital, inventory, capital investments in buildings and equipments, and accommodation of merchandise are also difficult to manage in the cas e of international operations. The managerial capability of logistics management in deciding optimal cost-service mix plays a major role in determining the customer level. In order to establish an efficient logistics system to support international operations, especially customer service, a firm should be able to evaluate when and where logistics barriers may disrupt materials flows in the distribution channel. The identification of barriers is important in designing an effective international operations network. A better understanding of those barriers enables a firm to take actions to reduce or avoid them so that it can improve its competitive position in international markets. The firms entering in the international market should obtain as much as possible information about the business conditions and operating expenses of potential markets. As the customer service levels and hence the cost incurred, vary between countries, the firm must examine the service requirements of customers in each foreign market. A flexible and responsive global customer service strategy is based on inventory policy and control procedures, packaging and containerization, sourcing raw materials, managing export shipments and terms of trade. International logistics is characterized by inventory points at more levels between suppliers and customers making it much complicated than at domestic level, leading to longer transportation times. Depending on the length of transit time and more inventory volume needed to cover the resultant delays, the firm can develop inventory policies and control procedures most appropriate for each market area. Another component of customer service is the products physical condition (must be in right condition). Packaging and containerization are important for product handling, climate effects, potential pilferage, communication and language differences, freight rates, and customs duties when a product moves across the borders. The quality of a product is determined by the quality of its raw materials. International sourcing may enable a firm to optimize products quality at lowest possible cost. The services of many facilitator organizations involved in international logistics activities are continuously utilized by almost all of the firms operating internationally. These organizations include export distributors, customs-house brokers, international freight forwarders, trading companies, and non-vessel-operating common carriers (NVOCC). These organizations are highly professionalized in performing their functions and operate at economies of the scale. A firm involved in exporting for the first time would likely utilize the services of a facilitator organization. There are a number of shipment modes/terms, each one of them having its own pros and cons. These terms of trade/shipment used in international logistics are Ex-Works, FCA, FAS, FOB, CFR, CIF, CPT, CIP, DAF, DES, DEQ, DDU and DDP. Terms of shipment have a major impact on a firms logistics performance as each of them yields a different cost of shipment and value to the customer. Finally, integrated logistics management (ILM) is the ultimate strategy to deal with the international customers efficiently. ILM integrates all the logistics activities; facility location and network design, information management, transportation management, inventory management, warehousing management, material handling, and packaging into a single activity or process of logistics directed towards servicing the customer effectively and at the lowest total cost of all the functional activities taken together. The methodology of integrated logistics conforms to the logistics objectives; getting the right item to the right customer, in the right quantity, in the right condition, at the right place, at the right time and at the right cost. Customer service level of a firm is the representation of managerial capability of its management team. A firms executive management is likely to use any or a combination of some or all of the above mentioned customer service strategies to deliver value to its customers. The combination may differ for different countries/markets at different times. Answer the below given questions : Explain the role each of the following exporting organizations has in global logistics: (a) export distributor, (b) customs house broker, (c) international freight forwarder, (d) trading company, and (e) NVOCC. Export Distributor: An export distributor deals with the manufacturer on a continuous basis and is authorized and granted an exclusive right to represent the manufacturer and to sell in some or all foreign markets. It pays for goods in its domestic transaction with the manufacturer and handles all financial risks in the foreign sale. An export distributors functions include; managing distribution channel and related marketing activities, handling customer clearance, managing inventories and warehousing facilities, collecting market information, breaking bulk, managing credit policies and providing after-sale services. Customs House Broker: A customs house broker (CHB) is an agent who performs the clearing of goods through customs barriers for importers and exporters (usually businesses). Agent performs different functions/duties, for example, preparation of documents, the calculation (and usually the payment) of taxes, duties and excises on behalf of the client, and facilitating communication between the importer/exporter and governmental authorities etc. CBH also prepares and submits documentation to government agencies such as drug department, food safety department and many others to obtain the clearance. CBH is usually expected to be well familiar with the tariff schedules, duty rates for imported items, and the state regulations i.e. products country of origin. International Freight Forwarder: An international freight forwarder is a person or company that organizes cross-border shipments for individuals or other companies and may also act as a carrier. A freight forwarder is usually acts as an agent instead of a carrier, in other words, as a third-party (non-asset-based) logistics provider that dispatches shipments via asset-based carriers. They have the expertise that allows them to prepare and process the documentation and perform related activities including commercial invoice, shippers export declaration, bill of lading and other documents required by the carrier or country of export, import, or transshipment pertaining to international shipments. Trading Company: A trading company trades on its own account. It performs many functions. It may buy and sell as a merchant. It may handle goods on consignment, or it may act as a commission house for some buyers. Trading companies match sellers with buyers and manage all the supportive functions such as export arrangements, paperwork, transportation, and legislative requirements. NVOCC: Non-vessel Operating Common Carrier (NVOCC) is a sh

Case study in marketing Essay

By the end of your reading, you should be able to answer the following questions: 1. What do you understand by the term Corporate Social Responsibility (CSR)? 2. Explain two actions that Amway and its IBOs are currently taking that involve CSR. 3. Analyse the key ingredients in Amway’s CSR strategy. Show how the strategy is designed to translate the vision into practical steps on the ground. 4. Recommend ways in which Amway could enhance and develop its impact on making every child matter. Introduction Corporate Social Responsibility (CSR) means businesses and organisations working responsibly and contributing positively to the communities they operate in. It involves working with employees, their families, the local community and society at large to improve their quality of life. Companies that operate in a socially responsible way strengthen their reputations. In business, reputation is everything. It determines the extent to which customers want to buy from you, partners are willing to work with you and your standing in the community. The company  Amway is one of the world’s largest direct sales organisations with over 3 million Independent Business Owners (IBOs) in over 80 markets and territories worldwide. It is a family-owned business with a strong emphasis on family values. Its IBOs are often couples. Many of these are raising families. They therefore have a strong bond with children. These families are more than happy to partner with Amway, who, as part of its Corporate Social Responsibility strategy, works with UNICEF, the United Nations Children’s Fund. As a family company, Amway is committed to playing a part in improving the lives of children in need across the globe. In this way, the company is able to show its commitment to the support of global causes. Amway defines a global cause as ‘a social issue affecting many people around the world engaged in a struggle or plight that warrants a charitable  response’. This case study shows how Amway is a business that does more than provide customers with good quality products. It shows the practical realities of Amway’s global commitment and how it plays a key role in the communities in which it operates. Growth and responsibility An understanding of how Amway operates as an organisation gives a clearer picture of the contribution it can make to help children in need across the globe. Amway’s vision is to help people live better lives. It does this every day by providing a low-cost low-risk business opportunity based on selling qualityproducts. What does Amway do? Amway distributes a range of branded products. These products are sold to IBOs worldwide. The IBOs are Amway’s links with consumers and the communities in which they operate. The IBOs are self-employed and are highly motivated. They work within the guidelines of Amway’s Rules of Conduct and Code of Ethics, which are about being honest and responsible in trading. IBOs sell to people that they know or meet. They can introduce others to the Amway business. Typical products that IBOs sell include: personal care – fragrances, body care skin care and cosmetics durables such as cookware and water treatment systems nutrition and wellness products such as food supplements, food and drinks. IBOs play a key part in helping Amway to deliver its Global Cause Programme. In order to give many of the world’s children a chance to live a better life, Amway launched the global One by One campaign for children in 2003. The One by One programme: helps Amway to bring its vision to life declares what the company stands for builds trust and respect in Amway brands establishes Corporate Social Responsibility at a high level. Amway encourages staff and IBOs to support its One by One campaign for children. Since 2001, Amway Europe has been an official partner of UNICEF and has been able to contribute over â‚ ¬2 million (about  £1.4 million). The focus is on supporting  the worldwide ‘Immunisation Plus’ programme. This involves, for example, providing measles vaccines to children across the globe. The ‘Plus’ is about using the vehicle of immunisation to deliver other life-saving services for children. It is about making health systems stronger and promoting activities that help communities and families to improve child-care practices. For example the ‘Plus’ could include providing vitamin A supplements in countries where there is vitamin A deficiency. Since 2001, Amway and its IBOs across Europe have been supporting UNICEF’s child survival programme. The need is great. One out of ten children in Kenya does not live to see its fifth birthday, largely through preventable diseases. Malaria is the biggest killer with 93 deaths per day. Only 58% of children under two are fully immunised. The work of the One by One programme is illustrated by a field trip undertaken by Amway IBOs to Kenya. The IBOs travelled to Kilifi in 2006 to meet children and to find out what the problems are in various communities. They act as champions spreading the message throughout their groups. In Kilifi, the focus is on trying to reach the most vulnerable children and pregnant mothers. The aim is to increase immunisation from 40% to 70%. Other elements of the programme involve seeking to prevent the transmission of HIV/AIDS to infants. As the Amway organisation grows and prospers, it is able through CSR actions to help communities to grow and prosper too. Developing a strategy A strategy is an organisational plan. Implementing a strategy involves putting that plan into action. In other words a strategy shows how a business will achieve its goals. The strategy thus enables an organisation to turn its values into action. Values are what a company stands for. An important value for Amway is being a caring company. Amway believes in demonstrating this caring approach and this is why it has partnered with UNICEF. All Directors design strategies for the whole of an organisation. Effective strategies involve discussion and communication with others. The views of IBOs are influential in creating strategies for Amway. Amway’s strategies for corporate social responsibility are cascaded through the organisation as shown below. Amway’s Global Cause strategy involves creating responsible plans that make a difference. However, the strategy is flexible. In shaping the strategy, research was carried out to find out which global causes IBOs support. The results showed that many favoured a cause that helped children. There was a clear fit between Amway’s aims to help children and UNICEF’s ‘Immunisation Plus’ programme for children. Objectives From the outset, Amway set out some clear objectives for its strategy. These were to: build loyalty and pride among IBOs and employees enhance Amway’s reputation as a caring organisation  make a real difference to human lives. Child mortality is particularly high in developing countries because of infectious diseases. Many children could still be alive if they had been vaccinated. For under  £12 a child can be vaccinated against these diseases and has a fighting chance to reach adulthood. UNICEF’s world child ‘Immunisation Plus’ programme is a fitting focus for the activities of Amway UK and its IBOs. The UK initiative is part of a European-wide fundraising campaign for children. It recognises the importance of building good working relationships with UNICEF in each market in order to launch fundraising programmes through Amway’s IBOs and their customers. The objective is to raise â‚ ¬500,000 (about  £350,000) every year until 2010 across Amway Europe. In 2005 Amway UK’s partnership was deepened through becoming an official Corporate Partner of UNICEF UK. The Corporate Partnership is a closer longer-term relationship which benefits both partners. Working together the two parties raise money for UNICEF. Identifying stakeholders  Amway’s Corporate Social Responsibility strategy has been developed with the interests of the followingstakeholders in mind: Communicating the strategy  Good, clear communication is essential in making sure that the CSR strategy relates directly to the company business objectives. Communication also helps in putting the strategy into practice. A number of communications media are used: 1. Face-to-face communication: Regular meetings take place between UNICEF, Amway and its IBOs. Through meetings with UNICEF staff, Amway is able to discuss the vision and objectives. It then passes the message on by meeting with IBOs. In 2005 the two organisations arranged a joint briefing day for  IBO Leaders. They were able to hear firsthand experiences from UNICEF staff about their roles and UNICEF’s work as well as where the money goes. 2. Printed material: Amway produces a monthly magazine for all IBOs called Amagram. 3. Public relations materials are also important, particularly at launch events for the initiative (e.g. in Milton Keynes in 2006). 4. Email communication: Email is very important in the company – it plays a significant part in keeping IBOs up-to-date. 5. Online activities: There is a micro-site dedicated to the Amway UK/UNICEF partnership on the UNICEF UK website. Fundraising Amway Europe provides support for fundraising to the extent of â‚ ¬500,000 (about  £350,000) per year through selling items such as: greetings cards multi-cultural gifts and cards stationery and wrapping paper toys for children. However, Amway UK’s support goes well beyond these activities. In addition, it involves staff fundraising events and raffles organised by the IBOs. UNICEF attends IBO major events (usually supported by 1,000 or more IBOs) where requested. A UNICEF stand outlines the work with speakers, literature and merchandise. Conclusion Amway is a family business with family values. Its IBOs are people who want to make a difference to the communities in which they operate and to the wider world community. This is Corporate Social Responsibility (CSR) in action. The clue to Amway’s success is the careful planning of its strategy and its involvement with manystakeholders in getting the strategy right. Of course, it is early days in the latest chapter of a strong relationship between Amway and UNICEF. Evaluation is taking place to measure the success of the initiative in terms of meeting fundraising goals. Customer research is carried out to test customers‘ views on the relationship and to find out how aware the general public is about what Amway is doing in the field of CSR. Sample study questions 1. What do you understand by the term Corporate Social Responsibility (CSR)? 2. Explain two actions that Amway and its IBOs are currently taking that involve CSR. 3. Analyse the key ingredients in Amway’s CSR strategy. Show how the strategy is designed to translate the vision into practical steps on the ground. 4. Recommend ways in which Amway could enhance and develop its impact on making every child matter.

Taiwan Living Culture

There is an issue comes up when Taiwan talks about culture conservation, which is the conflict between social development and preservation of military dependents’ villages. Taiwan is a place that lived by Holo, Hakka and indigenous peoples. Besides indigenous people, there are many mainlanders who came from mainland China. Those mainlanders came with Kuomintang government for political affairs that happened in China since 1940s. Hence, compare to indigenous people, military dependents’ villages, the places mainlanders were living, is actually a minor culture in Taiwan.Therefore, there are some difficulties for the culture-based workshops when they are trying to protect military dependents’ villages. There is lesser population who insist to protect their culture. Moreover, a number of residents were basically moved out from the villages. In this issue, we could study the issue with our cultural communication knowledge, especially identify the culture element that the issue brought by. Refer to the article title, preserving military dependents’ villages, the article is discussing about how the workshops trying to preserve military dependents’ villages and what are the concerns they are having.Since military dependents’ villages are minority culture in Taiwan, as well as they are not Taiwan’s local culture, we can understand how difficult the workshops’ tasks are. Hence, preserving military dependents’ villages is an issue. This issue was discussed recently. It was being studied since 1990s. We noticed that it was a trend of cultural discussion, which has no certainty beginning and ending. It is generally happened in Taiwan. Those active workshops were operating much in Kaohsiung and New Taipei City. There are some people who involved in this issue.First of all, there is a workshop called Association of Mainlander Taiwanese (AMT). It is formed in 2004. Yang Tsung-rong is one of board of directors of AM T. He is an Associate Professor at National Taiwan Normal University in Taipei too. He said that the workshop recently focuses on conserving the unique villages. The second involved party is Ministry of National Defense (MND). The land of dependents’ villages belongs to MND. There is a law named Act for Rebuilding Old Quarters. It assures MND to have right of demolish the village after the military dependents moved out.They will rebuild new apartments for military dependents. Sometimes, they sold the apartments in accordance with National Property Act to fund the construction of apartments. The third party is Lin Fung-ching, who is a deputy chief executive of Kaohsiung Military Dependents’ Villages Culture Development Association. The workshop was formed in 2007 and operates the Kaohsiung Museum of Military Dependents’ Villages. She agreed that less-is-more strategy which means preserving a limited number of the housing areas is sufficient.She understood the gov ernment’s concern since preserving all 888 villages is a challenge of local development. Nevertheless, she stated that preserving old buildings in a village is not enough. The fourth person is Wang He-ping, who is another chief executive of the Kaohsiung workshop. He supports the preservation idea and aims to preserve Mingde New Village, Zuoying District as a â€Å"living museum† that would see villagers continue to live in the village. Visitors can move into vacant houses to feel their day life culture. He enhanced that preserving the villages is promoting â€Å"green belt† concept.It would add to Kaohsiung’s tourism resources. He said that dependents’ villages are a minority culture, but they are not a minor part of Taiwan’s culture. Wang Ji-xin is the fifth person who involved in this issue. He is a founding board member of the New Taipei City Military Dependents’ Villages Culture Association which formed by year 2007. The associat ion is to preserve approximately 60 houses of Sanchong First Village. He is a former resident of the village too. He mentioned that bulldozers will also remove an irretrievable piece of Taiwan’s pluralistic culture.Sanchong First Village’s residents had move out and into purpose-built apartment buildings in New Taipei City by 2006. They could only make oral histories instead of make a living museum as Mingde does. Basically, Taiwan is a place that highly appreciates traditional culture. At first, they believed and followed the Chinese culture. Since 1990s, Taiwan started to focus on local culture. They appreciate Holo, Hakka and indigenous groups. Even Ministry of Education introduced the program called â€Å"Knowing Taiwan† which focused Taiwan’s history, geography and society instead of centered on mainland China.As the article mentioned, mainlanders who came to Taiwan with Kuomintang government had been allocated in certain places. They thought that st aying in Taiwan was temporary plan. However, the dream of â€Å"retaking mainland† faded and the mainlanders had to stay in Taiwan. According to government’s arrangement in 1980s, 90% of 110,000 households recorded in 1984, the dependents of mainlanders, who were military’s families, have left the villages. Nevertheless, some workshops tried to request to preserve the villages for culture conservation.At last, we found that the workshops perform so well which fight for their culture yet do not ignore the social development. What we learnt in communication and culture, we have no problem to agree that living lifestyle is one of culture definition’s elements. There is a set of pattern preserved and shared human activities among a social group from generations to generations. In this article, the dependents’ villages are recognized culture of what we learnt in class. The military dependents’ villages were brought by mainlanders from mainland of China.They brought their families to Taiwan as well. Hence, they started practice their normal life in Taiwan generations by generations. Moreover, there are pictures of their culture proof. For the first page, we can see a big house built at Mingde New Village in Kaohsiung. It is for higher-ranking officers. The second page has 5 photos. The top one is the narrow alleys in the military dependents’ village. The photo below it shows the mandarin words which means â€Å"Be calm amid confusion†. It would be probably the residents’ value oriented.The other two photos that wrote mandarin words, â€Å"One year to get ready, two years to recapture, three years to clean up and five years to finish the job†. The military has the purpose on recapture the mainland of China when they came to Taiwan. On the following page, there is a photo of some apartments. They are the new apartment buildings for military families such as these in Kaohsiung’s Zuoying Distri ct. We noticed that the villages’ culture had been gone. The other photo in this page shows the military dependents villages’ cultural festival in New Taipei City.The fifth page showed the military uniforms and identity cards at the Kaohsiung Museum of military dependents’ villages. The last page showed the selection of dishes at a Kaohsiung military dependents villages’ food festival in 2011 and a well-preserved living room at Sanchong First Village in New Taipei City. All of them are significant culture. This issue is quite similar to Malaysia’s not to demolish Jalan Sultan case. We noticed that culture preservation is important, especially the historical buildings. We understand social development is important too yet there are some ways to avoid from demolishing cultural buildings.As the photo we saw in fourth page, the original outlook and environment was gone after the rebuilding. It will be happened in Jalan Sultan if we do not fight for the preservation of culture. It is sad if we lost our significant culture on our land. Therefore, we should appreciate our culture and think the other ways to avoid from demolishing our significant culture. For example, Melaka had preserved those culture buildings and items. They then become elements of tourism and improving our national incomes. Hence, we should think twice before we made the cruel decision of demolishing some precious and valuable cultures.

The Challange of Love in Midsummer Night’s Dream by...

Four lovers each with his or her own challenge in love, Lysander and Hermia who love each other but may never be together, and Demetrius who loves Hermia and rejects Helena’s truthful devotion. Shakespeare’s writing style is the essence that brings forth the emotions within his works. Throughout a Midsummer Night’s Dream by William Shakespeare, commonplace literary devices are used to emphasize his style of writing. , Shakespeare depicts the theme of love’s difficulty, especially with the use of figurative language, such as metaphor and personification, to show that though complications arise in complex situations, the ability to overcome becomes the true meaning of love. wise In Act one, scene one, Theseus is forced to solve the†¦show more content†¦So, when Titania has her soliloquy, she describes Oberon’s jealousy as the â€Å"forgeries of jealousy.† That does not mean that jealousy, an abstract concept, can be forged. But it doe s imply that the jealousy is personified as a fictitious idea. Further along in her soliloquy, she says that there are â€Å"contagious fogs† which simply would not make sense literally, but the actual meaning, figuratively, is that revenge is contagious and so the personification of an object, fog, exaggerates the idea of revenge. Reading the exaggeration then, adds a more compelling idea the difficulty of love between Titania and Oberon. To paraphrase, throughout that same soliloquy, Titania references various problems with the world, including crops rotting, animals being put through pain and even various images of death of cattle. The metaphors here are implicative of the forces of nature that are sent into chaos due to Titania and Oberon’s quarrel. The specific reference to â€Å"The ploughman lost his sweat, and the green corn/ Hath rotted ere his youth attaind a beard/ The fold stands empty in the drowned field,/ And crows are fatted with the murrion flock;â₠¬  shows the metaphor of specific events that represent the world itself. By giving specific instances, Shakespeare describes the end of the world without love to support it, and he further implies the devastation that occurs with Titania and Oberon’s quarrel. Theseus becomes a world of figurative language in Act