1. Profile the U.S. Market in terms of “Consumer Trends” and the effects of “Competitive
Rivalry in the retail sectors”. Identify the specific and general driving forces behind these trends.

Due to the credit-crunch many commentators point out that the global consumer mindset is tuned to recession-spending.The main point is that US consumers who used to be very materialistic,now tend to spend less money on their purchases.And there are some consumer trends that support this issue.
“The Lipstick Effect” is the phenomenon of the rise of small self-treating on make-up and gadgets when people forego extravagant purchases such as cars and holidays in times of recession. This tendency is all about consumers' sustained need to enjoy consumption and express their identity despite their pressured lives. Overall, consumers may scale down on purchases and live with delayed gratification by saving and investing more in retraining and putting more energy into getting better value. But the definition of value will be different for different products. For instance, consumers will seek the lowest price for products that serve basic needs such as food, whereas in self-treating and small luxuries, the value of feeling indulged is given precedence. The Lipstick Effect endures. Consumers still appear willing to splurge on prestige items. This has led to a huge wave of websites on how to be frugal but also keep up appearances. .

Commentators, journalists and bloggers are certainly signalling 2009 as a year of fear, anxiety and uncertainty for consumers who, in order to fight back against these pressures, will need to engage with them using resourceful coping strategies. These include immersing themselves in the safety and comfort of their home cocoons, voluntarily trimming spending, redefining their relationship with brands so that this becomes more of a dialogue rather than a one-way brand-to-consumer communication and reinventing and re-launching themselves through retraining, thrift, bargain hunting, revised leisure time aspirations etc.

With less disposable income, consumers are cutting back on non-essentials, fixing rather than discarding, downsizing to a smaller car, getting rid of second homes, possibly renting rather than buying, and retreating all the more into their comforting spaces – ideal settings for the enjoyment of in-home entertainment which is relatively inexpensive after the initial outlay. This is why there is still huge consumer demand for electronics, albeit more affordable models. Personal gadgets from cell phones to media players are also a form of “outdoor cocooning”.

Millions of consumers will continue to feel that being online wherever they are is a basic lifestyle need. In the current economic context, the internet and the whole phenomenon of Web 2.0 is also about the internet as cheap sanctuary, communications, entertainment, socialising and dating tool as well as “word of mouse” haven where consumers can compare notes on brands (data firm Jupiter found that 77% of online shoppers are using reviews and ratings when making their purchasing decisions) and where savvy brands can reach out to them by joining in and responding to online 'market conversations'.

Online consumers will continue to influence what other consumers buy through peer-to-peer reviewing. Trend commentators such as trendwatching are stressing the market as a conversation in the future and Feedback 3.0. According to trendwatching, it “will be all about companies joining the conversation, if only to get their side of the story in front of the mass audience that now scans reviews.”

Major brands including Starbucks, Ford and Pepsi-Co are already using micro-blogging site Twitter to micro-manage their PR. For instance, PR staff at PepsiCo posted messages on the site after users began criticising one of the company's advertisements, which depicted a cartoon calorie committing suicide. Innovative online campaigns are thriving. Lastminutetravel.com's newly launched 'world for a $' teaser offers visitors 15,000 hotels for US$1 per night for 15 minutes every workday. When this happens is the catch but the one million plus viewers to date of their comedy viral ad clips are promised clues.

Due to increasing rivalry the sellers begin to use some tricks to market the goods.To win in the conditions of stiff competition the companies apply such measures like creating the departments of fresh food (bio food with low sugar,salt content for example,what attracts such consumer segments as baby-boomers and generation Y).
To gain the bigger market share all retailors try to increase the amount of luxury goods sold in their stores.

2. Discuss the complementary utilities of using both Porter’s 5 Forces Model and Freemans
Stakeholder Theory when preparing a strategic plan for the U.S.

Porters fives forces model is an excellent model to use to analyse a particular environment of an industry. So we would use porters model to help us find out about:
Competitive Rivalry
A starting point to analysing the industry is to look at competitive rivalry. If entry to an industry is easy then competitive rivalry will likely to be high. If it is easy for customers to move to substitute products for example from coke to water then again rivalry will be high. Generally competitive rivalry will be high if:
• There is little differentiation between the products sold between customers.
• Competitors are approximately the same size of each other.
• If the competitors all have similar strategies.
• It is costly to leave the industry hence they fight to just stay in (exit barriers)
Power of suppliers
Suppliers are also essential for the success of an organisation. Raw materials are needed to complete the finish product of the organisation. Suppliers do have power. This power comes from:
• If they are the only supplier or one of few suppliers who supply that particular raw material.
• If it costly for the organisation to move from one supplier to another (known also as switching cost)
• If there is no other substitute for their product.
Power of buyers Buyers or customers can exert influence and control over an industry in certain circumstances. This happens when:
• There is little differentiation over the product and substitutes can be found easily.
• Customers are sensitive to price.
• Switching to another product is not costly. Threat of substitutes
The threat of substitute is high when:
• Price of that substitute product falls.
• It is easy for consumers to switch from one substitute product to another.
• Buyers are willing to substitute.
Threat of new entrant The threat of a new organisation entering the industry is high when it is easy for an organisation to enter the industry i.e. entry barriers are low.
An organisation will look at how loyal customers are to existing products, how quickly they can achieve economy of scales, would they have access to suppliers, would government legislation prevent them or encourage them to enter the industry. So to summaries porters five forces model is essential to carry to help you understand your industry in depth before you enter it.
Freeman (1984) defines a stakeholder in broad terms as any group or individual who can affect or is affected by the achievement of an organization’s purpose. Stakeholder theory is an approach to organizational management and governance that emphasizes the importance of considering organizational stakeholders when making leadership decisions. By calling on organizations—corporations, schools, universities—to give attention to those affected by organizational actions, stakeholder theory makes an explicitly moral claim (Phillips, Freeman, & Wicks, 2003). Stakeholder theory is far more, however, than simply a call for organizational ethics. Freeman argues that attention to stakeholders is essential to effective strategic management in an increasingly complex world characterized by multiple groups and individuals that affect and are affected by organizational actions.
A major issue in stakeholder strategic management is how to balance the interests of stakeholders when deciding on the distribution of organizational outputs. While stakeholder theory does not provide clear guidance on this issue, it does provide some tools. For example, Phillips (2003) makes a clear distinction between what he calls “normative” stakeholders, those to whom a moral obligation is due, and “derivative” stakeholders, which are other groups and individuals who warrant attention on the basis of their ability to affect the organization. This distinction can be helpful when weighing competing stakeholder claims on organizational outputs.
In addition to focusing on the distribution of organizational outputs, stakeholder theory calls attention to organizational process. That is, as important as what a stakeholder group receives from an organization is the process by which key organizational decisions are made (Phillips, Freeman, & Wicks, 2003). For example, do major stakeholders have voice in the decision-making process, are they provided essential information about the decisions being made, and do they judge the decision-making process to be fair? While organizational outputs are inherently a zero-sum game (one group’s gain is another’s loss), voice in decision making is not limited in this way. And the more voice and information that is given to stakeholders, the fairer stakeholders tend to find the process (Phillips, Freeman, & Wicks).
Provided using both Porter’s 5 Forces Model and Freemans Stakeholder Theory the better result will be reached because Porter’s 5 Forces Model helps to investigate the macroenvironment and Freemans Stakeholder Theory helps to get the insight into microenvironment of the company.Having such information together will help to understand the business environment of the company much better.

3. In reference to the lectures on the “Baby Boomer” segment of the U.S. economy, and to the video on consumerism in the “Latino Community”; discuss the socio-cultural, attitudinal, value-based, communication (verbal and non-verbal) constraints and considerations that a business would have to keep in mind when encoding and communicating messages to these groups. (Discuss each group separately).

Born between 1946 and 1964, Baby Boomers are predominately in their 40s and 50s. They are well-established in their careers and hold positions of power and authority. This generational segment constitutes a large majority of today's law firm leaders, corporate executives, senior paralegals and legal managers. In fact, nearly 70 percent of law firm partners are Baby Boomers.

Labor statistics indicate that nearly 80 million Baby Boomers will exit the workplace in the next decade. These employees are retiring at the rate of 8,000 per day or more than 300 per hour. This unprecedented loss of skilled labor in the legal profession, consisting largely of partners, executives, senior support staff, legal managers and other legal thought leaders, may dramatically impact the legal industry.

Below are several common characteristics of the Baby Boomer generation.

Work-Centric: Baby Boomers are extremely hardworking and motivated by position, perks and prestige. Baby Boomers relish long work weeks and define themselves by their professional accomplishments. Since they sacrificed a great deal to get where they are in their career, this workaholic generation believes that Generation X and Generation Y should pay their dues and conform to a culture of overwork. Baby Boomers may criticize younger generations for a lack of work ethic and commitment to the workplace.

Independent: Baby Boomers are confident, independent and self-reliant. This generation grew up in an era of reform and believe they can change the world. They questioned established authority systems and challenged the status quo. In the legal workplace, Baby Boomers are not afraid of confrontation and will not hesitate to challenge established practices.

Goal-Oriented: With increased educational and financial opportunities than previous generations, Baby Boomers are achievement-oriented, dedicated and career-focused. They welcome exciting, challenging projects and strive to make a difference.

Competitive: Since Baby Boomers equate work and position with self-worth, they are quite competitive in the workplace. They are clever, resourceful and strive to win. Boomers believe in hierarchal structure and rankism and may have a hard time adjusting to workplace flexibility trends. They believe in "face time" at the office and may fault younger generations for working remotely.

Consumers in Latin America, as in the rest of the world, care primarily about cost, value and quality – in that order. Ethics are obviously desirable (even the most irresolute consumer would prefer the shoe made under fair conditions rather than slave labour, all else being equal), but they are not as yet a clincher at the checkout.
The failure of social or environmental issues to dent the consumer market in Latin America owes much to relative purchasing power. Yet consumer trends – and some consumer pockets – are beginning to suggest reasons for hope.
For example,although President Hugo Chavez is urging Venezuelans to adopt more ascetic socialist values, a culture of consumerism is flourishing as an oil boom surges through the nation's economy.
Shoppers are buying everything from cell phones to Scotch whiskey at a rapid clip as the economy benefits from high world oil prices and banks compete for clients by cutting consumer loan rates in half.

Venezuelans bought 343,000 automobiles last year, a 50 percent increase over 2005.

Everything is selling -sport utility vehicles, pickups, buses, everything. The demand is impressive. The market has grown like crazy."

Waiting lists of two months or more are common for many car models. The waiting lists for compact, inexpensive cars are particularly long. American cars are among those selling well.

Other areas of the economy have experienced similar growth. Consumer spending grew by a historic 20 percent last year compared with 2005, according to estimates by the private polling company Datanalysis.

Seven new shopping malls were built in the country last year, and this year at least 13 more are projected to be completed.

The consumption trend has touched all social classes, including low-income Venezuelans. A growing state work force, new government benefits, and a rising minimum wage have helped put money in Venezuelans' pockets, even as high inflation has eaten away at those gains.

4. Reflecting upon the totality of our seminar content, what are the key considerations and mindsets a non-U.S. businessperson/business must employ when formulating a strategic plan that will be successful in the U.S. Culture(s)?

The U.S. is essentially a nation of immigrants. It is a culturally diverse country.The United States, a nation founded on the fundamental belief in equality, is today a multicultural mosaic of over 290 million people of varying race and cultural heritage. American culture portrays a strong sense of regional and ethnic identity, which is represented by a number of subcultures and influenced by the country’s vast geographical and regional differences.
America’s influence on business culture across the globe is unmistakable. However, understanding the cultural concepts behind the surface appearance is just as important for your company when doing business in the US as in any other country.
Individualism- The concept of individualism in the US plays a significant role in the lives of many Americans. American culture emphasises individual initiative and personal achievement.
Independence and self-reliance are highly valued and also extends to the workplace where business is frequently carried out autonomously. Consequently, one’s position in US society is determined by one’s own achievements as oppose to status or age.
Low context culture – Generally speaking, those cultures described as low context tend to communicate meaning and information explicitly through words. Americans are task centred and thus the primary purpose of communication is to exchange information, facts, and opinions.
In the US, conflict is dealt with directly and openly, and for this reason, Americans will not hesitate to say “no” or criticise others in public. This direct style of speech is often interpreted by foreign visitors as rude and may cause embarrassment to business people who are unaccustomed to such explicit communication. However, it is important to remember that in a business context it bears no relation to personal feelings and should not be taken as such.
Egalitarianism – An important element of American culture is the concept of equality. Despite the many differences within American society, there is a collective understanding of the notion of equality that underlines many social relationships in the US. Americans believe in having equal rights, equal social obligations, and equal opportunities based on the concept of individual merit.
Consequently, there is a general lack of deference in the US to people of greater wealth, age, higher social status or authority. This is evident in the way in which titles are seldom used in business environments and how Americans call each other by their first names almost immediately. Egalitarianism also contributes to the system of merit frequently referred to as the “American Dream”, whereby hard work deserves success and financial prosperity. This in turn can often cause a dichotomy in the workplace and office hierarchy displaying a clear distinction between management and their subordinates.
The world’s third largest country both in size and population, the United States is a nation moving forward rapidly and successfully with its unique cultural diversity. Throughout the years, America has experienced waves of immigration from virtually every corner of the world moulding the country into what it is today. After establishing its independence in 1776, the
United States has endured civil war, the Great Depression, and two World Wars to become the richest and most powerful nation state in the world. Today, the US is considered to have the strongest and most technologically powerful economy. For those wishing to conduct business in the US, gaining a professional insight into the cultural design of this distinctive country is essential to your success.
It is customary to begin and end business meetings with a brief but firm handshake. Maintaining direct eye contact during this initial greeting and whenever in conversation is also essential, as it demonstrates to your American colleagues your interest and sincerity.
The exchanging of business cards is a casual affair in the US and as such demands no clear ritual or set of rules. Americans regard business cards as a resource for future information. On the occasions when they are exchanged, it may be done either during introductions or when leaving. During negotiations, it is important to remember that the aim of most business discussions in the US is to arrive at a signed contract. Americans consider negotiations as problem-solving situations based on mutual benefit and personal strengths. Therefore, emphasis is placed on one’s financial position and power. When doing business in the US, you will be expected to adhere to rules and guidelines that your US business counterparts must also follow. Company policy and business procedures such as legally binding contracts, are aspects of American business culture that require strict compliancy.

5. The U.S. is one of the countries driving a culture of “Communication and Collaboration” between businesses, and between businesses and consumers; as the video entitled
“Wikinomics: How Mass Collaborations Change Everything” (Don Tapscott speaker) portrayed. How might these technologies and trends change the culture of business domestically and internationally for the U.S. business and the U.S. consumer? Where do you believe the largest impact will be felt in global society as a result of these communications and collaborations?

Collaboration holds widespread appeal to people from every position on the political spectrum, not because it offers everything to everyone (as some of the literature advocating collaboration seems to suggest), but because it deals with a process, as distinct from a program, agenda, or outcome. Collaboration prompts us to look at the very process by which we arrive at political choices, whatever those choices happen to be.

Collaboration may be appropriate under a variety of circumstances, from resolving a neighborhood or environmental dispute, to revitalizing an economically depressed area, to settling a conflict between communities, to a joint venture among businesses, to promoting greater civic participation and involvement in the well-being of a community.

Collaborative endeavors take many forms. Some common varieties include: public-private partnerships, also known as social partnerships — ad hoc alliances between otherwise independent organizations which span both the public and the private sectors; future commissions, also known as search conferences, in which citizens and community leaders analyze trends, develop alternative scenarios of the future, and establish recommendations and goals for the community; interagency collaborations aimed at improving social services to children, families, and other members of a community; electronic networks designed to link various civic, educational, business, and governmental institutions within a community or region through computer networks; school- community partnerships designed to foster greater collaboration between secondary schools and key community institutions; networks and linkages — loosely structured alliances among groups, organizations, and citizens that share a commitment to a particular issue or place; and regional collaboration where local governments work together to promote economic development and service delivery.
Collaboration occurs in many spheres of human activity, of course, and is not limited to civic affairs. While the focus of this paper is on civic collaboration, it should be noted that a great deal has been written about collaboration in the fields of organizational and management theory, microeconomics, linguistics, epistemology, democratic theory, and especially education.
While it is evident that encouraging collaboration through the use of technology has merit, it is also important to realise that successful collaboration in this day and age requires elements of technology, process and people. That said, recent developments with regards to internet based technologies have seen a proliferation of new collaborative technology emerge, many of which can be seen in light of the recent Web 2.0 and Enterprise 2.0 memes. In brief, the creation of many free or low cost online applications has made sharing, editing, commenting and tracking group activities much simpler, aiding and abetting collaboration in the process. Examples of these programs include blogging, wikis and social networking amongst others.

While this new class of programs should be seen in the wider context of desktop (e.g. word processing, spreadsheet) and enterprise applications (e.g. CRM, payroll), it is their ability to share, comment and collaborate with others that is of greatest relevance. Such is the current popularity for collaboration in all things technology that even IT giants like SAP and Oracle have been doffing their caps in this direction.

While the recent emergence of Enterprise 2.0 technology has been well documented, how does this impact an organisation who wants to encourage greater collaboration? Clearly, technology facilitates greater collaboration, the possibility for more innovation and the better use of resources increases. As above, technology on its own doesn’t guarantee success. Instead, people must be trained and the benefits of the software must be given an appropriate purpose.