Free Essay

China: Can the Dragon Be Satisfied

In: Business and Management

Submitted By bs3865
Words 1573
Pages 7
Ben Solver
Ms. Margaret Munley
Introduction to Microeconomics
24 February 2014
China: Can the Dragon be Satisfied China’s open reform period is characterized as one without a blueprint, but by ‘groping for stones to cross the river’, based on an incremental, gradualist approach to reformation (Lee). China is still a developing country with pockets of industry in different regions. While China may relishe in the fruits of its labor, there is an increasing disparity between the urban and rural areas due to this disequilibrium of development. China’s presence on the world stage has drastically increased since 2001 when China joined the World Trade Organization, in essence opening their borders and has left many researchers perplexed about the consequences of its rise. There exists a plethora of studies, debating whether China’s current path is one that is headed to the top, or whether China is at the peak of its development with looming declines in the near future, plagued by weak institutional reforms. While there are many features that characterize China’s direction, China is growing in its demand for products from around the world and its industrial side has been growing but at the same time increasing how fragile our world economy is (Badinger). Due to past and current monetary problems in different regions of the world and a shift in the location of manufacturing could pose future concerns to the emerging Dragon. China’s cheap labor has been a prominent economic advantage since opening its market. However, the average annual real wages have tripled from 1997 to 2007 from 3,285 to 24,932 Yuan (Yang). Now there is a notion that the rural surplus labor is decreasing to a level that continued industrialization but cannot be supported cheaply (Lee). Additionally there has been increasing reports about China losing its appeal as a manufacturing base for exports; China is showing signs of decreasing and being unstable. While there has been increasing reports suggesting that wage increases has led to decrease in US Foreign Direct Investments (FDI) this trend may be more illustrative of an increasing interest and access in high technological and service sectors, areas in which China does not have a comparative advantage yet. Outward FDI to Asian countries other than China is not an automatic indicator of China “losing out” as different regions are accessed for industries that may be complementary to China as in the case of India and other neighboring country’s (Yang). While increased earnings has surged manufacturing wages in the latter part of the 1990s into the second decade of the new millennium China’s wages are still below Malaysia, Thailand and the other Asian players. However China holds a significant share of the working labor population within Asian region, therefore while wages are lower than the majority of its neighbors it has been theorized that that Chinas wage inflation has impacted the rise of the wages of its neighbors especially those in labor intensive industries (Pop Culture China! Media, Arts, and Lifestyle). Additionally, the increase in China wages in relation to its labor market has been attributed to the increasing high skilled population as the role of education continue to play one of the most important roles in China’s development. Combined with increasing high tech industries will result in China approaching wage levels of the US, EU, Japan also possibly Korea (Yang).
Contrastingly, this is unlikely to occur in the short term as a result of China present low wage level and increasing robust supply of labor and skill that may also result in a stabilization of wage growth in the long run. Additionally, how this unfolds is not simply dependent solely on China pumping out more skilled workers and consistent growth rates but also how other developing and advanced countries react and adjust. It is also reliant on China, and how it addresses regional disparity issues resulting in its current status as one country with two explicitly divided societies, the urban versus the rural. Present day China will continue to maintain its global labor advantage and luster as an attractive location for FDI and outsourcing jobs while also developing its high tech industries (Yang).
Is China contributing to a “global labor arbitrage?” Chinas low wages and increasing labor market has been considered a “global labor arbitrage” which reflects the reduction of high paying jobs in the developed countries due to a preference and the appeal of low wages in developing countries (Badinger). Traditionally one of the benefits of globalization has been that developed countries had a comparative advantage in regards to a larger skilled labor force. However there is still a push for China and other Asian countries to continue the development of its human capital has not only reduced this disparity but for the most part has diminished it all together.
In China there are 750 multinational companies that have implemented R&D facilities allowing for access to high technology R&D development and production and much lower costs (Yang). While it is theorized that advantages of high technology and innovation are in the hands of more developed countries, the combination of low wage and highly educated workers in developing countries proves otherwise in the long run, making them strong competitors. China is continuing to rise up the technological industries and has become a key player in research in nanotechnology. Nanotechnology has become a multibillion Yuan industry in China and basic nanotech R&D is at the most advanced levels in the world, comparable to the United States (Yang). Additionally even though the majority of Chinas labor force may be less skilled, because of its large population, it has the ability to produce comparable amounts or more educated scientists and engineers than other advanced countries.
Since China’s central government decentralized power the minimum wage levels were determined by the subnational governments this has created regional disparity between inland and coastal regions(Yang). The government should further advocate for low wages through encouraging investors away from the coastal cities to the inland regions to explore cheaper labor. However a sustainable long-term geographical dispersion and selective FDI policy would positively improve conditions in the inland regions which would increase wage in the long term thus reducing the income disparity. Also, this would complement a rise in Chinese consumerism due to increasing wealth and disposable income (Pop Culture China! Media, Arts, and Lifestyle). Multiple reports found unreported income accounted for 40 per cent of the total income. Therefore the income disparity between the rural and urban households is smaller than reported since actual income level of rural households is estimated to be higher. Additionally the rural urban income gap accounts for 40-60 percent of the overall inequality in China thus, a re-alignment of rural and urban income for unskilled migrant workers and skilled labor force will be a key driving factor towards China’s rise to the top (Pop Culture China! Media, Arts, and Lifestyle). This will further contribute to China’s transition from export led growth to increased domestic consumption and innovation, an initiative of the central government. According to theorists such as Thomas Friedman, “Chinas integration into the world market has created a “flat world” primarily because it has become cheaper to manufacture and ship goods from China than within a countries domestic market. This has transformed the face of trade, for example China replaced Mexico in 2003 and is now their second exporter despite Mexico’s close proximity to the US, and additionally even Mexican companies in Mexico have resorted to importing from China.” With the increasing amount of interconnectedness of people and information (Badinger) the world has flattened in a sense but there is still an increasing difference between the rich and the poor, urban and the rural. As a result the global playing field has changed but it has by no means leveled. Over all China is good for the world they are creating a competitive world market and challenging for the lead in many industries. This is all part of a cycle that has been proven time and again throughout the world, prosperity can be short lived. Not to say the end of China is near but more of a balancing of the powers. I hope this generation and the ones that follow will take advantage of the spectacular educational system we have and pursue an education in the sciences, mathematics or engineering. This will establish that back bone of great minds and future leaders to help push a drive to strengthen the America’s and the future of their open market trade.

Work Cited * Badinger, Harald, Measuring the World Economy (January 2013). The World Economy, Vol. 36, Issue 1, pp. 12-30, 2013. Available at SSRN: http://ssrn.com/abstract=2202634 or http://dx.doi.org/10.1111/twec.12022 * Lee, Forest. “China's On-going Reform Calls for Better Economic Illumination.” People's daily online., 15 August 2002. http://english.people.com.cn/200208/13/eng20020813_101406.shtml * Yang, D. T., Chen, V. W. and Monarch, R. (2010), RISING WAGES: HAS CHINA LOST ITS GLOBAL LABOR ADVANTAGE?. Pacific Economic Review, 15: 482–504. doi: 10.1111/j.1468-0106.2009.00465.x * "Consumption in China." Pop Culture China! Media, Arts, and Lifestyle. Santa Barbara: ABC-CLIO, 2007. Credo Reference. 9 Jan. 2009. Web. 13 Apr. 2013. <http://www.credoreference.com.trexler.idm.oclc.org/entry/abcpochine/consumption_in_china>. * http://www.worldeconomics.com/ China%20Growth%20Monitor_cac90741-8882-4311-969e-3ae0e3e2575c. Graphs attached for reference

Similar Documents

Premium Essay

Rdh Guanxi

...Improving Communications: Hotel International and the Roaring Dragon Hotel Ima Student Sullivan University MGT 510 Executive Summary This proposal provides a roadmap toward improving communications between the Hotel International (HI), a global hotelier, and the management control of the Roaring Dragon Hotel (RDH), one of the original three-star hotels in southwest China and a state owned enterprise (Grainger, 2008). Failure to recognize cultural norms and the relationship between employees, customers, and contractors will result in dramatic failure of modernization and an effective business plan (Grainger, 2008). Introduction: Management Control Takeover The management control takeover of the Roaring Dragon Hotel (RDH), one of the original three-star hotels in southwest China had a direct impact on the hotel’s employees, its popularity among current customers, and generating profit. RDH is a state owned enterprise located in southwest China by Hotel International (HI), a global hotelier (Grainger, 2008). McNally (2011) observed, “Over the past thirty years China has witnessed a gradual transition towards a capitalist political economy with an emphasis on capital accumulation, market competition, and international economic integration” (p. 1). Background: Deployment of Corporate Governance and Global Marketing The provincial government was concerned that the hotel would not meet their potential and needed modernization. The current general manager, Tian Wen,...

Words: 991 - Pages: 4

Premium Essay

Test

...Improving Communications: Hotel International and the Roaring Dragon Hotel Ima Student Sullivan University MGT 510   Executive Summary This proposal provides a roadmap toward improving communications between the Hotel International (HI), a global hotelier, and the management control of the Roaring Dragon Hotel (RDH), one of the original three-star hotels in southwest China and a state owned enterprise (Grainger, 2008). Failure to recognize cultural norms and the relationship between employees, customers, and contractors will result in dramatic failure of modernization and an effective business plan (Grainger, 2008).   Introduction: Management Control Takeover The management control takeover of the Roaring Dragon Hotel (RDH), one of the original three-star hotels in southwest China had a direct impact on the hotel’s employees, its popularity among current customers, and generating profit. RDH is a state owned enterprise located in southwest China by Hotel International (HI), a global hotelier (Grainger, 2008). McNally (2011) observed, “Over the past thirty years China has witnessed a gradual transition towards a capitalist political economy with an emphasis on capital accumulation, market competition, and international economic integration” (p. 1). Background: Deployment of Corporate Governance and Global Marketing The provincial government was concerned that the hotel would not meet their potential and needed modernization. The current general manager, Tian Wen...

Words: 985 - Pages: 4

Premium Essay

Mgt English Course

...Sullivan University | Roaring Dragon Hotel: Intercultural Communication | Bader Ali | | | 10/25/2015 | This is a proposal for the Roaring Dragon Hotel case study. It Includes an Executive Summary for the whole paper starting from introduction down to the conclusion. This will also include out-sourced researches to help clarify the dilemma of lack of communication along with the ignorance of Guanxi. | Executive Summary: In this proposal, you will read briefly about the history of the Roaring Dragon Hotel and where does it stand in its industry. There will be emphasis on how relationships, Guanxi, were a major source of income and interest. This proposal will focus on the setback of internal cultural communication in the hotel and how it affected the hotel’s evolution. The hotel decided to grow, from a 3 star to a 5 star hotel. A foreigner team of specialists were requested for the change procedure. The team was not made aware of the culture they are stepping foot in; add to that, they did not speak the language. The Management excused themselves from explaining to the foreigners what inner value does their employees hold; Guanxi. The employees were not told about the change and its phases. The employees did not understand the language of the outsiders nor their unfairly perceived actions. The evolution team should have invested some time in researching the culture of China, the culture of the hotel, and its business routine. The management members must...

Words: 2307 - Pages: 10

Premium Essay

Resmed

...Compare and contrast how two aspects or theories of consumer behaviour as discussed in Schiffman applies to China and how it differs from that in Australia. Show how this may provide a marketing opportunity for an Australian exporter. Introduction This report aims to discuss and provide information on how Maslow's hierarchy of needs and Trait theory has manifested throughout the market and consumer both China and Australia, accommodating an increasing amount of liberty for Australian exporters. According to Abraham Maslow's hierarchy of needs which is often wrought in the form of a pyramid and suggests five interdependent levels of basic human needs that must be satisfied in an order by satisfying lower and primary needs first also scout to meet the needs sequentially as needs are expressed in a hierarchy. In Abraham Maslow's theory Physiological needs are considered to be the first and the most important level of needs because they are the literal requirement for the survival of humans. This is the stage where the absolute necessity of life is considered, such as food, water, air and shelter and therefore manager in both countries (Australia & China) responsibly tackle the levels of needs by distributing wages to employees acceptable to afford their primary necessities. When Physiological needs have been fulfilled, safety and security are then taken into consideration as the next step in the Maslow's hierarchy of needs. This is the desire for a safe and secure environment...

Words: 970 - Pages: 4

Premium Essay

Managing Diversity at Cityside Financial Services

...Introduction: The Roaring Dragon Hotel is located in China. Mr Wen has decided to expand this hotel in order tp change this 3-star hotel to a 5-Star hotel. And hence he hired a consulting firm to evaluate this hotel from top to bottom. Unfortunately the results were shocking to Wen. He came to know that his employs were lazy and inefficient. They have confirmed that there is no way to change this hotel to a 5 Star without firing more than 600 employs and should spend more investments on the infrastructure. He understood that the employs if the hotel were doing their personal business and taking long breaks for Tea and were reading news paper and also leaving without finishing their shifts. Background : There was a 3-star hotel in South West China named, The Roaring Dragon Hotel which is initially under State Owned Enterprise. It had a colorful history and reputation as the region's premium guesthouse in 1950s. There is a vast market development in the region, but management couldn't get grab that opportunity to increase the reputation of the hotel. And also they didn't bother about the profits. Many people are hired from Government Department through Guanxi or connections . Due to this, there was a decline in popularity and income. The state officials have decided to hire Hotel International and transferred all the ownership of The Roaring Dragon Hotel . Tian Wen is a General Manager in 2000 and having minimum concern about the development and expansion...

Words: 1110 - Pages: 5

Premium Essay

Reality Shows

...Reality Shows In china In China, the reality talent television show Super Girl not only was an unprecedented hit in television history of the country and an economic miracle in the entertainment industry  In 2005 up to 400 million viewers, nearly a third of the population of China sat to watch the grand finale of The Chinese version of American Idol Supergirl Idol. The winner Li Yuchan was chosen via text messages receiving 3.5 million votes. This was seen as a ground breaking moment in both the economic and cultural sectors of Chinese society. Reality TV can be defined as shows that film and follow ordinary people in artificial situations. They could either be at work or in a competition show. Reality shows only came to China in recent years but have since made its impact. With TV programs such as Super Girl and Boy, Dreams in China, Blind Dating shows, each one has attracted thousands of people to participate. Reality shows in China have generated a lot of revenue for not only companies but for the state. Reality TV is one of the fastest growing sectors.  One example was Shanghai-based Dragon TV's four popular reality-style programmes, said to have a combined value of about $500m. These programmes had generated a further $1bn for other businesses in Shanghai, in a chain of value-adding that extended from the producer to advertising agents, telecom operators, mobile phone message service providers, entertainment industry design companies and broadband websites. Supergirl Idol...

Words: 2448 - Pages: 10

Premium Essay

A Marketing Plan for Twg Tea to Enter China Market

...A marketing plan for TWG Tea to enter China market Table of contents Executive Summary 3 1.0 Introduction 4 1.1 Product background 4 1.2 Company background 4 1.3 Country background 4 2.0 Business Evnrionment 5 2.1 PESTEL analysis 5 2.2 SWOT analysis 6 2.3 Market analysis 8 3.0 Marketing strategy 8 3.1 Objectives 8 3.2 Target market 8 3.3 Positioning 8 3.4 Marketing mix 8 3.4.1 Product 9 3.4.2 Price 9 3.4.3 Place 10 3.4.4 Promotion 10 4.0 Implement and control 11 4.1 Implement 11 5.2 Control and evaluation 12 5.0 Conclusion 12 6.0 Reference 14 Executive Summary This marketing plans aims to help TWG Tea, a well-known tea brand operating in Singapore, to enter tea market in China. Through using PESTEL and SWOT analysis models, it finds that China is a high potential market for TWG to earn new growth. However, fierce competition and poor advertising performance of TWG and other limitations all can be big barriers to the entry of the brand. Considering the strong demand and satisfied purchasing capacity, TWG can target upper income groups who have strong beliefs in the health effects of tea to make greater sales. 1.0 Introduction 1.1 Product background TWG Tea is a premium and luxury team brand provided by The Wellness Group. As a well-known tea brand in the international world, this brand provides...

Words: 2785 - Pages: 12

Free Essay

Education

...A comparative study on family education in America and China Thesis statement: This paper is intended to make a comparison between American and Chinese family education to see the differences and similarities, and a detail explanation in given to the differences of family education from the aspect of culture to see the influence, also this paper could see the differences in different aspects and we should think what we should learn from other culture. Outline: 1. Introduction 2. Comparison between Chinese and American family education 1. Similarities 2. Differences 2.21 Traditional educations are different 2.22 The aim of family education are different 2.23 The concepts of family education are different 2.24 The methods between America and China are different 3. Cultural connotation of Chinese and American family education 3.1 The different economic from 3.2 The different historical background 3.3 The different social conditions 4. Conclusion and suggestions Works cited 1. Introduction In twenty-first century, economy develops rapidly and everything is renewed, also countries are competing with each other, so the education is important, just as the proverb says “ science is the first productivity”, and the education is the source of science, in education system, family education is very important. Family, as the cell of society...

Words: 1661 - Pages: 7

Premium Essay

Space-X Business Strategy

...Table of Content 1. Background 2. Vision Statement 3. SWOT Analysis of SpaceX 4. Porter’s Five Forces Model 5. SpaceX TOWS Matrix 6. SpaceX Business Model 7. SpaceX Business Level Strategy 8. Conclusions I. Background SpaceX or Space Exploration Technologies Corporation is a space transport services company headquartered in Hawthorne, California. It was founded in 2002 by former PayPal entrepreneur and Tesla Motors CEO Elon Musk. SpaceX was founded with the goal of reducing space transportation costs and enabling the colonization of Mars. It has developed the Falcon 1 and Falcon 9 launch vehicles, both of which were designed from conception to eventually become reusable. SpaceX also developed the Dragon spacecraft, which are flown into orbit by the Falcon 9 launch vehicle, initially transporting cargo and later planned to carry humans to the International Space Station and other destinations.[1] By 2012, SpaceX had over 40 launches on its manifest representing about $4 billion in contract revenue—with many of those contracts already making progress payments to SpaceX—with both commercial and government (NASA/DOD) customers. As of December 2013, SpaceX has a total of 50 future launches under contract, two-thirds of them are for commercial customers.  SpaceX's low launch prices, especially for communication satellites flying to geostationary orbit, have resulted in market pressure on its competitors to lower their own prices. In recent...

Words: 8295 - Pages: 34

Premium Essay

Kfc in China

...Hoi Shan Wu Prof. Dennis Lee Doing Business in China 16 May 2017 KFC in China As China develops the pace of life has gotten quicker. The Chinese people’s demand for fast food service with good hygiene has grown due to fit their busier lifestyle. An analyst from China Venture Group, Wan GE, said that fast-food has become the first choice for 85% of Chinese city residents when eating out. (Hu and Chen) The fast-food industry in China is fast growing with an 11.6% growth from 2010 to 2015. (Fast-Food Restaurants in China: Market Research Report) Kentucky Fried Chicken (KFC) a subsidiary of YUM! Brands, was the first quick-service restaurant (QSR) to enter China in 1987, and remains China’s number one QSR today with more than 5000 restaurants in over 1100 cities. (Yum! Restaurants in China) KFC started as a joint venture company; 60% stake held by KFC, 27% by the Beijing Tourist Bureau and 13% by Beijing Food Production. In 1988, Bank of China bought 25% of the venture, diluting KFC to 51% of shares. The first KFC was opened in Beijing, Qianmen, five minutes away from Tiananmen square. (Qingfen) When KFC first entered China, it was a great success. It was an eye-opener into American cuisine and culture. Chinese consumers had the perception that anything from the west is the best; since KFC is from the west it was the best. Chicken is the second preference of meat followed by pork in China. Naturally Chinese customers loved KFC’s fried chicken not only because of the product...

Words: 2875 - Pages: 12

Premium Essay

Queueing Theory

...There is more to life than money There is more to life than fame and There is more to life with Godiva’s chocolate Godiva Background Godiva Chocolatier, a Belgium chocolate manufacturer famous for its premium quality handcrafted chocolates, was founded in 1926 in Brussels by the master chocolatier Joseph Draps and it was purchased by the Campbell Soup Company which faciliatates the activities of brand aroun the World. In 2001 Godiva was purchased by the Turkish Yıldız Holding, owner of the Ülker Group. and on Februrary 1st 2013 the former owner of Godiva Chocolatier Yildiz Holding sold Godiva Chocolatier to the American food company The Kraft Foods Group. Godiva owns and operates more than 600 retail boutiques and shops in the United States, Canada, Europe, and Asia and is available via over 10,000 speciality retailers Global Marketing Strategy of Godiva Godiva is growing in the global market with accessing to new markets and new resources. The brand is very well known for its hand-made luxury chocolates and it is touching more people who have different cultures, economic environments with market development strategy(entering into new markets with existing products) and diversification strategy(entering into new markets with new products). Key Elements of Global Marketing Strategies of Godiva Customer Value: In fall 2009...

Words: 1845 - Pages: 8

Free Essay

Traditional Events

...Abstract Traditional events and festivals have become increasingly important on tourism. The cultural events encourage cultural atmosphere, create recreational experiences, and generate revenues. The Bun Festival is a cultural event and attracts 60,000 people in 2009. In this dissertation, it studies the Bun Festival on Cheng Chau Island to investigate the visitors’ satisfaction experience and authenticity of the Bun Festival. The visitors’ perception on the Bun Festival will be found from a visitor survey. A survey is asked the visitors who have participated the Bun Festival before. The results present that although perceived authenticity of the Bun Festival is high, majority of visitors is not motivated by the tradition and culture, is not enough knowledge to analysis. The visitors are not antipathy for commercial of the Bun Festival, because they look for relaxation and entertainment. The recommendations for future development of the Bun Festival are suggested based the findings. Keywords: Cultural Tourism, Bun Festival, Visitors’ Perceptions of Authenticity 2 Table of Contents Abstract Table of Contents List of Illustrations Charter 1 Introduction ........................................................................................................... 6 1.1 Background:..................................................................................................................... 6 1.2 Reason for Choosing This Topic:.....................

Words: 14823 - Pages: 60

Premium Essay

Assignment 1

...Starbucks is an international specialty coffee chain company. Operating more than 16,000 stores in over 50 countries worldwide to date, it is the largest coffeehouse company in the world (Starbucks Corporation 2010). Set back in year 1971, Starbucks specialized in coffee and other related beverages such as Italian-style espresso beverages, cold blended beverages, and a selection of premium teas, also with certain related businesses like complementary food items, coffee-related accessories and equipment (DataMonitor 2010). Starbucks’ business operation can be breaks down into three segments – the United States, international, and global consumer products group (CPG). The United States and international segments, which is Starbucks’ core businesses, comprise the company-operated retail store and its domestic and overseas licensing businesses; the global consumer product groups segment focus on the sales of packaged coffee and tea through other intermediaries like grocery stores and convenient stores (DataMonitor 2010). Starbucks has continually succeeded and one of the fastest growing company in the USA. Rapid pace of growth company CEO are looking for expand their business internationally. Starbucks was first begun outside of the America in 1995. The firm subsidiary called Starbucks Coffee International Inc. Starbuck build Starbucks’ business outside North America, Including Company owned, license, and joint- venture-based retail stores in globally. Starbucks growth to international...

Words: 5925 - Pages: 24

Premium Essay

Business Strategy

...stakeholder analysis when formulating new strategy 2.3.1. Stakeholder significance grid Internal stakeholder: Manager, Employee “The Volkswagen Group, with its headquarters in Wolfsburg, Germany, is one of the largest automobile manufacturers in the world and the largest carmaker in Europe. The Group operates in more than 62 production plants in Europe, the Americas, Asia and Africa. Around the world, more than 400,000 employees produce about 30,000 vehicles that are sold in 153 countries. We also believe that the powerful principles of diversity and inclusion help us create an environment where each person feels respected and appreciated. This enables us to develop a workplace where employees can realize their full potential and individually and collectively do our best work. In doing so, we can better achieve its full potential too, because Diversity and Inclusion promotes superior business performance and a competitive advantage.” (volkswagen, 2014) Connected stakeholders: * Customer: Volkswagen is a global company so it has a huge of number customer in the world so customer plays an important role in developing process as well as affecting profitability of company. The customer is the foundation of Volkswagen’s success, increasing customer loyalty is important mission of company. * Supplier: Volkswagen cannot success without supplier, company has a wide of supplier around the world and the must to achieve its standard. The production processes and working conditions at...

Words: 6285 - Pages: 26

Premium Essay

Advertising and Promotion

...Table of Content Introduction 3 Integrated Marketing Communication 4 Tea Embassy & these tools 5 Marketing Mix 7 Analysis of Tea Embassy’s IMC 9 Tea Embassy and Advertising 10 Advertising Campaigns 11 Tea Ambassadors 11 Tea Categories and Advertisng 12 Analysis of the Advertising Used 14 Tea Ambassadors 14 Tea Categories 14 Recommendations 15 References 16 Introduction Tea Embassy is a US - based family owned business that brings the best tea from all around the world with over 200 premium, specialty, and loose leaf teas falling into 7 categories: black tea, green tea, Oolong Tea, White Tea, Rooibos Tea, Pu-erh Tea and Herbal Tisane. The business also includes supportive tea related products from tea ware to tea gifts and books. With one store in the US, and an online website that enables purchases from all around the country, the Tea Embassy has managed to create itself as a very successful and attractive business. With such large variety of a FMCG (tea choices), it may result in consumer confusion, or cautious due to lack of knowledge or price sensitive. However, the Tea Embassy overcome this by standing out and offering a pleasant buying experience, facilitate exploration to make consumers make the right decision and that their loyalty goes beyond price. A vision where young and old, male and female, black and white, citizen and foreigner all come together around tea. “Tea offers thousands of varieties...

Words: 2832 - Pages: 12