...profit in supplying cotton thread to Lancashire’s weavers. The raw cotton shipped from America’s slave plantations was processed on the latest machinery, Richard Arkwright’s water frame. Later Greg extended the factory and installed coal-fired steam engines to add to the water power from the Bollin. All this gave a huge boost to productivity. In 1700 a spinster with a pedal-driven spinning wheel might take 200 hours to produce a pound of yarn. By the 1820s it would take her around an hour. Greg’s mill was part of a revolution in industry that would profoundly alter the world’s pecking order. The new technologies—labour-saving inventions, factory production, engines powered by fossil fuels—spread to other parts of western Europe and later to America. The early industrialisers (along with a few late developers, such as Japan) were able to lock in and build on their lead in technology and living standards. The “great divergence” between the West and the rest lasted for two centuries. The mill at Styal, once one of the world’s largest, has become a museum. A few looms, powered by the mill’s water wheel, still produce tea towels for the gift shop, but cotton production has long since moved abroad in search of low wages. Now another historic change is shaking up the global hierarchy. A “great convergence” in living standards is under way as poorer countries speedily adopt the technology, know-how and policies that made the West rich. China and...
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...analysts, Coca-Cola recently released 2012 Q3 financial results and business targets on October 16, 2012 as discussed below. North American Market Volume Results North America is part of the Coca-Cola Americas division which also includes Latin American operations. The United States was the starting market for Coca-Cola Company however the North American sector also includes Canada and Mexico. While North America continues to be a significant factor in all financial transactions and considerations, recent concerns with obesity in the United States has caused sales issues for Coca-Cola Company and is a continuing issue the company needs to address. For this reason as well as general market saturation, North America, while strong, continues to show small to moderate gains in market volume. For Q3 2012, North American operations presented an overall growth of 2%. This metric is the net result of no volume increase for the sparkling (carbonated) beverage section against a 7% gain in still (non-carbonated) beverages. Growth in the still beverages sector can be attributed to an expanded portfolio of non-carbonated beverages such as packaged water, sports drinks, energy drinks, ready-to-mix tea and coffee as well as juices and juice drinks (Zacks, 2012). With a significant 7% growth in the North American still beverage market, this section continues to drive...
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...global emerging markets studied by Goldman Sachs Investment Research. In this paper I will revise the initial portfolio strategy from 1999 that touched on long-term perspective on short term risk. The emerging countries are within Asia, Latin America, Eastern Europe, and Middle East. The information the company provided was strictly based on a predicted study of future outcomes based on emerging markets. The paper of itself does not issue a company strategy on how to use the information found. In this paper I will use scenarios the company presents and determine how Goldman Sachs should invest 5 million dollars recently received to maximize its wealth. In the overview Goldman Sachs mentioned: That they developed a model of discount rate determination that permits the company to recreate discount rate history and calculate discount rates for 23 emerging markets over the last 25 years. The comparison of current discount rates versus their long-term trend has powerful investment implications and turns the investment decision on its head. Abnormally high discount rates relative to history (normally interpreted as punishing cash flows) may be a buy signal, while abnormally low rates may be a sell signal. Current emerging market discount rates are approximately in line with their five-year moving average. From purely a risk perspective, Asian markets appear undervalued, while Latin America and EMEA seem to be slightly overvalued (Mariscal and Hargis, p. 1). Emerging markets...
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...Table of Contents Executive Summary 3 Issue Identification 4 Slowing Growth in NAFTA Trade 4 Continuation of NAFTA Strategy versus Expansion into Latin America 4 Taking Advantage of Economic Growth in Asia and Emerging Markets 4 Expanding Overseas 4 Environmental & Root Cause Analysis 5 Slowing Growth in NAFTA Trade 5 Continuation of NAFTA Strategy versus Expansion into Latin America 5 Taking Advantage of Economic Growth in Asia and Emerging Markets 5 Expanding Overseas 6 Alternatives and/or Options 6 Slowing Growth in NAFTA Trade 6 Continuation of NAFTA Strategy versus Expansion into Latin America 6 Taking Advantage of Economic Growth in Asia and Emerging Markets 7 Expanding Overseas 7 Recommendations and Implementation 7 Slowing Growth in NAFTA Trade 7 Continuation of NAFTA Strategy versus Expansion into Latin America 7 Taking Advantage of Economic Growth in Asia and Emerging Markets 8 Expanding Overseas 8 Monitor and Control 8 Executive Summary Since Canadian National Railway Company (CN)’s privatization by the Canadian government in November 1995, CN has not stopped growing its sales, profits, cash flow and, as a result, market value. Privatization and deregulation of the rail industry led to some of CN’s success, but CN had to cut costs and increase revenues. Cutting costs meant reducing workforce and closing or selling unprofitable tracks. It also meant investing in more efficient rail equipment and technology. Increasing revenues required focusing...
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...INTERNATIONAL SCHOOL OF MANAGEMENT Ph.D. Professional Assessment Evaluation I Standard Bank´s expansion strategy in Latin America Andrea Valenzuela Rivas Abstract After the 2008 crisis, Standard Bank needed a strategy to continue with its grow being truthful to their emerging market presence vision. This paper analyzes the opportunity for the bank in a developing region, Latin America; considering the opportunities and challenges its countries face. Emerging markets have institutional voids that need to be filled, Latin America is no exception; it needs expert companies to provide value added services that bring customers and suppliers closer. For Standard Bank is crucial to identify itself as an aggregator and distributor, and provide innovative distribution and product development to improve its chances of success in Latin America. I. ‐ Introduction The 150 years history of Standard Bank has proven its vision to be a major competitive financial organization in emerging markets throughout the world. The bank is based in Johannesburg, South Africa and it has representation in 17 Sub Saharan countries and also in 16 countries that have an emerging market view (Standard Bank, 2009). Barriers for trade and investment have been coming down in the last 25 year and the volume for exports and investments have grown, forming a single, interdependent and global economic system. Countries around ...
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...registered and based in the world’s emerging markets. To do this I take as the relevant population the world’s 500 largest firms, ranked by total revenues, as compiled annually in the Fortune Global 500. This entire set of 500 firms (most of which are MNEs) was analyzed in Rugman (2005). In that study the focus was on an examination of data on the regional sales of MNEs from the “broad” triad markets of Europe, North America, and the Asia Pacific, which accounts for nearly all of the 500 firms. The total number of MNEs from the “core” triad of the EU, United States, and Japan in from emerging markets are mainly from Asia Pacific. Only two are from Europe, the Russian firms (Gazpron and Lukoil). Another 3 are from the Americas (Pemex and Carso Global Telecom from Mexico, and one oil firm from Venezuela). In contrast, there are 12 firms from the Republic of Korea. Another 12 are from China with another 2 from Taiwan, one from Singapore, and one from Malaysia. Table 3 here Relatively few of the set of 32 MNEs from emerging economies in year 2001 provide data on the geographic dispersion of their sales. Using the 2001 data and the methodology in Rugman (2005), the following facts emerge. First, five South Korean firms provide data which show that all of them are home-region oriented. For example, POSCO has 91.9% of its sales in Asia Pacific, while Hyundai Motor has 81.6% of its sales in Asia Pacific and 18.1% in North America. The remaining three Korean firms are...
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...The company’s mission is to be the premier global direct seller of innovative and premium products. Tupperware is a member of the Direct Selling Association (DSA) and pledges to abide by the codes of standards and procedures as a condition of admission and continuing membership in the DSA as it relies very heavily on direct selling model. It is the seventh largest direct selling company in the world. The company’s direct sales in the U.S. account for approximately $30 billion and its worldwide sales account for approximately $100 billion. Tupperware Brands Corp. Core Products Tupperware: Tupperware’s principle product line consists of design-centric preparation, storage and serving solutions for the kitchen and home. It also has an established line of kitchen cookware and tools, children’s educational toys, microwave products and gifts. The company has expanded over the years with products such as Modular Mates, FridgeSmart, One Touch canisters, the Rock ‘N Serve microwave line, OvenWorks and silicon baking forms for microwave or oven use, Open House, Elegant and Outdoor Dining serving lines, the Chef Series knives and cookware, Flat Out, Stuffables, CheeseSmart and BreadSmartstorage containers, and Quick Chef and Lil’ Chopper Prep Essentials, Ultra Pro ovenware plus many specialized products for the kitchen and home. About two-thirds of sales are under the Tupperware brand, and include design-centric preparation, storage and serving solutions for the kitchen and home...
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...and Management The Dynamics of Market Entry and Expansion Strategy in Emerging Markets: The Case of Wal-Mart in Latin America Dino Ovcina Author: Dino Ovcina Supervisor: Dr. Jeremy A Head Institution: Sheffield Business School at Sheffield Hallam University Program: MSc International Business and Management Module: Dissertation Date of Submission: 21 April, 2010 Abstract This research investigates the internationalization process and potential issues related to market entry and expansion strategies. It focuses on Wal-Mart's entry and expansion strategies into the Emerging Markets of Latin America, and discusses the different entry and expansion decisions being made by the company. Furthermore, the research critically evaluates the dynamic challenges facing developed country firms in their market entry and expansion strategies in emerging markets. Its contribution to the existing literature is its focus on the dynamics of entry modes in emerging markets. The research, based on an inductive approach, has been conducted as a case study by the use of secondary data. Wal-Mart began its internationalization by entering the two geographically nearest markets, namely Mexico and Canada. The entry into Mexico, which occurred 1991, was the first strategic move aiming at reaching the company’s overall goal of becoming the leading player in Latin America. Mexico together with Brazil are the two main emerging markets of Latin America characterized by a high growth potential...
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...and Management The Dynamics of Market Entry and Expansion Strategy in Emerging Markets: The Case of Wal-Mart in Latin America Dino Ovcina Author: Dino Ovcina Supervisor: Dr. Jeremy A Head Institution: Sheffield Business School at Sheffield Hallam University Program: MSc International Business and Management Module: Dissertation Date of Submission: 21 April, 2010 Abstract This research investigates the internationalization process and potential issues related to market entry and expansion strategies. It focuses on Wal-Mart's entry and expansion strategies into the Emerging Markets of Latin America, and discusses the different entry and expansion decisions being made by the company. Furthermore, the research critically evaluates the dynamic challenges facing developed country firms in their market entry and expansion strategies in emerging markets. Its contribution to the existing literature is its focus on the dynamics of entry modes in emerging markets. The research, based on an inductive approach, has been conducted as a case study by the use of secondary data. Wal-Mart began its internationalization by entering the two geographically nearest markets, namely Mexico and Canada. The entry into Mexico, which occurred 1991, was the first strategic move aiming at reaching the company’s overall goal of becoming the leading player in Latin America. Mexico together with Brazil are the two main emerging markets of Latin America characterized by a high growth potential...
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...9-710-429 REV: MAY 2, 2011 JUAN ALCÁCER TARUN KHANNA MARY FUREY RAKEEN MABUD Emerging Nokia? It was December of 2009 and D. Shivakumar, the Managing Director of Nokia India was catching up over coffee with Colin Giles, his counterpart in the China office, and Chris Braam, who was in charge of operations in the Middle East and Africa. The gathering was somewhat celebratory in nature: Giles had recently been promoted to global head of sales. Before Giles left his Greater China market role, his colleagues wanted to get his thoughts on Nokia’s future in the region. The three men had no doubt that Nokia’s strategy in emerging markets had been successful: Nokia was the market leader in India and China, with market shares of 60% and 40%, respectively.1 The company also had made inroads into Africa and South America. However, Nokia had lost ground in the developed world: the company only sold one in 10 handsets in the U.S. (compared to one in three in 2002),2 and it had recently pulled out of Japan after 20 years of operations. Nokia’s revenues in Europe declined by 15% in the fourth quarter of 2009.3 However, Nokia was famous for its ability to reinvent itself. From its beginnings as a paper mill turned rubber manufacturer turned electronics company, and finally, as the world’s largest producer of mobile phones, Nokia possessed an unmatched ability to face obstacles head on and come out on top. Said former CEO Jorma Ollila, “Finns live in a cold climate. We have...
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...dollars, of paper by China in hong Kong;s fledgling offshore market. the yield was miserly yet there were bonds for sale. This tale of two bonds auctions is a parable for the contrasting fortunes of near stagnant rich economies and fast growing emerging markets. twenty of the 82 econmics covered in the back pages of the Economist grew by 3% or more in the year to the latest quarter. only two, of these, Austria and Sweden, are from the traditional group of rich ones, such as Taiwan and Hong Kong. The IMF's the latest forecast is that emerging economies will grow by more than 6% in 2011 and 2012. But growth in the rich world is likely to be below 2%. The other half lives is the rotters economic news over that summer and depending euro-zones mess mean it is easy to forget that countries that now account for half the worlds output and most of its population are doing rather well. that is the focus of my special report on the world economy. But it is equally easy and unwise to think that cupid and trouble-free growth in the emerging economics is assured for years to come. It seems almost churlish to question the outlook for emerging markets after the great strides they have made China and India are twice as rich as they were a decade ago taking millions out of poverty. Nor is the good news confined battered the rich world dozens of emerging markets were growing at a faster rate than america the worlds leading economy. Yet the...
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...Risks Activity is slowing down temporarily, and downside risks have increased again. The global expansion remains unbalanced. Growth in many advanced economies is still weak, considering the depth of the recession. In addition, the mild slowdown observed in the second quarter of 2011 is not reassuring. Growth in most emerging and developing economies continues to be strong. Overall, the global economy expanded at an annualized rate of 4.3 percent in the first quarter, and forecasts for 2011–12 are broadly unchanged, with offsetting changes across various economies. However, greater-than-anticipated weakness in U.S. activity and renewed financial volatility from concerns about the depth of fiscal challenges in the euro area periphery pose greater downside risks. Risks also draw from persistent fiscal and financial sector imbalances in many advanced economies, while signs of overheating are becoming increasingly apparent in many emerging and developing economies. Strong adjustments—credible and balanced fiscal consolidation and financial sector repair and reform in many advanced economies, and prompter macroeconomic policy tightening and demand rebalancing in many emerging and developing economies—are critical for securing growth and job creation over the medium term. The global economy has continued to expand Despite some negative surprises, global growth attained an annualized rate of 4.3 percent in the first quarter of 2011, broadly as expected in the April 2011 World Economic...
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...characteristics of emerging markets? In contemporary society, emerging Markets (EM) are increasingly becoming the most important strength that could promote the development of the world economy. Broadly speaking, the term "emerging market" has been used mainly to refer to the developing world in Asia, Africa, and Latin America. (Mody，2004). Narrowly speaking, EM refers to the stock markets of developing countries. The purpose of this article is to further analyze the characteristics of emerging markets, I am going to focus on the broad economic aspect of EM, which refers to some developing countries like Brazil, Russia, India, China. (BRICs). I would like to separate this article into three different parts. In the first part, I discuss the implications of emerging markets and why people choose to invest in them. The second part is the central theme of the article. In this part, I focus on the main characteristics of EM. After examining all the characteristics, I make a conclusion about the whole paper and put forward several suggestions for ways governments and investment companies can cooperate together to make contributions to making the markets more mature. Emerging market countries mainly contain dozens of developing countries, which are widely distributed in Asia, Latin America, and Eastern Europe; especially the BRICs (Brazil, Russia, India, China) Bruner et al (2003) classify the world economy in the following way: developed markets, emerging markets, frontier markets and unclassified...
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...Table of Content Question 1 3 PEST analysis 3 Porter’s 5 forces 5 Question 2 6 Michael Porter's Generic Competitive Strategies 6 Threshold Resources 7 Core Resources 7 Question 3 8 Ansoff Matrix 8 Market penetration 9 Product development and Market development 9 Organic development 10 Question 4 10 Johnson and Scholes framework of Suitability, Feasibility and Acceptability 11 SABMiller’s strategic priorities: 11 Constraint of acquisitions 13 Reference 14 Question 1 Using information exclusively from the European Brewing Industry and SABMiller cases as supplied and appropriate models from the course analyse the external environment in which SABMiller operated in 2010. After conducted a series of cross broader mergers and acquisitions SABMiller successfully become the second largest brewer by volume in the world. SABMiller is now operating worldwide: Latin America, Europe, North America, Africa, Asia, and South Africa. Nevertheless, the environmental condition and potential of growth vary between each region (Blee and Whittington, 2010). European brewing industry was one of the world’s major beer consumption regions. Recent years, the market has come into mature stage of the industry life cycle and demand is now decreasing (Euromonitor, 2010). PEST analysis and Porter five forces model are the appropriate methods to evaluate external environment on European Brewing Industry (Johnson...
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...DEVELOPMENT OF DERIVATIVE MARKETS IN EMERGING MARKET COUNTRIES1 A. Background Derivatives are commonly used for managing various risk exposures, including foreign exchange, interest rate, and credit risks. By allowing investors to unbundle and transfer these risks, derivatives contribute to a more efficient allocation of capital, in many cases reduce market and portfolio volatility, facilitate cross-border capital flows, and create more opportunities for portfolio diversification. Despite rapid growth over the past several years, Emerging Market (EM) derivatives account for only about 10 percent of the total outstanding notional values in global derivatives markets. Compared to mature markets, the ratio of outstanding notional value of derivatives to market capitalization of the underlying asset markets is fairly small in most emerging economies and is mainly focused on sovereign risks. The most common issues that challenge the development of local derivatives markets are (i) relatively underdeveloped markets for the underlying assets; (ii) lack of adequate regulatory, legal and market infrastructure, and (iii) restrictions on the use of derivatives by local and foreign entities.2 The problem of misuse of derivatives is perceived to be more acute in emerging market countries where prudential regulation, credit information infrastructure, and risk management practices are not fully developed and maybe in conflict with reasonable economic, investment or portfolio objectives. This...
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