Saturday, March 21, 2020
The Typical Practices Employed by Chinese Companies in Africa
The Typical Practices Employed by Chinese Companies in Africa Introduction China is one of the fastest growing economies in the world. In the last three decades, China experienced a rapid growth in its gross domestic product (GDP). This growth was characterized by a rapid expansion of both domestic and foreign companies in China. The companies focused on serving all market segments in order to increase their revenues. This has led to the saturation of most industries in China.Advertising We will write a custom essay sample on The Typical Practices Employed by Chinese Companies in Africa specifically for you for only $16.05 $11/page Learn More Consequently, most Chinese companies have had to look for alternative investment destinations. In this regard, Chinese firms have embarked on overseas investments through acquisitions and foreign direct investments (Mobius 2011). Africa is one of the destinations that have benefited from the Chinese companiesââ¬â¢ growth plans. Even though the Chinese companies that are operati ng in Africa have contributed to economic growth, their operations have always been associated with malpractices such as poor pay. This paper sheds light on the practices that have been employed by the Chinese companies in Africa. The Practices of Chinese Companies in Africa Chinese companies have always been associated with labor malpractices in Africa. Such malpractices include poor pay, long shifts and physical harassment of employees. Workers in Chinese companies often complain of deplorable work environments and exposure to health hazards. These allegations are likely to be true since most of them are based on empirical research findings. However, the occurrence of these malpractices varies from country to country (Polgreen French 2007). Chinese companies can be found in nearly all African countries. However, complains about labor malpractices or unethical behavior are common in countries with weak governance systems. For example, Zimbabwe is led by a dictatorial regime that h as little regard for its citizensââ¬â¢ welfare. Consequently, the government has never taken any disciplinary action on the Chinese companies. On the country, Chinese companies in stable countries such as Kenya and South Africa have hardly been accused of any unethical behavior. Thus, the unethical behaviors of the Chinese companies can be attributed to poor governance in specific countries in Africa. For instance, corruption is one of the factors that prevent most African countries from taking disciplinary action against Chinese companies.Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More It is apparent that not all Chinese companies usually engage in malpractices in Africa. Generally, cases of unethical behavior are common among companies that are operating in labor intensive industries such as the mining sector (Polgreen French 2007). For example, in Zimbabwe the complaints w ere raised against a Chinese construction company. This can be attributed to the fact that workers in this sector lack adequate education. Thus, they often tolerate the Chinese malpractices in order to protect their jobs. Finally, the malpractices can be attributed to the business culture of the Chinese companies. Long shifts are common in China where the Confucianism philosophy encourages hard work. Africaââ¬â¢s Attractiveness to Chinese Companies The factors that have contributed to the increase in the number of Chinese companies in Africa include the following. First, the demand for commodities such as oil, gold and copper is very high in China due to the rapid growth of its economy (Mobius 2011). The rapid growth in the countryââ¬â¢s population has also increased the demand for foodstuffs. Africa has adequate land for food production. Additionally, it is rich in various minerals and raw materials. Consequently, Chinese companies are moving to Africa in order to extract min erals and raw materials. Moreover, they are interested in importing agricultural produce from Africa. Nearly 80% of exports from Africa to China are raw materials and agricultural produce. The Chinese government has negotiated trade agreements with over 45 African countries in order to facilitate exportation of commodities from Africa to China. Second, most African leaders have focused on establishing close relationships with the Chinese government. African leaders believe that they can learn important lessons from China in regard to development. The Chinese government has embarked on supporting African states by financing the construction of infrastructure such as roads, ports and railway systems. These facilities are often constructed by the Chinese companies since African firms lack the capacity to construct them. This explains the sharp increase in the number of Chinese construction companies in Africa. Third, positive economic growth in Africa has presented growth opportunities to Chinese companies. Disposable income in Africa has been rising steadily in the last decade. Moreover, the expansion of the manufacturing and agricultural sectors has increased the demand for machines and equipment in Africa. China has been able to produce cheap machines and consumer goods (Etzkowitz 2011, pp. 76-90).Advertising We will write a custom essay sample on The Typical Practices Employed by Chinese Companies in Africa specifically for you for only $16.05 $11/page Learn More Hence, most African countries are importing machines and equipment from China. Most Chinese producers are relocating to Africa in order to improve the competitiveness of their products by eliminating exportation costs. Some companies have established retail outlets in Africa in order to maintain full control of their products and services. Fourth, China is interested in investing its foreign reserves in different economies in order to avoid the risks associated with investin g in one economy. The Chinese government has focused on giving credit to African countries at relatively low interest rates. The loans are normally processed by Chinese banks. This has led to an increase in the number of Chinese banks in Africa. Finally, tourism has attracted several Chinese companies to Africa (WTO 2010, pp. 1-51). The African continent has some of the best tourism destinations in the world. However, African firms lack the capital and the technology to serve the tourism industry. The Chinese companies have taken advantage of this situation by increasing their investments in Africaââ¬â¢s tourism industry. For instance, Chinese restaurants can be found in nearly all capital cities in Africa. Moreover, Chinese airlines are operating in nearly all major cities in Africa. Staffing Strategies Ethnocentric Staffing Strategy In this strategy, the holders of key positions in an overseas subsidiary of a multinational corporation are recruited from the companyââ¬â¢s par ent country. This means that the managers of the subsidiary will be expatriates. The local citizens, on the other hand, are expected to fill the non-managerial positions. The advantages of this strategy include the following. To begin with, it enables managers to transfer the headquartersââ¬â¢ business culture to overseas subsidiaries in order to prevent cultural conflicts. Managers from the parent country are likely to have a better understanding of the headquartersââ¬â¢ organizational structure than local citizens. In this regard, employing expatriates facilitates implementation of the policies that are formulated by the companyââ¬â¢s headquarters. The ethnocentric staffing strategy promotes effective communication between the companyââ¬â¢s headquarters and the overseas subsidiaries (Bechet 2008, p. 123). This is because the expatriate managers are likely to have a good command of the language that is used at the headquarters.Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More For example, most Chinese companies in Africa employ Chinese managers because most Africans have little knowledge of the languages that are used in China. The ethnocentric staffing strategy is important in economies with inadequate supply of talented or skilled employees. In this case, employing expatriates will enable the company to save the cost of training the locals before employing them. Finally, employing expatriates enables the headquarters to maintain its control of the subsidiaries. Despite its benefits, the ethnocentric staffing strategy has the following disadvantages. To begin with, it limits the career growth opportunities of local managers because the top positions must be filled by expatriates (Bechet 2008, p. 126). This can cause dissatisfaction and a high turnover rate in the company. The strategy also interferes with the private lives of the expatriates. For example, they might be separated from their families for a very long time. Finally, expatriates from the par ent country are often insensitive to the expectations of the host country employees. This can create tensions and high dissatisfaction among employees. Polycentric Staffing Strategy In this strategy, citizens of the host country are employed to manage the overseas subsidiary of a multinational corporation. Expatriates are hardly given the responsibility of managing overseas subsidiaries. The advantages of this approach include the following. First, it helps in eliminating language barriers that normally occur when expatriates are sent to overseas subsidiaries (Bechet 2008, p. 127). Second, employing the nationals of the host country is less expensive as compared to hiring expatriates. Third, it promotes career growth among the nationals of the host country. This helps in enhancing staff commitment and loyalty. The disadvantages of this strategy include the following. First, maintaining effective communication between the headquarters and the subsidiary can be difficult due to langua ge barriers. Second, the headquarters is likely to lose control of the subsidiary if the employees from the host country have weak links with the head-office (Bechet 2008, p. 128). Finally, the polycentric strategy denies the employees the opportunity to gain international experience. Geocentric Staffing Strategy The application of this strategy involves filling key positions by promoting the best performing employees in the organization (Glasgow 2001, p. 45). The employees are promoted regardless of their nationality. The main advantage of this strategy is that it enables the company to create a pool of talented international managers. Its disadvantages include the following. To begin with, implementing the strategy can be difficult because the labor laws in the host country might require the company to hire the locals. It is also associated with high training and relocation costs. Region-centric Strategy In this strategy, employees are transferred to subsidiaries in a different co untry, but within the same region. The main advantage of this strategy is that it enables managers to compete for positions at the regional level. This promotes high productivity (Glasgow 2001, p. 46). However, it can be difficult to implement due to the high relocation costs that are associated with it. Diversity Management Approaches Diversity management initiatives facilitate cohesion in a multicultural workforce (Forbes 2012). However, most Chinese corporations that are operating in the African market do not consider diversity management as an important organizational function. Thus, most of them do not have a diversity management plan or strategy. The diversity management programs in most Chinese companies focus on conflict resolution. The companies normally establish conflict resolution committees whose members are drawn from various departments. These committees are responsible for handling any conflicts that might arise between the African employees and their Chinese counter parts. Recruiting African workers is one of the methods that the companies are using to promote diversity. They usually allocate a specific number of positions to Africans. The remaining positions are reserved for Chinese workers. Moreover, senior management positions are usually reserved for Chinese expatriates. In most cases, Chinese companies hire Africans in order to comply with labor laws rather than promoting diversity (Cooke Saini 2012, pp. 16-32). Generally, language barrier is the main factor that prevents Chinese companies from implementing diversity programs. In a nutshell, Africans and Chinese can not communicate easily since they hardly speak the same language. Hence, the Chinese companies prefer to employ their nationals. In some companies, diversity training programs are used to teach a common language that can be used by everyone in the company. Companies with effective diversity programs focus on succession planning. In this case, Africans who are expected to succe ed Chinese nationals are usually trained before they assume their positions. The trainings usually focus on the Chinese business culture and the language that is used in the companyââ¬â¢s headquarters. Culture Shock The Chinese business culture is significantly different from that in Africa. Some of the distinctions between the two cultures and their effects on Chinese employees include the following. First, Africans focus on achieving organizational goals in the short term. The Chinese, on the other hand, focus on achieving the goals in the long term. The effect of this difference is that the Chinese employees often disagree with their African counterparts on the goals that should be achieved and the methods that must be used to achieve them. Second, Africans believe in a professional management system in which recruitments are based on qualifications (Cooke Saini 2012, pp. 16-32). The Chinese, on the other hand, believe that senior managers must be hired from the family that o wns the business. In this case, Chinese employees tend to disregard human resource policies that advocate for equal employment opportunity. Finally, most Africans are able to speak international languages such as English. However, most Chinese can not speak in English. In most African countries, English is the official language that is used to conduct business. Consequently, most Chinese workers find it difficult to give instructions or to understand feedbacks from African workers. Conclusion Chinese companies are joining the African market in order to increase their revenues. The factors that are attracting Chinese companies to Africa include availability of raw materials such as minerals and oil. Africa has a high demand for Chinese machines which are often cheap and easy to use. Additionally, the demand for consumer goods in Africa is always increasing. These factors make Africa an ideal investment destination for the Chinese companies. Even though Chinese companies have contribu ted to economic growth in Africa, they have also been accused of engaging in unethical business practices (Polgreen French 2007). Poor governance in Africa is one of the factors that encourage Chinese companies to engage in malpractices. Most Chinese companies use the ethnocentric staffing strategy. Consequently, they lack effective diversity management programs. References Bechet, T 2008, Strategic Staffing, McGraw-Hill, New York. Cooke, L Saini, D 2012, ââ¬ËManaging Diversity in Chinese and Indian Organizationsââ¬â¢, Journal of Chinese Human Resource Management, vol. 3 no. 1, pp. 16-32. Etzkowitz, H 2012, ââ¬ËThe Triple Helix: Science, Technology and the Entrepreneurial Spiritââ¬â¢, Journal of Knowledge-Based Innovation in China, vol. 3 no. 2, pp. 76-90. Forbes 2012, Global Diversity and Inclusion. Web. Glasgow, K 2001, A Strategic Model of Temporary Staffing, McGraw-Hill, New York. Mobius 2011, Chinaââ¬â¢s Growing Presence in Africa. Web. Polgreen, L French, H 2 007, Chinaââ¬â¢s Trade in Africa Carries a Price Tag. Web. WTO 2010, Study on Chinese Outbound Travel to Africa. Web.
The Typical Practices Employed by Chinese Companies in Africa
The Typical Practices Employed by Chinese Companies in Africa Introduction China is one of the fastest growing economies in the world. In the last three decades, China experienced a rapid growth in its gross domestic product (GDP). This growth was characterized by a rapid expansion of both domestic and foreign companies in China. The companies focused on serving all market segments in order to increase their revenues. This has led to the saturation of most industries in China.Advertising We will write a custom essay sample on The Typical Practices Employed by Chinese Companies in Africa specifically for you for only $16.05 $11/page Learn More Consequently, most Chinese companies have had to look for alternative investment destinations. In this regard, Chinese firms have embarked on overseas investments through acquisitions and foreign direct investments (Mobius 2011). Africa is one of the destinations that have benefited from the Chinese companiesââ¬â¢ growth plans. Even though the Chinese companies that are operati ng in Africa have contributed to economic growth, their operations have always been associated with malpractices such as poor pay. This paper sheds light on the practices that have been employed by the Chinese companies in Africa. The Practices of Chinese Companies in Africa Chinese companies have always been associated with labor malpractices in Africa. Such malpractices include poor pay, long shifts and physical harassment of employees. Workers in Chinese companies often complain of deplorable work environments and exposure to health hazards. These allegations are likely to be true since most of them are based on empirical research findings. However, the occurrence of these malpractices varies from country to country (Polgreen French 2007). Chinese companies can be found in nearly all African countries. However, complains about labor malpractices or unethical behavior are common in countries with weak governance systems. For example, Zimbabwe is led by a dictatorial regime that h as little regard for its citizensââ¬â¢ welfare. Consequently, the government has never taken any disciplinary action on the Chinese companies. On the country, Chinese companies in stable countries such as Kenya and South Africa have hardly been accused of any unethical behavior. Thus, the unethical behaviors of the Chinese companies can be attributed to poor governance in specific countries in Africa. For instance, corruption is one of the factors that prevent most African countries from taking disciplinary action against Chinese companies.Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More It is apparent that not all Chinese companies usually engage in malpractices in Africa. Generally, cases of unethical behavior are common among companies that are operating in labor intensive industries such as the mining sector (Polgreen French 2007). For example, in Zimbabwe the complaints w ere raised against a Chinese construction company. This can be attributed to the fact that workers in this sector lack adequate education. Thus, they often tolerate the Chinese malpractices in order to protect their jobs. Finally, the malpractices can be attributed to the business culture of the Chinese companies. Long shifts are common in China where the Confucianism philosophy encourages hard work. Africaââ¬â¢s Attractiveness to Chinese Companies The factors that have contributed to the increase in the number of Chinese companies in Africa include the following. First, the demand for commodities such as oil, gold and copper is very high in China due to the rapid growth of its economy (Mobius 2011). The rapid growth in the countryââ¬â¢s population has also increased the demand for foodstuffs. Africa has adequate land for food production. Additionally, it is rich in various minerals and raw materials. Consequently, Chinese companies are moving to Africa in order to extract min erals and raw materials. Moreover, they are interested in importing agricultural produce from Africa. Nearly 80% of exports from Africa to China are raw materials and agricultural produce. The Chinese government has negotiated trade agreements with over 45 African countries in order to facilitate exportation of commodities from Africa to China. Second, most African leaders have focused on establishing close relationships with the Chinese government. African leaders believe that they can learn important lessons from China in regard to development. The Chinese government has embarked on supporting African states by financing the construction of infrastructure such as roads, ports and railway systems. These facilities are often constructed by the Chinese companies since African firms lack the capacity to construct them. This explains the sharp increase in the number of Chinese construction companies in Africa. Third, positive economic growth in Africa has presented growth opportunities to Chinese companies. Disposable income in Africa has been rising steadily in the last decade. Moreover, the expansion of the manufacturing and agricultural sectors has increased the demand for machines and equipment in Africa. China has been able to produce cheap machines and consumer goods (Etzkowitz 2011, pp. 76-90).Advertising We will write a custom essay sample on The Typical Practices Employed by Chinese Companies in Africa specifically for you for only $16.05 $11/page Learn More Hence, most African countries are importing machines and equipment from China. Most Chinese producers are relocating to Africa in order to improve the competitiveness of their products by eliminating exportation costs. Some companies have established retail outlets in Africa in order to maintain full control of their products and services. Fourth, China is interested in investing its foreign reserves in different economies in order to avoid the risks associated with investin g in one economy. The Chinese government has focused on giving credit to African countries at relatively low interest rates. The loans are normally processed by Chinese banks. This has led to an increase in the number of Chinese banks in Africa. Finally, tourism has attracted several Chinese companies to Africa (WTO 2010, pp. 1-51). The African continent has some of the best tourism destinations in the world. However, African firms lack the capital and the technology to serve the tourism industry. The Chinese companies have taken advantage of this situation by increasing their investments in Africaââ¬â¢s tourism industry. For instance, Chinese restaurants can be found in nearly all capital cities in Africa. Moreover, Chinese airlines are operating in nearly all major cities in Africa. Staffing Strategies Ethnocentric Staffing Strategy In this strategy, the holders of key positions in an overseas subsidiary of a multinational corporation are recruited from the companyââ¬â¢s par ent country. This means that the managers of the subsidiary will be expatriates. The local citizens, on the other hand, are expected to fill the non-managerial positions. The advantages of this strategy include the following. To begin with, it enables managers to transfer the headquartersââ¬â¢ business culture to overseas subsidiaries in order to prevent cultural conflicts. Managers from the parent country are likely to have a better understanding of the headquartersââ¬â¢ organizational structure than local citizens. In this regard, employing expatriates facilitates implementation of the policies that are formulated by the companyââ¬â¢s headquarters. The ethnocentric staffing strategy promotes effective communication between the companyââ¬â¢s headquarters and the overseas subsidiaries (Bechet 2008, p. 123). This is because the expatriate managers are likely to have a good command of the language that is used at the headquarters.Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More For example, most Chinese companies in Africa employ Chinese managers because most Africans have little knowledge of the languages that are used in China. The ethnocentric staffing strategy is important in economies with inadequate supply of talented or skilled employees. In this case, employing expatriates will enable the company to save the cost of training the locals before employing them. Finally, employing expatriates enables the headquarters to maintain its control of the subsidiaries. Despite its benefits, the ethnocentric staffing strategy has the following disadvantages. To begin with, it limits the career growth opportunities of local managers because the top positions must be filled by expatriates (Bechet 2008, p. 126). This can cause dissatisfaction and a high turnover rate in the company. The strategy also interferes with the private lives of the expatriates. For example, they might be separated from their families for a very long time. Finally, expatriates from the par ent country are often insensitive to the expectations of the host country employees. This can create tensions and high dissatisfaction among employees. Polycentric Staffing Strategy In this strategy, citizens of the host country are employed to manage the overseas subsidiary of a multinational corporation. Expatriates are hardly given the responsibility of managing overseas subsidiaries. The advantages of this approach include the following. First, it helps in eliminating language barriers that normally occur when expatriates are sent to overseas subsidiaries (Bechet 2008, p. 127). Second, employing the nationals of the host country is less expensive as compared to hiring expatriates. Third, it promotes career growth among the nationals of the host country. This helps in enhancing staff commitment and loyalty. The disadvantages of this strategy include the following. First, maintaining effective communication between the headquarters and the subsidiary can be difficult due to langua ge barriers. Second, the headquarters is likely to lose control of the subsidiary if the employees from the host country have weak links with the head-office (Bechet 2008, p. 128). Finally, the polycentric strategy denies the employees the opportunity to gain international experience. Geocentric Staffing Strategy The application of this strategy involves filling key positions by promoting the best performing employees in the organization (Glasgow 2001, p. 45). The employees are promoted regardless of their nationality. The main advantage of this strategy is that it enables the company to create a pool of talented international managers. Its disadvantages include the following. To begin with, implementing the strategy can be difficult because the labor laws in the host country might require the company to hire the locals. It is also associated with high training and relocation costs. Region-centric Strategy In this strategy, employees are transferred to subsidiaries in a different co untry, but within the same region. The main advantage of this strategy is that it enables managers to compete for positions at the regional level. This promotes high productivity (Glasgow 2001, p. 46). However, it can be difficult to implement due to the high relocation costs that are associated with it. Diversity Management Approaches Diversity management initiatives facilitate cohesion in a multicultural workforce (Forbes 2012). However, most Chinese corporations that are operating in the African market do not consider diversity management as an important organizational function. Thus, most of them do not have a diversity management plan or strategy. The diversity management programs in most Chinese companies focus on conflict resolution. The companies normally establish conflict resolution committees whose members are drawn from various departments. These committees are responsible for handling any conflicts that might arise between the African employees and their Chinese counter parts. Recruiting African workers is one of the methods that the companies are using to promote diversity. They usually allocate a specific number of positions to Africans. The remaining positions are reserved for Chinese workers. Moreover, senior management positions are usually reserved for Chinese expatriates. In most cases, Chinese companies hire Africans in order to comply with labor laws rather than promoting diversity (Cooke Saini 2012, pp. 16-32). Generally, language barrier is the main factor that prevents Chinese companies from implementing diversity programs. In a nutshell, Africans and Chinese can not communicate easily since they hardly speak the same language. Hence, the Chinese companies prefer to employ their nationals. In some companies, diversity training programs are used to teach a common language that can be used by everyone in the company. Companies with effective diversity programs focus on succession planning. In this case, Africans who are expected to succe ed Chinese nationals are usually trained before they assume their positions. The trainings usually focus on the Chinese business culture and the language that is used in the companyââ¬â¢s headquarters. Culture Shock The Chinese business culture is significantly different from that in Africa. Some of the distinctions between the two cultures and their effects on Chinese employees include the following. First, Africans focus on achieving organizational goals in the short term. The Chinese, on the other hand, focus on achieving the goals in the long term. The effect of this difference is that the Chinese employees often disagree with their African counterparts on the goals that should be achieved and the methods that must be used to achieve them. Second, Africans believe in a professional management system in which recruitments are based on qualifications (Cooke Saini 2012, pp. 16-32). The Chinese, on the other hand, believe that senior managers must be hired from the family that o wns the business. In this case, Chinese employees tend to disregard human resource policies that advocate for equal employment opportunity. Finally, most Africans are able to speak international languages such as English. However, most Chinese can not speak in English. In most African countries, English is the official language that is used to conduct business. Consequently, most Chinese workers find it difficult to give instructions or to understand feedbacks from African workers. Conclusion Chinese companies are joining the African market in order to increase their revenues. The factors that are attracting Chinese companies to Africa include availability of raw materials such as minerals and oil. Africa has a high demand for Chinese machines which are often cheap and easy to use. Additionally, the demand for consumer goods in Africa is always increasing. These factors make Africa an ideal investment destination for the Chinese companies. Even though Chinese companies have contribu ted to economic growth in Africa, they have also been accused of engaging in unethical business practices (Polgreen French 2007). Poor governance in Africa is one of the factors that encourage Chinese companies to engage in malpractices. Most Chinese companies use the ethnocentric staffing strategy. Consequently, they lack effective diversity management programs. References Bechet, T 2008, Strategic Staffing, McGraw-Hill, New York. Cooke, L Saini, D 2012, ââ¬ËManaging Diversity in Chinese and Indian Organizationsââ¬â¢, Journal of Chinese Human Resource Management, vol. 3 no. 1, pp. 16-32. Etzkowitz, H 2012, ââ¬ËThe Triple Helix: Science, Technology and the Entrepreneurial Spiritââ¬â¢, Journal of Knowledge-Based Innovation in China, vol. 3 no. 2, pp. 76-90. Forbes 2012, Global Diversity and Inclusion. Web. Glasgow, K 2001, A Strategic Model of Temporary Staffing, McGraw-Hill, New York. Mobius 2011, Chinaââ¬â¢s Growing Presence in Africa. Web. Polgreen, L French, H 2 007, Chinaââ¬â¢s Trade in Africa Carries a Price Tag. Web. WTO 2010, Study on Chinese Outbound Travel to Africa. Web.
The Typical Practices Employed by Chinese Companies in Africa
The Typical Practices Employed by Chinese Companies in Africa Introduction China is one of the fastest growing economies in the world. In the last three decades, China experienced a rapid growth in its gross domestic product (GDP). This growth was characterized by a rapid expansion of both domestic and foreign companies in China. The companies focused on serving all market segments in order to increase their revenues. This has led to the saturation of most industries in China.Advertising We will write a custom essay sample on The Typical Practices Employed by Chinese Companies in Africa specifically for you for only $16.05 $11/page Learn More Consequently, most Chinese companies have had to look for alternative investment destinations. In this regard, Chinese firms have embarked on overseas investments through acquisitions and foreign direct investments (Mobius 2011). Africa is one of the destinations that have benefited from the Chinese companiesââ¬â¢ growth plans. Even though the Chinese companies that are operati ng in Africa have contributed to economic growth, their operations have always been associated with malpractices such as poor pay. This paper sheds light on the practices that have been employed by the Chinese companies in Africa. The Practices of Chinese Companies in Africa Chinese companies have always been associated with labor malpractices in Africa. Such malpractices include poor pay, long shifts and physical harassment of employees. Workers in Chinese companies often complain of deplorable work environments and exposure to health hazards. These allegations are likely to be true since most of them are based on empirical research findings. However, the occurrence of these malpractices varies from country to country (Polgreen French 2007). Chinese companies can be found in nearly all African countries. However, complains about labor malpractices or unethical behavior are common in countries with weak governance systems. For example, Zimbabwe is led by a dictatorial regime that h as little regard for its citizensââ¬â¢ welfare. Consequently, the government has never taken any disciplinary action on the Chinese companies. On the country, Chinese companies in stable countries such as Kenya and South Africa have hardly been accused of any unethical behavior. Thus, the unethical behaviors of the Chinese companies can be attributed to poor governance in specific countries in Africa. For instance, corruption is one of the factors that prevent most African countries from taking disciplinary action against Chinese companies.Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More It is apparent that not all Chinese companies usually engage in malpractices in Africa. Generally, cases of unethical behavior are common among companies that are operating in labor intensive industries such as the mining sector (Polgreen French 2007). For example, in Zimbabwe the complaints w ere raised against a Chinese construction company. This can be attributed to the fact that workers in this sector lack adequate education. Thus, they often tolerate the Chinese malpractices in order to protect their jobs. Finally, the malpractices can be attributed to the business culture of the Chinese companies. Long shifts are common in China where the Confucianism philosophy encourages hard work. Africaââ¬â¢s Attractiveness to Chinese Companies The factors that have contributed to the increase in the number of Chinese companies in Africa include the following. First, the demand for commodities such as oil, gold and copper is very high in China due to the rapid growth of its economy (Mobius 2011). The rapid growth in the countryââ¬â¢s population has also increased the demand for foodstuffs. Africa has adequate land for food production. Additionally, it is rich in various minerals and raw materials. Consequently, Chinese companies are moving to Africa in order to extract min erals and raw materials. Moreover, they are interested in importing agricultural produce from Africa. Nearly 80% of exports from Africa to China are raw materials and agricultural produce. The Chinese government has negotiated trade agreements with over 45 African countries in order to facilitate exportation of commodities from Africa to China. Second, most African leaders have focused on establishing close relationships with the Chinese government. African leaders believe that they can learn important lessons from China in regard to development. The Chinese government has embarked on supporting African states by financing the construction of infrastructure such as roads, ports and railway systems. These facilities are often constructed by the Chinese companies since African firms lack the capacity to construct them. This explains the sharp increase in the number of Chinese construction companies in Africa. Third, positive economic growth in Africa has presented growth opportunities to Chinese companies. Disposable income in Africa has been rising steadily in the last decade. Moreover, the expansion of the manufacturing and agricultural sectors has increased the demand for machines and equipment in Africa. China has been able to produce cheap machines and consumer goods (Etzkowitz 2011, pp. 76-90).Advertising We will write a custom essay sample on The Typical Practices Employed by Chinese Companies in Africa specifically for you for only $16.05 $11/page Learn More Hence, most African countries are importing machines and equipment from China. Most Chinese producers are relocating to Africa in order to improve the competitiveness of their products by eliminating exportation costs. Some companies have established retail outlets in Africa in order to maintain full control of their products and services. Fourth, China is interested in investing its foreign reserves in different economies in order to avoid the risks associated with investin g in one economy. The Chinese government has focused on giving credit to African countries at relatively low interest rates. The loans are normally processed by Chinese banks. This has led to an increase in the number of Chinese banks in Africa. Finally, tourism has attracted several Chinese companies to Africa (WTO 2010, pp. 1-51). The African continent has some of the best tourism destinations in the world. However, African firms lack the capital and the technology to serve the tourism industry. The Chinese companies have taken advantage of this situation by increasing their investments in Africaââ¬â¢s tourism industry. For instance, Chinese restaurants can be found in nearly all capital cities in Africa. Moreover, Chinese airlines are operating in nearly all major cities in Africa. Staffing Strategies Ethnocentric Staffing Strategy In this strategy, the holders of key positions in an overseas subsidiary of a multinational corporation are recruited from the companyââ¬â¢s par ent country. This means that the managers of the subsidiary will be expatriates. The local citizens, on the other hand, are expected to fill the non-managerial positions. The advantages of this strategy include the following. To begin with, it enables managers to transfer the headquartersââ¬â¢ business culture to overseas subsidiaries in order to prevent cultural conflicts. Managers from the parent country are likely to have a better understanding of the headquartersââ¬â¢ organizational structure than local citizens. In this regard, employing expatriates facilitates implementation of the policies that are formulated by the companyââ¬â¢s headquarters. The ethnocentric staffing strategy promotes effective communication between the companyââ¬â¢s headquarters and the overseas subsidiaries (Bechet 2008, p. 123). This is because the expatriate managers are likely to have a good command of the language that is used at the headquarters.Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More For example, most Chinese companies in Africa employ Chinese managers because most Africans have little knowledge of the languages that are used in China. The ethnocentric staffing strategy is important in economies with inadequate supply of talented or skilled employees. In this case, employing expatriates will enable the company to save the cost of training the locals before employing them. Finally, employing expatriates enables the headquarters to maintain its control of the subsidiaries. Despite its benefits, the ethnocentric staffing strategy has the following disadvantages. To begin with, it limits the career growth opportunities of local managers because the top positions must be filled by expatriates (Bechet 2008, p. 126). This can cause dissatisfaction and a high turnover rate in the company. The strategy also interferes with the private lives of the expatriates. For example, they might be separated from their families for a very long time. Finally, expatriates from the par ent country are often insensitive to the expectations of the host country employees. This can create tensions and high dissatisfaction among employees. Polycentric Staffing Strategy In this strategy, citizens of the host country are employed to manage the overseas subsidiary of a multinational corporation. Expatriates are hardly given the responsibility of managing overseas subsidiaries. The advantages of this approach include the following. First, it helps in eliminating language barriers that normally occur when expatriates are sent to overseas subsidiaries (Bechet 2008, p. 127). Second, employing the nationals of the host country is less expensive as compared to hiring expatriates. Third, it promotes career growth among the nationals of the host country. This helps in enhancing staff commitment and loyalty. The disadvantages of this strategy include the following. First, maintaining effective communication between the headquarters and the subsidiary can be difficult due to langua ge barriers. Second, the headquarters is likely to lose control of the subsidiary if the employees from the host country have weak links with the head-office (Bechet 2008, p. 128). Finally, the polycentric strategy denies the employees the opportunity to gain international experience. Geocentric Staffing Strategy The application of this strategy involves filling key positions by promoting the best performing employees in the organization (Glasgow 2001, p. 45). The employees are promoted regardless of their nationality. The main advantage of this strategy is that it enables the company to create a pool of talented international managers. Its disadvantages include the following. To begin with, implementing the strategy can be difficult because the labor laws in the host country might require the company to hire the locals. It is also associated with high training and relocation costs. Region-centric Strategy In this strategy, employees are transferred to subsidiaries in a different co untry, but within the same region. The main advantage of this strategy is that it enables managers to compete for positions at the regional level. This promotes high productivity (Glasgow 2001, p. 46). However, it can be difficult to implement due to the high relocation costs that are associated with it. Diversity Management Approaches Diversity management initiatives facilitate cohesion in a multicultural workforce (Forbes 2012). However, most Chinese corporations that are operating in the African market do not consider diversity management as an important organizational function. Thus, most of them do not have a diversity management plan or strategy. The diversity management programs in most Chinese companies focus on conflict resolution. The companies normally establish conflict resolution committees whose members are drawn from various departments. These committees are responsible for handling any conflicts that might arise between the African employees and their Chinese counter parts. Recruiting African workers is one of the methods that the companies are using to promote diversity. They usually allocate a specific number of positions to Africans. The remaining positions are reserved for Chinese workers. Moreover, senior management positions are usually reserved for Chinese expatriates. In most cases, Chinese companies hire Africans in order to comply with labor laws rather than promoting diversity (Cooke Saini 2012, pp. 16-32). Generally, language barrier is the main factor that prevents Chinese companies from implementing diversity programs. In a nutshell, Africans and Chinese can not communicate easily since they hardly speak the same language. Hence, the Chinese companies prefer to employ their nationals. In some companies, diversity training programs are used to teach a common language that can be used by everyone in the company. Companies with effective diversity programs focus on succession planning. In this case, Africans who are expected to succe ed Chinese nationals are usually trained before they assume their positions. The trainings usually focus on the Chinese business culture and the language that is used in the companyââ¬â¢s headquarters. Culture Shock The Chinese business culture is significantly different from that in Africa. Some of the distinctions between the two cultures and their effects on Chinese employees include the following. First, Africans focus on achieving organizational goals in the short term. The Chinese, on the other hand, focus on achieving the goals in the long term. The effect of this difference is that the Chinese employees often disagree with their African counterparts on the goals that should be achieved and the methods that must be used to achieve them. Second, Africans believe in a professional management system in which recruitments are based on qualifications (Cooke Saini 2012, pp. 16-32). The Chinese, on the other hand, believe that senior managers must be hired from the family that o wns the business. In this case, Chinese employees tend to disregard human resource policies that advocate for equal employment opportunity. Finally, most Africans are able to speak international languages such as English. However, most Chinese can not speak in English. In most African countries, English is the official language that is used to conduct business. Consequently, most Chinese workers find it difficult to give instructions or to understand feedbacks from African workers. Conclusion Chinese companies are joining the African market in order to increase their revenues. The factors that are attracting Chinese companies to Africa include availability of raw materials such as minerals and oil. Africa has a high demand for Chinese machines which are often cheap and easy to use. Additionally, the demand for consumer goods in Africa is always increasing. These factors make Africa an ideal investment destination for the Chinese companies. Even though Chinese companies have contribu ted to economic growth in Africa, they have also been accused of engaging in unethical business practices (Polgreen French 2007). Poor governance in Africa is one of the factors that encourage Chinese companies to engage in malpractices. Most Chinese companies use the ethnocentric staffing strategy. Consequently, they lack effective diversity management programs. References Bechet, T 2008, Strategic Staffing, McGraw-Hill, New York. Cooke, L Saini, D 2012, ââ¬ËManaging Diversity in Chinese and Indian Organizationsââ¬â¢, Journal of Chinese Human Resource Management, vol. 3 no. 1, pp. 16-32. Etzkowitz, H 2012, ââ¬ËThe Triple Helix: Science, Technology and the Entrepreneurial Spiritââ¬â¢, Journal of Knowledge-Based Innovation in China, vol. 3 no. 2, pp. 76-90. Forbes 2012, Global Diversity and Inclusion. Web. Glasgow, K 2001, A Strategic Model of Temporary Staffing, McGraw-Hill, New York. Mobius 2011, Chinaââ¬â¢s Growing Presence in Africa. Web. Polgreen, L French, H 2 007, Chinaââ¬â¢s Trade in Africa Carries a Price Tag. Web. WTO 2010, Study on Chinese Outbound Travel to Africa. Web.
Wednesday, March 4, 2020
The Religious Right Definition and Issues
The Religious Right Definition and Issues The movement generally referred to in the U.S. as the Religious Right came of age in the late 1970s. While its extremely diverse and shouldnt be characterized in simple terms, its an ultraconservative religious response to the sexual revolution. Its a response to events that are seen by Religious Right proponents as being connected to the sexual revolution. Its goal is to effect this religious response as public policy. Family Values From a Religious Right perspective, the sexual revolution has brought American culture to a fork in the road. Either the American people can endorse a traditional and religious institution of family and the values of loyalty and self-sacrifice along with it, or they can endorse a secular hedonistic lifestyle grounded in self-gratification and with it a profound moral nihilism. Proponents of the Religious Rights approach to public policy do not tend to see any broadly applicable alternatives to these two possibilities- such as a hedonistic religious culture or a deeply moral secular culture- for religious reasons. Abortion If the modern Religious Right had a birthday, it would be January 22, 1973. That was the day the Supreme Court handed down its ruling in Roe v. Wade, establishing that all women have the right to choose to have an abortion. For many religious conservatives, this was the ultimate extension of the sexual revolution- the idea that sexual and reproductive freedom could be used to defend what many religious conservatives consider to be murder. Lesbian and Gay Rights Religious Right proponents tend to blame the sexual revolution for increasing social acceptance of homosexuality, which some religious conservatives regard as a contagious sin that can be spread to youth by exposure. Hostility toward lesbians and gay men reached a fever pitch in the movement during the 1980s and 1990s, but the movement has since transitioned into a calmer, more measured opposition to gay rights initiatives such asà same-sex marriage, civil unions, and nondiscrimination laws. Pornography The Religious Right has also tended to oppose the legalization and distribution of pornography. It considers it to be another decadent effect of the sexual revolution. Media Censorship While media censorship has not often been a central legislative policy position of the Religious Right, individual activists within the movement have historically seen the increase of sexual content on television as a dangerous symptom of and a sustaining force behind cultural acceptance of sexual promiscuity. Grassroots movements such as the Parents Television Council have taken aim at television programs that contain sexual content or that appear to condone sexual relations outside of marriage. Religion in Government The Religious Right is often associated with attempts to defend or reintroduce government-sponsored religious practices ranging from government-endorsed school prayer to government-funded religious monuments. But such policy controversies are generally seen within the Religious Right community as symbolic battles, representing flashpoints in the culture war between religious supporters of family values and secular supporters of hedonistic culture. The Religious Right and Neoconservatism Some leaders within the Religious Rightà see theocratic movements within Islam as a greater threat than secular culture since the events of 9/11. The 700 Clubs Rev. Pat Robertson endorsed thrice-divorced, pro-choice former New York City mayor Rudy Giuliani in the 2008 presidential elections because of Giulianis perceived tough stance against religion-motivated terrorism. The Future of the Religious Right The concept of the Religious Right has always been vague, nebulous, and vaguely insulting toward the tens of millions of evangelical voters who are most often counted among its ranks. Evangelical voters are as diverse as any other voting bloc, and the Religious Right as a movement- represented by organizations such as the Moral Majority and the Christian Coalition- never received evangelical voters ubiquitous support. Is the Religious Right a Threat?à It would be naive to say that the Religious Right no longer poses a threat to civil liberties, but it no longer poses the most serious threat to civil liberties- if it ever did. As the general atmosphere of obedience following the September 11 attacks demonstrated, all demographics can be manipulated by fear. Some religious conservatives are more motivated than most by the fear of a potentially hedonistic, nihilistic culture. The proper response to that fear is not to dismiss it but to help find more constructive ways to respond to it.
Monday, February 17, 2020
Circuits design and application Essay Example | Topics and Well Written Essays - 1250 words
Circuits design and application - Essay Example Here the output of the analyzer is audio, so it can use any scope for the display. The analyzer functions as a Tunable RF Voltmeter. This makes it function as a natural receiver / transmitter tracing signals. A display of the frequency is provided using the analyzer on a transmitter. Owing to the high sensitivity of the instrument signal tracing receiver circuits are permitted from the antenna through the low-level Radio Frequency stages. Whereas a conventional RF voltmeter adds up all the individual voltages as a summation without indicating the components it is not the case with a spectrum analyzer. Additionally the analyzer displays local oscillator signal and its frequency and injection levels. A tracking generator added to the basic spectrum analyzer makes a powerful receiver system for measurements of stimulus-responses. The tracking generator is a signal source whose RF output tracks the tuning of the analyzer. Since the instantaneous output frequency is matched with the input frequency of the analyzer, this swept frequency test system actually substitutes for an effective synchronous detector. This ideally caters to the measurement of the frequency response of devices such as amplifiers, attenuators, mixers, transmission lines, couplers and even antennas used with an external bridge. Two or more oscillators mixed together generate the output. Typical application of the tracking generator consists of the RF output being connected to the device under test and its output in turn connected to input of the spectrum analyzer. The display resulting is the instantaneous plotting of the frequency response of the device under test. If one were looking out for a CRT display all t hat was needed was a 3 digit readout that could display 0 to 500 MHZ directly covering anywhere from a few MHZ to several hundred. Besides the conventional all-digital circuit solution there exists an alternate solution based on the Precision Frequency-to-voltage converter IC, along with the output of the pre-scaler IC. This is a low cost alternative for directly displaying the received frequency of almost any receiver. Simple adjustments to a potentiometer is all that is required to accommodate any IF frequency from zero to hundreds of MHZ. When the circuit is designed with a digital voltmeter and the DVM set on the 20 volt scale, 0 to 500 MHZ will be displayed as 0.00 to 5.00 volts. Front Panel Layout Instead nowadays we have the digital panel meter module such as the above which is ideal and reads directly in MHZ. Typical Design specifications for a Spectrum Analyzer R3132: 9 kHz to 3 GHz R3132N: 9 kHz to 2.2 GHz (75 ohms) R3162: 9 kHz to 8 GHz Signal Purity - 105 dBc/Hz 20 kHz Offset 100 dBc/Hz 10 kHz Offset Total Level Accuracy - Maximum 1.5 dB High-speed GPIB, Effective for System Applications High Speed Measurement - 20 Traces per Second 6.5-inch TFT Color LCD Built-in Frequency Counter 3 GHz Tracking Generator (Option) Floppy Disk for Data Saving Large Numeric Display for Measurement Results (In Counter and Power Measurement Mode) Printer Port RS-232 Port VGA output 20 dB Preamp QP detector and EMC filtersSpectrum analyzers are used widely to make measurements of radio frequencies. Performances at high levels are guaranteed as compared to a few years ago.
Monday, February 3, 2020
The Repercussions of Substance Abuse in College Essay
The Repercussions of Substance Abuse in College - Essay Example Also, since I have been hearing many complaints flying rampant around the dormitory I do feel it is in everyone's best interest if I am the one to be the go between in this situation. Since the problems have been concreting upon each other, and causing disruption in the dormitory, I feel if I don't make a move quickly then the various drinking occurrences might be brought to the Dean's attention and I don't feel neither George nor Edward would want that to occur. Furthermore, as a personal friend of them both I believe that I owe it to them to help them find a resolution to their dilemma by communicating with both of them what the possible outcome of the situation could entail. My main goal is to express to them my disapproval in how each one of them appears to be ignoring the situation and neglecting to respect each other. I also aim to point out to them that these specific activities are disrupting not only their lives but the majority of the other college students routines as well by allowing their personal problems to transcend into something even more pronounced than when it initially began. On the day I planned to discuss the situation with Edward and George, I noticed that there seemed to be a lot of tension in the dormitory. ... I emphasized to Edward that although he was not the reason for George's drinking he had allowed it to continue for months, depleting him from energy he needed for classes, as well as denying rest to many of his other classmates also. I discussed with him how he could be a better friend to George. The way I did this was to point out he could be his talk buddy, and what I meant by that was that he could be there for George to talk to when he felt the urge to drink instead of simply sitting back and allowing him to do so. I pressed upon George how he was ruining any chance he might have at a good college education by his late night partying and then having no reserve energy left over for his studies. They both seemed to understand where I was coming from in my explanation and vowed to each work together as friends to put an end to the problem. In between hearing them both out, I made sure that they understood that by carrying on the way that they were they were not only hurting each other but the rest of the students in the dormitory. I explained that everyone was losing much needed sleep because of the extracurricular activities not being controlled. Also, I went on to stress to Edward that I understood he again was not to blame but at the same time I pointed out that he had a responsibility to help someone with whom he was friends with. I explained that if he would have intervened when the problem was only minimal perhaps it wouldn't have gotten as bad as it has and Edward seemed to understand my point exactly. He did feel bad that he let George down by not watching out for him when he knew he had a drinking problem but his attitude he
Sunday, January 26, 2020
Consumer Behaviour in Organic Food
Consumer Behaviour in Organic Food A RESEARCH STUDY OF CONSUMER BEHAVIOUR WITH REGARD TO ORGANIC FOOD IN THE UNITED KINGDOM AND INDIA Executive Summary Consumer Behaviour is an aspect that is being very vital in the globe of marketing. Food is a basic requirement for all the livelihoods and consumers require maximum satisfaction on the products they choose. Now consumers are more conscious about their health and choose nutritious food though they are expensive. Todays consumers are increasingly displeased with GM (Genetically Modified) and conventional food and are therefore stirring up to organic food. Many consumers are going organic not only towards food even towards clothing, beauty products, skin care and also paper. Organic food is not only healthier due to its ethical ways of production which do not use man-made chemicals and redundant preservatives as opposed to conventional food. It is also eco-friendly due to environment cognizant methods which are used for the production of organic food. The benefits of organic food are more whereas the disadvantages (such as price premium) are negligible when compared to its betterment. Regular buyers of organic food are willing to overlook this minor disadvantage when compared to its other disadvantages which affect their health. In spite of the debates, consumers prefer organic food to conventional food because it removes the question of eating food that is unnatural or food that is not eco-friendly. In this research work the consumer behaviour towards organic food in United Kingdom is studied and compared with that in India. The factors (such as consumer expectations, beliefs, criteria, concerns, quality, awareness etc) that affect marketing of organic food in UK and India are also studied with relevance to consumer behaviour. ACKNOWLEDGEMENT To successfully complete this dissertation was the most significant challenges I ever had. I would like to thank God and my parents who believed in me gave me full encouragement and support. Simon Speller, my supervisor who was very kind enough to help me out despite his academic and other commitments. I wish to express my warm and sincere thanks to him who encouraged me and guided me throughout my research study. His wisdom, immense knowledge and commitment to the high standard motivated and inspired me. He was always accessible and enthusiastic to help his students. Without his patience and directions I would have found it hard to complete my dissertation. I would like to thank specially my Module leader Yi Zhu, who encouraged me and never hesitated to help me out during my study. I immensely thank my friends and employees of the stores who were always there to lend me their hand. 1. INTRODUCTION 1.1 Background This research work revolves around the consumer behaviour and attitude towards organic food in United Kingdom and in India. A concise introduction will be given on consumer behaviour and how vital it is in the field of marketing. Secondly, an intense understanding of the term organic will be known. Many theories and phases associated with organic food will be emphasized and assessed in this dissertation. A various number of consumers of organic and conventional food are approached and consulted to get their views and estimation towards organic food. Not all the consumers approach towards organic food seems to be alike; consequently the application of certain statistical method helps us in further understanding the relation and the patterns in the consumer behaviour styles and trends in organic food in the two countries. This also helps us to identify how the consumers in UK and in India differ from each other and also we could recognize the ways they are similar in. On the whole, the similarities and differences between the consumers of organic food in UK and in India are deliberated. To obtain this information many respondents were requested to answer questionnaire concerning this topic and later on these answers were analysed using statistics. In the end these are discussed and limitations and conclusions are given and suggested. 1.2 Introduction to organic food Organic food is grown and produced using some production standards. The conventional pesticides, chemicals, fertilizers used for the production of conventional food are not used for organic farming. The organic farms are also free from human and industrial wastes. No artificial food additives and ionization process is used. Previously, organic food were grown only in private gardens and small farms thus making it only available in farmer markets or family run small stores. Nowadays, organic food is widely available. But there are a lot of standard and certifications that the sellers should possess to market the fruit and vegetables. There are heavy regulations in the organic fruit and vegetable industry. The organic food sales are expected to grow by a large percentage in the near future. 1.3 General Aim The aim of the study is to find out the consumer behaviour and approach towards the consumption of organic food in UK and in India. The elements and factors (health factors, eco-friendliness, production methods, ethics, taste, quality, safety standards etc) influencing the consumers decision making are also studied. 1.4 Research Questions How does the consumer behaviour towards organic food vary between India and UK? In what ways do consumers in the two countries expect the food to be different from convenience foods? What are the popular beliefs among consumers about organic food? When will India accept organic food widely, the way UK has? What makes organic food to be preferred more than convenience food? Why is there a variance between the preference rate and sales of organic food in both India and UK? What are the factors owing to this? How do the attitudes of Indian consumers differ from that of the British with respect to organic food? The above given question is the main aim and the biggest question for this study and research work. There are of course many sub questions as well which will also be researched in the course of this study. The question speaks about finding out the attitude differences in both the countrys consumer behaviour but the study might also prove the similarities in both the countrys consumer behaviour patterns towards organic food. 2. LITERATURE REVIEW 2.1 Introduction In the literature review, the studies of previous research work by other researchers are conducted. This helps us to recognize what other research works have arrived at with relevance to consumer behaviour and organic food. It is of big help because it has allowed the perception of consumer behaviour in regard with organic food especially in the United Kingdom and India because research work is proposed to be more specific rather than being more generalized. Theories and patterns are analyzed from previous research work which helps us to comprehend the topic better. Its a framework which basically positions down the strategy for the research work. The concepts, theories, cases, models etc used for the presentation of the research are basically elucidated for understanding the study being carried out. In this dissertation, a few theories and models will be analyzed and discussed. 2.2 The effect of organic food on the environment The production of organic food is not harmful to the soil, water, air or even the flora and fauna in the sense that they do not release any toxins or harmful substances into the environment or the ecology as a whole. The energy consumed for organic farming is much lesser than the level of energy needed for conventional farming methods thereby helping energy conservation process. The usage of pesticides for farming of conventional food contains a great percentage of harmful toxic chemicals which have a negative impact on the health of the farmers, those living in the locality of the farms and the people who consume them. The aquatic animals in the water bodies near the farms and the birds which feed on the produce of these farms suffer various genetic problems and disorders which are mostly fatal. 2.3 Level of nutrients The content of nutrients in organic food are around 40% to 60% greater than that of the contents in conventional food. The level of antioxidants in organic food is up to 40% greater than in conventional food. These anti-oxidants are necessary for the normal well being of a person and helps in reducing the risks of various diseases and disorders. A large number of organic food consumers say it is much sweeter, tastier, better textures and firm than conventional food. 2.4 Cost: Organic food are anywhere between 5% and 40% more expensive than conventional food. This is due to the use of the standards and processes applied for its farming. It is more labour intensive because it is more difficult to farm organic food because they are prone to getting rotten easily if the standards and physical conditions are not met with. It uses more natural farming methods and is more often produced on a small scale level. Most countries import organic food and therefore it is more expensive than similar fruits which are produced conventionally. 2.5 Organic certificate: Most consumers of organic food think it is healthier for them. But to be sure what is being consumed is organic; one has to look for the certificate of organic food. To be certified as organic, a minimum of 95% of it must be organic. The rest 5% has stringent rules and standards. Synthetic chemicals or other processing standards are not acceptable. The food from a particular farm can be certified organic only if the farmer of that particular farm has been producing organic food for a minimum of 3 years. 2.6 Pleasure of going organic: Whether it is a psychological factor or not, it is not clear yet, but majority of organic food consumers on the whole feel it is tastier than conventional food. They also have the content feeling because they feel they are doing the environment better by opting to go organic. In todays mechanical times, most people are busy and hardly have time to prepare a proper meal with all the ââ¬Ëgood, healthy contents that are necessary for a healthy, balanced diet thereby opting for food that is convenient to get and make in most ways. Many old timers find the taste of food constantly decreasing. For instance, watermelons used to taste as sweet as sugar in India about 30 years ago, but now sugar needs to be added to make it sweet enough to drink its juice or make a fruit salad out of it. A survey conducted by the Soil Association in 2005 included a representative sample of 1000 people who were questioned about what they considered important while buying organic food. 95% said it was the ta ste and quality that mattered, 57% said price was considered while making a purchase. (Simon Wright, 2008) 2.7 Ethical factors and responsibility affecting choice: An average shopper for food in the supermarket is faced with so many dilemmas and attractive offers and discounts such as super savers etc. Many shoppers also succumb to these attractive offers on convenience food, but there are also a considerable percentage of shoppers who overcome these dilemmas and go in for organic food. Some of the shoppers are so loyal and inclined towards organic food that the thought of buying convenience foods never even crosses their minds. Most of them are considered about whether the farmers are given fair treatment and paid what they deserve (fair trade) and also concerned about the ecological friendly measures taken up while farming of these food which are better for the environment as well. Most of the non shoppers of organic food who prefer the convenience farmed foods do so mainly because of the price factor; some of the shoppers of organic food too think so. More shoppers prefer buying their organic food from the local farmer markets and small time local suppliers rather than the super markets because they feel the ââ¬Ëstuff there is fresher and also the farmers will be getting a better deal off it. Those who prefer buying it from the supermarkets do so mainly because of accessibility constraints. 2.8 History of organic food in India: The concept of organic food is not new to India. At the beginning of the 19th century, Sir Albert Howard, one of the most important pioneers of organic farming, worked in India for many years studying soil plant interactions and developing composting methods. In doing so he capitalized on Indias highly sophisticated traditional agricultural systems which had long applied many of the principles of organic farming (for instance mixed cropping, crop rotation with legumes and botanical pesticides and so on) Through the introduction of the Green revolution, agricultural technology in the 1960s reached the main production areas of the country, there were still certain areas (especially the mountainous regions), and communities( especially certain tribes) that did not adopt the use of agro chemicals. Therefore, some areas can be classified as organic by default, though their significance and extent has been over emphasized in recent statements made by the government officials and NGO representatives. However, an increasing number of farmers have started consciously abandoning the use of agro chemicals and now produce organically. In the olden times in India, organic food farming was the main source of income for most of the people inhabiting the rural areas of India and it was also the major exporter to the world. In the 1960s, due to famines, droughts and extreme food shortage, the Indian Government started the idea of Green Revolution which made the farmers switch over to harsh chemicals for fertilizers, pesticides etc to multiply and increase the food production by a great level. This led to the sidelining of the usual organic farming methods of using natural fertilizers and pesticides which was obtained from plants and animals. Slowly in course of time, the Green revolution started decreasing the soil fertility, and the crops started getting immune to the harsh chemical fertilizers and this also started affecting nature as a whole and the environment as such. Therefore, a large number of farmers are moving back to the organic ways of farming and thus helping the surroundings as well apart from the consume rs. Genetically modified foods which were acceptable during the Green revolution period are now totally detested by most people and has a lot of negative aspects. Most of the big supermarkets in India have a separate section allotted for organic foods which are gaining a lot of demand and attention by the domestic market. (http://www.agricultureinformation.com/forums/organic-farming/15397-organic-farming-exports-food-consumption-india.html) According to a small recent survey taken in Mumbai, India, awareness about the presence of organic food is quite low. 25% of the respondents were aware of the availability of organic food and 36% out of them actually used them. The main reason for the use of organic food attributed towards the benefits it had on the consumers health. When compared to consumers of organic food in the United Kingdom, the Indian consumers did not mention the benefits it had regarding the environmental factors. It generally had a minor relevance to the Indian consumers of organic food. Most of the organic consumers had a purchase frequency of buying the food on an average of once a month. The purchase rate of organic food to conventional food was a ratio of 1:10 respectively. Most people in India do not consume organic food and organic food in general due to the fact that they are not aware that such a thing exists at all. When posed with the question if they would buy organic food because it was healthi er for them, all the non consumers and non buyers of organic food answered they would buy it solely because of the reason that it was better for their health. The domestic market for organic food is nowhere near as great as the export market for it. Indian domestic consumption of organic food is only a meager 7.5% of the entire organic fruit and vegetable production, the rest of which is directed towards the export market which is very great as Indian organic farming techniques are one among the best in the world and the resources are natural and pure in India. Most of the domestic consumption of organic food in India is seen in the big urban cities such as Chennai, Mumbai, Kolkota, Delhi, Hyderabad to name a few. These cities are noted to be inhabited by the upper income groups of the country, thereby showing that the upper income groups are obviously the predominant consumers of organic food in India. 2.9 Growth in the domestic market in India for organic food: There has been a considerable increase in the growth of demand and consumption of organic food in India. Many NGOs are aiding and assisting farmers to do better in their area of organic fruit and vegetable faming. Increase in demand by the local market in India for organic food are mainly because of health conscious factors, being aware about the product and its benefits, appealing marketing strategies and the ease of availability. These are the main factors considered according to some NGOs in India. It is a myth that most of the organic produce is exported to foreign countries. Today market for organic food in India is on the rise. More than 50% of the produce is consumed by the domestic market. The rest is aimed for the export market. Most of the domestic market consumers in India prefer organic food especially in families with growing children due to the beneficial factors in them. 06-07-2008 S.Annadana Senior Member Business Member Join Date: May 2006 Location: Organic Agri Business Organic farming, exports Food Consumption in India (http://www.agricultureinformation.com/forums/organic-farming/15397-organic-farming-exports-food-consumption-india.html) 2.10 Committed Organic Consumers HDRA participating members completed a questionnaire on background information about the participant and their household. They answered precise questions about their behaviour as organic consumers focusing on organic vegetables. Questions included weekly spend on vegetables, percentage of organic vegetables bought, factors to encourage purchasing and where and how regularly they bought organic vegetables. This information was analysed and combined with a brief literature review of research into committed organic consumers in the wider UK population. Committed buyers tended to be older and more affluent than the UK population average, over two thirds were in social classes A, B or C1, compared to fewer than 50 per cent in the population at large and most lived in London and the South East (TNS, 2003; Padel and Foster, 2005). The majority of committed organic consumers spend was from the two groups of empty nesters whose children have left home and families with children under 5 years (TNS, 2003). TNS (2003) found fruit and vegetables were the main entry point to organic purchasing as 55 per cent tried them before any other category. Padel and Foster, (2005) identified that committed organic consumers took on a greater number of issues and motives, which varied depending on the product category. The two most important motivations were taste and health. TNS (2003) reported there was a ââ¬Å"direct correlation between the extent to which consumers believe in the health and taste benefits of organic food and the number of categories they buy intoâ⬠. Padel and Foster (2005) found personal health was a particularly strong driver among UK consumers and related it to an absence of residues and food safety although Zanoli (2004) identifies that across Europe health seemed to be the central motive for buying organic produce. Environment and animal welfare were growing in importance as drivers (Padel and Foster, 2005). Food origin was particularly important as 60 per cent of organic consumers were more likely to buy organic food if it originated from the UK compared to 38 per cent for whom it didnt really matter (TNS, 2003). Price was often found as a barrier to purchasing although committed buyers had a higher willingness to pay (TNS, 2003). This is common across Europe (Zanoli, 2004). Organic consumers bought organic food an average of 12.8 times a year and average spend per shopping trip was à £2.53 (TNS, 2003). Committed buyers spend more on average and buy more frequently than less committed buyers. The ma jority bought organic produce in Tesco, Sainsburys and Waitrose. It is usually seen that most people who are regular buyers of organic food are either families with young children or old people. This in a way shows that organic food are preferred by those who want to maintain their health and stay fit. As for the more affluent people being regular buyers of organic food, the price premium for it justifies this behaviour. 2.11 Consumer Behaviour: Consumer Behaviour is extensively studied in the field of marketing. Without consumers it is rigid for any sort of trade to run efficiently. Consumers are the raison-d-etre for a business mere existence. A business maybe a profit organization or even a non-profit organization. ââ¬Å"The field of consumer behaviour is the study of individuals, groups, or organizations and the processes they use to select, secure, use and dispose of products, services, experiences or ideas to satisfy needs and the impacts that these processes have on the consumer and societyâ⬠( Belch and Belch, 2007)). From the marketing point of view, it is a significant factor to understand the consumer skillfully and to aid to their needs, wants and demands to be successful. A consumer is the centre of attention in case of most marketing techniques; after all, it is the consumers a business needs to move forward. In the case of organic food, a consumer might decide to buy it for its benefits on health or the environment or maybe because of the advertising for it is attractive. There are diverse factors that affect the consumer decision making process which is also discussed further. 2.12 Models of Consumer Choice: 2.12.1 The Cognitive Model: Initially when consumers make a significant purchase, they may reflect on substitutes and discuss pros and cons with others with an intention of securing benefits and avoiding costs. This model is sometimes called the extended-problem solving model. (East, Wright and Vanhuele, 2008). 2.12.2 The Reinforcement Model: Choice is controlled by the factors in the environment that reward and aid some alternatives more than others. Managerial control is attained by altering the consumers circumstances. Nevertheless what is pleasing to one person may not seem so to others and this limits persuasion. (East, Wright and Vanhuele, 2008). 2.12.3 The Habit Model: The choice of consumers towards the product is sometimes controlled by managing stimuli (brand name, logo, pack features, colour attraction, etc) that have become allied with a product as a result of past purchases. Sometimes this is called stimulus control. (East, Wright and Vanhuele , 2008). 2.12.4 Consumer Behaviour Models: The objective of consumer behaviour models is to provide description, explanation and prediction of purchase behaviour. On the identical side the models provide a conceptual framework and so help researchers to locate and to examine new ideas so as to enhance better enlightenment and predictions of behaviour. On the constructive side these models aid to organize research results and to demonstrate the density of decision processes involved in even a simple purchase, such as a can of soup in the local supermarket. On the unconstructive side most of the models can be criticized as providing no more than a description of a range of influencing variables. There are four main clusters of factors that have an outcome on purchase behaviour. They are political, economic and technical; cultural and social; psychological; and marketing influences. (Bareham, 1995) Theories make it smoother to comprehend a concept as they sketch the causes and effects that are possible and what to anticipate provided the input (the happening circumstance) is given. In most circumstances, it is easy to analyze whether practical situations are normal and satisfactory with the help of proven time tested theories. 2.13. Marketing Segmentation: The market is divided into diverse segments based on their needs, tastes, income, and a lot of other criteria. Marketing segmentation is based on a lot of research and important factors to suit the requirements and purposes. Some of the marketing segmentation is as follows: 2.13.1. Geographic Segmentation: This involves segmenting the market by location on the assumption that people living in one location will have similar needs, wants and preferences and these will differ significantly from people living in other locations. There are some obvious limits to this assumption. People all over the world drink Coca-cola and buy Japanese electronic goods for instance. When you think about it from the viewpoint of the consumer, most buying behaviour is actually local. Localized consumer behaviour is often expressed through the presence of a significantly large cultural or sub cultural group that is different from the main stream. There are also geographically based differences between consumers for reasons that are more complex or obscure. It is not immediately obvious why some sections of consumers have different behaviour than the other sections. But knowing that, they will do it can be important to the marketing strategy. 2.13.2. Demographic segmentation: Demographic segmentation deals with the many ways if statistically categorizing all the people in a national population. For example, a national population can be divided into subgroups based on age, sex, income, education, occupation, social class, family size, race and religion. In a sense, there are also different ways of looking at the same individual consumer, because of course we belong to each of these groups. Different aspects of our identity will be relevant to different products at different times. Baby foods can only be marketed to parents of young children, for example and a middle-class, middle aged, middle income, middle manager is more likely to be in the market for an exercise bike than a motor bike. Some of the important specifics of demographic segmentation are Age: Age is perhaps the most frequently used demographic variable in marketing segmentation. One reason for this is that the lifecycle has been divided up by society into what seem to be easily recognizable groups that are clearly differentiated from one another- infants, children, teenagers, young adults food. Sex: Dividing the market into male and female segments is another frequently used strategy. But even here, the old marketing certainties are breaking down. It used to be a safe bet for marketers to target do-it-yourself products exclusively at men and supermarket shopping at women. But with the larger increase in single occupant hose-holds and one parent families (most of them female), many more women are buying things that men would do if they were in a family. In addition, more women than men buy for other consumers. Socio-economic status: A persons socio economic status is determined by education, income and occupation. Though there are many exceptions of course, these are three factors often in alignment. More highly educated people tend to do managerial and professional jobs that bring a relatively high income, and vice-versa. For obvious reasons most marketers are more interested in people with high socio economic status rather than low. Income is often considered the most important variable in this case because it is so easy to quantify and because it dictates entry to certain markets. But income by itself can be very misleading. Psychological segmentation: The attempt to come up with a practical form of consumer profile has concentrated on three areas of behaviour: activities, interests, and opinions. Segmentation by usage: This form of segmentation is based on information about volume and frequency of purchase for a given product. It is a popular way of segmentation of markets because there is a lot of readily available information about patterns of usage for most goods and services. In fact, with so many transactions now electronically recorded, a great deal more of data is available than is actually used. Perhaps the most familiar usage data is provided by the electronic point of sale (EPOS) used by supermarket checkouts. Not only are all the purchased items listed, together with their prices, but so is the date and exact time of purchase and the method of payment used. Segmentation by benefit: This form of market segmentation is based on knowledge of the benefits that consumers seek from that particular product. The task of the marketer is to include the appropriate characteristics- or the impression of them in the design of particular goods or services. In a sense this kind of segmentation is at the entire marketing concept find out what people want and provide it for them. (David a Statt) Segmentation is very important for a firm or an industry to market its products strategically and for it to be a success. In the case of organic food, it comes under the category of food which is a basic necessity and therefore would appeal to and include a lot many segments in the markets. In this research study we are considering only the United Kingdom and India. So geographically these two countries are covered. Demographically the middle aged and the older people will be targeted age wise, both sexes, and the middle class and upper class levels will be targeted according to the socio economic status segmentation. Since the middle aged and older people usually are the ones who go shopping for food, they are targeted age wise, both men and women shop for it, and when it comes to socio economic status, the middle and the upper income groups are targeted as organic food are more expensive than conventional food. Many shoppers especially in India will give up the idea of buying food when it comes to the price factor that is not acceptable for them. That is the reason why the middle and upper income groups are aimed at here. Most people both in India and United Kingdom consume food every day. In India, no meal is complete without fruits or vegetables and in the United Kingdom, people are encouraged to consume food everyday with the healthy 5 a day concept though it is already a staple portion of a healthy meal. These segments are most suitable for being aimed at for marketing of organic food and therefore they are the target segments. 2.14. Decision making process Decision makingcan be regarded as an outcome of mental processes leading to the selection of a course of action among several alternatives. Every decision making process produces a finalchoice.The output can be an action or an opinion of choice. There are many factors which are discussed below: 2.14.1 Communication Situation The situation in which the consumer receives information about a product or service influences the buying decision of the consumer. For example, in the case of organic food, an advertisement speaking about the bad impacts of the chemicals used in conventional foods right when the buyer is suffering from food poisoning might influence the consumer to buy food that is healthier and does not involve the usage of chemicals responsible for food poisoning and therefore influence the consumer to go in for purchase of organic food in future. 2.14.2. Purchase Situation: The sit
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