PG, McDonalds and KFC Companies in the Saudi Arabian Market

Management differs from one organization to another due to the differences in size and income. Multinationals, SMEs, and global organizations have different styles of management since they deal with different cultures, employees, and clients in various areas of investment.Advertising We will write a custom coursework sample on PG, McDonalds and KFC Companies in the Saudi Arabian Market specifically for you for only $16.05 $11/page Learn More At the global and multinational level, an organization has to adjust to international management standards in order to be successful in business. Organizations like McDonalds, KFC, and PG operate at global and multinational levels and this forces them to promote international human resource and ethics management (Shankar 12). The purpose of this discussion is to analyze the position of PG, McDonalds, and KFC in the Saudi Arabian market. PG’s Foreign Investment in Saudi Arabia PG is a multinational organization with branches in most parts of the world. Initially, it avoided Saudi Arabia due to the stringent business rules that the government had set on people. After opening up the market to the rest of the world, many organizations, including PG, showed interest in Saudi Arabia. PG chose Saudi Arabia since the country is a key business hub for the Middle East. Many people associate with Saudi Arabia when conducting oil deals, and they would probably take interest in other industries like PG operating in the country. Secondly, PG considered the availability of raw materials for its products.Advertising Looking for coursework on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Saudi Arabia has affordable materials extracted from crude oil to make candles, soap, and other products that PG manufactures. Besides availability of affordable labor, ready buyers, and raw materials, PG opted for Saudi Arabia due to the availability of dis tributors of its products. Abudawood Trading Company Limited is a distributor of PG products and the company formed a joint venture with Proctor and Gamble to increase awareness of PG products in Saudi Arabia (Buckman 24). Finally, Saudi Arabia promotes growth of many organizations in terms of publicity and income generation owing to its huge population. Pepsis Improvement in Saudi Arabia After entering the Saudi Arabian market, Pepsi identified various strategies of survival in the market that the government initially closed to foreign investors. After a conclusive SWOT and PESTEL analysis, Pepsi developed workable measures of remaining relevant in the competitive economy. Pepsi invests in quality marketing, branding, and packaging since its greatest rival Coca-Cola equally provides similar services. In order to be unique, the company introduced Pepsi diet, which has fiber that helps in reducing weight gain, and improving health. Health consciousness is a major concern in Saudi Ara bia, which the Muslim religion strongly supports. In Saudi Arabia, Islam deters residents from consuming alcohol or pork, as they consider such foods as unhealthy. The same applies to high calorie content foods and soft drinks that contain high levels of sugar, preservatives, and carbon.Advertising We will write a custom coursework sample on PG, McDonalds and KFC Companies in the Saudi Arabian Market specifically for you for only $16.05 $11/page Learn More Pepsi realized such concerns and developed Pepsi diet to increase consumer consciousness about health while enjoying soft drinks. In its adverts, Pepsi uses Saudi locals and celebrities in order to increase consumer association with the products that it manufactures in the country (Cho and Moon 41). Recommendations for KFC in Beating Competitors KFC needs to learn the things that are unique to Saudi Arabians that other countries do not consider in order to provide better services as consumers expect. For instance, KFC should not ignore religion, dressing, language, and etiquette, as they are vital to Saudi residents. KFC has strengths over competitors like Albaik since it has many branches across the world. Albaik has no branches outside Jeddah, which reduces its chances of gaining publicity over KFC. Another strength that KFC needs to capitalize on is the fact that Albaik does not respond to concerns raised over fast foods. KFC equally sells processed fast food, but it serves portions of salads, non-alcoholic wines, fresh juices, and low calorie foods. Albaik does not recognize the significance of changing the styles of manufacturing foods owing to transforming consumer demands. This gives KFC an advantage over rivals in the Saudi Arabian market, which the company needs to recognize. KFC needs to employ many Saudi residents instead of importing workers from the US. Corporate social responsibility is about providing employment opportunities, tax payment, and ability to care for the social and geographic environments (Sims 32).Advertising Looking for coursework on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More This will definitely make KFC trustworthy to prospective consumers and will enable it gain competitive advantage over competitors. McDonald Company A multinational company operates in more than one country in terms of establishing different branches across the world. A global company has a single headquarter, but uses technology to respond to consumer needs. In essence, McDonald is a global multinational company headquartered in the US, but with many branches across the world. It has over 34,000 outlets operating in different countries in the world. Moreover, it has franchises in the US and communicates to other clients through social media, its website, and online marketing tactics. This makes it a global company that uses technology to interact with consumers from different parts of the world. McDonald has branches in the US, the UK, parts of Africa, Asia, and Middle East (Pride, Hughes, and Kapoor 84). Physical investment and the ability to learn new cultures by paying for licens es in countries of investment make it a multinational corporation. Companies combine both global and multinational techniques in order to acquire the highest number of consumers willing to purchase products from the company. Being a multinational company is more costly as opposed to being a global company per se (Pride, Hughes, and Kapoor 82). A global company spends limited resources in marketing, tax payment, and shipping. On the other hand, it becomes difficult to develop trustworthy relationships with the target population. Companies and Internationalization Internationalization links SMEs to multinationals making it easy to share information, resources, or even form mergers. PG entered the Saudi Arabian market in 1955, and this expanded its international connections. It merged with Abudawood Trading Company Limited, which expanded its market share in the country. Saudi Basic Industries Corporation (SABIC) is an example of an organization that benefits from internationalization. It established a strong presence in the Gulf region and Asia even though the corporation does not deal in oil. Saudi Arabian Aramco is another example of an organization that strives to attain international recognition (Shankar 42). These organizations realized that cultural barriers deter effective trade between Saudi Arabia and the international countries. Such corporations deal with foreign countries in Europe and America differently since cultural appreciation is an important element of business management. FDI vs. Portfolio Management Foreign Direct Investment (FDI) refers to the possibility of an enterprise to own 10%+1 of an overseas business investment. On the other hand, portfolio management refers to a company’s investment in its own business. For instance, when PG trades with Abudawood Trading Company Limited, it has investments in a foreign company, Saudi Arabia. FDI Advantages Companies easily develop mutually beneficial relationships with other countries throug h FDI. This enables them to brand position their commodities in the country given that the other company that understands the prevailing market conditions can always market their commodities of the foreign company. Increase in international relations promotes sales, which increases profits for an organization (Pride, Hughes, and Kapoor 61). FDI makes it easy for a foreign organization to understand the political, social, and political environments of the target market before opting to invest in the country completely. Corporations get competitive advantage over rivals that operate independently. FDI is important for the local and foreign companies involved in the agreement. FDI Disadvantages FDI involves interactions between different organizational cultures, which might cause conflicts between the involved organizations. The corporation that owns over 10% of the foreign company’s assets may dominate the group while adding no value to the union. FDI is about risk taking in co mparison to portfolio management that many organizations from advanced countries use. Under portfolio management, people who understand the organizational culture including financial organizations and the government play a role in ensuring that the invested money is safe. Finally, through FDI, it can be difficult to transform some assets into cash when emergencies occur. PG’s FDI in Saudi Arabia Proctor and Gamble realized that Foreign Direct Investment (FDI) is a responsibility and an opportunity at the same time. In essence, while taking an advantage of the investment opportunity, it needed to exercises various precautions. First, PG assessed the environment of investment, which included Saudi Arabian political, social, technological, and economic position. This enabled the company to understand that the negative environmental factors were fewer as opposed to the positive elements. Notably, the study gave PG good reasons to seek a distributor (Shankar 33). Secondly, PG made an individual entry into the new market and assessed all other organizations, but settled on Abudawood Trading Company Limited. This follows its ability to trust the other company after assessing their performance in the market since inception. Additionally, PG officials met with Abudawood Trading Company Limited officials for negotiations. PG trusted Abudawood Trading Company Limited after working with it as a distributor for a long time. During negotiations, PG considered the importance of signing agreements that favor both firms. The greatest element of consideration for PG was sustainability in Saudi Arabia and the possibility of increasing the consumer base. PG considered a growth opportunity in Saudi Arabia, and since Abudawood Trading Company Limited understood clearly the market conditions, it definitely provided the best guidance to PG. Finally, PG looked at diversity, availability of affordable raw materials, availability of human resources, and costs of production (Dunni ng 18). Egypt’s Economic System Closed economic systems normally prevent foreign investors from establishing corporations in their countries. Egypt is the exact difference of a closed system since investors can easily establish brands in Egypt, but the challenge is that nobody cares about investment activities. Political instability and poor trade policies make it difficult to trust Egypt, especially when dealing with FDI cases. Egypt has a laissez faire system in which nobody really controls the economy (Kaplan 74). Studies indicated that it has the unrestricted system in which many government bureaucrats use taxes for personal gain. Many middle class residents pay taxes, but few rich people benefit from such efforts. Egyptians need thorough knowledge on financial management so that they can take control of the economy instead of leaving it to a few bureaucrats. Uncontrolled markets have significant impacts on Egyptians including increase in unemployment rates, increase in t axation, inflation, and increase in national debts. Egypt’s Benefits by Gaining Admission to GCC Gulf Corporation Council (GCC) consists of oil producing countries that invest within the Gulf area, Europe, and Asia. GCC provides rules that govern member states in order to establish high discipline levels. GCC ensures that the involved countries ensure that conflicts within a country do not interfere with trade. This helps in stabilizing the economy even in moments of conflict or inflation. Egypt needs to join GCC in order to acquire the status of other states like Kuwait, UAE, and Saudi Arabia. GCC sets clear standards concerning management of oil reservoirs and companies, and this reduces confusions over ownership of various oil fields. Hazem al-Beblawi, Egypt’s deputy prime minister, displayed interest in the proposal that seeks to incorporate Egypt in GCC. He understands that Egypt needs to interact with countries that will support it with financial information. Suc h levels of empowerment will help the country reduce its budget deficit and promote self-employment in order to reduce the unemployment gap (Kaplan 74). Risks of FDI in Egypt As mentioned earlier, FDI is a risk measure, but a corporation needs to assess the political and socio-economic environments. The past political unrests in Egypt made the country economically unstable. Government bureaucracy and budget deficit in Egypt make companies unstable and a merger with such companies poses a threat to foreign corporations. Companies that apply portfolio management may succeed in their operation. For instance, when inflation occurs, a company can sell its assets quickly and recover the funds (Dunning 47). An unstable economy like Egypt keeps changing and FDI becomes risky since it would be impossible to recover invested funds in another corporation that might be experiencing losses (Kaplan 19). FDI is only possible in closed and capitalist markets that have certain levels of control. The Egyptian economy lacks proper management, thus posing security risks for investment-oriented institutions. Works Cited Buckman, Greg. Globalization tame it or scrap it?. Dhaka [Bangladesh: University Press ;, 2004. Print. Cho, Tong, and Hwy Moon. From Adam Smith to Michael Porter evolution of competitiveness theory. Singapore: World Scientific Pub., 2001. Print. Dunning, John H.. Multinational enterprises and the global economy. Wokingham, England: Addison-Wesley, 19921993. Print. Kaplan, Leslie C.. Economy and industry in ancient Egypt. New York: PowerKids Press, 2004. Print. Pride, William M., Robert James Hughes, and Jack R. Kapoor. Business. Sixth ed. Mason: South-Western Cengage, 2012. Print. Shankar, Venkatesh. Handbook of marketing strategy. Cheltenham, UK: Edward Elgar Pub., 2012. Print. Sims, Ronald R.. Ethics and corporate social responsibility why giants fall. Westport, Conn.: Praeger, 2003. Print. 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Persian Jews essays

Persian Jews essays Paradise, a term meaning a place or condition of beauty or happiness, is a good term to describe the times when the Jews of Iran were prospering. During the sixth century B.C.E., King Nebucchadnezzar of Babylon conquered Judea and exiled the Jews to surrounding regions. This marked the start of the Jews in Iran, and history shows that the Jews went though both good and bad times in Iran. To this day, there exists a significant population of Jews in Iran. For most of the period, between the times of Cyrus the Great in 550 B.C.E. to the end of the Sasanian dynasty in 642 C.E., the Jews of Iran did not experience prosperity and suffering due to their religious beliefs, rather this occurred due to the decision made by the Iranian leaders for their own Iranian interest. This paper will emphasize the lives of Judeo-Iranians after their exile from Judea by King Nebucchadnezzar to the time of the Muslim invasion in the seventh century. This paper is divided into three sections to make the paper more accessible to the reader, similar to Habib Levys book. Each section will be relevant to a significant time for the people Iran. The Good Times: The Achaemenid Dynasty [550 B.C.E. 330 B.C.E.] In 550 B.C.E., Cyrus the Great, the third descendent from the Achaemenid family came to power and established the Persian Empire (Olmstead, Pg. 39). Cyrus the Great is portrayed as a smart, noble, and ideal character in Persian history. He is the greatest and most powerful leader in Persian history (Levy, Pg. 45). During his reign, he conquered Babylon, and created an empire stretching from the borders of India to the Mediterranean (Seltzer, Pg. 113). Cyrus respected the faiths of all nations and peoples (Levy, Page46). He freed all the Babylonian captives, including the Jewish captives, and allowed the return of the Jews to Judea to build a new temple (Levy, Pg. 46). There are many passages in the Old Testament regarding...

Team Assignment Essay Example | Topics and Well Written Essays - 500 words

Team Assignment - Essay Example It advocates for doing the right thing regardless of whether it is causing any harm. In regards to the theories the leading advocates include; Jeremy Bentham (1748-1832) who started the utilitarianism. He stated that the morally upright thing to do is that of not harming other people and bringing about happiness. Other Classical Utilitarianism starters include Richard Cumberland (1631-1718), John Gay (1699-1745). On the other hand Kantianism theory was introduced by Immanuel Kant (Melden, 2008). Cultural relativism is defined as a standard initiated by Franz Boaz which indicates that people’s ideas and opinions are factual in accordance to the civilization they are in. Cultural relativism shows that customs, beliefs as well as ethics that are related to a person in the society he is in. simply put is that wrong and right are classified in terms of a person’s culture (Melden, 2008). It shows that no culture is better than the other. In regards to individual relativism this means that a person’s beliefs and opinions are strictly what they believe to be true. Individual relativists usually take what he believes in extremely seriously. Looking at the comparison to the ethical relativism to the traditional theories is easy to see that there are some distinctive differences and some similarities. By definition ethical relativism means that there is a tendency of people making decisions that are ethical based on what they see fit in accordance to their beliefs. Traditional approaches can be classified into two; consequentialism and non-consequentialism (Melden, 2008). Consequentialism means that actions that are right or wrong depend on the consequences; on the other hand non-consequentialism dictates that a wrong or right action does not depend on the consequences. In light of this ethical relativism contradicts with the traditional theories in that the beliefs are not based on the culture one comes

Cross-Cultural Communication and Negotiation--Development of a Essay

Cross-Cultural Communication and Negotiation--Development of a Learning Journal - Essay Example Good examples of these jobs are legal jobs and investment banking as well as low skilled, low wage jobs such as hairdressing and shop assistants. The jobs mentioned in the example are of the kind where the individuals have to be present for any work to get done, and because of this, there will always be a ready supply of such workers. As globalization continues to take place, this pool of workers will be greatly increased and this will ensure that more competitive wages are offered for their services. Due to online learning resources, many people all over the world will have the same quality of education as that received in many western countries and in the process, there will be a very high level of competition for the similar jobs. Furthermore, Gratton further states that the advantage that the West had in giving a high quality of education to its people will soon be eroded due to the fact that many of its best learning institutions are going online making it easier for those in poorer countries to gain the same type of education. It is said that since many jobs are nowadays increasingly being done online, then the high availability of labor for such jobs because of access to the internet will give equal opportunities to people in very remote areas of the world as those who live in cities such as New York. Moreover, many people from poorer countries will have a greater access to the more prosperous cities in the world as they will get attracted to them in order to earn a better living. This means that many cities will develop a more cosmopolitan environment, with people and cultures from all over the world coming together in one place. People will no longer find it necessary to travel to the countries where the headquarters of a company is for them to be able to work for it and instead, they will be able to do so from the comfort of their own homes in their own countries. Gratton further states that due to globalization, a new breed of worker, who

Development of Early Child Narratology

Development of Early Child Narratology Aims: I aim to evaluate how the structure and composition of early child narratology develops and evolves with age. To conduct this evaluation I will approach local primary schools for examples of short narrative texts written by Key stage 1 pupils (4-7), to serve as empirical data. I will assess these texts by employing the six part Labovian narrative model and analysing the presence and frequency of narrative components, evaluative temporal indicators and markers. Background: This study builds on many other works as the Labovian model is now frequently used to assess narratology in children, (see Kernan, 1977; Eaton, Collis and Lewis, 1999). The idea of linguistic and narrative development in children is also a popular issue. One study that specifically charts the evolution of child narrative with age is â€Å"Telling stories of experiences: Narrative development of young Chinese children† a study by Chien-JuChang in which young Chinese children were visited in their homes at age 3 years and 6 months and then at 3 month intervals for the next 9 months. Their individual development in three key areas (narrative structure, evaluation, and temporality) was evaluated with the conclusion that â€Å"Chinese children, generally speaking, include more narrative components, evaluative information, and temporal markers in their narratives over time. However, the growth patterns and rates of change for each child on each narrative measure vary.† Hypothesis: My hypothesis is that as a child is introduced to more narrative texts, and comes to identify narrative components, that he or she will employ them more frequently and more readily in their own narratives. Thus, I hypothesise that there will be a marked increase both in the inclusion of these features in individual narratives and in the cohesion between the narratives of the evaluated children (their similarity to each other) in the older age ranges, as they adapt and adhere to literary and narrative norms. I believe that there will be a greater proliferation of linguistic devices and conventions, as well as more narrative components, in the older childrens narratives. Although I will not specifically be studying the effects of ethnicity or socio-economic background I believe that these factors will skew the data slightly as my hypothesis centres on the fact that the children will have been exposed to similar volumes and types of narrative material. This may well not be the case for pupils from a different cultural background or a less affluent family environment. Data: The data I will use for this investigation will be collected from local and, hopefully, schools which are more widely distributed throughout the country, to give a representative sample of empirical data. I will approach the schools to provide short texts from every early years age group so that I have approximately 50-100 short texts from pupils aged from 4 to 7 with a similar number for each age group. I will specify that I would like work from a cross section of abilities, genders, ethnicities, and socio-economic and cultural backgrounds so as to have a representative sample of narratives for an age range. I will also request that the gender, ethnicity and socio-economic group be specified for each child included in the study as, although I am not directly studying the consequences of these factors on the narratives, it would be informative and useful to see if they affect the cohesion of the data in any way. All texts will be included as an appendix to the final extended essay and the appropriate permissions will be obtained from the schools and, if necessary, from the parents of the children whose work is used. Methodology: As previously defined I will employ the Labovian 6 part narrative model to assess the texts. This will be both a quantitative and qualitative analysis as it will deal not only with the evolution in the number of narrative components in each text but also their function and type. The results of the analyses will be presented in tabulated form. Initially I will fill in a table to give the main characteristics of each narrative and then tabulate the overall results. An example of a narrative text and a simplified table are given as an appendix. My work so far: I have investigated a number of studies covering similar subject areas and approached schools in my local area to see if they would be willing to provide samples of work The response so far is encouraging. I have also obtained some examples of writing from neighbourhood children and analysis of these texts seems to back my hypothesis thus far. Naturally I will be unsure until I study the larger volumes of empirical data foreseen by my study. Timescale: Owing to the complexity of obtaining the data and analysing it, this project will be quite time consuming. I believe I will require one month to obtain the work and the various permissions and a further month to analyse the texts and tabulate the results. I will then need a further two weeks to present my conclusions, draft and check the final copy. Annotated Bibliography Applebee, Arthur 1978. â€Å"The Childs Concept Of Story: Ages Two To Seventeen†. Chicago: University of Chicago Press. This book defines the â€Å"interaction of children and stories†. Various chapters discuss the stories told by primary school children, their organisation and motivation as well as children’s responses to stories and story telling. It also contains a number of appendices giving information about the methods for data collection and analysis employed by Applebee throughout his investigations. Chang, Chien-Ju 2004: â€Å"Telling stories of experiences: Narrative development of young Chinese children† Applied Psycholinguistics, 25: 83-104 Cambridge University Press This presents a study in which young Chinese children were visited in their homes at age 3 years and 6 months and then at 3 month intervals for the next 9 months and their individual development in three key areas (narrative structure, evaluation, and temporality) assessed. Gutierrez Clellen, V. F., Quinn, R. (1993). Assessing narratives of children from diverse cultural/linguistic groups. Language, Speech, and Hearing Services in Schools, 24, 2-9. This article discusses the issues surrounding cultural and ethnic background and the impact on a child’s narrative development. This supports my claim that linguistic and narration conventions are learnt and states â€Å"narrative contextualization processes are culture-specific† Kernan, K. T. (1977). Semantic and expressive elaboration in childrens narratives. C. Mitchell-Kernan and S.Ervin-Tripp (Eds.), Child Discourse. New York: Academic Press, 91-102. This paper was presented at the Child Discourse Symposium at the Annual Meeting of the American Anthropological Association (Mexico City, Mexico, November 1974) and presents a theoretical and ground breaking discussion of children’s narrative discourse and the acquisition of discourse competencies. Labov, William., and Waletzky, Joshua. 1967. â€Å"Narrative analysis: oral versions of personal experience.† Essays on the Verbal and Visual Arts, ed. June Helm, 12-44. Seattle: University of Washington Press. Seminal and scholarly text discussing the basics of narrative analysis detailing the six point model, etc. Pena E. D., Gillam R. B., Malek M., Ruiz-Felter R., Resendiz M., Fiestas C., and Sabel T. : Dynamic Assessment of School-Age Childrens Narrative Ability: An Experimental Investigation of Classification Accuracy J Speech Lang Hear Res, October1,2006; 49(5): 1037 1057. This article provides useful and information about analysing the â€Å"macrostructural and microstructural aspects of language form and content† (in this case in narratives given by first and second grade students describing a picture book.) Appendix one – example narrative (direct transcript) On Saturday, Daddy, Mummy, Jamie and me went to the park to go on the swings. It was really cold so Daddy bought me and Jamie a hot chocolate to warm us up. It was really funny because Jamie dropped his down his jumper and had to wear Daddy’s jumper. It was to(sic) big for him and he looked really funny. I went on the swings and the roundabout and the slide and then Jamie and me sat on one side of the sea(sic) saw while Daddy sat on the other. Mummy took pictures of us. Then we went to the sweet shop and bought some jelly babies. They are my Mummys favourite and I like them to(sic). Then we went home and watched ice age 2 and then we had tea. Then we went to bed. We all had a lovely day and Daddy said it was nice that me and Jamie didn’t shout at each other. Jenny, age 6 Example tabulation Table 1 – Labovian concepts Table 2 Common markers Used by the child in her narrative

Frank Lloyd Wright :: essays papers

Frank Lloyd Wright These ideas proposed by Wright represent a half century of ingenuity and unrivaled creativity. Wright was unquestionably a architectural genius and was years ahead of his time. The biggest obstacle which held Wright back throughout his career was the lack of technogaly that was present during his time. As a architect, Wright accomplished more that any other in history, with the possible exception of DaVincci or Michangelo. His philosophy of Organic Architecture showed the world that form and function could both by achieved to create a house that was both true to nature and affordable. Wrights homes, have today become monuments of greatness and distictionn. Most of them serve as museums, displaying the his ideas and the achievements of a lifetime of innovation. It wasn't until Wright published "The Natural House" however, that he fully was able to illustrate all of his ideas relating toward housing. In the "Natural House" wright defines the meaning of Organic Architecture and how it c an be applied to creating housing which provides a closeness to nature for the occupents. Wright was undoubtly a romantic and individualist. His feeling toward nature and self integrity can best be shown by comparing them to those shared by Emerson and Thoreau. Wrights deep love of nature and his individualism were formed from the events which influenced him as a child and up until his days working for Louis Sullivan. In order to fully understand the ideas which Wright proposed through his philosophy of Organic Architecture, one must first understand the events and influences which led to their creation. As a child, Wrights parents always encouraged him to be a free thinker and individualist. Both of his parents were intelligent and creative people by nature. They, of all people had the greatest influence on Wright. Throughout his life they were extreamly supportive of Wrights dream of becoming an architect, and always made sure that he had books and pictures of buildings that he could study and learn from. Wrights parents had little money, but they always found the extra money needed to support their childrens intrusts. When Wright became old enough to begin learning about working, his parents felt that sending him to his uncles dairy farm during his summer break from school would provide him with the proper work ethics and morals needed to become a responsible adult. The work on the farm was rigorous and seemingly endless to Wright.

Mr. Jax Fashions

Mr.. Ajax is a professional/career woman's dresses and suits designer and manufacturer in Canada during late ass's. The Mr.. Ajax business level strategy is product design and quality. How did they do it? The following is a list of Distinctive Competencies that put Mr.. Ajax in the lead of professional/career woman's fashion Mr.. Ajax hired Louis Seaman who was a well-known women's fashion executive. At the time Mr.. Ajax didn't focus on professional/career woman's dresses and suits and Louis Seaman shifted the focus of the company into the professional/career woman's market segment.Quality of materials used. Mr.. Ajax purchased West Coast Woolen Mills Ltd. This acquisition, although it took time to be profitable, enabled Mr.. Ajax to take control of fabric production scheduling, design, and quality. At the time of market saturation in Canada most competitors used materials that were sub-par for the market segment. The quality and craftsmanship of the garments Mr.. Ajax made were see n as high quality garments produced from high quality materials.The majority of the competition at the time was producing garments off-shore (in Asian) which lead to finished products which could be seen as inferior to those companies that produced finished product only using North American materials and production lines. Mr.. Ajax had also developed a reputation when it came to delivery of goods. Mr.. Ajax had seen delivery rates as high as 90% for (time and orders fulfilled), compared to the industry average of 75%. Mr..Ajax financial reports (see chart below for fiscal years 1981 to 1988) show that there was steady growth in the business but the market has reached a saturation point as seen by the net profit line. (revenue, COGS, Gross Margin, Expenses, Net Profit). Porters Five Forces: Threat of New Entrants: High. Entry into the market can easily be done by any firms, rage or small, with very little startup costs to do so. Threat of Substitutes: High. In order to stay ahead of the threat of substitutes Mr.. Ajax needs, and has, stayed ahead of the competition by keeping tabs on what is happening in the European fashion industry.Bargaining Power of Buyers is high. Distributes have the power, and authority, to turn away deliveries for a number of reasons – lack of quality, outdated styles, breach of contractual obligations, etc. Mr.. Ajax needs to keep up the standards they have set with their buyers. Bargaining Power of Suppliers is low. Since Mr.. Ajax currently manufactures the trials they use (30 to 40 percent) to make professional/career woman's dresses and suits they have the option to negotiate with the other suppliers, current or new, for better prices.The Free Trade Agreement (FAT) also makes it easier for Mr.. Ajax to purchase textiles from other North American firms as they can take advantage of lowered or removed tariffs. Seaman has studied two alternatives approaches for entering the U. S. Market: 1 . Establishing a retailing chain, or 2 . A U. S. Based wholesale distribution subsidiary (regional or national) Given the amount of competition in the U. S. Establishing a retail chain would not be in the organization's best interest (even though this is the option with the highest rewards).I would suggest to Seaman that he move Mr.. Ajax into the U. S. Via a Regional Distribution Subsidiary, and the reasons for doing so are: Enough cash has been raised to support this entry move into the U. S. Without having to undertake drastic measures. Example: selling off less profitable companies (Surrey Classics or Olympic Pant and Sportswear) to raise more capital for a National Distribution Subsidiary Management for a National Distribution Subsidiary can be developed as the Regional Distribution Subsidiary grows. This will give Mr..Ajax time to see if the entry into the U. S. Is successful, and if so, what is needed to move forward. A Regional Distribution Subsidiary would allow Mr.. Ajax to develop distribution channels in the U. S. , which would be needed for a National Distribution Subsidiary. Also, a Regional Distribution Subsidiary would allow the consumers in the newly entered market to see the high quality, up to date fashions, and quality of goods. This will allow the consumers in the market segment to become acquainted with the new Canadian product.