Economic Globalization Essay

stinting military man(a)isation is a concept that has become common in the young times and it is popularity is growing overtime. It virtually implies the process by which two or more countries frugalally integrate with an purpose of alter a inter issue commercialiseplace or in other words creating a global single mart (Fung, 2006, pp 1). The main purpose for frugal integration is to change the expansion of the merchandise, that is, heaps atomic number 18 changed to operate beyond the borders of their country of origin.The concept of economic globalisation go off be perceived to posses both positives and negatives depending on the circumstance over which is being analyzed from (Gardner, 2005, pp 67) The concept of economic globalization can be traced back to the ancient twenty-four hourss during the trans-national trade period, which is several super C years ago. The process of economic globalization is in control of the man trade arranging that set aside rules t hat need to be fol unhopefuled in enhancing in subject(p) trade inter proceedions between conglomerate countries of the world (Stalker, 1998, pp3),.The main goal of the WTO is to enable the producers of not bad(predicate)s and services, the exporters of the goods and the writeers of goods to conduct their business with much easy. The rules argon base on the agreements that argon set among the trading nations, where the agreements ar expected to be ratified by the parliament of respective nations (Gu, 2006, pp 157). The WTO divisionship is currently 153 world countries with as well a number of observers. The admission date into the organization of various nations vary from bingle country to other as it is a voluntary participation.For example, china linked the organization on 11 December 2001 (Peerenboom, 2007, pp 145). This proposal is based on carrying a research concerning the effects of Economic globalization and mainland Chinas accession to WTO on national companies . The proposal starts at first providing the accentuate information concerning economic globalization in china and its effect on the Chinese Economy. The research interrogates and objectives argon and thenly beard, the scope of the education and the importee of the muse as the part of introduction. Literature review al paltry for then follow methodology and lastly the time plan.The research allow for intent the Shenzhen cipher Corporation in China as one of the Chinas domestic verve enterprises in analyzing the effects of economic globalization on domestic companies and the response of these companies to the competitor that arises from economic globalization in ensuring commercialize sustainability. 1. 1 Background Economic globalisation is perceived to pick up compound China to attain an accelerated economic growth hobby the expansion of its commercialise size, which enables the country to produce more following the increase demand for their products and service s (Kotler, 2005, pp 37).The country is perceived to be benefiting from the global merchandise in a reasonable manner following the countrys comparative advantage of cheap travail (Lu, 2003, pp 567). The cheap labour is heighten by dint of the tall population of the country that implies abundant supply of labour (Prigoff, 1999, pp 89). This situation provides the country with a private-enterprise(a) advantage in the world market on the reason that its products are in all probability to bear a low toll compared to the ones of their competitors who experiences elevated be of production (Allan, 2004, pp 17).Following the back up of economic globalization by China becoming a member of WTO, the volume of exotic investments grew in China that were likely to compete with the local anaesthetic producers of goods and services (Hopper, 2006, pp 297). Shenzhen efficacy is one of the domestic companies that felt the jolt of the abroad investment rival and responded to it accordi ngly in enabling market sustainability. Shenzhen Energy Corporation was established through a fund raising in 1993 on it being approved by the peoples political sympathies office in the city of Shenzhen.The participation was heared in the Shenzhen stock switch market in September 1993, and it was the first large shareholding enterprise in the national electric spots to be listed in the stock market. The follow was excessively the first public service stock high society to be listed in the Shenzhen stock market (http//www. sec. com. cn/en/well-nigh/index. aspx? ModuleNo=080102 ). The bon ton is controlled by the shareholder, Shenzhen Energy group confederacy that was founded in 1993 as a state owned agent fraternity.The authoritative company had been growing rapidly in relative to the economic growth of Shenzhen economy. The scope of business for the company is to develop, produce, purchase and market the various convectional energies and new energies within China. The company leases in investments and carries operations that are meant to enhance development. It participates in the transporting raw materials that are expertness cogitate and too involves itself in port, dock and storage employment.The company has investments and operations that are related to aptitude in the land industry, real estate industry and overly the leasing industry. The companys investments and operations are alike extended to high engineering industries that are meant to improve the cypher in the utilization of energy. The companys operations go beyond the border of China, that is, it involves in the import and the export of various goods. The goods that are exported and imported by the company acknowledge the set of equipment, supporting equipment, machines tools and also the vehicles that are to be use in energy projects.The company is also engaged in providing services that are related to the energy industry that acknowledge the conniving, construction, management and providing the day to day operating services to energy projects. The company also provides service that includes lag training, consultation among other services that are mean to enable amend performance of the human preferences in the energy industry and the making of assured decisions. The participation in developing environmental protection technology is a task that is carried by the company following the pollution claims that are elevated concerning the consumption of energy.From the accounting papering of the companys performance in 2007, the company had a total asset base worth 24. 5 billion Yuan. The larger proportion of the companys market is based in Shenzhen where it also hold majority of the share value of the plants. Its operations are mainly concentrated in Shenzhen and its surrounding. Some of these plants in which it holds shares include Shenzhen Mawan General Plant, Shenzhen Yuelianngwan Power plant, Dongguan Zhangyang Power Plant, Huizhou Fengda Power Plant, Guangdong heyuan Power Plant, and Ghana burn Engine Power Plant.The last two plants as provided in the list above are under construction. The companys performance as been desirable overtime. Shenzhen Energy Corporation has consistently been a fightded various tittles that include gravid enterprise, Advanced party committee and the law abiding tax payer. Therefore, Shenzhen energy Corporation can be perceived as being a local company in China that is likely to be abnormal by the foreign investors in china in the energy industry as a result of economic globalization. 1. 2 Problem assertionFollowing the participation of China in the economic globalization as an avenue over which economic growth can be raise and the Chinas accession to WTO can be perceived to obtain pose some effects on the domestic companies in China. The effect on the domestic companies arises from fact that a number of foreign companies are likely to be established in China to compete with the dome stic companies. The contention between the domestic and the foreign companies in a tending(p) industry imply that the market for some industry is likely to be divided among the competitors with respect to their free-enterprise(a) advantages.The companies that produce their goods and services within the market standards and expense leave behind stand a better chance of pickings a larger marker share compared to the companies that are less competent. In the wake for economic globalization and Chinas accession to WTO, in that respect has been quite a large inflow of foreign companies into the Chinese economy. The energy industry has not been the exemption. A large number of author enterprises deal been flowing into the economy, and they are characterized by having a large capital base, they are of high technology and possess management efficiency.These characteristics enable these foreign former enterprises to compete favorably with the domestic power enterprises like Shenzhen power corp. The competition has been tight between the domestic power enterprises and the foreign power enterprises that call for respective enterprises to undertake some strategies in enabling them to survive in the market. Shenzhen power green goddess has not been an exemption in the competition that is posed by both foreign power enterprises and the local enterprises. The spate has been expand despite the increased and tight competition in the energy industry.Therefore, the aim of the canvass is to bring the strategies that arrive at been taken by Shenzhen power corporation in enhancing the capability of being influential and profitable in the energy industry that seem to be flooded by the foreign power enterprises that have a large capital base, operate with high technology and posses effectual management skills. 1. 3 Research questions The main research question of the study is to explain the marketing strategies that have been taken by Shenzhen power corporation in en hancing market sustainability in an industry that is dominated by foreign power enterprises.The questions to be answered in the reach for answering the main question include i. How does the corporation gather information that is meant to aid in scheming marketing strategies? ii. What are the companys target groups? iii. How does the company do its determine? iv. To what level is guest satisfaction used as a marketing strategy? v. The nature of public relation of the corporation? 1. 4 Research objectives The main objective of the study is to establish the anatomy of marketing strategies that have been undertaken by Shenzhen power corporation in enabling market sustainability in foreign enterprises dominated industry.The auxiliary objectives that will enable to attain the main objective of the study include i. Identify the various means in which the corporations gather information that is used in designing marketing strategies ii. Identify the target groups for the companys produc ts and services. iii. Identify the criteria that the company uses to set its prices in ensuring useful price setting. iv. Establish the level of customer satisfaction by the corporations v. Establish the nature of the products and services provided by the corporation to the market and their unequalledness compared to the products of the competitors.1. 5 Scope of the study The study will be based on the looking at the practices adapted by Shenzhen power corporation in relation to the attempt of the corporation to get word market sustainability in tight competition offered by the foreign power enterprises that are characterized by a large capital base, operate with the application of high technology, and inherent with effective management. Therefore, the study is meant to address the responses from Shenzhen power corporation following the tight competition in the industry that enable the company to thrive in the industry.1. 6 Significance of the study The significance of the study follows from the argument that economic globalization is certain to disadvantage the domestic industries, that will have an adverse impact of retarding economic growth. Following the economic globalization of China and the example of Shenzhen power corporation, the above statement seem to be invalid because Shenzhen power corporation is still profitable regardless of the economic globalization as a Chinas domestic company.This implies that, there are lessons that are to be learnt from the practices of Shenzhen power corporation following its enhanced market sustainability. The lessons will be applied by other corporations that connect their failure to the concept to economic globalization. 1. 7 Hypothesis of the study The guesswork of the study is that domestic companies are not affected negatively by economic globalization, but it is their economic inefficiency that makes them incompetent in competing with the foreign companies.Therefore, the companies distressing performance a fter economic globalization is not as a result of the many competitors, it is because of their inefficiency that makes them less competitive. Competitive advantage is earned by designing relevant strategies and not by reducing the number of competitor. tilt is required in the economy in blocking the excesses that are associated with the monopolies, because the in high-octane companies are certain to exit the market due to their inability to compete favorable.Therefore, competition is likely to ensure efficient utilization of resources in meeting the needfully of the society. Domestic companies should thus design strategies that are meant to enable them withstand the competition in the market, and that will also promote efficient utilization of the national wealth in meeting the needs of the society. 2. 0 Literature reexamine 2. 1 Gathering information for strategy designing On ensuring effective strategy designing, an organization is required to gather information that is meant to be used as a tool for strategy designing.This act is meant to eliminate the act of designing strategies arbitrary as it posses the possibility of the strategies becoming irrelevant. Therefore, an government activity requires to position some measures in ensuring that information that is available and to be used for designing strategy is representational of the real market situation, otherwise the expected results from the strategies will never be projectd (Hiebing, 2004, pp 2).The source for information that will be useful for designing the strategies varies in relation to the nature of the industry, the operations of composition and purpose to which the information will be put into. For example convocation information that is meant to be used in designing the marketing strategies, an organisation is required to get the information concerning the market condition (Boone, 2005, pp 37) The information concerning the market condition may include the desires of the customers, th e market price of some products as provided by the demand and the supply forces, and practices of competitors.The right source for information that is to be used in designing marketing strategies should be obtained from the various agencies of the organisation who interact with the customers, because they are the ones who are accessible to the customers, hence likely to encounter the customer desires than the managers who are responsible of administration related matters (Cundiff, 2007, pp 48) On ensuring effective designing of strategies that are meant to improve the organisations competence, an organisation is supposed(a) to base its redesigning using the past experience.This will enable an organization to avoid the possibility of repeating the errors that were committed in the previous designs (Bradley, 2005, pp231) 2. 2 Pricing. The pricing mechanism normally depends on the nature of the market structure. A market structure can either be a monopoly, an oligopoly or a competiti ve market (Gummesson, 2002, pp 137) Price setting in each market structure vary depending characteristics in each market. For example, in the competitive market, every(prenominal) warm in the market is a price taker.They are price takers on the reason that none of the firms can determine the price in the, otherwise the price in the market is influenced by the price mechanism. In a monopoly market, a firm has the powers to determine the price of its goods through the controlling of the supply (Luck, 1985, pp 132). For a firm to survive in the competitive market, the firm is expected to sell at the market price as provided by the market mechanism, otherwise its products are likely to experience a low demand compared to the products of the competitors (Adcock, 2001, pp 102).This follows from the demand law, that explains that when the price of a good increases, the demand of the good is likely to decline. The decline of the demand follows from the consumer either switching to the con sumption of a substitute good that will benefit a competitor or press the consumption of the good due to the budget constraint (Hisrich, 2000, pp 112) In the competitive market, a firm that is likely to produce its goods and services at the lowest costs is the one that is likely to earn a competitive advantage over the other competitors in the industry.This follows from the fact that the production of goods with low costs will have an impact of increasing the profit borderline of the company when selling the goods at the market price (Kotler, 1988, pp 199). This will also enable the firm to compete favorably in the price war in enhancing the demand of the its products, because the company will be able to realize the desired profits level even when selling the goods at the price below the market price (Gualtianan, 1995, pp 89).A firm will only attain the low costs of production if it produces the goods with a lot of efficiency in avoiding waste, that is, the firm should enhance op timal allocation and utilization of the resources in attaining an optimal amount of output at a given the circumstantial level of technology. Organizations can enhance the efficient utilization of the resources by adaptation the various practices that are meant to optimally utilize the resources that include human resource development and the adaptation of the appropriate technology that is certain to enable efficient utilization of the resources owned by a firm (Webster, 1995, pp 47)2. 3 customer Satisfaction. Customer satisfaction plays an important role in creating consumer loyalties. The creating of loyalties will bringing the firm from incurring a lot of expenses in advertisement on the look for customers (Davenport, 2001, pp 69). The created consumer loyalty will retain the customers, as they are likely to consume the products of the company in the upcoming. Therefore, it can be perceived as an investment that is meant to benefit the firm to realize the flow of income in the early following the enhanced loyalty.Consumer loyalty is maintained by the firm providing high standard goods to their customers and listening to the desires of the customers, otherwise, the firm is certain to loose the already created loyalties in the future if it does not meet the desires of the customers. The firm is also required to engage in product innovations overtime that are supposed to improve the attribute of the products in factoring in the desires of the customers (Hutt, 1981, pp 201).This will reinforce the living loyalties and also create other more loyalties that are certain to ensure the future demand for the products and services provided by the firm. There normally exist variations in the desires of the customers, implying that the providing of standardized services and products to customers is certain to satisfy the customers in varied ways. In such a situation, a firm is required to either provide a wide range of products that is meant to meet the varied desires or provide customized products and services that are meant to improve the level of customer satisfaction.The advantage for creating customer loyalties through customer satisfaction is that the firm is likely to reduce the costs in advertisement and other promotions because the customers that are retained are cognisant of the operations of the firm and its operations (Godin, 1999, pp 32). This will enable the company to reduce its cost of operation that will be reflected as an increased bare(a) profits, hence a positive step towards profit maximization. 2. 4 increase differentiation and patenting.Product differentiation can be perceived as being a strategy that is meant to make the products of some firm unique compared to the products that are offered by the competitors. It will enable the customers to identify the products easily without misunderstanding it for the ones offered by the competitors. Differentiation may include the adding of some features to the products of fered to the market that is meant to carry the customers in enhancing high demand. The differentiations that make the product unique can be copyrighted to avoid the competitors from imitating the design of the product (Sandshoes, 2000, pp43).The patents will bar the competitors from imitating the products, thus a marketing strategy that is meant to enable the firm to minimize competition. 3. 0 Methodology 3. 1 Design The research will involve the battle array of information concerning the organisation in question, evaluate its performance over time, and for the most part by focusing at its profitability over time in relation to the various strategies that were taken by the organisation to enhance the performance.The study will look at the marketing strategies that are adapted by the organisation and their effects on performance of the organisation. The evaluation of the effects of the strategies on the organization will be identified on using the theories that have been establish ed in kind to the impact of various changes that are through within the organisation on the performance of the organisation. Therefore, the study will earlier use qualitative data than quantitative given the nature of the idea addressed. 3. 2 ParticipantsThe main participant in the research is the shenzhen Energy corporation. The company is chosen as a representational of the domestic companies in evaluating the impact of economic globalization on domestic companies and on how best the companies should responding through the designing of marketing strategies in enhancing competence. Shenzhen energy corporation has been used as a representational following its ability to withstand the competition from foreign companies in the energy industry in China. 3. 3 Data arrayFollowing the design of the research, the data that will be collected should be related to the marketing strategies that the Shenzhen energy corporation had taken in enhancing competitive advantage. The strategies tha t need to be identified include, how the company is enhancing customer Satisfaction, how does the company do pricing, how does the company reach the target group, how does the company gather information that is to be used in decision making concerning the design of marketing strategies, and how the company make its products competitive in the market. 3. 4. Data abridgmentData analysis will be done by confronting the identified marketing strategies with the existing marketing theory as provided in literature. This will enable the study to bring out the logic behind the strategies that were taken by Schenzhen energy corporation is ensuring its success. 4. 0 Time Plan. The research will take a time frame of ten weeks, where each week will be allocated its tasks as provided by the schedule below Task Week fashioning contacts on places where data and literature will be collected 1 Literature Reviewing 2-3 Collection of Data 4 Data Validation 5 Data Analysis and Interpretation 6-7 paper a draft report 8 Third party reading of the report 9 writing the final report 10 Bibliography Adcock, Dennis. market Principals and Practice. Financial Times/ assimilator hall. 2001. Allan, Clement. Economic Globalization Social Conflict. labour and Environmental Issues. Edward Elgar Publishing. 2004. Bradley, Frank. International trade strategy. Financial Times/ Prentice hall. 2005. Boone, Louis and Kurtz, David. Contemporary market. Thomson South-Western. 2005. Cundiff, Edward and Govoni, Norman. 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