The table presented below shows the sales for each sales person.
The pivot table presented above shows a summary of the total amount that is sold by each salesperson. The total sales were: $2,650 for Albertson, Kathy, $3,700 for Brennan, Michael, $1,935 for Davis William, and $400 for Dumlao Richard. The total sales amounted to $8,685. The table presented below shows the total monthly sales.
The results show that the total sales for the month January amounted to $5,175, $2,160 for February, and $1,350 for March.
Security measures
The first security measure that is available for protecting the customer is the encryption of the online store. For an electronic commerce website to be secure, it should provide safe transactions using various tools such as secure electronic transaction protocol (SET), secure sockets layer (SSL), or other types of encryptions (Rich 135). These encryption forms should accept and process the personal data of the clients without the data being breached or unintentionally made available to the public and other forms of security threats. Therefore, the technology of encryption helps in protecting the personal information of the consumers, especially during the checkout process (Becker 161).
One significant advantage of this measure is that it helps the customers to protect sensitive information. Also, the customers have a better idea of the persons or companies they are trusting with their personal data. A significant drawback of this measure is that communication with SSL encryption is relatively slow. This is based on the fact that there is a two-way communication that slows down the network and reduces the speed of response of the runtime server (Sadeghi 157).
The second security measure is two-step authentication. In this case, two bits of information are needed for every attempt of login. In most cases, websites require the use of an account password and a single-use verification code that is received through SMS or other recommended applications. Another example of the extra layer of security is the use of fingerprints in addition to passwords.
An advantage of this measure is that it provides a higher level of security. A disadvantage is that it does not work with a number of applications. Besides, the process of two-step authentication is quite long and cumbersome because customers are compelled to fill in security information twice. From the companys point of view, this measure is expensive to implement.
The third measure is the use of a password manager. In most cases, customers often reuse passwords, or they use simple passwords because they are easy to remember (Parsons 71). However, when the security of the customer and the entire business is at stake, the use of simple or reused passwords may not help. Therefore, password managers work by creating strong passwords. Besides, they store the created passwords in an encrypted vault that has a single master password. This enables the customers to easily access their details (Rezaul 429).
An advantage of this security measure is that it ensures that customers have passwords that cannot be cracked easily. Besides, they will have a unique password for every website that they visit. Also, all their passwords will be managed easily. This eliminates the risks that are associated with the use of simple passwords. One drawback of the password manager is that they do not work on all websites. Therefore, customers may be compelled to create simple passwords for such websites (Mjolsnes 135).
Works Cited
Becker, Ann. Electronic Commerce: Concepts, Methodologies, Tools, and Application, New York: IGA Global, 2007. Print.
Mjolsnes, Stig. Technology and Practice of Passwords: International Conference on Passwords, PASSWORDS14 Trondheim, Norway, December 8-10, 2014, Revised Selected Papers, Germany: Springer, 2015. Print.
The table presented below shows the sales for each sales person.
The pivot table presented above shows a summary of the total amount that is sold by each salesperson. The total sales were: $2,650 for Albertson, Kathy, $3,700 for Brennan, Michael, $1,935 for Davis William, and $400 for Dumlao Richard. The total sales amounted to $8,685. The table presented below shows the total monthly sales.
The results show that the total sales for the month January amounted to $5,175, $2,160 for February, and $1,350 for March.
Security measures
The first security measure that is available for protecting the customer is the encryption of the online store. For an electronic commerce website to be secure, it should provide safe transactions using various tools such as secure electronic transaction protocol (SET), secure sockets layer (SSL), or other types of encryptions (Rich 135). These encryption forms should accept and process the personal data of the clients without the data being breached or unintentionally made available to the public and other forms of security threats. Therefore, the technology of encryption helps in protecting the personal information of the consumers, especially during the checkout process (Becker 161).
One significant advantage of this measure is that it helps the customers to protect sensitive information. Also, the customers have a better idea of the persons or companies they are trusting with their personal data. A significant drawback of this measure is that communication with SSL encryption is relatively slow. This is based on the fact that there is a two-way communication that slows down the network and reduces the speed of response of the runtime server (Sadeghi 157).
The second security measure is two-step authentication. In this case, two bits of information are needed for every attempt of login. In most cases, websites require the use of an account password and a single-use verification code that is received through SMS or other recommended applications. Another example of the extra layer of security is the use of fingerprints in addition to passwords.
An advantage of this measure is that it provides a higher level of security. A disadvantage is that it does not work with a number of applications. Besides, the process of two-step authentication is quite long and cumbersome because customers are compelled to fill in security information twice. From the companys point of view, this measure is expensive to implement.
The third measure is the use of a password manager. In most cases, customers often reuse passwords, or they use simple passwords because they are easy to remember (Parsons 71). However, when the security of the customer and the entire business is at stake, the use of simple or reused passwords may not help. Therefore, password managers work by creating strong passwords. Besides, they store the created passwords in an encrypted vault that has a single master password. This enables the customers to easily access their details (Rezaul 429).
An advantage of this security measure is that it ensures that customers have passwords that cannot be cracked easily. Besides, they will have a unique password for every website that they visit. Also, all their passwords will be managed easily. This eliminates the risks that are associated with the use of simple passwords. One drawback of the password manager is that they do not work on all websites. Therefore, customers may be compelled to create simple passwords for such websites (Mjolsnes 135).
Works Cited
Becker, Ann. Electronic Commerce: Concepts, Methodologies, Tools, and Application, New York: IGA Global, 2007. Print.
Mjolsnes, Stig. Technology and Practice of Passwords: International Conference on Passwords, PASSWORDS14 Trondheim, Norway, December 8-10, 2014, Revised Selected Papers, Germany: Springer, 2015. Print.
The problem of determining jurisdiction over online merchants remains relevant to the legal system. In particular, in Saudi Arabia, before the adoption of e-commerce law, this issue was not regulated. Currently, the jurisdiction of an e-commerce business is determined by the location of its activities. However, the law still does not specify how foreign sellers should be prosecuted. Thus, the jurisdiction is governed by Sharia law and e-commerce law in Saudi Arabia.
Relevant Law
E-commerce systems in Saudi Arabia must comply with Islamic contract law and Sharia law. Thus, there are principles of fulfilling form (offer and acceptance), contracting parties (buyer and sellers) and subject matter (object and price). These rules are aimed at establishing mutual trust between the seller and the buyer. Therefore, according to Sharia law, commercial transactions must be transparent, and both parties must give their voluntary consent. An important aspect of Islamic law in relation to commerce is also the concept of the meeting place. This idea assumes that the buyer and the seller must be in the same place during a face-to-face transaction throughout the entire transaction. As soon as the transaction is completed or the discussion of the subject of the transaction is over, the place can be changed. In relation to e-commerce, this concept is also applicable since transactions are carried out instantly. After the transaction is completed, the meeting place can be changed.
E-commerce law in Saudi Arabia specifies how the jurisdiction of an online seller is determined. In particular, the law stipulates that the jurisdiction of business of registered service providers coincides with an entry from the trade register. For unregistered service providers, the place of business is determined by the information specified on the e-platform. Separately, it is specified that the location of the equipment and technical support of the e-seller do not determine the jurisdiction of the business. Thus, the jurisdiction of the business coincides with the place of its activity according to e-commerce law.
Applying to the Facts
In the practice of other countries and international e-commerce acts, it is customary to include a clause on the sellers jurisdiction in the contract. However, when such provision is absent, an ambiguous situation is created when it is difficult to determine the jurisdiction of the online seller. To alleviate the situation, an international treaty was created, which regulates the legislation regarding e-commerce at the cross-border level. These include the United Nations Convention on Contracts for the International Sale of Goods (CISG) and the United Nations Convention on the Use of Electronic Communications in International Contracts (CUECIC).
In particular, in EU cases, when it is necessary to determine the jurisdiction of an online seller, the laws of the member state are applied in the territory in which commercial activity was conducted. Thus, the jurisdiction of a website in international law is determined by the conduct of business or determined by contract.
Conclusion
The protection of buyers rights in transactions with foreign online sellers occurs under the Electronic Transactions Law, which governs all e-commerce transactions in Saudi Arabia. E-commerce law does not specify specific procedures for litigation against foreign sellers. At the same time, it specifies that the business jurisdiction is identified either by registration or information with an e-platform. Thus, the jurisdiction of the online seller is limited by the place of registration or business unless otherwise stated on the platform. If a foreign seller is eligible to do business in Saudi Arabia, then he is subject to domestic law. Therefore, the jurisdiction of the online merchant is determined by the place of business, which is considered the territory of Saudi Arabia.
The emerging technologies have redefined the manner in which firms conduct their businesses in the market. One of the most important impacts that technology has had on business operations is business communication. The manner in which a firm communicates with its target market determines how successful it can be in expanding its market share within a given region. The emergence of websites is one of the technology-driven changes that have become very significant in modern-day business operations.
At first, firms used websites to promote their brands by allowing the online community to understand the values, mission, and vision of the firm and identifying the factors that make the brand unique in the market. However, this has changed as firms try to find more ways of using their websites in their normal operations. Currently, most firms are using their websites to advertise their products and brands. Others have gone a step further and are now using their websites to sell their products.
According to Amit and Zott (2001), whichever business activity that a firm decides to use its website on, it is important to ensure that the website is effective enough to deliver the desired service. An effective website must have specific characteristics that make it superior to that of its market rivals, especially those that share the same market. It should achieve the objective for which it was set-up, and it should be easy to navigate even by online visitors who know little about technology. An effective website can make a significant difference in enabling a firm to achieve the desired objectives within the set deadline. In this paper, the researcher seeks to critically evaluate the Cleveland Clinic website.
Objectives
When conducting research, it is important to clearly stipulate the objectives of the study. As Harder and Jordan (2013) state, conducting research takes a lot of resources and time, and as such, it is necessary to outline what it seeks to achieve before the actual process of collecting data. In this study, the researcher focused on analyzing the website of Cleveland Clinic. The following is the specific objective that the researcher seeks to achieve.
To determine the effectiveness of Cleveland Clinics website in meeting the goals for which it was set up.
To achieve this goal, it will be important to look at various aspects of the website in order to understand how relevant it is in achieving these goals. The following are the supportive objectives used in this study.
To clearly outline the purpose of the website of Cleveland Clinic.
To analyze the accessibility of the website using Webqual.
To evaluate e-commerce operations of the website using the Value Creation Model.
Evaluation of the Website
According to Barnes and Vidgen (2001), when evaluating a website, it is important to critically understand the important features of interest that one seeks to investigate. In this paper, the website has been clearly identified as that of Cleveland Clinic. This Clinic is one of the best hospitals, not only in the United States but also in the world. The hospital often attracts clients from all over the world because of its specialized care and top quality services that it offers to its clients. The brand name is also very strong and trusted by those who have not even used its services. It is important to determine if this positive image is influenced by its heavily online presence, especially through its website or otherwise.
Purpose of the website
Cleveland Clinic has a comprehensive website that serves various purposes. One of the most important tasks that this website performs for this organization is an advertisement. As soon as one enters the website, the most conspicuous message that comes out is the fact that Cleveland Clinic is one of the top hospitals in the world. The message reads, Best Hospitals: A Top 5 Hospital (Dahlen & Lange 2008).
This alone passes a message to the visitors that Cleveland is one of the finest hospitals in the world. Not everyone knows about the top quality services that this firm offers to the market. For that reason, it becomes important for this firm to remind the visitors that it is the finest among the best hospitals in the United States and in the world at large. According to Wit and Meyer (2015), it is often good if the reputation comes from other websites. It is true that almost all the websites ranking international healthcare institutions consider Cleveland Clinic as one of the best. It is, therefore, not a situation where the message is presented on the website is misleading. The visitors who doubt that message can verify it on the various online platforms.
The second purpose of this website is to inform the visitors about the specific products that this healthcare firm offers. In most cases, clients often prefer visiting hospitals that are specialized in offering treatment to specific ailments. In the past, people would rely on information from friends and family to know whether a given institution offers the services they desire before making a commitment to travel to those countries.
However, this has changed as firms try to make it easy for their clients to access any information they may desire. On this website, visitors can easily know about all the products available at Cleveland Clinic. Most of their questions can easily be answered through this website.
The website also helps this clinic to promote e-marketing to its clients all over the world. According to Levinson and Gibson (2010), technology is transforming the way firms are conducting their operations in the market. E-commerce has become very popular because of its ability to eliminate the geographic barrier. For a long time, healthcare institutions have been struggling to find ways in which they can deliver their services on an online platform.
The need for the physicians to physically examine the patients complicated the ability of the medical experts to offer these services in an online platform. However, these institutions have found ways of overcoming this weakness. Through its website, Cleveland Clinic offers various medical products, including online examination and prescription of the right medicine. The website also offers a host of other services.
Critically Evaluation of E-commerce Operation Using Value Creation Model
Operating in an e-business platform is very distinct from running a brick-and-mortar firm. According to Baumann (2013), when running a brick-and-mortar company, the emphasis is always put on the structures and other physical attributes that clients can see and use in making a decision. In the case of a hospital, clients would always make a decision about the quality of services offered by a hospital by looking at the physical structures such as the buildings, medical staff, the level of cleanliness, the level of concern of the medical staff towards their patients, and such other similar attributes.
However, operating an e-business is very different, and it comes with its own challenges that a firm has to deal with. Unlike in a brick-and-mortar business model that enables the clients to see what they are planning to purchase, operating an online business eliminates all the physical attributes of a business. It creates a situation where a firm has to enable its clients to see its physical attributes through the use of words and pictures.
To win a client in an online business platform, a strong business brand alone may not be enough. A firm must go a step further and explain to the customers why their products are superior to those of the rival firms. They have to explain how their products are used, factors that should be taken when using the products, how the products can be accessed conveniently, and a host of such related factors. The information that a firm uses in its website in an e-business platform must be very clear and comprehensive enough.
This is important because the clients will only be relying on that content to get answers to any questions that they may have regarding the products offered or any other relevant information. E-commerce experts have developed various business models to help explain how value can be created through a firms website.
Amit and Zott (2001) developed a Value Creation Model that helps firms in ensuring that their websites have the capacity to achieve the specific objectives for which they were set. In this model, the two scholars talk about the value-creating potential of business websites based on four value drivers. In their view, efficiency, lock-in, complementarities, and novelty are the major drivers of value in an online business environment. For Cleveland Clinics website, its ability to create value for the firm can be critically evaluated from four perspectives.
Efficiency
Efficiency is one of the most important factors that an effective website promotes in a business environment. In a traditional business environment, information was only available to clients when they visited the physical stores of the firms from which they intend to purchase a given product. For instance, when a patient wanted to know something about Cleveland Clinic, he would be forced to visit the physical stores of this firm to get the information they needed.
However, this has changed with the emergence of e-business platforms. Information is made available to the clients on a firms website so that a patient can make the right decision about the purchase of a given product. According to Amit and Zott (2001, p. 12), a good website can unlock hidden value by enhancing transactional efficiencies by enabling reduced search costs, transaction speed, reduced distribution costs, reduced inventory costs, and more. These scholars emphasize three factors that a good website should achieve.
The first factor is the reduced cost of the search. In the past, clients would be forced to make phone calls or even visit Cleveland Clinic to know about the products, their costs, and when they can be purchased. Given that the firm is now operating e-commerce, clients should have this information readily available without having to visit the premises of the clinic. On its website, Cleveland Clinic has outlined all the important medical products that it offers. The website enables clients to review the services available at this firm. Through this website, a client can then make an appointment with a doctor. The process is simple and straightforward.
The website also has a section that specifically addresses the asked questions by the online visitors. The Cleveland Clinics website also gives the clients directions when planning to purchase any of their available products. The hospital has various clinics, laboratories, and pharmacies located in various parts of the country. Some of them are located outside the United States. Through this website, clients can know about the nearest facility where they can get these products conveniently.
Value can also be created by enhancing transaction speed. According to Baumann (2013), time is an important factor when planning to purchase a given product on an online platform. The middle class spends most of their time at work, trying to advance their career. They do not have a lot of time to waste in trying to move from one location to the other. This is specifically the case when trying to purchase medical products. In most cases, the clients find themselves in an emergency situation where a decision must be made within a very short time to save the life of a patient or to relieve him or her of the pain. The website of Cleveland Clinic is efficient in this respect.
A visitor can easily navigate the website and identify the products needed within a short time. Patients can then proceed to make an appointment, and arrangements will be made so that the clinic will be ready to receive the patients as soon as they arrive.
Reduced distribution cost is another attribute of an efficient website for a firm that operates on an online platform. According to Rogers (2013), a good website must always help in reducing the costs of making products available to the clients by eliminating some of the fees that a firm has to pay when operating a brick-and-mortar store. This website helps in reducing the distribution costs for this hospital. In this e-commerce platform, clients all over the world can book an online appointment with physicians of Cleveland Clinic.
The client will then explain the health complications to the physicians. Based on the symptoms presented by the client, the doctor will be in a position to determine what the patient is suffering from or the suspected complications. If the client is far from its widely distributed laboratories, the doctor can send the patient to conduct tests in the local laboratories and e-mail the results. The doctor will review the results and prescribe medication for the patient.
A referral will only be necessary if the patient needs further medical procedures that can only be conducted at the premises of the firm. It means that most of the transactions are completed on an online platform. The doctor may prescribe medication that the client can purchase from the local pharmacies. If necessary, the clinic sends the medicine to a location desired by the patient. The online transaction makes it possible for this clinic to operate globally. The costs that the firm would have been forced to incur by setting up and operating clinics all over the world are eliminated.
Amit and Zott (2001) also look at the issue of efficiency from the perspective of reduced inventory costs. In a traditional brick-and-mortar business environment, firms were forced to have stores where clients would purchase their products. However, e-commerce eliminates this problem by making it possible for firms to sell their products to clients without having to visit brick-and-mortar stores. The website of Cleveland Clinic makes it possible for the clients to make purchases of the products of this firm without having to leave the comfort of their homes or offices. To the hospital, this function of the website significantly reduces the cost of inventory management. Once a client makes an order for a given medicine, the sales team will get it from the nearest pharmacies and deliver it to the desired locations.
Complementarities
According to Amit and Zott (2001), to operate successfully in an e-commerce business platform, it is important to create a virtual community of product and service providers of complementary products. It is important to have a system where clients can get all the related products under one roof within the online community. This not increases customer satisfaction but also promotes the brand and sales volume of the companies which decide to co-exist in the online community.
This is one area that Cleveland Clinics website has performed dismally and may need to improve in order to help this firm achieve greater success. One of the most important complementary products for health care products is the gym. According to Bainbridge (2007), most of the lethal lifestyle diseases are caused by the junk food that people eat and the problem of lack of exercise. Coronary diseases, fertility problems, obesity, complications relating to aging, and mental stress are some of the health problems that are attributed to lack of exercise.
In most cases, doctors would advise their patients to maintain regular exercise as a way of managing some of their health problems and minimize the chances of them having to visit the hospitals. However, these doctors rarely direct their patients to specific gyms, where instructors have some medical background that enables them to handle clients with health complications. For instance, a person who has a heart problem should be closely guided when conducting an exercise.
There is always a fear that when they are allowed to over-exercise, then they may overwork their hearts, and this may put them in danger. As such, these patients require highly qualified gym instructors who can handle their delicate medical condition. This website mentions the importance of regular exercise for its patients. It explains that the inpatient and outpatients have access to the gym services offered at some of the clinics of this firm. However, it is evident that there is no attempt to create a community that incorporates other gyms located in various parts of the country. The management should find a way of addressing this weakness.
According to Baumann (2013), for a hospital to successfully conduct an online business, it will require a close partnership with laboratories in all the targeted locations. It is true that a physician can get to know about the health problem of a patient based on a detailed and accurate description of the symptoms. However, there are cases where a patient is unable to explicitly explain these symptoms. This may be due to lack of the right words or age factor when handling children unable to explain themselves properly. As such, the services of medical laboratories are indispensible for these online hospitals.
As stated previously, Cleveland Clinics doctors may sometimes send their patients to the local laboratories to conduct specific tests that can help them in making the correct diagnosis. A critical review of the firms website shows that there is no close working relationship between this clinic and laboratories that offer complimentary products. It is possible that sometimes when the doctors instruct their patients to go and conduct the test, they may advise them on the laboratories to visit. However, it should be official and clearly stated in the firms website that these specific laboratories are in the same virtual community as Cleveland Clinic.
Medical research institutions such as the Center for Disease Control and Management (CDC) are very important partners that a firm should consider keeping very close. Cleveland Clinic has one of the finest research centers at its main campus where its teams of researchers often conduct studies to understand the emerging health complications. However, the primary focus of this organization is not to conduct research, but to offer medical services to its clients.
As such, it has a lot to benefit by having a close working relationship with these research institutes. In its website, there is no information about a close working relationship between this firm and other major research centers. This issue should be addressed to ensure that the website shows close working relationship with various trusted research centers in the United States and other parts of the world.
Lock-In
Amit and Zott (2001, p. 67) define lock-in as the ability of a business model to prompt users to engage in repeat transactions. It is the ability of a website to encourage a customer to make repeat purchases after making the initial purchase. According to Kim (2012), it is easy for a client to make the initial purchase just to test the effectiveness of the brand in meeting the specific needs. However, their ability to make repeat purchase only depends on whether their needs are effectively met or not. When a customers needs are effectively met, then they are more likely to make repeat purchases.
When their expectations are exceeded, then they shall be thrilled. A customer who is thrilled by a companys products will not only make repeat purchases but also become an evangelist who will encourage friends and relatives to purchase such a product. On the other hand, when a clients need is not properly met by a given product, then they are likely to avoid making any repeat purchases.
Lock-in is achieved when the website is able to find ways of discouraging clients from using services of other websites offering similar products. This can be achieved by making it challenging for the clients to switch to other website. The Cleveland Clinics website has tried to achieve this goal. The website offers its users regular newsletters about emerging health issues and how to stay safe. For instance, the website looked at the issue of Ebola critically and advised its online community on how to behave in case they had to travel to the areas where there were outbreaks. However, it is important to note that the website has no feature that may create a sense of loss for the clients who decide to switch their loyalty to other website.
This is so because they can easily use other websites and still continue enjoying the services offered by Cleveland Clinics website. The only factor that this clinic relies on to ensure that their clients do not switch their loyalty to other firms is the quality of its products and the strength of its brand.
Novelty
The Value Creation Model proposed by Amit and Zott (2001) emphasizes on the need to be innovative when it comes to operating an e-business. They argue that the internet provides businesses with limitless opportunities to be innovative and to find ways of creating new revenues through their website. According to Baumann (2013), innovativeness defines how successful a firm can be in the market. The Cleveland Clinics websites main role is to offer its clients opportunity to access medical services in an online platform. The website has identified other ways of earning revenues from its clients. In the website, the firm has a small section that is set aside for advertisement.
Advertisement is one of the major ways of earning revenues in an online platform. Cleveland Clinic is a top hospital and its website is often visited by numerous people all over the world almost on a daily basis. This is a cleaver way of earning extra income from non-core business activities. Corporate social responsibility is often very important but expensive undertaking for every firm.
Firms are forced to set aside some money to ensure that they give back to the society. For Cleveland Clinic, its website is making it possible for it to conduct corporate social responsibility without having to spend anything. It has a Make a Gift button where willing people can make their donations towards just course. The firm then uses such donations to sponsor corporate social responsibility. It also has a Need Help button where its clients unable to pay their bills can request for support. The website makes it possible for the hospitals to collect donations from well-wishers which are then used to support those who cannot afford paying the bill. Through this strategy, the firm ensures that its customer base is expanded hence an increase in revenues.
Analysis Using Webqual and Relevant Accessibility Measures
Webqual is one of the currently popular tools that used in analyzing relevant accessibility measures. According to Gelder (2014), this tool is based on the Theory of Reasoned Action which states that individuals behavior (in this case revisiting or purchasing from a Web site) can be predicted from their intentions, which can be predicted from their attitudes about the behavior and subjective norms. This tool will be useful in analyzing this website for Cleveland Clinics website. This website quality assessment tool looks at the following areas when analyzing a website.
Usefulness
Webqual analyzes the usefulness of a website in four distinct areas as discussed below.
Information that that is fit to the task
The information in the website must fit the purpose for which it was put up. This aspect, in regard to Cleveland Clinics website, has been comprehensively analyzed in the above section.
Interactivity
Interactivity of a website determines its capacity to meet the needs of the visitors. Cleveland Clinics website enables its users to ask questions and in most of the cases responses are e-mail. It should introduce Live-Chat technology to improve its instructiveness further because currently it lacks this important feature. The figure below shows the avenues used by this company to interact with its clients.
Figure 1: Interactivity Platforms.
Trust
Gelder (2014) says that a website must protect personal details of the clients and ensure that third parties do not have access to them. The website has security features that protect clients information at all times. The clients who do transactions have accounts with unique security features.
Response time
It is important to lower the waiting time as much as possible for the online clients. At Cleveland, clients who transact through the website get their desired services speedily because measures have been put in place to reduce response time. The graph below shows ratings by online customers about waiting time at top healthcare institutions in the country.
Ease of use
This tool also emphasizes on the need for the tool to be easy to use. Ease of use is looked at from the following contexts
Easy to understand
The content of the message in the website should be simple and easy to understand. Cleveland Clinics website has clear messages which are easy for the readers to understand.
Intuitive operations
The website should be easy to navigate even by individuals who have limited knowledge about navigating websites. This aspect has been critically discussed in the above section.
Entertainment
A good website should be entertaining. According to Baldry and OHalloran (2006), the following are the main areas of appeal that a website should have to be considered entertaining.
Visual appeal
Figures, graphs, and images are very important in making a website appealing to the visitors. The website has photos and images which make it appealing and very informative.
Innovativeness
Webqual, just like Value Creation Model, looks at the innovativeness and creativity of a website. Through innovation, a firm gets to earn more revenues. The figure below shows that Cleveland Clinic is one of those earning more revenues from their online activities.
Figure 2: Profitability based on level of innovation.
Emotional appeal
The emotional appeal of a website also determines how frequently a website is reviewed. Cleveland Clinics website uses images to capture the emotions of the audience, especially when it comes to supporting the needy in the community.
Complimentary relationship
The two tools (Webqual and Value Creation Model) share the view that a good website must try to be part of an online community that brings together firms and customers that offer and purchase complementary products.
Consistent image
The images used in the website should be consistent with the message being presented. Cleveland Clinics website uses images to support the messages that they try to pass to their audience. The visitors can easily relate the pictures with the message.
Completeness
The model looks at completeness in terms of presenting the message to the visitors in a clear and comprehensive manner. This aspect of analysis has been looked at critically in the above model.
Conclusion and Recommendations
Cleveland Clinic is one of the healthcare institutions which have become very active in the online platforms. It has designed its website to enable it interact with its customers and offer them products in an online platform. The critical analysis of this website reveals that it has met all the basic features that a standard website should have to facilitate e-business transaction. However, there are some weaknesses that the management of this firm should find a way of addressing. The recommendations below should be observed when addressing these challenges.
Cleveland Clinic should ensure that its website has Live Chat software to improve interactivity with the visitors.
The website should focus on creating an online community of complementary products.
The management of this firm should try to find a way of creating lock-in in its website.
List of References
Amit, R and Zott C 2001, Value creation in E-Business, Strategic Management Journal, vol. 22, no. 6, pp. 493-520.
Bainbridge, W 2007, Expanding the Use of the Internet in Religious Research, Review of Religious Research, vol. 49, no. 1, pp. 7-20.
Baldry, A & OHalloran, K 2006, Multimodal corpus-based: Approaches to website analysis, Equinox, London.
Barnes, S & Vidgen, R 2001, An evaluation of cyber-bookshops: the WebQual method, International Journal of Electronic Commerce, vol. 6, no. 1, pp. 11-30.
Baumann, C 2013, Analysis of the website www.dell.com, Cengage Learning, New York.
Dahlen, M & Lange, F 2008, Marketing communications, Wiley, Hoboken.
Gelder, S 2014, Global brand strategy: Unlocking brand potential across countries, cultures & markets, Kogan Page, London.
Harder, C & Jordan, M 2013, The Transparency Of County Websites: A Content Analysis, Public Administration Quarterly, vol. 37, no. 1, pp. 103-128.
Kim, N 2012, Website Design and Liability, Jurimetrics, vol. 52, no. 4, pp. 383-431.
Levinson, C & Gibson, S 2010, Guerrilla social media marketing: 100+ weapons to grow your online influence, attract customers, and drive profits, Entrepreneur Press, Irvine.
Rogers, R 2013, The Website as Archived Object, Digital Methods, vol. 3, no. 54, pp. 61-82.
Tepper, S & Tepper, D 2014, The Cleveland Clinic manual of headache therapy, Cengage, New York.
Wit, B & Meyer, R 2015, Strategy synthesis: Concise version; resolving strategy paradoxes to create competitive advantage, Thomson Learning, London.
Steven Adlers book On Broadway: Art and Commerce on the Great White Way are devoted to the history and further development of Broadway. Steven Adler, former Broadway stage manager, casts light upon the perspectives of the development of the whole American theatre in his book. He presents the most outstanding representatives of the theatre who have influenced the history of Broadway. The elite of the theatre including Arthur Laurents, Frank Rich, Stephen Sondheim, Des McAnuff, Robin Wagner, Todd Haimes is described in Adlers work. The author casts light upon the current situation of Broadway art and the circumstances which may make the theatre to be at the border of decay. Many producers are afraid to risk producing their shows on the stage of Broadway. They prefer to try their works on the stages of other theatres as far as it is quite difficult to foretell the public response. It is very important to follow the interests and needs of the audience which is so changeable.
The author demonstrates the role of producers, managers, performers, writers, artists, critics, theatre owners, lawyers, citizens in the history of Broadway and presents their own personal views on the development of Broadway. It is quite interesting to observe one and the same concept from different points of view. The author makes a comparison between economic and creative forces that influenced Broadway. Although it is quite complicated to associate high art with filthy lucre, art is impossible without money. It is one of the most important problems for every producer to find the money for his show. They are looking for investors which pay all spending as far as people devoting their life to art also need money for living. Steven Adler describes the work of producers, their responsibilities, and their crucial role in making a masterpiece which arouses the spectators interest and makes the show popular. Modern Broadway is considered to be the most visited place of interest by tourists. It is one of the most appealing entertainment centers. Steven Adler analyzes all the elements which make Broadway production nowadays including the spectators appetites and ruthless critiques. More than that, the author presents the way of Broadway from pure art to a profitable business. This cultural center is a teaser for many agencies and producers to make money. The book concerns itself with both sides of this historical place: cultural as well as an economic one. Most people are accustomed to considering Broadway to be the cultural center and the place where every connoisseur may have an aesthetic delight rather than a place for making money. Enjoying shows staging on Broadway, many people dont think about all refinements of its production. Steven Adler helps the theatre workers as well as the theatre connoisseurs to go deep into its process. This book has made me look at Broadway in another way. Broadway is the most appealing place for many people.
Questions:
What are the main factors influenced the development of Broadway?
How do you see the perspectives of its further development?
Are economic or cultural factors dominant in the development of Broadway? Explain your point of view.
What is the role of the writer and the producer in the popularity of the show?
Who plays a crucial role in Broadway? What cannot you imagine the theatre without?
A human is a creature that wants to believe that everything is under control and can be improved by people as soon as there is a need. Unfortunately, this kind of human self-interest and self-confidence does not make a human stronger. On the contrary, these are some of those most dangerous and unpleasant factors that can weaken a person. A person can hardly guess what is happening. The point is that people cannot even guess that their desire to have or produce more lead to their self-destruction. Hawken (1994) admits that that in the process of taking too much, we [people] waste too much (p. 37). This author introduces several interesting ideas about the connection between the environment and business, human desire to succeed, and human inability to avoid waste, etc. There are many socio-economic implications of waste, and Hawken helps to realize how people and waste are interconnected. This paper aims at analyzing several Hawkens approaches with the help of which it is possible to comprehend the essence of waste and the outcomes it has in regards to people and the economics people try to create to survive. It is not only a philosophical concept that has to be considered. It is a call to action for people, who want to be saved.
Position Statement
One of the most captivating and powerful ideas offered in the source under analysis is the fact that nature is cyclical, and waste created by one living system can become food for another living system (Hawken, 1994). At the same time, people are bothered by the necessity to dispose of wastes and cannot understand that their main problem is connected with the creation of wastes. Unfortunately, people continue neglecting the rules and standards offered by nature. They like to think that they can gain control over everything and create the conditions that are preferable to them. People start neglecting the fact that nature is the basis of everything. As soon as the limit is achieved, nature cannot stand human activities anymore and declares itself most unexpectedly. The amount of the damage people do to the environment, as well as the dangers that are created by mankind, cannot be defined; that is why the main problem is not the necessity to think about the best means to dispose of wastes but the necessity to stop creating wastes, especially toxic wastes that are too harmful to people (Hawken, 1994).
Support of the Position
Nowadays, the issue of waste creation and disposal is burning indeed. People continue talking about the necessity to control the amount of waste produced, investigating and categorizing waste, and offering their independent ideas on how people can improve the current environmental situation (Hawken, 1994). However, even the fact that people know that there are many types of waste as hazardous, medical, industrial, electronics, agricultural, etc. (Pichtel, 2014) cannot help these people improve the environment they have to live in because they are not able just to stop using something. It is hard to realize how dangerous human actions can be.
Philosophers offer to use the concept of time as the only means to identify the quality of waste and its danger (Viney, 2014). Time shows the way of how a particular stage can be experienced or reproduced. Time explains how waste can be disposed of. Time identifies the length of the creation or destruction of waste takes place. Socioeconomic implications of waste are hard to define and measure. Of course, they can be defined as dangerous and irreversible. But people want to know and understand the essence of these implications. If concerns about waste and its disposals are neglected or misunderstood, several problems may take place including resource pollution, multiple diseases, greenhouse gasses, etc. (Singh & Chari, 2010). All these studies help to realize one simple truth: people want to protect themselves against the threat of waste they created. However, they are cornered because they do not know how to stop using the current technological progress and industrial opportunities and creating wastes to the environment.
Examples and Explanations
Hawkens position (1994) is definite indeed and can be explained with the help of several good and interesting examples. First, Hawken writes about the ways of how people like to think they can deal with the waste they produce. They simply transfer one household waste from one environment to another and believe that the bigger size of a new environment is the best solution for people (Hawken, 1994). However, this solution is far from being the best. It is not even an option. It is just the only available means that can be used. Hawken (1994) explains that the biosphere is the source of human wealth that continues to be polluted by people. The time may come when the biosphere loses its ability to protect human lives, and civilization faces a serious problem. It is one of the socio-economic implications of waste people should know.
Another important implication is based on the necessity to create myths with the help of which it is possible to change the image of the environment and provide people with a kind of hope. The myths focus on the necessity to analyze the current industrial economics and biological knowledge and prove that there is still an opportunity to clean up the environment people live in (Hawken, 1994). Of course, environmental consciousness is important (Dente, Fareri, & Ligteringen, 2013), but it can be easily substituted by the necessity to promote economic, political, or agricultural aspects. People like to investigate the reasons why waste is created. People find it crucial to evaluate human activities to diminish the level of threats created by their actions. However, the main danger is that the majority of actions are in a written or oral form only. It is hard to take real action. It is impossible to explain and define the outcomes of economic solutions made regarding the existing environmental problems.
Even though people try to take many precautionary measures, the implications of the current studies on the effects that may be caused by the compounds of wasteful products show that people are not able to protect themselves against the harmful effects of waste in their lives (Hawken, 1994). People develop different programs and consider their economic and environmental possibilities. They like to introduce new ideas on how it is possible to diminish the level of harmful effects when waste is created. On the one hand, it is a sign of progress that people understand that they cannot avoid creating waste and have to elaborate on the methods to solve the current problems. On the other hand, Hawkens article shows that the circulation that exists in nature predetermines the way of how the problem of waste circulates in society: as soon as the problem appears, it may be solved; still, it does not disappear but gains another form.
Finally, Hawkens work is a significant contribution to the way of how social and economic implications of waste should be considered and analyzed. The author informs that the present standards that aim at regulating the existing problem of waste creation and the methods that are used to solve the problems cannot be effective all the time (Hawken, 1994). People need increasing amounts and different types of poisonous chemicals to live in a healthy and civilized world (Hawken, 1994, p.51). Man-made toxins help to survive even if they create the conditions under which the industry can work. His identification of the problems and the inability to solve them serve as a good chance for people to have hope and prospects for the future.
Waste scavengers turn out to be the main means to control the amounts of waste even though this group of people does not earn a lot and is not accepted by society according to the level of contribution made (Magaji & Dakyes, 2011). Not many researchers pay enough attention to the role of this group of people, still, it is better to focus on their role in society. In other words, if people can understand the threats they create, they still have an opportunity to prolong their existence. The only obstacle they may face is the desire of nature to help them in their intentions. If nature can co-exist with the demands of society and the intentions to promote technological or industrial progress, people have a chance to survive. Unfortunately, the intentions of nature are hard to define and comprehend. And time remains to be the only factor that does matter.
Current Understanding and Examples from Past Readings
To organize appropriate waste management, American consumers and manufacturers try to categorize waste considering its physical and chemical properties (Pitchel, 2014). Among a variety of waste classes, municipal (also known as household or domestic) and hazardous types of waste remain the most crucial because they may arise from industrial, commercial, residential, etc. origins. Even though people promote waste management properly, it is hard to resist the fact that such waste as office paper, food scraps, cans, bottles, wood pallets, abandoned autos, etc. does exist and continues to damage the environment. It proves one of the main ideas offered in the article and supports my current understanding of waste management that even if people can manage waste control, it is impossible to dispose of all waste. The change of the place where waste can be placed does not alter the fact the waste exists and create a problem.
Another example is the role of hazardous waste and the inability to avoid it today. Hazardous waste can be produced in the same spheres as domestic waste is. Still, its quantity exceeds a particular limit usually (Pichtel, 2014); that is why the management of this type of waste has to be done on federal or state levels. Hazardous waste is ignitable and toxic. Corrosivity and reactivity are its key features. It is expected that waste to be managed with bigger care even regarding its transportation. The presence of such waste in the world proves another idea offered in the article about the inability for people to realize how dangerous their activities can be. The desire to achieve progress leads to the creation of dangerous waste. People should realize this proportion.
Finally, the creation of EPA waste management in 1989 was a crucial step to improve the waste situation and reduce the impact of waste on people (Pichtel, 2014). More than 80 million tons of waste was recycled in a certain period. It proved the last idea that time is the only appropriate measure that can be used to solve the problem of waste. People need more time to understand how to manage waste correctly. However, time promotes the development of waste at the same time. That is why time is one of the most dangerous and, at the same time, helpful items that cannot be neglected when people try to improve waste management.
Conclusion
In general, the work developed by Hawken in 1994 has a significant impact on the actions that are taken today and the decisions that are made by people every day. The concept of waste and its implications is crucial indeed. However, the way of how waste is created should become the main problem for consideration. It is not enough to know what to do with waste people produce. It is more important to understand the urgency of the amounts of waste created and work with the reasons of why waste is created. The creation of waste defines several social and economic aspects of human life. People are under threat of extinction due to their own inability to comprehend their weaknesses and inabilities to co-exist with nature. Human confidence and desire to have more are the reasons why so many wastes are created. Hawken (1994) teaches the reader not only to understand the reasons why people should pay more attention to waste produced but also to realize that it is still possible to change the situation and create better living conditions. Until people comprehend that waste does matter in the world, they have a chance to be saved. As soon as the problem of waste stops bothering people, it can be the beginning of the end, a terrible end created for and by people.
References
Dente, B., Fareri, P., & Ligteringen, J. (2013). The waste and the backyard: The creation of waste facilities: Success stories in six European countries. New York, NY: Springer Science & Business Media.
Hawken, P. (1994). The ecology of commerce: A declaration of sustainability (37-55). New York, NY: HarperBusiness.
Magaji, J. & Dakyes, S.P. (2011). An assessment of socio-economic impact of waste scavenging as a means of poverty alleviation in Gwagwalada, Abuja. Conference Journal of Environmental Studies, 42-56. Web.
Pitchel, J. (2014). Waste management practices: Municipal, hazardous, and industrial. Boca Raton, FL: Taylor & Francis Group.
Singh, R. & Chari, K.R. (2010). Socio-economic issues in waste management by informal sector in India. Birla Institute of Management Technology, 10, 1-5. Web.
Viney, W. (2014). Waste: A philosophy of things. New York, NY: Bloomsbury Academic.
China Council for the Promotion of International Trade (CCPIT) was established in May 1952. It consists of businesses and organizations, which influences the economic and trade sectors in China. It is a state owned public agency with a large part of its budget coming from the government. It is an institution that promotes foreign trade in China. The main aim of this institution is to enhance the development of foreign trade between China and other countries. It also promotes the introduction of advanced foreign technologies. It was given power by government of China to handle all foreign related trademark issues. It consists of a team of highly qualified professionals. In 1988, the institution started using the name China Chamber of International Commerce (CCOIC), which is used together with CCPIT (Tao, 2003).
It admits new members from businesses in various parts of China and enhances trade through consultation, legal assistance, exhibition etc. A president, who is assisted by vice presidents, assistant presidents and advisors, heads the institution. The company has been recognized for the establishment of an effective intellectual property System in China. This report involves the marketing strategies adopted by the institution in order to survive in the competitive business world.
Market segmentation strategy
Marketing segmentation is the process of subdividing a homogenous market into segments with similar needs and wants (Schnaars, 2007). This is done in order to establish a marketing mix, which meets customer needs of a target segment. It is aimed at acquiring a large portion of sales to a certain group of customers. Most companies are unable to supply the needs of the whole market, hence the need to subdivide the market into segments.
Market segmentation strategies are based on demographic, psychographic and geographic differences. China Council for the Promotion of International Trade (CCPIT) is vested with the mandate, to promote international trade and introduction of foreign investment. It provides services to all businesses. It offers different services to different businesses hence market segmentation (Tao, 2006). The services provided include consultation, organizing seminars on international markets and Chinas exhibition abroad.
The institution also hosts foreign exhibition in China and provide legal services as well as patent and trademark application. This institution makes use of multilateral and regional platforms enhance foreign trade and economic cooperation. For instance, it collaborates with US chamber of commerce in order to strengthen communication between business in China and United States (Tao, 2003). China has designed a program to revive industrial bases in North-Eastern China. CCPIT has developed a consultancy group made of representatives from China and other countries business organizations. This group holds discussions on how this part of China will be reinvigorated.
Marketing mix
Marketing mix is also known as the 4Ps of marketing. It is a combination of four elements, product, price, place and promotion (Kotler, 2007). Companies need to create a proper mix of the right product, sold at the appropriate price, in the right placement, and the use of the right promotion method.
Product is one of the most important elements of the marketing mix. Product means goods or services offered to customers. The product must have the right features to attract the target customers. The target customers need to be made aware of the existence of a product or service. The product or service range is a function of the marketing mix. The services or product offered by a company may be extended either to match competition or to make it more acceptable to a new group of customers (Schnaars, 2007).
China council for the promotion of International Trade (CCPIT) provides several quality services to businesses in China and other countries. Its main responsibility is to enhance international trade and economic development in China. Its services include developing foreign trade relations, sponsoring exhibitions, providing advisory services and carrying out other foreign trade promotion activities (Armstrong, 2008). Its services goes to all enterprises, also include providing trade and economic information, organizing seminars on international markets, hosting foreign exhibition in China and providing opinions to related government organizations. CCPIT provides quality services to its customers. These services are available all the time. It provides the appropriate service to the right customers.
CCPIT services help large companies in China to make investment in other regions across the world and compete on the international market. CCPIT enhances Chinas foreign economic cooperation and trade; this helps Chinas enterprises to go global and to participate in international cooperation.
The company focuses on business matching among different sectors. CCPIT provides quality legal services which are of great help to the business sector. These services are provided by qualified and experienced legal experts in the institution. Legal services include the following areas, arbitration, conciliation, issuing trade certificates and legal consultancy. CCPIT patent and trademark law office has helped most companies in the recent years and it actively working on litigation.
The institution also provides services to the government sector. Most of governmental agencies in China consult CCPIT on policy and legal matters. It encourages Chinese companies to promote Chinese investment across the globe and to develop Chinese Multinational Corporation. The institution has also designed a new service in areas of commercial certificates particularly in factual certificates. This is a fresh service offered by CCPIT, and this has helped most of the companies in China.
Price is another key element in the marketing mix (Armstrong, 2008). It is the amount of money charged for somebody in exchange of good or service. It is an important aspect as it creates sales revenue; all the other elements are costs. Pricing decisions should consider profit margins and probable price of the competitors. It also includes discounts, financing and other options such as leasing (Kotler, 2007). It determines the value of sales made by a company. The pricing policy of a company varies according to time and circumstances. CCPIT offers its services to businesses at an affordable price. It has a broad knowledge on pricing negotiations across the world. It participates in the formulation of policies on product prices. According to the policies of CCPIT, foreign based enterprises which last for 10 years are freed from paying local income taxes for a period of 5 years.
Export oriented enterprises and advanced technology enterprises are exempted from paying local income taxes for 10 years. Foreign invested enterprises which purchase more than 2000 square meters commercial building property are exempted from paying tax for 5 years. The key industry zone and newly developed industry zone are freed from local income tax. The reduction in taxes is a form of price reduction. CCPIT uses incentive of reducing taxes to encourage enterprises to promote foreign trade. This enabled several businesses in China to focus on foreign investment, and this has helped in marketing Chinese products a broad.
Promotion is another element of the marketing mix. It involves communicating about goods and services to customers. It provides customers with information that will help them in making the decision to buy a product or service. The cost of promotion represents a large proportion of the overall cost of producing an item. Successful promotion increases sales revenue of a company. Promotion activities include advertising, public relations, media types; personal selling etc. A company should ensure that customers are aware of the products or services offered by the company. Promotion decisions involve communicating and selling to potential customers. CCPIT promotes Chinas exports, foreign investment, and imports from the world and Chinas investment overseas. It promotes international trade and economic cooperation which needs a strong promotional strategy.
It makes use of regional and international platforms to promote foreign trade and economic cooperation. It collaborates with United States chamber of commerce to promote its operations in United State. It organizes several events such as trade shows, visits, seminars, and meetings in China and across the globe (Sutter, 2009). CCPIT organizes several meetings to discuss on service improvement and invites business people from different regions. It collaborates with ASEAN chamber of commerce on the establishment of ASEAN-China Free Trade Area. It has organized several events such as EU-China Partenariat , China Africa Cooperation Forum and CEPA promotion week.
These events help in promoting services offered by CCPIT (Robinson, 2006). The institution is also involved in organizing international and trade events to promote its services. For instance, it was actively involved in bidding for the World Expo 2010 in Shanghai. It has also improved its effort in preparing for the China Pavilion of World Expo 2005 Aichi in Japan (CCPIT, 2003). The company has organized promotion week of Chinese commodities as well as exhibitions and publications to promote export. CCPIT has also established a website which provides information about the institution and services offered.
Finally, the last element of the marketing mix is the place. Place or placement involves channels of distribution that helps in delivering products or services to the target customers (Hartley, 2009). It performs transportation and logistical functions. It includes market coverage, selection of channel members and logistics. It involves getting the right product to the right customer at the right place. The choice of distribution channel depends on various circumstances. Some companies will prefer to sell products to wholesalers who will sell to retailers, while others will prefer to sell directly to customers. CCPIT has established a network of about 700 offices in China and other countries in the world.
This enables the company to offer professional services, to many companies across the globe. In order to enhance proper delivery of service to businesses, CCPIT has established a trade support system in most countries. The trade support system mainly serves to meet the needs of Small and Medium Enterprises (SMEs). The institution helps companies to explore markets in Asia, Africa, and Latin America. It works together with local government to exhibit products in other countries trade shows. It organizes tailor made training programs to companies workers (CCPIT, 2003).
Recommendations
CCPIT mission is to provide professional and social business, environment to business people and to introduce people to Sino-international business community. Its purpose is to promote trade, economic and technological development in China and other countries. It plays a great role of promoting Chinas trade through foreign liaison. Since its inception, CCPIT has enhanced improvement of international trade between China and other countries.
However, there are still some challenges which need to be improved. The structure of export products in China has not been fully utilized. The institution is vested, with the mandate to promote export should ensure that; this product structure is further optimized. The foreign based enterprises have a large proportion of total export volume. The competitiveness of export enterprises should be increased. The export markets are much concentrated, and SMEs markets have no development potential. CCPIT should improve the trade service system in China. The institution should also improve the competitiveness of export enterprises in the international market (Robinson, 2006).
The service support system adopted by CCPIT needs to be improved, especially services in market information, financing assistance, disputes solutions, research, etc. CCPIT has about 700 offices in China and other countries (Micham, 2005).
The institution should open more offices in order to serve many companies in the world. Today China faces challenges of economic globalization. CCPIT should improve on its role of promotion of economic and trade activities, and non governmental exchanges. It should be actively involved in organizing international economic and trade events in order to increase foreign exchanges and cooperation. It should improve on its new services, for instance in the areas of commercial certificates in order to serve many companies. Legal services should also be extended to deal with all types of cases involving trade. Finally, CCPIT should collaborate with other bodies promoting trade in other countries to enhance improvement of international trade (CCPIT, 2003).
References
Armstrong, G., 2008. Marketing: an introduction. Chicago: Prentice Hall. Web.
The currency exchange rate over the semester of the Japanese Yen to US dollars has not been a stable one at all. From the highest exchange rate of 91.7872 Yen for 1 US dollar on14th June 2009, it dropped to 80.382 yen/dollar on 1st November 2010.
The export and business phases being experienced in most East Asian countries is being caused by the yen to dollar fluctuations in exchange rate (kamakura, 2005). Moreover, the fluctuations are believed to have caused industrial shocks leading to instability in most sectors of the economy.
Balance of trade
International trade entails the exchange of goods and services across the borders of nations or states. In this regard, goods and services are either imported or exported among different countries. The total volume of exports and imports and difference between the two components obtained over a given period of time, it is referred to as the balance of trade.
Japan and United States have been close economic partners for a considerable length of time. Japan trades about 31.5 percent of its total exports to Unite States. On the other hand, 22.3 percent of its total volume of imports originates from United States. On the same note, Japans direct investment overseas mainly targets the US markets. For instance, in 1990, about 50 % of Japans direct investment overseas landed in the US markets. The total export value from Japan to United States in 2009 was $28,913,700,000.00 while the imports from United States totaled $12,547,100,000.00. This resulted in favorable balance of trade of about $16,366,600,000.00.
Trade restrictions imposed by Japan
Japan does not allow the importation of certain products. For instance, it prohibits the importation of harmful products such as narcotics, small weapons like firearms, and pornographic materials (Barnes/Richardson, Global Trade Law, 2010). Other restrictions on trade imposed by Japan include certain health products that may be harmful or unnecessary to its population, pharmaceuticals, food substances as well as some forms of chemical based products. One of the rationales of imposing restrictions on trade is that certain goods may hamper the growth of local industries by destabilizing the market through unfair competition (Barnes/Richardson, Global Trade Law, 2010). There are other goods which may not meet the set hygiene or health requirements. Among the restricted products include animal parts which may be facing extinction like ivory, meat and other agricultural related products, certain items that have been banned from trading by international treaties in addition to cosmetics and medical products that have been supplied for over two months (Barnes/Richardson, Global Trade Law, 2010).
One of the most important concerns while negotiating trade deal with other countries is the impact of the import-export trade on the economy of Japan. For example, Japan has of late requested some pertinent information concerning BSE. The two countries are currently negotiating on the possibility of resuming trade of beef products in spite of the fact that Japan lifted the ban on beef products from US sometimes back. Japan had restricted the importation of beef whose age had surpassed twenty months. However, the restriction is still in place until the ongoing talks between the two countries reach a common ground. The safety standards on the imported food products are an important consideration before any food product is permitted for importation.
Role of unions in Japanese workforce
The 1990s witnessed the unionization of about 33 % of workers in Japan. The umbrella union for the Japanese workforce, the Japanese Trade Union Confederation is the most outstanding labor union in Japan today. It has a membership base of about 7 million workers, one million less compared to the 90s (Gordon, 2000).
The main function of trade unions is to air the grivaces of workers to the respective employers. Since 1945, trade unions in Japan have operated on a free environment after they were legalised. The unions played an integral role of fighting for better wages salaries on behalf of workers. In addition, the unions have been onm the forefront to stress the need of job security for the Japanese workforce. This went along with the demand for fringe benefits especially on health. Soon after the unions were legalised, a series of workersstrikes followed.
Due to the role played by trade unions of negotiating for better working deals with employers on behalf of workers, strikes have reduced considerably (Gordon, 2000). Companies have developed a custom of negotiating wage levels and working conditions with labour unions before workersgrieances reach strike levels. The umbrella workers union (Rengo) often holds yearly talks with employing companies to settle at higher wages for its members
Current events
Most important news in Japan today
The military drill by United States and South Korea is a very important news to Japan after the Prime Minister Naoto Kan put his cabinet members on alert. The military drill has been [perceived by Japan as a risky affair owing to the fact that the South Korean island was bombarded by Pyongyang on Tuesday, 23rd November 2010 (Japan Times, 2010). All the members of the cabinet are expected to stay put in their offices until Wednesday, 1st December 2010 just in case there is a crisis to handle. The venue of the drill will be in Yellow Sea.
However, the opposition party, Liberal Democratic Movement, has questioned the governments ability to manage crisis especially in regard to western sea border which is under dispute In addition to the military drill, the Prime Minister has also reiterated that the Japan- China ties are crucial especially in the region covered by Asia-Pacific and the world at large (Japan Times, 2010). The international relations between Japan and China has been worsening, a situation that has been described as delicate and needs urgent redress.
Level of terrorism Japan faces
Japan is under serious threat of terrorism occasioned by extremists from the Islamic world. Besides, Japan has ever been labeled as a terrorist target, a statement that is perceived to have originated from Osama Bin Laden.
Japan was among the list of countries mentioned in 2003 as the next target of terrorist attack. Besides, an Arabic website later announced a rewarding scheme for any person who would be willing to the US soldiers and also persons from countries who are allies to the United States. Japan was also top in this list.
Another possibility of terrorist attack in Japan emanates from the fact that there are a myriad of facilities installed and being used by the United States which are equal targets of terrorist activities. This implies that Japan is living under the fear of being attacked at any time.
In addition, Japan is geographically close to Southeast Asia countries like Indonesia. The latter has been a victim of bomb attacks from terrorists and the nearness of Japan to this region means that it may also suffer the consequences of terrorism activities.
Current political climate & implications for Toyota
Toyota was bitterly criticized by its market rivals and local politicians in Japan when it announced that it was targeting a10 % dominance in the global auto industry (Fackler, 2010). This aggressive nature of the company was viewed as a potential source of political friction with US. Toyota was compelled to tone down its ambitions even though it achieved it later. The company is currently targeting a 15 % dominance of the world auto market.
Current economic climate & implications for Toyota
The global economic downturn has not favored Toyota especially in its bid to capture the 10 percent of the global auto market. The image of Toyota has further been battered by the outdated technologies in its industrial production (Fackler, 2010). The stagnation of Japans economy that began way back in the 1990s has worsened the economic forecasts and anticipation of Toyota. Although the recovery process is underway, it may take indefinitely long for full recovery.
The manufacturing sector is the major economic contributor in Japan. This includes the automobile industry with Toyota leading the tow. The weak Yen at the beginning of the new millennium did not favor the overall economic growth of Japan in spite of the boom in export volume.
Single most important reason for doing business in Japan
Japan is a well established economy and quite stable both politically and socially. Nonetheless, the single most important reason for doing business in Japan lies in the fact that it is a major trading partner with some of the leading world economies like United States, Canada and China. is has a favorable balance of trade with United States, being the fourth largest importer of goods and services from United States. In addition, the United States enjoys Japans direct foreign investment owing to the fact the latter is the second largest in terms of overseas investment in US (Gordon, 2000). The Japans GDP volume of 5 trillion dollars recorded in 2009 makes it to be the second well established economy in the world. This makes it possible to do business in Japan much easier than in other poorly performing economies.
References
Barnes/Richardson, Global Trade Law. (2010). Japan Considers Easing of Import Restrictions on U.S. Beef. Web.
Gordon, A. (2000). The Wages of Affluence: Labor and Management in Postwar Japan. New York: Harvard University Press.
Japan Times (2010). Cabinet put on alert over North Korea: LDP meanwhile keeps pressing administration. Web.
Kamakura, M. (2005). Is the Yen/Dollar Exchange Rate Really Responsible for East Asias Export and Business Cycles? The World Economy, 28(10): 15091537.
Export is the act of offering goods and services to another country for sale in exchange for money (U. S. Customs and Border Protection). Export occurs when an individual, a business company, or the government sells its products or services across the border of the state.
The U. S. Department of Commerce is responsible for controlling the export and re-export of products that are of U.S origin (U. S. Customs and Border Protection). The U. S. Department of Commerce regulates controls through the Export Administration Regulation. Controlling products exported from the U. S. is the responsibility of the Department of Commerce.
Analysis
There are different definitions of export according to the U. S. government agencies with the responsibility of controlling the export of products. The U. S. State Department defines export as the act of taking a defense article beyond the jurisdiction of the United States (Bureau of Industry and Security). The U.S. State Department also defines export as disclosing any technical data to a foreign person who resides in the country or abroad.
The U.S Department of State restricts and has control jurisdiction over the exportation of defense items (U. S. Customs and Border Protection). The Department of State ensures retractions of transfer of defense items.
The Department of State considers articles and related technical data designated as defense data as items for export control purposes (U. S. Customs and Border Protection). Related technical do not have a civil relevance because their design is purposely for military functions.
There is a list of defense items. The list is Munitions found in the International Traffic in Arms Regulation (U. S. Customs and Border Protection). The Department of Defense controls export with the assistance of the International Traffic in Arms Regulation.
The U. S. Commerce Department defines Export as the release of technology or software that has information about the department (U. S. Customs and Border Protection). The department discourages shipment of technology that concerns it through any means of technology. The department also prohibits the release of relevant information to foreigners.
The U.S. Department of Commerce has export control jurisdiction over the export of dual-use items and items that have civilian or commercial uses (Bureau of Industry and Security). The Department of Commerce does not prohibit the export of dual-use items.
Dual-use items are items that have the potential for both military and civilian use (Bureau of Industry and Security). These items are not eligible for test for defense items. In addition, items not controlled by the State Department for export are also dual-use items.
The Commodity Control List is a partial list of dual-use items (U. S. Customs and Border Protection). The list of the dual items is in a section of the Export Administration Regulation.
An exporter who is unsure whether there is control on particular products for export purposes is required to submit a written Commodity Jurisdiction Request. The exporter directs the written request to the Department of State (Bureau of Industry and Security). The Department of State further advises the exporter what specifically is required before exportation.
An exporter receives much information from the Department of State through the written Commodity Jurisdiction Request (Bureau of Industry and Security). The exporter is also able to know goods and services restricted for export. Through this practice, exporters are not involved in export issues that may face them and further makes the institutions to file a lawsuit against them.
The U. S. Department of Commerce issues licenses to control export on its jurisdiction. The Department of Commerce also assigns a specific Export Commodity Control Number to all products (Bureau of Industry and Security). The U. S. Department of Commerce is responsible to oversee and to put controls on certain export commodities to specific countries.
There are export controls by the Department of Commerce to ensure the security of products to the end-user and specific destinations (Bureau of Industry and Security). The Department of Commerce ensures that there are restrictions on exports for the state to be able to know export commodities.
The Department of Commerce prohibits exports of end-user products (Bureau of Industry and Security). End-use export controls prescribed by the Commerce Department under the Export Administration Regulation.
Nuclear and missile end users are examples of end-user controls according to the Department of Commerce (Bureau of Industry and Security). It is a requirement by the Commerce Department that all exporters should obtain an export license before they export any commodity. Through this practice, the department can control exports.
Ultimate Destination export controls are export controls decided by the Department of Commerce and the Department of Treasury (Weiss 6). These agencies are required to provide a list of restricted destinations for exports. In addition, it is also a requirement that all exporters must understand if the counties they are exporting to are restricted destinations by the departments.
The Department of Commerce has restricted and controlled exports to most countries. Examples of these countries that experience export controls are Cuba, Iran, Iraq, Libya, North Korea, and Sudan (Weiss 102). The departments impose export controls on a country-by-country basis.
Conclusion
Export is the transfer of products or services to foreigners residing in the United States or other countries for the exchange of money or self-gain (Weiss 100). The various departments control all exports.
Products and services that are subject to the export jurisdiction of the Export Administration Regulations include all items in the United States, all U. S. origin items, and U. S. origin parts (Weiss 100). The Department of State and the Department of Treasury control all exports.
Works Cited
Bureau of Industry and Security. n.d. Web.
U. S. Customs and Border Protection. n.d. Web.
Weiss, Kenneth. Building an Import / Export Business. New Jersey: John Wiley & Sons, 2011. Print.
Why legal disputes cannot be resolved by simply referring to relevant laws
Application of rules is one of the ways through which legal disputes can be solved. However, laws may be vague thus limiting their effectiveness in resolving conflicts. In resolving legal disputes, the legal rules applied may be general and indeterminate. As a result, all the disputes being resolved using legal resolutions are subjected to the same set of rules.
According to Loh (1984, p. 26), laws formulated to solve a particular dispute may not be applicable to other similar cases. In the process of settling disputes, laws are meant to provide an alternative way through which disputes can be resolved. Laws provide a reliable prediction of the resultant legal consequences in relation to a particular human conduct.
This means that legal disputes cannot be resolved by simply referring to relevant laws. Considering the fact that legal dispute resolution mechanisms may be vague, application of alternative disputes programs is necessary. Some of the major reasons causing incorporation of alternative dispute programs include the rising litigation costs and the associated emotional and psychological costs. Some of these programs relate to arbitration and mediation.
Legal conflict associated with electronic commerce that has not yet been resolved
Disagreements can arise in electronic commerce with regard to the terms of the contract (Leps, 2010, para. 1). One of the legal conflicts in relation to electronic commerce that has not been resolved arises from existence of uncertainty with regard to cross border disputes. In conducting electronic commerce, some of the parties involved may be from different countries and hence the difference in jurisdiction (International Chamber of Commerce, 2010, para. 8).
This means that the principles adopted in relation to country-of-destination and country-of-origin may be different. Some economies may adopt the country-of-destination principle. This means that the laws applicable in case of a dispute involving cross-border parties are those of the customers country. Application of such a principle limits consumer choice (International Chamber of Commerce, 2010, para. 9).
Due to existence of the ambiguity, most firms are reluctant to venture into electronic commerce with cross-border business counterparts. Most of the firms business partners include firms within the same territory. This arises from the fact that the firms may incur substantial costs as a result of unenforceable contracts in addition to risks of sanctions. The legal conflicts with regard to the country-of-destination are further worsened if the customers use interposing technologies in purchasing digital products.
In addition, if the payment is made using digital cash, which is not identified by the purchaser, there is a high probability that the firm may not know the law to apply. In such a situation there is a high probability that the firms will firms will forego cross-border electronic commerce. The consumers are negatively affected since they cannot be able to access internet benefits optimally (International Chamber of Commerce, 2010, para. 9).
As a result of the legal conflict in e-commerce, the supply chain of goods and services in the entire global marketplace is limited. The complexity of compliance means that firms are precluded from the digital economy.
Conclusion
In summation, application of alternative dispute resolution programs in resolving legal disputes is necessary. This arises from the fact that the laws may not be applicable to certain circumstances. Laws provide a basis for alternative dispute resolution mechanism. Due to existence of cross-border differences with regard to e-commerce firms have not been able to implement electronic commerce effectively.
Reference List
International Chamber of Commerce. 2010. Jurisdiction and applicable law in electronic commerce. Web.
Leps, O., 2010. Jurisdiction in e-commerce: a non-existing conflict of law and consequences for consumer protection and SMEIs. Web.
Loh, W., 1984. Social research in the judicial process: cases, readings and texts. New York: Russell Sage Foundation.
