Strategic Management Essay Example | Topics and Well Written Essays - 1000 words - 6

Strategic Management - Essay Example Primark has been a retailing giant in the fashion industry that has over a few years been successful. Some of its strategies have over the years included effective marketing to specific targets across Europe. Primark’s target market is mostly the fashion sensitive age group which is basically people with the age below thirty five years of age. They also deal mostly with brand names that are minor, which translates to cheap quality fashionable trends. They have maintained their market by providing the same product of the same quality at a lower price than their competitor provide. This accompanied with the effective management of response and delivery mechanisms has ensured that Primark has maintained its competitive and reliability position in the European market. Their computerised warehouse controls and an effective efficient distribution networks has made sure that Primark stays top notch in customer satisfaction. With the current technological capability, social life has b een incorporated with the business aspect of running things. Companies have been compelled to adapt social media and the use of the internet to provide their services. Marketing and advertising have been forced to tap into the high usage of internet to make a large profit. With just under three billion people using the internet and over two billion people using smart phones, companies have resolved to a paradigm shifts. Some retail and distributing stores have moved from slightly depending on the internet to full dependence of the internet for all their services. Companies like Amazon and eBay who are also giant retailers have completely depended on online shoppers successfully for their sales. Primark has been reluctant to adapt to this marketing and sales strategies but has just kept the traditional walk in stores. This habit is however facing a challenge as more people change their shopping habit coupled with the various technological products that arise in the market. With Prima rk’s main target being people who are below thirty-five years of age, they are bound to adjust and shift into providing online shopping solutions for their clients. This is because it is estimated that the highest number of internet users are people who are below the age of thirty five years. This brings Primark head to head in confrontation and demand from its customers. With the global penetration of internet use, coupled with the increase in the use of mobile devices especially smart phones also creates the necessity to Primark of adoption an online shop. The demand in the usage of these solutions provides a huge market in the retail sector. Another factor that might make it inevitable for Primark to adopt the online retail shop is the use of social media marketing and internet marketing. Over one, half of Europe’s population has one or two active social media accounts. The usage of mobile phones and tablets has been very addictive and convenient at the same time. A large number of people rarely get the time to walk around, let alone spend time with their families. Online jobs and jobs that demand regular travelling or jobs which have squeezed time schedules create least chances for shopping to the affected people. This drives away all the interested clients that might have purchased the said products. Providing such clients with an alternative shopping model enables them to purchase the products online at any time. This not only stops the retailer from losing

International Monetary Economics Essay Example | Topics and Well Written Essays - 1500 words

International Monetary Economics - Essay Example One of the main fields of research which has attracted the attention of the researchers worldwide is the exchange rate and the trade balance relationship (Liew, Lim & Hussain, 2003, p.1). The elasticity model which is one of the most important models of balance of trade throws light on the prevalence of theoretical relationship between trade balance and rates of exchange of a nation (Stucka, 2004, p.22). There are a number of ways in which exchange rates can influence the trade balance of nations which provides valuable inputs to the nation’s policy makers to undertake exchange rate policies like devaluation policies etc in order to being about balance in the nation’s foreign trade. Devaluation increases the prices of foreign currencies making imports more expensive in the home nation till the foreign suppliers reduce their prices in order to compensate (International monetary economics-a, n.d., p.4). The reason why countries devaluates is to attain a competitive positi on in comparison to its competitors through the reduction of prices of goods produced domestically below the level which is compatible with the purchasing power parity (International monetary economics-b, n.d., p.5). ... This would be followed by a critical analysis through the presentation of a critical literature on the above aspects through which it tries to present the impacts of exchange rates adjustments on the balance of payments of nations. The monetary approach This approach is based on the fact that the disequilibrium in the balance of payments is based on the monetary disequilibrium which is the difference between the amount of money that individuals want to hold and the amount of money that the monetary authorities supply. In case the people want to hold more money, which exceeds the amount supplied by the Central Bank, then this would be met by a greater money inflow from abroad (Malik, 2006, p.2). The elasticity approach As per the views of Marshall, trade deficits lead to devaluation. Exports become more attractive in other nations. On the other hand the imports are made costlier in the domestic nation and this leads to the squeezing of the import bills. Trade deficits are thus elimina ted in the process (Sharan, 2011, p.121). The traditional approach The traditional approach deals more with the current account or the trade balance of nations. However, the approach does not consider the other components of the international accounts other than the current account. The balance of payments goes up along with the current account. However, since 1960s and the 1970s the traditional views have changed after studies emphasizing on factors determining the capital account flows (Arize, 2000, p.35). Critical Analysis Previous research reveals the importance of exchange rate fluctuations as a tool for international monetary regime. The comparison for seven of the largest non