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How Regular Exercise Can Influence the Immune System
How Regular Exercise Can Influence the Immune System
Student’s name
Institutional affiliation
How Regular Exercise Can Influence the Immune System
A strong immune system means the body has better chances of fighting the latest viruses and germs, which protects the person from seasonal bugs such as the flu. A strong immune system makes a person less likely to catch quick-spreading viruses. Exercise reduces the chances of heart problems and also keeps bones strong and healthy.
Regular exercise influences the immune system in numerous ways. Exercise helps in lowering the white blood cells. Lowering them is essential, as having a high white blood cell count has been linked with inflammation. It also points to a health condition such as coronary disease. Additionally, research posits exercising regularly helps to caution the immune system from aging. Moreover, the aging effect is often greatest among the elderly, which explains why exercise is more beneficial for people in their later years.
Regular exercise has also been found to positively affect chronic inflammation. Chronic inflammation is long-lasting inflammation that takes place because of factors such as smoking and poor diet (Peake, Neubauer, Walsh, & Simpson, 2017). Chronic inflammation also puts the client at more risk of having major health conditions such as cancer and diabetes. Research further shows that obesity inhibits immune functions. In part, this is due to obesity’s link with chronic inflammation. Regular exercise helps keep a healthy weight, reducing body inflammation and decreasing associated risks. Regular exercise is also helpful in helping the body fight infections. The high temperatures during and after a workout is helpful as it keeps bacteria from growing. Exercise also slows down the release of stress hormones. Stress tends to increase the chances of illness. Low-stress hormones protect individuals against illness.
References
Peake, J. M., Neubauer, O., Walsh, N. P., & Simpson, R. J. (2017). Recovery of the immune system after exercise. Journal of Applied Physiology, 122(5), 1077-1087.
Facebook Conformity and Consensus Gender as a Factor in Conformity
Facebook Conformity and Consensus: Gender as a Factor in Conformity
Name
Florida International University
Psy 3215
Methods Study Two
Participants
Nine hundred and fifty-seven participants (n=957) were selected for them to participate in this particular study of Facebook consensus. Out of the 957 participants, 39.3% (n= 376) were male and 60.7% (n= 581) were female. Ages that were sampled from this experiment were between the age of 12 to 81 with an average of 26.27 years (SD = 9.83). Our participants were also from different races with 20.9% Caucasian (n = 200), 20% African Americans (n = 191), 54.1% Hispanic American (n = 518), 3.2% Asian American (n = 31), 0.9% Native American (n= 9) and 0.8% others (n= 8). See Appendix A
Methods and procedures
The respondents to this research were enlightened on the contents of the study as they had a right to know before participation. They were allowed to know what the research entailed and what was expected from them in line with the standard guidelines that are mentioned in the informed consent that the participants were to sign. Through the research and particulars for ethical participation of respondents in this study, the respondents were informed of the benefits as well as the risks that were involved as a result of their association in the study. The students in this study were provided with three different documents upon giving their consent for participation verbally. These consents were acknowledged after having exposed the students to the research materials and extensive explanations on what was expected of the students as respondents of this particular study. The three documents that were given to these students had five different parts with the first part of the documents being a study scenario that was similar in all three documents but with different conditions. The study part of these documents provided for a short story on Facebook that focused on a student taking her exam by the name Abigail. The post on Facebook as a short story on Abigail was no extraordinary although it attracted several mixed reactions. The story elucidates on how Abigail was going to take a test that she had not yet been prepared and had her panicking with fear of failure in this particular test. She was however handed the answers key in the process of handing the exam sheets by the professor, hence getting all the answers for the exam which led to her passing the exam. Since one of the students in the exam had a perfect score the professor had considered curving the graph pass mark so as to allow more students to pass. There was also another individual Adam, with the same scenario as Abigail. The study scenario in each of the documents had similar scenarios at the beginning although with alternate conditions that included the supporting and mixed reactions of the situation. And it was these alternate conditions that developed different outcomes as their results.
The support conditions developed arguments and opinions of people who viewed the act of Abigail as to have nothing wrong. The responses to Abigail’s post were only different in that they reflected the opinion of others based on how she received the answer key that in turn facilitated her passing of the paper that she was not prepared for. The support conditions of the documents showed individuals whose views were that Abigail/Adam had done nothing wrong hence she deserved to keep her grades as the situation was not an act of cheating. The mixed condition in the documents presented the views of respondents who viewed the situation at the exam room to as being lucky for Abigail/Adam and thus she should keep the grades instead of complicating issues by going to the professor to explain how things had unfolded. These respondents were of the view that going to the professor would get her in trouble thus she should just the grades. A section of respondents in the mixed reaction conditions was of the similar view that Abigail might have been lucky although they advocated for her not taking the grades as it would have been unfair to other classmates who had worked extra hard to ensure that they were prepared for the exam. Thus, this group of commenters explained how Abigail or Adam should not take the grades.
Without the option of reviewing these scenarios, the research participants were directed to the next part of the research that was developed as a questionnaire. This part of the research was made up of questions that were based on the scenarios from the study part. This part of the research had a series of questions that comprised of open-ended, partial and close-ended questions that were to be answered appropriately by the participants of the study. On a Likert scale in this second part, the students had been presented with seven possibilities that they were required to make assumptions on intensity and strength of these choices on a continuum of 1 representing strongly disagree to 6 representing strongly agree.
The third part of the documents required the evaluation of the participants anchoring their response to strongly disagree to strongly agree in the possibilities presents ion how one would rate their advice to be Abigail and how the participants would behave and respond if they were in Abigail’s situation whereby they received the answer key instead. With the rating system anchored to 1= strongly disagree, 6 = strongly agree, the participants were provided with 11 options listed that they were required to rate.
The fourth part of this study in the questionnaire field was determined in the section that required the participants to provide for their demographic information for purposes of analyzing with consent and for the purpose of securing a person’s information and privacy the participants were given the options of prefer not to answer questions that made them feel uncomfortable as well as the option of open self-describing oneself especially in providing gender information. The demographic survey develops more of personal questions that include questions on age, ethnicity, gender, if they were students at Florida International University, if English was their first language and their relationship status. The final part of the documents part five was developed to give options for general remarks from the participants. Marking X on the feedback part was viewed as appropriate with remarks being between support of Abigail’s behavior, opposing her behavior and even if the feedback had mixed opinions.
Although the research had a number of dependent variables, this research focused on investigating a single variable that was to examine if the reaction of the participants towards Abigail’s story would be influenced by the comment they read and if gender played a role on the conformity. The research anticipated that the participants who were exposed to supporting comments of Abigail’s behavior were likely to support her as well so as to be given the grade, whereas those exposed to the negative comments on her actions were likely to oppose the actions of Abigail viewing them as wrong thus the need for her not to accept the grades. Gender was also likely to influence the people’s comments on the post
Results
Using the survey conditions, support vs. mixed, which were the independent variables, as well as the assessments that were given to participants on both Adam’s and Abigail’s post as dependent variable. The participants who read the support comments on Abigail’s post, supported Abigail and had positive outlook towards her behavior. Most of those who supported her also pointed out the fact that they would just make the same decision as Abigail. Those who read the mixed reactions on Abigail’s post were also not bent on any particular side their answers were balanced. Adam however, received much critic as compared to Abigail. Most believed that Adam’s actions were not ethical including those that had read positive comments. Most people who took Ada’s survey believed that he should have returned the answer sheet to the professor. 480 participants which was 50.2% were in support while 477, 49.8% of the population were Mixed. Using the Chi square test of two variables presented, X2(2) = 25.729, p<.05. indicated a close association. The results indicated that those with supportive comments also would receive supportive comments from their friends. The use of Phi and Cramer’s V also proved an association that existed whereby r= 0.369, p<0.05(See Appendix B).
One-Way ANOVA portrayed differences in dependent variables on the conditions presented. People were also swayed by gender as male individual conformity was different as compared to the female, F (30, 926) = 1.17, p = .246. Initial prediction from the research was that participants were likely to be affected by the comments on the post they read first as well as the gender of the Facebook user. The Post Hoc test supported hypothesis that participants were more than likely to support Abigail in support condition (M = 5.41, SD = 0.767) while for Adam (M= 5.474, SD= 0.573). For the mixed condition for Abigail (M = 4.03, SD = 1.447) while for Adam it was (M = 6.49, SD =0.733) (See Appendix C).
Discussion
We predicted in this study that for Abigail’s post, those who got the Support survey were likely to also support Abigail’s action. Equally, we predicted that Adam was likely to receive more opposition as compared to Abigail. AS hypothesized, Abigail got support from those who had read the support post first. However, for Adam, most though that he ought to have returned the answer sheet. This was in support of hypothesis that when gender is a variable in conformity, people are likely to be more biased towards the male than the female.
Those who found that Abigail’s behavior was okay were also likely to take the same actions as her. Generally, this study proved that gender was a key factor on Facebook conformity. People were more empathetic on the female than on the male. While Adam had a higher number of reactions against his actions, Abigail’s post had higher number of people who supported her action.
Appendix
Descriptive Statistics
N Minimum Maximum Mean Std. Deviation
Participant gender 957 1 2 1.61 .489
Participant age 957 12.00 81.00 26.2727 9.83067
Participant race/ethnicity? 957 1 6 2.46 .943
Valid N (listwise) 957 Participant gender
Frequency Percent Valid Percent Cumulative Percent
Valid Male 376 39.3 39.3 39.3
Female 581 60.7 60.7 100.0
Total 957 100.0 100.0 Participant race/ethnicity?
Frequency Percent Valid Percent Cumulative Percent
Valid Caucasian 200 20.9 20.9 20.9
African American 191 20.0 20.0 40.9
Hispanic American 518 54.1 54.1 95.0
Asian American 31 3.2 3.2 98.2
Native American 9 .9 .9 99.2
Other 8 .8 .8 100.0
Total 957 100.0 100.0 Participant gender
Frequency Percent Valid Percent Cumulative Percent
Valid Male 376 39.3 39.3 39.3
Female 581 60.7 60.7 100.0
Total 957 100.0 100.0 Descriptive Statistics
Descriptive Statistics
N Minimum Maximum Mean Std. Deviation
I Condition 957 1.00 2.00 1.4984 .50026
Valid N (listwise) 957 I Condition
Frequency Percent Valid Percent Cumulative Percent
Valid Support 480 50.2 50.2 50.2
Mixed 477 49.8 49.8 100.0
Total 957 100.0 100.0 What is your relationship status?
Frequency Percent Valid Percent Cumulative Percent
Valid Single / No Relationship 450 47.0 47.0 47.0
In a relationship 507 53.0 53.0 100.0
Total 957 100.0 100.0 Part II Their behavior was wrong
Frequency Percent Valid Percent Cumulative Percent
Valid 1 103 10.8 10.8 10.8
2 94 9.8 9.8 20.6
3 188 19.6 19.6 40.2
4 168 17.6 17.6 57.8
5 125 13.1 13.1 70.8
6 279 29.2 29.2 100.0
Total 957 100.0 100.0 Descriptive Statistics
N Minimum Maximum Mean Std. Deviation
Part III: They seems warm 957 1 6 3.67 1.382
Valid N (listwise) 957 Descriptive Statistics
N Minimum Maximum Mean Std. Deviation
Part II Their behavior was wrong 957 1 6 4.00 1.690
Part II Their behavior was reasonable 957 1 6 3.11 1.520
Part II Their behavior was immoral 957 1 6 3.93 1.631
Part II Their behavior was unacceptable 957 1 6 3.93 1.624
Valid N (listwise) 957 What is your relationship status?
Frequency Percent Valid Percent Cumulative Percent
Valid Single / No Relationship 450 47.0 47.0 47.0
In a relationship 507 53.0 53.0 100.0
Total 957 100.0 100.0 Part II Their behavior was wrong
Frequency Percent Valid Percent Cumulative Percent
Valid 1 103 10.8 10.8 10.8
2 94 9.8 9.8 20.6
3 188 19.6 19.6 40.2
4 168 17.6 17.6 57.8
5 125 13.1 13.1 70.8
6 279 29.2 29.2 100.0
Total 957 100.0 100.0 Descriptive Statistics
N Minimum Maximum Mean Std. Deviation
Part III: They seems warm 957 1 6 3.67 1.382
Valid N (listwise) 957 Descriptive Statistics
N Minimum Maximum Mean Std. Deviation
Part II Their behavior was wrong 957 1 6 4.00 1.690
Part II Their behavior was reasonable 957 1 6 3.11 1.520
Part II Their behavior was immoral 957 1 6 3.93 1.631
Part II Their behavior was unacceptable 957 1 6 3.93 1.624
Valid N (listwise) 957 Self esteem, higher score = higher self esteem
Frequency Percent Valid Percent Cumulative Percent
Valid 10.00 88 9.2 9.2 9.2
11.00 36 3.8 3.8 13.0
12.00 46 4.8 4.8 17.8
13.00 55 5.7 5.7 23.5
14.00 46 4.8 4.8 28.3
15.00 43 4.5 4.5 32.8
16.00 42 4.4 4.4 37.2
17.00 43 4.5 4.5 41.7
18.00 42 4.4 4.4 46.1
19.00 49 5.1 5.1 51.2
20.00 70 7.3 7.3 58.5
21.00 49 5.1 5.1 63.6
22.00 45 4.7 4.7 68.3
23.00 38 4.0 4.0 72.3
24.00 64 6.7 6.7 79.0
25.00 70 7.3 7.3 86.3
26.00 38 4.0 4.0 90.3
27.00 18 1.9 1.9 92.2
28.00 16 1.7 1.7 93.8
29.00 9 .9 .9 94.8
30.00 14 1.5 1.5 96.2
31.00 7 .7 .7 97.0
32.00 3 .3 .3 97.3
33.00 4 .4 .4 97.7
34.00 2 .2 .2 97.9
35.00 5 .5 .5 98.4
36.00 2 .2 .2 98.6
37.00 4 .4 .4 99.1
38.00 2 .2 .2 99.3
39.00 2 .2 .2 99.5
40.00 5 .5 .5 100.0
Total 957 100.0 100.0 Self esteem, higher score = higher self esteem
Frequency Percent Valid Percent Cumulative Percent
Valid 10.00 88 9.2 9.2 9.2
11.00 36 3.8 3.8 13.0
12.00 46 4.8 4.8 17.8
13.00 55 5.7 5.7 23.5
14.00 46 4.8 4.8 28.3
15.00 43 4.5 4.5 32.8
16.00 42 4.4 4.4 37.2
17.00 43 4.5 4.5 41.7
18.00 42 4.4 4.4 46.1
19.00 49 5.1 5.1 51.2
20.00 70 7.3 7.3 58.5
21.00 49 5.1 5.1 63.6
22.00 45 4.7 4.7 68.3
23.00 38 4.0 4.0 72.3
24.00 64 6.7 6.7 79.0
25.00 70 7.3 7.3 86.3
26.00 38 4.0 4.0 90.3
27.00 18 1.9 1.9 92.2
28.00 16 1.7 1.7 93.8
29.00 9 .9 .9 94.8
30.00 14 1.5 1.5 96.2
31.00 7 .7 .7 97.0
32.00 3 .3 .3 97.3
33.00 4 .4 .4 97.7
34.00 2 .2 .2 97.9
35.00 5 .5 .5 98.4
36.00 2 .2 .2 98.6
37.00 4 .4 .4 99.1
38.00 2 .2 .2 99.3
39.00 2 .2 .2 99.5
40.00 5 .5 .5 100.0
Total 957 100.0 100.0 Descriptive Statistics
N Minimum Maximum Mean Std. Deviation
Part III- I would advise them to keep silent 957 1 6 3.14 1.786
Part III: I would give them the same advice that their friends gave them 957 1 6 3.09 1.582
Part III: If I received the answers, I would confess 957 1 6 3.82 1.848
Part III:They seems good-natured 957 1 6 3.64 1.391
Part III: They seems competitive 957 1 6 3.09 1.538
Valid N (listwise) 957 Part III- I would advise them to keep silent
Frequency Percent Valid Percent Cumulative Percent
Valid 1 263 27.5 27.5 27.5
2 129 13.5 13.5 41.0
3 178 18.6 18.6 59.6
4 137 14.3 14.3 73.9
5 100 10.4 10.4 84.3
6 150 15.7 15.7 100.0
Total 957 100.0 100.0 Part III: I would give them the same advice that their friends gave them
Frequency Percent Valid Percent Cumulative Percent
Valid 1 215 22.5 22.5 22.5
2 132 13.8 13.8 36.3
3 245 25.6 25.6 61.9
4 182 19.0 19.0 80.9
5 84 8.8 8.8 89.7
6 99 10.3 10.3 100.0
Total 957 100.0 100.0 Appendix B
ANOVA
Sum of Squares do Mean Square F Sig.
IVProfilegenderBetween Groups 6.406 30 .214 .849 .700
Within Groups 232.823 926 .251 Total 239.229 956 Manipulation check for profile gender Between Groups 12.629 30 .421 1.167 .246
Within Groups 333.899 926 .361 Total 346.529 956 IVConditionBetween Groups 7.073 30 .236 .940 .560
Within Groups 232.175 926 .251 Total 239.248 956 Participant age for use as IV Between Groups 9.323 30 .311 1.259 .161
Within Groups 228.534 926 .247 Total 237.858 956 Participant gender Between Groups 7.577 30 .253 1.060 .380
Within Groups 220.695 926 .238 Total 228.272 956 Participant race/ethnicity? Between Groups 24.158 30 .805 .903 .617
Within Groups 825.462 926 .891 Total 849.620 956 Is English your first language? Between Groups 5.423 30 .181 .762 .818
Within Groups 219.645 926 .237 Total 225.068 956 What is your relationship status? Between Groups 12.489 30 .416 1.706 .011
Within Groups 225.912 926 .244 Total 238.401 956 Part II Their behavior was wrong Between Groups 141.084 30 4.703 1.681 .013
Within Groups 2590.912 926 2.798 Total 2731.996 956 Appendix C
Descriptive Statistics
N Minimum Maximum Mean Std. Deviation
Participant age for use as IV 957 1.00 2.00 1.4619 .49880
Participant age 957 12.00 81.00 26.2727 9.83067
Participant gender 957 1 2 1.61 .489
Participant race/ethnicity? 957 1 6 2.46 .943
Is English your first language? 957 1 2 1.38 .485
What is your relationship status? 957 1 2 1.53 .499
Valid N (listwise) 957 Descriptive Statistics
N Minimum Maximum Mean Std. Deviation
Part II Their behavior was wrong 957 1 6 4.00 1.690
Part II Their behavior was reasonable 957 1 6 3.11 1.520
Part II Their behavior was immoral 957 1 6 3.93 1.631
Part II Their behavior was unacceptable 957 1 6 3.93 1.624
Valid N (listwise) 957 ANOVA
Sum of Squares dfMean Square F Sig.
Part II Their behavior was wrong Between Groups 141.084 30 4.703 1.681 .013
Within Groups 2590.912 926 2.798 Total 2731.996 956 Part II Their behavior was reasonable Between Groups 100.849 30 3.362 1.477 .048
Within Groups 2108.188 926 2.277 Total 2209.037 956 Part II Their behavior was immoral Between Groups 114.195 30 3.806 1.452 .056
Within Groups 2428.115 926 2.622 Total 2542.309 956 Part II Their behavior was unacceptable Between Groups 125.252 30 4.175 1.612 .020
Within Groups 2397.628 926 2.589 Total 2522.880 956
Doing Business in Europe, Asia, and the Americas
Doing Business in Europe, Asia, and the Americas
(Name)
(University)
(Instructor)
(Course)
(Date)
Question 1
With reference to the academic literature and using your analysis of relevant environmental factors, speculate how and why Kraft identified Cadbury as a potential ‘partner’. In which areas are the expected benefits and synergies for both companies involved?
In business, the main aim is to maximize profits at lowest cost possible. When an organization sees potential in another organization, it tries with all means possible to work together and expand their incomes. Cadbury was a well established company whose shares were trading high on the financial market. On realizing this, Kraft decided to acquire it so that they could share the big profits together… Every business has to react towards the outside happenings, also known as external factors since they affect the main internal functions of an organization, its objectives and strategies (Armstrong & Kotler, 2008). There are many relevant environmental factors that led Kraft to identify Cadbury as a potential partner Some of the environmental factors that are analyzed the social factors, legal factors, economic factors, political factors, technological factors, and ethical factors.
Kraft management identified the good relationship Cadbury had with customers within the marketing region. In addition, Cadbury employees offered good collaboration with Kraft staff encouraging them to form a combined business. Moreover, the legal factors encouraged acquisition since Kraft followed legal procedures in acquiring Cadbury therefore; Cadbury staffs build full trust in them. To add to this, Cadbury staff good corporate governance in addition to the good financial trend. Corporate governance and financial performance are two inseparable factors. This is due to the fact that, well-established corporate governance in a firm enhances its value, and the related operation performance. This is achieved via effective management, well established resource allocation means, and handling of stakeholders in a better way. After determining Cadbury financial performance, Kraft made a decision to acquire the organization. There exists a difference in the means of determining financial performance. The established accounting structure gives several indicators of performance. These include factors like asset growth and the revenue generated by the organization. However, the use of stock prices as a means of financial evaluation has been in existence for a long period (McWilliams, Siegel and Wright, 2006).
There are different areas where Kraft expects benefits from acquiring Cadbury Food Company. During the acquisition process, there is a property element towards the transaction whereby the acquiring company takes over the existing lease or has the alternative of negotiating a new lease for the target company’s existing premises. This assists in avoiding unnecessary delays at times when the final draft is produced since this might take the negotiators back to step one (Mc Call, 2011). To start with, Kraft expects to benefit from increased shares in the stock market. Cadbury used to trade high therefore, the combination will aid in improving the company’s share index. This enables the combination to lead in developing markets like, Brazil, Russia, India, China, and Mexico. Secondly, the combination will benefit from important additional scale in the consolidating confectionery segments. Cadbury is the top confectionery company in the world owning more than 10% market by 2006 and continues to grow therefore; it is in line with rapidly consolidating market (Euromonitor International, 2011).
Thirdly, the combination creates a good management of business activities and employees. Kraft will benefit from employing the best of employees from both organizations to carryout different chores in the organization. This has an advantage over a single company since the combined effort brings about many big ideas and innovations. In relation to this, Kraft Foods believes that the combined group will create opportunities for Cadbury employees and managers. This ensures that Cadbury employees do not lose their jobs after the match and that their terms of employment will remain unchanged, these include: pension rights and work cover claims. State labor legislation act ensures the employer is liable for employee, which requires that each employee’s safety by taking an accident cover irrespective of the type of work done so long as there is exposure to some risks (Fitzpatrick, Perrine and Dutton 2010).
Question two
With reference to the academic literature, explain the risks associated with the choice of acquisition as an approach to this particular ‘partnership’. Was there a feasible alternative? Justify your view.
In acquiring Cadbury Food, there were some risks associated with this process that made Cadbury to first neglect the offer. Entrepreneurship is a risky business and in avoiding such risks, organizations buy existing businesses since they demonstrate the ability to have a successful operation. Understanding the risks involved in acquiring a business premises is very essential for every organization. This helps organizations to concentrate and utilize the available resources and opportunities to realize profits and become competitive in the market (Armstrong and Kotler, 2008). In determining risks involved, proper assessment of the internal and external environments of the business is essential. The internal environment includes type and nature of product, marketing mix and the distribution constraints. On the other hand, the external environment may include the nature, type and distribution of customers and competition in the market. Other external environmental factors could include technology, cultural, politics, legal and the economic environment. Assessment of the environmental factors helps in the development of appropriate strategic distribution plans. A proper distribution strategy is required to execute the distribution plans to realize the marketing objectives.
To start with, Kraft Food Inc was faced with a risk of losing some of its shares. This came about since during the acquisition process, Kraft surrendered a percentage of its shares to Cadbury with the aim of gaining them after they combine. The only alternative to this option was for Kraft Food Inc buy shares from Cadbury and make them trade even higher so that the Cadbury Food management could gain trust in them. According to (Simchi, Kaminsky and Levi, 2003), different organizations have different goals due to their own nature and the nature of the market. It is through this that an organization can determine the best procedures to follow in order to acquire another company that will be of great benefit in the future. If Kraft Food Inc had not taken a risk of issuing some of its shares to Cadbury, then the combination could have failed.
Kraft Food Inc also took a risk of taking care of Cadbury Food employees after the combination. In doing so, Kraft was responsible for all the employees and management of Cadbury Food in that, all their complaints was directed to Kraft management. The market for food products is diverse in the world. Moreover, the rapidly changing technology and increasing competition require that any automobile business outlines a proper distribution strategy to enable the realization of the business objectives. According to Linton and Donnely (2009), analysis of the market coverage is very crucial especially for the automobile industry. Therefore, a distribution strategy that ensures effective delivery of products to the end user is important. This ensures that the products are available to customers at all times. A good strategy for use in the automobile is the intensive marketing and distribution strategy. In this strategy, products distribution occurs over a wide region where the market covers.
Understanding of the market characteristics ensures that the investor has full details of the business, which makes it easier to compete in the market. Some of the factors determining market characteristics include the critical risks and the critical success factors. The inventors in any business look for a risk free business determined by the competitor response to the new business entry, sales projections, suppliers, distributers, and business location. Europe food industry has less competition and the available businesses are willing to welcome the foreign investors. On the other hand, there is a big sales potential in the country due to introduction of new quality brands. When planning to invest in a certain business, the size of the market matters a lot since it determines the number of customers to serve since they eventually determines the amount of profit achieved. Market size and outlook is dependent on many factors including, the number of customers using the product, the available competition, and the potential sales. Marketing characteristic is also dependent on critical success factors (Birbaum Associates, 2009).
Question 3
By applying appropriate theory, compare and contrast the national and corporate cultures involved. Critically evaluate the actual and potential impact of both on this ‘partnership’, including the role of government where applicable.
Cultural beliefs illustrate theories, facts, norms, values, or principles that an individual needs to uphold while in the society. The society has a perception on various issues that surround an individual’s life. As such, the individual needs to adopt the perceptions and uphold them while in a given social setting. This calls for the individual to form bias based on these cultural beliefs and perceptions. Therefore, the cultural beliefs and perceptions have a significant influence in bias formation. Individuals have an established belief and attitudes towards given information. Kraft Food Inc was so much concerned about the people’s culture right from the employees at Cadbury and the surrounding community. As such, Kraft management used this to develop a bias on any message that was approached in daily endeavors (Dutta, 2008).
This depicts that an organization has an established criterion of behavior evaluation in any given social setting. Therefore, an individual develops a behavioral attitude based on personal beliefs and perceptions. This results in formation of an attitude towards the behavior through extensive evaluation of the benefits and limitations of the behavior. In addition, an individual develops a susceptibility attitude towards behavior adoption. This occurs after consideration of benefits and limitation of outcomes. The driving force of this is the society expectations of one to uphold the cultural practices. The utilitarianism ethical philosophy developed by John Mill and Jeremy Bentham, calls for acting in the best way to benefit all the people in the society (Six Ethical Philosophies 1). Thus, an individual ends up forming a bias that reflects the society cultural expectations.
Organizations demonstrate some level of acceptable behavioral attributes with regard to personal characteristics (Carroll, 2001). These individuals are not monolithic on social concerns, cultural backgrounds, or personal preferences. As such, individuals have a low regard of cultural beliefs and perceptions and form bias based on personal characteristics. The individuals use association of gender, personal principles and ideologies for the purpose of bias formation. Moreover, some individuals have a high sensitivity of gender; therefore, they form bias in many applications based on the gender status. This depicts that biological factors have a key influence of bias formation among the individuals. Cultural beliefs and perception have a significant influence in bias formation. In this, they dictate the expected moral aspect of an individual in the society. Therefore, an individual has to form a bias that has an element of upholding the cultural beliefs of the society. However, some individuals form bias based on personal characteristics, or influenced by intra-institutional factors rather than cultural beliefs and perceptions.
The government played a big role in formation of this coalition since there are rules and regulations that the acquiring company, in this instance Kraft Food Inc, has to abide by. In Europe, the government assisted in speeding up the legalization of registration activities for acquisition. As such, due to the existence of cultural distance, individuals engaging in international business have to adjust their business policies in order to fit in the new business operation environment (Lee, Shenkar, &Lid, 2007). The dimensions inherent within cultural distance include culture, language and religion. Hofstede’s culture dimensions include uncertainty avoidance, individualism-collectivism, masculinity and power distance (Richard, Hosfstede, & Bond, 2007).
Business organizations and their concurrent countries, always perform an analysis that aids in market entry strategies formulation (Hyllegard, & Eckman, n.d). The market, cost, competitive advantage and government forms the globalization drivers that the country analysis basis the focus. This depicts weaknesses and strengths for a business to participate actively in the international market. Multinational business analysis, on the other hand, outlines the potentiality of the business to gain from the market participation. The analysis incorporates strategic levers such as marketing, location and product, and organization analysis such as culture, people, management and structure.
Cultural dimensions aid in comprehending the different cultures found in different regions, in the universe. As such, for one to strategize management ensures that need for adoption in a given country there is a need of comprehending empathy and knowledge existing in the local environment. This is because people in other countries may depict different actions, thinking capacity and feelings towards societal problems (The Executive Fast Track, 2011). This confronts the tendency of human beings to act, feel and think based on personal experiences at the instant of working internationally. Culture has a myriad of dynamics; therefore, predicting the effect of culture on behavior is quite impossible (Mead, 2005). This depicts that there are situations in which culture has an insignificant influence in the decision making process, and there are times that decision-making process is quite reliable on the cultural systems established in a given region. Moreover, cultural dimensions affect the management processes for organizations effectively. The processes affected include training, leadership styles, and promotion methods among others.
Question 4
Analyse the four “key benefits” Kraft outlined in their final offer document (above) and, using extensive reinforcement from appropriate literature, come to a critical judgement about the relative importance of each of these “key benefits” to Kraft shareholders. Your analysis should incorporate a critique of major shareholder Warren Buffet’s claim that he is poorer as a result of the deal.
Kraft analyzed four key benefits associated with acquiring Cadbury Food. The first benefit was that the combination was expected to provide a potential for meaningful revenue synergies over time from investment in distribution, marketing and product development (YouTube, 2011). A key method of minimizing ideas generated about acquiring a given organization by a company is having a market research conducted. In this, the consumer preferences for the products, the price of related products, the brand name of related products and the target market information is gathered. The information is then analyzed and presented to the company. The ideas generated by the company about the new product are then sorted out in line with the results of the research. The ideas found to fully meet the desires of the target market are then adopted by the company and used for the product development. In addition, it is expected that pre-tax cost savings of at least USD 675 million annually can be realized by the end of the third year following completion. Total one-off implementation cash costs of approximately USD 1.3 billion are expected to be incurred in the first three years following completion.
The second benefit was associated with provision of an attractive opportunity for Cadbury Security holders. Cadbury was to benefit from 13.0 times the value of shares in the organization. This was of benefit to Kraft Food since after they combine; the dividends will be directed to their account. The enterprise value multiple is calculated assuming the exercise of all share options and vesting of all share awards held under the Cadbury Share Schemes.
The third benefit was on technological advancement. Moore and Pareek (2010) claim that, internet support by technology, has led to a cost-effective means of marketing that aims at interacting with the potential market, which could be one individual. Therefore, web marketing is more of direct marketing than mass marketing. In the interaction process of the internet, it involves one individual, although, the individual may gather pals around. This results in conveying the information directly to the individual. In addition, the individual may send the link to friends, and when they open, direct marketing occurs since the target person gets the information very fast. This form of marketing leads to development of customer loyalty and obtaining immediate customer feedback. However, web-marketing strategy results in mass marketing since many people end up receiving the conveyed information. Mass marketing deserves that customers get the information in a common pool when they are together. This does not happen with web marketing since it is only individual at a time that gets the information. Therefore, web marketing is more of direct marketing than mass marketing.
Fourthly Kraft Food would benefit from The board of Kraft Foods believes that a combination of Kraft Foods and Cadbury represents a strong and complementary strategic fit, creating a global confectionery leader, with a portfolio including more than 40 confectionery brands, each with annual sales in excess of USD 100 million. Globally, the Combined Group would be number one in the chocolate and sugar confectionery segments and a strong number two in the high growth gum segment. Change in an organization demands that the organization establishes the necessary mechanisms for managing, controlling, and implementing change. Most of the organizations have faced the challenge of change management and have ended up failing to adopt change.
Change acts as a steering gear towards optimization of organization performance and gaining better results. Appreciation of change by stakeholders of a given organization is a crucial step that aids in implementation of change. However, most organizations appreciate change extensively, but managing change becomes a significant challenge. Thus, there is a need of comprehending change management strategies in order to formulate the most effective measures that need adoption during change implementation process. The claim by Warren Buffer becoming poor after the deal was unsupported since there might be some conditions that the organization failed to fulfil. With all these benefits, every organization will be much willing to form a coalition as that formed between Kraft Food and Cadbury Food.
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