Recent orders
The Negative Economic Impact of COVID-19
The Negative Economic Impact of COVID-19
It is essential for China to have a comprehensive grasp of the ways in which COVID-19 impacts the economy and energy in this day and age, when trade protectionism is on the increase. In a world where there is a lot of uncertainty, this will make China’s economy stronger and better prepared to withstand any shocks that come from the outside. Some companies have been impacted more severely by the recession of COVID-19 than they have been by any prior recession (Ashraf, 2020). Some of these businesses are dependent on the flow of people, while others, such as those that are reliant on the exchange of information, have been mostly untouched by the recent disruptions. The impact of the epidemic on the Chinese economy has been shown by a variety of different metrics, including changes in household incomes and fluctuations in the cost of basic items (Kaye et al., 2021). All economic sectors around the world have slowed down, and more than a third of the world’s population has been put under lockdown causing economies around the world, including strong ones like the U.S., to go into a state of global shock on both the demand and supply sides and the consequences have included high rates of inflation, economic meltdowns, and a loss of income from key industries like tourism, hospitality, transportation, and the food sector.
There is not a single nation on the face of the earth, nor is there an international or cooperative organization, that has not altered the manner in which it does its business (Ashraf, 2020) as a direct result of the substantial economic changes that have been brought about by the COVID-19 pandemic. Most of the effects on the economy come from the steps that different governments have taken to stop the spread of the disease, while the effects on health are caused directly by the contagion that spreads the disease. Most countries have taken important steps to stop the disease from spreading, such as closing their borders and slowing down or stopping their economies. Because of this, many places, like businesses, schools, and social services, have had to close for a while.
Because to COVID-19, significant economic pillars like tourism have been severely damaged, and as a result, the hotel and leisure industry now has the highest unemployment rate of all major industries, leading to institutional and business closure, massive unemployment rates, and economic losses. Due to the epidemic and the steps taken to stop it at the start, both domestic and international trade were affected. When the borders reopened at the beginning of June, the temporary rise in food prices that happened when they were shut down in April 2020 and people rushed to buy things has gone down. Important industries, like the tourism industry, came to a complete stop. Because all companies that depended on transportation had to close, the economy lost a lot of money.
While COVID-19 was wreaking havoc on businesses that were dependent on in-person interaction (Kaye et al., 2021), the use of technology for remote employment and commercial transactions increased dramatically, resulting in an increase in the profitability of technological industries such as e-commerce platforms, e-banking, and fintech businesses. According to a recent analysis by Jackson (2021), there is a risk that China will continue to use the same playbook of stimulus-led investment to improve economic development over the medium term. This presents a significant challenge for the country (Ceylan, Ozkan, & Mulazimogullari, 2020). It is anticipated that the rate of economic growth in China would decelerate in the remaining part of 2022 before rising in 2023, reflecting the economic harm caused by the continued presence of COVID-19. Between now and 2027, there will be an unprecedented increase in physical capital investment, which will provide significant growth in the short run (Dai et al., 2022). There will be a massive inflow of funding towards decarbonization and vital infrastructure renovation to the tune of around 130 trillion dollars. However, in China as well as the rest of the world, very few businesses are ready to respond quickly and efficiently to the recent infusion of financial resources due to the economic impacts of the pandemic (Liu, Liu, & Yan, 2020). Businesses should consider top-down planning for portfolio synergies; doing so presents a significant challenge that requires sophisticated stakeholder management, capital market knowledge, and an understanding of the nuances of regulatory procedures.
In China, investment growth is expected to accelerate over the next year, aided by a strong fiscal stimulus, countering weaknesses in real spending, which has been hampered by low consumer confidence as well as the reappearance of COVID-19 and accompanying mobility restrictions. China is now confronted with the dual challenges of mitigating the effects of COVID-19 and maintaining the country’s ongoing economic expansion (Liu, Liu, & Yan, 2020). The high amounts of debt held by corporations and local governments reduce the efficiency of policy easing and stockpile additional risks for the future of China (Dai et al., 2022). There is also the possibility of dangers arising from extended stress in the real estate market, which has the ability to trigger broader macroeconomic and financial consequences. On the plus side, if COVID-19 is effectively controlled with fewer restrictions, growth for the whole year might be higher than what is presently expected due to the recently announced additional stimulus measures.
In summary, the harsh COVID-related mobility restrictions that were implemented in major cities and provinces throughout China presented substantial negative risks and further delayed the stalled resurgence of consumption and industries, deterred private sector investments, interrupted trade flows, and slowed economic development. Even while the government is making more efforts to relax its grip on macroeconomic policy, the people in charge of making decisions are having a tough time figuring out how to make the policy stimulus effective while at the same time maintaining mobility limits. While considering the economic impacts mentioned in this discussion, it emerges that China might attain a more balanced, equitable, and sustainable economic trajectory by implementing structural changes that stimulate a shift towards consumption, alleviate social inequalities, and revive innovation and productivity growth.
References
Ashraf, B. N. (2020). Economic impact of government interventions during the COVID-19 pandemic: International evidence from financial markets. Journal of behavioral and experimental finance, 27, 100371.
Ceylan, R. F., Ozkan, B., & Mulazimogullari, E. (2020). Historical evidence for economic effects of COVID-19. The European Journal of Health Economics, 21(6), 817-823.
Dai, X., Rao, F., Liu, Z., Mohsin, M., & Taghizadeh-Hesary, F. (2022). Role of public and private investments for green economic recovery in the post-COVID-19. Economic Research-Ekonomska Istraživanja, 1-21.
Jackson, J. K. (2021). Global economic effects of COVID-19. Congressional Research Service.
Kaye, A. D., Okeagu, C. N., Pham, A. D., Silva, R. A., Hurley, J. J., Arron, B. L., … & Cornett, E. M. (2021). Economic impact of COVID-19 pandemic on healthcare facilities and systems: International perspectives. Best Practice & Research Clinical Anaesthesiology, 35(3), 293-306.
Liu, X., Liu, Y., & Yan, Y. (2020). China macroeconomic report 2020: China’s macroeconomy is on the rebound under the impact of COVID-19. Economic and Political Studies, 8(4), 395-435.
The need for a proper pricing strategy
Pricing strategy
The need for a proper pricing strategy is reinforced in the available literature, and according to the researchers, a poor pricing strategy could lead to bankruptcy. The importance of the pricing strategy is recognised by Kerin (2012) who argues that pricing can help an organisation to attain the necessary competitive advantage. But what differentiates a proper pricing strategy from a poor one? In Kotler and Philip’s (2005) view, a proper pricing strategy should consider the external and internal environments, and should be affordable to the customer. In respect to mobile telecommunication industry, customers are very sensitive to price differences, and so the operators are forced to come up with affordable prices as well as adopt the ‘price bundling’ concept. Product bundling as Kotler and Keller (2012) suggest could be beneficial to organisations operating in competitive markets, and whose objective it to expand their market share. Companies in the telecommunication industry have also adopted the discount pricing strategy which helps them to sell a huge quantity of products especially in the developing markets.
Appropriate distribution channels allow companies to deliver goods to customers within limited time. In the mobile telecommunication industry, one of the common channel strategy used is direct marketing in order to increase the profit margins. Customers are able to access phones and other accessories from retails stores. Ziethmal (2000) recognises the need of incorporating direct customer interface in the firm’s value chain. The one-stop-shops allow the mobile operators including Vodafone to integrate the pre-seal, sales, and post-sales activities. In addition, the one-stop-shores allow the customers to access a variety of service including consultations, product presentation, contract arrangements and product delivery (Proctor, 2000).
The mobile service sector relies on heavily on relationship marketing to popularise their products and services. As competition becomes stiff, firms are being forced to keep loyal customers in order to improve the long-term profitability of the company. The concept according to McDonald (2001) evolved from direct response marketing and emphasises on long-term relationships. The concept replaces the traditional marketing framework, and extends communication beyond intrusive advertising and sale promotional messages. Unlike the traditional marketing framework, this new concept emphasises on customer retention, customer contact, customer value, and customer. In regard to the mobile telecommunications sector, relationship with the customers can be improved by providing them with quality services. The quality of services can be improved by increasing reliability and the capacity of the firms to handle customers’ concerns. Lovelock (2001) observes that other key determinants of quality service include the rate of responsiveness and the degree of empathy accorded to the customer. According to the available literature, good perceived service quality should have the following elements; accessibility and flexibility, service scope, service recovery, reputation and credibility (Vargo and Lusch, 2004).
The importance of the relationship marketing in the UK mobile phone sector is highly recognised and already companies like O2 and T-mobile have committed themselves to developing long-term relationship. It is assumed that developing enterprise-level systems could help firms to acquire real-time information for the improvement of customer services (Vargo and Lusch, 2004). In addition, such information provides telecom companies to interact with customers on a regular basis and helping the marketer to identify and prospect new leads (Moller and Halinen, 2000). Although mobile service providers are already using relationship marketing to achieve customer loyalty Dev, and Don (2005) believe they could do more by integrating their systems with call centre operations. Such a strategy will help the firms to collect consumer-related data and use it to meet their needs and wants. The information obtained could also be used to identify consumers’ demographics and their buying pattern and providing personalised services to different consumer segments (Sudhir, 2001).
The marketing communication strategy should involve differentiation of products and services. In the modern economy differentiation of products and services can be achieved trough branding. The available literature has also recognised the role of branding in the achievement of competitive advantage and giving the company a sustainable position in the industry (Erdem and Baohong, 2002). A brand as Aaker and Joachimsthaler (2000) observe should guarantee customers particular features, benefits and services, and ensure there is consistency. A key component as discussed by Aaker and Joachimsthaler (2000) is brand management which entails managing products and services from the time they are introduced in the marketplace until when they are removed. In the telecommunication industry, firms use all manner of strategies including advertising intangible assets such as quality, shape, colour, and lifestyle compatibility (Cellini and Luca, 2003).
A key component of branding is brand equity which is defined as a set of assets and liabilities which are linked to particular product or a service (Jobber, 2001). According to Capon and Hulbert (2000) branding equity influences consumer’s choice of a particular product over another and the willingness of a customer to pay relative more for a product or service. Branding equity provides value to companies by enhancing the value of their marketing programs, and by enhancing the following components: brand extensions, trade leverage, prices, and competitive advantage. On the other hand, brand equity provides value to the customers by enhancing confidence in purchase decision, improving satisfaction and increasing the speed at which information is interpreted and processed (Lawrence et al., 2000). In this regard, due to its high brand equity, Vodafone has more trade leverage when bargaining with mobile manufacturers, distributors and retails. Secondly, the company can be able to charge higher prices for its products and services compared to its competitors. Thirdly, the company has been able to establish brand extensions and its brand has high perceived quality.
As Blythe (2001) suggests brand equity is closely related to the following concepts: brand loyalty, name awareness, perceived quality, brand association and proprietary assets. As Blythe (2001) further observes brand loyalty is associated with the following constructs: switching costs, satisfaction, liking and commitment. Brand loyalty is very vital in the mobile sector, as it for this reason that firms always strive to ensure the consumers become committed to their products and services (Brassington and Pettitt, 2000). The available literature concurs that when well managed; brand loyalty can lead to positive outcomes such as reduced marketing costs, improved trade leverage and brand awareness (Lewis and Bridger, 2000).
Firms should always strive to create product of perceive high quality in order to attract new customers and gain the necessary competitive advantage, the concept, is defined as the perceived superiority of a product or service relative to other alternatives (Patterson, and Ward, 2000). In the mobile service sector, the perceived quality of products is very vital as it increases the switching costs and reduces the customer churn rate. It also gives customers a base on which they can make the purchase decision and differentiates the products from other competing goods. Of-course, as Ellwood (2002) posits, when a brand is perceived to be of high quality, it can command premium prices. Firms can take advantage of this strategy by increasing the existing products lines, which too are likely to attract high prices. Of most importance, branding creates association which are helps the consumers to connect with products and services. To create the right perceptions, a brand needs to be well-positioned. The available literature associates positive brand association with increased loyalty, positive attitudes and feelings (Schultz, 2001). In addition, researchers suggest that firms could take advantage of the brand associations to establish brand extensions, hence improving their bottom-line revenue. As suggested by Wang, Head and Archer (2000) brand associations can positively be impacted on through celebrity endorsements.
References
Lawrence, E., Corbitt, B, Fisher, J.A, Lawrence, J. and Tidwell, A., 2000. Internet Commerce, 2nd Edition. John Wiley & Sons Australia Ltd
Lewis, D. and Bridger, D., 2000. The soul of the new consumer : authenticity – what we buy and why in the new economy. London: BrealeyLovelock, P.,2001. Services Marketing, people, technology, strategy. Prentice Hall.Mascarenhas, O. A., Kesavan, R., and Bernacchi, M., 2006. Lasting customer loyalty:
a total customer experience approach. Journal of Consumer Marketing, 23(7),
397-405.McDonald, M., 2001. Marketing Plans. How to prepare them, how to use the. 4th edition, Butterworth HeinenammMoller, K. and Halinen, A., 2000. Relationship Marketing Theory: Its roots and directions. Journal of Marketing Management, Vol. 16 (1-3), pp.29-54
The nature of Virtue in the Meno
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The nature of Virtue in the Meno
The Meno is one of the earliest Plato’s dialogues which involve the conversation between Meno enquiring Socrates whether virtue can be taught. It starts when Meno asks Socrates whether virtue is teachable or not. He states, “Can you tell me, Socrates, can virtue be taught? Or is it not teachable but the result of practice, or is neither of this, but men possess it by nature or in some other way?”(Meno 70a). Socrates then answers Meno by telling him he does not have the definition of virtue; hence, he does not know whether it is teachable. Meno is astonished by the reply and goes ahead to define virtue in three different ways.
The first description of Virtue by Meno is that virtue is dependent on the person and varies from person to person. For example, a woman’s virtue is that she can stay at home and manage household duties. He gives another scenario of a soldier’s virtue which is to be brave and skilled in battle. He goes on and on, giving different instances trying to show how virtue is dependent on the person. He then goes ahead to state how virtue varies for every action, occasion, and age. Socrates objects this definition due to Meno’s various instances stating that the common thing shared by the people should be the proper meaning of virtue.
After Socrates’s objection, Meno goes further to describe virtue as the gift to rule over men. In this definition, he states, “What else but to rule over people, if you are seeking one description to fit them all” (Meno 73d). In this description, Meno tries to argue how virtue’s main desire is the fulfillment of purpose. The ultimate purpose of men is happiness and pleasure, which is only satisfied by acquiring the power of ruling. His main aim in this definition is to show how ruling over men helps in acquiring virtues. Socrates, on the other hand, objects this definition by noting that the gift to rule over men is only useful if it is just; hence the definition involves only one virtue, which is Justice. Socrates also uses the analogy of how shapes cannot be defined by describing other shapes such as squares to object the second description of virtue.
Meno then gives the third definition, where he defines virtue as the desire and ability to acquire beautiful and elegant things. In this definition, he states, “I think, Socrates that virtue is, as the poet says, to find joy in beautiful things and have power” (Meno 77b). Socrates goes on to object to this definition by stating that everybody thinks his or her desires are good; hence, acquiring these things to fulfill one’s wishes can be bad or good. Meno agrees with Socrates that the capability will count as a virtue only if it is a good thing.
On failing to define virtue successfully, Meno asks Socrates to respond to his initial question on whether virtue is teachable or not. Socrates acknowledges that virtues can be taught where he then tries to explain his reasoning. He states that virtues are a good thing to have, accompanied by specific wisdom or knowledge. Hence virtue can be referred to as good wisdom or knowledge, which makes it possible to acquire. Thus virtue can be learnt if a person has the necessary knowledge and wisdom to acquire it.
Works Cited
Cooper, John M. Plato: Five Dialogues: Euthyphro, Apology, Crito, Meno, Phaedo. Hackett Publishing, 2002.
Weiner, Ariel. “Knowledge and True Opinion in Plato’s Meno.” Pseudo-Dionysius 17 (2015).