The history and development of business - Free Essay Example

Sample details Pages: 8 Words: 2331 Downloads: 6 Date added: 2017/06/26 Category Business Essay Type Narrative essay Did you like this example? Introduction Business history, in the broadest sense of the world includes everything regarding the past of business, from the individual histories of firms up to the entire business process systems. The scope and boundaries of such has continued to be a subject of intense debates. However, business histories research insights into the nature and origins of innovations and wealth of nations. Don’t waste time! Our writers will create an original "The history and development of business" essay for you Create order As a result of the researches, there have been understandings on the roles of business histories and development when it comes to business success. By nature, business history is an interdisciplinary subject. First and foremost, businesses are economic units that make such decisions as how much of a good to produce, how to make it, and what to change for it, their behavior is nothing if not the subject of the economic theory. At the same time, however, businesses are organizations of people whose choices are affected by the social and cultural environment in which they live and work. Hence, understanding how businesses operated in the past and why they have succeed or failed, is inevitably an interpretive activity that requires the tools and sensitivity of scholars of history as well. This paper should discuss the extent of the impact of understanding the business history and development in terms of the success of business. This shall provide situational examples so that the p oints of discussion can be discussed accordingly. History of Business Strategies The concept of strategy can be traced back during the military campaigns. The results of which, whether good or bad, were the products of the ideas of a strategists. The first recorded writing about strategic thinking was authored by Greeks and Romans (Shimizu, Carvalho, and Laurindo 2006). The oldest text that discusses the matter is â€Å"The Art of War† by the Chinese writer Sun Tzu in the fourth century B.C. this book reached the West during the 18th century and was well disseminated during the 20th century. Various authors have published books regarding the concept. The most influential of all are Karl von Clausewitz, a Prussian general, and Antoine-Henri de Jomini, a French-Swiss general. Von Clausewitz works contribute in the understanding the relationship between theory and practice and envisions war as a dynamic process. According to him strategic theory should have a descriptive nature rather than prescriptive. An example of this is that there is no exact recipe in being successful; instead learning from outside experiences is possible. On the other hand, Jominis principles in strategy emphasized that there are scientific principles in military strategy. These principles should not only be prescribed, but should be followed. This was considered now as the prescriptive approach. Jomini considered that these strategic principles are always valid and are independent of a situations or the technology employed. These two contradicting approaches have contributed in the strategies of the business world. Von Clausewitz use of analogy especially in taking cases is frequently being used in the study of business. These two authors have great influence in the strategic theory. Michael Porter formulated the generic strategies in the 1980s. It outlines three main strategic options open to organizations that aims to achieve a competitive advantage. Each of options is considered within the context of the competitive environment. The three generi c strategies are cost leadership, differentiation and focus. Cost Leadership: In a low cost organization, factories are built and maintained. Labor force are recruited and trained in delivering the lowest cost of production. Cost advantage is the main focus. In every element of the value chain, costs are being shaved off. Low costs do not always mean low prices. Example of this strategy is practiced by Toyota. Differentiation: This strategy satisfies the needs of customers through a sustainable advantage of competition. Companies are allowed to desensitize prices and focus on value providing a better market margin and a comparatively higher price. The advantage of this strategy is that allows organizations to segment its markets so that it can target specific segments. British Airways practice this kind of strategy. Focus on Niche Strategy: This strategy is suitable when an organization can afford neither a wide scope of cost leadership nor a wide scope of differentiation s trategy. In this strategy, the organization is focused in the effort and resources on a very narrow and segmented market. Telecommunications companies often use this kind of strategy. Technologys Recent Development and Globalization Thomas Friedmans book entitled â€Å"The World is Flat† is a metaphor of the world in terms of its leverage in commerce and competition, just like in a playing field wherein everyone has an equal opportunity. In this book, he analyzed globalizations progress, giving emphasis on the 21st century. Friedman views globalization as a change in the economic core in the sense that it leveled in the competitive playing fields between the industrial countries and those with emerging markets. There are a lot of globalization books available and this book by Friedman managed to entertain, inform and sometimes annoy its readers. The author was able to travel all points, however, he emphasized on two nations that will be the worlds future giants, India and China. The details and the research that he used are very intriguing especially the data from the call center workers in India. The writer made presented this book since it discusses about technology which is very important in th e evolution of business history as well as its significant impact for the success of the business. A Case Study A case study was conducted by Sahai regarding the evolution and history of the Acer Company. It is shown that Acer had carefully articulated its strategy from the very beginning of its formation in all of its decisions organizational structure, people management, policy decisions, business strategies, etc. that was quite revolutionary in the Asian world. Acer has used innovative management techniques for its operations, human resources management, and diversification and channel strategies. It has been able to allow (almost) complete decision making power to its business units while still leveraging the competencies from these individual autonomous units by promoting a management style which promotes individual growth innovative operations management using the concepts from JIT building a â€Å"client server† organization which enables open communication and knowledge transfer wisely choosing its partners in successful companies like IBM in US and SNI in Europe. These str ategies have led the company to the stage where it is now faced with the Asian crisis and the growing international competition. Additionally, with the introduction of the internet, the division of labor and capital has disappeared. In other words, the competitive advantage of Acer is gradually going away. Partnership and new product strategies based on internet technologies seem to provide the solution. It has to adapt to the changing world and develop new set of policies. Developing corporate strategies is a phenomenon similar to learning from other species in the animal kingdom, and the five REM provide a basis for developing winning corporate policies. Relationship Marketing Certain organizational changes have facilitated the growth of relationship marketing. Amongst these the most significant is the role definition of the members of the organization. Through a variety of changes in organizational processes, companies are now directly involving users of products and services in the purchase and acquisition decisions of the company. For a considerable time, these functions were managed by the procurement department as a specialized function, with little or no input from the actual users of these products and services. Thus the separation that existed between the producer and the user due to the existence of user middlemen, acting as gatekeepers, is potentially bridged in many cases. Wherever such changes are being made, direct interaction and cooperative relationship between producers and users develop. Finally, in the post-industrialization period the increase in competitive intensity is forcing marketers to be concerned with customer retention. As several studies have indicated, retaining customers is less expensive and perhaps a more sustainable competitive advantage than acquiring new customers. Marketers are realizing that it costs less to retain customers than to compete for new ones (Rosenberg Czepiel 1984). On the supply side it pays more to develop closer relationships with a few suppliers than to develop more vendors (Hayes, Wheelwright and Clark 1988; Spekman 1988). In addition, several marketers are also concerned with keeping customers for life, rather than merely making a one-time sale (Cannie and Caplin 1991). In summary, relationship-orientation in marketing has staged a comeback. It was only during the peak of industrialization that marketings orientation shifted toward a transactional approach. With the advent of middlemen, and the separation of producers and users, there was a greater transactions orientation. Industrialization led to a reversal in the relationship between supply and demand, when due to m ass production efforts producers created excess supply of goods and services and were them selves preoccupied with achieving production efficiencies. Thus, they needed middlemen to service the customer. The middlemen in turn, adopted a transactional approach as they were more interested in the economic benefits of exchange than the value of production and/or consumption. Although efficiencies in product distribution were achieved through middlemen, effectiveness was not always accomplished as was evident from the literature on channel conflict. Although the exchange paradigm has been very useful in the development of marketing theory, it has outlived its utility. Born out of the transactions focus, the exchange paradigm serves a useful purpose in explaining value distribution among marketing actors. In the industrial era, where only manufacturers created value through their developmental and production activities, and middlemen shared the risk of ownership and provided the time a nd place utility, exchange paradigm was a useful way to study value distribution among these marketing actors. Consumers derived a surplus and utility from this exchange, but they could not contribute as much in value creation. However, where consumers are involved in co-production and have interdependent relationships with producers, the concern for value creation is paramount. For example, in home building, buyers get involved and emotionally attached with the home building process seeking to create value for them. The nature of interactions between the builder and the home buyer is not related to the exchange as much as it to create a dream home for the buyer. Exchange paradigm may explain the transaction in an existing home sale where value distribution is being undertaken, however, in the home building case or other situations where consumers are directly involved as co-producers, co-designers or co-marketers, there is a need for an alternative paradigm of marketing. Conclusion By nature, business history is an interdisciplinary subject. First and foremost, businesses are economic units that make such decisions as how much of a good to produce, how to make it, and what to change for it, their behavior is nothing if not the subject of the economic theory. At the same time, however, businesses are organizations of people whose choices are affected by the social and cultural environment in which they live and work. Hence, understanding how businesses operated in the past and why they have succeed or failed, is inevitably an interpretive activity that requires the tools and sensitivity of scholars of history as well. It is true that historical knowledge has sometimes been reduced to studying the facts without contextualization, without paying attention to their vital environment, to the political, cultural or social context of an era. We must not fall into this trap. Fortunately, ours is a young discipline, and this means that we are free of the paralyzin g perspectives and lifeless dissections which sometimes dog the study of history. According to classical authors, the first role of history is to teach us about life. It shows us how to avoid stumbling over the same stone again and again. It tells us, for example, who the main actors were in the most important events, and why they acted as they did. It informs us about moments of crisis and how people responded to them. It reports the most noteworthy successes. And it offers the upcoming generations a new way of working. History contributes so much, and so it should be cultivated, because it helps to keep alive the true identity of our profession. The main problem is the sources. We cannot know what no one has taken the trouble to preserve. This is why it is so important to read the books written by the great figures of business development. But it is also vital to complete the picture by reading other points of view. We have to consult state archives, specialized journals, do cuments from businesses and bibliographical sources. It is not enough to collect the great masterpieces written by leading figures. It is just as important to take note of everyday matters, because it is this, in the long run, which will enable us to delineate more accurately the distinctive features of our profession. In this sense, there are some historical sources which are of primary importance: internal bulletins of companies and professional associations, reports produced by experts, and empirical analyses. All documents are useful to reconstruct later the identity of a particular corporation, the features of a particular event, or the overall history of business. Those of us who work in this profession will thus be empowered to project its strategy into the future, because we thoroughly understand its past. BIBLIOGRAPHY Cannie, J. K., and Caplin, D. (1991) Keeping Customers for Life. American Management Association, New York. Hayes, R. H., Wheelright, S.C. and Clarke, K. (1988) Dynamic Manufacturing. The Free Press, New York. Pearce, Robert. (2006). Globalization and Development: an International Business Strategy Approach. Transnational Corporations. Volume 15, Number 1, pp. 39-74. Rosenberg, L. J. and Cziepiel, J. A. (1984) A Marketing Approach to Customer Retention, Journal of Consumer Marketing, Vol. 1, Spring, pp.45-51. Sahi, A. K. Learning from Evolution. Unpublished Dissertation, Massachusetts Institute of Technology. Shimizu, T., Carvalho, M.M. and Laurindo F.J.B. (2006). Strategic Alignment Process and Decision Support Systems: Theory and Case Studies. Idea Group Inc. pp. 1-13. Spekman, R. E. (1988) Strategic Supplier Selection: Understanding Long-Term Buyer Relationships, Business Horizons, (July/August), pp. 75-81.

A Vey Brief History fo South Africa - 803 Words

People have inhabited South Africa for thousands of years and were members of the oldest surviving people of the land, the Khoisan language groups. With just a few left in South Africa mostly located in the sections of the western region. But mostly today black, South Africans belonged to the Bantu language group, which migrated from central Africa, settling in the Transvaal region around 100 A.D. (South Africa: History, 2012). Also the Nguni people who were ancestors of the Zulu and Xhosa occupied most of the eastern coast by 1500 (South Africa: History, 2012). The first Europeans to reach the Cape of Good Hope were the Portuguese in 1488, but there wasnt a permanent white settlement until 1652 (South Africa: History, 2012).The Dutch East India Company established a stopping station for ships on there way to the East Indies. With time many Germans, French Huguenot refugees, British, and Dutch starting settling in the area, and in 1779, these European settlements started to grow throughout the southern part of the Cape and east toward the Great Fish River (South Africa: History, 2012).It was here in this location were the Europeans and the Xhosa fought their first frontier war. Ultimately, it was the British who gained control of the Cape of Good Hope towards the end of the 18th century (South Africa: History, 2012). This marked the beginning of a long conflict between the Afrikaners and the English. After the Napoleonic wars were concluded in 1815, however South

American Fashion Industry in 21st Century Free Essays

American Fashion in 21st Century ‘Fashion’ is the need to adapt to ever changing styles; to dress in distinctive and current trends and a means for one to express their individuality. Fashion refers to keeping every aspect of one’s body up-to-date for varying reasons. Some people prefer a simple life style with modest attire whereas most passionately follow the fashion industry and rapidly change accordingly. We will write a custom essay sample on American Fashion Industry in 21st Century or any similar topic only for you Order Now This increase in demand for individually tailored items including everything from clothing and footwear to makeup and body piercings is what gave birth to the fashion industry. The roots of this business can be traced to America in the nineteenth century where it grew rapidly and spread across the globe to become the highly integrated industry that exists today. The fashion industry has created thousands of jobs, increased national output and has made significant contributing to increases in GDP (Gross Domestic Product) but is also accompanied by exploitation of labor, eating disorder particularly in models and also the growth of counterfeit products. The international fashion industry portrays an ideal body type commonly known as the ‘size zero’ which women often attempt to attain. This leads them down the road of low self-esteem, starvation and even self-mutilation often resulting in eating disorders, health issues and even suicide. Models between the age of 18 and 24 practically give up eating and also resort to using drugs and alcohol to combat the ensuing depression and irritability which eventually leads to some of them dying young, all just to gain entry into the fashion industry. Natasha Duncan was one such prominent American model who committed suicide at the age of 21(Rose 1). The global fashion industry projects the image of thin and beautiful people that have been airbrushed to perfection thus creating an ideal image of how ‘fashionable’ people should look. Common women get conscious about their own looks and then try to attain this level of perfection, the road to which often go through eating disorders such as anorexia nervosa and bulimia. In fact, it is estimated that 8 million Americans suffer from an eating disorder – seven million women and one million men( Fashion 1). Nevertheless it is argued that the American fashion industry has made vital contributions to its in terms of creating employment opportunities and boosting GDP. As a matter of fact, despite the severe recession, the fashion industry is one of the most stable and high-growth industries in the economy. This is because, irrespective of inflation and wages, people still need to buy clothes, footwear and makeup and the fashion industry is one that can rapidly adapt to provide them. In 2010 American households spent, on average, $1,700 on apparel, footwear, and related products and services which is why it generates over $20 billion in revenue is annually (Fashion 1). Moreover the fashion industry played an important part in giving jobs when other industries were firing people. Currently it employs over 4 million people under the following areas: design, manufacturing, distribution, marketing, retailing, advertising, communication, publishing and consulting (Fashion 1). Beside creating jobs and increasing GDP, the fashion industry has promoted the freedom of expression by allowing individuals to express themselves through their attire. Fashion designers rapidly come up with innovative and creative ideas thus essentially enriching the lives of people and making them more interesting. This is precisely why fashion shows are held: they give models a chance to flaunt their talents and also an opportunity for them to interact with models from other countries, communities and ethnicities which allows them to express themselves and their unique identities. When people are well dressed according to what is in fashion, this would reflect the culture and thinking of the society. Nevertheless, it must be noted that fashion leads to competition amongst people to look better than others which manifests itself through jealousy, resentment and even sabotage. What is more, this completion extends to designers as well since they strive to differentiate their products introduce innovative styles which can result in an inefficient use of resources and illegal business practices. This need for cost minimization is one of the reasons as to why the fashion industry exploits cheap foreign labor. The glamor, the runways and the exhibitions are just the front of a dark background. This industry works on the basis of subcontracting, where designers place orders with manufacturers who then hire sub-contractor to complete their orders. Since this industry is highly competitive subcontractor are given only take or leave option with often less payment compared to amount of work which forces them to resort to employing cheap labor in their own workshops which often end up resembling sweat shops. Even if this is not the case, designer brands have their own units to produce their goods. Recently many of the fashion retailers have been accused of underpaying their workers and violating international labor laws by running sweatshop. These involve extremely low wages, long working hours and poor working conditions. Earlier this month, factories in Cambodia were investigated for possible violation labor laws. These factories produced clothing for the fast fashion retailer HM which was found to be paying their workers a measly wage of $61 a month by a Swedish TV program called ‘Kalla Fakta’(Keilla 1). Since America is powerful country, it negotiates trade agreements with developing countries on the basis of free trade agreements. Famous brands then shift their production units to such countries where exploitation is very common. According to a U. S. ommerce department report, the basic wage for garment workers in Honduras is $0. 473 per hour, or $3. 47 per day. After deducting costs for transportation to and from work, breakfast and lunch costs of $2. 59 that leaves $0. 80 a day for families and other basic needs ( the Ethics pg 345). This is considered to be completely unfair when workers are hardly making their ends meet but on the other hand fashion houses are making handsome prof its. In addition to these the fashion industry has a negative social impact through the creation of counterfeit products. These are replicas of original products which are sold at substantially lower prices in black markets all over the world. It is argued that this practice is unfair since some consumers are paying more than other for the same good. In America such problems are even more complex because their legal system only protects functionality and not design or style. Since fashion houses have globalized their production and distribution process, it becomes easier to produce counterfeit goods. This is represented by the fact that the U. S. customs made 6500 seizures in 2003 worth over $94 billion (the Ethics pg 346) . High demand for fashion goods gives other business the incentive to make fake copies of original goods and sell in the market. This not only causes a loss in the sale for fashion businesses but also increases the probability of customers mistakenly purchasing fake items. In its annual ‘’special 301† review, the office of the U. S. Trade Representative (USTR) identified more than 30 countries as centers for counterfeiting and piracy and estimated that American industries lose$200 Billion- $250 billion a year to counterfeiting (the Ethics pg 347). The international fashion industry has significantly transformed from what it started out in the nineteenth century to impact a number of aspects of one’s life as the arguments above have demonstrated. That being said, these changes are not constant and continue to grow and evolve due to a number of factors thus making it difficult for economists, industrialists and policy makers alike to objectively weigh the fashion industries benefits and disadvantages. What can be said for certain though is disadvantages such as exploitation of labor, eating disorder and coping of thought and ideas causes more harm to the society as compare to its advantages such as creating more jobs and increasing globalization. Work Cited Al-Azzawi, Ali Malik. â€Å"Fashion Industry and Media Today: The Negative Impact on Society. † (n. d. ): 109. Print. Fashion Industry Stats / Fashion Industry Statistics.  © Copyright SiteRapture, Inc. 2012, 26 Mar. 2013. Web. 26 Mar. 2013. http://www. grabstats. com/statcategorymain. aspx? StatCatID=12. Is Fashion Harmful to Society? †Ã‚  Debate. org. Copyright  © 2012 Debate. org, 25 Mar. 2013. Web. 25 Mar. 2013. http://www. debate. org/opinions/is-fashion-harmful-to-society. Keilla. â€Å"Fashionably Informed: Exploitation of Labor Popular Clothing Retailers – College Fashion. †Ã‚  College Fashion. Copyright  © 2007-2013 College Fashion LLC, 25 Mar. 2013. Web. 25 Mar. 2013. http://www. coll egefashion. net/fashion-news/fashionably-informed-exploitation-of-labor- popular-clothing-retailers/. Rose, Derek, and Alice Mcquillan. â€Å"WILHELMINA MODEL KILLED SELF, COPS SAY.   NY Daily News. N. p. , 23 July 2001. Web. 25 Mar. 2013. http://www. nydailynews. com/archives/news/wilhelmina-model-killed-cops-article-1. 930784. â€Å"Sweatshops. †Ã‚  Sweatshops. Fashion Crimes, 25 Mar. 2013. Web. 25 Mar. 2013. https://www. mtholyoke. edu/~nshah/fashioncrimes/Sweatshops. html. The Ethics of Counterfeiting in the Fashion Industry: Quality, Credence and Profit Issues Brian Hilton, Chong Ju Choi and Stephen Chen, Journal of Business Ethics  , Vol. 55, No. 4 (Dec. , 2004), pp. 345-354 http://www. jstor. org/stable/25123399 How to cite American Fashion Industry in 21st Century, Papers