Sunday, January 26, 2020
America and Multilateralism: A History
America and Multilateralism: A History Perhaps it is safe to surmise from the very beginning that there does not appear to be a country in the world that is not affected or has not been affected in one way or the other by the United States of America. Short of this, there most certainly does not remain in existence a country, people or society which has no knowledge, however limited, of the United States of America. No single day passes without the American power being addressed or diagnosed in one capacity or the other by the global media. Over time, but in particular, in more recent times, no other countryââ¬â¢s political, domestic, economic defence or capabilities and abilities have been more studied or discussed than the extent at which America has been. In actual fact, it is safe to surmise that very few political issues today provoke such strong and diverse responses as the role of the United States of America in its attempt to re-shape world affairs.[1] The recent terrorist attack on America of grave consequence s, its reaction to it and the wars in Afghanistan as well as Iraq have intensified the debate about the nature and prospects of American super power. There remains a school of thought that continues to celebrate the United Statesââ¬â¢ achievements in proclaiming as well as bringing liberty, democracy and prosperity to every corner of the world. Others are more inclined towards condemnation of Americaââ¬â¢s pursuit of hegemonic status and its attempt to impose a single economic system and a narrow set of moral belief on other nations around the world. Whichever school of thought one belongs to re Americaââ¬â¢s performance on the international podium, most have arrived at the conclusion that the history of the twenty-first century will be determined to a large extent by the way American power is used, and by the way in which other major political players on the international front react to it. The nation has often been referred to as an imperial, an empire or hegemony. Most p eople still continue to perceive America as that democratic land of roses where ââ¬Ëanything can happenââ¬â¢. Some still believe in, especially those outside the shores of the country and straining to one day be admitted into the great country, what they call the ââ¬ËAmerican Dreamââ¬â¢. It is supposedly a country where ââ¬Ëanything is possibleââ¬â¢. Often times however, America is no longer beheld with rose tinted spectacles. Given its recent history world over, this is hardly a surprise of any significance. The word which best comes to mind when America, that great nation is under discussion as it constantly is for diverse reasons, is hegemony. What, it might be useful to enquire at this juncture, is hegemony? In lay manââ¬â¢s terms, hegemony, succinctly put, is leadership by predominance (some might even say aggression) of smaller and weaker states or nations by naturally bigger nations in an effort to achieve world domination. Does America therefore stand ri ghtly accused of attempting to dominate the world through its conceptualisation of global politics, foreign policies and armed forces, or at least to dominate those nations which are considered smaller and weaker? It is common knowledge that while some countries practice communism or socialism, America was and remains a capitalist country where the motto right after ââ¬ËIn God We Trustââ¬â¢ is a universally accepted but unspoken ââ¬Ësurvival of the fittestââ¬â¢. In the introductory words of G. John Ikenberry in his book ââ¬ËAmerica Unrivalledââ¬â¢, ââ¬Å"The pr-eminence of American power today is unprecedented in modern history. No other great power has enjoyed such formidable advantages in military, economic, technological, cultural or political capabilities. We live in a one-super power world, and there is no serious competition in sightâ⬠[2] These words immediately bring to mind perhaps the most controversial wars of all times and Americaââ¬â¢s gargantuan contribution or one might even dare say blatant single minded orchestration of the same, the Iraqi invasion (and on-going war till date) in 2003. It is worth reminiscing at this juncture how the world watched and waited with bated breath while the United Nations deliberated on whether or not the United States should be granted the authorisation to invade Iraq based on its reports about the so-called axis of evil and the weapons of mass destruction they supposedly had in the making which it further claimed posed un-foretold threats to the international world. It is yet another point in favour of the argument that America is fast becoming or indeed has all but attained the status of an hegemonic state that President George W. Bush announced to the world that regardless of the UNââ¬â¢s decision and that of its Member States, America will forge ahead in war against Ir aq and Afghanistan, alone if they had to. In his exact words, ââ¬Å"â⬠¦when it comes to our security, we really do not need anyoneââ¬â¢s permissionâ⬠[3] It was later argued that it would appear that even the United Nations, a so-called world moderator and international emblem of peace, is nothing but yet another tool in Americaââ¬â¢s already brimming tool box. Although at the time, this announcement from the Bush Administration sounded as arrogant and ââ¬Ëabove the lawââ¬â¢ as it really was, there were many who felt America would be justified in its decision in the wake of the September 11 attack. September 11 2001 (hereafter referred to as 9/11) brought about the turning point in history, international law and the use of force against terrorism. The words of an American man considered very patriotic indeed comes to mind at this controversial stance of George W. Bush re brushing off the worldââ¬â¢s opinion and/approval to its use of force in the name of figh ting terrorism. The man, none other than Richard Holbrooke, former United States ambassador to the United Nations, who once stated after careful observation, one should imagine, that the Bush administration threatens to make a ââ¬Å"radical break with 55 years of a bipartisan tradition that sought international agreements and regimes of benefit to usâ⬠[4] Many years, loss of lives both civilian and military, reports of horrible treatments meted out to prisoners of war (PWO) by the American soldiers against every rule of Humanitarian Law and the Geneva Convention, Americaââ¬â¢s refusal to withdraw its troops even after the fall of Saddam Hussein (its greatest enemy) the question on everyoneââ¬â¢s lips is whether the war was indeed for all the altruistic reasons quoted by America in its rather fabricated reports or for more reasons closer to home. The question can even be posed all the way back to Operation Desert Storm in the same Iraq in 1993. Did America invade Iraq on both occasions for economic gain and ultimately to place itself as the worldââ¬â¢s super power. Although it appears now to the world that the Bush administration is the one responsible for dramatically drawing America away from multilateralism, a look back into the Clinton administration will confirm that this is not remotely true. Under the Clinton administration, America neither waited for the United Nationââ¬â¢s approval/authorisation before deploying the North Atlantic Treaty Operation (NATO) to Serbia in 1999 nor prior to its bomb attack on Iraq in 1998. There were also other Conventions, Acts and Treaties America rather conspicuously refrained from signing or ratifying such as the banning of further use of Land Mines (the Ottawa Convention of 1997). The difference perhaps would be where the Clinton administration adopted diplomacy in its delivery of such unilateral decisions; the Bush administration simply forges ahead with no regard for the worldââ¬â¢s opinion, appro val or in most cases disapproval. In the era immediately after the World War (II), Americaââ¬â¢s strength was not only viewed during the war with the deployment of its armed forces, which later formed an alliance with the United Kingdom amongst others (the allied forces) but also after the war in its attempt to rebuild Germany as well as other war torn countries in the war aftermath. In this, America had strategised and was apparently successful in ensuring that the world did not revert to its closed regional dealings of the 1930s prior to the war. The founding of the United Nations on 24 October 1945 also saw to it that the beginning of what is now known as globalisation was established. A post war era of multilateral character and significance was thus built around economic and security agreements such as the Bretton Woods Agreement on monetary as well as trade relations among nations. The American-led NATO security pact followed much later. This international order which came into existence after the war (World War II) was effectively one which was multilateral in character. A more open system of trade and investments began to emerge, largely encouraged by America. Economic and security matters as well as political relations became indistinguishable and indivisible among nations in what is best described as an open world market or globalisation. This is evident in the General Agreement on Tariffs and Trade (GATT) as well as the Bretton Woods agreement earlier mentioned. An alliance tie emerged between the United States and the Great Britain in particular and the European continent in general in a scenario one could simply put in lay manââ¬â¢s terms ââ¬Ërub my back and I will rub yoursââ¬â¢. Americaââ¬â¢s economic as well as security assistance to the Asian region is also worth mentioning. America ensured and continues so to do, that weaker and smaller states are afforded security assistance, protection and granted access to its markets, technology and country in general. In th e wake of Americaââ¬â¢s Green Card Lottery scheme, the support and admiration of other smaller states for which the scheme was intended and who continues to benefit from the same was firmly secured. In a similar vein after the world war, citizens of many nations flocked in their thousands to America from world over and started life over again after the war. In what is not unlike the stone age ââ¬Ëtrade by barterââ¬â¢ arrangement, the participating states in turn continue to ensure that political stability is maintained in their relationship with the United States, making available to America their diplomatic, economic and logistical support in return. For instance, America has training grounds in Saudi Arabia and Kuwait, perhaps as a lasting result of Operation Desert Storm. Going back in history however, it remains indelible that there were 5 world super powers including America itself. How then can Ikenberry infer that America has no competition in sight in its steady climb to the top in the international hemisphere? Who were the other four super powers and what became of them? The five major contenders when the United Nations was founded in 1945 were Russia, Great Britain, China, and France. It is accurate to say that the cold war put paid to Russiaââ¬â¢s contention with America. The Great Britain, as exhibited more recently under the Tony Blair administration is more or less a lap-dog to Americanââ¬â¢s policies and remains a rather very friendly ally than a potential contender. Yet it will be nothing short of fallacious argument to say that America has no contender or is without competition in one form or the other. Worth remembering as well is Germany and Franceââ¬â¢s initial reluctance as well as refusal to throw their weight behind the Ir aqi invasion in 2003. Americaââ¬â¢s hegemonic state is therefore not without challenges as well as challengers, it is however the multifaceted character of Americaââ¬â¢s power that makes the country so far reaching, daunting, provocative and formidable to less equipped and smaller countries. The collapse of the Soviet Union in the Cold War saw an acute decline in rival ideologies and even tighter alliances formed between the United States and other regions. Following the Cold War, America continued to grow from strength to strength. In the 1990s its economy was commendably and successfully restructured. Also growing in significant progression alongside its economy is its armed forces and global recognition as a state to reckon with. By the turn of the millennium, Americaââ¬â¢s economic and military growth had wedged a seemingly insurmountable gulf between itself and other major players in world politics. While the late 90s saw Japanââ¬â¢s economy grow by 9 per cent, the European Union altogether by 15 per cent, American economy grew by a significant 27 per cent, nearly doubling and tripling that of the other regions.[5] This did not go unnoticed by the rest of the world. In fact literally doffing his hat to the United States in a speech in Paris (1999), the French Foreign Minister, Hubert Vedrine, observed that the growth witnessed by the world in America ââ¬Å"is not comparable in terms of power and influence to anything known in modern historyâ⬠[6] Americaââ¬â¢s devotion to its armed forces can by no means be ignored. America boasts an army that is better equipped and out numbers the armed troops of well over 14 countries put together. There are training grounds for the United States army in well over 40 locations world wide. This automatically means that when another weaker or slightly less advantageous state envisages itself in trouble, the first point of call for protection and assistance, when and if necessary is the United States of America. In its usual confidential, bordering on arrogant manner Americaââ¬â¢s National Security Strategy declared to the world that their forces will be strong enough to dissuade potential adversaries/would-be challengers from pursuing a military build-up in hopes of surpassing, or even remotely equalling, the power of the United States.[7] It is not impossible or even unthinkable for America to utilise its military capacity to impose its policies on other states in different regions of the world. It has been observed already that America spends on its armed forces more than the next fourteen countries combined and that the U.S. military expenditures will shortly be equal to the rest of the world combined.[8] Another scholar of repute, Paul Kennedy, also surmised that it is already the case that all the other navies in the world combined could not dent American maritime supremacy.[9] Still on the issue of security, expressing his own opinion and an opinion apparently shared by many others world over, Barry Possen has suggested that the United Statesââ¬â¢ command of the sea, space, and air forces is the ââ¬Ëkey military enabler of the U.S. global power positionââ¬â¢.[10] Assuming its economic growth remains as healthy as it has been since the 90s, the concentration of world military power may continue for several decades yet. Even at the current level of U.S. capabilities, it is the general view that ââ¬Ëthe United States can shoulder the burden of maint aining global security without much help from Europeââ¬â¢ or the rest of the world for that matter.[11] It begins to appear obvious that perhaps Americaââ¬â¢s initial support for multilateralism in international trade and globalisation was borne of a grander strategic move to acquire and retain more power while legitimately promoting international reliance of one state on the other, one region on others for support, growth and assistance. A quick glimpse at major historical turning points such as 1919, the end of World War II in 1945 and the period immediately after the Cold War all but confirms this logic. It would appear that America promoted multilateralism in such a strategic way so as to signal restraint and commitment from other states.[12] This precipitated the acquisition of support, if not actual trust, acquiescence and cooperation of other weaker states. But surely when one country is placed so much higher than others in the case of all animals are equal but some more than others, there naturally arises the problem of balance of power or even equality before the law. What the majority of member states may attempt with the United Nations and come out facing adverse repercussions for is the same thing the United States will not only attempt but carry out and come out smelling of roses. For the sake of this discussion, should one be given to a flight of fancy however fleetingly and imagine or a moment that a member state such as Ghana or Nigeria threatens the use of force against Cameroon and declares to the world that the same will be effected whether or not the United Nations and indeed the world approves of its actions. At the very least, economic sanctions will immediately be placed on such a country. However in the name and under the umbrella of 9/11 it would appear that America is permitted to do and undo whatever catches its fancy and of course promotes its economic as well as military growth. How else can one begin to explain the issue of thousands held prisoner at the US military operated prison and indeed a recreation of Camp Delta, Guantanamo Bay, for years with neither charges nor trial in the name of fighting terrorism? America claims not to have jurisdiction in Cuba to try these prisoners yet it has the power and the authority to imprison them in Guantanamo Bay. What, one is right to ask, happened to the universal (at least in democratic states) ââ¬Ëwrit of habeas corpusââ¬â¢? Another example of Americaââ¬â¢s marked shift from multilateralism to unilateralism and establishing itself as a super power above the rest of the world is again glimpsed shortly after the controversial invasion of Iraq in 2003, when America was quick to submit allegations against North Korea as well as Iran for also becoming threats to the international community as they were manufacturing nuclear weapons. In an ironical twist however, in 1998, Japan, perhaps once one of Americaââ¬â¢s closest allies, was reportedly furious with America when its officials unilaterally decided that funding for North Korean Nuclear reactors was to con tinue despite Japanââ¬â¢s complaints that North Korea was firing missile over its territory.[13] What then can possibly put an end to Americaââ¬â¢s domination of the international stage and its rise towards a super power of hegemonic characteristics? It has been established that the two most important factors in the growth of any nation; its economy and defence, remain the two areas where America continues to excel and prosper rendering it even more of a force to reckon with by other nations of the world. Is it then any wonder that many are of the school of thought that it is only a matter of time before America seeks to completely dominate the world and by so doing, simply crush out weaker states of the world. It is enough to alert the world that more than any other administration before it, the Bush administration is significantly departing from materialism especially on agreements dealing with arms control and proliferation. Multilateralism, as Ikenberryââ¬â¢s book posed the debate, does indeed seem to be on the decline in Americaââ¬â¢s policy and political stance. I t has become to America a selective game where multilateralism is embraced when it adds to the muscles in its already bulky biceps and unilateralism at every other turn. As America continues to systematically depart from multilateralism and promote more unilateralism in its foreign policies and decisions on security affairs affecting not only its boundaries (assuming such a word as ââ¬Ëboundaryââ¬â¢ exists in the American dictionary) but also spread ashore to other nations of the world, the world may very well be moving rather rapidly towards the final unravelling of America as a hegemonic nation. What and who in the world can then possibly challenge Americaââ¬â¢s hegemony? Surely it would take a large scale war or a crucial global economic crisis to challenge or even come close to threatening Americaââ¬â¢s hegemony. While this might be very well put and even precise in theory, surely either option will definitely have grave repercussions on the international community. However, Ikenberry argues in his book, ââ¬ËAmerica Unrivalledââ¬â¢, that there are limits to the United Statesââ¬â¢ hegemony such as it stands at the moment. He is of the opinion that a complete hegemonic order would require not just preponderant capabilities but also some significant degree of acquiescence on the part of other states, especially the other major players in world politics for the maintenance of such order. Following the Cold war, America acquired the support and cooperation of one of the major players in that region, Japan. Japan was once Americaââ¬â¢s closest ally as a result of this, however even Japan is becoming resentful, as presumably are the rest of the world, at Americaââ¬â¢s increased unilateralism (as in the North Korean case mentioned above) and the selective choice of multilateralism only when it favours the nation in one form of economic or security purpose or the other. It is therefore not impossible that other major players in the world, on examining their alternatives on how to best rid America of its hegemonic status and by so doing release the unsuspecting world from American domination, may very well challenge its hegemonic position. Capitalising on the regional and international relationships once promoted by America, the other major super powers in the Asian Region and the European Union could orchestrate an over throw of Americaââ¬â¢s position as an hegemonic state or at the very least challenge the same. Not ignoring the power and importance of smaller or weaker states however, they would quite naturally also have to be involved. This however would be an all scale war, the magnitude, repercussion and significance of which will tremble the world perhaps more than every previous wars put together! Any would-be hegemonic challenger would most naturally have already arrived at the very same conclusion. Apart from the fact that every single one of these would-be challengers rely on the United States for one as pect of its sustenance or the other, it would take a lot of consideration, meetings, strategising and concrete persuasion to convince every member state of the necessity of such a global war. With its present and ever growing resources both at home and abroad, it is therefore only a matter of time before America, at whom the war is intended, becomes aware of the plans and builds up enough or adequate defence against the same. While it is not impossible that several nations of the world may come together and challenge Americaââ¬â¢s build up to hegemony, to say that the world may never recover from such a large scale war may perhaps be the understatement of the existence of mankind. In a brief state of fantasy, were one to assume that this large scale war does take place and does remove America from the pinnacle of power it currently occupies, there is no telling how many decades or even centuries it would take to rebuild a world of international trade and globalisation. Another da nger in that is another country seizing the opportunity and rising very rapidly to the throne of hegemony, in this instance however, a country not so democratically inclined as America, for instance, China. The world as we know it now may cease to exist as a result of such a war. It is now 2008 yet traces of the Second World War still remain evident in some areas in the Eastern part of Germany as one imagines it does in other affected parts of the world. If the argument here is then that a full blown war against Americaââ¬â¢s hegemony may do the world greater harm than good, what then can possibly stop Americaââ¬â¢s climb to the top of the world? As mentioned earlier, the strength of any nation lies in its economic as well as military growth. One, quite naturally, is not devoid of the other however as training camps, gears and facilities will be difficult to procure without a booming economy. Should the world then experience a global economic crisis, the like of which it is yet to ever experience, perhaps this will in a way also bring America to the same level as other countries or at least less dominant? In this present day, at least the European Union and America are experiencing an economic crisis that has been likened to the worst in many decades till date. The Great Britainââ¬â¢s Royal Bank of Scotland recently announced that the country is indeed in recession. China and Japan have also reported major decline in sales and poor performances on their Wall Street equivalent. Japan has actually announced to the world, like Great Britain, that it is indeed in the middle of a torrid recession. While this economic crisis may very well be unpleasant and indeed wrecking a lot of harm on the economy of the countries involved, it will take much more than this to cripple America or to reduce its hegemonic status. Even at this point in time, the US Dollar continues to rise against the British Pound and the Euro. Should the world experience an economic crisis of such negative significance that all the major states as well as even the ones considered smaller and weaker are effectively affected, Americaââ¬â¢s hegemony, in my humble opinion, will most certainly be thoroughly challenged. This will be brought about by the fact that the international community in a bid to survive and revert to some semblance of normality will be forced to depend one on the other for that means to survival, America included. Such a scenario will almost take the world back in history to the early days when the advantages of globalisation and inter dependence of nations on one another was first discovered. Such an economic crisis w ill render it almost impossible for states to continue to concentrate on military training and equipments. One should imagine that nations will be more concerned with the immediate welfare of their people such as housing, medical care and social services as undoubtedly unemployment will rise astronomically in the face of an economic crisis of any significant magnitude. From everything hereinabove appearing and the examination of different (learned) opinions as well as scenarios, it is therefore perhaps appropriate to conclude by agreeing with the debate that should a full blown war orchestrated by would-be challengers of Americaââ¬â¢s hegemonic state fail, surely an economic crisis of significant global scale will not only challenge but also probably, however temporarily, bring an end to Americaââ¬â¢s hegemony. America will be forced to revert to the multilateralism way of international politics and to abandon unilateralism in a bid to promote globalisation and a closer knit international community. Bibliography John, G. Ikenberry, ââ¬ËAmerica Unrivalled: The Future of the Balance of Powerââ¬â¢ (Cornell University Press, 2002) John, Ikenberry, ââ¬ËIs American Multilateralism in Decline?ââ¬â¢ Perspectives on Politics 1:3 (2003) ââ¬ËHegemony or Empireââ¬â¢ The Redefinition of US Power under George W. Bush, Edited by Charles-Philippe David and David Grondin (2006) Richard Little, Michael Smith, ââ¬ËPerspectives on World Politicsââ¬â¢ Ikenberry, G. John, ââ¬ËLiberalism and Empire: Logics of Order In The American Unipolar Ageââ¬â¢, Review of International Studies (2004) Stephen M. Walt, ââ¬ËKeeping the World ââ¬Å"Off-Balanceâ⬠: Self-Restraint and U.S. Foreign Policyââ¬â¢, in Ikenberry, America Unrivalled, pp. 121-154. Charles A. Kupchan, ââ¬ËHollow Hegemony or Stable Multipolarity?ââ¬â¢, in G. John Ikenberry (ed.), America Unrivalled: The Future of the Balance of Power (Ithaca, NY: Cornell University Press, 2002), p. 72. According to Kupchan, the European Union is emerging as the main competitor of the United States in a future multipolar international system. Whither American Power? David Held and Mathias Koenig-Archibugi Published in: American Power in the Twentieth-First Century, edited by David Held and Mathias Koenig-Archibugi, Cambridge: Polity Press, 2004. Kennedy, Paul, ââ¬ËThe Rise and Fall of the Great Powersââ¬â¢ 1987 Footnotes [1] David Held and Mathias Koenig-Archibugi, ââ¬ËWhither American Power?ââ¬â¢ In American Power in the Twentieth-First Century [2] G. John, Ikenberry ââ¬ËAmerica Unrivalledââ¬â¢ Pp 1 [3] Quoted in Balz 2003, A1 [4] Purdum 2002., 1 [5] Ikenberry [6] Quoted in Craig R. Whitney, ââ¬ËNATO at 50ââ¬â¢ With Nations at Odds, Is It A Misalliance? New York Times 2, 1999 [7] President of the United States, The National Security Strategy of the United States of America (Washington D.C.: White House, September 2002), p. 30. [8] G. John Ikenberry [9] Paul Kennedy, ââ¬ËThe Greatest Superpower Everââ¬â¢, New Perspectives Quarterly, 19 (2002). [10] Barry R. Posen, ââ¬ËCommand of the Commons: The Military Foundation of U.S. Hegemonyââ¬â¢, International Security, 28 (2003), pp. 5-46, p. 8. [11] On the durability of U.S. supremacy see William C. Wohlforth, ââ¬ËThe Stability of a Unipolar Worldââ¬â¢, International Security, 24 (1999), pp. 5ââ¬â41. [12] Argument was developed by Ikenberry 2001 [13] Marshall and Mann, ââ¬ËGoodwill Towards the United States is Dwindling Globallyââ¬â¢
Friday, January 17, 2020
A Rebuttal to Charles Darwinââ¬â¢s Theory of Evolution Essay
If thereââ¬â¢s one thing that would make the highly religious person infuriated, that one thing would probably be the Theory of Evolution by Charles Darwin. Quite a rugged assumption but a little true nonetheless. à à à à à à à à à à à Religion, as a social institution, derives much of its foundations on several bearings; the most important being the Theory of Creationism. Under this theory (or belief?), humanity, the universe and life in general were all created in their original form by an Almighty Being or by an Inevitable Force. Usually, this refers to the deity or deities of a certain communeââ¬â¢s religious beliefs. à à à à à à à à à à à The Theory of Evolution, on the other hand, portends that humanity, or life itself, emerged through a series of trial and errors wherein the fittest species among all others emerged victorious over natureââ¬â¢s anarchic character. The idea of a certain animal ââ¬Å"branching offâ⬠from its original species to produce a different kind of breed is what the Theory of Evolution calls Natural Selection. By Natural Selection, the theory explains that certain unique features and/or characteristics possessed by a select few would inevitably allow them/it to have a higher chance of survival against those who do possess none of the same features and/or characteristics. For instance, assume that a species of birds uncannily produce a hatchling that possess a rather larger and longer beak than its original counterparts. By having this feature, the bird is now able to catch and eat more food as compared to the other birds of the same species that possess shorter and smaller (otherwise, ââ¬Å"normalâ⬠) beaks. The theory claims that once this unique bird reproduces its own hatchlings, the unique features and characteristics it possessed would most likely be passed on; thus, eventually perpetuating the idea of the introduction of a different kind of species of birds that possess longer and larger beaks. And since having longer and larger beaks enables these birds (those which possess it) to catch, gather and eat more food, the natural balance of the food chain is automatically shifted unequally. Being that the birds with the shorter and smaller beaks will always be outcompeted by the new species with longer and larger beaks, the original species (otherwise, ââ¬Å"oldâ⬠) will probably end up being extinct. This idea is further supported by the theoryââ¬â¢s most famous notion, ââ¬Å"The Survival of the Fittestâ⬠. In the simplest sense, the theory states that those who are genetically ââ¬Å"strongâ⬠as compared to the others will be the ones who will survive. As applied in the case of the birds, it was the newly developed species which seemed to be the ââ¬Å"fittestâ⬠against their original counterparts. As such, their survival was ensured; branching off into a higher level of species and eliminating the rather ââ¬Å"weakâ⬠species. à à à à à à à à à à à Understanding the Theory of Evolution in its general sense is not an easy task. For one thing, the theory itself is now including several different kinds of supposed facts to support Charles Darwinââ¬â¢s original theory (now referred to as Neo-Darwinism). Furthermore, its underlying principles and hypotheses do not lie alone on biology but also on genetics and others. à à à à à à à à à à à As if understanding the theory is hard enough, debunking the theory is an even harder task. Supporters of the Creationist Theory will always be under attack by the supporters of the Evolutionist Theory. This unbelievable dedication of faith and belief towards the Theory of Evolution is considered an awesome phenomenon similar to that of Catholicismââ¬â¢s rise as a predominant religion in the late Middle Ages. In other words, the Theory itself, ironically, is now becoming a religion in many ways. Henceforth, as hard as it is to debunk the Creationist Theory, the same will now be likewise to the Evolutionist Theory. à à à à à à à à à à à Going back to the theoryââ¬â¢s initial stages, however, it would seem rather easy to refute Charles Darwinââ¬â¢s findings. Compared to the status of the Theory of Evolution at present, the status of Darwinââ¬â¢s theory in the past (as he presented it) remained attractive to questions of veracity and factuality. For many, though it seemed credible, it was also contestable. à à à à à à à à à à à First of all, Darwinââ¬â¢s Theory does not explain fully the derivation and/or origins of humankind as deduced from that of primates. Sure, there are many similarities existing between humans and Apes. But the Theory never really explained why or how humankind technically ââ¬Å"branched offâ⬠from the original species of primates. Even if we use the notion of ââ¬Å"Survival of the Fittestâ⬠, none of the pieces still seem to fit. à à à à à à à à à à à For instance, let us assume that a group of Chimpanzees produce an offspring that is clearly ââ¬Å"smarterâ⬠than the rest of the clan. Now, that offspring immediately becomes the ââ¬Å"fittestâ⬠among them. Still, it would be somehow impossible to deduce that this special primate would reproduce a couple more uniquely smart primates that would eventually start an hereditary cycle; causing the almost ââ¬Å"accidentalâ⬠creation of a new species. Even if that somehow became possible over a course of billions of years, it would still not explain how humankind developed a sense of wearing clothes, cook their food and establish a unique language that is clearly different to that of their original counterparts. Furthermore, some possible explanations regarding the loss of bodily hair, the shortening of the mandibles and other such anatomic inquiries remain in question for the theory. à à à à à à à à à à à Second, the development of a certain organ was never fully explained by the great man himself. Take a look at birds, for instance. The development of birds, from land creatures to fowls of the air, is clearly unsupported by the theory. As the theory explains, evolution occurs overtime through a course of millions of years. If so, how did the development of wings benefit the earliest species of birds? Imagine an ancient ââ¬Å"birdâ⬠that started growing small ââ¬Å"wingsâ⬠. Of course, since these are small, it cannot benefit the animal in any way other than be a burden. As such, the status of ââ¬Å"fittestâ⬠is automatically removed. Ultimately, the species ââ¬â who were just starting to develop their own wings ââ¬â wouldââ¬â¢ve become extinct and lost to the supposed ââ¬Å"survivalâ⬠. On the other hand, looking at the picture the other way around, it seems almost impossible that a group of land creatures would suddenly hatch (or give birth) to an hatchling that naturally or immediately possess wings ââ¬â it would just not make sense. For the Theory of Evolution ââ¬â and the notion of ââ¬Å"Survival of the Fittestâ⬠ââ¬â to work, organs and other characteristics must be present at once and not in a continual process that would take billions of years. à à à à à à à à à à à Finally, the Theory of Evolution never really explained how the complex development of the human mind occurred. Just how exactly did human beings develop a sense of rationalization? How did they come to have a sense of beauty? How about a sense of free will? If humans with mental disabilities continue to breed for thousands of years, would the existence of a unique race of mentally disabled men and women become a possibility? How did evolution come to develop a mind that is so complex and comprehensive as compared to other creatures? These are just some of the questions that truly pose a great threat to the Theory of Evolution (during Darwinââ¬â¢s time at least). à à à à à à à à à à à When Charles Darwin presented his Theory to the Academic Community, the Theory of Evolution was not as strong as it was today. By all means, it was easily contestable. After a couple of decades, however, the Theory gained so many supporters that even the Scientific Community now almost completely adheres to its principles. à à à à à à à à à à à Until the adherents of the Theory of Evolution do not find concrete answers to some of the questions posed above, the theory will forever only remain as such ââ¬â a theory. Similarly, the Creationist Theory also possesses the same dilemma. Clearly, that is one reason why both theories ââ¬â despite after several decades ââ¬â still continue to battle each other out for supremacy (which is ironically a pun of the notion ââ¬Å"Survival of the Fittestâ⬠itself). Cited Sources: Campbell, J. A. and Meyer, S. C. (2005) Evolution: Debate it. USA Today December 5, 2007 from Dean, C. (2005) Opting Out in the Debate on Evolution. The New York Times December 5, 2007 from Futuyma, D. J. (2005). Evolution. Sunderland, Massachusetts: Sinauer Associates, Inc. Scott, E. C. and Branch, G. (2005) Evolution: Just Teach it. USA Today December 5, 2007 from Smith, J. M. (1993) The Theory of Evolution. Cambridge University Press Weiss, R. and Brown, D. (2005) New Analyses Bolster Central Tenets of Evolution Theory Washington Post December 5, 2007 from Ã
Thursday, January 9, 2020
Accounting Essay Example Pdf - Free Essay Example
Sample details Pages: 13 Words: 3982 Downloads: 1 Date added: 2017/06/26 Category Business Essay Type Case study Did you like this example? Caterpillars International Strategy The domain of international business theory contains an overwhelming array of perspectives and dimensions. International business (IB) definitions and assumptions are as diverse and ambiguous as their sources. Approaches to IB have established the fundamental perspectives as being global or organisational, but the content of these areas are immense. Donââ¬â¢t waste time! Our writers will create an original "Accounting Essay Example Pdf" essay for you Create order The development of the global approach, or more correctly labelled as ââ¬Ëmacro (Rugman and Hodgetts 2000. pp. 24), has recently evolved in the 1990s as a result of the mixed organisational orientated approaches, otherwise labelled as ââ¬Ëmicro. This discussion takes the form of analysing Caterpillar in the international business arena by highlighting issues and theories that relate initially to the wider macro environment, then specifically towards Caterpillar as an organisation. The selected definition of IB for the basis of this discussion has been taken from an opening statement. This being ââ¬Ëtransactions taking place across national boarders (Rugman and Hodgetts 2000 pp. 5). This simple statement is considered sufficient to incorporate its entirety, however the recognition of the multi dimensional perspectives and their interrelatedness needs to be comprehended. The aim of this discussion is to explain the international strategy of Caterpillar by using its co ntext as a platform for applying relevant literature. Caterpillar history For clarity reasons it is considered necessary to offer a brief introduction to Caterpillar. They have been established in the construction equipment industry for over 75 years and recorded $20.45 billion turnover in 2001 (annual report 2001). Their main products are divided as machinery with 58% of sales, engines with 33%, and financial products with 9%. The mission statement of Caterpillar is to ââ¬Ëbe the global leader in customer value; this clearly indicates the attention to a high quality of service as being their competitive edge. This service is integrated through a sophisticated network of 1840 locations across all six continents, of these; Caterpillar has foreign direct investment (FDI) in 255 locations. The corporate strategy for the future is to bolster their leadership in the market through initiatives labelled by Data monitor (2003) and the annual report (2001) as being ââ¬Ëprofitable growth, championing continuous quality improvement, aggressively reducin g costs, and developing an integrated e-business. In attempting to understand the reality of Caterpillars strategy, theories are applied to offer explanations behind the corporate publishings. The critical success factors associated with Caterpillar are primarily their h3 brand; this is then supported by network and service capabilities that represent reliability and consistency. Caterpillar is also renowned for product innovation; they have continually innovated which has contributed to the brand and reputation. The international market responds to positive brand vales because the nature of the industry requires trust and relationships. The macro factors present are unlimited in the current dynamic world but the important perspectives are structured as political, economic, technological and social. The elements of these perspectives are selected according to the importance for Caterpillar; therefore they are discussed in this context with reference to relevant literature . The political climate is continuously being developed and negotiated amongst the nationalities that exercise power. The current instabilities are dominated by the differences in opinion over the Palestine conflict and the Iraqi situation. As Caterpillar is active across the globe, its operations would need to be sensitively applied so that the local governments are appreciated. The situation of Caterpillar is slightly precarious due to the fact that in political terms, the Americans are seen as the bullying nation, which is a mentality that ideally Caterpillar would like to distance themselves from. On the other hand, the American political objective may provide an opportunity as reconstruction and other Caterpillar products may experience an increase in demand as a result of the speculated war (eg. tank engines and construction products). This circumstance for Caterpillar represents a relations nightmare because in the home country it would need to communicate support in line with the public opinion, and in the host countries it may benefit from addressing the local perspective. E.g. the activities in China would be adjusted as to address the sensitive issues to ensure sustainability, rather than inhibiting ill feelings from enforcing the ââ¬ËAmerican way. Global political situations are important to Caterpillar because they could gain first mover advantage by moving into recently opened markets such as China. The extent that a region is privatised or Lasses-faire is of interest to Caterpillar because it would aid the process of negotiating a relationship. It would be beneficial for Caterpillar to tailor management to either foreign governments or foreign organisations. IB massively influences the macroeconomic environment. The recent conception is that IB is predominately concentrated around three regions rather than integrating the world. This can be seen through the development of trade blocs that encourages IB amongst its members. The most significant research into this economic environment highlights the triad perspective as being dominant. The triad perspective as explained by Rugman (2001) states that the world economy and FDI is based around Europe, America and Japan, this also extends to FDI clusters, namely Eastern Europe, Latin America and the Pacific rim, that are supported by the dominant triad member. The evolution of this economic environment has matured into a three way economic power base that contributes significantly to the adopted international strategy. The conclusions drawn from Rugmans (2001) research appear to dismiss the argument of a global strategy because an organisation like Caterpillar would only have to accommodate the triad perspectives as opposed to incorporating worldwide responsiveness. The analysis of the macroeconomic environment also includes a consideration of the currency markets, and in particular the value of the US dollar against Caterpillars large foreign inv estments. Caterpillars largest FDI is in Japan; therefore the continual decline in the economy influenced the strategic decision to operate financially in the Japanese market instead of exposing themselves to exchange rate risk. In theoretical terms this strategic decision is known as ââ¬Ëcurrency diversification (Rugman Hogetts 2000 pp. 203). On the other hand Caterpillar has a favourable impact from the sales in other currencies, primarily trading with Euros and the Australian Dollar against the weaker US Dollar. The macro social issues relevant to Caterpillar are identified as originating from the animosity felt by the east towards the west. These issues include the resistance of the east in adopting the ââ¬Ëwestern way, this then extends into the business sector where an international business strategy involves a high degree of managing through different social contexts. This is supported by Gesteland (1999 pp. 27) who demonstrates the concept of ââ¬Ëdeal firs t or relationship first. A relevant example of this in terms of Caterpillar is highlighted by Peppas (2002. pp. 52), which suggests that ââ¬Ëdifferences were found in terms of attitude towards a code of ethics. Caterpillar places a heavy bias towards its ââ¬Ëcode of conduct, but is this sufficient to address social issues in international business. At present these publications are not enough, as pointed out by Mokhiber and Weissman (2002 pp. 12). This opinion labelled Caterpillar as a ââ¬Ëbad apple because its ââ¬ËD-9 bulldozer is used by Israeli military to carry out its programme of ââ¬Ëhome destruction, this is directly inconsistent with the ââ¬Ëcode of conduct (2000 pp. 2) which states that it ââ¬Ëuses our strength and resources to improve, and in some cases rebuild, the lives of our neighbours. Another important social issue involves the rate of investment into the developing world. The recent trend has been to transfer manufacturing to developing countries, which has stimulated construction and booming economies. This suggests that the international market place is dynamic and evolving, which should influence Caterpillar to adapt in emerging markets and control in mature ones. This idea is also interrelated with the triad perspective, it could be advised that Caterpillar enter the clusters with triad adapted strategies, then encourage segmented alterations in response to market conditions. With this idea incorporated within the strategy, it would combine the economies of scale benefits through behind the scenes standardisation, and benefit from local responsiveness by empowering each of the triad bases. The technological environment is particularly significant for Caterpillar to consider. Not only does Caterpillar have to continually improve the current products but it would also be beneficial to innovate new products to overcome original construction problems. This is highlighting the need to be more advanced than the competition, when Caterpillar enters a market it must ensure that the product offerings are compatible with the geological and business needs. For example track driven vehicles are more appropriate than tyres for working on loose sand. Caterpillar must also undertake a broad view of technological developments in order to identify issues such as alternative power, through to advantages identified in the logistical operation. A recent technological innovation has been the Advanced Combustion Emission Reduction Technology (ACERT); in short this is a more environmentally friendly engine. Along with product development and product innovation, Caterpillar must also be aware of opportunities to diversify. The most recent example of this is where Caterpillar introduced financial products to encourage a struggling economy to buy Caterpillar products. Caterpillars international strategy operates within an environment that is affected by the macro factors. These factors are recogn ised in a global context and are normally uncontrollable; therefore their management involves negotiations rather than influencing and controlling. The strategic decisions that affect the effectiveness of Caterpillar are mainly catered towards the micro level factors. Meaning the micro level factors are at work within wider macro issues. The discussion here extends to the most important micro factors that Caterpillar must consider when structuring their international strategy. The factors in brief are competition, structure and logistics, culture, and marketing. Each of these factors is discussed using relevant theories in the context of Caterpillar and its environment. Competition within the construction equipment industry (CEI) can be described using the industry life cycle and the five forces analysis (Porter 1985). The CEI is arguably beginning to mature internationally because the competition has been shaken down to leave only 27 organisations that are considered major competitors across all product areas (Datamontior 2003 pp. 13). This information excludes the financial products because these are largely dependent on the machines and engines. Due to the maturing nature of the industry, it implies that the customers will be repeat customers as opposed to new. This increases the value of the relationship and importance of having a h3 brand. Caterpillars position is one of leadership through product quality and support servicing; this directly builds the good perception of Caterpillar in the minds of the customers. The components of the five forces model (Porter 1985) illustrate the competitive environment of the CEI. The rivalry amongst existing firms reflects the increasingly internationalised nature of the market. The basis of competition is held in the ability to offer a broad range of equipment, and build confidence through meeting changing needs. The strategy employed by Caterpillar involves creating extra value by offering an extens ive range with a supporting service that provides an excuse for premium prices. The main competitors for the heavy equipment market include Komatsu Ltd, Kubota Corporation and Mitsubishi Heavy Industries Ltd. These are the most powerful competitors whose strategy also includes creating value and charging premium prices. It is noted that two triad areas, namely Japan and the US, predominantly contest the makeup of this market. Although it is conceded that European competitors are significant in the industries architecture. To some extent, the internationalisation of the industry has provided a situation that can arguably be labelled as an oligopoly (Grant 2002 pp. 71), meaning there are a few organisations that are powerful enough to be deemed sustainable. Again this is more evidence that the industry is maturing, therefore influencing Caterpillars strategic decisions. The other main product of Caterpillar is their engine. The main competitors within this industry are identi fied, amongst others, as Rolls Royce, Ford Motor Company and Hino Motors Ltd. These competitors are of similar size and employ a strategy of offering reliability and supporting services. However it is noted that Ford and Hino Motors do cut costs and charge cheaper prices, but they still maintain the view of being the leaders. Again the geographical base of these organisations supports the triad perspective introduced by Rugman (2001). The basis of competition is the development of quality in terms of reliability and consistency; it is also an advantageous position to offer a wide range in products. Caterpillar currently offers around twenty different kinds of engine (Caterpillar Product Line 2002), there are also many variances that can be offered within these product ranges. Caterpillar is also recognised for its detailed service; an example of this is that they had temporary power established at ground zero hours after the September 11 events. Rugman (2001) demonstrates o rganisational structure theory as a series of alternative options. This approach offers a clear indication of strategies available, however it is implied that the alternatives are one-way avenues, when in fact a holistic view of organisational structure would include the facility of a hybrid approach. A significant limitation to Rugmans (2001) approach is that it failed to recognise the decision makers predisposition. Whether an organisation is categorised as either ethnocentric, polycentric, regiocentric, or geocentric (Pearlmutter 2001, Rugman 2001) would influence the extent to which it could execute a structure. Can a totally integrated transnational network structure be effective if extreme ethnocentric directors excessively control it? The majority Caterpillars board of directors are American, but the boards predisposition is known only by evidence in the companys structure. Caterpillars operations include a dealer network that is claimed to be an important competitive advantage, the dealer network comprises of relationships with local outlets totally integrated with private locations involving large amounts of FDI. This is arguably grouped as a ââ¬Ëtransnational network structure, but it obviously operates to an extent with governance from the home country. To maximise efficiencies and quality of service then the structure may need to consider the triad perspective mentioned earlier. The strategy could involve different approaches relating to sensitivity, but also incorporate the logistical economies of scale and scope. In addition to the ââ¬Ëtransnational network structure, Caterpillar is pursuing alliances, most recently with Ford. The aim for this partnership is to develop supply chain software based on their experience in the vehicle parts market. The American perspective dominates this strategic decision concerning the structure of Caterpillar; therefore if the alliance proves profitable then they are likely to integrate it uni versally. However this perspective may not be profitable in other cultures, which suggests that different locations are equipped to decide what to integrate and how. Current research by Miller and OLeary (2002) evaluated the performance of Caterpillar factories. The conclusions supported the argument of common manufacturing recommendations, these being the trend of computerisation, multi skilling, and the encouragement of an emergent approach. This new factory architecture represents the absence of control, this may be beneficial in the developed American labour market, but this would not be advisable in bureaucratic cultures such as the Chinese. Further American research is provided by Rao, Scheller-wolf, and Tayur (2000), here they intended to make recommendations for the development of a rapid response supply chain for the compact equipment. These recommendations included background theories such as the network theory, inventory theory and simulation theory, to reason th eir novel features like the ââ¬Ëduel nodes of supply, which is to benefit dealer replenishment and customer demand in terms of service speed. The point stressed from such articles is that they are only valid to the specific environment, in terms of structuring internationally then these issues would need to be addressed in each geographical location, and this would be unique in each case. Therefore the construction of an international structure is dependent on the location it chooses. Internally Caterpillar has developed a universal approach of how to operate. They have labelled this 6 Sigma. ââ¬Ë6 Sigma is about success ââ¬â about being better than weve ever been. Its about getting there faster (www.caterpillar.com/about), the fact that Caterpillar implement this universally suggests that there is an ethnocentric orientation towards the international management. The micro factor of international culture is a consideration that involves negotiation in order for an organisation to be efficient. Organisational culture on the international stage can be viewed as an extension from the four primary attitudes outlined earlier (Perlmutter 2001, Rugman 2001), these attitudes govern the perceptions of how a company organises its activities. Rugmans (2001) ideas outline the important issues of culture as being language, religion, values and attitudes, manners and customs, material elements, aesthetics, education and social institutions. Although the attitudes of the organisations decision makers are catered for, it is felt that this is the starting point when evaluating an international culture. The unconscious attitude of decision makers will directly affect the extent to which they can implement a strategy such as ââ¬Ëpolycentric. For a pure international strategy, not only do the cultural differences need to be understood, but also the drivers that influence the culture. This opinion is supported by research undertaken by Gulbro and Her big (1999), this conclusion states that ââ¬Ëfirms must be better prepared, must improve their knowledge of the other side and its culture. This implies that cultural management is a process of negotiations rather than the encouragement of a ââ¬Ëone best way approach. Gulbro and Herbig (1999) emphasised the need for organisations to learn from studies that show how different cultures are, therefore this would provide the resources to negotiate effectively the desired business activities. Research into Australian construction companies in Malaysia by McGrath-Champ and Carter (2001 pp. 20) found that ââ¬ËHR policies and corporate culture are used as marketing devices, not solely for management strategy. The theory formed from this research highlighted the fact that IB in developing economies needs to provide better insights into the role of the domestic market. It is argued that international business ââ¬Ëis not simply driven by cost or quality but the success the tra nsactions it has within a host country (McGrath-Champ and Carter 2001 pp.). Caterpillars use of internal and external marketing attempts to communicate culturally consistent messages. Caterpillar regularly produces documents and articles such as the ââ¬Ëcode of conduct, ââ¬Ëcorporate support programs, a magazine, and network and product information. This is evidence that Caterpillar attempts to interact with stakeholders such as the communities, customers, dealers and employees. Another suggestion that Caterpillar manages culture effectively is the resolution of the six-year strike with the United Auto Workers (UAW). However it must be highlighted that it wasnt effective management that created the dispute, or dragged it along for six years, but since its settlement Caterpillar has recorded increasing profits year on year. However an argued reason for this maybe the weak dollar and h3 growth abroad, therefore these markets are in earlier in their life cycles which wo uld suggests that problems may arise in the future. Hopefully experience shall instruct Caterpillar to observe the problems at an early stage. Ba Banutu-Gomez (2002) provides an indication of how to manage culture in developing countries. His recommendation implies that the management of international culture ââ¬Ërequires a h3 commitment to a high standard of conduct. Managing in this kind of situation requires being able to design and implement a bottom up system, which involves a two-way exchange. (Ba Banutu-Gomez 2002 pp.39). Similar to Rugmans (2001) highlighted issues; Hofstede (1991) identified four dimensions of work related cultural differences, namely ââ¬Ëpower distance, uncertainty avoidance, individualismcollectivism, and masculinityfemininity. This research is an extensive piece based on questionnaires; it provides validity in terms of its thoroughness and its aim is to ââ¬Ëhelp managers to identify how to create global competitiveness from diversity (H oeklin 1994). Caterpillars cultural situation involves the problematic issue of combining the culturally diverse network into an efficient information sharing system. The documentation to signify cultural attention is at a thin level; the vast majority of the corporate marketing is of a very directive nature. For example ââ¬Ëwe are placing renewed emphasis on becoming a continual learning organisation at Caterpillar, using 6 sigma as the way we work (Annual Report 2001 pp. 5). The 6 sigma itself is a continuous improvement programme designed by Americans to implement internationally, this obviously does not recognise the needs to negotiate and exchange for maximum productivity and innovation, instead of enforcing a single way. The microenvironment involving marketing tactics is fairly consistent throughout its international markets. The products that are offered are broadly the same apart from simple language adaptations and alike. The important international marketing issue is the content of the supporting service; this would need to communicate in a way that is consistent with local perceptions. The constant problem for Caterpillar is learning what to communicate and where, therefore it is obvious that it should adopt a ââ¬Ëpolycentric approach as identified earlier. For implementing such a strategy techniques such as Yip and Masdens (1996) ââ¬ËGlobal account management have been proclaimed. Benefits associated with this technique include: Establishing links across regions that carry over time to build institutional relationships Good service leading to reputable benefits that can be transferred to new strategic regions or industries. (Yip and Marsden 1996 pp. 38) There is evidence of this within Caterpillars strategy because firstly, they produce ââ¬Ësupplier communications guidelines. This maybe against cultural theory but nevertheless they are an attempt to establish a link within regions. The strength of the Caterpillar brand has been utilised by extending it to products associated with the core brand values, such as heavy footwear, clothing and watches. This strategy is confirmed with Chernatory, Halliburton, Bernath (1995 pp.20), where their approach ââ¬Ëargued that international branding should be based on the core essence of the brand, in terms of its added values and positioning. However it must be recognised that the associated values may need to be refined when marketing in more sensitive markets. With the product being largely standardised and economies of scale being utilised, then the marketing and servicing operations need only to appreciate the local values, instead of marketing a differentiated product. Caterp illar largely promotes a consistent message of reliability, expertise and value for money; these are the underlying assumptions that are connected to the Caterpillar brand. Internal marketing could involve more negotiations through understanding local cultures, although this may unconsciously happen it does not get promoted through the documentation. In summary Caterpillars international strategy has evolved within a market environment that demands reliability and dynamic customer requirements. Therefore their international strategy is a unique response that matches the capabilities with customer demands. The current direction of the strategy is to ââ¬Ërecalibrate our focus (Annual Report 2001 pp.2), meaning to concentrate on successful products and either retain or achieve leadership. Caterpillar does, and should continue to innovate in terms of products and logistics to maintain opportunities for leadership. The brand values provide a critical advantage in supporting t he services because the interrelated nature of this allows prosperity. Caterpillars brand management and marketing internationally is effective in communicating the values, but it has been hinted here that the fundamental values may be ideal for the American market, but not necessarily maximising in foreign markets. Caterpillars logistical network involves vast amounts of investment of money and time; therefore it poses as a significant barrier to entry. The critical aspects of this network are the working relationships. Caterpillar manages these by documenting the ideal personality of a networked company. However, it is concluded that Caterpillar has ethnocentric characteristics, which may be inefficient by suppressing the domestic firms. The structural design of Caterpillar resembles that of a transnational network company, this network covers a large proportion of the globe, but the development of the structure extends from a triad perspective due to early investments in Ja pan and Europe. A criticism of this suggestion is that Caterpillar have sufficient power to influence networked companies, therefore it could be argued that there is evidence so suggest that it undertakes a global area structure. This is based on the opinion that they have a bureaucratic nature, which works against the network structure fundamentals. The competitive forces of the environment, namely the need for reliability and support service, would suggest that the network structure is more appropriate. Caterpillars ability to develop and produce products is a major advantage, but to create total dominance of the construction industry, their logistical network would need continual maintenance. The resulting recommendation is to encourage an emergent approach that encourages communication and business development within the network.
Wednesday, January 1, 2020
Ethical Issues Present in the Distilled Spirits Industry
Introduction Accounting for over $120 billion of economic activity in 2010, the distilled spirits industry is a prominent piece of the beverage industry as a whole. The alcohol industry is growing rapidly in foreign markets, especially in countries such as China and Brazil. In the United States alone, this industry generates over 3.9 million jobs and contributed about $8.8 billion directly to state and local revenues (The Industryââ¬â¢s Role section, para. 1). Team TOTs will discuss the ethical issues that are prevalent in the distilled spirits industry, pressures facing the industry as well as investment policy recommendations that VTF should follow. Ethical Issues The challenges the distilled spirits industry face fall under two main categories, health and advertising. According to the National Institute on Alcohol Abuse and Addiction, the use of alcohol is the ââ¬Å"third leading preventable cause of deathâ⬠in the US (2014). The Centers for Disease Control and Prevention states that heavy alcohol abuse can lead to a number of health issues, including cardiovascular, neurological, psychiatric, and social problems, as well as cancer, liver disease, and sometimes death (2014). In addition to the consequences to consumersââ¬â¢ health and wellbeing, the industry must also manage the challenge of responsible marketing. Underage drinking is a serious, prominent issue in the US. Out of the 80,000 people who die each year from alcohol-related causes, 5,000 minors die from as a result ofShow MoreRelatedMarketing Campaign : Skyy Spirits Llc3877 Words à |à 16 PagesSince its creation and foundation in 1992, Skyy Spirits LLC has entered the m arket full force and like no other premium vodka seller before. (Macgilchrist, 2006) Even though the distilled spirits industry was and continues to be one of the most competitive brand battles, Skyy has managed to attain growing praise for their products. As vodka accounts for almost a quarter of all distilled spirit sales, and despite the predicted decline in sales due to the mature nature of its market, the opportunityRead MoreEthics in Alcohol Advertising3960 Words à |à 16 Pagesof both consumers and the organization. But the key issue here is that commercial freedoms need to be balanced against consumerââ¬â¢s safety and well-being. The field of marketing is undeniably thatââ¬â¢s which raises the most controversies when it comes to the question of ethics. For instance, our economic system has become more effective at catering consumer needs and wants, therefore, there is an increase focus on organisations adhering to ethical values rather than merely providing products. There areRead MoreEssay about Sin Taxes5069 Words à |à 21 Pagesto raise revenue and accomplish policy outcomes. 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Cash conversion ratio of Net operating cash generated The business turnaround is on track and we are now able to dedicate all of the Companyââ¬â¢s considerable financial resources and industry expertise to beer and cider. the domestic beer portfolio also includes Cascade and pure Blonde and our international portfolio includes beers such as Asahi, Carlsberg and Stella Artois. we have outstanding craft beers such as matilda Bayââ¬â¢s Fat YakRead MoreThe Mind of a Marketing Manager26114 Words à |à 105 Pagesof your brand, in new markets or applications? And how do you capture its full impact over time? * Who are the customers for your business? How do you gain real insight into what they want? How do you embrace CSR, and address wider ethical issues? How do you create a truly cus tomer-centric business? * How do create more radical innovation? How do you disrupt the existing market conven tions in order to create a significant and sustainable difference? 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