Business and Marketing

Archive for November, 2010

Free Trade is one of the breakthroughs that are meant to penetrate the business in countries around the world. It has the effect for many countries in Asia which are mostly developing countries. These countries are still undergoing transition towards a modern life. But free trade has a negative effect in which many countries are still not ready to participate in it. They are still not able to sustain the economic condition so as not ready to face competition from other countries business. Therefore, fair trade is the solution to be a barrier to face the free trade.

The free trade has the potential unfair trade behavior. Therefore fair trade must be grown in the local business community in a country. Some components supporting fair trade, among others, are the wealth of culture, human resources, and institutions that oversee ethical business practices. The fair trade principles that need to be enforced are a fair wage, fair treatment of employees, gender, environment-friendly, consumer-friendly and improving skills of the labors. It should be done by growing the awareness with cultural approach in order to change the mentality of institutional culture and form a people power so that fair trade can be realized.

Institutions that oversee the business practices in accordance with the principles of free trade become an important instrument. The agency can deal with cases that touch the realm of the law but remain in the corridor right of consumers to become an effective instrument in the enforcement of fair trade. If the stakeholders synergize to implement fair trade, then a country in transition will be ready to face free trade.

In recent years, the issue of social responsibility gets serious attention from entrepreneurs. The companies begin to organize and plan the form of social responsibility that can be done by the company, with adjusted internal capabilities, the available funds, and community needs. Thus in practice, the form of corporate social responsibility among the companies may differ from one another company. The cause of the high attention to the company’s corporate social responsibility is also fueled by high consumer awareness. Consumers begin to question the company’s social responsibility. They realize that the company’s growth and development is inseparable from the willingness of consumers to buy and consume products produced by the company. In connection with the disaster that befell many of today’s society, consumers again question the company’s social responsibility.

The question from consumers and society at large that arises is on how the attitudes and behavior of firms if the society no longer has the power to contribute to corporate profits. It is also about the attitude and behavior of firms in a situation where the supply of goods is reduced while the demand even tends to increase. By using the ratio of the economy, there will be a shortage of goods which in turn will increase the price of the goods. Therefore, discussions with the related issues need to be done by involving the company, society and government. This is done to obtain a comprehensive understanding of the importance of corporate social responsibility, both in normal circumstances as well as the existence of such a disaster lately.

Market in terms of economic theory is a situation where consumers, producers and traders make transactions after the two sides have taken a deal on the price of some goods with certain qualities that becomes the object of the transaction. They benefit from the transaction or the market. Then there are also the traditional market terms. This market is still using a conventional transaction system. The merchants and consumers can do bidding to obtain the desired goods. It is not found in the modern market where everything, especially price, is already fixed. However, traditional markets slowly start to disappear. Even in some countries in Europe, the traditional market is almost lost.

To that end, traditional markets must be maintained because of the many benefits that can be obtained from the existence of this market. Traditional markets have to be ‘rescued’ because they are full of social and cultural interaction. In fact, many researchers from Europe travel to countries in Asia as an effort to revive the traditional markets in their countries. Traditional markets have complex components. There are a blend of economy and culture in it. In addition to seeking profits by trading, people can meet their needs by shopping there. In addition, in traditional markets there is interaction between sellers and consumers. It also could lead to an atmosphere of friendliness, even giving rise to a communication between them.

For that, considering the many benefits of traditional markets, especially to eliminate the inherent nature of the individualist who started in the community, then the existence of this market should be maintained. The traders in traditional markets also have to actively maintain the market by participating in treating its infrastructure. Do not let the market become not attractive anymore because of the lack of regulation in it.

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The air transport business becomes more competitive. The increasing number of airlines that operate implies for the ticket price competition in the hope to reach as many passengers. It can be seen with a promo price which is often offered via the Internet. This phenomenon is found in many developing countries in which there is a shift in the community lifestyle. It is also a business opportunity for various airlines. From these phenomena, there are some things that need to be examined in the context of business ethics.

There are several procedures that must be passed by a prospective passenger who is less transparent and likely to harm them. From the promo, for example, on the internet it is informed that there are some airlines that still have seats with a special price. It tends to attract the prospective passengers and they register on the airline ticketing. However, they do not get the access in order to get the certainty. So it would be better if the available seats are informed in the website of ticketing so that there is clarity for passengers who need it.

There are other issues related to insurance claims, in which the prospective passenger is about to depart. However, they are suddenly informed that there is a transfer of airlines that are usually for reasons of mechanical failure. In this case, an insurance claim becomes confusing. Since there is something unfortunate that happened to those passengers then the insurance claim cannot be used. It is because there is no guarantee of insurance. The government should make a new regulation due this case because airlines companies provide services to the public.

There are so many forms of advertising made by the developers in marketing their products. One of them by distributing leaflets in the joints of highways, or affixed to strategic places, or with a large board on display in the main street to be seen clearly or through property exhibitions with stalls set up for property sector in particular places and there are many more forms of advertising other property. Judging from the spread of the ad, perhaps nothing is cause for concern. If you are a developer, you will install the image that you build housing to attract customers.

But there are some cases involving a lot of complaints from the public, especially the ‘victims’ of property ads that do not fit the reality because it is aggrieved by the developers, as evidenced by the fact the field does not match what is promised in the advertisements offered. From the illustration above, so we need clarity of information in advertising of any product or service.

There is no standard that should be applied in the world of advertising, especially the property that is currently circulating in the community enough. But it should be observed; too, what caused the developers to do things that are not transparent, if there are certain constraints felt by the developers to inform openly to consumers. On the other hand, people are expected to be more critical and observant enough to choose a place to live that does need to be researched in advance the content of advertising material on offer, including checks with detailed criteria that must exist in the establishment of residential buildings.

Spatial policy of the city or town planning is one of the contributing factors in the development of property business to be better. The phenomenon that is happening now is a lack of synergy between spatial policy and urban planning with the implementation of business property. Some things happen in Asia where there are several developers who run a property business without considering the layout of the city. In addition, there are developers who have built the building but they have not secured a license to the principles that must be owned before the construction done.

Usually developers do that because the cost of raising the principle is high enough and to give the permit takes a relatively long time. It conflicts the developer’s deadline. In addition to the licensing control is less strict so that there is some housing development that is still running without the consent principle. With these phenomena, the effects of what happens are uncontrolled development in terms of housing facilities as well as environmental impacts that must be considered.

In the end, the arrangement the city would be difficult to formulate because the target of area designation is not in accordance with the original planning. The implication is happening on the business property that is less ethical to harm many people and can impact the long term with a very expensive recovery costs. Viewing the series of problems that arise in the field of property, it is important to bring together various parties who are expected to occur mutual understanding about the importance of business ethics enforcement in the field of property.