Pencil Manufacturing and Marketing Production Term Paper

Pages: 15 (4802 words)  ·  Bibliography Sources: 8  ·  Level: College Freshman  ·  Topic: Business  ·  Buy This Paper

SAMPLE EXCERPT:

[. . .] The four basic degrees of competition are:

Perfect Competition

Monopoly

Oligopoly

Monopolistic Competition

Perfect Competition is the situation when there are too many sellers in the market and they are selling products which are identical to each other. This is a very common problem faced by the pencil manufacturers.

Monopolistic Competition occurs when a large number of sellers sell products that are similar to each other and are considered as differentby the consumers. This is a situation where the pencil sellers face the prices competition with the other sellers.

Oligopoly is a situation when there are only few sellers and they dominate the market by selling high quality products. In this case prices of the products is almost same and the investment in these products in high.

Monopoly occurs when there is only one seller of the product in the market. This is a situation that is usually prohibited by the U.S. laws.

Benefits and Limitation of Free Market

The emergence of free market sidelined the trend of capitalism because capitalism was considered as a source of inequality in the market and could be quite harmful for the pencil industry.

Despite of the benefits of the free market it could be dangerous for the success of the pencil industry as the manufacturers get so much involved in making money and competing with other sellers that they get greedy that could result in the downfall of the industry.

International Marketing

For success in the manufacturing business of pencils, it is important for the manufacturers to expand their business internationally. They should do put maximum effort in becoming the part of the global market by increasing the export and import of the products. This would help in competing with the global business market.

Trading with other countries is profitable for the business because it enables the manufacturers to produce what they are capable of and buy the rest of the products from other countries in a mutually beneficial way. In this way the company could meet the demand of its people.

For becoming part of the global trade it is essential for the manufacturers of pencils to have a clear observation of the global market and work with determination. (Coper, 2010)

Import and Export of Pencils

Not all brands of pencils are available in all countries. It is profitable for the manufacturers to import those brands of pencils which are not available in a specific country to fulfill the demand of the customers. Similarly, exporting of a specific brand of pencil to other countries, where it is not available is also profitable for the industry. There should be a proper balance between the import and export of the company. If the company focuses on buying more from other countries rather than selling them then this is called deficit trade, which could be harmful for the trading of the product. (William Nickels)

Strategies for Reaching Global Market

For the pencil industry and the manufacturers, it is important to apply the following strategies for becoming a part of the global market:

Licensing: Through licensing the pencil industry can gain additional revenues from its products and the licensor needs to spend little or no money for the production and marketing of the pencils.

Franchising: It is also an important technique for the pencil industry to franchise their products as it is considered a very popular step both domestically and in the global market.

Contract Manufacturing: Contract manufacturing is also referred as outsourcing, which involves the production of private-labor goods by a foreign company to which the company later on attaches its trademark. Through contract manufacturing, the pencil industry can experiment in new markets without paying huge amount for the start-up business.

Joint Ventures: The pencil industry should start a joint venture or partnership with other companies for undertaking a major project. A longer-term partnership can help the companies to enjoy long-term competition advantages in the market.

Foreign Direct Investment: It requires the pencil industry to purchase permanent business property in a foreign country to maintain full control over any development and technology. (Mburugu, 2011)

Managing Business Ethically and Responsibly

Ethics are the standards or moral values that are acceptable by the society. These moral values should be kept in mind by not only individuals but also the organizations. It is important for the pencil industry to follow the ethical values to become a recognized part of the society. In an industry, the employees cannot alone follow the ethical rules but they need the constant support of other member.

The managers of the pencil industry are responsible for the behavior or conduct of the employees. If any employee shows a bad conduct or behaves in a way that is unethically then the manager should make sure that the employee is punished or thrown out because of this bad conduct.

It is the job of the manger to set some ethical standards within the organization and any worker going below these standards should not be a part of the working team. Two of the major ethical codes include:

Compliance-based ethical code emphasizes on keeping an eye on anyone showing a bad conduct and punishing the wrongdoers.

Integrity-based ethical code emphasizes on creating an atmosphere that promotes ethically behavior and encourages the employees to work in a peaceful environment.

It is essential for the managers of the pencil industry to follow these two ethical codes so that to create an environment where the employees could work together peacefully.

The pencil industry should set some ethical rules for the working environment of the industry to maintain harmony among the workers. The industry should emphasize of discouraging unlawful behavior by keeping check and punishing those who are a spoiling the atmosphere of the industry. Moreover, the industry should focus on maintaining an ethical environment where the employees share a friendly relationship.

Social Responsibility

There are a number of social responsibilities that the pencil industry should fulfill to gain the trust of the customers and a respectable position in the market.

Responsibility towards Customers

It is not easy to convince the customers to buy a particular product. It is the responsibility of the pencil industry to satisfy the needs of the customers by providing them with the product that is of great value. The industry should be social conscious of their behavior to gain new customers.

Responsibility towards Investors

The industry should plan on investing in other products or companies that are planning to create a better environment. To gain the trust of the investors the industry should do well to them.

Responsibility towards Employees

The pencil industry should make sure that the employees are fairly rewarded for their dedication and handwork. If the industry treats the employees in a respectable way then automatically the employee will have respect for the industry.

Responsibility towards the Society and Environment

The biggest responsibility of the industry to the society is to create wealth and promote social justice in the society. The industry should make sure that the employees are active in the civil society such as politics, laws and charities. (William Nickels)

Business Ownership

The pencil industry chooses the Sole Proprietorship in its business to gain long-term success.

Advantages

Easy for starting and ending the business

To be your own boss

Pride of Ownership

Retention of profit

No taxes

Disadvantages

One has to pay for any damage or debt to the business

Limited Resources

Management difficulties

Limited Growth

Few benefits

Reasons for Business Ownership

The main reason for the pencil industry for taking the risk of business ownership is that they do not enjoy working for others and it gives them self-satisfaction to have a business of their own. Other reasons include:

Opportunity

Profit

Independence

Web-based Business

One of the important accepts of the pencil industry is that they have launched their business on the internet. With the development in technology, internet has become the fastest way to communicate with the employees. By making themselves easily accessible on the internet, the pencil industry can make its way towards success.

Management Skills

For the better working of the pencil industry, it is essential for the company to have good managers, who are good planners, organizers, communicators and who can motivate the employees. The managers of the pencil industry should have the following skills:

Technical Skills: These involve the skills to manage all the departments with ease like the marketing department.

Human Relations Skills: These skills include leadership quality, motivation, communication, training and supporting the employees.

Conceptual Skills: This is the ability of the manager to see the organization as a whole and the ability of organizing, planning, controlling, developing and guiding the employees.

Staffing

For achieving the industries goals, it is necessary for the industry to hire trustworthy employees and to motivate them to work for the benefit of the industry. Hardworking and creative employees can lead the business to one of the biggest competitors in… [END OF PREVIEW]

Four Different Ordering Options:

?
Which Option Should I Choose?

1.  Buy the full, 15-page paper:  $24.68

or

2.  Buy & remove for 30 days:  $38.47

or

3.  Access all 175,000+ papers:  $41.97/mo

(Already a member?  Click to download the paper!)

or

4.  Let us write a NEW paper for you!

Ask Us to Write a New Paper
Most popular!

Duration Supply Chain Audit Methodology Essay


Current Event Analysis -- Apple's Product Innovation Term Paper


Logistics Simulation Research Proposal


Promoting Performance Culture in Organizations Enhancing Sustainable Organizational Productivity of SME's in Gambia Dissertation


Impact of the Higher Gas Prices in the Automobile Industry Term Paper


View 12 other related papers  >>

Cite This Term Paper:

APA Format

Pencil Manufacturing and Marketing Production.  (2013, April 17).  Retrieved February 20, 2019, from https://www.essaytown.com/subjects/paper/pencil-manufacturing-marketing-production/6660049

MLA Format

"Pencil Manufacturing and Marketing Production."  17 April 2013.  Web.  20 February 2019. <https://www.essaytown.com/subjects/paper/pencil-manufacturing-marketing-production/6660049>.

Chicago Format

"Pencil Manufacturing and Marketing Production."  Essaytown.com.  April 17, 2013.  Accessed February 20, 2019.
https://www.essaytown.com/subjects/paper/pencil-manufacturing-marketing-production/6660049.