theme 4 Flashcards
1
Q
what is an emerging market? + pros
A
a market which endures rapid growth but also with a lot of risk.
+ likely to grow quicker than more mature markets.
therefore, a business should be able to increase profits and dividends
2
Q
implications of economic growth for individuals and businesses?
A
- trade opportunities:
when an economy is growing. consumption may also grow which is good for firms looking to invest or sell products
thus, disposable income is likely to also be rising. which will allow individuals to have more money to spend, increasing demand. - employment patterns: unemployment is an indictor to not export within that country but can find a a larger number of labour workers there
3
Q
indicators of growth?
A
- GDP
- literacy
- health
- hdi
4
Q
what is GDP?
A
measure of economic activity ( goods & services produced in a year divided by no. people in country)
functions as a scorecard on a country’s economic health
5
Q
effect of growing economy on GDP?
A
growing: means people spend more, more jobs are created, more tax is paid and workers get better pay rises.
6
Q
how can GDP be measured?
A
- output: The total value of the goods and services produced by all sectors of the economy
- expenditure: The value of goods and services bought by households and by government, investment in machinery and buildings
- income: The value of the income generated, mostly in terms of profits and wages.
7
Q
human development index (hdi)?
A
collection of stats that are combined into an index, ranking countries according to their rankable value:
- life expectancy
- mean years of schooling
- gross national income per capita (wealth)
8
Q
purchasing power parity?
A
measure of real growth that uses the price of purchasing standardised basket of goods and services in order to compare prices economies
9
Q
what are exports / imports?
A
exports: goods/services that a firm produces in its home market, but sells in a foreign market
imports: goods/services that are brought into one country from another
10
Q
use of trade barriers? +eg
A
used to try to limit the importation of goods.
eg:
tariffs: taxes that are imposed on imports
11
Q
what are non tariff barriers?
A
include practises such as:
- giving subsidies to local firms
- numerical limits (quotas) on imports and creating rules ab how much of a product must be made in the country or in what way
12
Q
what is foreign direct investment?
A
investing by setting up operations or buying assets in businesses in another country
13
Q
what is division of labour?
A
different workers specialising in different productive activities
14
Q
what is specialisation?
A
a production strategy where a business focuses on a limited scope of products or services.
results in greater efficiency, allowing for goods / services to be produced at a lower cost per unit.
15
Q
what is globalisation?
A
the growing integration of the world’s economies
16
Q
factors contributing to globalisation?
A
- reduction of international trade barriers / trade liberalisation
- political changes
- reduced cost of transport & communication
- increased significance of global companies
- migration
- increased investment flows
- growth of global labour force
- structural change
17
Q
reduction of international trade barriers / trade liberalisation?
A
an increasing number of countries around the world have opened up their economies.
this means they have allowed trade to flow w out any barriers.
18
Q
increased significance of global companies?
A
a growing number of large firms have developed significant business interest overseas.
they sell goods / services into global markets and have production plants and other operating facilities all over the world (transnational / mncs)
19
Q
how does migration contribute to globalisation?
A
- they often import their cultures into their new environment
- provide supply of low cost labour
- portion of money earnt by migrants is sent back to place of birth which generates demand and econ activity is spread around the globe
- can be highly skilled and fill skills gap, this making big contributions to businesses
20
Q
what are growth rates?
A
the rate at which a nation’s gross domestic product (GDP) changes/grows from one year to another
21
Q
what are emerging economies?
A
An economy with incomes that are growing but are still quite low.
22
Q
what are bric economies?
A
The economies of Brazil, Russia, India and China, which are at a similar stage of economic development.
23
Q
exchange rates?
A
The price of one currency in terms of another
24
Q
trade opps from fdi?
A
- Opens up new markets which increases wealth in countries
- Access to raw materials
- Greater movement of goods and services between countries
- Opportunities for cheaper production and therefore cheaper unit costs
- Trade opportunities will arise in new markets leading to an increase in demand and increased revenue and profit.
25
employment patterns and impact on consumers?
-Increased economic growth leads to improvements in the standard of living for consumers
- Increased incomes allow people to spend more on necessities at lower levels of incomes and more on luxuries at higher levels of income
- Increased incomes allow workers more free time and the ability to retire, and enjoy the quality of their life, at an earlier age.
26
what is currency appreciation & depreciation?
a- An increase in the value of one currency in terms of another
d- The loss of value of a country's currency with respect to one or more foreign reference currencies.
27
factors affecting exports & imports?
- The impact of exchange rates
- Price elasticity
- The state of the world economy
28
impact of exchange rates?
An increase in exports to the US will increase the demand for the £ as the Americans have to pay for these goods and services in £s.
Due to an increase in demand for the £, the price of the £ will rise and this is called an appreciation.
(opposite if demand for £ declines)
29
NON-PRICE FACTORS AFFECTING EXPORTS AND IMPORTS?
- Real GDP of other countries increases
- Changes in taste and fashion
- Price inelastic exports are likely to see a fall in volume sales but an increase in total revenue
- Productive capacity increases allowing for greater sales of a product
- Product differentiation leads to greater demand for products.
30
competitive advantage?
advantage over the competitors in the long term, gained by offering consumers:
- greater value
- lower prices
- providing greater benefits and service
31
specialisation?
When a business concentrates on a product or task and in many cases means producing only a small number of products.
32
how specialisation and comp advantage link?
Specialisation is likely to lead to increased output per worker (productivity) as the workforce have a better understanding of their job role.
This will help provide a competitive advantage as businesses improve the quality of their products.
33
impact of fdi and strats?
FDI can be used by businesses to achieve the aim of growth. Countries try to attract FDI using strategies such as:
- lower levels of corporation tax
- subsidies for the building of factories
- investment in infrastructure such as roads, ports and airports.
34
trade liberalisation?
Includes the removal or reduction of tariff obstacles such as duties and surcharges and non-tariff obstacles such as licensing rules, quotas and other requirements.
35
transnational corporation?
business that is register and operates in more than one country at a time but selling the same products.
36
factors for international trade increasing?
Reduction of international trade barriers/trade liberalisation
Reduced cost of transport and communication
Increased significance of transnational corporations
Increased investment flows
Migration within and between economies
Growth of the global labour force
Structural Change
37
adv / dis of trade liberalisation?
adv:
- increased economies of scale and greater competition, which can drive down costs and improve quality.
dis:
- potential loss of local businesses due to increased competition, infant industries could be lost to foreign competitors, and the vulnerability of some industries dumping by overseas rivals.
Dumping occurs when a country has excess stock and so it sells below cost on global markets, causing other producers to become unprofitable.
38
protectionism?
any attempt by a country, trade bloc or region to impose restrictions on the import of goods and services.
39
tariffs?
a tax or duty that raises the price of imported products.
40
dumping?
Over-production in developed countries may be released into the markets of developing nations which undercuts domestic prices and domestic producers may be forced to leave the market.
41
balance of payments?
Exports - Imports. This explains the financial relationshio between the UK and the rest of the world.
42
why may a country use protectionist measures?
- trade imbalances
- protect jobs
- protect politically sensitive industries such as shipbuilding.
43
adv / dis of imposing tariffs?
adv:
- promoting local industries and products by pricing them below the price of the imported good
- increasing government revenue to spend on public services
- discouraging dumping or products and allowing infant industries to flourish
dis:
- discouraging trade
- reducing consumer choice, pushing up prices and restricting competition.
- The latter may result in home producers becoming inefficient and ultimately may slow the growth of the economy.
44
import quotas?
A type of protectionist measure on trade that sets a restriction on the physical limit on quantity of a good that can be imported into a country in a given period of time.
45
adv / dis of import quotas?
adv:
- Keeping the volume of imports unchanged even when demand for imported products increases
- Local jobs may be created or protected, leading to a greater tax revenue
- More flexible than tariffs
dis:
- Tend to distort international trade as they restrict the amount of imports
- Restricts competition
- No tax revenue from imports
- In some countries, there is a risk of corruption from bribes by companies wanting to gain access to the market.
46
gov legislation + adv & dis?
legislation imposed by the government in order to both protect consumers and restrict imports.
Benefits of government legislation is that it allows domestic firms to flourish in the market, but it may provoke retaliation from another country is the ban is seen as unfair.
47
domestic subsidies + adv & dis?
are payments to encourage domestic production by lowering their production costs and improve competitiveness.
adv:
- The protection of local jobs and industries
- The reduction of costs to make businesses more competitive in the global market.
dis:
- Subsidies encourage inefficiency
- May result in retaliation due to it being seen as a protectionist policy.
48
embargoes + adv & dis?
A total ban on imported goods.
49
what are trading blocs?
group of countries that signed regional trade agreement to lower / eliminate tariffs
50
Preferential trade areas?
certain types of products from participating countries has lower tariff rates
51
Free trade area?
region where members removes trade barriers but they keep some barriers
52
Custom union?
union where members remove all trade barriers and adopt common set of barriers on non-member countries
53
Common market?
goods, labour and capital moves freely with members where non-tariffs barriers are removed
54
Single market?
almost all barriers are removed and common laws to make movement easier
55
economic union?
type of trade bloc involving both a customs union and a common market
also uses common currency
56
impact of joining trading bloc? + examples
increases trade liberalisation and leads to trade creation
(businesses are able to enter new markets which can lead to an increase in sales volume and sales revenue)
- EU
- association of southeast asian nations (ASEAN)
- north american free trade agreement (NAFTA)
57
impact of free trade areas?
lower business costs, increase market size and help businesses to generate economies of scale
58
impact of businesses outside the trading bloc?
- face higher costs from protectionist measures such as tariffs and trying to meet legal requirements inside the trading bloc
- less competitive when trying to sell goods to member countries within the bloc
- likely to decrease their sales volume to countries within the bloc
59
Benefits for Businesses Inside the Bloc
- access to more markets / customers due to free movement of goods
- external tariff walls (tax on imported goods), protects from competition
- infrastructure support (extra support from the gov to to maintain their competitiveness against businesses in trading bloc)
- free movement of labour (source workers from a wider pool and higher supply of labour may push wages lower, leading to reduced costs for business)
60
Drawbacks for Businesses Inside the Bloc?
- increased comp (may be more of an issue for small businesses as they have less resources available with which to compete)
businesses w monopoly power can increase their monopoly by eliminating competitors in other countries within the bloc
- common rules & relegations: in order to operate as one market, new rules and regulations may be put in place that all businesses must adhere to
- retaliation: External tariffs set against countries outside of the trading bloc may lead to retaliation from these countries
- inefficiency: less competition from businesses in countries outside of the bloc
This may reduce the incentive of businesses to be more efficient
61
what are push factors?
those that force a business to leave the market in which they currently operate to look for new income streams in the future e.g. operating in a different market.
62
saturated markets?
the point at which a market is no longer generating new demand and decline in sales revenue for a firm's products, due to competition, decreased need, obsolescence or alternatives.
Businesses will look for growth in overseas markets where there are similar characteristics, for example demographic trends and GDP per capita and where sales revenue will rise again.
63
High levels of domestic competition?
business will try to move into markers that are undeveloped and/or have less powerful competitors in order to be more likely to survive.
64
pull factors?
those that attract a business to a global market. These may include lower levels of competition or an untapped market or customers.
Pull factors are the opportunities a business may see for expansion into a foreign market. The factors are linked to the foreign market in which the businesses wishes to operate.
65
eos?
when unit costs fall as output rises.
Globalisation has meant a rise in opportunities for international businesses to reduce unit costs by increasing sales volumes to new and emerging markets, thus being able to buy the raw materials to make the products in bulk.
Businesses have also moved production to new markets where costs such as wages are significantly cheaper than in their domestic market.
66
risk spreading?
is a benefit from moving into markers in order to reduce dependence on the home market.
67
offshoring?
When a company moves various operations to another country for reasons such as lower labour costs or more favourable economic conditions in that other country.
68
adv / dis of offshoring?
adv:
- cost minimisation (eos from operating in larger international markets and having access to more specialised suppliers and services)
dis:
- public and employee relations may suffer due to moving jobs abroad, higher costs such as training, poor customer services and risks to legal protection for key business information such as patents and brands.
69
outsourcing?
A practice used by companies to reduce costs by transferring portions of work to outside suppliers rather than completing it internally. Outsourcing is an effective cost-saving strategy when used properly.
70
adv / dis of outsourcing?
adv:
- take advantage of another business's specialised skills, which will help them to improve their quality, cost effectiveness and worker flexibility.
- business being able to focus on its own core areas, and savings on spending on new production facilities.
dis:
- potential loss of customer service and brand recognition as outsourcing businesses may work for many other different customers.
71
diff between outsourcing and offshoring?
the offshored element of the business is still part of the same global business but outsourcing means a completely separate business takes over the work.
72
Advantages of selling products in multiple markets?
Continued profitable returns
Potential economies of scale due to selling large numbers of the product
Potential to develop a new and loyal customer base for current and future products
73
Disadvantages of selling products in multiple markets?
General risks of operating in new markets such as language barriers
Increased costs due to exporting the product
The expense of marketing campaigns to raise
awareness of the product among new customers
Products may need to be adapted to the local market meaning increased costs from further product development.
74
Disposable income?
the total income of an individual has available to spend after paying income taxes and the addition of benefits.
75
Market attractiveness?
A measure of the potential value of a particular market in a country.
Boston Matrix, PESTLE and Porter's Five Forces can be used to assess market attractiveness for a country
76
factors affecting market attractiveness?
Levels and growth of disposable income
Ease of doing business
Infrastructure
Political stability
Exchange rate
77
production?
A process of workers combining various material inputs and know-how in order to make something for consumption by the customer, known as the output.
78
factors considered when assessing a country as a production location?
Costs of production
Skills and availability of labour force
Infrastructure
Location in trade bloc
Government incentives
Ease of doing business
Political stability
Natural resources
Likely return on investment
79
global merger?
an agreement between two companies from different countries to join forces permenantly.
They will become a MNC and these types of merger are likely to increase the power of the new business.
80
joint venture?
a separate business entity created by two or more parties acting as a collective to set up a new business venture, involving shared ownerships, returns and risks.
81
patents?
government authority or licence conferring a right or title for a set period, especially the sole right to exclude others from making, using, or selling an invention.
82
Reasons for a global merger or joint venture?
Spreading risk
Entering new market/trade bloc
Acquiring national/international brand name/patents
Securing resources/supplies
Maintaining/increasing global competitiveness.
83
Global competitiveness?
is the ability of a business, usually a MNC, to perform better than its rivals across markets in different countries.
This can be achieved through performance on price and quality or customers' perception of these factors.
84
impact if EXCHANGE RATE APPRECIATES
- Exports are less attractive in terms of price competitiveness and businesses will find it harder to compete with competitiors as their products will be more expensive in terms of the local currency.
- Imports will be more attractive in terms of price competitiveness
- Stronger pound will lower the price of imports and reduce the cost of imported materials.
85
impact if EXCHANGE RATE DEPRECIATES?
- the price of imports will increase and potentially inflation. This is especially true for businesses who rely on the import of primary raw materials.
- This means that the rise in import price will deter FDI as the expected return on investment is unknown. However, for domestic businesses, this could mean that the deterrent of high import costs should be ideal for gaining market share from foreign importers,
86
cost competitiveness?
the differences in unit costs between competitors.
87
COMPETITIVE ADVANTAGE THROUGH COST COMPETITIVENESS?
Cost leadership:
- High productivity workforce
- High capacity utilisation
- Lean and efficient distribution
- Lean production
- Innovative technology
Outsourcing
Offshoring
Economies of scale:
- purchasing (buy supply in bulk)
- technical (investing in machinery)
- marketing (global brand awareness)
88
COMPETITIVE ADVANTAGE THROUGH DIFFERENTIATION?
Establishing a strong brand images for a good or service
Making the USP of a good/service clear
Better design or innovation
89
impact on skill shortages and workers ?
A lack of ability to recruit skilled workers could lead to a decline in competitiveness as global businesses will not be able to take advantage of lower unit costs and/or higher-quality products.
This will be a particular risk for businesses that take the differentiated approach, such as products that rely on a high level of expertise.
This risk can be reduced by good corporate planning to ensure skills are available to create a competitive advantage and this may involve outsourcing or offshoring.
90
global marketing strat?
A product strategy to increase sales through promotion and advertisements to the international market.
focuses on the 4P's
91
glocalisation?
is the adaptation of a global marketing strategy in order to meet the requirements of local geographic markets. The term is a mix of globalisation and localisation.
92
what is the ethnocentric (domestic) approach
the domestic approach that assumes what sells in the home market will also sell overseas. It is used for products where the authenticity of the brand and its association with the home country matters most
93
adv and dis of ethnocentric approach
adv - as products are standardised across markets, scale of production is large so economies of scale. no development costs because no need for research and product development for local demand, reduces average cost
dis - risky as some products may not do well when not adapted to local market
94
what is polycentric (international) approach
adapt products to local markets to meet demands of different customers e.g. car manufacturers adapt models or names
95
adv and dis of polycentric approach
adv - targeted products for different markets allowing them to target customers better so higher sales.
dis- more research and development cost , may be difficult to compete with local established brands
96
geocentric approach
mixed of polycentric and ethnocentric so they aim to maintain and promote brand name but tailor products to local markets
97
geocentric approach adv and dis
adv - tailor products to local needs and wants so better targeting, more sales
dis- higher cost of development
98
how does the marketing mix apply to global markets?
price - need to take into account local factors like income, taxes, wages
product - to what extent should they adapt products (ethnocentric, polycentric, geocentric)
promotion - language differences
place - how local consumers typically buy products
99
what is market penetration - ansoff matrix
existing market, existing product
low risk
can be done through: loyalty cards
100
what is market development - ansoff matrix
new market, existing product like moving to a new country
need to know different markets different tastes and preferences and make changes to fit it
101
what is product development- ansoff matrix
existing market, new product
suitable when market is dynamic or products have short life cycle
can be done through extension strategies
lots of investment in r&d and promotion, high risk
102
what is diversification- ansoff matrix
new market, new product e.g. conglomerate
lots of risk, increased product portfolio
103
Which parts of Ansoffs matrix are particularly important for global marketing?
Market development and diversification
104
global niche market
customers who live in more than one country and have particular needs that are not met fully by the global mass market e.g. toy market
105
Features of Global niche markets
- Clear understanding of needs of the market segment.
- Focus on quality.
- Excellent customer service.
- Expertise in the product area.
- Prioritises profit rather than market share
innovation.
106
why do they need to consider cultural diversity
theres language barriers, influences the way a product is marketed, differences in what is considered bribery
107
adapting marketing mix to global niches
product - place emphasis on quality
price - ability to charge high prices because its a niche
promotion - based around brand name and reinforcing exclusivity, more targeted promotion
place - careful when selecting distribution channels
108
Ethnocentrism
Belief in the superiority of one's nation or ethnic group.
109
cultural differences
each step in conducting business needs to be thought about carefully and prepared for from day to day running to communications and negotiations
110
language
understanding other languages makes communication easier and builds relations, over reliance on one language can be risky and lead to miscommunication
111
high-context culture
a culture where people emphasise interpersonalise relationships
112
low context culture
a culture in which people are expected to be direct and to say what they mean
113
unintended meanings
gestures might have different meanings
114
differing tastes
adaptations to meet different markets tastes, local variants may adapt taste (coca cola may taste slightly different in different countries), religous beliefs, legal requirements
115
inappropriate branding and promotion
making sure translations of slogans etc are correct, adapting packaging to have more images for low literacy level countries
116
what is an MNC
a business that is based or registered in one country but has outlets/affiliates or does business in other countries
117
characteristics of an mnc
Dominant players in the market
Complex structures, multi-site and multi-product
Grown through organic and inorganic growth
Heavy investment in R&D
Globally recognised brands
118
Advantages of MNC's on local labour, wages, working conditions and job creation
Create jobs with opportunities
High wages - higher living standards
Higher working condition
helps skills develop in the country which improves MNC's productivity but in the long term
119
disadvantages of MNC's on local labour, wages, working conditions and job creation
Create wage inflation which local businesses may not be able to afford
may exploit cheap workers
Only offers low skilled jobs to workers so not effective skill transfer
Lack of union representativeness can become more powerful demanding higher pay or better working conditions which may cause the MNC to not see the country as an attractive place for production anymore
120
Advantages of MNC's on local businesses
may be a need for local businesses to supply materials or services e.g plumbers, construction etc.
Higher spending power from local community due to increased wages and therefore disposable income, increasing demand for other local businesses
increased competition may cause local businesses to be more innovative and efficient
121
disadvantages of MNC's on local businesses
increases local business costs because they have to match the mncs wage rate
lose skilled workers to mnc due to better working conditions and may not be able to survive
122
Advantages of MNC's on the local community and environment
to encourage labour they may invest in transport links and roads so better infrastructure
Higher employment, less poverty, lower crime
increased funds for local governments from the payment of taxes
123
disadvantages of MNC's on the local community and environment
environmental disasters, could contribute to pollution
Loss of traditions and cultures
Profits earned by MNCs may be remitted back to the MNC's base country rather than reinvested in the host economy
124
what areas do mncs impact on the national economy
FDI flows
Balance of payments
Technology and skills transfer
Consumers
Business culture
Tax revenues and transfer pricing
125
Advantages and dis of MNC's on FDI flows
adv - increase in income and employment, higher levels of gdp, increase growth and raise living standards
businesses get taxes so increased government revenue
dis - lot of profit is likely to go back to domestic country
126
Advantages and dis of MNC's on balance of payments
adv - inward investment improves cash flow into the country when project is being established and then if any output is sold abroad then thats money coming in
dis - if they buy machinery or equipment from abroad thats money going out and if profits go back to base
127
Advantages and dis of MNC's on technology and skills transfer
adv - New technologies and skills will be introduced to the host economies increasing innovation and productivity
Collaborative work between countries to further development and working practices
dis - newly highly skilled and qualified workers that benefitted from the MNC may choose to emigrate out of the country in the search for better work
128
Advantages and dis of MNC's on consumers
adv - increased consumer choice, ability to charge lower prices, tech and efficiency means better quality
dis - presence of mnc may deter domestic businesses from market, reducing competition and they may possibly exploit monopoly power
129
Advantages and dis of MNC's on business culture
adv - May introduce more aggressive cultures based on a profit motive which could be learnt by domestic firms, increases number of entrpreneurs as they may feel they have gained knowledge/experience needed
dis - unethical ways may bring more harm than good
130
advantages and dis of MNC's on tax revenue
adv - Taxes paid within the host country will boost the governments revenue allowing for greater spending on public services such as health care and infrastructure
dis - mncs find ways to avoid high tax e.g transfer pricing
131
ethics
moral rules or principles that govern behaviour
132
institutional framework
businesses have to act within institutional framework of both home and host country
133
stakeholder conflicts : consumers
prices manipulated by manipulating profit margins to justify increase, product safety, misleading advertising
134
stakeholder conflicts : employees
have to ensure employee safety, conflict around redundancies or pay and conditions
135
stakeholder conflicts : shareholders
short term vs long term return of share as some businesses may want to use retained profit and aim to get long term higher dividends but some shareholders want dividends in the short term
136
stakeholder conflicts : communities
safety, environmental damage, resources scarcity
137
ethics of pay and working conditions
due to globalisation, many mncs manufacture in other countries due to cheap labour in ledcs. becuase they dont have the same standards of working conditions or pay as uk, they are low.
however, businesses get a lot of criticism for the ethics of this so its becoming less common and businesses are working towards fair working practices e.g. the ethical trading initiative
138
ethics of environmental considerations
level of emissions has a lot of legislation so involves many institutions and stakeholders as it can cause bad air pollution and issues with waste disposal
there are barriers to effective waste disposal in ledcs
139
supply chain considerations
Exploitation of labour - in ledcs there are many workers who are in debt to employers so are binded to employer until the debt is paid
Child labour - child labour is very common in local area businesses but there may be undesirable consequences
140
marketing considerations
Misleading labelling - make sure theyre not misleading so that customers make a fully informed choice and if any aspect of product is hazardous but it may be difficult to distinguish between truthful and non-misleading
Inappropriate promotional activities - cant be illegal or offensive
141
political influence
state owned enterprises are encouraged becuase they are easier to control or manage and they help challenge the power of private businesses
they can encourage corruption as politicians will favour them
state owned operations may better soak up capital that other firms may employ better
other investors rights may be reduced or ignored
less pressure of competition so inefficeincy as may not feel need to spend on research and development
priv businesses can be controlled by supporting domestic firms through : tariffs, quotas, regulations, subsidies
142
legal control
control through regulation, competitive laws and taxes
competition policy - promote competition and ensures firm not abuse market power
143
taxation policy
raising or lowering taxes on business to improve competition in domestic market and facilitates consumer protection
concerns that businesses can use varying tax systems to avoid tax ehich is an issue of ethics and can give bad brand image
Tax avoidance = using legal methods to lower amount of tax that company pays
Tax evasion = using illegal means to avoid paying tax owed
144
pressure groups
publicise undesirable behaviour and ruin brand image but can also support businesses interests
Naming and shaming = publicising behaviour considered to be unethical
Direct action = use of demonstration, protests, strikes or sabotages to achieve political or social goals
Lobbying = taking of issues directly to government in effort to influence change
raise issues that may not otherwise be publicly known, may be ill informed or lead to violence
145
social media
Defined as interaction between electronic and mobile devices* Can act as a mean of controlling behaviour:
- Making collection of information from variety of sources
- High social awareness via communication
- High transparency
- Bringing people together to create social authority to challenge power
- Reach a wide audience like global reach and young demographics, when it goes viral it could be difficult to endure correct info is spread
