4 Types of Hypersensitivity Reactions

Our immune system works continuously to keep us healthy and protect us against bacteria, viruses, and other germs. Sometimes, however, this system becomes too sensitive, causing hypersensitivity reactions that can be harmful or even deadly. These reactions are the result of exposure to some type of foreign antigen either on or in the body. Hypersensitivity Reactions Key Takeaways Hypersensitivity reactions are exaggerated immune responses to allergens.There are four types of hypersensitivity reactions. Types I through III are mediated by antibodies, while type IV is mediated by T cell lymphocytes.Type I hypersensitivities involve IgE antibodies that initially sensitize an individual to an allergen and provoke a quick inflammatory response upon subsequent exposure. Allergies and hay fever are both type I.Type II hypersensitivities involve the binding of IgG and IgM antibodies to antigens on cell surfaces. This induces a cascade of events that leads to cell death. Hemolytic transfusion reactions and hemolytic disease of newborns are type II reactions.Type III hypersensitivities result from the formation of antigen-antibody complexes that settle on tissues and organs. In an attempt to remove these complexes, underlying tissue is also damaged. Serum sickness and rheumatoid arthritis are examples of type III reactions.Type IV hypersensitivities are regulated by T cells and are delayed reactions to antigens associated with cells. Tuberculin reactions, chronic asthma, and contact dermatitis are examples of type IV reactions. Hypersensitivity reactions are categorized into four major types: type I, type II, type III, and type IV. Type I, II, and III reactions are the result of antibody actions, while type IV reactions involve T cell lymphocytes and cell-mediated immune responses. Type I Hypersensitivity Reactions This image is depicting hay fever showing pollen grains (yellow) entering the nasal cavity (left) of a hay fever sufferer. The symptoms are caused by a massive release of the chemical histamine in the body in response to the pollen. Claus Lunau/Science Photo Library/Getty Images Type I hypersensitivities are immune reactions to allergens. Allergens can be anything (pollen, mold, peanuts, medicine, etc.) that triggers an allergic reaction in some individuals. These same allergens do not normally cause problems in most individuals. Type I reactions involve two types of white blood cells (mast cells and basophils), as well as immunoglobulin E (IgE) antibodies. Upon the initial exposure to an allergen, the immune system produces IgE antibodies which bind to the cell membranes of mast cells and basophils. The antibodies are specific to a particular allergen and serve to detect the allergen upon subsequent exposure. A second exposure results in a rapid immune response as IgE antibodies attached to mast cells and basophils bind allergens and initiate degranulation in the white blood cells. During degranulation, mast cells or basophils release granules that contain inflammatory molecules. The actions of such molecules (heparin, histamine, and serotonin) result in allergy symptoms: runny nose, watery eyes, hives, coughing, and wheezing. Allergies can range from mild hay fever to life-threatening anaphylaxis. Anaphylaxis is a serious condition, resulting from inflammation caused by histamine release, that impacts the respiratory and circulatory systems. The systemic inflammation results in low blood pressure and blockage of air passages due to swelling of the throat and tongue. Death may occur quickly if not treated with epinephrine. Type II Hypersensitivity Reactions This image shows type A blood (A antigen) that was agglutinated (clumped) by mixing the blood with a serum containing anti-A antibody. An antigen-antibody reaction agglutinated the red blood cells forming a large clump. Ed Reschke/Photolibrary/Getty Images Type II hypersensitivities, also called cytotoxic hypersensitivities, are the result of antibody (IgG and IgM) interactions with body cells and tissues that lead to cell destruction. Once bound to a cell, the antibody initiates a cascade of events, known as complement, that causes inflammation and cell lysis. Two common type II hypersensitivities are hemolytic transfusion reactions and hemolytic disease of newborns. Hemolytic transfusion reactions involve blood transfusions with incompatible blood types. ABO blood groups are determined by the antigens on red blood cell surfaces and the antibodies present in blood plasma. A person with blood type A has A antigens on blood cells and B antibodies in blood plasma. Those with blood type B have B antigens and A antibodies. If an individual with type A blood were given a blood transfusion with type B blood, the B antibodies in the recipients plasma would bind to the B antigens on the red blood cells of the transfused blood. The B antibodies would cause the type B blood cells to clump together (agglutinate) and lyse, destroying the cells. Cell fragments from the dead cells could obstruct blood vessels leading to damage of the kidneys, lungs, and even death. Hemolytic disease of newborns is another type II hypersensitivity that involves red blood cells. In addition to A and B antigens, red blood cells may also have Rh antigens on their surfaces. If Rh antigens are present on the cell, the cell is Rh positive (Rh). If not, it is Rh negative (Rh-). Similar to ABO transfusions, incompatible transfusions with Rh factor antigens can lead to hemolytic transfusion reactions. Should Rh factor incompatibilities occur between mother and child, hemolytic disease could occur in subsequent pregnancies. In the case of an Rh- mother with an Rh child, exposure to the childs blood during the final trimester of pregnancy or during childbirth would induce an immune response in the mother. The mothers immune system would build up antibodies against the Rh antigens. If the mother became pregnant again and the second child was Rh, the mothers antibodies would bind to the babies Rh red blood cells causing them to lyse. To prevent hemolytic disease from occurring, Rh- mothers are given Rhogam injections to stop the development of antibodies against the blood of the Rh fetus. Type III Hypersensitivity Reactions Arthritis is an inflammation of the joints. This colored X-ray shows the hands of an 81 year old female patient with rheumatoid arthritis. Credit: Science Photo Library/Getty Images Type III hypersensitivities are caused by the formation of immune complexes in body tissues. Immune complexes are masses of antigens with antibodies bound to them. These antigen-antibody complexes contain greater antibody (IgG) concentrations than antigen concentrations. The small complexes can settle on tissue surfaces, where they trigger inflammatory responses. The location and size of these complexes make it difficult for phagocytic cells, like macrophages, to remove them by phagocytosis. Instead, the antigen-antibody complexes are exposed to enzymes that break down the complexes but also damage underlying tissue in the process. Immune responses to antigen-antibody complexes in blood vessel tissue causes blood clot formation and blood vessel obstruction. This can result in inadequate blood supply to the affected area and tissue death. Examples of type III hypersensitivities are serum sickness (systemic inflammation caused by immune complex deposits), lupus, and rheumatoid arthritis. Type IV Hypersensitivity Reactions Contact dermatitis is a type IV hypersensitivity that results in severe skin rash. Smith Collection/Stone/Getty Images Type IV hypersensitivities do not involve antibody actions but rather T cell lymphocyte activity. These cells are involved in cell mediated immunity, a response to body cells that have become infected or carry foreign antigens. Type IV reactions are delayed reactions, as it takes some time for a response to occur. Exposure to a particular antigen on the skin or an inhaled antigen induces T cell responses that result in the production of memory T cells. Upon subsequent exposure to the antigen, memory cells induce a quicker and more forceful immune response involving macrophage activation. It is the macrophage response that damages body tissues. Type IV hypersensitivities that impact the skin include tuberculin reactions (tuberculosis skin test) and allergic reactions to latex. Chronic asthma is an example of a type IV hypersensitivity resulting from inhaled allergens. Some type IV hypersensitivities involve antigens that are associated with cells. Cytotoxic T cells are involved in these types of reactions and cause apoptosis (programmed cell death) in cells with the identified antigen. Examples of these types of hypersensitivity reactions include poison ivy induced contact dermatitis and transplant tissue rejection. Sources Hypersensitivity Reactions. Microbiology and Immunology Online.Parker, Nina, et al. Microbiology. OpenStax, Rice University, 2017.

The Tempest vs. European Colonialism - 961 Words

Colonialism is an appropriate modem for understanding the Tempest by William Shakespeare because there are many correspondences between the European-African relationship and the American-African relationship. Similar to the American-African relationship where the Europeans are the colonizers and the slaves are the colonized, the European-African relationship has Prospero as the colonizer and Caliban as the colonized. Caliban holds up the colonialist interpretation of the Tempest partly through the meaning behind his name itself. Small hints like the meanings behind the names of the certain people and places in the play subtly support the colonialist viewpoint. One such name is Caliban’s name. In a Romanian context, Caliban’s name means â€Å"blackness† which could be a reference to Africa and his slave status in society. Many different colonial references can be seen in the events of the play. For example, there is a ship, the Sea Venture, that crashes on the isl and of Bermudes and the passengers are stranded here. Similar to how Caliban has a subtle connection to the New World, Bermudes could also be seen in a similar light. Bermudes can be interpreted as the modern day Bermuda. The Tempest alludes to the colonization of Bermuda in 1612 where the indigenous people were taken as slaves similar to how Caliban is taken a slave by Prospero. This scene in the play introduces an anticipatory feeling that slavery will be prevalent in the future because Caliban longs to be freed whichShow MoreRelatedEssay on Post Colonial Interpretations of Shakespeare’s The Tempest1908 Words   |  8 PagesPost Colonial Interpretations of Shakespeare’s The Tempest â€Å"†¦do we really expect, amidst this ruin and undoing of our life, that any is yet left a free and uncorrupted judge of great things and things which reads to eternity; and that we are not downright bribed by our desire to better ourselves?† – Longinus Since the seventeenth century many interpretations and criticisms of William Shakespeare’s The Tempest have been recorded. Yet, since the play is widely symbolical and allegorical Shakespeare’sRead MoreGp Essay Mainpoints24643 Words   |  99 Pages GP NOTES 2010 (ESSAY) Content Page 1. Media a. New vs. Traditional b. New: narcissistic? c. Government Censorship d. Profit-driven Media e. Advertising f. Private life of public figures g. Celebrity as a role model h. Blame media for our problems i. Power + Responsibility of Media j. Media ethics k. New Media and Democracy 2. Science/Tech a. Science and Ethics b. Government and scientist role in science c. Rely too much on technology? d. Nuclear technology

Intern for Contrabandit.com Free Essays

For the past 10 weeks of the Fall 2004 quarter, I’ve had the opportunity to work as intern for Contrabandit.com. Contrabandit ran by West Coast political and cultural editor of the Source Ryan Ford aims to provide an uninhabited voice for the hip-hop community as well as inform most of the Minority readers of politics, social and educational news and issues that occur in the world. We will write a custom essay sample on Intern for Contrabandit.com or any similar topic only for you Order Now As a History major, with my interest in Film and Television journalism, Contrabandit has allowed me to study contemporary and cultural history through the medium of Hip-Hop music. I looked at this internship as a starting point to acquiring work experience and possibly advancing into working within the field of entertainment journalism. But as an African-American student at UCLA, Contrabandit has allowed me to chronicle events within hip-hop as they happen and apply the broader historical significance as they occur. Being an African-American student, I view hip-hop as not only just a musical art form, but also as a voice and representation of an entire community. Unlike Jazz and RB, Hip-Hop was a genre truly formed out of the African-American community after the post-civil rights movement and really feels uncorrupted by mainstream pop culture, where it sets the trend, instead of following the pack. When covering the medium of Hip-Hop music, I discovered how far reaching and expansive it has become and with my education at UCLA I’ve been able to view hip-hop from scholarly approach. The main theme I’ve noticed throughout my internship has been Hip-Hop music’s growth and the changes that become of it as it has become an acceptable musical genre generating billions of dollars for the recording industry studios. The three biggest new stories that I was able to cover were the Eminem-Michael Jackson confrontation, Russell Simmons’ Hip-Hop Summit Action Network’s Presidential voter registration campaign, and the violent incident that occurred at the Vibe Awards. On the surface there just current events that needed to be covered to feel up space on the website, but with little probing they actually had far reaching and historical impact on the website, Hip-Hop music and with me in developing my critical writing skills and applying historical analysis from my UCLA course and history major. Jackson boots Eminem off BET (published October 12, 2004) That article resulted in an immediate phone call from my editor, as well as a lecture from him on the role and responsibility of a journalist. He proclaimed my article was blatantly bias and that I was leading the reader to take one point of view or side on the issue, but my job instead was to report the facts in a news story. Which, as my editor expressed to me, is something that’s continues to occur since he beginning of entertainment, and its should not be allowed despite the fact Eminem makes a very good living off of doing â€Å"Black Music† much like Elvis, but again, difference being, Elvis never insulted a African-American musical icon like Michael Jackson, like Eminem has. I’m sure this issue will be glanced over, much like the controversy of the tapes being made public by Hip-Hop magazine â€Å"the Source†, where what occurred was an investigation into why Eminem recorded these racist lyrics, but the Source was attacked for bringing this issue to the public. I must admit, just looking on the surface of the controversy I was quick to pass judgment upon BET for what I saw as its hypocrisy by stating it would not air videos disrespectful of any celebrity. Considering that’s how they made their notoriety during the whole east coast-west coast beef that many attribute to the deaths of Tupac Shakur and Christopher â€Å"Biggie† Wallace. But my editor expressed to me that I needed take it into context along with Eminem’s previously uncovered studio recording where he’s referring to African-American men as â€Å"niggers† and African-American women as â€Å"black bitches† in a derogatory manner, is not possible to let this pass as artistic and playful expression. Again he’s shown disrespect to a community that he continues to make million of dollars off of through doing their music, and can be argued is allowed to get away with such offensive behavior because he is a white. Not just with the Africa n-American community, he’s come under fire for his anti-gay remarks from the Gay and Lesbian community, but continues to get way with or at least not suffer any ill effects, whereas if a comparable black celerity had done similar offenses, they would find it difficult to maintain the type of celerity that Eminem enjoys. Working alongside Ryan with Contrabandit, I was able to view the controversy as bigger than Eminem just poking fun and having a laugh at Michael Jackson’s expense, but greater historical, racial, and industry-wide ramification that this cause. The images of Eminem done up in â€Å"Black face† and portraying Jackson as buffoon and monster have long term consequences upon not only his image but that of African-Americans as they see one of their longest musical icons ridiculed in a way not only personally but racially offensive. And even more importantly with no consequences or accountability from Eminem. Russell Simmons; HSAN proclaims 21 million registered youth/minority voters for 2004 election(published November 4, 2004) In the aftermath of the national presidential election, it brought into prospective the efforts of voter registration among young, minority voters. The day after the election, a press release went out from Russell Simmons Hip-Hop Summit Action Network proclaiming that 21 million registered voters from 18-35 voted in the 2004 election, up from the 18 million that had voted in the 2000 election. Although that’s encouraging it was disappointing to know that the voter registration campaign and awareness of the importance of this Presidential election that still George Bush was re-elected. But looking at the numbers and statistics shows a deeper issue and problem arising in America. Working with Contrabandit got me access to covering Russell Simmons’ Hip-Hop Summit Action Network fundraiser at the Beverly Hills Hotel. Co-sponsored by Sony Playstation, the fundraiser was an entertainment industry party to bring awareness as well as funding to the organization for needed increased minority voter registration and education. Despite their efforts, the hip-hop community that was being courted by Simmons’ HSAN paled in comparison to those of the voters in the Midwestern states. I always felt it was flawed to try to reach out to the hip-hop community as despite the growing numbers of minorities, who will soon grow to be an almost equal number to the majority of White Anglo-Saxon Protestant (WASP) constituents, some of those minorities are turning towards the conservative ideology. Also there is no unity among this minority group. With more WASP senior citizens living longer, that aging Considering that ultimately the Presidential election was determined by the Midwest, as the Democratic Party hasn’t carried southern states in years, where as California and New York (with a combined 86 electoral votes) are perennial Democratic strongholds. Interestingly, the Midwest won the election for Bush and to me it was a shame that the backlash of gay marriages and abortion (as reported by news affiliates as the determining reason for voting for Bush) were more important than the situation in Iraq, terrorism, and the turbulent economy. I never want to question anyone’s beliefs or morals, but gay marriages and abortion should be an individual’s choice. Most important to take from this election is hopefully maintaining the interest of registered voters beyond this Presidential election, as there are more issues that will arise within the coming years before the 2008 election. In California on the ballot was the repealing of Proposition 187, the 3 strikes law. I understand the â€Å"spirit† of 3 strikes, incarcerating repeat violent offenders from 25 to life sentence in jails, but continually in the years since passage as laws, many third strike offenders have been non-violent repeat offenders. Some argue the old adage don’t commit the crime, won’t do the time, but there’s a bigger issue of privatized prisons making hundreds of millions of dollars off the incarceration of young prisoners and the prison system being made up of predominately African-American and Latino men. Conservative republican fan base are carrying the votes. Melee breaks out at the Vibe Awards(published November 17,2004) Lastly there was the violent altercation that occurred at the, the Vibe awards On November 16. During the four hour taping inside the hangar at the Santa Monica Airport an incident broke as Quincy Jones and Snoop Dogg were presenting an award to Hip-Hop producer Dr. Dre. An unidentified man attacked Dr. Dre, who was later assaulted y several members of his entourage and left him stabbed, later identified as rapper Young Buck by authorities. With the Vibe awards, it is yet another black eye on Hip-Hop as well as on black-themed award shows. The incident alone won’t spell the end of Hip-Hop or these musical award shows, but my over all perspective is the necessity of these award shows. Within the entertainment industry its become a joke that there are too many awards shows. Yet when it comes to black themed award shows, they are usually relegated to lesser channels like UPN and BET, and more often than not are taped delayed events. Such events as the NAACP Image Awards, BET Awards, Soul Train Awards and Soul Train Lady of Soul, Vibe Awards, and the Source Awards all fall into this category. And incidents like this further perpetuate the stereotypes of the safety issue that constantly trouble hip-hop events. Amazingly events like the Rock the Bells concerts a week earlier at Anaheim Stadium that I covered for Contrabandit(and the Source)doesn’t garner the positive press as when chaos ensues at televised events. At that event, despite some illegal drug use, the show went off without any violent altercation or incident, in front of a mostly diverse White, Latino, and Asian audience. Myself being the only amazed at this diversity and more so shows how far hip-ho p music and their artist have developed with such a diverse crowd and the artist being so comfortable in front of them. But dealing with the coverage of black themed awards shows their two sides to the argument. Those that feel that its alright that the awards shows are tape delayed and marginally watched by non-blacks because its for Blacks and its best that we have a awards show tape delayed then none at all. As a matter of fact, the NAACP dubs its annual awards â€Å"Black America’s answer to the Oscars, Emmy’s, Grammy’s, and Pulitzer, as it continues to honor overlook performances by African-American entertainers that the mainstream Hollywood community pass over. But on the other hand there is the argument that by not being a live broadcast somehow relegates it as meaningless shows that don’t really count. For starters, with most of the United States having access to the numerous channels available through cable and satellite television, and at least 5-10 music themed channels, viewing music, film and television entertainers is a lot more accessible then in any era prior to the 1990’s. Before then, it was rare being able to view entertainers outside of movies, therefore making movie and television award shows the only place to see them. Likewise for most, seeing their favorite musical artist perform â€Å"live† at awards show provided a free experience to catch them performing if they were unable to go to a concert to see them performing and this is remembering that MTV didn’t debut till 25 years ago in 1981. But with the emergence of MTV, BET, VH1, and even E!, it has provided a near 24 hour access to view these entertainers and even more so, know them beyond their music or the characters they portray on screen and films. Awards was more than just a night of honor ing actors and musician, but that rare opportunity to view them live and has human. Speaking with my editor Ryan, he allowed me to go further with this topic and try to give our readers some prospective and insight behind awards show and why they exist. Working for the Source, he gave me some inside information about the motives behind events such as the Vibe, Source, BET, and Blockbuster Awards shows: MONEY! By organizing one awards event for on night, the sponsorship and advertising for the event generates more money in one night then the magazines do for the entire year. Even the awards presentations are staged, as more then likely the winner is determined by the artist that will appear, more than who deserves to win. When you look at the BET, Source, and Vibe awards, what they provide great revenue and backlash towards to the mainstream (white) award show are not able to properly honor the hip-hop artists that were annually disregarded for their work. Honestly for the most part the Grammy’s and American Music Awards do base their nomination, and I’ m sure, there awards recipient on mainstream success. But whereas the NAACP Image awards and Soul Train music awards were created to make up for these lack honors to Black performers, these proliferation of the other awards show, seems to be purely done as promotion. The experience that I take from my time working with Contrabandit, has been invaluable in applying the classroom knowledge I acquired from UCLA towards real world situations. Without the historical significance and ramification of events as they occurred and relating them to past events, I would not have been able to elaborate upon them in my writing for the website or convey the importance to my audience at the site. How to cite Intern for Contrabandit.com, Papers

International Operations in Singapore-Free-Samples for Students

Questions: 1.Identify a potentially attractive target Market for the company's future International expansion strategy. 2.Discuss your rationale for the selection of your chosen Market. 3.Critically analyse the opportunities and threats in the firm's industrial environment in your chosen Market. 4.Critically analyse the strengths and weaknesses in the firm's Internal Environment. 5.Evaluate the various modes of entry available to the firm and recommend with justification based on the findings of your analyses. Answers: Introduction In the present scenario, development of effective strategies has become very important for the overall success of a business enterprise. It can be stated that companies operating at international level needs to develop strategies at regular intervals in order to stay competitive in the marketplace. In addition to this, organizations are also required to carry out changes in their international strategies at regular intervals as per the changing macro and micro environment of a nation. The present report is based on Tesco which is a UK based chain of grocery store, operating in different countries of the world. This report explains the potential market which can be used by the selected business organization for its international expansion in the future. Apart from this, the threats and opportunities existing in new selected international market is also highlighted in the present research. 1.Identification Of A Potentially Attractive Target Market With The Help Of Pestle Analysis Latvia Pestle Analysis Latvia is a country located in Northern Europe, more specifically in the Baltic region. Its neighbor countries are Russia, Lithuania, Estonia and Belarus. At present, Raimonds Vejonis is the president of country who has been elected in the year 2015. The political environment of Latvia is somewhat stable for doing business (Dobele and Pietere, 2015). However, it can be critically argued that its tension with Russia has really grown up in the past few years. For a brand such as Tesco, this tension can have great impact on overall sales and profitability. On the other side of this, it can be explained that Latvia is operating with an open economy which is very good for business growth. The nations GDP has grown by 1.6 in the first quarter of the year 2017 (Latvia GDP Growth Rate, 2017). An average growth rate of 4% per year can be termed as a positive sign for a brand like Tesco. It will help the company to attract more customers and maintain adequate volume of sales and profits in long run. Latvia is also facing issues linked with society and this can have impact on the operations of company such as Tesco. It can be stated that all sort of discrimination is banned in the country (Stivrins, Brown, Reitalu, Veski, Heinsalu, Banerjea and Elmi, 2015). However, women still face discrimination in context of hiring and payment. This means male candidates are being given more preference over female candidates. The society is also facing issues associated with minorities who has not received the citizen of Latvia till date. In terms of technological advancements, the country is growing at a very good pace and at present there are fifteen institutes for research and development. Adequate support from government is received in new product development and this is a good sign for Tesco. The legal environment of Latvia is very strict and every business enterprise is requi red to adhere to all the laws linked with labor and employment (Macroeconomic and Political Stability, 2017). Workers are not allowed to exceed the daily working hours which are eight hours a day and total of 40 hours in a week. At the time of carrying out its international operations in Latvia, it will be required by Tesco to adhere to all the laws strictly. In terms of environmental issues, water and air are the two major challenges which have been faced by the nation (Reeves, McKee, Gunnell, Chang, Basu, Barr and Stuckler, 2014). Apart from this, majority of Latvias forest and natural resources are getting destroyed because of acid rain. Therefore, Tesco may face issues linked with environment in future if it selects to operate in Latvia. Singapore Pestle Analysis In the last few decades, amazing economic growth rate has been achieved by Singapore. Further, there are wide ranges of factors which have contributed in attaining such economic growth. In terms of political environment, it can be stated that the politics in Singapore is very stable and this has helped many businesses to grow in adequate manner (Ho, 2014). For a company like Tesco, low political risk can be very beneficiary for achieving higher profits in the marketplace. The country operates with a vibrant and free market economy and this is a positive sign for organizations. An environment which is free from corruption can support Tesco to establish itself easily in Singaporean market. It will also help the organization in future growth and expansion. On the other hand, societies in Singapore are rich will cultural values and belief. Purchasing power of people in the country is also very high and this will help Tesco to sell its products and services easily. The rate at which technological advancements are being carried out is also very high and this can help Tesco in operating effective in Singapore. Technology will assist the brand in developing new products, interacting with people in the market and attaining higher degree of customer satisfaction (Teoh, Abhishek, Lundburg and Carter, 2013). The laws related to labor, employment and working hours are very strict and the brand will need to take care of the same. Any violation in laws will resulted in affecting the brand image and overall operations of Tesco. Apart from this, the company will also need to ensure that its operations and activities will not have any negative impact on the environment. The lack of water resources and increasing air pollution are major environment issues which have been faced by Singapore (Rose, Prager, Chen, Chatterjee, Wei, Heatwole and Warren, 2017). Taiwan Pestle Analysis It can be stated that at present the political environment of very stable as it has been now take care by Koumintang Party. Furthermore, the part y is allowing foreign companies to enter the market and assists in development of the economy. In terms of economic analysis, the country has performed economically well in the last few decades and has provided adequate growth opportunities to businesses (Harrison, 2013). The rate of employment is nearly about 4.2% and majority of people are employed. At the time of carrying out its operations in Taiwan, Tesco will be required to make sure that it adheres to its social culture which is generally influenced by China. The legal environment for doing business in Taiwan is a bit complex and the brand may face issues linked with tax and legal formalities (Smith, ed., 2014). On the other hand, Tesco will be also required to make sure that its working policies and practices complies with the environment laws which has been developed by the country. Any kind of violation in these laws may result in creating obstacles for Tesco in terms of doing business in Taiwan. Deeper analysis of selected Singaporean market According to the report which has been developed by competitiveness survey, it has been analyzed that the market of Singapore is considered as one of the best and most effective markets to do business. There are adequate businesses opportunities present in the country and the market is also known for its international business position. It can be explained that there is wide range of factors which have contributed in making Singapore a popular market for doing business. For example, the country is located in the middle or heart of Southeast Asia and such kind of strategic location helps the country to attract international investments from all across the world. An international organization operating in Singapore has the opportunity to connect with more than 3 billion people only by taking a flight of few hours. Furthermore, the infrastructure and basic amenities in the above-selected market are so effective that businesses are able to carry out their day to day activities with ease. The environment provided by Singapore in terms of doing business is another major factor which has resulted in making the market so popular. From the research carried out, it has been analyzed by the researcher that the policies related to immigration are very flexible in Singapore and this provides the market with a competitive advantage over other international countries. It is not difficult for companies such as Tesco to set up stores in Singapore and expand its market share internationally. The above-selected market is also having a high number of free trade agreements which will support company such as Tesco to carry out its business activities easily. The customers in Singaporean market are open-minded and usually, prefer straight talking. This will benefit Tesco in terms of an understanding culture of the country and develop services/products according to the same. Apart from this, the company will not face issues linked with human resources hiring and recruitment in Singapo re. The rationale behind this is that the selected market is having one of the best professional workforces in the entire world. The reason why Singapore market is more suitable as compared to the other two markets is that here Tesco will not require investing large resources in terms of training and development of employee as the workforce here is already skilled. 2.The Rationale Behind Selecting Singapore Market For a brand like Tesco, it is very beneficial to expand its operations in Singapore. There are wide ranges of factors available in the country and these factors can assist the company in achieving long term growth and profitability. As compared to other nations of the world, Singapore has largest per capita foreign reserves. Furthermore, the country also has best education facilities and this can help Tesco in acquiring talented and effective human resources. Skilled and talented labor is easily available in the country and the brand will not face issues linked with recruitment and selection of employees for its stores in Singapore. It can be asserted that if the brand opts for expanding its international operation in the above mentioned market, then it will be always available with pool of skilled, effective and talented personnels (Research Bulletin, 2017). The company will not face issues in terms of registration and doing business in Singapore. The country is completely free from all sorts of corruptions and this can be an added advantage for Tesco if it selects to choose Singapore as a market for international expansion. There are proper channels developed for carrying out documentation, paper work and registration. In addition to this, Singapore has different channels for government fund which can be used by Tesco for funding and establishing its business. Other than this, the growing economy of country will support Tesco in acquiring higher market share and carry out its operations easily. At present, the brand is facing intense competition from brand such as Asda, Lidl and Aldi. Therefore, it is no longer easy for Tesco to attract customers and acquire high market share in UK. The organization will also get advantage of tax benefits which has been provided by the government of country. However, it can be critically argued that the brand will need to make sure that it follow polices, laws linked environment and business regulations. At the same time, challenges related to acquiring land will be faced by the company. The geographical area is less and because of this reason the prices are very high. In addition to this, the land is not easily available and this can create issues for brand such as Tesco at the time of expanding its operations in Singapore. However, it takes only 12 days to open a company in Singapore because the business environment and support from government is very good (Grocery Retailers in Singapore, 2017). Transparent systems are another major benefit which Tesco will have in doing business in the above mentioned country. Singapore is an open marketplace for many UK based organizations and this can be an added advantage. At present government is investing money in small cities of the country. The money is generally invested with objectives of research and infrastructure development. Large number of corporate buildings and business parks can be easily found in the country. Another key reason why Singapore is more beneficial in terms of doing business is that it can provide Tesco with an opportunity to link itself with other Southeast Asian countries (Why Choose Singapore? 2017). On the other hand, the supermarket retailer will need to take care of the fact that the interference of government in entire process of decision making is very high. This means that at the time of expansion, implementing strategies and innovations, the organization may require to take approval from the government. Along with this, Tesco will be required to respect the values, belief and culture of Singaporean people at the time of carrying out its business operations. The selected grocery store may be required carrying out certain changes in its products and services as per the culture and need of people living in the country. However making changes in products and following the laws will help the company in carrying out its business operations in desired manner. Thus, it can be stated that there are wide range of benefits available for Tesco in terms of doing business in Singapore. 3.Opportunities And Threats In The Firms Industrial Environment In order to successfully operate in the new market of Singapore it is necessary for business to carry out industrial analysis as with the help of this opportunities along with threats can be easily determined. Company like Tesco is planning to enter into the market of Singapore for which proper analysis is required to be done with the help of porter five forces. Through this model it can be easily known what the ranges of external factors affecting business operations are. No doubt, Tesco carries out its operations in retail sector where large numbers of challenges are being present which prevents business from accomplishing its desired goals and objectives. Porter five forces as one of the model highlights the range of external factors affecting business performance and it takes into consideration bargaining power of buyer, supplier, threat of substitute, competitive rivalry etc. Below shown is the applicability of porter five forces on company. Bargaining power of buyer: This factor highlights the overall power of buyer to dominate the market. Tesco carries out its operations in the market where competition level is high and due to this reason bargaining power of buyer is high (Schlegelmilch, 2016). In case if any single product has to be purchased by consumer then large numbers of alternatives are present and due to this reason company has to set moderate prices for its products in the market of Singapore. In case, when products contains some unique attributes then in such case switching cost is lower and it becomes possible for buyer to switch from one brand to another. Apart from this, it has been witnessed that consumers are easily attracted towards products which have low price and this becomes beneficial for organization in every possible manner. Bargaining power of supplier: In the retail market suppliers do not holds much power to dominate the market and their bargaining power is low. Individuals who are supplying goods are inclined towards food and grocery retailers and they have fear of losing contract with large supermarkets (Lapoule and Colla, 2016). So, this can assist Tesco to operate efficiently in the market of Singapore. Threat of substitute: In case of Tesco, threat of substitute is high as the products offered by company are already offered by other retail chains in the market of Singapore. Further, companies like Jasons market place, U Star supermarket, Yes supermarket etc are offering grocery products and they have large supermarket chain. In short, the substitutes of Tescos products are easily present in the market and the overall level of threat is also high. This hurdle can adversely affect position of business in the new market as company is new to this market and other players are well established. In order to deal with this factor it is necessary for business to highlight the basic attributes in the products so that customers can be attracted easily (Morden, 2016). Threat of new entrants: It is low in case of Tesco as company conducts its operations on wider basis and to operate at such big level large investment is needed. Apart from this, other companies operating in the market of Singapore also have wide network and they have allocated larger funds to set up their business. So, initially in case if any small business wants to enter into the retail market of Singapore then in such case there will be no threat to company like Tesco. Moreover, if any well known chain wants to enter into the market then it will act as hurdle for the business. Rivalry among existing firms: In the retail market of Singapore well established players are present in the market such as Giant, YES supermarket, Ang Mo supermarket etc. Due to this basic reason rivalry among existing firms is quite high in the market and it is a kind of situation linked with perfect competition. In near future, it can act as hurdle for Tesco as company has to deal with the issues at the time of earning higher profits and market share. In short, every firm is offering substitute of each other and this has acted as hurdle where organizations are not able to focus on accomplishment of their goals and objectives (Bischoff, 2016). The overall Porter five forces model has shown that some factors are in favorable and unfavorable for business in the retail market of Singapore. Tesco as one of the brand name can allow business to attract customers in the new market. Moreover, companys core competencies along with other type of strengths can support in dealing with the range of issues being present in the business environment. Due to presence of high level of competition it would not be possible for Tesco to dominate the market and for the same business is required to focus on marketing, branding and other areas which are associated with its development and betterment. No doubt, the external environment is full of challenges but through corrective measures and actions it will be possible for company to survive in the new market for longer period of time. 4.Strengths And Weaknesses In The Firms Internal Environment Internal environment of any business takes into consideration strengths along with weaknesses which needs to be considered necessarily especially at the time when business enters into new market. For conducting internal analysis of Tesco VRIO framework has been applied with the help of which key elements have been taken into consideration which are valuable, rare, cost to imitate and organized to capture value. Valuable: This factor is associated with the range of resources which are valuable for business (Zurabovna, 2016). Large numbers of resources are being present with Tesco which are valuable and they have supported in providing competitive edge to the company over its rivalry. Human as one of the resources is valuable for Tesco where all the employees present within workplace supports business to survive in different markets. They are assigned responsibility to develop various strategies which in turn allows delivering best products and services to the customers as per their expectations. Technology as one of the resource is also valuable where Tesco carries out overall operations with the help of advanced tools and this leads to higher profits. Rare: These resources are the real core competencies of the business which allows performing efficiently in the market. Further, Tesco has some rare resource such as its global presence in the market which is quite strong. Products and services of Tesco are worldwide famous which allows entity to attract large number of customers in short period of time. Moreover, in terms of quality company offers superior quality products to its target market which it may not be possible for other supermarket chains operating in the market of Singapore. Utilizing rare resources in effective manner is necessary for company like Tesco as through this business can efficiently work for longer period of time and in turn its target goals can be accomplished easily (Akter, Wamba, Gunasekaran, Dubey and Childe, 2016). This can become one of the main reason behind success of entity in the market and can act as development tool in every possible manner. Inimitable and non substitutable: This factor highlights that some resources are present with company whose substitutes are not present in the market and this provides direct advantage to the business (Pawliczek and Rssler, 2016). Human, financial, technology as the key resources present with Tesco are non substitutable which other companies operating in the market may not have. Apart from this, other firms may not buy such resources and this directly provides advantage to the business. Moreover, it is necessarily required for Tesco to organize all these resources in appropriate manner so that its long term performance can be well maintained with the help of this. Tesco operates with advanced tools and this has simplified the major operations being carried out by company. Apart from this, the well maintained brand image in the market which other companies may not have provides direct advantage to the company. Organized to capture value: It is the last factor in framework which states that a business is required to organize or manage its key resources in proper manner so as to deliver high value to the target market. Global market presence is one of the major element which needs to be organized in proper manner with the motive to capture value. Along with this, human as one of the resource needs to be organized in appropriate for effective working in the market of Singapore. This can surely provide long term benefits to Tesco in the new market and can act as development tool. So, the applicability of VRIO framework has shown the internal strengths of Tesco which can be easily utilized in the market of Singapore. On the other hand, it is necessary for company to prepare effective strategies to overcome with its weaknesses as it can hamper performance in the new market. Moreover, through proper utilization of strengths business can easily grab opportunities present in the business environment. Strong brand presence at global level will surely allow to deal with the issue of high competition level in the market where Tesco can easily become leader in the Singapore market. 5.Evaluate The Various Modes Of Entry Available To The Firm In order to successfully enter into the new market it is necessary for business to adopt appropriate entry mode which can support in enhancing profitability level along with the market share. Different market entry modes are present which involves exporting, licensing, joint venture, direct investment etc (Hollender, Zapkau and Schwens, 2017). It depends on every business which mode to choose as it is necessary to consider cost along with the level of return obtained by choosing mode. In case of Tesco, as organization is planning to expand operations in the market of Singapore and in turn case the most suitable option for company is direct investment. The main reason due to which this mode is appropriate for business as Tesco has strong presence in the global market. Further, business is financially strong due to which direct investment is possible. Tesco has direct knowledge of the local market where company operates and is well aware about the customers taste and requirement. This will support in the market of Singapore as organization can apply knowledge and expertise in the new market also. No doubt, organization may not have proper knowledge regarding customers preferences of the new market. Therefore, conducting market analysis is must so as to satisfy customers requirement. Tesco is specialized in large number of areas such as in new product development, understanding need and requirement of target market etc. So, this can encourage in attracting new customers in short period of time and in turn products of Tesco will be popular in the market of Singapore also. But the key challenging task is to manage all the crucial resources in the new market such as human, technology etc which are necessary to conduct operations (Surdu, Mellahi and Glaister, 2016). Tesco is not well aware about the market of Singapore and due to this reason gaining more insights and information is must. Further, it is necessary for business to hire local residents as they can provide reliable information to the business regarding customers taste and preferences. Apart from this, there is no doubt that this foreign entry market requires high investment but on the other side return level will also be high which is beneficial for company in every possible manner. Moreover, joint venture as one of the strategy which can be undertaken by Tesco where company can work jointly with other local firm operating in the market of Singapore. Through this type of market entry mode Tesco can easily grab large number of benefits which involves profits at low cost. Risk associated with carrying out business in the market is directly shared when this type of market entry mode is being chosen (Schellenberg, Harker and Jafari, 2017). Further, Tesco can build better plans with the help of local firm operating in Singapore. Core competencies of both the companies can allow in gaining competitive edge and in turn long term benefits can be obtained easily. Along with this, shared cost, expenses, benefits are the other advantageous of this entry mode which can be beneficial for Tesco in every possible manner in the new market. Related market entry method For a company such as Tesco, entry method such as direct investment will be more suitable. The rationale behind this is that this method will help the selected business enterprise to have complete control over areas such as strategy formulation and decision making. In addition to this, the direct market entry will also support Tesco in interacting directly with customers and getting reviews about products/services in the new market. Another reason why entering directly into the market is appropriate is that it will help the selected organization to protect its goodwill, patent, and trademarks in more effective manner. Theories of internationalization Internationalization can be defined as the process in which companies carries out certain changes in their products and services with an objective to make them adaptable in different cultures and nations. The two different theories of internationalization are explained below as: The opportunistic growth theory of international expansion- This theory lays emphasis on making out the best possible of advantages of circumstances and opportunities available in front of business. The application of this theory can help grocery retailer such as Tesco to enhance its overall ability to react and respond to opportunities available in the marketplace. Goshal and Bartletts Model of innovation process- This model of internationalization provides different types of structure which can be used by international business (Hollender, Zapkau and Schwens, 2017). The structures are classified into four different categories which are global for home, local for home, centralized and decentralized. For a company like Tesco, decentralized structure is beneficial as it lays emphasis on developing a culture and system as per the need of local market. Conclusion From the above carried out study, it can be concluded that macro environmental analysis of a country is very important before carrying out international expansion. It helps businesses to identify potential opportunities and threats available in the marketplace. On the basis of above research, it can be inferred that it is beneficial for Tesco to expand its international operations in Singapore as compared to companies such as Taiwan and Latvia. The reason for this is support from government, low tax rates and strong business culture present in the country. References Books and Journals Akter, S., Wamba, S.F., Gunasekaran, A., Dubey, R. Childe, S.J., 2016. How to improve firm performance using big data analytics capability and business strategy alignment?.International Journal of Production Economics,182, pp.113-131. Bischoff, A.L., 2016. Porters Five Forces. Innovation through Business, Engineering and Design. Dobele, L. and Pietere, A., 2015. Competitiveness of social entrepreneurship in Latvia.Regional Formation and Development Studies,17(3), pp.40-50. Harrison, A., 2013.Business environment in a global context. Oxford University Press. Ho, J.K.K., 2014. Formulation of a systemic PEST analysis for strategic analysis.European academic research,2(5), pp.6478-6492. Hoeller, P., Joumard, I. Koske, I., 2014. Reducing income inequality while boosting economic growth: Can it be done? Evidence from OECD countries.The Singapore Economic Review,59(01), p.1450001. Hollender, L., Zapkau, F.B. Schwens, C., 2017. SME foreign market entry mode choice and foreign venture performance: The moderating effect of international experience and product adaptation.International Business Review,26(2), pp.250-263. Lapoule, P. Colla, E., 2016. The multi-channel impact on the sales forces management.International Journal of Retail Distribution Management,44(3), pp.248-265. Morden, T., 2016.Principles of strategic management. Routledge. Pawliczek, A. Rssler, M., 2016. Knowledge of Management Tools and Systems in SMEs: Knowledge Transfer in Management.Knowledge Management Initiatives and Strategies in Small and Medium Enterprises, p.180. Reeves, A., McKee, M., Gunnell, D., Chang, S.S., Basu, S., Barr, B. Stuckler, D., 2014. Economic shocks, resilience, and male suicides in the Great Recession: cross-national analysis of 20 EU countries.The European Journal of Public Health,25(3), pp.404-409. Rose, A., Prager, F., Chen, Z., Chatterjee, S., Wei, D., Heatwole, N. Warren, E., 2017. Uncertainty analysis. InEconomic Consequence Analysis of Disasters(pp. 87-97). Springer Singapore Schellenberg, M., Harker, M. Jafari, A., 2017. International market entry mode: a systematic literature review.Journal of Strategic Marketing. Schlegelmilch, B.B., 2016. Marketing: A Global Discipline. InGlobal Marketing Strategy(pp. 1-19). Springer International Publishing. Smith, C.A. ed., 2014.Regional analysis: Economic systems(Vol. 1). Academic Press. Stivrins, N., Brown, A., Reitalu, T., Veski, S., Heinsalu, A., Banerjea, R.Y. Elmi, K., 2015. Landscape change in central Latvia since the Iron Age: multi-proxy analysis of the vegetation impact of conflict, colonization and economic expansion during the last 2,000 years.Vegetation History and Archaeobotany,24(3), pp.377-391. Surdu, I.M., Mellahi, K. Glaister, K.W., 2016. Emerging market multinationals international equity-based entry mode strategies: review of theoretical foundations and future directions.International Marketing Review. Th, T.T., Abhishek, B., Lundburg, A. Carter, M., 2013, January. Evaluating new learning technology in Asia-using Singapore as a case study. InInternational Conference on Infocomm Technologies in Competitive Strategies (ICT). Proceedings(p. 63). Global Science and Technology Forum. Zurabovna, P.O., 2016. Theoretical Framework of Vertical Integration in Strategic Management.Science, education, society: tendencies and future development,2, pp.204-208. Online Grocery Retailers in Singapore, viewed 16th June 2017, from https://www.euromonitor.com/grocery-retailers-in-singapore/report. Latvia GDP Growth Rate, viewed 16th June 2017, from https://tradingeconomics.com/latvia/gdp-growth. Macroeconomic and Political Stability, viewed 16th June 2017, from https://www.liaa.gov.lv/en/invest-latvia/why-latvia/macroeconomic-and-political-stability. Research Bulletin, viewed 16th June 2017, from https://kfcontent.blob.core.windows.net/research/531/documents/en/singapore-retail-market-q1-2017-4650.pdf. Why Choose Singapore, viewed 16th June 2017, from https://www.guidemesingapore.com/business-guides/incorporation-guides/introduction-to-incorporation/why-choose-singapore

Going global, Acting local

Introduction According to Swart and Kinnie (2003), globalization is closely related to international marketing. Nonetheless, some of the accelerating factors that have led to globalization include increased foreign direct investment and exports. Nonetheless, globalization is widely considered to be an integration of financial markets (Richard Geoffrey, 2004). In respect to this, globalization in international business is believed to have various facets (Pech Slade, 2003).Advertising We will write a custom report sample on Going global, Acting local specifically for you for only $16.05 $11/page Learn More With respect to this, Mintzberg and Lampell (2000) believed that globalization is the merging of separate and distinct national markets to a single enormous global market. On the other hand, it is believed by Mangena and Brent (2006) that product globalization entail sourcing of services and goods from various locations around the world in order to tak e advantage of differences in terms of their quality and cost factors of production. On the other hand, localization relates to differentiation where by differences of tastes and preferences of customers are put into consideration in business operations (Krozer, 2008). Nonetheless, glocalization is taken to be the integration of both globalization and localization where by a business entity positions itself both globally and locally. In respect to this, the paper explores different definitions of globalization, localization and glocalization and thereafter analyzes product as a marketing mix of Disneyland, IKEA and MacDonald in their globalization, localization and glocalization strategies (Brecher Tim, 2004). A discussion and debate on global, local and glocal strategies based on Disneyland, IKEA and MacDonald brands Globalization According to Yucel (2009), globalization is the relentless integration of markets, nations and technologies in enabling people, organizations and nations to reach the world farther, deeper, faster and cheaper than ever before. This helps in spreading free capitalization of the market to all countries of the world. From this definition, Barnet (2009) believed that globalization is a process that helps in promoting integration of ideas, culture, goods and services. Yet still, according to Hanna (2010), globalization is a process that is driven by two main macro factors which include reduction of barriers to flow of services and goods and rapid technological change. This was believed by Gerardo and Wong (2008) to be the major inhibiting factors to global integration of business before the Second World War. However, with the end of the war, global institutions such as United Nations, World Bank, International Monetary Fund among others were formed to help reduce these barriers hence paving way for globalization to take effect (Gerardo Wong, 2008). By doing so, globalization was boosted.Advertising Looking for report on business e conomics? Let's see if we can help you! Get your first paper with 15% OFF Learn More On the other hand, it was postulated by Fredrickson (2010) that technological development that have been experienced in the recent years in the field of information processing, communication and transportation technologies have been paramount in advancing globalization. This position was also advanced by Eckerson (2006) who believed that modern technologies have enabled products and services to be developed with global standardized features. As a result, consumer preferences and tastes have become global hence contributing to globalization. Example of globalization IKEA globalization strategy used technology in designing unassembled furniture that could be easily shipped to any part of the world. This strategy by IKEA was taken so that its products could be easily spread to all corners of the globe as clients were given the option of assembling their own products. However, globalization str ategy applied by Disneyland failed to appeal to other markets in its initial stages as it was designed specifically for the US market. Later, the firm was able to diversify its entertainment products to fit various regional markets hence attaining a global status. On the other hand, Macdonald’s was successfully in going global as it took advantage of advanced technology which it used in streamlining services and improving its efficiency in its products provision. Localization The word localization is given different definitions by different authorities (Ehnert, 2009). According to Drummond and Ruth (2008), localization is defined as a process of adapting a product or a service to a locality. Moreover, it is defined by Burn and Barnett (2008) as an adaptation of a product or a service to an environment that is not native. Furthermore, location according to Bruijn and Veld (2010) is defined as the business operation in various states while adjusting these products and services to suite their respective states. For that case, Botha and Brink (2007) postulated that localization focuses on reducing differences in provision of products and services in order to suite these local needs in the operating environment. In addition, localization is defined to be a process that is based on various theoretical foundations (Wariavwalla, 2008). According to Sklair (2010), one of the foundations is the consumer homogeneity. Since business processes is localized, the environment is to a large extent homorganic in nature. As a result, extend of adaptation is limited as compared to globalization (Rostow, 2002).Advertising We will write a custom report sample on Going global, Acting local specifically for you for only $16.05 $11/page Learn More Besides, localization is defined to be the process of reversing globalization trends in favor of the local community (Robertson, 2002). In this respect, the local community can be a state or a number of s tates in a regional grouping. All the same, localization according to Polanyi (2004) is defined as the process of taking products and services and making them culturally and linguistically appropriate to the targeted locale which may be a region or a country. On the other hand, it is believed by Moody (2007) that localization is the customization of product components for a specific target market. This helps in building a strong connection with clients in that particular area. Example of localization A good example of localization is the strategy used by Disneyland in entering the Chinese market. It achieved this by making translation of all foreign lyrics to local contents that were well received by its new markets. Moreover, it was well exemplified by IKEA as it continued to use strategies of differentiation which helped it to spread its products globally but with local tastes. Furthermore, the strategy was applied by Macdonald’s as it provided localized products for specif ic regions it was expanding to. For instance, meat and pork products were never provided in the Indian market and instead vegetable products were given as per the preferences of this market. Glocalization According to McMichael (2006), glocalization is a term that has been developed recently as a result of the difficulties experienced from globalization process. Therefore, it is postulated to mean processes that seek uniformity of tactical strategies that are localized. This was concurred with Kasarda and Edward (2001) when they postulated that glocalization is the act of thinking globally while acting locally. This was furthered by Kanter (2005) when he believed that although consumers in most cases have similar lifestyles, their traditional values and cultures do not disappear. As a result, marketing approaches need to put these differences into consideration when coming up with products for consumers (Clegg Hardy, 2009). This kind of process is believed to be glocalization (Lync h, 2006). On the other hand, it was believed by Kanter (2005) that glocalization in business environment means micro marketing where by marketing of goods and services are tailored on a global basis to increase differentiated local and specific markets. This position was affirmed by Knights and Roberts (2002) when they defined glocalization as the construction of increasing differentiated clients based on their traditions. Nonetheless, Watson (2006) defined glocalization as a combination of two concepts; globalization and localization.Advertising Looking for report on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Therefore, it is taken to be the process that advances in marketing a service or a product that is distributed on a global platform but makes them to fit various local market clienteles (Healey, 2007). For instance, if the firm is selling its services on the web, it can specifically advertise these services to a specific target group of customers. Additionally, Roberts (2004) defined glocalization as developing a product or a service and distributing it globally but it must be fashioned in a manner that accommodates consumers in the local market. This view concurred with that of Foglio and Stanevicius (2007) who defined glocalization as the process of developing a product domestically and redesigning it later to meet local requirements, tastes and preferences and even abiding by the local laws. Example of glocalization This approach was used by Macdonald’s in its expansion process in India as it specifically offered vegetarian menu to suit tastes and preferences of the Indian market while maintaining its global standards. Moreover, Macdonald’s was able to maintain local face in all regions of its operation while upholding its standards. The approach of localization was used by Disneyland in its expansion process in France as it turned shows and settings to reflect the French style so as to suite local environment while retaining its global standards. On the other hand, IKEA was forced to provide a wide variety of products in furniture products with different tastes in respective regions of operation. This ensured their internationalization process as different user needs were met while upholding high standards. PESTEL Issue – Technological issue affecting Macdonald’s PESTEL is the analysis of an external macro environmental factors in which a business entity is operating in (Hauchler, 2004). As given by Kotler (2009), it stands for political, economic, social, technological and environmental factors. According to Robert (2008), all these factors affect business processes of a company and it might have no powers to control them but to adapt to them. For that matter, it is important that organizations continuously analyze their eternal environment in order to understand these macro environmental factors so as to take appropriate measures to adapt to them. For that matter, one of the macro factors that are affecting Macdonald’s is the technological issue as discussed by the paper. Current technological trends affecting Macdonald’s Technology is one of the micro environmental factors that are affecting Macdonald’s in its business operations. It works as a benchmark for company’s success. Therefore, it is important to be a head in technology in order to cope with competition with other players in the same industry (Inkeles, 2003). With respect to that, Macdonald’s has tried to apply various technologies that are available in their operating environment. For instance, in terms of m arketing its products, the firm widely applies technological tools such as web 2.0 technologies like facebook, twitter and other social sites in promoting its products (Macdonald, 2012). Moreover, Google advertisements and collaboration with other websites have largely been used to promote sales in specific regions of their operations. Nonetheless, technologies such as television, hoardings have equally been applied in promoting its products. Furthermore, inventory system in its business operations has been widely used in its business processes. This has been of great importance to its business since it has helped to prevent payment of hidden costs, helped in preventing spoiling of products hence in return, assuring effectiveness and efficiency (Macdonald, 2012). This has been made possible as some of the operations have been infused with these technologies (Greider, 2007). For instance, the inventory system and value chain management have been integrated and they help easier paymen t to stakeholders such as vendors and suppliers. This has helped the firm as it has added value to its products. Moreover, there have been some improvements in the inventory system together with its value chain has helped the company to be able to operate on a global platform. Future trends and forecasts According to Amsden (2009), technology is vital factors in attaining efficiency and effectiveness in business process. Therefore, since the company has already integrated technology in its business activities, it is expected that it will continue to move and change with these technology as it unfolds. For instance, the company will be forced to acquire wireless internet technologies that is fast growing hence replacing the traditional wired technology. Moreover, the adoption of wireless internet technology will be able to increase its business processes. In return, efficiency and effectiveness in business processes will be enhanced (Khondker, 2004). Furthermore, the company will be in a position to save its operating costs due to amalgamation of various processes that will help in cutting costs. Furthermore, it is expected in future that Macdonald will be able to integrate technology in its food production processes. Just like some of the soft drink companies are using expert systems in producing their products, it is also expected that Macdonald will be able to apply the same in its diverse products preparations. According to Albrow (2002), this will help the company by cutting to a large extent its production and operating costs as manual processes will be automated hence cutting extensively on human labor costs. Moreover, this is likely to guarantee effectiveness and efficiency in its business processes (Evans, 2006). Conclusion Globalization forms a very significant aspect in the expansion of business operation in the global market (Hilb, 2008). However, for this process to be successful in the current times, it is relatively important that an organization must consider applying both globalization and localization which converge to achieve glocalization (Hill Jones, 2009). By doing so, the business is able to ‘think globally and while acting locally’ hence satisfying needs of all customers in the global market. This is so since products can be tailored in order to maintain the local culture, tastes and preferences which help the firm to maintain its market share both on locally and internationally (Ansoff, 2000). Nonetheless, it is important to note that customers in the market require both local and global brands since they make them feel part of the wider international community while maintaining their local identity (Berman Evans, 2006). Therefore, a glocalization strategy is critical since it helps to integrate localization and globalization (Mintzberg Quinn, 2003). In relation to this, MacDonald has been very specific as it applies glocalization strategy. This has helped it to achieve effectiveness and efficiency in its business operations as it has excelled in all of its regions of operation. 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William Blount essays

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Effect of Microsofts Monopolistic Approach

Effect of Microsofts Monopolistic Approach The Effect of Microsofts Monopolistic Approach to Software Bundling on Innovation and Competition.   Contents (Jump to) Chapter 1 Introduction Chapter 2 – Literature Review 2.1 Monopolist or Fierce Competitor 2.2 Bundling, Innovative or Stifling Competition 2.2.1   Bundling Examples in Other Industries 2.3 The Case Against Microsoft Chapter 3 – Analysis 3.1 Bundling, Competitive or Market Restrictive? 3.2 Strategies to Gain Market Share 3.3 Microsoft and The European Union Chapter 4 – Conclusion Bibliography Chapter 1 Introduction When mentioning Microsoft, one’s thoughts naturally turn to computers, as the two are inexorably tied together. And while they both need each other, software was the latter development in this marriage of needs. Based upon digits, computers utilize this foundation as the basis for their computations (Berdayes, 2000, p. 76). A digit is a â€Å"†¦ numeral †¦ that represents an integer †¦Ã¢â‚¬  and includes †¦ any one of the decimal characters ‘0’ through ‘9’ †¦Ã¢â‚¬  as well as â€Å"†¦ either of the binary characters ‘0’ or ‘1’ †¦Ã¢â‚¬  (Atis, 2005). Computers utilize digits under the ‘base-2 number system’, which is also termed as the ‘binary number system’ (Berdayes, 2000, p. 3). The base-2 system is utilized in computers as it implements easier with present day technology. A base-10 system could be used, however its cost in terms of technology innovation woul d make computers prohibitively expensive (Berdayes, 2000, pp. 53-56). Via the utilization of binary digits as opposed to decimal digits, bits thus have only two values, ‘0 and 1’ (Barfield and Caudell, 2001, p. 344, 368). The preceding is important in understanding the relationship of numbers to computers as well as Microsoft’s later entrance into this world. The following provides a visual understanding of how this works: Table 1 – Decimal Numbers in the Binary System (Swarthmore University, 2005) Decimal Number Binary Number 0 = 0 1 = 1 2 = 10 3 = 11 4 = 100 5 = 101 6 = 110 7 = 111 8 = 1000 9 = 1001 10 = 1010 11 = 1011 12 = 1100 13 = 1101 14 = 1110 In computers, bits are utilized in conjunction with bytes, which are represented as ‘8-bit bytes’ that work as follows: Table 2 – 8 Bit Bytes (Barfield and Caudell, 2001. pp. 50-54) Decimal Number Bytes 0 = 0000000000000000 1 = 0000000000000001 2 = 0000000000000010 65534 = 1111111111111110 65535 = 1111111111111111 The earliest computer has been traced back to the ‘abax’, which is the Greek word that describes ‘calculating board’ as well as ‘calculating table’ which as invented in China and called the abacus, it was also used in ancient Greece, the Roman Empire, Russia, Japan, and is still in use by the blind (qi-journal.com, 2005). Operating much as the bits and bytes in the modern computer, the abacus has a vertical row of beads that represent multiples of 10, 1, 10, 100, 1,00 and so forth (qi-journal.com, 2005). The basic principle of the abacus operates in much the same manner as the modern computer, through numerical representation. The first generations of modern computers were huge in comparison with today’s small, powerful and fast machines, and needed air-conditioned rooms to dissipate the heat. Programming on the first commercial computer in 1951, the UNIVAC, was a group of related mechanisms driven my mathematical equations that had to be written in order for the UNIVAC to work on problems (hagar.up.ac.za, 2006). It would take another 6 years for the first personal computer to be developed, the IBM 610 Auto-Point, which was termed as a ‘personal computer’ because it only took one individual to operate it, however, the cost in 1957 termed at $55,000 translates in to well over $100,000 in today’s value (maximon.com, 2006). In 1975 saw the introduction of the Altair 8800, which sold for $439, with 256 bytes of RAM, which also represented the year that Bill Gates, along with Paul Allen founded Microsoft (maximon.com, 2006). Altair was seeking a computer language, which Gates and Allen delivered via a program called BASIC on 23 July 1975, which they gave the company â€Å"†¦ exclusive worldwide rights to †¦ for 10 years† (Rich, 2003, p. 34). Sold as an add-on with the Altair 8800 for $75, the preceding provided the revenue underpinnings for Microsoft (Rich, 2003, p. 35). Generating just $381,715 in 1977, Microsoft was upstaged by Apple Computers that made machines as well as their own operating system (Rich, 2003, p. 36). Apple’s success caught the attention of IBM, which was not in the personal computer market, the foregoing was the means via which Gates entered the picture with IBM based upon DOS, program it secured from Seattle Computer for just $50,000 that heralded the beginni ngs of the industry giant (Rich, 2003, p. 51). Microsoft MS-DOS represented the foundation for the beginning financial strength of the company, which would enable it to develop Windows 95 and successive versions leading to Vista in 2007. Along the way, Microsoft has been accused, rightly or wrongly, of a monopolistic approach to software bundling that has stifled competition and innovation. This paper will seek to examine this facet, its effects, how it happened and the ramifications of the statement. Chapter 2 – Literature Review 2.1 Monopolist or Fierce Competitor In â€Å"Trust on Trial: How the Microsoft Case is Reframing the Rules of Competition†, by Richard McKenzie (2000, p. 1), reflects that Microsoft in the last 25 years has become â€Å"†¦ the worlds premier software company, dominating many of the markets it has entered and developed†¦Ã¢â‚¬  and also finds itself â€Å"†¦under legal assault †¦Ã¢â‚¬  for monopolist behaviour. McKenzie (2000, p. 2) indicates that in the United States â€Å"†¦its the Justice Department against Microsoft, but behind the courtroom scenes there has been a good deal of political maneuvering by other major American corporate high-tech combatants -Sun Microsystems, Oracle, Netscape, IBM, and America Online, to name just a few who would like nothing better than to see their market rival, Microsoft, get its comeuppance in the court of law†. In this instance it is the â€Å"†¦efficacy of antitrust law enforcement has been on trial† as the Microsoft case repr esents â€Å"†¦the first large-scale antitrust proceedings of the digital age;† (McKenzie, 2000. p. 2). McKenzie (2000, p. x) reflects upon the government case against Microsoft as a monopolist, indicating that while its operating system comes â€Å" †¦ preloaded on at least nine of every ten computers containing Intel microprocessors sold in the country, if not the world† was it this that made the company a monopolist? The market dominance that Microsoft has in the fact that its operating system comes preloaded in over 90% of the computers sold was expressed by the former United States Republican candidate Robert Dole, who stated â€Å"Microsoft’s goal appears to be to extend the monopoly it has enjoyed in the PC operating system marketplace to the Internet as a whole, and to control the direction of innovation. (McKenzie, 2000, p. 28). This view was also repeated by the media as well as New York Attorney General Dennis Vacco who see Microsoft’s â€Å"†¦product development strategies are evidence of monopoly power: †¦Ã¢â‚¬  in that the â€Å" †¦ Windows operating system has become almost the sole entry point to cyberspace† (McKenzie, 2000, p. 29). It is without question that Microsoft’s dominance resulting from preloaded operating software provides it with an advantage in introducing other forms of software. But, is that simply good business practices o r predatory behaviour? For consideration, McKenzie (2000, p. 47) points to the book written by Judge Bork â€Å"The Antitrust Paradox† where he stated repeatedly †¦ antitrust should not interfere with any firm size created by internal growth †¦. And like it or not, that is how Microsoft got into the position it now enjoys. But, in all the rhetoric, there is another facet to Microsoft’s dominance, the PC manufacturers themselves. As stated by the manufacturers themselves, there simply is no other choice! (McKenzie, 2000, p. 29). Eric Browning, the chief executive of PC manufacturer Micron has said I am not aware of any other non-Microsoft operating system product to which Micron could or would turn as a substitute for Windows 95 at this time† (McKenzie, 2000, p. 30). This sentiment was also echoed by John Romano, an executive at Hewlett-Packard who advised †¦ we dont have a choice †¦ (McKenzie, 2000, p. 30). The tie-in between monopoly power and market dominance has been explained by Franklin Fisher, the chief economist for the Justice Department as Monopoly power is a substantial degree of market power, or the ability of a firm (a) to charge a price significantly in excess of competitive levels and (b) to do so over a significant period of time (McKenzie, 2000, p. 30). Fisher further asserts that Microsoft’s dominance in the market â€Å"†¦ is protected by barriers to entry in the form of economies of scale in production, network effects, and switching costs †¦ (McKenzie, 2 000, p. 30). Fisher adds that â€Å"There are no reasonable substitutes for Microsoft’s Windows operating system for Intel-compatible desktop PCs. Operating systems for non-Intel-compatible computers are not a reasonable substitute for Microsoft’s Windows operating system because there would be high costs to switching to non-Intel-compatible computers like Mac and Unix† (McKenzie, 2000, p. 30). However, the monopolistic tendencies of Microsoft have not resulted in the company charging higher prices as a result of its dominant position. This view was put forth by the chief economic consultant for the state attorneys general in that â€Å"†¦the absence of viable competitors in Intel-compatible operating systems means that Microsoft doesnt have to worry about raising its price or using its economic weight in other ways †¦Ã¢â‚¬  (McKenzie, 2000, p. 30). He asserts that â€Å" †¦ a monopolist would continue to raise its price so long as its profits rose. †¦Ã¢â‚¬  (McKenzie, 2000, p. 31). Something that Microsoft has not done. Such is inconsistent with the manner in which monopolists behave. The line of reasoning for the preceding is that â€Å"†¦the cost of the operating system represents on average 2.5 percent of the price of personal computers (and at most 10 percent for very inexpensive personal computers), so even a 10 percent increase in the pr ice of the OS [operating system] would result at most in a 1 percent increase in the price of even inexpensive PCs †¦Ã¢â‚¬  (McKenzie, 2000, p. 31). Warren-Boulton thus concludes â€Å"†¦that Microsofts price for Windows is very likely far below the monopoly price †¦Ã¢â‚¬  which is a result of â€Å"†¦the so-called coefficient of the price elasticity of demand facing any firm (the ratio of the percentage change in the quantity to the percentage change in the price †¦Ã¢â‚¬  (McKenzie, 2000, p. 31). Therefore, argues McKenzie (2000, p. 32) a monopolist would not price its product in the very low range, â€Å"†¦because a very low elasticity implies that a price increase will increase profits †¦Ã¢â‚¬ , thus the government’s case has opposing views of Microsoft’s monopolist position, a telling facet in considering the overall implications of the company. The foregoing direct contradicts Franklin Fisher’s, the chief economist for the Justice Department, claims that Microsoft earns â€Å" †¦ superhigh profits †¦Ã¢â‚¬ , which its low prices does not support (McKenzie, 2000, p. 32). Thus, in being a so-called monopolist, Microsoft’s pricing policies do not reflect the behaviour of one. The complicated market, competitive, product and business realities of Microsoft in a competitive market must also be viewed as the company taking actions to protect its position through new product introductions as well as making it difficult for compe titors to gain an edge, the manner in which all firms operate if they intend to remain in business and continue as market leaders. The fact that Microsoft provides its Internet browser free along with its operating system, serves the interest of customers in that they have this feature already available in the purchase of their computers. It also represents a competitive action that limits other browsers from gaining an edge in the market. McKenzie (2000, p. 32) aptly points our that â€Å" †¦ Any firm that is dominant in a software market isnt likely to want to give up its dominance, especially if there are substantial economies of scale in production and network effects in demand †¦Ã¢â‚¬ , something with both Fisher as well as Warren-Boulton indicate is true in the software industry. McKenzie (2000, p. 32) adds that if Microsoft where to start losing market share for its operating system â€Å"†¦it could anticipate problems in keeping its applications network intact, which could mean its market share could spiral downward as a new market entrant makes sales and those sales lead to more and more applications being written for the new operating system †¦Ã¢â‚¬ . The flaw in the monopolist argue, as pointed out by McKenzie (2000. p. 34) is that even if a company had a 100% share of the market â€Å"†¦it must price and develop its product as though it actually had market rivals because the fi rm has to fear the entry of potential competitors †¦Ã¢â‚¬ . To make his point, McKenzie (2000, p. 34) points to classic microeconomics textbooks that teach that a monopolist represents a ‘single producer’ â€Å"†¦that is capable of restricting output, raising its prices above competitive levels, and imposing its will on buyers †¦Ã¢â‚¬  therefore in the position of the U.S. Justice Department, Microsoft’s high, 90%, market share is a near or almost monopoly, that McKenzie (2000, p. 34) aptly states is like almost being pregnant, you either are or you aren’t. To illustrate his point, McKenzie (2000, p. 34) points to the company called Signature Software, which at the time had â€Å"†¦100 percent of the market for a program that allows computer users to type their letters and e-mails in a font that is derived from their own handwriting†. He adds that despite it being the singular producer in the market, the company â€Å"†¦prices its software very modestly, simply because the program can be duplicated with relative ease.† McKenzie (2000, p. 34) also points out that Netscape at one time almost completely dominated the browser market, yet did not price its advantage in monopolist fashion. In protecting its position, Microsoft developed and introduced new products, all of which any other firm had the opportunity to do and thus innovate, yet such did not happen. McKenzie (2000, p. 137) asserts that the aggressive development of new products by Microsoft was in defense of its market position as well as being good marketi ng and customer satisfaction practices. He points to the following innovations by Microsoft that helped to cement is market dominance and stave off competitive inroads, all of which could have been created by other firms (McKenzie, 2000, p. 137): 1975 Microsoft develops BASIC as the first programming language written for the PC. A feat that could have been accomplished by anther firm had they innovated and gotten the initial contract with Altair for the 8800. 1983 Microsoft developed the first mouse based PC word processing program, Word. 1985 The company develops the first PC based word processing system to support the use of a laser printer. 1987 Microsoft’s Windows/386 became the first operating system to utilize the new Intel 32-bit 80386 processor. 1987 Microsoft’s introduces Excel, the first spreadsheet that was designed for Windows. 1989 Word became the first word processing system to offer tables. 1989 Microsoft Office becomes the first business productivity application offering a full suite of office tools. 1991 Word becomes the first productivity program to incorporate multimedia into its operation. 1991 Word version 2.0 becomes the first word processing program to provide drag and drop capability. 1995 Internet Explorer becomes the first browser to support multimedia and 3D graphics 1996 Microsoft’s Intellimouse is the first pointing device to utilize a wheel to aid in navigation. 1996 Microsoft introduces Picture It, the first program to permit consumers to create, enhance and share photo quality images over their PC’s. 1997 DirectX becomes the first multimedia architecture to integrate Internet ready services. 1998 Microsoft’s WebTV in conjunction with the hit television show Baywatch becomes the first internationally syndicated Internet-enhanced season finale. 1999 Windows 2000, which later becomes Windows NT adds the following innovations as firsts to a PC operating system, Text to speech engine, Multicast protocol algorithms that are reliable, Improvements in the performance registry, Inclusion of DirectX, Vision based user interfaces, Handwriting recognition, and a number of other innovations to enhance its operating system, and maintain as well as increase its market position. The preceding represents examples of innovation spurred by Microsoft that could have been introduced by its competitors in various fields first, but where not. Thus, Microsoft in these instances, as well as others introduce consumer enhancing innovations to further its market dominance through aggressive new product development, a path that was open to others as well. 2.2 Bundling, Innovative or Stifling Competition Rosenbaum’s (1998) book â€Å"Market Dominance: How Firms Gain, Hold, or Lose it and the impact on Economic Performance† provides a perspective on the means via which companies gain as well as lose market share, and the tactics they employ to best their competition. Few people remember that when Microsoft introduced Microsoft Word and Excel, the dominant software programs for word processing and spreadsheets were Lotus 1-2-3- and WordPerfect (Rosenbaum, 1998, p. 168). In fact, WordPerfect was the application found in all businesses, period (Rosenbaum, 1998, p. 168). Each of the preceding applications cost approximately $300, which Microsoft bested by selling his Office Suite program for $250. Through providing limited use Word programs in Windows, consumer had the chance to test Word before buying it (Rosenbaum, 1998, p. 168). More importantly, Microsoft’s spreadsheet, word processing, presentation programs were simply better and easier to use that the competitio n. By innovatively offering a free limited version of Word with the operating system, Microsoft induced trial, to which it had to follow up on with a better product. In looking at competitive practices and competition analysis, there is a relationship that exists between the structure of the market and innovation, to which Hope (2000, p. 35) poses the question as to â€Å"†¦whether monopoly is more conducive to innovation than competition †¦Ã¢â‚¬ . Hope (29000, p. 35) indicates that in response to the foregoing, there is no â€Å"†¦clear-cut answer, probably because there is none †¦Ã¢â‚¬ . Hope (2000, p. 35 puts forth the theory that â€Å"†¦Most economists, and virtually all designers of competition policy, take market structure as their starting point as something which is somehow, almost exogenously, given (although it may be affected by competition policy), and which produces results in terms of costs, prices, innovations, etc †¦Ã¢â‚¬  However, Hope (2000, p. 35) tells us that this is wrong, based upon elementary microeconomics, as â€Å"†¦Market structure is inherently endogenous†¦ (and is) â⠂¬ ¦ determined by the behaviour of existing firms and by entry of new ones, simultaneously with costs, prices, product ranges, and investments in RD and marketing†. Exogenous variables, if they in fact exist in a particular situation, represent facets such as product fundamentals such as â€Å"†¦production processes, entry conditions, the initial preferences of the consumers, variables determined in other markets, and government policy †¦Ã¢â‚¬  (Hope, 2000, p. 35). As a result, Hope (2000, p. 35) advises that the questions as to whether â€Å"†¦there will be more innovation with monopoly than with competition is no more meaningful than to ask whether price-cost margins will be higher if costs are high than if they are low †¦Ã¢â‚¬ . 2.2.1 Bundling Examples in Other Industries Aron and Wildman (1999, p. 2) make the analogy of Microsoft’s bundling methodology with that of cable television whereby a broadcaster how owns a â€Å"†¦ marquee channel can preclude competition in thematic channels (such as comedy or science fiction channels) by bundling their own thematic channels with the †¦Ã¢â‚¬  marquee channel. The preceding illustrates the idea that consumers tend to value channels such as HBO, Cinemax and Showtime that their reputation helps to cause consumers to consider other program platforms they offer. These channels advertise their other channels on their marquee stations and vise versa, offering bundling of channels at reduced prices to encourage purchase. Aron and Wildman (1999, p. 2) offer the logic that â€Å"†¦a provider that attempts to compete by offering a thematic channel on a stand-alone basis, without an anchor channel, would not be able to survive the competitive pressure of a rival with an anchor.† The argume nt that having a marquee channel, or anchor, is key to the viability of broadcasters is supported by the development of pay television in the United Kingdom. Aron and Wildman (1999, p. 2). The dominant pay television supplier is BSkyB which controls â€Å"†¦most of the critical programming rights in Britain, enabling it to use bundled pricing to execute a price squeeze against rivals †¦Ã¢â‚¬  which as in the case of Microsoft â€Å"†¦the pay television industry is that a firm that monopolizes one product (here, an anchor channel) can effectively leverage that monopoly to preclude competition in another product market by using bundled pricing† (Aron and Wildman, 1999, p. 2). Aron and Wildman (1999, p. 3) provide another example of how firms utilize bundling to inhibit their competition, through the example of Abbott and Ortho laboratories, which produce blood-screening tests utilized to test blood that is donated for viruses. Interestingly Abbott produced all five of the test utilized to check for viruses, whereas Ortho only produced three, thus Abbott bundled the five tests in a manner that Ortho was unable to compete, thus effectively making it a monopolist (Aron and Wildman (1999, p. 3). Were these good business practices that this enabled Abbott to increase its market share at the expense of another company that did not innovate in producing all five tests to complete? Ortho claimed that â€Å"†¦Abbott was effectively a monopolist in two of the tests, Ortho claimed that Abbott could and did use a bundled pricing strategy to leverage its monopoly into the other non-monopolized tests and preclude competition there† (Aron and Wildman, 1999, p. 3). The preceding examples show â€Å"†¦that a monopolist can preclude competition using a bundled pricing strategy †¦Ã¢â‚¬  (Aron and Wildman, 1999, p. 3) and that in so doing can accomplish such without charging prices in excess of what is reasonable for their customers, which makes sound business sense in that capturing the market thus eliminates the need for such, and also provides the business condition that prevents competitors from re-entering the market at lower prices. Thus it is rational for a monopolist to behave as if competitors exist, which in fact they will if it provides such an opportunity through increased pricing. The examples indicated show that â€Å" †¦ it is indeed possible in equilibrium for a provider who monopolizes one product (or set of products) to profitably execute a fatal price squeeze against a rival in another product by using a bundled pricing strategy† (Aron and Wildman, 1999, p. 3). 2.3 The Case Against Microsoft Spinello (2002, p. 83) in his work â€Å"Regulating Cyberspace: The Policies and Technologies of Control† inform us that there are four distinct aspects of the United States government case which is based upon violations of the Sherman Act, which are as follows: The company’s monopolization of the PC operating systems market was achieved via anticompetitive means, specially in the instance of the utilization of its browser, in violation of â€Å"Section 2 of the Sherman Act, which declares that it is unlawful for a person or firm to â€Å"monopolize†¦any part of the trade or commerce among the several States, or with foreign nations† (Spinello, 2002, p. 83). That Microsoft engaged in â€Å"†¦Unlawful exclusive dealing arrangements in violation of Sections 1 and 2 of the Sherman Act (this category includes Microsoft’s exclusive deal with America Online)† (Spinello, 2002, p. 83). That Microsoft in its attempt to maintain it competitive edge in browser software â€Å"†¦attempted to illegally amass monopoly power in the browser market) in violation of Section 2 of the Sherman Act †¦Ã¢â‚¬  (Spinello, 2002, p. 83). And that the bundling of its browser along with the operating system was in violation of â€Å"†¦Section 1 of the Sherman Act (Section 1 of this act prohibits contracts, combinations, and conspiracies in restraint of trade, and this includes tying arrangements) †¦Ã¢â‚¬  †¦Ã¢â‚¬  (Spinello, 2002, p. 83). Spinello (2002, p. 89) provides an analysis of the Department of Justice case against the company utilizing a distinct example as represented by Netscape. He contends that the option for consumer choice was never inhibited by Microsoft, and that Netscape’s own practices contributed to the decline in popularity of its browser. Chapter 3 –Analysis 3.1 Bundling, Competitive or Market Restrictive? The Concise Dictionary of Business Management (Statt, 1999, p. 109) defines a monopoly as â€Å"A situation in which a market is under the control or domination of a single organization †. The Dictionary continues that â€Å"This condition is generally considered to be met at one-quarter to one-third of the market in question (and that) †¦ A monopoly is contrary to the ideal of the free market and is therefore subject to legal sanctions in all industrialized countries with a capitalist or mixed economy†. In addressing this facet of the Microsoft case, McKenzie (2000, p. 27) elaborates that Microsoft’s market position as a ‘single seller’ in the market as a result of its dominance represents â€Å"†¦ latent, if not kinetic, monopoly power† and in the opinion of the judge presiding over the case, the company is â€Å"†¦illegally exploiting its market power in various ways to its own advantage and to the detriment of existing and potential market rivals and, more important, consumers†. This goes to the heart of the matter concerning the assertion that Microsoft’s monopolist approach is stifling competition and innovation as its bundling practices effectively eliminates software such as Netscape and others from becoming an option for other companies as the Internet browser Explorer comes preloaded with Windows and Vista operating software. This view was publicly asserted by the United States Attorney General at the time, Janet Reno in a 1997 press conference where she stated on behalf of the Justice Department that Microsoft is unlawfully taking advantage of its Windows monopoly to protect and extend that monopoly (McKenzie, 2000, p. 27). Gillett and Vogelsang (1999, p. xiv) in â€Å"Competition, Regulation, and Convergence: Current Trends in Telecommunications Policy Research† advise that â€Å"†¦Bundling is a contentious element of software competition that has been at the heart of the Microsoft antitrust litigation, and represents an integral aspect in the examination of how and if Microsoft’s monopolistic approach to software bundling has an effect on innovation and competition. They state that â€Å" †¦ through bundling, can profitably extend this monopoly to another product, for which it faces competition from a firm offering a superior product (in the sense that it would generate more surplus than the product offered by the monopolist) (Gillett and Vogelsang, 1999, p. xiv). They continue that â€Å"†¦Bundling the two products turns out to be an equilibrium outcome that makes society in general and consumers in particular worse off than they would be with competition without bundl ing †¦Ã¢â‚¬ . Gillett and Vogelsang (1999, p. xiv) offer the idea that â€Å"†¦bundling is likely to be welfare reducing and that unbundling would not be a suitable remedy †¦Ã¢â‚¬  Aron and Wildman (1999, p. 1) advise us that through the use of bundling a company can exclude its rivals through the combined pricing, thus successfully leveraging its monopoly power. They continue that the preceding represents part of an equilibrium strategy by which the monop