Write a response paper to the book Out of Poverty by Paul Polak Essay

Write a response paper to the book Out of Poverty by Paul Polak - Essay Example According to Polak the group is a massive consumer but lack the financial ability to purchase the products. Additionally, he discovers that the group comprises of viable entrepreneurs. When designing products for the group, Polak advises that an entrepreneur consider the consumption pattern of the group. Firstly, the poor have minimal finances they therefore attach more importance on the price of the commodes they purchase often at the expense of the quality of the products. An entrepreneur must therefore devise cost effective means of production to ensure the manufacture of cheap products that will fit the budgets of the group. Additionally, the group is huge. At 90% of the world population, it is therefore the greatest market and after designing products that appeal to the group, the next big feature of such a business becomes the mass production and determination of effective retail services. Of all the ideas Polak fosters in his book, among the most surprising findings is his claim that the 90% of the world’s population is poor. Additionally,, the scholar claims that the 90% drive the world economy. However, he breaks down his points to validate his claim by explaining the financial movement in the market economies thus validating his claims. According to his explanation, it becomes factual that a larger percentage of the world’s population is poor but still controls the global economy. I agree with most of his ideas. I like the idea that products that target the poor often sell faster and better than those targeting the wealthy in the market do. Just as he explains it, the poor are the majority this widens the base of the market for any product or service that targets the population. An entrepreneur must therefore determine the best way of producing such products at cheap costs but in bulk. As a marketing strategy, by targeting the poor, an entrepreneur earns smaller profit margins per product but sell many

Multinationals and Global Business essay Example | Topics and Well Written Essays - 1500 words

Multinationals and Global Business - Essay Example Before the merger, these companies had been rivals and the process of bringing them together ensured that both of these companies were able to put aside their rivalry and cooperate in an international level; becoming among the most dominant oil and gas companies in the world. Since its formation, Royal Dutch Shell has continuously grown and evolved according to the different circumstances that it has encountered; essentially ensuring its success where many others have failed. According to Jones (2005, p.164), in the twentieth century, â€Å"firms sought to access knowledge to develop technology that are distinct from but contemporary to those created by their parent companies.† At the period of its formation, the two parts of Royal Dutch Shell were not merged, but were kept separate as a result of nationalist sentiments in both the Netherlands and the United Kingdom. The result is that these two parts of the company continued to be run as separate entities with one based in The Hague and the other in London. The portion based in The Hague took on the responsibility of production and manufacture while the one in London took over the transportation and storage of the products. Thus, in order to cater for nationalist sentiments in both countries, Royal Dutch Shell chose not to go ahead with the merger because to do so might have hampered its operations. This strategy can be related to Alfred Chandler’s structure follows strategy theory which s tates that the structure of a company is often determined by its strategy and this is based on the formation of independent units that operate under the umbrella of a parent company (Chandler 1990, p.61; Gopalan and Stahl 1998, p.32). Thus, through its headquarters, Royal Dutch Shell was able to continue coordinating the activities of its Dutch and British units without compromising their independent nature. Royal Dutch Shell chose to begin its