Report On Norwich Guest House Sector Sample Essay


Background to the study

The hospitality industry plays a significant role in the economic growth of Norwich UK. The guesthouse sector is one of the sectors which have greatly contributed to the country’s economic growth. This is due to the fact that the sector forms a significant proportion of the country’s Gross Domestic Product (GDP). As a part of the country’s economy, the guesthouse sector supports various economic sectors. One of the industries which have been supported by the guesthouse sector is the tourism industry. Norwich UK has witnessed rampant growth in its tourism industry over the past years. The guesthouse sector plays a significant role in the provision of accommodations to both domestic and foreign tourists. By supporting foreign tourism, the guesthouse sector contributes to an increment in the country’s volume of foreign exchange. In addition, the availability of guesthouses across various locations in Norwich UK stimulates the country’s tourism through the promotion of domestic tourism. This paper is a report on guesthouse sector in Norway.


The aim of the report is to analyze the role of the Norwich guesthouses sector as a Small and Medium Enterprise (SME’s).


The report entails a justification of the importance of the guesthouse sector to Norway’s economy. An analysis of the various ways in which the sector is contributing to the country’s economic growth is analyzed. Growth in guesthouses has enhanced the development of entrepreneurial culture. The various SME’s which have contributed to Norwich guesthouse sectors are considered. These include; microfinance institutions, advertising companies, and growth in agritourism. The extent to which guesthouses have contributed to the economy in Norwich UK is considered. The report also considers the characteristics and dynamics of the guesthouses. The extent to which SME’s in the Norwich guesthouse sector are entrepreneurial is analyzed. The individual and opportunity theory of entrepreneurship is analyzed. Finally, a conclusion and a number of recommendations are made.

Justification of the sector’s importance

The guesthouse sector has also contributed towards the establishment of entrepreneurial culture amongst the Norwegians. The ultimate result is that there has been an increment in the country’s rate of economic activity through the creation of new employment opportunities. The guesthouse sector has played a significant role in the growth of Small and Medium Enterprises (SMEs) in the country.

Stephen (2005, p. 1) asserts that SMEs form an important platform for the growth of entrepreneurship and hence the country’s economic growth. According to Stephen (2005, p. 2) development of entrepreneurial culture within this sector is a key element towards Norwich UK attaining a healthy economy. In addition, growth in this sector has culminated in the creation of new job opportunities within the country. An increase in the rate of tourism within the country has resulted in an increment in the number of guesthouses which has been established in various locations within Norway. This has resulted in a reduction in the country’s rate of unemployment. Stephen (2005, p. 2) asserts that the creation of new employment opportunities results in an increment in disposable income for the citizens. This means that their purchasing power increased thus improving the economic performance of other sectors. In addition, an increase in personal disposable income results in an improvement in the living standards of the households.

An increase in the rate of tourism in Norwich UK has greatly enhanced rural entrepreneurship through the establishment of various small and medium enterprises. For example, an increase in the number of guesthouses which are distributed in various locations in Norwich UK has greatly supported farm tourism in Norwich. Over the past few years, individuals residing in cities have incorporated touring to the countryside for their holidays and other recreation purposes. This has resulted in the bridging of the gap between the city and the rural residents. In addition, growth in farm tourism has greatly contributed to the country’s economic growth. According to places to stay in Norwich: the broads and the Norfolk countryside (Anon., para3), it is estimated that approximately 10% of all individuals working in farms in Norwich UK have integrated farm tourism. The presence of guesthouses in the rural locations is contributing to the development of entrepreneurial skills since the farms are distantly located from each other. Through domestic farm tourism, individual visitors gain diverse knowledge in relation to farming. This greatly enhances the development of agriculturally supported SME’s. On the other hand, the establishment of guesthouses in rural locations has played a significant role in ensuring a relatively equitable distribution of the country’s economic growth.

Extent of contribution by SME’s to Norwich Guesthouses

SMEs play a significant role in the development of Norwich guesthouses. For example, the Norwich guesthouse sector is greatly supported by small and medium enterprises in the tourist industry such as tours and travel companies. Of these tourists, a large percentage of the guests sought accommodation in various guesthouses. Of all the Nordic countries, UK hosted a large percentage of the guests. According to Alka and Ivana (2009, p. 190), a high percentage of job creation in Norwich guesthouses was realized amongst the women. Guesthouses greatly supported tourists’ accommodations.

Considering the fact that tourism is characterized by a high level of seasonality, the guesthouses provided an opportunity for women to work in the guesthouses and achieve a high level of work-life flexibility. In addition, the proportion of women who were working in guesthouses as fulltime employees in 2007 was relatively high at 75% compared to men who held 90% (Alka & Ivana, 2009, p. 110).

Amongst the European Union countries, UK had a relatively high level of job opportunities which were created for the women compared to other countries. For example, in 2007, 71% of the new tourist accommodation jobs which were created through establishment of guesthouses were occupied by women.

The development of agritourism in UK is supported by the fact that there are a large number of microfinance institutions which support investment in agricultural activities. These SME’s (microfinance institutions) provide ease of accessing financial capital to potential investors in agriculture. This has greatly contributed to towards the development of agricultural activities in rural areas hence increasing agritourism in UK. Increased demand for agritourism in UK has culminated in an increment in demand for guesthouses in rural areas. This has greatly contributed towards development of guesthouses.

Development in microfinance institutions has also greatly contributed towards establishment of guesthouses. This is due to the fact that potential investors in the sector can be able to access financial capital necessary for the establishment of the guesthouses. The cost of capital charged by the microfinance institutions is relatively low compared to the large financial institution.

Creating effecting market awareness is a key factor to be considered in the success of a guesthouse. Market awareness can be attained through various methods such as promotion and advertisement. The emergence of a large number of small and medium advertisement companies in UK has resulted into increased efficiency in the process of creating awareness of the Norwich guesthouse. This is due to the fact that the SMEs are cheap for the guesthouses considering the fact that their advertisement budget is lean. This has enabled both the domestic and foreign customers to be well acquainted with the nature of the services offered by the Norwich guesthouses. The ultimate result is that there has been an increment in the number of customers seeking accommodations in the guesthouses.

Characteristics of the guesthouses

Most of the guesthouses operate as social enterprises this is due to the fact that they provide guesthouse services to the public. In addition a large percentage of the guesthouses are jointly owned through incorporation of partnership type of business structure. However, some of the guesthouses operate as sole proprietorship type of businesses. In addition, a large percentage of the guesthouses are owned by women. Currently, there is an increase in the number of women entrepreneurs who are venturing into the sector due to its flexible work to work-life balance characteristic.

Extent to which the SMEs in this sector are entrepreneurial

Entrepreneurial skills are very important for the success of SME’s. According to Ronell (2008, p.4), the guesthouses sector of the economy is very challenging due to the increase in the degree of competition within the industry. Firms in Norwich guesthouse sector face intense competition from international firms such as Holiday Inn. In addition, there has been an increment in demand for guesthouse services due to growth in both domestic and foreign tourism. In addition, the tourism industry is characterized by a high rate of dynamism due to changes in tastes and preferences amongst the consumers in relation to services offered by the guesthouses. Ronell (2008, p. 5) asserts that this trend have instigated the need to develop relevant entrepreneurial skills in the operation of firms in this sector.

Guesthouses deal with the provision of personal services to the customers. Therefore, the success of guesthouses depends on certain characteristics of the owner such as his or her personality and credibility. Investors in this sector have integrated a high level of professionalism. The entrepreneurs in the guesthouse sector are committed towards delivering a personal touch to the customers. In addition, the investors are innovative in provision of guesthouse services. Efficiency of innovativeness is attained through the investors being open to environmental changes and being ready to accept new ideas. This has played a key role in ensuring that the guesthouse succeeds in the long-term. For example, considering the fact that guesthouses provide accommodation to tourist industry, integration of service innovation has enabled the services offered by the guesthouses to be in line with the market demands (Ronell, 2008, p. 6). The investors in this sector have also integrated creativity in the operation of the guesthouses. This has ensured that the services offered are unique in the market and a high level of efficiency in solving problems arising from the market. In addition, investors in this sector are faced with risks associated with the business. As a result, the investors are confident and are motivated towards invention and innovation of services to be provided to the customers. The challenging environment of the guesthouses results into development of good managerial skills by the investors. For example, the dynamic nature of the guesthouse sector demands the investor to conduct continuous market analysis. Investors in this sector have integrated the concept of comprehensive market research in their strategic management. This has contributed towards ensuring that the investors are conversant with the market trends. The result has been an increment in the level of efficiency in the decision making process. Through market analysis, the investors are able to scan, identify and exploit the opportunities which are presented in the environment.

To attain a high competitive edge, management of firms in guesthouse sector has incorporated a high level of practicality in the operation of the firm. This is due to the fact that the success of the guesthouses depends on the efficiency of operation of various systems such as the reservation and the stock keeping systems (Ronell, 2008, p. 4).

Comparison of the findings with entrepreneurial theories

Individual opportunity nexus theory

According to Per and Claus (n.d, p. 2), entrepreneurship is composed of two phenomena. These include the individual who are driven by need to enterprise and availability of feasible business opportunities. According to Shane (2003, p.23), opportunities result from various business environments. These environments relate to technological changes, political, legal, social and demographic changes. In addition, the existence of gaps and omissions by other players in a particular industry also contributes towards creation of opportunities.

Demographic and social changes have greatly increased opportunity of growth of the guesthouses. For example, increase in consumer purchasing power has resulted into a change of lifestyle amongst the domestic and foreign consumers. As a result, there has been an increase in the number of consumers who are incorporating tourism in their consumption patterns. In addition, increase in population size poses an opportunity of growth in the guesthouse sector. This is due to the fact that increase in demand results into an increment in demand for services (Shane, 2003, p. 24).Increased growth in technological innovation such as the development in electronic commerce has also contributed towards growth of the guesthouses. This is due to the fact that it has enhanced online booking of reservations in guesthouses. In addition, technological changes have resulted into creation of self employment in various locations in UK through establishment of guesthouses in rural areas. Through scanning of the environment, the individual identifies the opportunity in the environment, makes a decision to exploit the identified opportunity, acquires the necessary resources and organizes on how to exploit the opportunity.


Norwich guesthouse sector plays a significant role in the country’s economic development. This is due to the fact that it stimulates entrepreneurial skills amongst the citizens. This culminates into an increase in the country’s rate of economic growth due to increase in the country’s labor productivity. The success of the guesthouse sector is supported by other SME’s such as agritourism, microfinance institutions and small and medium advertisement companies. The sector has greatly contributed towards enhancement of entrepreneurial culture amongst the citizens due to the challenging nature of the sector.


  • SME’s in guesthouse sector should conduct a comprehensive market analysis to determine the trend in the market. This will ensure that they develop strategies aimed at satisfying the customers.
  • Due to the dynamic nature of the sector, managements of firms in this sector should ensure that they include a high level of personal touch in the provision of the services.


Alka, O. & Ivana M. 2009. The significance of tourism as an employment generator of female labor. Zadar: Department of Macroeconomics and Economic Development.

Norwich. 2010. Places to stay in Norwich: the broads and the Norfolk countryside.(On-line). Web.

Per, B & Claus, T. N.D. The individual opportunity nexus: an unfolding polarity. (On-line). Aarhus, Denmark: University of Aarhus. 2010. Web.

Ronell, H. 2008. Effective guesthouse management. (E-book). Cape Town, South Africa: Paarl Printers. Web.

Shane, A. 2003. A general theory of entrepreneurship: the individual-opportunity nexus (E-book). Northampton: Edward Elgar Publishing Incorporation. Web.

Stephen, B. 2005. The importance of entrepreneurship to hospitality, leisure. (On-line). Sheffield: Sheffield Hallam University. Web.

Personality Is Inherited Principles Of Genetics

Even before the revolutionary breakthroughs in the field of genetics had taken place during the course of last fifty years, which point out to one’s personality as having largely biological subtleties, people used to suspect that individual’s behavior does not solely account for particularities of his of her upbringing. In her book “A Question of Character: Scientific Racism and the Genres of American Fiction, 1892-1912”, Cathy Boeckmann states: “Person’s unique temperament and personality—had always been a locus for speculation about the differences between people and the nature of individuality. And, virtually since the inception of Western discourse, speculation about the extent to which character could be read from the physical details of the face and body has been the province of physiognomy. The science has a long history, beginning perhaps with the treatise Aristotle composed on the subject. Physiognomy later became widely influential in Europe in the late eighteenth century” (Boeckmann, 2000, p. 44). The emergence of such a scientific discipline as eugenics in 19th century came about as the direct result of the fact that progressive biologists had come to realization that it is namely parents’ racially-biological makeup which accounts for how their children’s personality is being formed.

However, after 1945, eugenics has been artificially deprived of its legitimacy as a science, simply because of politicians’ assumption that the idea that it is absolutely possible to improve Homo Sapiens, as a specie, by subjecting people to selective breeding and racial hygiene, leads to Nazism. Nevertheless, as we are all well aware of – science is not being concerned with the issues of morality. The primary goal of every scientific discipline is to seek the actual truth and if such truth does not correspond to outdated Biblical nonsense, it is the problem of religion, not science.

It is a well known fact that, whereas some people try their best to act as productive members of society, the others are being solely focused on causing this society as much harm as possible, by consciously indulging in different forms of anti-social behavior. The Liberal (environmentalist) approach to dealing with this issue is known for its pseudo-scientific essence, which is visible even to a naked eye. It is not people who commit crimes, suggest behavioral environmentalists, but these people’s “poverty” or the lack of parental care, they have experienced throughout their childhood. However, the realities of living in today’s multicultural Western countries point out to something entirely different – the overwhelming majority of violent criminals in these countries consist of representatives of racial minorities, who despite being provided with numerous rights and privileges that are meant artificially improve their social standing (“affirmative action”), continue to sell drugs, steal and rape, as their full-time occupation. Why do they act in such a way? This is because their genes “program” such their behavior.

The founder of Positive Criminology, Cezare Lombroso had conducted extensive studies on the subject of what determines criminal undertones in one’s personality. The results of these studies leave no doubt as to the fact that the strength of one’s “criminal mindedness” directly relates to the degree of his of her anthropological atavism. In his book “Criminal Man”, Lombroso says: “Atavism remains one of the most constant characteristics of the born criminal, in spite of, or rather together with pathology. Many of the characteristics of primitive man are also commonly found in the born criminal, including low, sloping foreheads, overdeveloped sinuses, overdevelopment of jaws and cheekbones, prognathism, oblique and large eye sockets, dark skin, thick and curly head hair, large or protuberant ears, long arms, similarity between the sexes, low sensitivity to pain” (Lombroso, 1876, p. 222). Therefore, much criticized policy of “racial profiling” has nothing to do with the fact that, according to statistics, at least one out of every three African-Americans had at least once “done” some time in jail. The truth is – it is not only that particularities of people’s biological makeup affect their personality, but are responsible for forming at least 95% of such personality.

Why is it that up until recently, such country as Denmark was virtually crime-free, while featuring the highest standards of living in the whole world and the smallest percentage of truly religious citizens, as compared to other countries? This is because the citizens of this country are being genetically predetermined to utilize their existential potential to push forward cultural and scientific progress, as opposed to indulging in never-ending tribal warfare, as it is the case with people in

African countries, for example. What causes such their predetermination? It is their inborn sense of existential idealism, which in its turn, derives out of these people’s ability to operate with highly abstract categories (their high IQ). On the other hand, as it has been illustrated in Richard Lynn’s book “IQ and the Wealth of Nations”, the average rate of IQ among citizens in Equatorial Guinea equals 45 (when White person scores 70 during the course of IQ testing, he ends up being proclaimed mentally deficient), which is why it comes as no surprise that, despite being officially regarded as “developing” country, Equatorial Guinea rapidly regresses into primeval savagery, as it is the case with all African “nations” that had been “liberated of White oppression”.

Apparently, despite the fact that Christian moralists and Liberal “lefties” suggest otherwise, the objective laws of biology apply to people in the same way they apply to animals and plants. For example, in countries of EU the ownership of pit bulls is now forbidden by the law. And the reason for this is simple – because of these dogs’ biologically predetermined high viciousness, they are known to be capable of even attacking small children, without being provoked. Why are the pitt bulls so vicious? This is because they are the product of intense inter-pedigree hybridisation, which involved at least 30 different dogs’ pedigrees.

Now – what is the reason why Hispanics (Latinos) have traditionally been depicted by classical works of European literature as being particularly ruthless and vindictive people? It is because they are the products of intense racial mixing between Whites, Blacks and South American Natives. This is how Sir Conan Doyle refers to a Hispanic guide Gomez in his famous book “The Lost World”: “The face of Gomez the half-breed, was slowly protruded. Yes, it was Gomez, but no longer the Gomez of the demure smile and the mask-like expression. Here was a face with flashing eyes and distorted features, a face convulsed with hatred and with the mad joy of gratified revenge… ‘Yes, there you are, you English dog, and there you will remain! I have waited and waited, and now has come my chance” (Doyle, 1912, Ch. IX). Such classical description of Latinos’ behavioural “uniqueness” corresponds rather well to the fact that today’s L.A. is being turned into the battleground between Hispanics and very much everybody else.

In his article “Racist Mexican Gangs “Ethnic Cleansing” Blacks in L.A.”, Paul Joseph Watson says: “Racist Mexican gangs are indiscriminately targeting Blacks who aren’t even involved in gang culture, as part of an orchestrated ethnic cleansing program that is forcing black people to flee Los Angeles. The culprit of the carnage is the radical Neo-Nazi liberation theology known as La Raza, which calls for the extermination of all races in America besides Latinos, and is being bankrolled by some of the biggest Globalists in the U.S.” (Watson, 2007). This example, of course, does not imply the behavioural sameness, on the part of all Hispanics. Yet, it directly relates to the topic of this paper, because it is better then anything else support biological theories as to what causes people to act in one way or another.

An individual who has been born with genetically predetermined aversion towards the act of theft will never steal, regardless of his social status and religious affiliation. Alternatively, an individual who lacks the inborn sense of existential idealism will never be able to understand why stealing is bad in the first place, regardless of whether he has been “educated” to regard theft as crime or not. Thus, psychoanalytical approach to dealing with the issue of how one’s personality is being formed cannot possibly provide us with the insight onto the deepest of roots of this process, simply because it idealises only one among many aspects of human behaviour. Just as Marx idealised the economy, within a context of supporting his social theory of “struggle between classes”, Freud idealised human sexuality, while trying to explain what accounts for differences in people’s personalities. Moreover, he came to conclusions as to how latent sexual drives affect people’s behaviour while observing the inmates of mental asylums. It is needless to say; therefore, that Freud’s theory can hardly be applicable to explain the behaviour of physically and mentally healthy individuals.

It is a well-known fact that today’s penitentiary system in Western countries is being strongly associated with its utter inefficiency. The functioning of this system is based on the assumption that, after having served their sentences in jail, criminals are being corrected. Yet, as statistics indicate, 95% of former criminals that are being released from jail, only feel sorry for allowing themselves to be caught, instead of feeling sorry for perpetrating crimes, as it is being expected of them.

And the reason for this is simple – Western politicians in position of designing socio-political policies simply lack a scientific understanding of how people’s individuality is being formed, as the result of the fact that, after the end of WW2, the mere mentioning of a possibility that there might be a link between people’s physical appearance and their personalities became a taboo. This; however, did not undermine the theoretical validity of racially-biological theories, concerned with human behavior, which is why nowadays, the voices of proponents of eugenics become ever-more louder, even though that they try their best to sound as politically correct as possible.

In her book “Eugenic Nation: Faults and Frontiers of Better Breeding in Modern America”, Alexandra Stern suggests that references to Holocaust can no longer justify the scientific truth as to the real motivational factors behind people’s behavior being withheld from public: “The looming presence of the Holocaust in our collective memory, into which context the apologies must be placed, has helped to privilege renditions and narratives of eugenics in America that, ultimately, flatten and simplify the historical terrain” (Stern, 2005, p. 2). Regardless of whether we like it or not – every individual’s personality is being reflected by his or her physical appearance and the only reason why this fact is being kept away from public attention is because it points out at the doctrine of multiculturalism and the concept of egalitarianism as based on wishful thinking, which has nothing to do with the objective reality.


Boeckmann, C. (2000). A Question of Character: Scientific Racism and the Genres of American Fiction, 1892-1912. Tuscaloosa: University of Alabama Press.

Conan Doyle, A. (1912). The Lost World. 1912. Project Gutenberg EBook.

Lombroso, C. 1876 (2006). Criminal Man. Durham: Duke University Press.

Lynn, R. (2002). IQ and the Wealth of Nations. London: Greenwood Publishing Group.

Stern, A. (2005). Eugenic Nation: Faults and Frontiers of Better Breeding in Modern America. Berkeley: University of California Press.

Watson, P. (2007). Racist Mexican Gangs ‘Ethnic Cleansing’ Blacks In L.A. Prison Planet. Web.

Whether Globalization Makes Consumer Powerless?


Corporate Social Responsibility (CSR) is a notion whereby business organisations not only to maximise its profits and also have to consider to the welfare of the society and to take care of all kinds of interests of stakeholders like consumers, shareholders, suppliers, employees, environment and communities. Thus, a business should not have a sole aim to maximise its profits but also have a philanthropic, concise approach to other stakeholders. Under globalisation, now, multinational companies have a dual role as they have to answer both to the shareholders and consumers and other stakeholders. A multinational company cannot maximise its revenues by exploiting its consumers as awareness among consumers have grown in these days of globalisation. If a company does not have a passionate approach to consumers by supplying quality goods at an affordable price, it may not survive in these days of acute competition created by globalisation. If consumers are oppressed or swayed, then these companies will not only flout the rules of CSR but also be ignored by consumers as is evident by many recent happenings. In this research essay, I will be making strong contention against the statement that “In a world dominated by global capital, to what extent has the individual consumer become the victim of corporate power and influence?” and I am going to demonstrate that consumer is the real kingpin of today’s corporate world and if any corporate want to oppress or swindle them, their future will be doomed and they be driven out of the business in the short run.


This essay will aim to justify the methodological decisions taken and used to investigate the research problem, mainly from the available secondary data, especially from books written by eminent authors on the subject. The objective is to match the most appropriate methodological approach to the problem, bearing in mind time frame restrictions and limited resources.


Based on the literature reviewed and the concluding remarks from the “ Aim” section of this essay, the hypothesis is being questioned is that “In a world dominated by global capital, to what extent has the individual consumer become the victim of corporate power and influence?”

Review of relevant literature

Globalisation and corporate social responsibility are like each side of a coin. A company which is of transnational in nature has to adhere to social commitments and to enhance the consumer’s satisfaction by offering quality goods at an affordable price. If it disregards or overlooks consumer’s interest, that company whatever may its financial status will be meeting a bad catastrophe. I will be discussing in this research essay how a multinational company has to satisfy consumer needs through various real life examples in the analysis section.


In their book, Lechner & Boli (2004) argues that most of the worst bitter yowls emanating from opponents against globalisation originate from self-interested business leaders who are being compelled to surrender to consumer preference. Homegenisation is not achieved by the globalisation. People want to consume movies, books and even potato chips that mirror their own distinctiveness and those individualities remain primary national. When a politician murmur that globalisation is transforming the society which is naturally true, but they never bother to inquire whose society they are talking about. When society is demonstrated by a fairly solid national economy, a consumer has a chance of co-opting it. (p.12).

Nibert in his book (2002) criticises that health organisations and consumer groups are more worried about the ‘long-run health impact of eating foods that come with foreign genes and insecticides. Opponents of genetically modified organism or GM, concern that agribusiness has wantonly flooded with genetically altered seeds in the world market to “defensively decide the matter, whether or not to acknowledge biotechnology or not. Some critics also argue against the feeding of animals with the genetically modified grains. As these animals are consumed by the consumers again it is creating health issues on human beings. (p.117).

Nibert in his book (2002) argues that some consumer group is of the view that the safety of cow’s milk, especially those produced in the big cow farms on an industrial scale which uses hormones to enhance milk production and use antibiotics to prevent diseases and these hazardous substances are finally found in the cow’s milk. For instance, Monsanto markets recombinant bovine growth hormone, rBGH, a substance predominantly used in the major dairy farms around the world. Further, Monsanto claims that its lion’s share of revenue is emanating from the selling of rBGH hormone in USA. Thus, Monsanto can be said to be responsible for spoiling of millions of health of consumers. It is to be noted that rBGH is supposedly associated to deform and dead calves, creates mastitis in cows demanding antibiotic treatments and has been proven to cause breast cancers among human beings and indeed, the product has been shunned or outlawed in many of the major industrialised nations. (p.127).

Bonanno and Constance (2008) quote that the Kim Humphery (1998) who argues that food consumption as a probable province of empowerment of consumers due to globalisation and despite the growth of political resistance and cultural alternatives. He turns down the argument that the consumers are just mere puppets of corporate power and looks them as actors who can demonstrate a new structure of consumption that change the manifestations of producers. However, in reality, these consumers may be still under the clutches of MNCs. (258).

Briggs (2009) in his book explains that due to increased competition in the background of globalisation, many companies employ deceptive practices or false advertisements, mainly to defraud millions of gullible consumers to make a hey in the bright sunshine. Berkeley Premium Nutraceuticals Company from Ohio was prosecuted for making a misrepresentative advertisement as Enzyte and charged for indulging in money laundering and mail fraud. The promoter of the company was placed under a twenty-five year imprisonment and the company was ordered to pay fine $500 million for defrauding consumers. (p.99).

One another criminal practice perused by companies is the price fixing, which happens when different companies selling a product collude secretly to sell that product at a higher price. In US, both state and federal governments frequently deal with such practices through civil antitrust laws. LG Display Company, Sharp Corp and some other companies were prosecuted in 2008 for engaging in fixing prices for LCD panels. These companies colluded secretly thereby agreeing to keep artificially high prices on LCD television thereby cheating consumers in that process. As a result, LG Display Company had to pay a fine of $400 million and Sharp Corporation had to pay a fine of $120 million.Further, a sentence of seven months was imposed on a vice –president of LG for this offense. (p.99).

In his book Waters (2001) quotes Ritzer’s view that today’s society is influenced by a process of ‘McDonadisation’, the process by which the concepts of fast-food restaurant are being used to dominate more and more provinces of American society and the rest of the globe. (p.199). McDonadisation can penetrate to almost all parts of the world and to the degree that it can induce consumers to enter their outlets; it can convert sovereign consumers into consumers of international style of consumption. Thus, McDonalisaton symbolises a reordering of consumption as well as production, a rationalisation of previous domestic and informal practices that forces the world in the direction of greater conformity in a unique style. (p.200).

Lechner (2009). In his book explains that McDonald offers a specific consumer experience along with the food, inculcating one replica for how to conspire about to eat and how to conspire about eating. The McDonalisaton in East Asia demonstrates that globalisation must contain some element of localisation and localisation is a two-way street demonstrating transformation in the local culture as well as changes in the company‘s standard operating procedures. Thus, this kind of globalisation is akin to adaption or filtering of global replica and practices within specific local contexts that in turn remodel those practices and models, which is one of the key elements of globalisation. (p.28).

In their book , Lechher & Boli (2004) states that the individual consumer became the victim of corporate power and influence, which can be well demonstrated by the following example; McDonald’s has become a famous in Hong Kong that parents frequently used to take their children to the neighboring McDonald’s restaurant as a reward for their academic excellence or good demeanor. For those children’s who have either failed to perform in education or those children which misbehave might be losing their after-school snacks delights or will be asked to remain in home alone while other siblings were taken out for a brunch at McDonald on a Sunday. When interviewed, parents reported that this kind of sanctions functioned well to correct the behavior of their children. McDonald’s culture has become so famous in Hong Kong that the children even refused to eat in the dim sam teahouses or Chinese-style restaurants with their grandparents or parents. In some Hong Kong’s conservative communities, this has resulted in intergenerational distress. (p.130).

Gronow and Warde (2001) in their book cite Hsien, (1998) that most of the Taiwanese companies tend to cheat the consumer through various sort of strategies. Taiwan as compared to with many Western societies, consumer protection laws are at low ebb. Many companies both multinational and national companies in Taiwan tend to reap the benefit of absence of any standard law for consumer protection. The magnitude of the problem is borne out by the fact that even the Taiwanese branch of the leading American bank, Citibank, had been charged of cheating consumers in their banking promotional activities in the mid-1990s. (p.78).

Bigelow & Peterson (2002) is of the view that colonialism and racism previously divided the world as developed and developing and poor nations and how the U.S and European settlement produced inequalities in wealth on a global level. Today, profit –maximisation on the global level are designed institutionally through a structure of processes known as WTO, TNC, IMF, and MNCs. “Bigelow and Peterson” describe this process as “colonialism without colonies.” They demonstrate how these MNCs works together to shift wealth from poor nations to mighty nations and especially by transnational companies. He also quotes that a paper written by Jean Somers (2002) critically analyses how the IMF levy “structural adjustment programs” (SAPs) on deprived nations as a prelude of sanctioning of loans. The SAP compels poor nations to privatise their economy thereby opening up their economy by encouraging flow of FDI, differentiating their product and exporting. Bigelow & Peterson (2002) argues that WTO acts as an international court structure in the interests of multinational companies. (p.105). Massive advertising changes the gullible citizens into consumers who will purchase ‘product’ which they do not require at all thereby generating revenues for big companies. (p.300).

Bhagwati (2004) analyses his book that under globalisation, the interests of low-end consumers in US have been affected drastically. The present protection measures in US are considered to be injurious to the growth of low –end consumer goods that had now gone out of manufacturing in the USA and the net impact of workers’ well-being not emanating from the impact on their wages in employment but from their role as consumers. Bhagwati quotes the words of Edward Gresser in his writings in “Foreign Affairs, “Tariff policy without any indirect intention, has turned to be against the interests of the poor. Young single mothers who buy cheap shoes and clothes now compelled to pay tariff of about five to eight percent, which is higher than what a rich or middle-class family pay in a supermarket. Thus, the removal of these tariffs would annihilate this highly inegalitarian and differentiated tariff structure, which undermines the real incomes of the poorest consumers and the working class of the society. (p.127).

According to Bhagwati (2004), many opponents of globalisation agree one thing: the greediness of MNCs which they believe that MNCs are the real beneficiaries of this socially destructive globalisation and for exploitation of consumers. (ix).

According to Bhagwati (2004), the multinationals are often called as the root cause of today’s global economic disparity. They are termed as the heart of the issue: they are not to be considered to create benefits of consumers abroad as they exploit them. Waters (2001) in his book explain that multinational companies spread their authority over the consumers not only in their home nations but across the world. For instance, the Dutch Electronics company namely, Phillips, or ABB (Asea Brown Boveri), the Swiss –Swedish engineering group each of which have over about eighty-five percent of their sales outside their nation of their origin. (p.48).These multinationals are forming a global alliance now to expand their authority and to exploit the consumers. For instance , forming a global alliance is said to be the expansion of a MNC authority like for any national airline like Star, which has successfully formed alliance with many regional airlines like Australia –Air ,All Nippon –Ansett , Canada- Lufthansa –Singapore –Thai-United –Varig and Oneworld ( American , British , Canadian –AirLiberte /Deutsche BAPCPA / TAT –Finanair –Iberia –Quanta’s or telecommunications firms , e.g. World Source ( AT&T –Kokusai Denshin Denwa-Singapore Telecom) , BT-MCI , Deutsche Bundespost Telekom –France Telecom. Global alliance also occurs in unexpected sectors like information technology. IBM, for instance, once manufactured mainframe computers only, now it has refocused its strategy to manufacture of PC in collaboration with Intel, Microsoft and Lotus and also is now holding significant cross-holding in Apple where it is striving to develop common software architecture also. (p.77).

Scholte (2000) illustrates in his book that globalisation has, in fact, promoted a large scale of Merger & Acquisition activity within nations. Many domestic companies’ synthesise to have had the particular goal to foster a giant national company that can hold its own in globalising capitalism. In a nutshell, corporate mergers have been a strategy for survival of companies in the face of international competition. National governments are silent watchers and not to disrupt any M& A activities on the ground that it may force them to relocate or it may undermine the position of their activities in international markets. In recent years, M& A is flourishing in the global sectors like finance, information and communications and consumer goods. In consumer goods, for instance, M&A have made international players still bigger corporations like Philip Morris, Nestle, Unilever and RJR Nabisco. In the mid-1990s’ alone, the pharmaceutical sector witnessed some $80 billion merger activities. Through, M&A route, many international hotel chains like Sheraton and Hilton have also expanded their operations. Further, a number of aircraft manufacturers have perused the route of mergers with an aim to expand their global operations. In the banking sector alone, many top merger activities have happened. For instance, giants like HSBC, Tokyo –Mitsubishi Bank, Chase Manhattan had created veritable international giants in the banking sector. (P.127-128).

Hassan and Kaynak (1994), in their book, observes that to remain as competitive in this globalised market, it is necessary to comprehend the dynamic of what is happening on an international level in terms of consumption styles and trends so as to make the companies to remain competitive. Today, many retailers are compelled to globalise their activities what considered to be a real domestic industry. Fashion retailers like Benetton and the Limited were able to construct their own international brand image. Benetton, as Europe renowned manufacturer of knits was able to function in many major markets as a local store with a scale of operation and a global vision. Benetton’s competitiveness is based on the awareness of the international consumption patterns like globalisation of teenage dressing market, which was the foundation for competitively initiating the “United Colors of Benetton “campaign of advertising around the globe. These improved stages of globalisation have ended in competition and markets have retorted back to market consumer goods through vibrant global strategies. In this age of the enhanced globalised atmosphere, many consumers oriented companies have to think and act internationally; else, competition is going to affect them that too in their own national markets. (p.19).

Thus, globalisation has now become realism for many industries, which are competing in the international market. Few examples are consumer electronics, consumer market place, watches and automobiles, which have now become global industries. The globalisation of these industries can be attributed in part due to paying attention to buyer needs, technological advancement, and benefits derived from fostering a competitive rank in varied markets that cut across national boundaries. In this globalised industrial phase, ‘a company’s competitive rank in one country significantly impacts or is being influenced by its rank in other countries. (p.20).

Without understanding and responding to the core needs and values of the consumer, competitiveness in the globalising consumer markets will not be accomplished. Those multinational companies with the global operations can face the cut-throat competition only when they are equipped with consumer-oriented strategies. Top managers of global consumer markets will win over these competitions only if they are able to “think of international identical practices and to peruse to make it localisation. (p.22).


Today, if a business wants to thrive among international competition, it has to wed to CSR principles and to take care of welfare of consumers and it’s aim cannot be maximising its profits alone. Today, informed consumers want the manufacturers to restrict their carbon emissions. Further, now, consumers are more concerned with ethical labeling, and they can refuse to buy blood diamonds, cocoa or goods manufactured with child labour or with low wages and with ‘human rights’ issues. Global consumers are waging a crusade against genetically modified (GM) foods. Hence, a corporation cannot disregard the above, and if they do not satisfy consumer needs, they may lose their competitive edge in the global market. According to me, multinational corporations have to respect expectation of consumers and adhere to social commitments and to take care of the interests of all of the stakeholders if they want to be really a successful business.

List of References

Bhagwati, Jagdish N. (2004). In Defense of Globalisation. Oxford: Oxford University Press.

Boli John & Lechner, Frank J. (2004). The Globalisation Reader. New York: Wiley Blackwell.

Bonanno Alessandro and Constance. (2008). Stories of Globalisation: Transnational Corporations, Resistance and the State. Penn: Penn State Press.

Briggs Steven. (2009). Criminology for Dummies. New York: For Dummies.

Gronow Jukka and Warde Alan. (2001). Ordinary Consumption. New York: Routledge Taylor & Francis Group.

Hassan, Salah S & Kaynak Erdener. (1994). Globalisation of Consumer Markets; Structure and Strategies. New York: Routledge Taylor & Francis Group.

Lechner, Frank J. Globalisation: The Making of World Society. New York: Wiley –Blackwell.

Nibert, David Alan. (2002). Animal Rights / Human Rights: Entanglements of Oppression and Liberation. New York: Rowman & Littlefield.

Sleeter, C. (2003). Teaching Globalisation. Multicultural Perspectives, 5(2), 3-9. Retrieved from Academic Search Premier Database

Waters, Malcolm. (2001). Globalisation. New York: Routledge Taylor & Francis Group.

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