Fukushima Daiichi Nuclear Power Plant - Culture and Corporate Social Responsibility - Case Study Example

1.

In view of the recent nuclear disaster, to what extent and why International should business requires a proper brand image to ensure its brand is admirable and acceptable to the consumers. Branding places a business at a competitive advantage in the global business arena. Fukushima Daiichi nuclear power plant should adapt its corporate brand image to enhance its future acceptability within Japan and the global community. Doing this would attract stakeholders and retain the consumers. The power plant must also adapt a corporate brand image and participating in corporate social responsilbilities.If the plant was more concerned of the people’s welfare. Such damages could not have been experienced. International marketing is essential and driven by some models and theories. The theories, models and concepts of International marketing include;

Mercantilism

Mercantilism is an economic system used in the sixteenth and eighteenth century. This approach postulates that a nation’s prosperity depend on its capital. It further argues that the volume of the international trade and world’s economy are unchangeable. Mercantilists were of the idea that a government should restrict importation of manufactured goods through tariffs or quotas, encourage raw material importation, encourage manufactured goods exportation through subsidies, discourage consumption and promote production and finally keep workers poor and uneducated. Mercantilism is further based on the following three assumptions; That a nation’s total wealth is fixed thereby making an economy a zero-sum game as there is no increase in the total wealth. Measurement of wealth is measured by the amount of precious metals such as bullion in the country. This theory made a significant contribution to the trade balance. It provided a relationship between trade balance and rates of exchange. This concept is of the idea that the export and imports volume of a nation depend on a domestic level of a price that is relative to the already existing ones in the foreign markets.

The Absolute advantage

The concept of absolute advantage is yet another concept in international marketing. This model was designed by Adam Smith. Adam Smith fiercely criticized the mercantilism concept. In his book referred to as the wealth of nations, Smith defines the commodity values as consisting of the total sum of labor used in the product and by labor used by a commodity. He referred to it as the labor theory of value. The value of a commodity can only be determined by the labor required by it.He differentiates between the exchange and utility value of a commodity. To him, water has infinite value but no exchange value. Gold and diamond, on the other hand, have little use value but higher exchange value. This theory further distinguishes between natural price and market price. The supply and demand are the determinants of a market price. When a commodity’s quantity is brought in the market is lower than its demand, a competition arises hence some individuals will be ready to pay more hence a rise in the market price and vice versa. This approach advises people to find a product that only fewer people have so as to increase their profit margin. Profit margin can also be enhanced through producing unique commodities.

The Comparative advantage is another theory related to that of Adam Smith. This model was formulated by David Ricardo. The labor theory of value as argued by Ricardo is same as the Adam Smith’s theory of labour.He urges business to concentrate on commodities that provide them with a comparative advantage. The comparative advantage makes it easy for countries to trade efficiently with trade with one another with good opportunity costs and make good choices. Comparative advantage also enhances diplomatic relations amongst the countries involved in commerce and marketing. Consumption of goods will be improved, increasing production and eventually provision of jobs. It also encourages specialization.

2.

People are linked together through communication. Communication also enhances better and healthy relationships. Marketing communications have acted as brands and used in building brands. Marketing communication involves using communication to make consumers aware of their goods and services and persuading them to buy them. Marketing communication can, therefore, be termed as a management process that a business engages in through management processes. Marketing communication is made up of tools with various communications aimed at the audiences targeted. It involves messages, media and tools. A brand places a business in a competitive advantage as it would enable an increase in profit margins. Apart from information provisions, marketing communications regularly remind customers of their products and services as they keep coming in the market. It also enables separation of competing brands in the market.

Human behaviors are regulated through culture.

Culture refers to a set-off patterns of behavior adhered to by some particular members. Members of the same culture can speak one language and share common values. The values, in turn, will affect the behavior of consumers and inform their choices as well (Cant, Brink and Brijball, 2006). Cultural values carry with them knowledge from one society to another. Values normally persist and influence consumer behavior. Marketing communication tries to adapt to the market structures and consumer behaviours.Consumer behavior is all about decision-making decisions among consumers regarding what to buy or not to buy. It also involves how they will react to a particular product or service in the market. Marketing communication will then do research on consumer behavior and adapt to the specific areas of interest in their consumers. Eating habit is another consumer behavior. Marketing communication would, therefore, inform customers of the available consumables in the market. Consumer behaviors are usually affected by personal, social and psychological factors.

Consumer behavior also differs with age. The way people perceive and receive messages differ. Market communication must then adhere to the cultural or moral expectations of their consumers at all times. Language is one of the cultural aspects; marketing communication can embrace languages and use then in conveying relevant information on their products and services to consumers. Modern technology has increasingly improved in the global world. Despite that, however, there may be cultures that still lag behind in respect to technology. A marketing communication will, therefore, adapt and use the methods that would be easily understood by such cultures. The success of a marketing communication must be flexible enough to meet the needs of all consumers across the global cultural diversities.

3.

A brand refers to a distinguishing symbol (trademark, package design or logo) or name used in the identification of products and services. A brand is also used in differentiating goods and services from the ones of the competitors. A brand, therefore, informs customers of a product source hence protecting producers and customers from competitors who may opt to produce identical products. The ability of customers to bond and identify with a product relies on branding (French-Davis, 2001). The consumer’s knowledge of a brand is defined through their personal meanings of brand stored in their memory. The attributes of a brand also inform consumers’ knowledge, feelings and perception of a brand. Stakeholders usually set goals which they wish to achieve at a lower cost. A brand must, therefore, seek to meet all their demands. According to Kapferer (2008), brand thinking as from the 1990s has adapted to the contemporary markets making brands gain stronger personalities (Mooij, 2004).

Brand management has increasingly become a field that encourages cooperation between the companies and their consumers so as to create value, develop and design current products and services with proper communication channels. Stakeholders do not have to constantly seek information from the brands (Eagle and Dahl, n.d.). Instead, a business should strive to provide it.The stakeholders are vital players in brand management (Dunning, 1997). They impact on organizations’ operations and development. An excellent management of a brand must ensure to come up with a brand that supports an idea, social values and a cause. The brand must aim at improving people’s conditions and living standards (Eadie, 2009).It is, therefore, noteworthy that brands are linked to the societal problems and their solutions (Culture Quest business, 2013). Transformation of a brand can be triggered through a co-creation as it makes brands more creative and open, encouraging employees to abandon their comfort zones and meet the consumer needs (Louis Cruz and Santesmases Mestre, 2011).Co-creation process must always be made clear to the stakeholders.

Brand managers are the guardians of a brand and must strive to design the brands in a manner that add value to consumers’ lives (Otteson, 2013).It is important for a market culture to know that the communication styles and need of consumers vary from one culture to another (Adekola and Sergi, 2007). A market culture must also know that there is no culture superior to the other (Hond, Bakker and Neergaard, 2007). It is important to understand a market culture when designing a cross-cultural branding strategy as it enables respect for the cultural differences among consumers. It is vital to learn how to translate and understand cultural differences before changing them to an action plan (Murphy, Laczniak and Prothero, 2012). Some cultures will adopt faster to newer innovations while others will not (Yüksel Mermod and Idowu, n.d.). People’s needs differ from one culture to another hence a market culture can ensure that all the needs of the people are met (Hill, 2005). A market culture will also study how cultures perceive their products and services in the market and seek to design products to suit their needs (Sandhusen, 2000).

4.

The business environment is the best place to observe cultural differences in action. Cultures are usually revealed in situations with a lot of commitments. Business practices are generally shaped by communications as well as cultural attitudes towards work (Rossman, 1994). Communication is essential for every business (Pasco and Le Ster-Beaumevieille, 2007). The creation and exchange of goods and services are made possible through close coordination of various individuals in both smaller and large distances. Communication styles are rampant in the world thereby leading to many business styles (Sage brief guide to marketing ethics, 2012).National cultures aid in the shaping of business. Organisations interact differently with the environments they are located in.The environment in which an organization is located in will determine its success or failure. National cultures are everywhere and play important roles in the running of an organization and the maintenance of a good relationship with shareholders (Brenkert, 2008). National culture provides a manager with the right language to use when communicating with particular consumers. National culture has a lot to do with the success or failure of an organization (Ricardo, 2001).

National culture provides an understanding of an employee’s values and expectations. Hence enabling a manager to know the right approach to providing consumers with goods and services, while considering the existing cultural differences (Haerens and Zott, n.d.).Verbal communication refers to communication through the words or speeches. Non-verbal communications consist of messages used in conveying information. They include; eye contact, nodding of the dead, taking turns in conversations and maintaining silence, use of gestures, smile, humor and laughter. Nonverbal communication can be used to control a manager’s attitude and conversation (Hill, 2006). Through it, a manager can be stopped and made to accommodate other people’s opinions. Verbal communication enables employees to freely air their grievances to the managers hence, doing away with dictatorship from a manager (Bradley, 1991). Verbal and non-verbal communications ensures transparency and accountability.

A manager will be expected to communicate to the stakeholders on how he manages the company finances thereby keeping him or her on toes, and avoiding laziness and blame games(Peng, 2009).Non-verbal communication can be used as a defense used to avoid remarks that could embarrass stakeholders or superiors(Andreasen, 2001). Employees can always take care not just to speak anything that might annoy their bosses. Such communication mediums provide a better way of approaching managers and letting them know where they may be going wrong (Czinkota and Ronkainen, 1998).

5.

The twentieth century has seen an aggressive business environment. The global and domestic organisations are therefore stipulating strict rules on ethical decision makings as well as a good marketing strategy on communication that would be a reflection of a corporate social responsibility and legal business practices. Organization’s credibility is determined by its ability to disseminate quality communications to its stakeholders (Saydé, n.d.). An ethical communication with the customers, making them aware of the content and quality of the services and products is vital for a sustenance of customer satisfaction, brand loyalty and long-term retention of a customer (Smith and Murphy, 2012). The international market arena has been faced with stiff competitions and business are now fighting to remain relevant, expand and sustain the profit margins and market shares(Smith, 2012). Firms also face challenges of meeting their stakeholders' expectations. The stakeholders usually rely on provided information in making their buying decisions (Bomann-Larsen and Wiggen, 2004).

Globalization has brought with it, a need for honest dealings with the companies’ stakeholders so as to realize an achievement of economic goals and the social good of the people (Anon, 2016). If an organization only aims at expanding its profit margin and market share to the detriment of the consumers, their integrity will be compromised, hence placing the business at the disadvantage in the international markets (Murphy, 2005). For an organization to stretch beyond its domestic environment, there is a need for embracing an ethical corporate social responsibility (Paliwoda and Ryans, 1995). All firms must strive to do the right things to their consumers (Arnould, Price and Zinkhan, 2004). Moral standards and ethical values should be the force driving organizational sales (Mayrhofer, 2012). Right decision on purchases should be made available to customers (Noel, 2009). Lack of moral values and moral standards have led to misinformation and deception in the advertisements leading to a lack of trust on the information provided by marketing (Ghauri and Cateora, 2010). Organisations are obliged to be ethically responsible for their data and promotional messages (Batten and Fetherston, 2003).Corporate citizenship has been emphasized by researchers in maintaining a commitment and ethical responsibility to consumers (Lewis and Housden, 1998).

According to Lawrence and Weber (2011), embedding a corporate commitment to environmental and social responsibility into international practices makes organisations to have strategic advantages in their business expansion and increased profits efforts. The 4ps (Promotion, place, price and product) are essential for the efficient and effective management of the stakeholders’ needs and wants (Blythe, 2006). The corporate social responsibility concept is a critical business concern due to the rise I unethical practices in organisations. Stakeholders and consumers have developed a tendency of an increased attention to product information, advertisement ethics as well as positioning ways embraced by firms (Saucier, 2008). Therefore marketing communications to the consumers and stakeholders have to be precise enough and clearly framed (Hond, Bakker and Neergaard, 2007). Doing the right thing through an ethical communication is not only advantageous to the profit organisations but also to the nonprofit organisations (Sandhusen, 2000). The benefits accruing has long-term impacts on the organization’s sustainability and a better marketplace positioning. Commitment to truthful business practices as well as the provision of adequate information to the consumers on the products and services qualities without deception or exaggeration will see a retention of customers (Ball and McCullogh, 1996).