An Analysis of the Possibility for LUSH to Achieve Success in China - Coursework Example

Conclusion The research study will be crucial because it will give an insight on what needs to be done in order to reduce the barriers of entry into the Chinese cosmetics industry. Actually, the sector that will be subject to the study are the most vital in the determination of the trend of any economy in the world, hence there will be time saved in carrying out the research study. The major aim of this study will be to analyze and assess the extent to which the variables in consideration affect the Chinese market within which trading activities are carried out. This will also focus on the potential of the LUSH Company in the boosting of an economy over time. In addition, the research proposal aims at establishing the ability of the company to explore its potential in order to ensure that there will be full utilization of resources available. The study also aims at assessing the impact of the variables on the trading activities of China. This study will also highlight the correlation between the HUSH’s performance and favorable Chinese policies. It will also show how the dependent and independent variables of the study affect the progress of the entire sector of cosmetics. The study will also help in setting economic performance standards for the foreseeable future. Data will be obtained for tracing the causes of creating barriers to entry into the Chinese cosmetics market. This data will help in addressing the shortcomings of the policies already adopted. The data will also be used to give a clue as to whether the sector being studied has been optimally utilized the resources at their disposal in maximization of profit and wealth. Furthermore the data will provide reliable information concerning the cosmetic industry. The company believes in the production of appealing hand-made cosmetic products from readily available products. The material includes natural oils and other forms of jelly substances. There is a high likelihood of the firm performing well in the Chinese market because of the viability of the applications for LUSH development. Many multinational firms have flooded the cosmetic market in many nations. However, only China is required to submit the samples of their ready-made cosmetic products to undergo testing at various laboratories. This has led to the violation of animal rights in some cases. According to Friedman, Paul and Mark, the Chinese nation has resolved to create market entry barriers to companies like LUSH, which serve consumers indiscriminately (47). The barriers include a strict registration process, which keeps off most of the foreign cosmetic firms. The policy of LUSH is to safeguard the rights of animals at all times. Consequently, the company can never be a party to the carrying of tests on animals. The company implores the People’s Republic of China to review its policy on the animal testing (Lee 88). This notwithstanding, there is a need for China to relax its strict registration process in order to open up many applications including LUSH, for the Chinese market (Zhu 34). This implies that the company has great potential were it allowed to operate in the Chinese cosmetic market. This will involve the statistical testing of the relationship between the variables of the study. The factors which indicate the development of the sectors will be assessed and analyzed in detail in a bid to establish the correlation between these factors and the LUSH’s potential especially in the cosmetics industry. HUSH products are essential in a market setting. The quality and speed of the production process of a product matters in the general business of a company because this ensures prompt delivery of the products to customers. In addition, the production methods adopted by a firm ought to be reliable. The production system of a company should be cost effective in order for the organization to achieve its targets. According to Chang, the supply chain of a firm, which comprises of an egalitarian arrangement, is designed in the sense that the production process is automatically stopped in case quality is compromised (34). The manufacturing and assembling processes are also taken into consideration. The Michael porter five forces apply to this element of marketing. A pricing strategy is a major consideration in the marketing of a product. Much of it is usually determined by market standards. An organization should make every effort to maintain a competitive pricing policy. According to Taylor, the company can also build its reputation as the premier manufacturer of a specific product (55). This earns the ability to charge a premium for the product. The company must employ personal selling, which gives a company an opportunity to charge favorable prices to clients depending on the performance of the company and the time of the financial period of the company. A firm’s goal should be to develop personal familiarity between its employees and the community. The location of a company gives a firm strategic a competitive advantage over the rest of the firm in the market. This is because when a firm is located where materials are readily available, savings are made. Ma asserts that this aspect reduces the marketing cost, hence increasing the overall marginal returns of a business (56). Moreover, marginal returns are plowed back into business, hence boosting performance. The location of a company is also suitable because a developed infrastructure makes it easy for a manufacture to serve its clients satisfactorily. This research proposal will establish the need for the LUSH Company to venture into the cosmetic market in China. It will also find out the implication of this move on the Chinese market. This proposal will focus on the relationship between HUSH’s viability and the aforementioned variables (Laursen and Byron 79). In addition, it will give way to the collection and analysis of data from appropriate sources in order to answer the research problem. The basis of the research will be to carry out a comprehensive study on the potential of the LUSH Company in China. In order to have a successive study, the research will develop an appropriate framework of the overall research proposal. There will be a great contribution of the cosmetics industry sectors to the Chinese cosmetics sector growth. This is the sector, which largely contributes to the overall gross national product of a country (Scoblic 89). Indeed, the major focus will be to gauge the effect of these sectors to the overall economy. The research will highlight the need for the company to access the Chinese cosmetic market and the need for the Chinese market to relax its strict policies. Therefore, the study will trace the potential of the company in the Chinese market. This will help in ascertaining the exact effect of these variables on the overall economy. This relationship will be established through the statistical analysis of the variables of concern. Therefore, the research will establish the extent to which HUSH limited will thrive in the Chinese cosmetic market. Recommendation There should be a collection of relevant information pertaining to the company, which will highlight the current state of the firm. The information collected will focus on the various aspects of the HUSH Company. On the other hand, entry barriers, which are determined by the independent variables, will be considered dependent variables. The interview will dictate the data collection method to be used in the relationship between the company’s performance and the Chinese policies on cosmetic animal testing. On the other hand, secondary data should be obtained from Chinese archives and articles of international bodies and non-governmental organizations. Past research on the subject can also be utilized to provide this data. The interviewees will be experts from the various sectors, thus they will be identified. Then they will be informed and requested to participate in the study. After they consent to the request, time schedules will be prepared in readiness for the event. There is a need to set up good market policies which will curb the problem of the Chinese exclusion policy. This initiative will result in the improvement in output, which will result in the consequent boom of the cosmetic business in China. Diversification of economic activities in the cosmetics industry will lead to a reduction in risk. This also results in diversification of risks which will increase the net effect of risks on the overall returns from various companies. However, social evils like crime, will always result in the decline of the economy. The cosmetic, industrial sector ought to perform well in order to have increased in exports and decrease in the imports (McMullan 84). Therefore, local products will have a ready market, which will lead to decrease in the general prices hence low rates of inflation. This will result in the increase in economic growth and development of China. The firm should employ promotion to perform against the odds and increase its sales despite its huge production volumes. Using strategic supply systems and innovative sales promotion tactics, a company can rise steadily to become a market leader in a given industry. According to McMullan, the focus of the firm’s products in emerging markets of the world boosts competitiveness of a firm (41). The company needs to choose suitable fundamental parameters in order to reposition their strategies which include the following: Modern lifestyle perception. This will help in bringing out product brand uniqueness which includes its comfort, stylish nature and unique design. This will help create attractiveness and capture the attention of the customers who considerably like unique modern designed products (Shapiro 93). The firm also must reengineer its products. Reengineering will help reduce the cost of manufacturing and improvement of quality. The firm will also have to reconsider several designs of their fierce competitors to find out why their design is unique and what they can add to come up with a completely unique product that will be cost effective to manufacture. Furthermore, the plan must entail reconsidering the firm’s pricing strategies. Perceptual mapping will also be considered in the plan given that this technique creates and displays visual perceptions of current customers and potential customers. The research will employ a broad approach in order to cover all the issues pertaining to the study comprehensively. This will be in tandem with the objective of the study; assessment of the effects of the Chinese regulations pertaining to the animal testing (Ogden 67). These are the factors which will determine the course of China’s animal testing policies. The study will also employ a qualitative approach whereby there will be a detailed analysis of key factors with regard to HUSH’s competitiveness and China’s policies (Bumas 36). The policy framework of the country will assist in this analysis. Furthermore, the study will carry out detailed consideration of the performance and failures of the Chinese policy framework to obtain the marginal contribution of these effects to the economy. The research will employ surveying in the study because this will eliminate the need to do experiments on the variables of concern. This research design is appropriate given that it allows the use of qualitative analysis of variables. Therefore, there is no need for the use of experiments. This methodology will enhance the collection of relevant data from sampled items. There will be use of statistical analysis of the variables in order to establish the relationship existing between the variables with regard to LUSH’s potential in the Chinese cosmetics market. In addition, qualitative data will be obtained and subjected to the statistical analysis in order to give more detailed inference. The qualitative data will include both primary and secondary data. The research will carry out in-depth interviewing with professional from all the sectors under consideration. This implies that the study will be comprehensive because it will cover many issues concerning the operation of the various sectors. The professionals involved will provide the policy framework of the Chinese government on cosmetic animal testing. Then they will be required to explain in detail the relationship between the various sectors and the cosmetics industry. They will also explain the impact of changing of any of the variables under consideration, on the overall impact. Works Cited Zhu, Ying. Art, Politics, and Commerce in Chinese Cinema. Hong Kong: Hong Kong University Press, 2010. Print. Friedman, Edward, Paul Pickowicz, and Mark Selden. Revolution, Resistance, and Reform in Village China. New Haven, Conn: Yale University Press, 2007. Print. Laursen, Theresa V, and Byron Laursen. From Bangkok to Bali in 30 Minutes: 175 Fast and Easy Recipes with the Lush, Tropical Flavors of Southeast Asia. Boston, Mass: Harvard Common Press, 2008. Print. Scoblic, Sacha Z. Unwasted: My Lush Sobriety. New York: Citadel Press, 2011. Print. McMullan, James. Leaving China: An Artist Paints His World War Ii Childhood. , 2014. Print. Lee, Jared. China. Mosman: IMinds, 2009. Print. Ma, Rain. China Hotel Directory. Hong Kong: China Economic Review Publishing, 2006. Print. Bumas, E S. The Price of Tea in China. Amherst: University of Massachusetts Press, 2009. Print Taylor, Cora, and Geoffrey Ursell. Chaos in China. Regina: Coteau Books for kids, 2009. Print. Ma, Rain. China Hotel Directory. Hong Kong: China Economic Review Publishing, 2006. Print. Chang, Kang-i S. Women Writers of Traditional China: An Anthology of Poetry and Criticism. Stanford, Calif: Stanford University Press, 2009. Print. Ogden, Suzanne. Chinas Search for Democracy: The Student and the Mass Movement of 1989. Armonk, NY: M.E. Sharpe, 2008. Print. Taylor, Cora, Chaos in China. Regina: Coteau Books for kids, 2009. Print. McMullan, James. Leaving China: An Artist Paints His World War Ii Childhood. , 2014. Print. Shapiro, Judith. Chinas Environmental Challenges. Cambridge, U.K: Polity Press, 2012. Internet resource. Read More