Sunday, March 31, 2019

The Liberal International Economic Order Economics Essay

The rationalise-hearted Inter bailiwick frugal Order Economics EssayThe issues of the environment were not in the minds of the framers of the Liberal International Economic send (LIEO) when they met to take a leakher at Bretton woods towards the barricade of solid ground War II. LIEO was foc exampled on promoting peace after the set war and destroy the scotch competition that was destructive to the kindred in the midst of the countries of the macrocosm. LIEO is the let out to future stability, peace and security globally. Right after the eat up of the Second World War, the World Bank creation, the General Agreement on Tariffs and Trade (GATT) and the International Monetary Fund established the foundations for the organization of a liberal trading order. These institutions promoted the state sponsored dedication to commercializes and secured economic prosperities to the developing nations. Governments accomplished that liberal trading arrangements and efficiency of t he market are essential prerequisites to project the potential for the economic, political and companionable progress after Second World War. The expansion of the liberal trading order, the strength of the free market and the handout of capital from domestic help restrictions which was visualized by the framers of the Bretton Woods Institution took antecedence over the provision of social development and on account of this good deal were left with the false promise that the efficiency in and of itself would take in political, social and environmental progress. Therefore even if the initial office was achieved, the numerous bipartite organizations created for the purpose of promoting a new LIEO has also created negative impacts. They beget been submissive in making the Governments exerting strong influence often with considerable muchover not with all the features of a exchangely planned economy which is genuinely much essential for the progress of a realm. Therefore, the Governments must ensure that their actions do not affect the purpose of the Liberal International Economic order (LIEO).The United States of course played a vital role in the development of Liberal International Economic order (LIEO) the reason organism as a ascendant economy, it carried the primary burden of military defence mechanism for the entire free globe and it opened its huge market to exotic competition and free share and it was able to and forgeting to carry on the burden of free bargain as it was a powerful and fatty nation. At this degree of time, the United States do the dollar a universally accepted parallel currency by fixing a relationship among the gold and the dollar and committed to exchanging at both point of time these two units. Therefore I believe that this regime could not have been developed without the influence of hegemony much(prenominal) as the United States.I do believe that the decline in United States influence signals a flagellum t o the LIEOs continued existence because the United States was no longer considered the dominant economic power as before. This might prove a threat to the LIEOs existence as they mostly depend upon the United States as they do not have sufficient resources and most of the time the expertise they needed and funded or supplied by the United States. There is a considerable release of the dominance of dollar which signals a threat to the LIEOs existence because they were solely parasitic on the currency of the United States for their functioning.The breakd avow of hegemonic stability theory, collective goods, and free riders are as followsHegemonic stability theory Identical to the materialization of hegemony, when a single nation rise to hold military and economical powers in a given situation along with the formation of international economic stability based on liberal principles which is a mixture of liberalism and mer tidy sumtilism which paves the counselling for the eliminati on of fears is called as the theory of Hegemonic stability. Here, the mercantilists and realists hold public views that the key to global economic order is the balancing of power among competing state actors. corporal goods Everyone has equal chances of derivation benefits in the case of collective goods. Irrespective of a persons contribution in the case of service or taxes in the military, national security is a collective good from which everyone within a agricultural benefits. The majority of economists view an open international economy as a collective good.Free riders Those who cultivate the fullest use and exploit a common good are called as free riders. Imposition of backing restrictions by a nation and getting away from the negative impacts and thitherafter deriving the maximum benefits from the free trade policies prevailing in early(a) nations takes level with regard to free riders, But nevertheless, without rules and both(prenominal)one to enforce the rules, the cooperation required to follow a common good is tedious to achieve.7.International trade has contributed to the economic development throughout the industrialized world and blended the cultures and traditions of different countries together and contributed to the cooperation among different countries with regard to sharing of resources though trades and imports which helped to discover a irrefutable equilibrium. Even though the world trade is increasing at a faster pace and it is favorable according to the world trade economists, it soundless has its own negative sides after the global economic crisis that hit the world in 2008. The global economy suffered severe losses and it paved the way for unemployment which increased drastically throughout the world for the past two years. In spite of all these setbacks, the rules and principles of world trade organization have help governments in keeping the markets open is provided for the world trade as thither is some considerable i mprovement in world trade.An economic constitution which is meant to favor domestic producers of services and goods is called protectionism. I read an article the another(prenominal) day by David Leonhardt of the NYtimes which fundamentally proposed the idea that China has adopted the biggest form _or_ system of government of protectionism since the World War II by intervention and manipulation of the remote exchange markets and by following strict measures of protectionism creating negative impact for itself and countries exchangeable the United States (David Leonhardt, 2010). When a nation is having protectionist policies, producers are protected against competition from the contrasted firms with the help of import restrictions where as free trade is a policy where commodities are allowed to cross borders or boundaries without restrictions. The reason behind why some governments favor protectionism is, as soon as alien commodities are made available in the domestic market , the domestic industries suffer heavy losses because the foreign goods are available at cheap prices or the producers who export commodities to other countries are able to keep costs low collectable to the subsidies of the foreign government. Therefore the governments hold the views that it can increase the demand and market for the domestic goods by closing the market to foreign producers and marketers and by rarefied strict quotas and import tariffs so that the domestic economic situation doesnt get bad and derives maximum benefit. Even though protectionism is intended for protecting domestic companies, this is not always the case. There is also a darker side companies will tend to use the old technologies and they will seldom take any initiatives to produce innovative products and there is no spirit of good competition. Countries that go by protectionism are often faced by export barriers or restrictions from other countries who give the same response to countries that go by p rotectionism. swelling of prices for prices and commodities takes discover and the domestic companies may start fleecing the consumers by fixing their own prices when there are no foreign competitors.In order to maintain a balance of trade waste, a awkward can make exports to the foreign sector which exceeds imports from there and a balance of trade extravagance takes place for a country if its domestic economy produces commodities which are in high demand by other countries and purchased by foreign countries enabling the country to increase its exports, the value of which is greater than the value of imports produced by the foreign countries. Therefore a country must ensure that its makes maximum use of its own resources and after cater to its own need must ensure that there is no wastage and should find out the potential market oversea where there is high demand for its commodities which are lying in surplus. For example, brazil nut is the colossal producer of coffee in the world and after catering to its own need in a substantial manner, it exports the rest to foreign countries thereby creating a favorable method to maintain balance of trade surplus. It has the capability of exporting huge quantity of coffee seeds which surpasses all other imports which will help it to maintain balance of trade surplus.The balance of compensation imbalances needs to get cleared by the succeeding suitable methods for the purpose of maintaining a consistent balance of trade surplus. By making imports cheaper, the exports of a nation could be less competitive. This usually ends up in correcting the surplus of a current account which is also helped by the upward gear in the currency value of a nation.With the help of an agreement between the nations to fix their rates of exchange against each other, any disproportion that is taking place by rules based and changes in exchange rates which are negotiated could be sorted out. Fixed adjusting rates of exchange rates which is the systems of Bretton Woods is a crucial example of a rules based system.When a country adopts a regime of policy which centralizes currency decisions in the hands of a central government by controlling the movement of capital, discouraging imports and encouraging exports, such a policy is called as neomercantilism. Allowing more effective fiscal and fiscal policy by increasing the level of foreign reserves is the terminus of the policies of neomercantilsm. This is believed to provide greater control and autonomy to the government. Japan and Germany have been believed to have derived the maximum advantages of the neomercantilist trade policies. Most of the nations of the world always believe that the trade policies of neomercantalism always work for them and fail to notice its negative side. When every country starts following the neomercantilist trade policies, they discourage imports and start concentrating only on exporting. A nation definitely has the need to encourage imp orts when it is crucial for the welfare of the country and if majority of the nations follow this policy, the rest of the countries will follow the same and when they knock down down imports, they are discouraging and preventing the other countries to export.The countries which follow this policy should survey the comparative advantages of both export and import. The way in which value can be created by trade for both parties even when one could produce all goods with fewer resources than the other is highlighted by comparative advantage. This encourages for the occurrence of gains of trade which can be beneficial to both the parties that is the country which exports its commodities to another country and the country which imports the commodities exported by the other country.Rationalization of neomercantilist trade policies is possible when there is cooperation among the countries involved in international trade. Developing countries need to participate more vigorously in trade n egotiations during trade agreements with mutual trust and authority with other nations.

Different Approaches To Psychology And Christianity Theology Religion Essay

Different Approaches To psychological science And Christianity Theology Religion EssayIntegrative Approaches to Psychology and Christianity, written by David N. Entwistle, is a thorough examination regarding the integration of psychology and religion, in which both attempt to understand human nature. Integration is described as a thing that we discover when we are uncovering the fundamental unity that paragon created, as well as something we do as we create ship canal of thinking ab out(a), combining, and applying psychological and theological truths (Entwistle, 2004, p. 19).An individuals worldview is ones life survey, which filters their reality. Both the psychologist and the theologian subscribe to their worldviews and presuppositions into their separate methodologies and goals. The authors theocentric model unites theology and psychology, as both have sympathetic concepts that derive from Gods created world. In order to attain a holistic perspective of human nature, both a re necessary (Entwistle, 2004).Before psychology was sort out as a science, it had deep roots in philosophy and religion, though it was not successful in dealing with serious psychological disorders (Entwistle, 2004, p. 44). During this duration the perform leaders were deemed the spiritual physicians, caring for the souls of men. (Entwistle, 2004, pp. 44-45). The church leaders were involuntarily pushed into the back shadows with the rise of psychology, when curiosity began to embark upon the unconscious of man, moving psychology from examining the sensory systems of man to examining the mental processes of man (Entwistle, 2004, p. 49).Integration motivatings to blob and discern the unity of all truth, that is that all truth is Gods truth, wherever it may be found. A comprehensive integration volition involve, according to the consort paradigm, a holistic perspective on how human beings live, learn, think, feel, think, and relate to from to severally one one other and t o god (Etwistle, 2004, p. 239). The book of Gods word (scripture) and the book of Gods sours (creation) never conflict, but the interpretations of man may be inconsistent at multiplication (Entwistle, 2004, p. 262).Human nature is complex and multifaceted. Psychology and theology must be integrated because human beings are integrated in themselves. It is erroneous to ramp up truth upon just a few strands of the whole tapestry, lest we lose set of the entire being. Integration must consist of the faith reading of both books, examining with careful exegesis and hermeneutics, and re-evaluating psychological reasoning, data and theories. We must learn to be gentle with the detail that there forget be some level of skepticism and ambiguity we exit always have to live with (Entwistle, 2004, pp. 273-274).Concrete solutionMy husband and I were pastoral leaders in a church where anything outside of the church was not considered ministry. We were told that God wanted us to pee-pee in full time ministry, which meant working full time with no steady pay.I didnt have any formal training in the bible nor in counseling, yet I preached and counseled. Everything was by faith, with the false article of faith that all knowledge and healing exclusively comes through the spirit of the Lord. all in all of the teaching and counsel given stemmed from the leaders hurts and experiences. This was of no service to the parishioners, especially to those who had genuine mental health issues. My husband and I last moved away to another state.Whenever I tried to give counsel, I found that religious people either felt they did not need it, or believed I was somehow not spiritual enough. I excessively found that nonreligious people tended to be disinterested in hearing anything about God. Every time I opened my mouth, I seemed to find my behind in it.Five age after we left that church I enrolled in Liberty University to continue my education in psychology, unspoilt-tempered late struggling with my anti-psychology beliefs. I finally choose to go into professional counseling. I desired to be equipped and effective in counseling. Over the years I have come to know Christians who have had real psychological issues, but they only sought out Christian counsel. Most still have those issues today, still hiding behind religion.ReflectionWith the integration of theology and psychology, are we attempting to create a separate Christian psychology? If so, would this Christian psychology be less effective for those who are not Christians, or do we require conversion before they are able to concern of Gods learning? If so, are we withholding the very grace and graciousness of God, forgetting that fact that His sun rises on the evil as well as the good (Mat. 545).I in like manner wonder if integration is realistically assertable with all the various perspectives underneath the umbrella of Christian theology. Christianity has numerous argue theories and conclusi ons, similar to secular psychology. I dont believe full integration will ever be possible, but I am confident that Spirit filled Christians have the power and ability to discern and act in such a way to work towards the healing and wholeness of each client.Entwistle was very constructive in stating the importance and possibility of integration (in which I disagree). He outlined various historical as well as contemporary viewpoints concerning integration, giving his opinion on which ones promote a holistic perspective. He also suggested several useful methods of integration.Although Entwistle acknowledged the metaphysical work of the Holy Spirit in integration, I was disappointed that he didnt leave this a significant theme. I find it is important to integrate, yet believe that full integration may be impossible. I would have also liked to have read more about the pitfalls of being unequipped in ministry when dealing with mental health issues.ActionGiven that each human being is com plex, counseling can be problematic. A holistic approach is the only way one can tap into the cozy intricacies of man. I would plead with every Christian counselor to continuously hear their hearts. Due to the nature of our society and culture today, I would suggest they carefully consider every aspect of their client (body, soul and spirit). If not, they may do more harm than good.I am determined to work out my biases, as well as my resistance to change from anti-psychological thinking. I will continue to strive to gather all truth, which is Gods truth, from every relevant discipline. My primary(prenominal) goal as a counselor is to be equipped and ready to pull out the most effective treatment from my relentless inner-integration. I believe every effective Christian counselor must be filled with the knowledge of Gods will in all wisdom as well as spiritual understanding (Col 19-17), so to cause forth instruction with zeal and fullness from his or her inner storehouse. This wi ll ensure the impartation of both fresh wisdom and ancient wisdom (Mat 1352 KJV Wordstrudy). For one without the other stands deficient.

Saturday, March 30, 2019

Strategies for Entering Foreign Markets

Strategies for Entering Foreign martsIntroductionIn todays commerce world, globalization has a great impact on management decisions, processes and the securities industry swan-gardening of an organization. The most important a delegacy driving forces of an increasing multinationalization be the uncivilness to refreshed securities industrys due to liberalization and deregulation, further developments in technologies and logistics, as closely as shorter harvesting life clock time cycles, and a homogenous consumer fashion whereas internally the strategic-foc single-valued functiond attitude of companies represents an essential factor.1More and to a greater extent than companies do non sole(prenominal) want to stay in a single food commercializeplace and aim to expand into overseas markets as salubrious. Before incoming a foreign market, a guild has to decide not except on an appropriate innovation outline nevertheless also should take in the main move o f the market intromission theoretical account presented in the supply uping chapter.The following assignment provides a profound analysis of market admission strategies in the context of international duty management. First of all, yards to go international volition be presented followed by a market entree manikin in chapter 3. Further on, incompatible systems of intro will be discussed stating returnss and disadvantages as well as giving examples of degradeds which successfully present implemented these strategies. In chapter 5, different time schema show upes will be introduced. Finally, a coating will be drawn from the preceding findings.Reasons for entryway foreign marketsthither be a variety of reasons wherefore companies decide to go oversea and expand their issue line operations. Organizations mainly engage in international p atomic number 18ntagees in pose to establish private- shipprise(a) advantages and efficiently adapt to the ever-changing bu siness environment. However, it is r arly the case that bulletproofs atomic number 18 yet driven by iodine single factor. In the context of international marketing, proactive and reactive reasons or motivations piece of ass be differentiated. While proactive factors are stimulated by internal strategic change, reactive reasons result from environmental shifts.2Proactive reasons complicate growth in terms of revenue, sales and customer base, bell savings due to economies of scale or low-cost manufacturing, and reduction of dependency on a single national market as well as alternative sources of labor. Reasons which rather force the securelys to expand to foreign countries and markets are draw as reactive matchlesss. For instance, domestic markets could be already saturated or emerging competitors prevent fuddleds from further increase its market shares and therefore, stay militant.3 all the uniform though most companies highly profit from operating internationally, they are business deals faced with incalculable risks and challenges. Possible risks are primarily based on a lack of information regarding consumer preferences, unfamiliar business procedures and regulations, as well as human resources management.4Market entre FrameworkA market entry strategy framework serves as a helpful management tool for firms aiming to enter a foreign market. It is highly recommended that companies follow these guidelines to split understand the process of internalization and to specify appropriate action steps for a firm. Generally speaking, the organization has to decide on the following questions 1) What products or operate should be offered abroad? 2) Where (countries, regions) should the market entry take place? 3) What entry strategy should be employ to enter the foreign market? 4) How should be operated in the foreign market in terms of marketing programs?5As it is sh ca exercise in the figure below, a conceptual framework consists of quartette main st eps. After the decision has been ghastlye to enter a vernal market, a profound market assessment should be conducted. Regarding step 1, the fraternity has to analyze its own resources and capabilities. A SWOT-analysis locoweed help identifying the firms internal and external environment. An well-nigh different key aspect is to evaluate legal and regulatory considerations as well as existent competitors and to deal with possible political risks and uncertainty. delinquent to different customer tastes and preferences in other countries and regions potential target groups allow to be interviewed and analyzed in order to customize its products to their specific require and wants. In step 2, the business environment should be walk-to(prenominal) examined, flavor for business partnerships, testing market attractiveness and performing financial and entry barrier analyses to prevent early failure.Not until step 3 an entry mode is selected and implemented and further negotiations with business partners will be continued.6 minute factor is the entry strategy configuration, defined as the process ofdeciding on the best possible entry strategy mix.7Step 4 finally repre-sents the actual operation phase in which strategy and processs are aligned. This nitty-gritty satisfying the international clienteles needs by providing them with the desired products and operate and setting adequate prices while remaining competitive. Ultimately, the society has to ensure that performance targets and strategic objectives will be accomplished as planned.Market launch StrategiesIn the following the different market entry strategies will be described and advantages and disadvantages will be shown.ExportingMost companies operate indoors their country however when they decide to enter foreign territory most of the companies use export as their beginning(a) approach to go international. Exporting federal agency producing goods in one country and selling them in another countr y.8 any(prenominal) companies operate only in one niche market and are successful however in most cases companies become successful by increasing brand awareness and business stability by entranceway bran-new markets. Exchanging goods across boarders has grown to be a lot easier end-to-end the years and therefore merchandise has become the simplest and most straightforward way to meet the need of a foreign country. However, when a society chooses exporting as their strategy there are several factors that lead to be considered when determining whether to use a institutionalize or in straight off strategy. such(prenominal) factors tush be the size of the telephoner, what product the company is going to sell, antecedent export amaze and expertise and business conditions in the market the company wants to enter. Companies which carry no experience in exporting croup chip in their foreign customers through intermediaries. This approach is called indirect exporting and is oft en utilize by first-year- while exporters.9Indirect exporting is when a firms sells its domestically produced goods in a foreign country through an intermediary.10Intermediaries also called middlemen is usually a firm or person that acts as a link between parties to a business deal. Using indirect exporting belongs to the least risky methods. Companies victimization this method have the smallest substance of commitment however on the other hand receive the least profit. Direct exporting is one approach used by companies. A company usually handles its exports on their own and sells its products or function directly to the customers. This method gives the company much more(prenominal) than(prenominal) meet over their activities. It allows them to start at lower prices, be more competitive on the market as well as cumber closer contact with clients. Also, using direct exporting gives the company higher(prenominal)(prenominal) returns in investments. The Boeing Company was ver y(prenominal) successful using this method and is now, not only the worlds self-aggrandizingst aerospace company but the number one exporter in the US. On the other hand, the pitfalls for direct exporting are that, it is a lot more risky and they have to invest a lot more time to become familiar with the market.11LicensingLicensing is another common approach of global marketing. around(prenominal) companies use this method by offering the right to a trademark, patent, trade secret or other similar valued item of mental property in return for a royalty or a fee.12One example is the company Marvel Entertainment Inc. Marvel has mad millions of dollars in licensing with their superheroes and intellectual property. Marvel has licensing agreements with the film industry, toy industry, computer risque industry and many other areas. Spiderman, Hulk and many other characters are famous around the world and can be seen and played with.13 otherwise specialized forms of licensing are take on manufacturing, management contracting and franchising.14Contract manufacturing is some sort of outsourcing. A German company for example contracts with the foreign company to produce the products they want to sell in the new market. While the contract manufacturer produces the products, the German company puts the companys brand name on the goods. In the computer and electronic field contract manufacturing is used a lot by companies such as IBM and Dell. Dell and IBM let their products produce by Taiwanese companies. The advantages for using this method are that the capital investment is tellingly low however on the other hand the company will not have full control.15 counselling contracting is similar to manufacturing contracting, just that the domestic company is not producing the products in a foreign country, but transfer parts of their management personnel to assist a foreign company for a definite time for a fee.16Management contracts are especially used in the hotel bus iness. The Marriot or Carnival Hotels and Resorts use this method to enter new foreign markets. This method is also very normal in Asia and many developing countries which need the expertise from professional management. An advantage of managements contracting is the minimum risk for the company, due to low equity investment. major(ip) disadvantages are that the company has to give up a big amount of control as well as flexibility.17McDonalds, Burger King, Starbucks all have one thing in common they are world wide companies which use the franchise method in order to be serve race internationally. Franchising is a specialization of licensing and both are the most common used method by small and medium size companies. In a franchising agreement, the franchisor sells limited rights to use its brand name in return for a lump sum and share of the franchisees future profits.18The franchiser assists the franchisee on a act basis, through sale, promotion and training.19The advantages of franchising are that it is less risky and less costly. Franchising is the devalued growing method for a market entry a firm whishing to expand globally. On the contrary, the franchisee has to be careful to make all the adjustments necessary. Issues concerning the transferability of products, brands and services should be considered. McDonalds for example had to make adoptions when entering the Indian market because of the different culture and lifestyle.20Joint VentureJoint venture occurs when an international company enters in to an agreement with a local anaesthetic partner to develop a new entity and assets for a finite time by contributing equity.21A Joint venture may be classified as majority, minority, or fifty-fifty ventures in regard to the equity share of the international company and may be started from the scratch or by the foreign partners encyclopedism of a partial ownership interests in an existing local company. In most cases, firms choose joint ventures over sole ventures as a result of the restrictive regulatory measures towards sole venture of the foreign investors by the host governments. In the other hand, a Joint venture can also bring positive benefits to the foreign partner through their local partners, because local partners have better knowledge of the host countrys environment and business practices as well as personal contacts with local suppliers, customers, banks and government officials, management, production and marketing skills, local prestige and other resources.22These benefits are the reason why most firms insist on joint venture in some countries like Japan even when a sole venture is open to them. The advantages of Joint ventures are 1) risk diversification and allocation of risks between the partners 2) overlap of resources 3) can be a means of reducing political and other investment risks 4) access to the dispersion network. The disadvantages are 1) lack of management control 2) joint ventures negotiations are time consuming, requires a lot of contractual framework and long period of due-diligence3) lack of trust 4) risk of conflict as a result of cultural differences.Direct coronationDirect Investment can be divided into two parts 1) merger and acquision and 2) whole owned subsidies. These kinds will be explained in the following.Merger and erudition thither are two primary mechanisms by which ownership and control of a corporation can change Either another corporation or group of individuals can acquire the target firm, or the target firm can merge with another firm.23According to Brealey et al, a merger can be an added value only if the two companies are worth more together than apart.24There are three classifications of mergers 1) Horizontal mergers This is a character reference of merger where two firms producing similar goods or offering similar services are combined to form an entity. Examples are Vodafones science of Mannesmann and Commerzbanks learnedness of Dresdner Bank. 2) just Merger is referred to as a combination of two companies in the same industry whose products are required at different stages of the production cycle. The buyers can integrate backwards. An example of forward integration merger is Walt Disneys acquisition of the alphabet television network. In which Disney planned to use ABC network to show recent movies to huge audiences, and an example of backward integration would be Fords acquisition of Rouge Steel Company to quail risks associated withthe dependency on steel. 3) put one over merger occurs when companies in unrelated lines of businesses are combined to become an entity. The reason why companies decide to go into this type of merger is to diversify and reduce their exposure to industry specific risks. However, if a conglomerate becomes too large and diverse through acquisitions, the performance of the entire firm can wither. Quellen?Reasons for Mergers AcquisitionEconomic of scale and scope Cost efficiency of high great deal production are one of the privileges merged firms enjoy, which small firms can only dream about. Larger firms also tends to benefit from economies of scope, which are savings as a result of synergy effect in the marketing and distribution of different types of related products (e.g. computers and printers).Vertical Integration As a means to repair its products or services, a company capacity decide to have the direct control of the inputs required to make its products. Similarly, another company talent not be mattered with the manner at which distribution of it products is conducted, so it might decide to take direct control of the distribution impart by acquiring a major distributive company.Expertise In order to compete effectively and efficiently, firms often need expertise in particular fields. A more efficient approach may be to acquire the talents as an already functioning unit in an existing firm.Monopoly Gains Merging with or acquiring a major competitor might enab le a firm to reduce competition within the subject area of its operation. There is greater pricing power from reduced competition and higher market share, which could result in higher margin and operating income.variegation This is the very beneficial in the issue with conglomerate merger. These benefits are direct risk reduction and liquidity enhancement.Reasons for Merger and Acquisition are 1) to put on cost efficiency through Economic of scale and scope 2) to improve products or services through Vertical Integration 3) to become more competitive because expertise is required acquire talents 4) to get monopolistic advantages and at the same time reduce competitors255) with Diversification reduces an investors exposure to firm-specific risk.26Wholly owned subsidies Market entry through a wholly owned ancillary consist of two distinctive strategies it can be achieved through a Greenfield investment or through an acquisition. Greenfield investment is a form of direct entry mode w hereby a parent firm extends its operation in a host country by constructing a new running(a) base from the scratch. It is remarkable for the complexity and the high cost of its development and implementation. For example, in order to establish successfully in a foreign market, it is anticipate of a firm to have an extensive knowledge and expertise of the new market, and for this to be possible, a reasonable help from the third parties such as local independent consultants are required, and their services are usually very expensive. The cost of its implementation makes Greenfield investment in a foreign market a very risky mode of market entrance. Acquisition in the other hand offers the fastest means of achieving market power. As explained above, this strategy requires buying a rival firm, distributor, supplier or a firm which is related or entirely unrelated to the acquiring firms industry, in order to gain access to core competencies and achieve a greater competitive advantage. 27The fact that it is easier and more accurate to estimate the outcomes of an investment through an acquisition makes acquisition a less risky alternative in equality to Greenfield investment. measure strategies of market entryIn this part quantify strategies as a different kind of internationalization will be described. Timing strategies could be divided into two categories 1) strategies for market entry in a specific country, called country-specific timing strategies, and 2) strategies for market entry in more countries synchronous, called cross-border timing strategies.28Some important factors which should be analyzed before a timing-strategy can be chosen are competition in the market, technology, substitute, customer look and the market potential as well as market growth. If this is through with(p) a company can decide which timing strategy is utilizable to reach the companys goals.29Country-specific Timing StrategiesA company has to clarify when they want to enter into a new market. Most times the decision for a strategy depends from the strategies of the competitors in the target market.30Now the first- removal firm as well as the retainer strategy will be described and benefits and risk of each will be identified. First-mover Strategy Companies those are first into the industry or nation. The advantages of the first-mover are mainly that the firm has a higher awareness level as well as more time for image advanceing in the market. Additionally, the firm gain more and anterior experience which enables them to adapt itself earlier to changing market environmental. Moreover, the firm can recruit educated employees and build up intensive relationships with market entry. Disadvantages are the free-ride-effect, which described early following who will benefit from the investments of the first-mover. Additionally, the high costs of exploitation of the target market and the high risk of failure.31As an example for a first mover strategy could be named apple. The iPhone, iPad and most of the other products from apple were innovative and the first products in the target industry or nation. Follower Strategy Companies which follows the first mover or enter the market after it has become established. The advantages of the colleague are mainly that the firm can avoid the mistakes of the first mover, have access to reliable information about the market, can profit from the investments of the first-mover hence, cost reduction for example for infrastructure or education of employees. Disadvantages are market entry barriers created by the first-mover, less experiences over the market situation, finding of suppliers and to gain the loyalty of potential customers.32As an example for followers Microsoft could be named. Microsoft offers a smart phone after the successful iPhone implementation of Apple.Cross-border timing strategiesCross-border timing strategies are the waterfall or sprinkler strategies.33The falls strategy described a scenar io in which a product or a service is in stages moved into the target market while the sprinkler strategy implements a product or service in several countries at the same time.34Advantages of the Waterfall strategy are that the expansion can take place in a systematic method. Hence resources are needed one-by-one and not at the same time to enter successful all the target market. Furthermore, the life cycle of some technologies or products can be extended and experience can be used for the next market entry. Additionally, it is a relative less risk strategy. Disadvantages of the waterfall strategy could be the long time period implementation. In fast moving markets this strategy might be too slowly.35Furthermore, the competitors will be warned so that they can build up more market entry barriers for example.36Examples for the waterfall strategy are the vacuum tube group, which used the experiences of the last market entry when they open a new subsidiary in a new market37as well as Dell, Benetton and The Body Shop.38The Sprinkler strategy is has the contrary strengths and disadvantages as the waterfall strategy. within a short time period the strategy were implemented in lots of target market. The sprinkler strategy generates first-mover advantage. It is a very functional strategy in hyper and time-based competition markets. Disadvantages are the high amount of resources required for entering and the risk of failure because of less knowledge or experiences of the different countries. Examples for the sprinkler approach are Microsoft with its Windows software and Gillette with its Sensor.39ConclusionIn this assignment, the major importance of a well-thought-through selection of a market entry strategy has been shown and different types of entry modes have been presented and further analyzed.Market entry strategies can have a far-reaching impact on an organizations global strategy. Selecting the best entry strategy is a complex decision-making process and invo lves various considerations. The importance of which aspects should be taken into closer consideration can vary by the strategic goals of a company, by country, and even by industry. Which entry strategy to choose highly depends on various strategic factors like ease of exit, speed of entry, cultural distance, and competitive intensity. Under all conditions, there will be no angel option. In all cases, methods of market entry should be adjusted to the organizations long strategies and goals and should be based on future ambitions as well as on current resources and capabilities. Companies do not only benefit from the advantages, but will also have to cope with disadvantages of a chosen entry strategy. Therefore, compromises often have to be made when going international. Ultimately, todays organizations will have to remain flexible enough to incorporate the high degree of dynamism in an ever-changing business environment.II. Works CitedA BooksAhlstrom. D./ Bruton, D.G. multinati onal Management world(prenominal) Management Strategy and Culture in theEmerging World, Student Edition, South-Western CENGAGELearning, Mason 2010Berk, J. / DeMarzo, P. Finance incorporated Finance, Pearson, Boston, 2006Berndt, R. / Altobelli, C. F. / Sander, M. MarketingInternationales Marketing-Management, 4. Auflage, Berlin Heidelberg, 2010Boone, L./ Kurtz, D./ McKenzie, H./ Snow, K. Contemporary Marketingcontemporary Marketing, 2nd Canadian Edition,Nelson Education Ltd., 2010Brealey, R. A / Myers, S. C. / Allen, F. FinancePrinciples of Corporate Finance, 8 Ed. McGraw-Hill / Irwin, clean York, 2006Damodaran, A. FinanceCorporate Finance, Theory and Practice, 2nd Edition Wiley,New York 2001Dony, A.G. C. MarketingMarket Entry Strategies for consumer Goods Industry in the PR China An empirical record on the Beer and Soft Drink Industry. Difo-Druck GmbH, Bamberg, 1998Hitt, A. Strategic ManagementStrategic Management Competitiveness and Globalization, fourth Edition, Nelson, New York , 2009Kerin, R./Hartley, S./Berkowitz, E./Rudelius, W. MarketingMarketing, 8th Edition, McGraw-Hill/Irwin, New York 2006Kutschker, M./ Schmid, S. International ManagementInternational Management, 6. Auflage, Oldenbourg 2008Meffert H./ Burmann C./ Kirchgeorg M. MarketingMarketing Grundlagen marktorientierter Unternehmensfhrung,10 Auflage, Wiesbaden 2008Paul,J./ Kapoor, R. International MarketingInternational MarketingText and Cases, Tata McGraw-Hill Publishing, New Dehli, 2008Peter, P. / Donnelly, J. Marketing ManagementMarketing Management Knowledge and skills, 5th Edition,McGraw-Hill Companies, 1998Root, F. R. MarketingEntry Strategies for International Markets, Lexington books,New York, 1994Weitz, B. / Wensley R. MarketingHandbook of Marketing, Paperback Edition, London, New Dehli,Thousand Oaks, 2006Yu, L. The International Hospitality BusinessThe International Hospitality Business Management andOperations, Haworth Hospitality Press, New York, 1999B Internet / WebsiteNiti, B./ Nemer, B., Businessweek.comBrand Magic in India, http//www.businessweek.com/innovate/content/may2006/id2006 0508_952455.htm, 2006III. AffidavitThis case analysis is the original work of the authors. It has not been presented elsewhere for grading. All sources have been indicated to the best of the writers ability.Ort, Datum key signature Anja ChanOrt, Datum Signature Annika NienaberOrt, Datum Signature Emmanuel OfobezeOrt, Datum Signature Jana Theresa GermerothIV. AppendixAppendix 1 Waterfall Strategy40Appendix 2 Sprinkler Strategy41

The Function Of Food Ordering Online

The Function Of victuals Ordering OnlineFood ordinance online is becoming a norm for restaurants which offer takeout and delivery orders. Food kick the bucket order online is designed as it is terms effective yet an expeditious dust to satisfy the restaurants requirements. The system is also designed for its ultimate flexibleness and performance. The clients leave behinding be able to access into the comp twain existing website and grade at their menu and select and place their orders on what they desire. Once they choose completed their order, the system pull up stakes either email or fax the guests order to the restaurant.The online request system also enables customers to order days advance(prenominal) and the system will execute the order at the specified measure. The system has been built to handle large amounts of traffic simultaneously to prevent a system overload.This system is also flexible in a way, whereby customers atomic number 18 able to place o nline orders quickly, with just a click comparing to the tradition where orders were taken through the phone. More quantify and cost will be saved request online as a phone bill is charged according to the condemnation the phone is on the line. The system was engagementd in lean to meet the requirements of all of the clients.With the online order system, the confederacy could save on dig up cost as less citizenry argon needed in operating the website, instead of people operating a restaurant. With the internet, there will be fewer errors on the orders or miscommunication amongst the customers and the person fetching orders. Besides, it provides incidentally go. The software examines all regimen orders prior to the completion and corrects human errors. Also, with this system, the registration of online guests is utilized to create valuable marketing campaigns. Internet databaseOnline society is palmy and convenient yet they shed more to improve on their online order ing system. It is good that online ordering system has linked the customers information with the database of the system which facilitates the ordering of customers. In addition, customers information could be tracked easily from their database rapidly if they are regular customers.AdvantageWith the escort in of the 21st century, many people impart found out that it is basically easier to purchase items online. This depends on the consumers preferences. well-nigh people feel unsecure buying items online because they cannot have physical touch or sight with the items they wish to buy. In this case, some people prefer to have the pizza straight from the oven when it is served.Online acquire provides additional customer service. They not moreover provide goods, but also provide extra run, such(prenominal) as delivery to the destination that they have requested for. Online purchasing eliminates order taking errors. Customers can view the entire menu and all special offers via semio fficial website though online. The system records customers orders when purchasing has taken place. Extra serve for use exchangeable estimated delivery and carryout times are provided to customers.When ordering via online, even during a busy period such as lunch or dinner party time, customers would not have a problem in contacting them and placing their orders. The customers just need to order via online and the system will automatically generate and put it on queue.Online ordering records and workshops past records of orders make and allows the customers to view them anytime during their online ordering session. These records will store at the database.The biggest advantage to ordering online, that the customer can save a lot of time and effort. Customers can choose to complete their orders within seconds or take their time and finish when they wishing. in that location are no time limits for them to complete their orders, thus, customers can take up any amount of time to o rder. Instead of planning out time in daily document to go out and fall in a purchase, the consumer can instead go to the web-site when they have a free moment at work or at home late at night, and realise up the produce that the customers are run acrossing to purchase. They view the full menu and can order any combination of food while the prices are displayed and calculated as they go. It is practicallytimes easier to make large and complex orders online because they have the ability to be patient, cerebrate their options, and calculate different pricing schemes.Consequently, a customer can use that to their advantage and alone do businesses with sites that will help put their proceeding through quickly and thoroughly. Addition to that, the advantage of online purchasing is the ability to look at merchandises late at night. Even though the stores have unlikeable for the night, customers can place orders for the next day while the web-site stable form available to make purchases. This means that even later a abundant day at work, and coming home to deal with the family, the customer still have time left to go online and look for the harvest-home they want to purchase. The Internet is there is open 24 hours 7 days, and is always willing to wait for customer to come make a purchase.By difference online, the customer do not have to worry about the hassles, such as when they decide that it is time to check out, they do not have to waste the extra time queuing in line. By ordering online, the customer can also take advantage of deals that are only offered to online customers, and often beget products that wouldnt be available at a walk in store and special offers are given to online customers.In addition, online ordering increases customer visiting the Dominos Pizza official website. It also gains customer merriment and loyalty throughout the company. Due to its convenience of online purchasing service, customer purchase frequency also may incre ase . The company eliminated or trim d give birth labor costs associated with manual order taking due to technology computerize replaced labor usage. For the Domino Pizza Company, the online ordering system accepts both online and traditional coupons to attract more customers.Customers who order on the web tend to order more because they have a menu in bm of them. Robert Mackay, Dominos Pizza Marketing DirectorCustomers who order online are prove to order more per order because they dont feel rushed while purchasing, as they often do over the phone.An Online Ordering website guarantees that the message, promotions and add-on offers are communicated to the customers and depose less on employees. Also, time is saved by not having to place the order into the Point Of Sale System. Between that, fewer mistakes occur during online ordering pizza.Online Ordering provides the perfect solution for office lunch orders. Orders can be collected around the office and one person can read t he orders into the website without the hassle of calling it in. They can take their time and get it right.There are some(prenominal) ways in which online food ordering from a restaurant may occur. A restaurant can have its own website with easy features for placing an order for pick-up or delivery. Some add a terce option of being able to make reservations. Instead of calling for a delivery, people just access the Internet, head to the restaurant site and make their order.In financial factor, online ordering system increase the efficiency and cost effectiveness of the ordering operations. For the advertisement, it can create easily or upload promotions to the online ordering site. For instance, this system can increase the customers guest check automatically by customer email by suggesting upcoming sells for additional products. Online ordering increases in sales of goods in the Domino Pizza Company.DisadvantagesThe trend of obtain online, especially ordering pizza online has gr adually been significant in the give out decade and online sellers are expected to have improvements on the volume of sales after website features and services altered. There is no doubt that the customers can find great deals online and so many different products which may not be even available in regular stores. By the way, there are certain(a) wrongs of online ordering.Normally when we shop from a regular store, we can go directly to a sales person face-to-face to enquire and crystallise our doubts regarding the food we ordering. It is possible that customers would have a unseasonable idea of what the products and services is about as the customers and the employee cannot deal face-to-face for a clear explanation.The chances of mishandling the big money are volatile. There is a possibility that raptus abroad will damage the presentation of the food that customers ordered and the customer realize it after opening it when the package was delivered and that the person deliver ing it has already left as food could be very fragile.Another disadvantage is that a lot of companies which sells online assert that customers have to pay for the shipping and delivery charges depending on the weight of the product the customer orders. Only a few companies with websites offer free shipping services while some companies provides free shipping services only if the customer has a total purchase of prices exceeding a certain amount. The shipment fee charged often is one of the reasons that customers would not like to order goods online as it is more expensive and does not guarantee that the goods delivered will be in good shape.However, a company must consider on the target market they would like to focus on promoting their products and services to. The elderly are most un in all likelihood to order goods online due to their intimacy of operating a computer. Therefore, if the target market includes the elderly, a traditional service has to be provided to them.Online c onnectivity issues are the greatest disadvantage for online ordering. The customers add items in online shop cart, enter information and press submit. The confirmation screen might time out when the internet has an unstable connection. The online customers would not know whether the order has been made or not while reloading the page may cause several billing or several orders.Moreover, customers may also make human errors, such as ordering the incorrect item. This can occur when the customer attempts to place an order. The customer may have accidentally clicked on the wrong item while placing their orders through the website. Even if the consumer clicks on the correct product and provides an accurate product number there may still be mistake made in the ordering process if there are options associated with the item. This problem can be rather disturbing because the consumer will get agitated when the incorrect item is received and therefore, loses customers loyalty towards the comp any.Another disadvantage is that purchasing online would mean that personal information has to be given to the company when purchasing is taken place. Some companies take advantage of this feature. By purchasing on the Internet, the customer would have to take the risk of having their information taken by online companies and misused. Though this is a very rare occurrence, it is more likely to happen online, than in person. To avoid personal information from being exposed, customers would normally look for a trustable company to purchase goods from.More often, what people despise about online purchasing is that delivery services are only curtail to certain areas. As a result, people living in cracker-barrel areas are at a disadvantage whereby they will need to go to the destination whereby the company is able to deliver.

Friday, March 29, 2019

Analysis of the Organic Food Industry in Malaysia

Analysis of the innate solid regimen Industry in MalaysiaChapter 1Introduction1.1 IntroductionToday, with the advancement of science and technology, gentlemans gentlemans build much(prenominal) exposure to take technology, neckledge and education than ever before. As a result, throng sour more aw ar and sensitive to the surround and their touchs. A case and wellnessy life style lay atomic pile be stupefys a pleasing of want to the modern generation. Among former(a)s, primitive nourishment is recognized to be oneness of the contri providedors to a level-headed lifestyle. Al roughly all(prenominal)(prenominal) day, you apprise read or check into constitutive(a) topic everywhere around you. From newspaper, magazine, billboard advertisement, mesh and etc, ingrained has slowly becomes a tr turn back to the modern society.However, a a couple of(prenominal) issues befool been identified in the ingrained Industry in Malaysia. These ingredients halt a str ong role in influencing the acquire and con center of attentioning of natural Food in Malaysia. Therefore, it is master(prenominal) to identified and understand every factor of lure that affect the purchasing and consuming of positive intellectual nourishment in Malaysia as all this factors forget affect the entire exertion from invokeer, retailer, produces and rase the consumers.1.2 minimize of Study1.2.1 What is innate dietBased on joined State, European, and inter topic commentarys, constitutional aliment is correct as with fall out victimization whatever genuine substance in the viands itself, but instead by the holistic methods utilize on thorough farms. According to Gracia and Magistris (2007), the intention of essential implement is to eliminate chemic mathematical functiond on the feed merchandise in fix to promote fitter and safety victuals. moreover, thoroughgoing nutriment besides representation that it is non cultivated using chemic al-derived pesticides fertilizers and herbicides. As an alternative, the emersion of put and farming the thoroughgoing pabulum ar by using holistic methods much(prenominal) as compost, crop rotation, and biological agents over a infixed period of time. According to National Organic Standard carte du jour of the U.S plane section of market place-gardening ( farming) in stratum 2000, they established a national quantity for the term thorough. Organic victuals, it is defined by how it back non be make earlier by how it nominate be made, which must be produced without the used of sewer-sludge fertilizers, most synthetic fertilizers, and pesticides, transmitted engineering(biotechnology), emersion hormones, tools and antibiotics (TheStar, 2005). From the individuals point of view, original mingys it is loosenhanded in a born(p) environment without some(prenominal) chemical, antibiotics, genetic engineering, and any synthetic products or in simple authority , constitutional mean pictorial or go back to the traditional focus of modes of agricultural.As an overview, the developments of native regimen al ship sort work in cooperation with nature environment. usually pluralitys definition of native solid nutriment maybe was provided vegetables and fruits, but really mountain of intellectual nourishments kinfolk like m preys, eggs, livestock, dairy products and many more atomic grantoff 18 in any case conclude as essential food. This issues back up by the explore conducted by Padel and Foster (2005) where respondents except associate total term with vegetable and fruit. Generally, thoroughgoing food includes plenty of categories which include vegetables, fruits, bread, meat, eggs, coffee, juice, rice, tea, potatoes and etc. Other than that, thorough food like egg, meat must be take over of all miscellanys of antibiotics or appendage instinctively in a clean environment.To sum up, radical food is more environme ntal friendly since it does non arrive at any befoulment and waste to the earth. Besides, they go along a tremendous chance to man being which led to level-headed lifestyle and provide a reveal environment. Organic consumers keep a importee of who ar non nevertheless prefer an advanced and healthier lifestyle but overly environmental exportation and responsible to take cargon of the nature (Midmore et al, 2005). In addition, it to a fault brings advantage to whole sparing by addition pedigree activities, trade, yield and consumption.1.2.2 The fact of primitiveThe rise of springing thorough food and rose-cheeked lifestyle in both developed and developing country is not just a passing fad. The popularity of consuming thoroughgoing food is promptly in an change magnitude manner in all over the demesne where it besides includes Malaysia. Increased consumers concern and c ar regarding food safety and quality as well as health and nutritional aspect of food res ulted in appendd convey toward total fertilizerally produced food. Such trend is a agreeable of reaction to legion(predicate) health affair related to mathematical operationed food (Davies et al, 1995). Refer to the press release post by Nestl Malaysia in class 2008, it shows that constituent(a) harvest-feast stressed 8.9% including 3.4% of real internal growth. In Europe, primitive growth of Nestls total Food and Beverages profession is some 5.4% and the growth grade is presented around 9.5% in get together State and Asia, Oceania and Africa is at the outrank of 14.2%. usable food such as health supplements and primitive food was intercommunicate cave in RM234bil (US$65bil) in 2003 at global trade calculate. It is foreshadowd reach RM601bil (US$167bil) in 2010 by has the growth measure of 14% annually.According federal inelegant Marketing Authority (FAMA), in the year of 2001 the sale for fundamental food has achieved USD 8 billion world wide. The sale honor of extreme food is estimated to baffle growth tell at 20-30% by year 2005. The judicature stated that if compargond with others agricultural products, innate food has tall probable for commercialisation in Malaysia. Demand for healthy, environmental friendly wreak food, b saylinely chemical used fresh food, radical food and natural food are caused by increasing of consumer consciousness in nutrition value and health sensible (Malaysia Industrial Development Authority, MIDA, 2009). Malayan start to increase their claim since they believe that consuming total food is one of the out watch ways that led to a healthy lifestyle and they view this as a deservingy investment for their heath. The concern of consumers toward food safety, quality and the environment give an opportunity to the complete diligence and become more semiprecious for makers and retailers. As a part from that, it in like manner activates the constitutional agriculture welkin in Malaysia .The rises of consumers awareness of healthy lifestyle along with environment free of pollution consume created a wonderful opportunity and trade for organic food. However, it is tricky for producer or businessman to manage the sound products at a right time, right price and console right place with prepossessing promotion since the changes of consumer demeanour was so unstable imputable to heterogeneous sweet of reason, so it is very complicate to fix or to define how the consumer be capture. push downr demeanor carries the nub of activities community undertake when dumbfounding, consuming and disposing of products and services (Kozak, and Decrop, 2009). As a result, watch and disposition the consumer deportment and leadingness of consumers to make for organic food is a vital hit the hayledge for foodstuffers, producers and businessman. There is a behavioural place proposed by Von Alvesleben (1997) address that product information, product perception and attit udes are the important factors that train consumer behaviour. When we believe that an object or brand possess gilded attributes or take a shit bang-up feeling then we will obligate near attitudes toward it. As we all know, when consumer attitudes are more desirable, the intention to grease ones palms is stronger. In this seek, it is more focus on consumer preferences and their willingness to pay when they wish to obtain organic food. The result can help marketers and policy shaping machines develop strategies to reach customers more effectively and efficiently.1.2.3 Natural Food vs Organic food close to of the people are often confuse approximately the incompatible surrounded by organic food and natural food. Moreover, people though organic food and natural food admit the identical attribute and tend to work on or mean both the same. In fact, in that respect are authoritative features that speciate organic food and natural food.Obviously, the important factor di sagreement the devil is organic food must be certified by United Stated Agricultural Department ( husbandry) and organic food feature high quality. We can notice that organic food have labeled organic and this label represent the products are considered as organic by USDA and get the stamp of approval from projected composition. Products which stamp by USDA or labelled with organic must contain at least 95percent organic. Organic food can either labelled by unconnected deposition which is USDA or certify by local anaesthetic anesthetic make-up which is Malaysia Organic organization (SOM). Products that labelled with SOM carry a meaning which is the bear upon of output inspected by departments Crop Quality Control Division. The specimen where SOM comprise is Sirim MS 15292001 banals. The guideline applied to control whole process of organic food which includes fruit, processing, labelling and marketing of plant-based organically produced food and lastly, series rate will be provided in tell to ease the identification process (SOM). Previously, authentication and offer for limited organic food such as vegetables, fruit and etc. In general, Malaysia organic aquaculture products were under the face of Thailands Organic Aquaculture Farms and Products Certification Centre (OAPC). In regulate to enhance aquaculture manufacturing in Malaysia, fisheries department provide organic scheme for organic aquaculture achievement. Additional, this action can minimize the cost of apply organic aquaculture certification from other country.Moreover, organic food always free of chemical fertilizers, pesticides, bioengineering or irradiation during produce, manufacture and handle (Annadana,2009). Besides, livestock must be free of growth hormones and antibiotics. On the others hand, at that place is not any specify standard for natural food and it is grown with pesticides, herbicides and chemical fertilizers. Basically, natural food have minimal processing and do not contain refined loot or artificial ingredients and without altering the raw product (Hermitt, 2006).1.2.4 Consumer vs CustomerGenerally, most of the people have categorized both consumer and customer in the same category where it carry the meaning of procure any products from sellers. Conversely, both of the haggle carry diverse meaning. According to Kotler and Armstrong (2006), consumer is the person who leverages any products for personal use or they call end drug user. Basically, consumer is the individual who had previously barter ford or up-to-date users for extra product. On the other hand, the word customer carries different meaning in different perspective. In business market, customer is the individual or geological formation who purchase the product but not for own consumption. The products will become their inventory for further production or resell to end user (Kotler and Armstrong, 2006). Customer can either is a current user or only a potency cust omer for the product (Wikipedia).1.2.5 Organic sedulousness in MalaysiaSince 1990s organic market has grown in a favorable beat. Thus, sale of organic food and products are forecasted to be betwixt USD 20 and USD 30 billion yearly. USA is the biggest organic market result by Germany and United Kingdom. In certain country such as Denmark, Sweden, Austria and Switzerland have 4% share of organic food which give-up the ghost in the total food gross sales. On the other hand, organic market in developing countries is small but considers growing especially in stop number income developing countries. Figure 1.3 shows the coverage of organic farm in different country in year 2005.Malaysia is located in southeastward Asia and consists of both mainlands which is Peninsular (west) Malaysia and East Malaysia with an battleground of 329,750 km2. The agricultural firmament in Malaysia is well-nigh 10.24% (738,677 / 75,657) of GDP in year 2008 (Department of Statistics Malaysia). Organic farming in Malaysia was started by Center for Environment, Technology and Development, Malaysia (CETDEM). During year 1986 CETDEM started their organic farm in Sungai Buloh with only one hectare plot. According to Department of Agriculture (DoA), there is 131 hectares of organic farm in Malaysia during year 2001 and approximates organic farming increase to more than gee hectares in year 2005. In year 2008, there are round 1000 hectares of registered and 2800 hectares of unregistered organic farm. send back 1.1 Organic production areaSource Organic coalescency Malaysia, 2007Organic farming and production had started up during year 1990. over callable to increase in favorability and contend toward organic products this street corner market is growing continuously. Consequently, there is increase in the number of organic organization which include government department and non government organization (mesa 1.2).Table 1.2 Organic organization in MalaysiaSource Better aliment Isl am, 2009 Malayan organic scheme (SOM) is the organization that has the right to give certification to organic farmers. Today, there are 28 Malaysian Organic Scheme (SOM) certificate Holders in nationwide with a total area of 1244 hectares (Table 1.3).Table 1.3 Malaysian Organic Scheme (SOM) Certificate HoldersSource Department of Agriculture Malaysia, 2009Due to increasing in organic farming and production, the number of organic retail outlets is also in the increasing manner. As a result, there are many organic companies have started their business such as Justlife, BMS, boorish farm, ZenXin, Woots and etc. Organic food was previously consumed by genus Cancer patients or patients who had serious health difficulty. Today, organic food becomes a option for every family or even each and everyone. As we know, Justlife is a famed retailer of organic food and organic products. Justlife has only owned one-half of a whole retail shop at SS2, Subang Selangor with limited organic produ cts and food. Recently, they are success and owning eight retail shops in Malaysia. Accordingly, we can come that consumer shoot of organic food and products is rising in recent year.Since the take of organic food and products are increasing, government has putting effort in order to encourage producers to involve themselves in organic farming. Besides, government mentioned in ordinal Malaysia Plan (2006-2010), they estimating the value for organic farms industry will be worth RM800 million after five year and plan to have 20,000 hectares of organic farm in year 2010 (Economic Planning Unit). During year 2001, Organic Alliance Malaysia (OAM) was found and this organization act as a private domain association to form national network. Government has tried to match the demand by increase the number of producer and organic farmer. However, we still permited by imports and the amount of foods that we imported from other country is about RM10.9bil or 8.7% of total import. Therefo re, a study on consumer behaviour is crucial in order to forecast the demand and prepare for bring out.According to local makeup, a supplier Kerby Ho of KK Hoganik told that demand for organic fruits and vegetables were increase at about 8%-10% every month (NST, 2008). Informed by organic-certified middleman beaming Codes manager- Loke Siew Fong in local report, the sale is experiencing double digit growth. She added that consumers are having high awareness on health issues nowadays and search for organic food rather than constituted foods (NST, 2008). As a result, enquiry on consumer behaviour can tell supplier with fact reason wherefore they demand for organic food and advance dread the trend of organic market.Moreover, the need of communicate for both organic concept and build market sanction are vital in Malaysia market. Most of the citizen were still choosing pompous foods as usual and refuse to purchase organic food due to their own personal reason such as inconven ience, price, knowledge and others. Consequently, marketers have to know the concern of customers or citizen in order to better repoint the market and segments.In short, organic market is in an encouraging rate and it is a potential market for marketers, farmers, suppliers, wholesalers and retailers to aim. The reason why and how the demand increase is important for them to study in order to make outr the organic fans at the right time and right place with sufficient supplies.1.3 Research jobConsume organic food has become an important subject for at present in changing social graphic and emerging trend. Government had been aware of the magnificence of organic sphere of influence since early of 1990s. The Organic Trade tie forecasts sales of organic food will be increase by 18% annually through 2010. Organic products become part of the characterisation for everyone at the present time and customer base of organic sector expect to rise and retailers continue to provide wider v ariety of organic food. Commissions communication were presented in December 2002 that they are planning to increase their efficiency, transparency and consumer confidences in order to develop the market for organic food (Gracia and de Magistris, 2007).Refer to a report found in OAM in November 2008, Katherine diMatteo, president of the International conspiracy of Organic Agriculture consumers seek organic produce as a way of environmental degradation, or as the best way to eat healthy foods. Besides, government and others view that purchasing organic is a darling way for developing fair trade due to most of the organic farmers are small-scale producers. The trend of eating and purchasing organic has boosted up the organic sector in constructive rate. Transaction and trade of business have increase indirectly and these also bring a healthy rate for Malaysia economy. Consumers also willing to pay for organic food during economy down turn in June 2008. Economy down turn do not bro ught a strong match to this industry and the sale of organic food still in a healthy and encouraging rate. As a result, we confidents there are something behind the consumers to motivate and move them to purchase organic food.At one time, people always believe that consumers prime(a) was uncrystallised and natural but at this moment, people know that human behaviour is manipulated, push or even forced by reason. For instance, health conscious is affecting consumers where they will hunt for organic food in order to replace conventional foods. Nevertheless, this is only one of the hypotheses or assurance that we can made, we cannot prove that this is the accurate definition for the question Why the demand of purchasing organic food is increased from year to year? Additionally, there are many factors that keep moving people from conventional foods to organic food. Hence, study on the factor that affect consumers willingness in purchasing organic food is an essential issue to furth er understand consumers mind and support organic.Furthermore, propulsive issues and factors which influence consumers are changeable among individual and purchase finale of organic food will depend on many variables such as consumers attitudes toward environmental protection and healthiness (Gracia and de Magistris, 2007). Human behaviour and customers pickax is not impulsive, unconscious, inborn and natural. Conversely, consumers behaviour is always motivated by the environment, enthusiasm, champ and sense (Ajzen and Fishbein, 1980). Consumer willingness to pay for organic food may influence by numerous factors. Human beings easily get influenced by the environment and objects surrounding them. We have no capability to freeze their consumption and purchase behaviour. The only way that we can do is to study deeply on what are the main aspects they are focusing and what are the essential factors that manipulate their purchasing. More to the point, people perception and pauperiz ation in purchase organic food are vary from country to country. There is different demand in different county with different culture.In order to have a good explanation to answer the entire question and have a deep understanding of customers willingness to pay during obtain organic food, we come out with the bother bid What are the main aspects that manipulate consumers willingness to pay for organic food. insurance policy maker seek consumer oriental analysis in organic sector since the information is crucial for them (Gracia and de Magistris, 2007). The study not only can improve the understanding of consumer behaviour and factors that affect customers but it is also a required research to help marketers to market the products, help government to better know the needfully of citizen, help retailers or wholesalers to do some related activities to encourage consumers in order to choose organic food and help producer to estimate the production in future.1.4 Research ObjectiveT he main design of this research is to recognize some of the essential variables that motivate or chivy citizen in Malaysia in purchasing organic food. Organic market is a potential and profitable market for marketers to have a deep study on it since the demand of organic food is keep increasing nowadays. Besides, organic industry did contribute to Malaysia economy and citizens health, as well as the environment. In my opinion, customers belief, feeling, attitudes, motivation and demand trend would bring a deep impact on food industry and this will bring challenges for marketer to design marketing strategy. The following objectives are built to achieve goals of this study.i. To study the determinants that motive consumers willingness to pay for organic food.After identify all the factors, we can better stub and server our customers when they doing their purchase. When retailers know all the factors and possess this advantage, they can come out with following step such as education fair, seminar or others kind of exhibition to influence or encourage customers in order to purchase organic food. Moreover, eating organic food can scavenge and plug the earth. Consume organic food not only healthier but also more environmental friendly if compare with conventional foods. By educating others customers about the benefit of consuming organic food, sales of organic food will definitely continue to double up in the future. By the way, this also can help marketers to better market the products and also designate potential customers easily. Lastly, this as well will contribute to stinting growth and better environment for next generation.ii. To better understanding consumer buy conclusiveness and contribute precise data to policy makers.There is a problem that release by NST on November 2008 which is the number of organic ally is increasing however there are too few farmers to serve the macroscopical pool of consumers. As a result, we can overcome the problem of supply and demand after knowing the reason why customers purchase organic food or not. Moreover, most of the researchers showed consumers are willing to pay for high quality food. If this research can prove that there is a earthshaking result between quality and willingness to pay. Related organization can directly take action in order to strengthen organic production governance.iii. To study the impact on organic food industry due to the issue of health conscious.Recently, health conscious becaAnalysis of the Organic Food Industry in MalaysiaAnalysis of the Organic Food Industry in MalaysiaChapter 1Introduction1.1 IntroductionToday, with the advancement of science and technology, humans have more exposure to information technology, knowledge and education than ever before. As a result, people become more aware and sensitive to the environment and their surroundings. A quality and healthy lifestyle have becomes a kind of necessity to the modern generation. Among others, Organic Fo od is recognized to be one of the contributors to a healthy lifestyle. Almost every day, you can read or see Organic topic everywhere around you. From newspaper, magazine, billboard advertisement, internet and etc, Organic has slowly becomes a trend to the modern society.However, a few issues have been identified in the Organic Industry in Malaysia. These factors have a strong role in influencing the purchasing and consuming of Organic Food in Malaysia. Therefore, it is important to identified and understand every factor of influence that affect the purchasing and consuming of organic food in Malaysia as all this factors will affect the entire industry from farmer, retailer, produces and even the consumers.1.2 Background of Study1.2.1 What is organic foodBased on United State, European, and international definitions, organic food is define as without using any material substance in the food itself, but instead by the holistic methods used on organic farms. According to Gracia and Ma gistris (2007), the intention of organic production is to eliminate chemical used on the food production in order to promote healthier and safety food. Moreover, organic food also means that it is not cultivated using chemical-derived pesticides fertilizers and herbicides. As an alternative, the process of planting and farming the organic food are by using holistic methods such as compost, crop rotation, and biological agents over a natural period of time. According to National Organic Standard Board of the U.S Department of Agriculture (USDA) in year 2000, they established a national standard for the term organic. Organic food, it is defined by how it cannot be made rather by how it can be made, which must be produced without the used of sewer-sludge fertilizers, most synthetic fertilizers, and pesticides, genetic engineering(biotechnology), growth hormones, irradiations and antibiotics (TheStar, 2005). From the individuals point of view, organic means it is grown in a natural envi ronment without any chemical, antibiotics, genetic engineering, and any synthetic products or in simple way, organic mean natural or go back to the traditional way of modes of agricultural.As an overview, the developments of organic food always work in cooperation with nature environment. Normally peoples definition of organic food maybe was just vegetables and fruits, but actually plenty of foods category like meats, eggs, livestock, dairy products and many more are also conclude as organic food. This issues supported by the research conducted by Padel and Foster (2005) where respondents only associate organic term with vegetable and fruit. Generally, organic food includes plenty of categories which include vegetables, fruits, bread, meat, eggs, coffee, juice, rice, tea, potatoes and etc. Other than that, organic food like egg, meat must be free of all kinds of antibiotics or growth naturally in a clean environment.To sum up, organic food is more environmental friendly since it doe s not create any pollution and waste to the earth. Besides, they give a tremendous opportunity to human being which led to healthy lifestyle and provide a better environment. Organic consumers carry a meaning of who are not only prefer an improved and healthier lifestyle but also environmental exportation and responsible to take care of the nature (Midmore et al, 2005). In addition, it also brings advantage to whole economy by increase business activities, trade, production and consumption.1.2.2 The fact of organicThe rise of demanding organic food and healthy lifestyle in both developed and developing country is not just a passing fad. The popularity of consuming organic food is now in an increasing manner in all over the world where it also includes Malaysia. Increased consumers concern and care regarding food safety and quality as well as health and nutritional aspect of food resulted in increased demand toward organically produced food. Such trend is a kind of reaction to numero us health affair related to processed food (Davies et al, 1995). Refer to the press release post by Nestl Malaysia in year 2008, it shows that organic growth reached 8.9% including 3.4% of real internal growth. In Europe, organic growth of Nestls total Food and Beverages business is about 5.4% and the growth rate is presented around 9.5% in United State and Asia, Oceania and Africa is at the rate of 14.2%. Functional food such as health supplements and organic food was projected reach RM234bil (US$65bil) in 2003 at global market place. It is estimated reach RM601bil (US$167bil) in 2010 by has the growth rate of 14% annually.According Federal Agricultural Marketing Authority (FAMA), in the year of 2001 the sale for organic food has achieved USD 8 billion world wide. The sale value of organic food is estimated to have growth rate at 20-30% by year 2005. The organization stated that if compared with others agricultural products, organic food has high potential for commercialization in Malaysia. Demand for healthy, environmental friendly processed food, minimally chemical used fresh food, organic food and natural food are caused by increasing of consumer awareness in nutrition value and health conscious (Malaysia Industrial Development Authority, MIDA, 2009). Malaysian start to increase their demand since they believe that consuming organic food is one of the best ways that led to a healthy lifestyle and they view this as a worthy investment for their heath. The concern of consumers toward food safety, quality and the environment give an opportunity to the organic industry and become more valuable for producers and retailers. As a part from that, it also activates the organic agriculture sector in Malaysia.The rises of consumers awareness of healthy lifestyle along with environment free of pollution have created a wonderful opportunity and market for organic food. However, it is hard for producer or businessman to manage the right products at a right time, right p rice and still right place with attractive promotion since the changes of consumer behaviour was so unstable due to various kind of reason, so it is very complicate to fix or to define how the consumer behave. Consumer behaviour carries the meaning of activities people undertake when obtaining, consuming and disposing of products and services (Kozak, and Decrop, 2009). As a result, study and understanding the consumer behaviour and willingness of consumers to pay for organic food is a vital knowledge for marketers, producers and businessman. There is a behavioural model proposed by Von Alvesleben (1997) address that product information, product perception and attitudes are the main factors that drive consumer behaviour. When we believe that an object or brand possess favorable attributes or have good feeling then we will have good attitudes toward it. As we all know, when consumer attitudes are more desirable, the intention to purchase is stronger. In this research, it is more focus on consumer preferences and their willingness to pay when they wish to obtain organic food. The result can help marketers and policy makers develop strategies to reach customers more effectively and efficiently.1.2.3 Natural Food vs Organic foodMost of the people are often confuse about the different between organic food and natural food. Moreover, people though organic food and natural food own the same attribute and tend to treat or mean both the same. In fact, there are certain features that distinguish organic food and natural food.Obviously, the main factor difference the two is organic food must be certified by United Stated Agricultural Department (USDA) and organic food possessed higher quality. We can notice that organic food have labelled organic and this label represent the products are considered as organic by USDA and get the stamp of approval from designed organization. Products which stamp by USDA or labelled with organic must contain at least 95percent organic. Orga nic food can either labelled by foreign certification which is USDA or certify by local organization which is Malaysia Organic Scheme (SOM). Products that labelled with SOM carry a meaning which is the process of production inspected by departments Crop Quality Control Division. The standard where SOM follow is Sirim MS 15292001 standards. The guideline applied to control whole process of organic food which includes production, processing, labelling and marketing of plant-based organically produced food and lastly, series number will be provided in order to ease the identification process (SOM). Previously, certification only offer for limited organic food such as vegetables, fruit and etc. In general, Malaysia organic aquaculture products were under the governance of Thailands Organic Aquaculture Farms and Products Certification Centre (OAPC). In order to enhance aquaculture industry in Malaysia, fisheries department provide organic scheme for organic aquaculture production. Additi onal, this action can minimize the cost of apply organic aquaculture certification from other country.Moreover, organic food always free of chemical fertilizers, pesticides, bioengineering or irradiation during produce, manufacture and handle (Annadana,2009). Besides, livestock must be free of growth hormones and antibiotics. On the others hand, there is not any specify standard for natural food and it is grown with pesticides, herbicides and chemical fertilizers. Basically, natural food have minimal processing and do not contain refined sugar or artificial ingredients and without altering the raw product (Hermitt, 2006).1.2.4 Consumer vs CustomerGenerally, most of the people have categorized both consumer and customer in the same category where it carry the meaning of purchase any products from sellers. Conversely, both of the words carry different meaning. According to Kotler and Armstrong (2006), consumer is the person who purchases any products for personal use or they call end user. Basically, consumer is the individual who had previously purchased or current users for particular product. On the other hand, the word customer carries different meaning in different perspective. In business market, customer is the individual or organization who purchase the product but not for own consumption. The products will become their inventory for further production or resell to end user (Kotler and Armstrong, 2006). Customer can either is a current user or only a potential customer for the product (Wikipedia).1.2.5 Organic industry in MalaysiaSince 1990s organic market has grown in a favorable beat. Thus, sale of organic food and products are forecasted to be between USD 20 and USD 30 billion yearly. USA is the biggest organic market follow by Germany and United Kingdom. In certain country such as Denmark, Sweden, Austria and Switzerland have 4% share of organic food which exceed in the total food sales. On the other hand, organic market in developing countries is sm all but considers growing especially in upper income developing countries. Figure 1.3 shows the coverage of organic farm in different country in year 2005.Malaysia is located in Southeast Asia and consists of two mainlands which is Peninsular (west) Malaysia and East Malaysia with an area of 329,750 km2. The agricultural sector in Malaysia is about 10.24% (738,677 / 75,657) of GDP in year 2008 (Department of Statistics Malaysia). Organic farming in Malaysia was started by Center for Environment, Technology and Development, Malaysia (CETDEM). During year 1986 CETDEM started their organic farm in Sungai Buloh with only one hectare plot. According to Department of Agriculture (DoA), there is 131 hectares of organic farm in Malaysia during year 2001 and approximates organic farming increase to more than 1000 hectares in year 2005. In year 2008, there are about 1000 hectares of registered and 2800 hectares of unregistered organic farm.Table 1.1 Organic production areaSource Organic Allia nce Malaysia, 2007Organic farming and production had started up during year 1990. Due to increase in favorability and demand toward organic products this niche market is growing continuously. Consequently, there is increase in the number of organic organization which include government department and non government organization (Table 1.2).Table 1.2 Organic organization in MalaysiaSource Better Diet Islam, 2009Malaysian organic scheme (SOM) is the organization that has the right to give certification to organic farmers. Today, there are 28 Malaysian Organic Scheme (SOM) Certificate Holders in nationwide with a total area of 1244 hectares (Table 1.3).Table 1.3 Malaysian Organic Scheme (SOM) Certificate HoldersSource Department of Agriculture Malaysia, 2009Due to increasing in organic farming and production, the number of organic retail outlets is also in the increasing manner. As a result, there are many organic companies have started their business such as Justlife, BMS, Country far m, ZenXin, Woots and etc. Organic food was previously consumed by cancer patients or patients who had serious health problem. Today, organic food becomes a choice for every family or even each and everyone. As we know, Justlife is a famous retailer of organic food and organic products. Justlife has only owned half of a whole retail shop at SS2, Subang Selangor with limited organic products and food. Recently, they are success and owning eight retail shops in Malaysia. Accordingly, we can observe that consumer demand of organic food and products is rising in recent year.Since the demand of organic food and products are increasing, government has putting effort in order to encourage producers to involve themselves in organic farming. Besides, government mentioned in Ninth Malaysia Plan (2006-2010), they estimating the value for organic farms industry will be worth RM800 million after five year and plan to have 20,000 hectares of organic farm in year 2010 (Economic Planning Unit). Duri ng year 2001, Organic Alliance Malaysia (OAM) was found and this organization act as a private sector association to form national network. Government has tried to match the demand by increase the number of producer and organic farmer. However, we still supported by imports and the amount of foods that we imported from other country is about RM10.9bil or 8.7% of total import. Therefore, a study on consumer behaviour is crucial in order to forecast the demand and prepare for supply.According to local report, a supplier Kerby Ho of KK Hoganik told that demand for organic fruits and vegetables were increase at about 8%-10% every month (NST, 2008). Informed by organic-certified wholesaler Radiant Codes manager- Loke Siew Fong in local report, the sale is experiencing double digit growth. She added that consumers are having higher awareness on health issues nowadays and search for organic food rather than conventional foods (NST, 2008). As a result, research on consumer behaviour can tel l supplier with fact reason why they demand for organic food and better understanding the trend of organic market.Moreover, the needs of communicate for both organic concept and build market confidence are vital in Malaysia market. Most of the citizen were still choosing conventional foods as usual and refuse to purchase organic food due to their own personal reason such as inconvenience, price, knowledge and others. Consequently, marketers have to know the concern of customers or citizen in order to better target the market and segments.In short, organic market is in an encouraging rate and it is a potential market for marketers, farmers, suppliers, wholesalers and retailers to aim. The reason why and how the demand increase is important for them to study in order to server the organic fans at the right time and right place with sufficient supplies.1.3 Research ProblemConsume organic food has become an important subject for today in changing social graphic and emerging trend. Gover nment had been aware of the importance of organic sector since early of 1990s. The Organic Trade Association forecasts sales of organic food will be increase by 18% annually through 2010. Organic products become part of the picture for everyone at the present time and customer base of organic sector expected to rise and retailers continue to provide wider variety of organic food. Commissions communication were presented in December 2002 that they are planning to increase their efficiency, transparency and consumer confidences in order to develop the market for organic food (Gracia and de Magistris, 2007).Refer to a report found in OAM in November 2008, Katherine diMatteo, president of the International Federation of Organic Agriculture consumers seek organic produce as a way of environmental degradation, or as the best way to eat healthy foods. Besides, government and others view that purchasing organic is a good way for developing fair trade due to most of the organic farmers are small-scale producers. The trend of eating and purchasing organic has boosted up the organic sector in constructive rate. Transaction and trade of business have increase indirectly and these also bring a healthy rate for Malaysia economy. Consumers also willing to pay for organic food during economy down turn in June 2008. Economy down turn do not brought a strong impact to this industry and the sale of organic food still in a healthy and encouraging rate. As a result, we confidents there are something behind the consumers to motivate and move them to purchase organic food.At one time, people always believe that consumers choice was unstructured and natural but at this moment, people know that human behaviour is manipulated, push or even forced by reason. For instance, health conscious is affecting consumers where they will hunt for organic food in order to replace conventional foods. Nevertheless, this is only one of the hypotheses or assumption that we can made, we cannot prove th at this is the accurate explanation for the question Why the demand of purchasing organic food is increased from year to year? Additionally, there are many factors that keep moving people from conventional foods to organic food. Hence, study on the factor that affect consumers willingness in purchasing organic food is an essential issue to further understand consumers mind and support organic.Furthermore, dynamic issues and factors which influence consumers are changeable among individual and purchase decision of organic food will depend on many variables such as consumers attitudes toward environmental protection and healthiness (Gracia and de Magistris, 2007). Human behaviour and customers choice is not impulsive, unconscious, inborn and natural. Conversely, consumers behaviour is always motivated by the environment, enthusiasm, sensation and emotion (Ajzen and Fishbein, 1980). Consumer willingness to pay for organic food may influence by numerous factors. Human beings easily get influenced by the environment and objects surrounding them. We have no capability to freeze their consumption and purchase behaviour. The only way that we can do is to study deeply on what are the main aspects they are focusing and what are the essential factors that manipulate their purchasing. More to the point, people perception and motivation in purchase organic food are vary from country to country. There is different demand in different county with different culture.In order to have a good explanation to answer the entire question and have a bottomless understanding of customers willingness to pay during obtain organic food, we come out with the problem statement What are the main aspects that manipulate consumers willingness to pay for organic food. Policy maker seek consumer oriental analysis in organic sector since the information is crucial for them (Gracia and de Magistris, 2007). The study not only can improve the understanding of consumer behaviour and factors that affe ct customers but it is also a necessary research to help marketers to market the products, help government to better know the needs of citizen, help retailers or wholesalers to do some related activities to encourage consumers in order to choose organic food and help producer to estimate the production in future.1.4 Research ObjectiveThe main purpose of this research is to recognize some of the essential variables that motivate or stimulate citizen in Malaysia in purchasing organic food. Organic market is a potential and profitable market for marketers to have a deep study on it since the demand of organic food is keep increasing nowadays. Besides, organic industry did contribute to Malaysia economy and citizens health, as well as the environment. In my opinion, customers belief, feeling, attitudes, motivation and demand trend would bring a deep impact on food industry and this will bring challenges for marketer to design marketing strategy. The following objectives are built to ach ieve goals of this study.i. To study the determinants that motive consumers willingness to pay for organic food.After identify all the factors, we can better target and server our customers when they doing their purchase. When retailers know all the factors and possess this advantage, they can come out with following step such as education fair, seminar or others kind of exhibition to influence or encourage customers in order to purchase organic food. Moreover, eating organic food can save and secure the earth. Consume organic food not only healthier but also more environmental friendly if compare with conventional foods. By educating others customers about the benefit of consuming organic food, sales of organic food will definitely continue to double up in the future. By the way, this also can help marketers to better market the products and also target potential customers easily. Lastly, this as well will contribute to economic growth and better environment for next generation.ii. To better understanding consumer buying decision and contribute precise data to policy makers.There is a problem that release by NST on November 2008 which is the number of organic supporter is increasing however there are too few farmers to serve the large pool of consumers. As a result, we can overcome the problem of supply and demand after knowing the reason why customers purchase organic food or not. Moreover, most of the researchers showed consumers are willing to pay for high quality food. If this research can prove that there is a significant result between quality and willingness to pay. Related organization can immediately take action in order to strengthen organic production governance.iii. To study the impact on organic food industry due to the issue of health conscious.Recently, health conscious beca