Friday, August 28, 2020
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Wednesday, August 26, 2020
The Section Should Be A Company Overview That Includes The Company Name, The Industry They Are In, And A General Overview Of The Organization
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The Section Should Be A Company Overview That Includes The Company Name, The Industry They Are In, And A General Overview Of The Organization
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Tuesday, July 7, 2020
How Do Dividend Payments Affect Stock Prices - Free Essay Example
Abstract The main goal of this paper is to investigate the impact of dividend payments on common stock prices using a panel of listed firms in Tunis Stock Exchange for a period from 2000 to 2008. Our empirical investigations reveal that Tunisian investors reward firms paying cash dividends. This result is very interesting because it begs the question on the intention of Tunisian managers to pay dividend when investors put a stock price premium on payers as the catering theory suggests. 1. Introduction In efficient and perfect market, Modigliani and Miller (1961) have demonstrated that there is no difference between the value of the firm paying dividends and that of nonpayer. Baker and Wurgler (2004a) argue that the investor demand for dividend-paying stocks depends on either psychological or institutional factors. They argue that managers tend to pay dividends when investors put higher prices on payers, and they omit dividends when payers are at a discount. Baker and Wurgler (2004a) suggest that this catering behavior explains the difference documented between the average market-to-book ratios of payers and non-payers and that managers rationally initiate dividends to exploit an apparent market mispricing. They find that when the rate of dividend initiation increases, the future stock returns of payers are lower than those of non-payers. This result supports the hypothesis that firms initiate dividends when the payers are overvalued. In this paper, we attempt to investigate whethe r cash dividend payments affect positively share prices. The remainder of the paper is organized as follows. Section 2 reviews the literature on dividend payout policy. Section 3 provides a description of the data used in the empirical analysis and presents regression results for the determinants of stock prices. Section 4 concludes. 2. Literature Review Baker and Wurgler (2004b) show that the disappearance of dividends can be explained by lower market valuations of payers during such periods. They find that the propensity to pay increases when a proxy for the stock market dividend premium is positive and decreases when it is negative. These empirical results suggest that the distribution of dividends responds to patterns of market timing. Companies pay dividends in order to raise the stock prices of their shares above their fundamental values. However, we wonder why the demand for shares paying dividends changes over time? Baker et al. (2007) argue that this time-varying can be attributed to changes in income tax rates of shareholders. Baker and Wurgler (2004a) note that the increase in the value of a company paying dividends reflects the risk assessment by investors. Indeed, dividend-paying firms are considered less risky than non-payers ones since this dividend premium disappears in periods of expansion and reappears in recession periods. Thus, investors who prefer cash dividend payments during gloomy period as an indicator of the firms safety and therefore are more willing to pay dearly to buy dividend-paying stocks. Ferris et al. (2006) conclude that the decline of the number of dividend-paying firms in UK can be explained by a shift in catering incentives. Li and Lie (2006) suggest that changes in corporate payout ratios of US firms depend on the market dividend premium. Ferris et al. (2008) find that investors place high value on dividend-paying firms. By contrast, Eije and Megginson (2008) investigate dividend policies in fifteen European countries over the period 1989-2003 and conclude that their findings do not support the catering hypothesis. Denis and Osobov (2008) find that reductions in the percent of dividend-paying stocks occur in countries where the dividend premium is largely positive. Tsuji (2010) finds that Japanese corporate managers do not cater to investors in either their dividend initiation decisions or their continuation decisions. 3. DATA and Methodology To form our main Tunisian sample, we start with all listed firms appearing at any point between 2000 and 2008. We restrict the sample to exclude financial firms[1]. The final sample covers 24 publicly traded Tunisian firms. Data were collected from Tunis Stock Exchange and completed from firms web sites. 3.1 Definition and measurement of variables The evolution of stock prices can be explained by variables specific to the firm such as cash dividend and profitability, by macroeconomic variables such as interest rates and inflation, and a variable which reflects the stock market performance. 3.1.1 Dividends According to the model of Gordon and Shapiro (1956), the current stock price equals the present value of its future dividends. Gordon and Shapiro assume that the dividend is a constant fraction of the profits carried out by the company. The expected receipt of dividend income is an incentive for investing in a given stock, particularly if the yield on the investment exceeds the return offered on other alternative investments like savings accounts. Investors may pay a premium for shares in issue. Tsoukalas and Sil (1999) find a strong correlation between the stock prices and dividends paid by U.K firms. 3.1.2 Profitability An improvement in profitability leads to an increase in stock price because investors become more optimistic about future performance of the firm. Demand increases for the shares that have a high prospect for growth (blue chip shares). Prices of such shares rise much faster than those of companies whose growth prospects are bleak. Vuolteenaho (2002) finds that firm-level stock returns are mainly driven by cash-flow news. By contrast, Kothari et al. (2006) show that stock prices are unrelated to past earnings and depend negatively on concurrent earnings. In this paper, Profitability is defined as earnings before interests and tax reported to total assets. 3.1.3 Inflation The impact of inflation on the stock price is not obvious. If households expect higher prices, they can increase their consumption and therefore reduce their savings. This behavior will lower stock prices. By contrast, if households choose to keep the value of their heritage, they will be more likely to invest in shares in order to hedge against a rise in the general level of prices of goods and services. Indeed, inflation erodes the purchasing power of money and other financial assets that have fixed values. Therefore, if households have a hedging purpose, inflation will have positive effects on share prices. Alagidede and Panagiotidid (2010) provide evidence of a positive long-run relationship between stock prices and inflation in five African countries (Tunisia, Egypt, South Africa, Kenya, and Nigeria) and they conclude that common stocks in these countries represent a hedge against rising consumer price. Geyser and Lowies (2001) examine the relationship between share prices and inflation within a sample of firms listed in Namibian and Johannesburg Stock Exchanges. Their findings reveal a strong positive correlation between inflation and stock prices of Namibian firms. In South Africa, companies belonging to the mining sector cannot be served as an inflation hedge since stock prices of these firms are negatively correlated with the evolution of the Consumer Price Index, whereas stock prices of firms in other sectors (financial services, information technology and food and beverage) are slightly positively correlated with inflation. Bodie (1976) finds that in the U.S during the period from 1953 to 1971 common stocks failed to serve as hedges against either anticipated or unanticipated inflation. The inflation rate is defined as the percentage rate of change in consumer price index. 3.1.4 Interest rate The impact of changes in interest rates on stock prices is mixed. If rates rise, bonds become less expensive which encourages shareholders to arbitrate for bonds by selling shares that they hold and therefore stock prices fall. By contrast, a significant decrease of interest rate makes shares more profitable and persuades investors to buy back equity and pushing up prices. Cifter and Ozun (2008) find that stock prices in Turkey are negatively affected by the interest rate changes. represents the money market annual average rate for Tunisia. 3.1.5 Stock market performance A bull market is characterized by higher valorizations and a bear market is characterized by lower stock prices. In this paper, we used annual return rate of the index TUNINDEX to measure the performance of Tunisian stock market. 3.2 Descriptive statistics Ãâà ¶ Table 1 reports descriptive statistics for the dependant and explanatory variables. We note the higher level of the money market annual average rate that can be explained by the important rising consumer price Tunisia. The mean of the natural logarithm of dividend is negative suggesting that Tunisian firms pay annually on average less than 1 TND as cash dividend. Insert table-1 here Table 2 reports the correlations matrix for explanatory variables. The coefficients of correlation of explanatory variables are generally low. Using a test of Farrar-Glauber (1967), we can accept the hypothesis of the absence of multicollinearity among our independent variables. Insert table-2 here 3.3 Estimation methods The study was conducted on panel data. Using panel data can enhance the quality and quantity of data. It allows us to identify some effects that cannot be detected using time-series analysis. Panel data regression provides three estimators; pooled OLS, fixed effects, and random effects models. A pooled estimator takes as the same across all cross-section units. The fixed effects model assumes as a group specific term. The random effects approach takes as a group specific disturbance. Testing the significance of the group effects To choose between these three approaches we compute a test of homogeneity. The hypothesis of homogeneity of constants across all cross-section units can be formulated as follows: This test of Fisher is computed as follows: Where: : Residues square sum of the individual effects model : Residues square sum of the model Pooled. : Number of firms : Number of explanatory variables (constant not included) If calculated F is lower than tabulated F (p-value 0.05), H0 is rejected and we have to choose between the fixed and the random effects model. Hausmans test for fixed versus random effects If the effect is assumed to be individual, the Hausman specification test is carried out in order to decide whether the fixed or the random effects model should be used. The Hausman test compares the fixed and random effects estimates of coefficients. The tested hypothesis concerns the correlation of the individual effects and the explanatory variables. Under the null hypothesis, the individual effects are random and we then have to choose the estimator of GLS. Under the alternative hypothesis, the individual effects are correlated to the explanatory variables and we then have to choose the model to fixed effects. The test of Hausman compares the matrix of variance-covariance of two estimators: The statistic H is asymptotically distributed as with K degree of freedom, where K is the number of explanatory variables. If calculated H is lower than tabulated (p-value 0.05), H0 is rejected and individual effects are assumed fixed. 3.4 Findings Table 3 reports regression results. We provide Pooled OLS, fixed effects and random effects results. The Hausmans test confirms that the estimator fixed effects is the proper one. Insert table-3 here Cash dividends have a significantly positive impact on stock prices of Tunisian firms. This result indicates that Tunisian investors reward cash dividend-paying firms by adding a positive premium to their shares prices. The profitability has a positive impact on stock prices. Highly profitable firms have higher stock prices. If the firm releases new positive results, investors will be more optimistic about its prospects and expected future cash flows and therefore they will be willing to pay dearly to buy its securities. The variable MARKET that measures the performance of Tunis stock exchange presents the expected sign. This result indicates that stock prices follow the overall trend of the market. Inflation affects negatively and significantly stock prices suggesting that common stocks of Tunisian firms cannot provide a hedge against inflation. The plausible explication for this result is that an increase of the consumer price index reduces the marginal propensity to save. Our result confirms findings in Geske and Roll (1983). 4. Conclusion This paper investigates the impact of cash dividend payments on stock prices of listed non-financial Tunisian firms. Our empirical results reveal that Tunisian investors reward cash dividend-paying stocks. This finding begs the question on the existence of a catering behavior as suggested by Baker and Wurgler (2004a). Future academic studies with larger datasets should investigate whether Tunisian firms behave according to the prediction of the catering theory by comparing the value of payers and non-payers firms.
Tuesday, May 19, 2020
Is Plato A Utopian Thinker - 765 Words
Before the discussion of whether Plato is a Utopian thinker is to be made, for the purposes of this essay, utopia is to be defined as ââ¬Ëan imagined, functional place that possesses near perfect elements and qualitiesââ¬â¢. The discussion among philosophers at the beginning of Book 1 showing Platoââ¬â¢s search for the definition of justice, just soul, and just state is an indicator that he is a Utopian Thinker. Socratesââ¬â¢ response to Thrasymachus, ââ¬Å"Justice is much more valuable than gold, and you must not think we shall slacken our efforts to it out of any idiotic deference to each otherâ⬠(336e), shows how highly Plato considers justice and more importantly its definition. As justice is what he considers the ultimate form of good, the search itself for justice to live a ââ¬Ëjustââ¬â¢ life and his expectation for others to do so too is an argument for which Plato is a Utopian thinker. In exploring what a just city is in order to understand what a just soul is, Plato first acknowledges the fantasy of this utopia and then outlines it. Setting firmly that justice is most important, Plato acknowledges in discussion that the ââ¬Ëjust cityââ¬â¢ to be described is an imagined one and ââ¬Å"can never grow into a reality or see the light of dayâ⬠(473c-d); this fulfills part of the first half of the definition of utopia that the just city is merely an imagined place. The ââ¬Ëjust cityââ¬â¢ bases its values, structure, and function on an ideology of which Plato believes is the ultimate good, thus relating to the secondShow MoreRelatedLiberty And Freedom : Plato s View Of A Perfect Utopian State977 Words à |à 4 Pages Liberty and Freedom: Plato The early philosopher Plato would not approve of todayââ¬â¢s democracy in the United States. He envisions a time and state where all people are controlled by government. The people are to live ââ¬Å"the good lifeâ⬠with luxurious and wealth, but have no political power. Platoââ¬â¢s views of a ââ¬Å"perfect utopian stateâ⬠would require removing authority from the people and allowing the philosopher officials to rule. In the writings of The Republic, Plato discusses his ideal of what he believesRead MoreGuthrie Essay 854 Words à |à 4 Pagesphilosopher, Plato for example, this equation may be further analyzed. The first variable, temperament, is shown by Platoââ¬â¢s personality and interests, such as his concern for politics depicted in Platoââ¬â¢s Republic. The next, experience, explains why Plato has fixations with the ideas he possesses and the final piece to the equation, previous philosophers, is self-explanatory that earlier thinkers, like Socrates, bec ome significant influences. As stated in Guthrieââ¬â¢s The Greek Philosophers, Plato had twoRead MoreComparing The Political Theories Of Two Philosophers1444 Words à |à 6 PagesCatherine Chaput CH 201 15 October 2014 When comparing the political theories of two renowned philosophers such as Plato and Aristotle, one must first focus on the merits of each of their own theories in depth. Plato is often considered as the first writer of political philosophy while Aristotle is considered the first political scientist. Though Aristotle was once a student of Plato, the two differ on the topic of how to best improve society for the benefit of mankind. Thus, both of their theoriesRead MoreMachiavelli Plato Rebuplic Prince Comparison1419 Words à |à 6 PagesHaà ¾im Cihan Demirkà ¶prà ¼là ¼, 20303433 Essay Question: Compare the Characteristics of the true guardians, as described by Plato (Republic, bk VII, pp.158 #8211; 61, 484b #8211; 487e) with the characteristics of the rulers, as described by Machiavelli (The Prince, ch.15, pp. 47 #8211; 49 and ch. 18, pp.54f). What is the most important difference between the two accounts? In your view, which account is better, and why? For centuries, every ruler created their own principles and rules and somehowRead MorePlato And Aristotle s Views On Political Philosophy Essay3649 Words à |à 15 Pageswith ethics, economics and also metaphysics. Political thinkers are the pioneers of ââ¬Å"Modern Politicsâ⬠in the world. The first serious political thinkers emerged in Greece. Plato and Aristotle are two great philosophers of ancient Greece. 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Plato had aspirations of becoming a politician, however these hopes were destroyed when his friend Socrates wasRead MoreComparing Socrates And King : On Civil Disobedience1346 Words à |à 6 PagesComparing Socrates and King: On Civil Disobedience Socrates, amongst the most influential thinkers to emerge from Greek civilization and, perhaps the most noble and wisest Athenian to have ever lived, many centuries before Christ, is noted for not writing anything himself as all that is known about his philosophical thought is through the writings of Xenophon and Plato. By contrast, Martin Luther King Jr. lived in the nineteenth century wherein his main legacy was to secure progress on African American
Wednesday, May 6, 2020
The Legacy Of The American Civil Rights During The...
During the Jeffersonian Era, there was a dramatic role switch between Secretary of State Thomas Jefferson and President Thomas Jefferson. Some historians argue that Jefferson was hypocritical in his administration, while others argue that he was simply being practical and pragmatic. During his tenure as Secretary of State, Jefferson heavily opposed Alexander Hamiltonââ¬â¢s fiscal policy, mainly the funding on war debts. An avid participant of the Democratic-Republican party, Jefferson favored statesââ¬â¢ rights and local control, and worked to combat against the principle of a strong federal government. He also heavily opposed the Jay Treaty because he felt that closer economic ties with Great Britain would only strengthen Hamiltonââ¬â¢s Federalist Party, promote aristocracy and undercut Republicanism. During Jeffersonââ¬â¢s presidency, he disregarded many of his former principles and restricted civil liberties that Americans held. The Embargo Act, which made export goods illegal in the US and was highly unpopular by many Americans. The act went as far as to prohibit the export of all products, by land or by sea, to any select destination. This strategy of isolating the American economy sent many local economies spiraling downward into a depression and raised unemployment rates dramatically. Jefferson was faced with the daunting task of managing a newborn nation, ensuring national safety, and at the same time juggling with the responsibility of not infringing upon American civil liberties.Show MoreRelatedAge of Revolutions Essay1523 Words à |à 7 Pagesoverseas. This was achieved through the democracy and constitutions which still are the most important legacy existing in the modern world. It this outcome that societies were able to create influential pieces of works and change how societies operated on a daily bases with the United States composing the Declaration of Independence in 1776 establishing the cornerstone of this period of paradoxicall y an era of stability and anarchy. This essay aims to support this claim that post-colonialism as an outputRead MoreE Pluribus Unum : Out Of Many1102 Words à |à 5 PagesSugar Act, Townshend Acts, Tea Act, virtual representation, and several other injustices to American freedom; correspondingly, the Declaration of Independence was passed to assure national rights and denounce the kingââ¬â¢s violation of those rights, thereby preserving the concept of E Pluribus Unum by maintaining continuity in the emergence of one common ideal: liberty. For instance, amidst the turmoil of the American Revolution, several ideals arose, such as the desire for a new republic instead of an absoluteRead MoreDefining The American Poet Through Leaves Of Grass : Walt Whitman3117 Words à |à 13 Pagesnathan Reed Andrew Walker AML3041-0001 02 August 2015 Defining the American Poet through Leaves of Grass: Walt Whitman Walt Whitman s Leaves of Grass define the aspects of democratic poetry. Early reviews of Leaves of Grass claim that Whitman is the original American poet. This is due to how Whitman practices the democratic view of human equality. For example, if we take a look at a review published in the New York Daily Times that was written in 1856, less than a year after leaves of grass wasRead MoreA SELECTION OF PAST AP U.S. FREE RESPONSE QUESTIONS:3529 Words à |à 15 PagesPart 1: Colonial Period to Civil War Colonial Times 1607 -1775 1. From 1600 -1763, several European nations vied for control of the North American continent. Why did England win the struggle? (73) 2. In the seventeenth century, New England Puritans tried to create a model society. What were their aspirations, and to what extent were those aspirations fulfilled during the seventeenth century? (83) 3. In the two decades before the outbreak of the American Revolutionary War, there wasRead MoreAmerican Revolution and Study Guide Essay example5377 Words à |à 22 PagesTo what extent had the Massachusetts Bay colonists endorsed the idea of the ââ¬Å"separation of church and state?â⬠(10pts) 4. To what extent was the New England Confederation a first step toward colonial unity? (10 pts) Chapter 4 Study Guide ââ¬Å"American Life, 1607-1692â⬠1. Compare and contrast the colonies of New England and the South based on the following: a. Economies b. Geography climate c. Mortality rate d. Sex ratios e. Family relationships/profiles (30pts) 2. Define indentured servitudeRead MoreEssay about History: World War I and Bold Experiments7600 Words à |à 31 PagesBold Experiments in an Era ofà Industrialization,à 1877ââ¬â1929 This part covers the following chapters in Henretta et al., Americaââ¬â¢s History, Seventh Edition: Chapterà 17à The Busy Hive: Industrial America at Work, 1877ââ¬â1911 Chapter 18 The Victorians Meet the Modern, 1880ââ¬â1917 Chapter 19 ââ¬Å"Civilizationââ¬â¢s Infernoâ⬠: The Rise and Reform of Industrial Cities, 1880ââ¬Å ââ¬â1917 Chapter 20 Whose Government? Politics, Populists, and Progressives, 1880ââ¬Å ââ¬â1917 Chapter 21 An Emerging World Power, 1877ââ¬â1918 Chapter 22 WrestlingRead MoreThe Generation Of The United States4076 Words à |à 17 Pagessense of national unity, and nothing to bring them together except for the common wish to separate from Britain. 4) Combining the opposite perspectives that Ellis writes about on the founding of our country, the central paradox of the revolutionary era is created. This paradox is that despite the massive advantages America had provided by ââ¬Å"geographic isolationâ⬠and ââ¬Å"bountiful natural resources,â⬠the points used to justify the separation from England are the same reasons that overwhelmed the governmentRead MoreFounding Brothers9626 Words à |à 39 PagesPreface: The Generation Some people thought that American independence was Manifest Destiny, Tom Paine, for example, claimed that it was simply a matter of common sense that an island could not rule a continent. But for the most part, triumph of the American revolution was improbable, and therefore it is a remarkable event in history. No one expected that Britain, the strongest country in the world would be defeated by the colonies, and that Americas Republic, a government uncommon in
Principles of Marketing Consumer Decision
Question: Discuss about thePrinciples of Marketingfor Consumer Decision. Answer: Introduction Based on this quote Marketing is too important to be left only to the marketing department... David Packard, the co-founder of Hewlett-Packard, the importance of marketing department is asserted to focus on the internal and external environments of the market and to include different players in the market who are affected by marketing decisions, and strategies as the company make them. Marketing is the companys way of communicating with consumers, suppliers, other stakeholders and third parties and its communication benefits the company by messages well delivered and increases the awareness of the products (Fejza and Asllani, 2013, p.326). Marketing decisions, plans and strategies involve all the departments in the sense that the decision to increase the value of products and their benefits to the customers require the involvement of the production or manufacturing sector to create quality and quantity. This is meant to ensure that the consumer needs, preferences in quality and quantity are met, thus marketing decisions and strategies are inclusive and participatory of all other departments so as to deliver on the companys marketing goals (Fejza and Asllani, 2013, p.326). The focus of this paper is to highlight the importance of marketing to the company and other stakeholders and how this applies to different organizations in their marketing decisions. The relationship between the organization and marketing decision is presented in the growth capacity of the company since, marketing functions of communication and delivery to the consumers involve the creation of relationships which is through long-term cultivation of trust between the consumer and the organization leading to consumer satisfaction, increase in profits and creation of new markets. The marketing strategies of place, price and promotion are key in the distribution plans for the organization and these spans across the manufacturing and supply chain departments to ensure that the companys marketing strategies are met. The proper coordination of different departments and stakeholders lead to achieving the organization's goals, objectives and the ability to remain competitive, profitable and stable in the long run. Marketing decisions affect the company, stakeholders, suppliers, customers among others who form part of the internal and external environment of the company (K im and Richarme, 2010, p. 3). Stockholders, Distributors and Society Marketing decisions affect the different players in the organization, and the stockholder is the financial investor in the business whereby marketing decisions leading to consumer satisfaction are beneficial with relation to the returns to the shareholder. The business is responsible for the revenue and expenditure, and thus the stockholders equity accounting and thus the marketing decisions affect the stockholders equity in relation to the profits and losses of the business. Marketing strategies which increase consumer value lead to increased profitability. Distributors are related to the supply chain and their responsibility in marketing is an increase in the value of products to the consumer through availability, and this affects the consumer and the society at large through awareness and product availability. The distributors are in charge of the supply chain with regards to raw materials and the finished products whereby there should be timely so as to add value to consumers who are the end users. (Lian, 2013, p. 35). Consumer Perspective The consumer is the primary target in marketing decisions and strategies. The consumer is the demands quality, quantity through the prices available in the market. The consumer behavior is important in marketing as it determines the tastes and preferences, the demands among other consumer related processes. The business utilizes consumer information in generating plans and strategies for marketing; the information is sued in the production decisions based on information on tastes and preferences. The distribution decisions are based on the consumer information which is sued in consumer segmentation and targeting, and thus the business uses the consumer perspective in marketing decisions. The consumer is responsible for feedback, consumer retention, and consumer demand, customization of goods and services to meet the needs of the consumer. The consumer relies on deliver of services and products by the organization which is a value creating relationship and the essence of marketing fro m the business perspective (Lian, 2013, p. 35). Business Perspective Business perspective is macro in nature as it focuses on the external environment and given the dynamic nature of global production, competition and the need for quality from the consumer, the business perspective has to account for the above before making marketing decisions. For the business marketing is not about awareness by the nature of relationship they develop with the consumer through value addition and communication to build sustainable relationships which are profitable in the long run (Lian, 2013, p. 35; Tsang-Sing Geng, 2002, p. 408) Illustration of Toyota Company Marketing Strategies Marketing decisions and strategies are based on the research of the internal and external environment of the business to determine the consumer behavior and patterns in purchasing. The information used to determine the purchasing decisions of Toyota Company which is an international manufacturer of all types of vehicles is important in analyzing the different needs and preferences of their consumers given the global market place and competition form companies such as Isuzu among others. The study of environmental factors in determining the purchasing decisions of consumers focuses on the external environment of business. External conditions which determine purchasing power and change in motor vehicle consumption include the economic development of regions. Developed countries record highest purchases in vehicles with the population patterns presenting the increase in disposable income which is utilized by the consumer in the purchase of luxury goods among others. The increase in glob alization and competitive market place has presented economies with opportunities for development, and thus the consumption of motor vehicles for all uses such as personal or family or commercial use increases the rate of economic development (Borah, 2013, p. 19). The environmental factors of purchasing power involve the use and changes in technology. Technology has been utilized to cause revolutions and innovations which are applicable in the dynamic marketplace. For instance, the development of fuel efficient and environmentally sensitive vehicles with regards to the global environmental agenda is a move by many vehicle manufacturers whose goals and strategies in marketing are to attract global purchases and customer retention. The global marketplace that Toyota ventures in is subject to political and regulatory requirements which can hinder consumer purchasing. For instance, the implication of taxation through customs in the import and export activities of some countries limits the affordability of Toyota products. The price is an important determinant of consumer purchasing decision, and thus tax additions and regulations are a hindrance to purchasing. The purchasing decisions are affected by the development of competition; the global mark et offers consumers with choices on the vehicles given the competition from other manufacturers such as Isuzu, Mercedes-Benz, and Honda among others. The Competition influences purchasing power through the availability of substitutes and choices in the market given different prices, the quality and product customization which meets the consumer needs and preferences. The investment in Toyota to meet consumer needs and preferences through product diversity which covers products such as cars, trucks, minivans, SUVs covers the product development and customization to meet individual needs of consumers (Alamgir, 2010, p. 146). The analysis of the internal systems highlights the organization determines the structure and systems laid in place in making the companys products superior in the market. The company itself has been established as an innovative leader and through proper management established a global brand. The formulation of objectives and policies has been based on the long-term success and sustainability of the company given the increase in competition. The presence of foundations and principles for Toyota is an influence to purchasing decisions on consumers through brands and assured quality. The profitability and sustainability objective by the company enables the understanding of markets and factors such price, quality and how they affect the company. The proper resource allocation strategy is important for the analysis of inputs and outputs and the overall effects it has on the company, and other stakeholders (Tsang-Sing Geng, 2002, p. 408). Value Addition Services to Customers Illustrations from Groupon.my Marketing activities are based on communication between the seller and the buyer and the various intermediaries involved in the transaction. Communication is a method of developing relationships which are key to generating value base services and products for the consumer. Partnering with the consumer through value addition is important in consumer preference and retention mechanisms. Groupon.my is fast growing information and technology related company whose focus is the provision of information to their customers on issues such as entertainment, food, health-related information among others. The location for this app is Malaysia which presents a potential market for both local and international consumers such as tourists in the provision of information. The value addition strategy is presented by the customer loyalty and retention techniques which have being captured through the offering of a wide range of services and information and thus wide clientele. Customer retention is base d on the feedback which presents the services of Groupon.my as unbeatable offers and discounted prices for their customers (Lian, 2013, p. 19). The activities of Groupon.my have ventured in the development of systems and processes which ensure proper customer service is delivered. Customer service team is responsible for customer queries and complaints and through the active participation of the team, there is assured response. The reliability of the customer service team is value addition proposition for the company given the nature of activities marketed. The preference for Groupon.my has increased in popularity through various offers for feedback and recommendation for their consumers thus increase in consumers. The utilization of e-commerce and technology has led to profitability for the company and increased its customers through the flow of information and quality of services which is value additional to the consumer (Lian, 2013, p. 19). Marketing Environment The marketing environment is an evaluation of the internal structures of the company and the external factors that influence the marketing decisions and strategies. The micro and macro environment of the business are important as they determine the success of marketing activities and plans. The focus is based on Coca-Cola which is an international company in the beverage industry. The operations of this company are international in the sense that, their production and marketing decisions are meant to attract global markets. The external environment is global given the different geographical locations and the differences in their consumer tastes and preferences. The macro environment covers factors such as the technological environment, which is current faced with innovations and inventions and are key in the change of processes and products. Technology aids in the promotional activities through increases the flow of information across audiences in different geographical locations. Fo r instance, the Coca-Cola Company has utilized the technological advancement in their global promotional awareness and product development abilities to increase their turnover in productivity and reach their customers globally (Kim and Richarme, 2010, p. 3). On micro analysis of the marketing environment, we focus on the ability to remain competitive for a company such as Coca-Cola. Given the international brand and the industry it has ventured in, Coca Cola faces competition from Pepsi.com. Competition is experienced through the product quality and price, whereby Coca-Cola has managed to maintain global competitive advantage and profitability in the long run given the quality nature of their products and product development ability through diversified products which meet the consumer needs and preferences of diet and health. The establishment of Coca-Cola as a beverage brand has ensured customer loyalty and retention across most markets in the world and despite the competition it faces, the company has remained profitable (Lian, 2013, p. 19). The evaluation of the demographics is important in establishing the marketing choices in terms of products, prices among other marketing related plans. Demographic evaluation of the population determines the target population for marketing their goods and services. Demographics present a clear picture of the income patterns of the consumers and thus their purchasing power. It also presents details on the age and gender differences of the population, and these demographic features are important in target and segmentation choices of the company. For instance, the Coca-Cola Company has a varied range of products which appeal to different age groups and health and diet groups of the population. The offering of different prices for different products presents the difference in consumer incomes and affordability for their global customers ("3.1 Factors That Influence Consumers Buying Behavior | Principles of Marketing," n.d.). The political environment is important to the determination of stability of economic systems and the safety of performing business related activities. The political class is responsible for the formulation of the peaceful business environment. The nature of political circle determines investment decisions of many companies. With reference to Coca-Cola Company and the international nature of its business activities, the volatile nature of certain geographical areas is a hindrance to business activities and thus affects production and marketing activities of the company (Kim and Richarme, 2010, p. 3). The company itself is a factor to consider in marketing decision making. The company which is an organization based on goals and objectives are responsible for marketing decisions and plans. Marketing requires the involvement of the management and resource allocation which in turn produces results for the marketing efforts by the company. Marketing requires reliability with regards to customer service and delivery systems, resource allocation for promotional activities and production of quality products. The Coca-Cola Company is reputable for marketing efforts which are consumer oriented and value adding to the consumers ("3.1 Factors That Influence Consumers Buying Behavior | Principles of Marketing," n.d.). Conclusion The marketing decisions and strategies require the involvement of the different departments of the company so as to ensure the quality of the products which is the consumer needs. Consumer behavior in marketing is important for determining purchasing patterns and other sustainable changes in the consumption behavior which in turn lead to a change in marketing strategies. The micro and macro environment of the business have effects on the value addition capacities of the business. The involvement of different stakeholders such as the suppliers in value addition and consumer satisfaction is an important consideration for marketers in their strategies and decisions. References Alamgir, Mohammed, Tasnuba Nassir, Mohammad Shamsuddoha, and Alexandru Nedelea. "Influence of Brand Name on Consumer Decision Making Process-An Empirical Study on Car Buyers." The Annals of The "?tefan cel Mare" University of Suceava. Fascicle of The Faculty of Economics and Public Administration 10, no. 2 (December 2010), 142-154. https://seap.usv.ro/annals/ojs/index.php/annals/article/viewFile/295/302. Borah, Ranjan. "Factors Influencing Purchasing Decisions Towards Toyota Cars in Bangkapi District." PhD diss., Stamford International University , 2013. Fejza, Ejup, and Alban Asllani. "The Importance of Marketing in Helping Companies with their Growth Strategies: The Case of Food Industry in Kosovo." European Scientific Journal 9, no. 16 (June 2013), 326-336. https://eujournal.org/index.php/esj/article/view/1152/1168. Kim, Jin-Woo, and Michael Richarme. "Linking Marketing Activities to Shareholder Value: Philosophical and Methodological Issues." Journal of Management and Marketing Research, 2010, 1-10. https://www.aabri.com/manuscripts/09393.pdf. Lian, LilianY. "Defining Marketing and the Marketing Process." In Principles of Marketing, 3rded., 1-89. Malaysia: Wawasan Open University, 2013. Tsang-Sing Chan and Geng Cui (2002) ,"Consumer Beliefs and Attitudes Toward Marketing: an Emerging Market Perspective", in AP - Asia Pacific Advances in Consumer Research Volume 5, eds. Ramizwick and Tu Ping, Valdosta, GA : Association for Consumer Research, Pages: 406-412. "Toyota Global Site | Company." Toyota Motor Corporation Global Website. Accessed February13,2017. https://www.toyota-global.com/company/. "3.1 Factors That Influence Consumers Buying Behavior | Principles of Marketing." Open Textbooks | University of Minnesota Libraries University of Minnesota Libraries. Accessed February13,2017. https://open.lib.umn.edu/principlesmarketing/chapter/3-1-factors-that-influence-consumers-buying-behavior/. "How Groupon Malaysia Works?" All Klang Valley - KL Deals | Groupon. Accessed February13,2017. https://www.groupon.my/how-does-groupon-work.
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