NEW ORDER RETAIL PURCHASING (SM9)

Introduction

The supply chain management process in the retail market includes the merchandise planning and the movement from preparing the purchase order to its availability to the customers. The supply chain management is an end to end integrated process where the information plays an important role throughout the each step of the process so that timely action can be taken if anything goes out of place. There are various components of the chain and a critical analysis of the implication in this management will be discussed in this assignment. The various supplies and sourcing of the requirements in the organisations will be elaborately evaluated along with the financial implications of the supply and purchasing decisions. The various concepts involved in the selection of the marketing organisation with its skilled knowledge to negotiate the procurement procedures will be explained thoroughly with the help of the concepts of the theoretical models within the retail sectors in the UK.

Discussion

Stadtler (2015, p.28) stated that the purchasing is the basic need of an individual and in the supply and chain management business processes involve from various raw materials to complete waste management. In the new order, purchasing product is focused on various efforts of creating different innovative processes and products. The supply chain management is a researched track that helps to organize capabilities and abilities of different suppliers and customers. The quality of performance determines the effectiveness of the purchasing activities and operations of the suppliers. The managers of supply and purchase department play a more strategic role towards its operational activities in an organisation. Fernie and Sparks (2014, p. 80) commented that the increased amount of specialization in outsourcing have taken a closer look towards the capabilities of the different resources. The supply chain management helps in the flow of various services and goods that helps in process or movement of procurement in the storage of raw materials in various inventory processes and of various finished goods from the consumption point of view.

Hingley et al. (2015, p.84) mentioned that the main components of the supply management system are the plan which has the strategy of the program that includes various development metrics to be monitored. The suppliers provide various services and goods that are necessary to run the business and the various components of execution that requires various packages to test and produce products and services. There are various delivery systems that receive orders for customers and networks of the warehouses that result in the receiving and invoicing payments from the concerned customers. Kozlenkova et al. (2015, p.609) mentioned that, the system of returning should also be kept in mind that supports and processes problems of the product from the customers. The organisation should focus on various companies and its partners that require meeting the needs of their customers. In order to maximize the supplied content and add supplemented values to the finished product is the duty of the supply chain. There is increased the need for production in the supply and business chain of opportunities for the members. An essential component is a communication that requires essential efficiency for the production operation that enables members to demand operational information. Cai et al. (2013, p.765) states that the new products or services are helped by efficient communication in the progress level of the business of the organisation. The integration component is considered as the key to reducing costs of inventory in order to get a successful progress in the chain management. It is essential for the organisation to develop integrated information networks so that the members can access the data securely. Open standards like the internet protocol are effective to members in spite of them having various internet networks. Collaboration between the members is essential as it strengthens the supply chain and improves teamwork between members and their businesses. Various leading companies training and development program helps to improve supply markets along with the product knowledge. An addition to the joint development program with partners helps by contributing to the knowledge of materials and market partners.   

  According to the Flint, Lusch, and Vargo (2014, p.23), the sourcing and supply requirements refer to the procurement practices that aim at finding, engaging and even evaluating the goods and services of the retailer organisation. Outsourcing is the process of business function with someone else. It helps to find the location with the lowest cost and the technology also helps in the role of delivering collaboration and managing risks. Smart sourcing is also a mean for responsible sourcing. The source and the supply chain have helped in the change in some retailers to look for different places to manufacture goods. Even the new concept of rising global protectionism sentiment in prompting some of the international sources all together to move more in production with some home countries at least in a closer way.

As per Holmstrőm et al. (2016, p.37), the implication on finance on the supply chain is a set of processes and tools to supply a productive flow in the organisation that minimizes expense as well as maximizing the profit level. The main objective will be to take the advantage of the principles that have proven the effectiveness for long decades. The flow in finance is slowly expanded as the purchasing and supply management analyses and recognizes various interrelated events and tools that have a vivid impact on the payment as well as pricing inventory terms. The behaviors along with the customers need are taken into account of the organisation. Vlachos (2014, p.15) mentioned that the various sale trends influenced by various changes in departmental as well as unexpected resignations can also be taken into consideration in the management of supply chains. The finance helps in optimizing information and physical product flow that is short minded. The finance cannot be excluded from the supply chain management system, it can lead to potential cost reductions and the length is categorized as cash to cash cycle. The invested capital is finance related and it is transformed into goods that are sold with much more cash.  Cost can be reduced within the designed chain just by keeping few things in mind. The stock levels of the costs are inventory to finance that also consists of the credit risks along with sale and insurance matters. The integrated finance services will create a financial product that is realizing the opportunities for reduction in costs of the unused.

  Hoejmose et al. (2013, p.620) mentioned that there are various concepts involved in the selection of purchasing goods in the retail organisation. Market demand plays an important role in the retail organisation will buy only those goods that are demanded in an allocated place. The more there wills the demand for a particular commodity the more the retail organisation will work on it. The market demand is what the people or the consumer wants from that particular organisation that is a retail shop.

Culture also plays a vital role in the management of the retail organisation. There is a huge diversity in culture in big countries like the UK. The demand is directly proportional to the market culture environment. The more there is diversity in culture the more will be the production of the retail organisation. Ultimately, the more is the demand the more wills the production quantity. The diversity helps the organisation in producing more goods that are useful to the consumers and also raises the level of profit. The economic background plays an important role at least to many people in a country. Everyone doesn’t have the same economic class to purchase a good so it is the responsibility or rather the benefit of the organisation to think of the various needs of people of different classes. As it helps their growth in business it also helps in the people with different backgrounds to purchase goods of various ranges that are available both for the high class and people less fortunate than them. The basic duty of the retail organisation is to think of everyone in its country.

 Venkatesh et al. (2015, p.167) said that the negotiations help us to deal with critical procurement procedures. The concept helps in providing the vivid descriptions along with characteristics of various business tools and factors of success that are useful in professional decision making and its negotiations. The flexible procedures for procurement help in contracting and consulting with the supplier's authority that helps in the choice for negotiating with the contract terms. The contracts advertised falls under the negotiated procedures within the organisation of retail management in the UK. Ramanathan, (2014, p.220) mentioned that the negotiated procedure in procurement helps in some specified law cases. The key characteristics in the procurement take place in the contractual documents that help in the classified preceding of the choices that must state and determine in the tender documents. The failure of this procurement negotiations helps to be obliged in the tender provisions of the documents. There are no open or restricted procedures that help to the provisions of the tender documents. The contracting authority can negotiate with the candidates on the basis of tenders or documents. These can be allowed only in open procedures but not in the closed.

According to Monczka et al. (2015, p.70) the Retailer’s model determines the quantity of the uncertain demands from the manufacturer. The products demanded by the customers are uncertain and it is assumed that the probability of the density function is known. The manufacturer and the retailer are coordinated by a backup contract. The demands once realized the retailers could return as well as unsold to the manufacturers. It is their decision to formulate the unconstrained problem in optimization.

 

As per Christopher (2016, p.60) the Supplier’s model formulates including the revenue sales, costs of components as well as penalty cost for the defective components.

 As per Sanders, (2014, p.31) the media attention has been regarded as the ethical sourcing that is regarded as the supply chain working positions. The invested time in mapped resources finds out the products are coming from. It is important for them to prioritize the map of supply chain firstly. There are various ways of requesting the suppliers to increase the performance invisibility and to provide a program on its basis. Crandall, Crandall, and Chen, (2014, p.18) mentioned that there should always be a risk in assessing the priority of the supplier in the audit that helps in the factors like the suppliers with its location, type of product with the investment value and the chain of supply.  It is essential to set the standards to engage and develop the codes of conduct based on their behaviors that enable the suppliers to have a sheer understanding of the goal at the end. Mena, Humphries and Choi, (2013, p. 77) mentioned that the audit assesses the limitations that are acknowledged to the poor auditing and understanding standards along with various attempts by corrupted and defraud auditors. It is essential to employ the effective skills and methods in the development program that can be engaging suppliers of the change. Suppliers should be attended to improve and implement systems and process that builds and supports the better outcomes for both of them. There is an impact on suppliers to manage and access the faster and the lower impact on the supplier's ability to maintain several standards on ethical sourcing. It is easy to make and avoid doing jobs that can become harder and identify the opportunities to communicate and plan the issues of supply more effectively. 

Conclusion

The efficient purchase and supply chain management is crucial for the success of the fabrication in the retail management in the UK. The supply chain management is a widely researched and applied in domains of retail management. The remains are of several attempts by the practitioner and a researcher that has competition in all types of industries that has embraced an approach of manager that has sustainable growth and profits while achieving it. The focus is primarily on the supply chain management process that delivers services with the right amount of place, time and quantity with maximum benefits. The research has explanatory manufacturing retail industries of U.K that is based on theories of the supply chain management and various ethical sourcing in purchasing and supply.

MARKETING PRINCIPLES (SM8)

Introduction

Marketing is an essential part of business that needs to be done suitably for ensuring profitable results in business. It is important that business ventures need to adopt different principles for marketing that are unique. This will help in gaining competitive advantages in both international as well as local market. Every business enterprise had to understand their position in market before undertaking any ethics for businesses. Competition has to be suitably maintained in order to for attaining success in business. For convincing customers and creating brand awareness among them, companies need to develop new processes of marketing. This will help in maintaining their position in market. In this study, organisations like Vodafone UK and Starbucks are being taken as an example for understanding processes of marketing. In what way, marketing mix is being conducted for gaining advantages in competition are also clearly depicted in following study.

Task 1

1.1 Explaining several elements of marketing process

In the opinion of Sheth and Sisodia (2015, p.45), the different tactics are applied for marketing the product by the company. Starbuck is a famous Coffee maker whose business factor is analysed as follows:

The first factor is to analyse the situation of market. Here, situation refers to the perception of customer toward the product. The Starbuck has analysed that the process of making product should be present in front of public, so their belief about the transparency of policy of the company become stronger. Therefore they advertised about their manufacturing process on their website in a brief manner.

As considered by Frederiksen et al. (2013, p.17), the loyalty of company should be known to people and the service they provide should be customer oriented. The customer should not get the feeling that company is trying to sell the product for their own profit. Thus, the psychology of customer should be understood by the sales executive. There is one point where a customer is compelled to think about purchasing the product.

Some element is mentioned in the given context where a sales person can pressurize customer by telling the deadline of the low price of a product and also mentioning the comfort of the person has relation with customer. As considered by Armstrong et al. (2014, p.67), personal needs of customer play an important role for the sales person when he is selling the product, but he has to inter relate the benefit of product with customer need.

In the opinion of Nowak et al. (2015, p.2406), market research analysis is another important element for to give the feedback of customer’s needs. Once the analysis of market has taken place, the next thing comes in the picture is approach toward the undesired customer. Nowadays, sales world has expanded its wing to everywhere that even people are aware of the traditional way of selling. So, rather hard core selling of the product, an executive should make good relationship with the customer for a long run.

1.2 Evaluating benefits and costs of marketing orientation for a venture

In the opinion of Walker (2014, p.17), marketing orientation comprises of those strategies which would lead to a good relationship with a customer and increase their profitability margin. It becomes important for the organization to evaluate the cost and benefit of a product. These two terms are interrelated to each other. As considered by Cooke and Dayton (2015, p.132), the customer always wants the best quality of the product so that his expenditure on a product will be useful. In the mentioned context, the hard core selling for gaining the profit and selling the car as per the comfort of a customer are explained nicely. The theory is applicable for the organisation also.

In the opinion of Challagalla et al. (2014, p.15), there is two type of company who sell the product for gaining the profit and selling the product for customer satisfaction. Evaluation of cost includes cost of designing the product, product quality, transportation charges and service tax etc. The customer will appreciate company’s product if he is satisfied with its usage. Sometime company increase the quality of product to reach the customer desire but it has to increase the cost as well. Above context also explain that if the sales executive is selling for gaining profit only and customer understand seller perception then information about this strategy of a company will be distributed by the customer to his relative and friend lead to the bad name of an organisation.   

Task 2

2.1 Macro as well as micro environment factors affecting decisions of marketing

Macro elements affecting decision of marketing: Starbuck, which has started its journey from 1971, become able to establish itself in the market of UK. The dynamic nature of market with changing time has to be analysed with the help of market analyst. Starbuck has started a program of getting reward points earn from expenditure by a customer and from that points, he/she will get free drink and food. This methodology will attract that customer who spends more money or they are very rich. The market is flooded with people who earn average and spend limited. These people become a macro factor that can influence Starbuck’s business. Technology becomes one important element for the growth of an organisation. Starbuck already has taken the help of social network i.e. Facebook, for declaring about the points and reward. Therefore, by a social network, a company has increased the consumption of its product.

In the opinion of Hastings and Domegan (2013, p.14), the geographical element of some place is an important reason for the business of an organisation. The organisation should aware of the fact whether its product has been used in the rural area also. That would enhance the business with new experience of what people of a rural area like in the product.

The age of people also affects the business of the organisation because of their choices in the product. An old person might not like much the hot coffee, because of health issue. It is a responsibility of organisation to plan their services as per the age of people. 

The employee, investor, and shareholder of an organisation are the micro element which influences the business of a company. An employee of a company sells the product, deal with customer and handle the management team, so they influence the economic condition of the organisation. The company has to hire a skilled worker, in case company is dealing with high technical business, has to give high salary to their employee. 

The competitor company increases the demand of customer about the product with its quality and benefit. Thus, the satisfaction level of customer increases which put the organisation in pressure. 

2.2 Proposing segmentation processes for products in markets

In the opinion of McNeil et al. (2015, p.93), the segmentation has a different form. Usually, a market can be segmented socio economically, demographically, geographically and psycho graphically. The best example is segmentation of Starbuck who analysed the market in a proper way. The socio-economic segmentation is a division of market-based on the financial status of people and their income. The business of Starbuck will grow if he sells his product without confining itself, prosperous people. It should put some small shop around the city so that average earning people can take their services. In the opinion of Dubuisson (2013, p.685), demographic segmentation is dividing the market based on gender, community. Therefore, when Starbuck is expanding its business outside of UK then it has to understand the taste of people of that particular community toward the product.

The psycho graphically division of market is most important and complex element for an organisation to implement. The company understands or analyse the thinking of people toward a product, what kind of attitude they are possessing for the services of a company.

2.3 Choosing target strategy for particular product or service

In order to accomplish the target, an organisation is making some strategies for attracting its customer and increases the consumption of its good and profitability. It has already discussed earlier about the segmentation of Starbucks. This itself is a form of strategy. Starbuck should start the Happy Hour scheme for its consumer and it should be like that if some customer is taking coffee in between 4 pm to 6 pm then he will get the 20 to 25 percent discount. This 20 to 25 discount will vary with the last three-month relationship of a customer with Starbuck.

This has already mentioned that segmenting the market is a form of strategy to attract the customer. Starbuck should start their business all over the world without confining itself in the barrier of border and community. Many Asian countries have good market for coffee, so the company should invest in this market for expanding the business. The company through website and social network inform its consumer and other people about the new changes take place in their product.

2.4 Demonstrating in what way, behavior of purchaser impacts on marketing activities

In the opinion of Kim et al. (2014, p.42), there are different kind of behavior a customer possesses toward the organisation and its product. Consumer behavior affects the strategy of the company and the quality of a product. As considered by Migliori et al. (2014, p.91), consumer behavior varies as per his lifestyle, geography and past experience with an organisation. The product consumption increases, for example, the rate of Starbuck’s coffee decrease, the people who urged to drink coffee in the past but not able to buy because of its high cost, would suddenly go to consume the Starbuck product. Their behavior would change suddenly because of a rate of coffee, motivate more people to attach with an organisation and enhance their business.  Past experience of a customer has the taste of the services of organisation and updating themselves with information of a company. These old customer sometime do investment with an organisation and become the shareholder of a company.

The family of consumer and his background influences the business of a company. A person would not entertain the product if he has no knowledge about the product. Suppose Starbucks has a business of coffee but it is unique from coffee normally made in a small shop, so if a person is lacking in knowledge then he will compare Starbuck coffee with street coffee and his approach will also be like that.

2.5 Proposing new positioning for a particular product

According to Johnston and Marshall (2016, p.669), Positioning of products need to be done in such a way that it will help in gaining extra benefits in business. Starbucks has launched new services of Happy Hours, where people will get huge amount of discount if they visit outlets of Starbucks at a particular time. Positioning of such services needs to be done suitably so that people get attracted and come to enjoy those services. Target market has been set for this service and it is positioned in every outlet of Starbucks in city. As a result, when people will get to know about such service, they will be eager to visit outlets of this company. Anderson et al.  (2014, p.210) commented that target market needs to access new product or service that are initiated by any venture. Based on this, products or services are required to be placed in market.

Young generation has been targeted for this service that is why; positioning of such service is being done right in that time when youth can access it. This will help in attaining extra advantages in business and competitive advantages can be gained easily by this entity. Positioning strategy is completely based upon demand and requirements of customers. This company has considered these criteria so that satisfaction can be provided to people in large amount. This will help in maximising profits of this company and build a good reputation in front of customers. Moreover, proper positioning will lead to gain loyalty of users towards this brand (Starbucks Coffee Company, 2017).

Task 3

3.1 Explaining in what way products are developed for sustaining advantages of competition

Being a marketing manager of HSBC, it is significant that products of bank need to be developed in such a way, that it would help in sustaining competition in market. Different innovative and creative services, as well as wide range of products, are required to be provided to people in order to gain their attention. Financial products of HSBC includes home loans, insurance, net banking and ATM facilities. These products have to be developed in such a way that people finds interest in using these services. Munar et al.  (2014, p.386) mentioned that product design has to be done in an attractive way for attracting customers towards a particular venture. In products of HSBC, unlimited longevity is provided so that attention of people can be sought successfully.

Moreover, needs of customers, their demands and expectations are required to be understood so that extra advantages can be gained in businesses. This bank can provide several types of account facilities for people that would help to indulge more customers under their services. It is important for every enterprise to improve their products quality in accurate way so that competition can be maintained (Walker, 2014, p.6). This bank can provide variety of loans for house construction, buying lands and apartments. In addition to this, it can provide business loans for different business houses at easy installment scheme. As a result, it leads to provide people with every modern banking facility that would ease work process of people. In this way, if up gradation in services is done, competition can be easily sustained in business sectors (Hsbc.co.uk, 2017).

3.2 Describing in what way, arrangement of distribution is done for providing convenience to customers

As per Kaski et al.  (2017, p.700), services and products is required to be distributed evenly so that every person can be linked with those services. This bank needs to distribute their products in almost every branch of this bank. Moreover, new branches can be opened up that will assist people to use these services properly. Moreover, net banking, as well as net banking facilities, can be updated for placing such services for people. This bank can concentrate large numbers of commercial people, who will deal with this bank in large amounts. Therefore, profit, as well as competition, can be properly sustained in market.

Financial institution is a place that provides services by maintaining huge security and privacy (Kuvaas et al.  2015, p.11440). This bank needs to develop their security system and bring latest technology for securing accounts of people. In this way, if service distribution is done, it will lead to bring more satisfaction within customers. This will help in resolving any conflict in mind of people regarding any service. Moreover, accessibility of such services needs to be done at every point of city. If distribution is done over wider area, massive numbers of customers can be brought into services of this venture. Facilities need to be provided for each customer individually so that full usages of such service are done thereby, maintaining huge competition in market.

Figure 1: Marketing Mix

(Source: Kaski et al.  2017, p.700)

3.3 Explaining process of setting prices to show objectives of ventures

Toomey et al.  (2017, p.270) opined that for holding strong position in market, proper pricing strategy needs to be undertaken so that advantage can be gained. HSBC bank holds huge share in market because it has maintained reasonable pricing structure of their services and products in market. It has to deal with every obstacle of market tactfully and sustain inflation rate of market properly. While maintaining all these hurdles, this company has to know in what way, price need to be set so that profit, as well as competition, can be easily maintained. Huge control in market is set by this entity and it follows every guideline of UK financial sector properly.

It has kept reasonable rate of interest as well as provides different type of loans for people including home loans, business loans and personal loans. In addition to this, it has provided huge rate of interest for people, who are holder of life insurance of HSBC. Repayment process of loans has been set at a particular tenure so that people can easily repay their debt. Extra activity and function like advance payment of loan and replacement of loan are not being charged from people. This bank can develop their structure of price by adding premium deals in their work structure. This means people can get some subsidies when they repay their loan earlier. This will help in taking a big leap towards maintaining good competition in market.

3.4 Illustrating in what way, promotional activities are integrated to attain objectives of marketing

HSBC bank does not provide any gap while promoting their products in market as well as in front of people. Gallego et al.  (2014, p.220) commented that promotion activities need to be organised duly in order to encounter with more number of people. Since this bank has branches in many places across globe, promotional activities need to be effective so that it can be able to cover up such vast area. This company maintains their own catalogue of service, which has been designed in a creative way. Every person attached with this bank gets this catalogue after ending of a fiscal year. It promotes their services using commercials, messages and by delivering brochures to people, who visit branches of this bank.

This bank can uptake another innovative way of reaching people by placing different signboards in every portion of city. This will help people to know about their new services and find interest in those services. Moreover, it can display their terms and loan services in LED screens in every branch. This will help in attracting customers and place news regarding their services to existing customers also. Besides, staffs of this bank need to develop their communication process correctly so that they can influence users by their words. Moving service users towards a particular service can be done by uttering such words that can motivate people to use those services (Naim et al.  2015, p.5). This venture can uptake this process of promoting so that people can be easily brought under their services.

3.5 Analysing elements of extended marketing mix

In the opinion of Smith et al.  (2014, p.2455), extended marketing mix in another name of service marketing mix that includes another 3 P’s namely People, Process and Physical Evidence.

People: People are important part of marketing mix because people are that element, who defines every service (Smith et al.  2015, p.1175). In this bank, people play a vital role because every service has been incorporated in business only for people. Based on their expectations and demand, new and creative services are implemented. This helps in conducting business in a suitable manner thereby, uplifting this organisation into another level.

Process: As mentioned by Berk (2016, p.40), process can be stated as in what way, services are provided to customers. Quick services are provided by this financial corporation in order to maintain a good image in front of people. However, quality of services needs to determine accurately so that people cannot raise a complaint against them. This will lead to bring huge importance to services that are provided for people.

Physical Evidence: Oude Mulders et al.  (2016, p.450) claimed that physical evidence helps in ascertaining whether tangible or intangible services are provided to people. For creating satisfaction among users, elements that are tangible need to be provided with services. Intangible services are not seen but can be felt while using it. Similarly, this bank provides less interest rate for different category of people so that every section of people can use it suitably.

Figure 2: Extended Marketing Mix

(Source: Smith et al.  2015, p.1176)

Task 4

4.1 Planning marketing mix for separate segments in consumer markets for Vodafone UK

(Refer to PPT)

Marketing mix for two separate segments of customers in markets for Vodafone UK is shown properly (Vodafone.co.uk, 2017).

Segmentation of product

Product: Vodafone provides different types of products for customers in market like unlimited data, messages and voice call services. Basic aim of providing such products is enhancing satisfaction level of customers and maintains good competition in market.  Tariffs rates are also reduced so that every people can incline towards using services of this company.

Place: This Company has delivered services to different places in city and also in suburbs. It has also tried to reach people in rural areas thereby, providing them with quality services.

Promotion: Promotional activities of every company have to be very captivating for attracting a large customer base (Damian et al.  2015, p.85). This company uses every possible technique of promoting their products. In order to gain trust of people, it advertises their products in local market as well as international market.

Price: Price of products in Vodafone is set in such a way, that every section of people in society can use it. Along with that, it has maintained reasonable price rate for unlimited calling and data services. Moreover, service quality did not degrade when cost rate was reduced by this venture. Huge competition is maintained in market.

Service Segment

Physical Evidence: Vodafone UK has installed its cables all over cities and has provided its services properly. It has opened up different stores in cities as well as rural areas in order to provide quality services to people.

Processes: Business processes of this entity are very smooth so that queries of customers can be solved properly.

People: People are given huge importance in workplace of Vodafone. Employees, who can deliver quality services to people, are recruited in Vodafone. Satisfaction of customers is also guaranteed by providing them with high-quality services.

4.2 Elucidating differences in products marketing to businesses instead of consumers for Vodafone UK

(Refer to PPT)

Frauendorfer and Mast (2015, p.220) claimed that business to business marketing is not similar as that of business to customer marketing. In business to business marketing, transaction occurs between two different business entities. Vodafone manages their business to business transactions suitably so that strong result can be gained. Entities that seek services from Vodafone are provided with high-quality service in order to maintain proper terms and conditions of business. This company provides service via wire line that is not limited within geographical boundaries of a country. Wireless communication process of this venture is very developed thereby, enhancing business to business marketing of this venture. This bears requirements of internet of other enterprises and delivers them with quality services. This adds great advantages to business of Vodafone. As opined by Ruben (2015, p.110), in B2B transactions, potential quality services need to be achieved in order to attain trust and loyalty of other brands. Vodafone provides services at minimal cost and risk related to those services are very less. This helps in operating properly in business arena and gaining notable advantages in business units.

4.3 Showing in what way and why international marketing of Vodafone differs from that domestic marketing

(Refer to PPT)

Domestic as well as international marketing are two different segments of marketing where marketing norms differs a lot (Nowak et al.  2015, p.4204). There are many areas like possibility, obstacles, earnings and expertise that differ a lot in case of marketing in these two segments.

International marketing	Domestic Marketing
International market provides Vodafone with immense opportunities to expand their business successfully.	Chances of expansion in domestic market are not as high as that of international market.
When ventures market their products in global market, they have to face huge problem (Walker, 2014, p.6). This venture too had to face different problem while conducting business in this sector.	In national market, there is no such barrier that business sectors have to face while executing their business in this market.
Margin of profit is very high in global market.	Margin of profit is not high in domestic market and actual costs of products need to be kept reasonable.
Use of modern technology can be done in international market.	Local markets use traditional technology in comparison to that of global marketing.

Table 1: Difference in International as well as Domestic marketing

(Source: Cooke and Dayton, 2015, p.132)

Conclusion

The study shows that in what way, marketing principles can prove beneficial for any business house. It is important for every individual sector to maintain suitable competition in market. This adds glory to business enterprises and a huge recognition among people. However, it is required that people had to be treated properly while delivering services to them. This will lead to creating a brand awareness among them, which can be considered as a competitive advantage for business sectors. Different strategies need to be developed for better execution of businesses. In order to attract customers, marketing strategies need to be very appealing so that people can be involved under such services. Satisfying every individual purchaser is aim and objective of every business. This will lead to maximise profits of business and gain competitive advantage in business scenario. However, objectives of companies need to be followed accordingly for enhancing profit margin of every business firm.

BUSINESS LAW IN PRACTICE (SM7)

Introduction

Law prevails in society for executions of tasks in a suitable manner so that no trouble occurs due to any hindrance. In order to live in society, it is important to abide by law. Every person, as well as business houses, needs to follow agreements of law properly. This will lead to successful completion of tasks.

Task 1

1.1 Analysing and advising Ben on legal rules of implied terms on goods sale

According to the Consumer Rights Act, 2015, (chapter 2, clause 2) every goods that are purchased must be of a satisfactory standards when it relates to the description given in the package, the statement of the seller, the sample provided for testing and when it continues to work for a considerable period of time (Eldridge, 2016, p.69). The quality of the good must be in a condition such that it fits the purpose that it is claimed to provide; it must be safe with no minor defects and durable (clause 3). In case of Ben, Clause 2 was violated, as the car did not fit the description in the first place. The car had two owners when it clearly stated in the advertisement that it had one owner. Ben did go for testing but it did not fit the purpose that it was deemed to provide. As per section 15A, in such situation, he can return or claim for refund or replacement of the product because a breach of contract has been made by the seller and he is totally liable for compensating (Levine, 2016, p.3)

1.2 Analysing and advising Ben on statutory provisions on property transfer as well as possession

According to Jennings et al. (2016, p.870), the Sale of Goods Act 1979 (section 14), states that in a contract for sale of goods, a seller agrees to transfer the desired product to the consumer in return for a certain amount of money and such contract where the property is transferred from the seller to the buyer, it is called the contract of sale. Where there is a contract, no property can be transferred unless the product is confirmed. Ben went for a test drive, without much considering on its durability, given the fact that it was a second-hand car. He straightaway agreed to purchase the car and wrongfully signed a contract that bore no responsibility for the safety and durability of the product. The property, under the Sales Contract, must be transferred to the required place and time as has been decided by both sides. Under section 12, goods must be free from any charge that is not disclosed until the time the property is passed and the consumer must enjoy the quiet possession of the goods unless it is disturbed by the seller who must receive the charge. Ben before checking on the criteria and getting the possession of the car paid a non-refundable amount, which was indeed a risky business. In case of an unconditional contract, the property passes to the buyer when the contract is made. In case some changes have to be made on a product to deliver it later, such changes must be implemented before it is passed. Apart from servicing and cleaning, there was no proper check of the car parts by the seller, before delivering it to Ben. Goods must be weighed and measured before it is delivered. When goods are sold on an approval basis, the ownership is transferred only when the buyer gives his consent to it (Huskey, 2016, p.379)

As stated by Garfield (2016, p.140), the seller, by terms of the contract, has the right to reserve the disposal of the goods and can stop the transfer, unless certain conditions are fulfilled. Unless agreed upon, the goods remain at the seller’s risk till it is transferred to the buyer, after which it becomes his responsibility. Where the delivery is delayed, the person at fault must bear the responsibility. A buyer cannot acquire ownership from someone who does not have the authority to sell. A buyer who buys under such conditions must return it to the original seller and claim a breach of contract against the false ownership.

1.3 Evaluating statutory provision on buyers and sellers remedies upon contracts of goods

In case the seller refuses to deliver a product, the buyer can take an action against him. If at any time, the product does not match with the provisions of the contract, namely the product description, quality, safety and durability, the consumer has the right to take an action, or reject, ask for repair or replacement, or refund of money. Buyers must be given time to examine the product and in case a fault has been discovered at the time of buying; he can reject immediately and ask for a refund (Voiculescu, 2017, p.230).  Ben took a test drive but later the car failed to perform as was desired, so possibility might exist that it was not the same car. This was clearly a breach of contract and a fraudulent step on the part of the seller. Ben rightfully asked for a refund which the seller was liable to pay. If such is the case he could ask for the replacement or the repairing of the car. Customers have approach right to the seller regarding any product for a span of six years from the date of its purchase, during which the seller must inform the buyer about the lasting time and the safety factors of the product. Ben decides to return the car after the fifth day of the problem, and he is liable to get the refund to which he has been denied.

As for the seller, he can rightfully possess any good until the required price has been paid or where the buyer is not of sound mind. In cases where the buyer is insolvent and has acquired the product, the seller who has sold the product can rightfully claim the possession of the good and stop its movement halfway, and the buyer must re-deliver the good according to the direction of the seller. For perishable product, if the seller wishes to sell the product to the customer, but the customer postpones his buying plan, the seller has the right to re-sale it to any other customer and recover the damage cost from the original buyer. Where the seller has already transferred the product to the buyer but he refuses to pay, he can take an action against him (McCorquodale et al. 2016, p.888).

1.4 Analysing on product liability legal rules and statutory provisions of faulty goods

As per Eldridge (2016, p.70), in case of any faulty product or its damaged part, that is likely to cause death or injury, the customer is liable to ask for replacement, rejection, refund or compensation. In case where there is no option for replacement or repair, the alternative remedy can be the full or partial reduction. Ben must return his faulty car and ask for a full or partial refund, replacement or return of the product. If the fault appears within the six months of its purchase, it can be assumed that the product was already faulty. Ben realised within five days of his purchase, so it can be assumed that either the product was already damaged or it was exchanged for something worse.

Task 2

2.1 Differentiating several types of credit agreements

Numerous agreements can be formed, which can be used by Ben for obtaining a new car. This has been clearly mentioned in Consumer Credit Act of 1974. O'Shea (2017, p.550) mentioned that Consumer Credit Act of 1974 states several laws regarding restriction in use of credit cards and no restriction in use of credit cards. In case of Ben, limited credit has been used by him to car dealer. However, credit provided to creditor can be used by him easily whenever he wants. This might contradict with terms and conditions of agreements.

Usage of unrestricted credits: Section 11(1) of this Act states some credit are not defined by any kind of agreement. Such credits are limited in nature and debtors cannot use it whenever he wants.

Investor-borrower and supplier agreements: Such agreements are prepared by investors where he has done some extra arrangements between him and supplier. Borrower has to follow words of investors in this case accordingly. In section 12 of this Act, this agreement has been clearly stated.

Agreements between investor and debtors: Prevailing arrangement is not done between supplier and investors. Debtors have knowledge regarding credits that is used by them for any transaction with creditors.

According to Haapio and Barton (2017, p.372), consumer credit Acts are formed between debtor party and investor party, where any flaw regarding processes of business exists. Terms and conditions in agreements need to be very clear so that no issues occur while trading. Ben can deal with car owners by making suitable agreements for his benefits.

2.2 Analysing legal rules on termination rights as well as default notices for Ben

Credit agreement can be terminated by Ben easily and Consumer Protection Act in year 1974 provides such rights to borrowers. Thompson (2017, p.65) commented that Consumer Protection Act states customer can abort agreements before signing any such agreements. In addition to this, if sign has been done, users can end such agreements easily within tenure of 14 days. However, proper notice is required to be given to moneylenders when plan of termination has been done by customer. Not only this, lender need to send default notice regarding termination of agreements. Such notice is required to comprise information sheets of FCA, which are available in sites of FCA. Page and Tarp (2017, p.663) informed that default notice help customer to understand what steps are required to be taken in aborting such agreements.

Along with that, Ben will come know about results that can take place if default notice is taken into consideration. If money lender wants then they can charge remuneration from debtors. Ben had to follow words of lenders if proper decision is provided to them. However, if lender mentions any wrong in notice, Ben can charge penalty against such lender. That is why credit agreements need to be clearly followed by both Ben and his money lender. In case of Morrison v Coast Finance Ltd., Morrison borrowed money from Coast Finance Ltd. However, terms and conditions, in this case, were clearly followed but repayment lead to trouble for Morrison. When she filed a case, court could not find any relationship between both parties and it dismissed such case. That is why Ben needs to understand these facts properly so that further he need not get into trouble.

2.3 Examining general characteristics of Agency and distinguishing between different types of agents

According to Goldmann (2017, p.105), agency works to meet requirements of other individuals so that other person can easily conduct their work smoothly with help of agency. Agencies are formed in two separate ways namely, agency initiated from agreements and agencies formed with assistance of law.

Agency formed from agreements: Maximum agencies are created by signing contracts. In this case, different terms, capacity of contracts and proper documentation are present for conducting work in a suitable manner.

Agency formation because of law: Such agencies are formed under implied terms of law. When valid agreements are not present between parties, courts seeks help from implied agencies (Shackelford et al. 2017, p.116). Sometimes, there are apparent agencies also that provide assistance to work of different authorities. Parties that are not linked up with the help of a contract, ruling authorities act as an agency. Such agencies are known as transparent agency. Act of humanity are done by such agencies so that peace can prevail in society.

There are lots of agents that are present for solving issues of parties, who are bonded in a contract. Servant, general agent, sub agent and agency related to their own interest are agents that work on behalf of other people.

Sub agent: Such agents work under main agent and they might not be recognised by law properly.

Servant: Servant is some agent, who has been employed by their owner to conduct acts on behalf of owner (McCormack, 2017, p.170).

General Agent: This agent has to transact in large numbers and has huge responsibility of acting on behalf of another person.

Agency related to their interest: This agent is associated directly with acts and compensation of such agents is dependent upon their link with acts.

2.4 Evaluating rights and duties of an agent for assisting Ben to understand his position

Zhang (2017, p.61) informed that agents have to perform huge range of duties so that they do not have to answer to law. Duties of agent are duty related to care as well as skill, duty of their loyalty and obedience duty. Obedient duty states that agent needs to follow legal instruction of person obediently on behalf of whom, agent is performing their act. Skills and care in place of duty need to be followed when it is assigned to them. Agent needs to be loyal in performing their duty so that another person do not raise a complaint against them. Besides, such agent need not put their own interest in acts thereby, raising no agitation against them. Storey and Salaman (2017, p.650) explained that remuneration, third party and lien are considered as right of an agent. Ben needs to understand these rights properly before becoming a car agent. He needs to get suitable wages for better execution of work and he can use goods of debtors if they do not pay their debts in time. When third parties get involved in a case, agent might come out from agreement and other person and third party can take actions against each other.

Task 3

3.1 Outlining and explaining monopolies as well as anti-competitive practice legislation in UK

Several laws have been set by government of UK for maintaining fair monopoly and restrict practice of anti-competition. Laws like Competition Act of 1998 and Enterprise and Regulatory Act have been formed for better execution of business processes of UK Aluchna and Idowu (2017, p.996). Competition Act states that illegal ways cannot be used by ventures for execution of their businesses. There are several prohibitions that need to be strictly followed while conducting business like no fixed pricing policy to maintain competition in market and never abuse any other business processes. For example, in case of Napp Pharmaceutical Holding Limited, it has retained competition by reducing market share of Napp in hospital and community.

That is why; it is essential that fair trade practices need to be followed in businesses. Enterprise and Regulatory Act that was formed in year 2013 states that competition, as well as intelligence related to market tasks, need to be performed by Fair Trading Office. This will let business to promote fair competition in UK market, enhance productivity and skills. Moreover, innovation and creativity will also be encouraged in commerce. For example, in case of Asda stores v Gilchrist, claimant got injury by falling from clothes racks after purchasing that product from Defendents’ stores. Court mentioned that defendant was unable to provide safety to their customer and is thus answerable to law. Similarly, Enterprise and Regulatory Act states that safety needs to be assured to people for better operation in business or else strict action can be taken against such deeds.

3.2 Explaining role of competition commission in context of monopolies

Fair Trading Office: This body looks after whether business houses conducts any unfair means of trading or not (Schwartz, 2017, p.236). Responsibilities of such authority are promoting structure of market whenever competition increases and restrict business practices for better operation in business. There is another is another body named as commission of competition that looks after whether merger is proving beneficial for business or not. When they found proper practices of trade and commerce are followed, they permit mergers to be implemented in business and sometimes, modifications are made when required. This body supervises work practices correctly so that merger is properly implemented in every business sector or not.

Competition and Market Authority: This authority regulates competition by merging roles of both fair trading and commission for competition. This body applies different rules upon mergers in order to maintain proper business processes. This authority has set a policy upon merger when a business house incurs loss because of competition loss due to merger. Unilateral effects, vertical effects and co-ordinate can lead to reduce competition in market with help of merger.

If any organisation is found to breach rules and regulations of this authority then such sectors have to suffer from severe penalty. It provides full support to companies for using merger in gaining competitive advantages but if any wrong doings are undertaken, and then it may leave a deep impact on business practices.

3.3 Defining dominant positions in common market of EU

Article 82 of European Union treaty mentions that any fault that occurs when business ventures in dominant positions in common market can be prohibited if it influences European Union directly.  In order to apply this article in business units, four essential elements need to be considered. This includes that undertakings need to be in a supreme position, position needs to comply with common market and there needs to be delinquency of such position. Along with that, delinquency might affect inter-state trade of that business venture. For example, EU has aborted merger that has occurred between London Stock Exchange and Deutsche Borse. Autorite de la concurrence has been charged fine of amount 100 million for abusing dominant position in European market. Zellweger (2017, p.1045) proposed that European Union supervises every aspect of commission and if it finds any misconduct, it immediately imposes change upon such commission. According to European Union, every business enterprise needs to attend joint meeting that is arranged by this union. This will help in maintaining proper business practices in EU market. In case of Apple Rus Ltd, this company needs to bring up a service centre. However, this company has not done it in time and investigation against this centre was done where it has to undergo several penalties. EU can charge fine up to 10% of global turnover of any business venture if it finds any breach of contract (Barrera, 2017, p.170). This shows that EU has strong hold over common market of UK.

3.4 Considering instances when EU law will make exemptions for anti-competitive practices

Competition commission makes some changes in agreements that are been made according to article 81(3) if Treaty of Rome (Simonova and Rudenko, 2017, p.615). If it is found that some agreements are not able to make suitable profits, then block exemption can be applied. This is limited to particular business sectors. However, EU has power of providing exemptions and then notify for clearance. Moreover, proper investigations need to be done according to this treaty. There are two important conditions of individual exemptions and they are positive conditions as well as negative conditions. Han (2017, p.30) stated that positive conditions assists in contributing greatly in production as well as distribution of goods. As a result, fair means of trade is present and customers are also not been cheated at any cost.

Negative conditions mentions that limitations will be imposed upon firms regarding production and distribution. Block exemptions covers up special types of agreements that are being made between two parties. Agreements are related to distribution and licensing of businesses. This commission provides freedom upon insurance as well as transportation part. For example, Cathode ray tubes were used by companies like LG and Samsung for stopping anti-competitive practices. This use is strictly prohibited under EU that is why; these companies had to pay penalty of more than 1.5 billion Euros. It is significant that laws need to be followed properly if business is to be conducted under EU.

Task 4

4.1 Identifying and explaining different forms of intellectual property rights

Han and Nelen (2017, p.150) explained that Intellectual property is of different forms like patents, designs, trademarks and copyrights. Patents help in safeguarding new inventions and features as well as processes. This will help in gaining profit from several inventions that are done for gaining success in business. UK Intellectual Property Office has some criteria like new invention and requirement of inventive steps that needs to be followed for protecting intellectual properties. Designs help in protecting appearance of products so that features of products might remain unchanged (Ng et al. 2017, p.120). Trademarks help in differentiating a particular product from one company to another. It is required that trademarks need to be registered in office of intellectual property.

This will help in recognising better quality products. Registration is essential because registration has a validity of ten years for any product. Copyright helps in protecting literary works so that ideas of work can be safeguarded properly. Copyright Designs and patents Act in year 1988 has been formed for safeguarding ideas of work suitably. In case of Godfrey v Lees, claimant confirmed that he or she was the one, who really contributed to creation of work. However, claimant did not get any recognition regarding his work and thus, he had to stop his license regarding music. There are several cases where copywriting has been strictly been prohibited and court has taken severe action against them. Therefore, it is important to understand intellectual property significance and its terms accurately.

4.2 Outlining principles relating to protections of interventions

As per deLisle (2017, p.70), patents are important part of intellectual property because it helps in using extra benefits in scenario of business. Rights of patents comprise of legal steps can be taken towards people, who are manufacturing, selling and importing patents without prior permission of dealer. Patents help in selling inventions as well as rights related to intellectual property. License of invention can be provided to anyone else and discussion regarding invention with others can be done. This will help in focusing business mainly into invention. Customers get huge profits from patents because such patents are published after coverage of tenure of 18 months. Infringement of patent means importing as well as selling such products or processes without taking any permission from its owner.

Owner can take accurate actions and ask for damages that have been caused due to infringement. Patent becomes invalid and owner can easily raise questions regarding patent infringement validity. These can be considered as a defense to infringement of patents. In case of Hotchkiss v Greenwood, defendant was held to be responsible for invalidating patent. This led court of law to take proper steps against defendants. In case of Atlantic Works v Brady, court has invalidated patents thereby providing judgments in favour of claimant. Infringement has led law to take proper measures to save businesses from any ill doings of others. It has assisted in taking proper action against person, who is being exploited at every step.

4.3 Describing principles of copyright protection and rules that prevents their infringement

Sulkowski (2017, p.160) described that Owner of copyright consists of both economic as well as moral rights. Moral rights aids in recognising owner and economic rights provides right to work, right to copy work, right for distribution of work and adapt to situation. Infringement of copyright means copying any work without seeking permission from owner. If copyrighting occurs, then owner of copyright will have to provide answer for damages and stop copying, displaying as well as broadcasting of such tasks. Profits and benefits regarding such works need to be provided to owner of copyright. These rules of UK law will help in preventing infringement of copyright. In case of Stars wars v Battlestar Galactica, Stars Wars copyrighted from Battlestar Galactica and attained huge success. This company had stolen ideas from other companies and strict actions were required to be taken. As a result, this company has paid an amount of approx. twenty thousand dollars to another company. Another example of such infringement occurred in case of Apple v Microsoft. Apple has started war regarding use of Graphic User Interface with Microsoft and finally, it filed a case against such company. Decisions were taken in favour of Microsoft because this organisation did not copyright any work of Apple. This shows that copyrighting needs to be done in a valid manner so that severe penalty needs to be faced in long run of business. That is why; ideas can be improved but can never be copyrighted.

4.4 Comparing as well as contrasting protection of trademarks with examples

In UK, companies are provided with business name and also with protection that is provided to its trade mark (O'Reagan, 2017, p.122). For getting registration of company, house of such ventures are responsible for providing registration. If an enterprise contains name of business, then it is not necessary that it will contain proper trademark. Business name, as well as venture name, might not similar. This is main difference in business sectors of UK. In UK, name of entity is never accepted as a trademark because there is no distinctiveness in such name. It might be registered as trademark from initial stage only and also shows its geographical origin of products. Company name can never be considered as trademark because it might be similar to name of another company. It is illegal according to law of UK.

Moreover, it shows a proper connectivity with administration of UK. For example, Case of Barclays Capital Inc. v Theflyonthewall.com shows that court of law found that there was fault in internet subscription regarding stock services. As a result, this company had to answer to law thereby, leading to answer to law. Court has provided judgment based on majority opinion. This shows that trademark is very important in business of UK. Business name can be unique and can differ from trademark in large extent. Trademark has to be registered for proper conduction of business in a proper manner. This will help in maintaining business operation in accurate process.

Conclusion

Importance of law in business is severe and it helps in executing business in a successful manner. It is required that every crucial element of law needs to be considered so that business can function in a proper manner. Several cases are cited in what way, law proved beneficial for them.