Business Essay Exercises - Chapters 7-11, Amberton University

This essay delves into various aspects of business, starting with cultural considerations in international business, specifically focusing on Japan and Mexico. It outlines how to navigate business interactions in these cultures, emphasizing the importance of etiquette, communication styles, and relationship building. The essay then moves on to marketing strategies, presenting a detailed analysis of a target market for non-branded athletic shoes, including demographics, store locations, promotional strategies, and product positioning. Finally, it explores business valuation methods, comparing the price/ratio method, outstanding share method, and conservative rule of thumb, and determining the most appropriate method for a given scenario. The essay concludes with a brief discussion on business ethics and the strategic implications of relocating a business to reduce production costs.

Running head: ESSAY EXCERCISES 1
Name
Institution
Date

ESSAY EXCERCISES 2
1.
Getting business with a client in another country can be a daunting task. The challenge
often arises as a result of difference in cultures. For instance, in Japan observing another
culture’s etiquette plays a crucial role in facilitating a successful communication. This is because
cultural elements have a profound influence on decision-making as well as effectiveness of a
particular business (Rothlin & McCann, 2016). Another things that one has to pay attention to is
the observance of cultural practices varies from one individual to another. Among the most
common values that one is required to have in Japan are as follows:
In most business setting in Japan, silence is valued rather than consistent communication
from one party. Therefore, an introverted approach in the beginning of a business rapport is
common among business people in Japan. This is attested by numerous proverbs in their culture
that places importance on silence.
Another important element that one may consider is group solidarity. In Japan’s culture,
individualism is shunned and group solidarity is embraced. However, individual contribution is
valued although not to the extent of showing praise because it is perceived to be an expression of
embarrassment to the individual contributing substantial remarks.
Business cards in Japan are considered significant and when offered one, it is expected
that one should warmly accept the card, read it and then put it in the pocket. This gesture is
viewed as an expression of extending one’s identity. Age is considered to be important in
business decision making thus older people tend to be respected and treated well (Yamamoto &
Lloyd, 2019). This implies that to get a business with a large institution one has to involve older
people in the negotiations.

ESSAY EXCERCISES 3
2.
While conducting business in Mexico, one is required to understand the culture of the
Mexicans in order to fair well during meetings. This is the case because the country is considered
to be a high-context culture. This implies that they value long time connections and a shared
approach of expectations (Garber, 2019). In this regard, the effectiveness of a team is pegged on
the establishment of relationships. Communication in meetings should be less formal and less
explicit. In essence, the decision making process requires long-term relationships and face to
face engagement.
The Mexican people value family and personal relationship. As a result, effective
business meetings are likely to mix business and personal relationship. Meetings can be held in
homes during dinner or weekend gatherings. It is considered almost impossible to get deals in
Mexico without the element of personal relationship (Frank, 2017). Another significant factor to
note during meetings with Mexicans is that decisions are subject to change or require follow up.
Therefore, one should always watch non-verbal communication which helps individuals from
other countries to speak the language of the Mexicans when conducting business.
3.
Target market
The target market for the non-branded athletic shoe that is low to medium quality and
retails at 39.99 is everyday wearer’s target market segment. This target market is considered as a
mainstream market because it consists of a wide range of individuals who are after purchasing
athletic shoes for purposes of wearing on their day to day life (Andrews & Shimp, 2017). Since
these athletics shoes are not meant to be worn for specific purposes, individuals who are likely to

ESSAY EXCERCISES 4
buy are less concerned with the quality of the shoes and performance. The only thing that they
are interested in are comfortable shoes that reflect value for their money. The income of the
target market will range from 1000 dollars to 2000 dollars which is a reasonable amount for an
individual who is likely to purchase athletic shoes that worth 39.99 dollars. The age groups of the
prospective target market should be between 18-60 years of age.
Location of store
The products are going to be sold in middle-income stores where majority of the target
market frequently shops for similar products. The store will differentiate itself from widely
known brands by price and comfortability of the shoe. The store will also offer online options to
allow people to order and have their products delivered to their location.
Promotions and promoter
The promotion of the products will be conducted in the neighborhoods where the stores
are located. The store will also maximize on social media platforms by using influencers to push
the products in the digital space. Furthermore, the products will be promoted by using local
athletes who have huge followings in the local market. Also, the products will be promoted
through putting up billboards in the locality of the stores.
Positioning
The products will be positioned to give confidence among potential buyers as every day
sport shoe. The products will be marketed to encourage athletic lifestyle. Since consumer
perception of brand influences purchasing decisions, the products will be promoted by local
athletes as shoes that athletics personalities need in their day to day lifestyles (Yoh, Chen, &

ESSAY EXCERCISES 5
Jang, 2016). The products will also be marketed as a comfortable shoe that can be used for
running, daily wear, gym shoes and lifestyle product.
4.
Price/Ratio Method
Price/Ratio method is an analysis method that is used by investors to determine whether
the share price reflects the projected earnings (Trugman, 2016). The method is calculated by the
following formula.
Price/Ratio= Market value per share/ earnings per share
P/R=25/5
P/R= 5
This implies that an investor is willing to pay 5 dollars for every dollar earned from the
company.
Outstanding Share Method
Outstanding share method refers to the shares that are owned by stockholders, staff and
investors recognized in the public domain. The formula for calculating outstanding share is given
as follows.
Outstanding shares= issued stock –treasury stock
The outstanding share in this case is given as 20,400. It therefore implies that the greater
the number of outstanding stock the ore stable the company is provided price stability in the
stock prices.

ESSAY EXCERCISES 6
Conservative rule of thumb
The conservative rule of thumb method is often specific to an industry and is expressed
as earning before deductions. However the rule of thumbs is not considered to be a credible
method because it does not consider other variables such as utilization, profitability and
operating environment. In this scenario, the conservative rule of thumb is expressed by the
average net income over five years which is given as $95,000. Therefore, the best method that is
applicable to this business is Price/Ratio method because it gives a better valuation compared to
the other two approaches.
5.
Ethics in business is concerned with moral principles that govern a person’s behavior.
With regards to ABC corporation, it is ethical to leave the United States and depend still depend
on the same market. This is because the circumstance is not an ethical issue but strategic
practices aimed at maximizing profits for the company. Majority of the firms enter into business
to make profits (Crane, Matten, Glozer & Spence, 2019). In order to realize this objective,
companies have to reduce their liabilities. Therefore, the decision to move to another country
where the cost of production is cheaper is a good decision for the company and they should
proceed with the move.

ESSAY EXCERCISES 7
References
Andrews, J. C., & Shimp, T. A. (2017). Advertising, promotion, and other aspects of integrated
marketing communications. Nelson Education.
Crane, A., Matten, D., Glozer, S., & Spence, L. (2019). Business ethics: Managing corporate
citizenship and sustainability in the age of globalization. Oxford University Press.
Frank, E. J. (2017). Teaching International Business as an Opportunity to Develop Cultural
Sensitivity. Journal of Teaching in International Business, 28(3-4), 197-211.
Garber, H. E. (2019). Conducting Cross Border Business And Entrepreneurship Opportunities In
Sonora, Mexico.
Rothlin, S., & McCann, D. (2016). The Social Environment: Business Etiquette and Cultural
Sensitivity. In International Business Ethics (pp. 321-340). Springer, Berlin, Heidelberg.
Trugman. (2016). Understanding business valuation: A practical guide to valuing small to
medium sized businesses. John Wiley & Sons.
Yamamoto, K., & Lloyd, R. A. (2019). Ethical Considerations of Japanese Business
Culture. Journal of Business Diversity, 19(2).
Yoh, T., Chen, H. Y., & Jang, I. (2016). Utilitarian and Hedonic Consumption Values on
American College Students’ Athletic Footwear Purchase Intention. International Journal
of Academic Research in Business and Social Sciences, 6(12), 307-320.