Though the need for resources to be available may appear to be obvious, in a few examples managers have called for marketing research without appropriately understanding the measure of assets accessible including both monetary and human resources. Lack of assets can bring about dishonorable and wasteful execution of an advertising research venture. The results of such research frequently will be mistaken. Once more, if reserves are accessible to lead appropriate research however are lacking to actualize the consequence of the research, the marketing research is made useless. Also, the accessibility of an ability pool is a basic issue in choosing whether or not to direct broad showcasing research.
2.3. Agency Theory Agency Theory (AT) is often applied in order to explain certain phenomena in the context of franchising (e.g. Brickley and Dark, 1987; Carney and Gedajlovic, 1991; Doherty and Quinn, 1999). This section therefore deals with some aspects of AT such as the principal-agent model, AT’s application in franchising, agency problems and costs, and it lists measures to remedy those issues. 2.3.1.
Since that time, market segmentation is considered as an important theory in marketing field and also in practices. There are some literatures focused on classifying segmentation variables into different types (Table 1). Wedel and Kamakura proposed ‘observable’ and ‘unobservable’ category, first category can be measured objectively measured and another one need for inference from available data (Deal, 1999). Kotler and Keller (2009) put forward traditional criteria of market segmentation is based on geographic, demographic, economic, sociological or psychographic, while behavioral type of segmentation is also applied and it refers to attitudes on benefits offered by certain products, conditions of procurement and
5.3 Country position and attractiveness According to Porter (1990), the level of competitiveness on a country depends on the capacity of the industry and the skills to upgrade and innovate. The competitive advantage is produced and sustained on the differences in values, economics structures, culture, institutions, history, and other factors that contribute to competitive success. Therefore, companies as well as nations have to fight for a position on the market as centers of production or industrialization of products. There are six factors that make countries more competitive: (Porter, 1990) • National competitiveness – It refers to intensity of competitiveness with the rival countries and the area of competition, for instance governmental support, relationship with customers, etc. • Type of domestic demand – Domestic demand refers to its type of structure and level of sophistication and the availability to transfer to other competitors (countries).
Market- and macroeconomic factors such as interest rates, inflation rates and market volatility all have found to be of influence on stock (market) liquidity through this inventory paradigm (\cite{D68}, \cite{CRS01}, \cite{GU09}). Next to the inventory paradigm, information asymmetry is considered to be one of the underlying processes that drive liquidity. Information asymmetry leads to a situation of adverse selection where an informed investors has an informational advantage over an uninformed investor or market-maker. Information asymmetry reduces the willingness of both market makers as well as investors to trade as uncertainty is high. Consequently, spreads increase and traded volume decreases.
According to the trade-off theory, firms can optimize their own capital structure because they encounter a trade-off between the advantages and disadvantages of debt on firm's market value; rising leverage by increasing debt means that the firm can benefit from debt tax shields, which will increase its value (Modigliani and Miller’s (1963) Proposition I under corporate taxes). However, high leverage leads to higher (expected) direct and indirect costs of financial distress, thus, decreasing the firm’s market value. Direct costs include the legal and administrative costs of liquidation or reorganization. Indirect costs refer to the impaired ability to conduct business and to agency costs of debt that are specifically related to periods of high
2.1 Intercultural communication 2.1.1 Essentialist of culture which leads to stereotyping Intercultural communication is viewed as the interaction among individuals from diverse cultural background (Jandt, 2007). However, the definition of the term “culture” seems to be questionable either in scholarly work or daily life. According to Kubota (2012), “culture” is a widely used term that possesses an illusory and problematic concept. In fact, the definition of “culture” depends on the researchers’ viewpoint and the word does not possess any substantive existence (Wikan, 2002). The concept of culture is thus more likely to be misused (Eriksen, 2001).
Investors would like to receive larger cash dividends because of inflation. But from the firm’s viewpoint, inflation causes it to invest substantially more to replace existing equipment, finance new capital expenditures, and meet permanent working capital needs. Thus, there may be a tendency to hold down cash dividends. The amount of growth a firm can sustain and its profitability is related to its dividend decisions, so long as the firm cannot issue additional equity. The protective agreements in a bond indenture or loan agreement often include a restriction on the payment of cash dividends.
CHAPTER TWO 2.0 LITERATURE REVIEW For the purpose of achieving the objective of this study, it is pertinent to review previous work on this subject that will provide us with adequate conceptual, theoretical and empirical background for accessing the relevance and contribution of this study. The study tries to examine the relationship or linkage that exists between exchange rate fluctuation and employment paying attention to the manufacturing sector using analytical and econometric research tools. 2.1 CONCEPTUAL REVIEW 2.1.1 Exchange rate Exchange rate as a term refers to rate of exchange of one nation’s currency to another. According to Sloman and Wride (2009), it is the rate at which one currency trades for another on the foreign exchange
The goal of dynamic pricing is to increase the revenue by discriminating customers who arrive at different times. For instance, if a firm faces a high level of demand, it has an incentive to increase the price to reserve some products for later