A currency board is defined as the authority of monetary that maintains the fixed rate of exchange along with the foreign currency. Moreover, it is also defined as the extremist form of the exchange rate in which the management two main aspects like the supply of money and exchange rate are moved away from the central bank of the country. It is performed effective process and decisions under the authority of monetary and decisions are taken about the validation of the currency of the nations. Moreover, this board is operating differently from the gold standard. There are negative and positive aspects of board currency as it delivers the stable inflation rate and the reason is that in this exchange rate is fixed and the products that are coming from the international border with stable prices and maintain the stability of the economy of a country. The negative issue is that it eliminates the monetary policy as well as does not manipulate the supply of money and the interest rate. Hence, the currency board is lost the important tool to fight with the recession process. Another important feature of the currency board is to save the huge reserves of foreign exchange.

Question 2

It is the project in which a client pays towards the contractor to hire the train and expert personnel. It is an efficient way to export different processes and technology in other countries where a new plant is going to be started. The companies that have complex technologies and production scenarios are used the turnkey project to enter into the foreign market. When an international organization is busy as started to develop the setting of turnkey projects at an international level then all the process, design and procedures are designed entirely and after the completion. the project is hand over to the local personnel that is specially trained. As a result, the international company is provided by the fee for the completion of the project that is suitable. Therefore, in turnkey projects like construction of dams, airports, electricity power stations, mills, roads, plants and refineries are included. There are various advantages of turnkey projects when entering into a foreign market as it enhances the chances of earn profit and the direct investment opportunities in the foreign market as chances of experts are increased that was limited in the specific areas. It is cost-effective and increases the chances of entry into the foreign market because of its quality and expertise that are trained for a specific purpose.

Question 3

There are different steps that are taken by experts to enhance the chances of export successfully. Hence, the chances of probability are increased while taking some strategic steps that are important and supportive for the novice exporter. In this regard, hire the management company of the export or hire a consultant that has less experienced in the export of the products. It is beneficial as identifying the opportunities, regulations and navigate all the processes and procedures that are essential in exporting. In addition, it develops the focus on market and created a sense of this market. It also provides opportunities to enter into the foreign market at a lower level that is cost-efficient and avoid any failure. Exporters are needed to perform on time and the right time for the export sale and firm on the commitment that is essential for the sales of export along with the hiring of additional personnel. The most important strategic step is to grab the attention to develop a strong relationship with the customers, distributors and other stakeholders that are affected by this export. Moreover, to promote the export business, hire the local people that will be beneficial for a company when performing in a foreign market.

Question 4

It is an effective tool that is considered as the goal-setting phenomenon in different countries and it is considered as the goal like the stability of the exchange rate and the mobility of capital. This autonomy is established to develop the policy of monetary that is effective to enhance the growth, export, and investment as well as stability of prices.  Monetary autonomy is the process of independence of the central bank within the system of a country that has affected the supply of money and the economy of the country. According to this monetary policy, the floating exchange rate is different from a fixed exchange rate in different aspects that are:

·         In this, a bank is able to control the supply of money

·         When there is a need to stimulate the economy and investment of the country as lower down the interest rate of the domestic economy according to the desire, then a supply of money is raised

·         The unemployment rate is reduced after this practice

·         The policy is considered as a tool that is used to control the economy of domestic by the government

Consequently, the fixed exchange rate is narrow down the value of the currency because of causing constraints. In this, the demand for foreign currency is supplied by the bank that is maintaining the payments and buy currency for the growth of the domestic economy but there is no increase in the supply of money. The monetary policy is also ineffective in this exchange rate because of a fixed rate of exchange that is creating problems further.

Question 5

The pressure that is received from the cost reduction and in these firms is reducing the cost of their products. When the pressure is increased then the firm chased to the different exports along with its subsidiaries. It is important to the firm that identifies those locations where the optimal economic conditions are available. In addition, the export of business is started around the world. Therefore, the company will be able to analyze the optimal locations and curves related to economics that will increase the business practices and export as well. It is possible for firms to export the final product through subsidiaries of marketing that are working in different countries. However, the subsidiaries are owned by proper responsibilities and distribution of products where these subsidiaries were performing in various countries.

To use the arrangements of a joint venture for the proper setting of marketing subsidiaries along with avail the opportunities and services of agents of foreign markets that provide the control related to pressure due to cost reduction. It is a good adaptation the dispersed the strong value chain that has the ability to generate profit and increases the competition within the market and outside the market. Hence, it is good to use the standard strategies at a global level and improve the entry mode to other markets. 

Question 6

Taking a loan from the foreign market is very common in different countries to upscale share market value but the problem with Thailand was to use the investment in an unwise manner
The other problem is that when you see some stock market gaining value, you should not blindly jump into it and invest a large amount of money without knowing its future.
The investments which were given by some investor’s personal sources are not reliable. When the personal benefits are against the country’s economy, personal profits will be prioritized. So before making a big marketing decision, trustworthy and sustainable sources should be used.
the most important concept of having a stable market is are you have to win the trust of the investors and by suddenly losing the value of baht, the investors felt the threat and they sold all the stocks to prevent future loss. A country’s currency is the main factor that attracts foreign investors. Actually, a country’s economy is represented by its currency’s international value. If a country has a stable international value for its currency it means that the economy of a country is stable. That is what happened with the economic value of Thailand when foreign investors observed Thailand currency rising up they were in line to invest but when the currency’s international value began to drop ( which even the bank tried to stop by artificial means but failed) all the investors tried to save their investments and sold their stocks rapidly in the same manner they invested. So, the bottom line is, to have a stable economy, you should win the trust of your investors, maintain your country currency international value and rely on stable sources of financialaid.There are some groups of countries which have the same economic policy and one country is representative of the whole group of the country. This can be very beneficial for mutual interests but on the same one faulty economic decision of one country can cause the reliability of other countries to be on the verge. This is what happened to Thailand’s neighbouring countries. When Thailand was in a state of acquiring huge investments from the foreign market, the other countries followed its lead. When the economy of Thailand began to fall, the investors lost their trust in all these countries which had the same policy and fall of Thailand’s economy caused combined chaos.

Question 7

Exporting is an effective process as the product is export from one country to another. Therefore, for Marry, it is a good opportunity to export its products in Brazil, Mexico, France, the US, Russia and other countries. However, there are two ways of exporting that are directly and indirectly. Here marry used the indirect way of exporting to her products in different countries. The reason is that she has limited budget and resources and export is done through the intermediaries of the domestic industry. The exporting has positive and negative aspects that the marry faced are:

Advantages of exporting

The advantages of exporting are:

Chances of risks are low

Easy access to the market

Distribution of surplus is easy and beneficial

Disadvantages of exporting

The disadvantages of exporting that the marry faced are

It requires the high cost

No control of the distribution of products

Export through indirect intermediaries are also required high cost

Licensing is a process in which an individual is used legal permission to protect the product and technology and it is the easy way to enter into the foreign market for the Marry. It has positive and negative aspects that are:

Advantages of exporting

·         It is easy for marry as low investment is required

·         Labor is hired on the low cost that will be beneficial for marrying as she had limited budget and resources

Disadvantages of exporting

It is a time-consuming process that created the problem for marrying

The product quality is also disturbed as well as the reputation of the specific licensor

Although, the freight forwarder is providing different services that are export documents, cargo services, warehouse, document, insurance and consolidation to export the products ina responsible way. Yes, marry used the services of a freight forwarder to export the products in different developed countries where stable economic conditions are available. The services that marry availed are warehousing, shipment and cargo services to export the products within time and have no problem as well. Moreover, the cost that was used for the shipment process is 35 to 75 dollars. She spent this money because of exporting her products in different countries. Horse place products are also available and have potential markets for the products of horse place are China, Poland, Belgium, Indonesia and China. Hence, the business of Marry was improved as using different ways to promote her products and maintain the growth of the business as well. However, the products of Marry business were also famous around the world through exporting and licensing that she managed properly.

As far as freight forwarder is concerned, it can be said that she will need the services of a freight forwarder to ship its products to different countries mentioned in the case. It is a fact that product is not being made in those countries, where opportunities are found, so she will need carrier services of freight forwarder so that product can reach to sellers, and ultimately reach to its customers. It was mentioned that company is considering to find opportunities in mentioned countries, so at the moment, it is important to focus on these countries, rather looking for any other countries, because once they get a good response from these locations, then they can go for more locations in the future.

Question 8

In the above-mentioned point, Starbucks is performing with the high cost of milk that also affects the economy of the company and the profit rate as well. The company has not decreased the price of its products that develop the negative image of the company among its customers. As in the coffee industry, the main issue is to maintain the quality ad profit of the product and Starbucks has also suffered from these similar issues. According to my perspective, Starbucks is needed to improve its strategy and marketing development. The actual issue that is raised due to the poor strategic marketing, increased competition, changed perceptions about the product price and quality as well as customers were not satisfied because of the high prices of the milk and other dairy products.

Lack of strategic marketing At Starbucks

At Starbucks, there was no marketing officer that managed all the marketing activities in a responsible way. Therefore, the perceptions that were changed as the company has focused on the high prices of the product and the opening of new stores in different countries. Moreover, with the high prices of milk and dairy products customers were not satisfied and the company did not consider their satisfaction level. Hence, it was a major issue that should be considered by Starbucks to achieve a significant position in the coffee market. As Starbucks main focused on the high process that had a negative impact on the reputation of the company among the customers and competitors. Subsequently, the competitors gained the opportunity to attract and grab the customersbecause of some deficiencies of Starbucks.

Moreover, the company has also other weakness that I observed from the point as the company due to high prices, a large number of customers have no range towards the lower customers. In addition, the company also suffered from some environment and social aspects while collecting the raw material for dairy products like coffee beans. Furthermore, the company faced some threats because there is intense competition in the market, fluctuation in the prices, and the high prices of coffee beans in the market.

In my perceptions, Starbucks should manage the strategies of the company especially marketing strategy that is important for the development of the company. Therefore, the strategy that Starbucks should use is the marketing mix strategy, branding strategy, supply chain management. Most importantly, the company should focus on customer satisfaction and consider all the external factors that significantly improve the economy and growth of the business. The target population of the company was an only elite class that has high income that depicts the poor marketing that is adopted.

It is necessary for the business to perform its activities in a strategic way and maintain growth and development in a sustainable way. Therefore, the main issue faced by Starbucks as the company did not adopt the marketing strategy properly and most importantly, did not consider the need and demand of customers.

If Starbucks is wanted to achieve a significant position in the business market and achieve the loyalty of customers and employees then the company should adopt effective strategies at each level of the organization and set sustainable objectives. Customers demand and loyalty also considered a priority because customers are the success factors for the development of the organization. The company should develop a pricing strategy that will not only target the elite class but all the people who have easy access. Corporate social responsibility should also perform effectively and use products that are environmentally friendly. In the last, Starbucks will adopt these strategies and secure the future of the company with excellent performance.

Looking at the problems faced by Starbucks, and how things have been happening, I would suggest and support the point rather than recommending counterpoint. A company should understand that when things are not looking great or any kind of risk is possible, then it is always recommended to go with hedging so that various risks can be avoided accordingly.