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THE EU’S SINGLE MARKET; THE IMPACT OF A FAILURE TO HARMONISE TAXES



Introduction:

EU single market operations have been installed in 1985 for the purpose to make movement within European Union countries without technical, physical and tax related barriers. However, the main aim of European Union committee was to stimulate commercial and industrial expansion as by attaining unified market operations in the favor of European countries. Later on, it became a great threat for whole world because developed countries came to this side for giving tough time to whole world. In single market operations; companies may take couple advantage over rest of competitors as EU companies may expand their manufacturing plants around EU countries. For instance, fabric manufacturing companies don’t afford extra expenditure on employees therefore they prefer to open up their manufacturing plants where they can find cheap labor rates. Hence, they open up such setups in where they can find their desired advantage. in single market operations activities used to be interlinked with each other therefore its main purpose is to produce products for community market. On other hand, a holding authority is needed to control all these functions on ground level that is European Union, which is supposed responsible for taking care of community harmonization legislation. They need to ensure health concerning issues covered by manufacturer. Hence, single market operations used to be surveillance by regional authorities as for knowing the convenient and promising features available by company to its valuable customers. (EC regulatory authority (2010).



As far as objectives of single market are concerned, the intentions behind in coalition of market forces are to merged together in order to work freely and unified system against external market forces. European Union member states don’t want to let any other state allow interpenetrating through loopholes therefore a joint action has been taken against dominant market elements. For this particular reason, emergence of euro currency came into experience, which is good sign for all European countries as it protected them from the worries of exchange rates. Single market operations don’t offer tax constraints to companies. Thus, companies can carry their equipment and plants within specified region.

Research objectives:

  1. We want to study EU single market operations
  2. We want to investigate the impact of a failure to harmonize taxes.
  3. We want to investigate the role of EU single market in the context of tax implementation.
  4. We want to study; why problems can this cause





Tesco: An Overview



Researchers and strategists actually claim that Tesco actually works on the principle of aggressive marketing techniques that are applicable in both the short and the long run. It is the strategy of Tesco that have actually made Tesco the best retailer in the world. Their retail strategy is quite distinct with other retailers. Tesco is considered as a champion retailer and they have shown greater energy and responsiveness to certain volatile marker places and that is the reason why different retailers and have felt this pressure of the champion. Their strategy is actually the core power of this mega brand. The main strategy of Tesco is that they focus on scenario of customers and that is the reason why they have excelled in both the short and the long run. They also work with the simple strategy that is what you actually see in the shops is what you exactly get in the stores (Heller 2005).


Marketing Strategy at Tesco
The market orientation is one of the greatest factors in the development of the strategy and the management of Tesco plays an important role and their philosophies is based on the scenario that no one tries harder for customers and treat people how we like to be treated. The values of this organisation are actually created because of the internal marketing strategy of this organisation and this also includes the distribution of newspaper to the employees (Anthony 2008). Different schemes of this organisation are viable in both the short and the long run and the employees kept in their mind that they are working for the biggest retailer that is the reason why the strategies that are created should be viable in both the short and the long run. The staff of this organisation is briefed about the importance of Clubcard and that is the reason why internal launch was initiated with the internal marketing (Humby and Phillips 2004).


Purpose of this research
The entire research is focused on the scenario that what is the actual impact of Tesco Marketing Strategies on small retail outlets that are operating in the United Kingdom. In the similar manner emphasis is laid on the scenario that how these small retail businesses adopt strategies in order to face the mammoth marketing strategies of retail giant Tesco. Emphasis is laid on the core marketing strategies of both Tesco and several small retail outlets. The research is based on qualitative analysis and the strategy of questionnaire is used extensively to check the hypothesis. In the similar manner it can be said that the core purpose of this research report is to identify the marketing and strategies decisions that are taken by Tesco and other organisations. However, it can be said that the core aim of this research is based on the scenario that what are the short and the long term effects of the 4P’s of Tesco on other small retailers in north London UK.


Scope of the research
The scope of the research is limited towards the marketing strategies of Tesco and certain other small retail outlets that are operating in the United Kingdom. In order to evaluate their effectiveness emphasis is laid on the secondary research and that s the reason why it can be said that emphasis is laid on the secondary research and qualitative data is analysed in this research. It can also be said that in order to check the effectiveness of this research this research will incorporate the primary data and responses of retailers will be analysed. However, it can also be said that the scope of this research is limited to North London UK.


Research Questions
There are certain research questions that are be analysed in the dissertation and these research questions are answered in the findings and analysis chapter of this dissertation. The research questions are listed below:


1. What are the effects of Tesco’s price marketing strategy on small retail businesses that are operating in North London?
2. What are the effects of Tesco’s product marketing strategy on small retail business that are operating in North London?

3. What are the effects of Tesco’s promotional marketing strategy on small retail business that is operating in North London?
4. What are the effects of Tesco’s Place marketing strategy on small retail business that is operating in North London?


Hypothesis of the research
The hypothesis of the research is Tesco’s marketing strategy is creating difficulties for small retailers of United Kingdom and they are unable to target the customers in an effective and an efficient way. The hypothesis will be tested through both secondary and primary researches and through proper research the hypothesis will either be accepted or rejected.




The Malaysian Operation



The plan of developing market share for goods external to the usual supermarket arena has resulted in Tesco excedding Sainsbury’s to become the biggest supermarket in the UK, and it now holds over a quarter of the market (Strategic Direction, 2005). In 2008, Tesco began to offer its first in-store order-and-collect service as it tries to compete with Argos, the current leader the catalogue sector. The new service was evaluated at Tesco’s Cribbs Causeway store (which is utilized as a laboratory store for testing new products and services) and has since been extended to other locations as well. Tesco has also begun to offer a collection of software products for home or office use that competes directly with offerings from Microsoft. Tesco Complete Office comprises two security/antivirus products, a personal finance program, a DVD-writing tool, and a photo-editing application and is sold for less than £20 compared to Microsoft Office 2007 which sells for £45.


Tesco has in the recent past begun to offer the ‘Discounter’ product range to be able to compete with the supposed threat of Aldi and Lidl. The discount supermarket sector has benefited from recent economic havoc as increasing food costs have brought more people to their stores. 80% of Tesco’s sales come from regions in which Aldi and Lidl are not to be found. Commercial director Richard Brasher recognizes the “centre of gravity in the marketplace” has shifted (Ritson, 2008). The test in the future is to stay away from the problem of becoming stuck in the centre of the market when consumers are trading down. However, it might be argued that fighter brands produced to cater to a specific competitor tend to fail as they take over the owner’s higher-priced products instead of taking share from their intended target. Of course it is uncertain how successful this product range has been at stopping customer switching away. In the past three months, £22m of spending shifted from Tesco to Asda, with another £10m moving to Morrisons (Wearden, 2008).


Tesco has also recently carried out substantial social marketing initiatives, such as the opening of a flagship environmentally friendly supermarket in Wick, which has wind turbines, a mechanism to collect and use rainwater, energy-saving cooling and cooking equipment and low-energy lighting. The store is made to produce half the ‘carbon footprint’ of comparable sized traditional supermarket. Examining the value in environmentally conscious initiatives can decrease costs and make customers happy. However, as Tesco tries to form a name as a solidly price-conscious retailer the choice to chase green initiatives may send out confusing messages and this strategy should be investigated when the majority of its customers are lower middle to middle class and are altering their concerns in the current economic situation.


There are three aspects that guide Tesco’s strategic behaviour with regardi to internationalisation. First, purchasing successful companies is key to their scheme of overseas expansion, with greater progress into growing markets from the 1990s onwards. Tesco entered Asia in 1998 with the buying of a majority stake in Lotus hypermarkets in Thailand, and more developed operations in the area when they entered Malaysia in 2002, Japan in 2003 and China in 2004. The Malaysian operation was set up as a joint venture with a local company Sime Darby Behad. Tesco owns 70% of the shares, but the concernis under local control. In China, Tesco entered a similar contract with Shanghai Hymall. Tesco purchased into successful companies with local operational knowhow and set up market share and its expansion strategy hope for eventual market domination.


The second aspect relates to market selection. Tesco opted to enter into markets (Eastern Europe and South East Asia) where local competition was malleable, away from other increasing giants such as Wal-Mart. Tesco also adapted to opportune events, and took on different entry modes in order to create knowledge.




Marketing Strategy



Marketing strategy is the process though which organisations use their scarce resources to achieve competitive advantage in an industry through creating opportunities for increased revenues by applying various methods and techniques (Baker 2008). According to Ferrell and Hartline (2007) the strategic planning process involves an in depth analysis of an organisation’s internal and external environment and implementing tools and techniques to gain a competitive advantage within this environment. The strategic planning process is also referred to as a situational analysis where the situation and environment is evaluated and marketing techniques are implemented through a specific marketing strategy. Implementing a marketing strategy is not only important to gain a competitive advantage but also for the long term survival of an organisation especially in the retailing industry. According to Lamb, Hair and McDaniel (2008) implementing a marketing strategy in any type of retailing company are very important and lead to strategic competitive advantage within the retailing industry.


Sethi (2009) described ten methods of improving a marketing strategy in the current environment which include new strategies for new times, segmentation and decision, search for newer markets, emphasis on value and brand portfolio, updating distribution channels, helping the consumer through various techniques, providing state of the art products and services for consumer convenience, applying effective communication techniques, going digital and using various Information Technology tools and techniques and analysing the changing patterns of consumer demands and behaviour.


Types of Marketing Strategies
There are several types of marketing strategy as described by many researchers and practitioners which are based on various concepts and frameworks. According to Christ (2009) the types of marketing strategies applied by companies are market leader, market challenger, market follower, market niche and alliance marketing. Turnbull and Valla (1986) presented five types of marketing strategies which include technical innovative strategy, product adaptation strategy, availability and security strategy, low price strategy and total adaptation or conformity strategy. Companies implement one of these types of marketing strategies or a mix of these strategies to gain competitive advantage within an organisation.




Coroner



He is autonomous official, whose job is to secure local areas with the funds of local authorities. In some areas of world, coroners are not appointed. Their work is done by procurator fiscals. Section 8 of the coroner’s act 1988 clearly defines the role of a coroner. Eventually, coroner has legal authorization in its hands whether to seal lips on any death or to issue warrant for suspects. He is supposed to undertake these methods in the cases if unnatural death is noticed, unknown sudden death, and death happened in incarceration. Coroner have to, however, be responsible in the identification of decreased individual. Coroner could advice police department to remove decreased body to cold houses. In addition, coroner is also supposed obligator to look after for toxicology and odontology. Coroners have responsibility on their shoulders to train individual in the context of DVI. (Cabinet office (2011)


At Thailand, coroner has to do same important functions as defined under international laws. Coroner has legal authorization in its hands whether to seal lips on any death or to issue warrant for suspects. He is supposed to undertake these methods in the cases if unnatural death is noticed, unknown sudden death, and death happened in incarceration. Coroner have to, however, be responsible in the identification of decreased individual. Coroner could advice police department to remove decreased body to cold houses. In emergency situations, coroner is supposed responsible in the provision of evidences regarding body. For instance, Bangkok flood water took many thousands lives, and coroners never acknowledge anybody’s death until unless he receives significant proves of death. In case if some dies out station even in such conditions coroner would be felt responsible for body under legal jurisdiction. * Civil contingencies act (contingency planning) regulation (2005)


In Yugoslavia, coroner has same functions as in Thailand. NATO bombardment severely disturb to coroner working. Eventually, he couldn’t completely perform some its functions. In war situation, departmental working is totally affected. Thousands of people were brutally killed in such toxic bombardment of air jets, where millions have been displaced in response to warfare activity. World health organization reported it to be looming with continuous respiratory and pneumonia problems. World health organization teams seriously raise their concerns regarding the safety of masses, where clinics were completely destroyed. People didn’t have food to eat and place to live. Hereby, survivors of bombing had urgency of getting appropriate food and clinical services. The author of study would not categorize this 10 week bombing into close category. Nobody knows the exact number count of people decreased in mean while of bombardment.




Research Methodology



This area outlines explanations as to the data sources, data types and the statistical analysis employed to investigate the aims and objectives of the investigation. Harrad et al (2008) emphasise that various methods of research do exist and one should chose methods consistent with their research. The method to be used in this research is conducting interviews by the gang members and the youth workers. The choice of method has been reached because this allows easy reach of serious respondents, fairy easy to administer and not much pressure is exerted on respondents. The downside to this method might be that there is no guarantee if answers might be biased and observations might be easily being misinterpreted.


Interviews
Interviews tend to be used for descriptive or exploratory research. Descriptive research, such as that undertaken using attitude and opinion interviews.
Respondents have been warned that anyone wishing to withdraw from the study can do so before interview starts. Once the interviews starts then respondents can not withdraw from the research .The respondents have been assured that their information will be discarded as soon as data analysis is completed. Those who wish to know the results of the study have been directed to the relevant supervisor as soon as the results are known.


Observations and Surveys
Surveys and observations will supplement the information to be derived from the interviews. The researcher is familiar with how the systerm works but the survey and observations have been necessary just to make sure the researcher has first hand information about work operations and authenticity of the data.


Variables
The need to be clear about the relationships which are likely to exist between variables. A dependent variable changes in response to changes in other variables. An independent variable causes changes in a dependent variable. An extraneous variable might also cause changes in a dependent variable. Rating have been used on the questionnaires and this ordinal data allows (Harrad et al, 2008) some sort of comparison between datasets. The research questions have taken the likert-scale format system probing either opinions or behaviour in respondents.


Statistical Analysis
Descriptive statistics such as mean, median, mode and standard deviation have been used to identify pattern and variations in the distribution of the data. Harrad et al (2008) reiterates that probably the most important assumption is whether the data are normally distributed or not. Once the nature of the distribution has been determined, we can make a decision as to whether parametric tests or non-parametric test can be used.


Research Timetable
Milestone Target Date Description
Pilot study 1 week Includes administration of interview
Research data collection 1-2 weeks depending on sample size Follow up of interview
Data Analysis 2 weeks Data analysis and drawing conclusions for research.
Write ups 3 weeks Writing up dissertation


Resources
Time for this research work has been split between exam study in the evening and research time during the day. The research does not have any costs as envelopes and printing material have been provided. The researchers have used public transport to visit the malls and take opinions from consumers around. Online questionnaires have also been distributed which again have no cost associated to it. There has been no cost of the research since all resources are obtainable online too.




To label one or action as “selfless”



To many people the label altruist is likely to solve some difficult mental problem to them. Their definition of altruism is denying ones self for higher good; yet sometimes they do not imagine any person willingly sacrificing all those things that include their conception for the self for some greater cause. After all people with self-interested respect does not willingly give that self respect for anything else. Now how then can a person give accord to the actions that seems to have altruism? To label one or action as “selfless” or “altruistic” will answer this conundrum.


Altruism here is viewed as a character trait while selflessness is seen something that comes easily to somebody because that is part of how he or she work and others does not necessarily posses that same character trait. Some people having explained altruistic actions of others in terms of traits which seemingly they don’t have, need not to speculate further why altruists are motivated to do selfless acts.


This makes those people to fend off some uneasy questions which are of their personal moral duty in relation to altruist’s perceived actions. Therefore polarizing altruism and selfishness to be a personal trait can enable individuals to avoid their moral actions responsibility. Polarity between altruism and self interest will provide a rationalization for failing to be altruistic: because it is viewed as very immense, too much of a sacrifice. This explains apathy and moral laxity towards the problems facing the world.




This ditochomy is not true



In most that talk about selfishness and altruism, theirs has been assumption that selfishness and altruism are polar opposites. According to those discussions to do moral thing always mean being an altruists. The moral action of the altruists is not influenced by self-interest decisions but is influenced by morally accepted decisions. Conversely selfish act is to prevent or to make impossible for a good to happen which may have been morally implicated.However this view was criticized by descriptive theory of egoism, Feinberg and psychological by arguing that moral deeds are sometimes leads to compromising self needs for other causes.


This ditochomy is not true


It is necessary to note that those who do altruistic acts are always aware of the topic and they do the topics that they feel comfortable with and that they fully identifies with. For instance, for the risk of my life I decided to support a government that will advocate for a democratic, stable and peaceful country. The big question is that what is the reason behind my selfless act and what good will I gain? In this case I will gain security in terms of physical and health securities. Also the elements of identity will rise in. That is whenever people see me they will see me as a democratic person. The point therefore is that a person’s self-identity expands beyond a person’s self interest in a very narrow sense, therefore allowing for situations where selfish action becomes a moral one. In the example above to argue that the sacrifice I have made is to achieve altruism is contradictory. Democracy is highly central in protecting myself interest and is more painful for me to give it up. Altruism and selfishness ceases to exist as mutually exclusive acts.
Assuming that there exist dichotomy between selfishness and altruism is derailing peoples moral integrity.




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