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The Trust Deficit: Why Content Marketing is Your Best Friend


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by kamoru sakiru

 

automotive-social-media-marketing-kathi-kruseTrust is a pivotal tool consumers use to sort and prioritize the gargantuan amount of information they find online.

About.com’s “The Trust Factor” Study recently identified trust as crucial in consumer-brand relationships and a key driver in decision-making. The Trust Factor found that the existence of trust drives consumer decisions, with 84% of respondents reporting they will not engage with a brand until trust has been established.

“With the high volume of information at consumers’ fingertips, not only is trust a valuable filter, it is a prerequisite for consumers to even enter the purchase funnel,” said Laura Salant, director, research, About.com. “By understanding how consumers view trust and what they value most, marketers can tailor their outreach to deliver meaningful information to create authentic, long-lasting relationships.”

71% of consumers trust brands that provide useful info without trying to sell them something.

“Beyond the fact that content marketing powers Social Media, search and sales, marketers must use content marketing because consumers don’t trust advertising.” says Heidi Cohen, digital and direct marketing expert at New York Times Digital.

Consumers consider content marketing in the form of editorial content (whether from a blog or Social Media platform), as more trustworthy than advertising. There is no more broadcasting of untrustworthy messages to a mass audience. Brilliant content marketing is void of promotion; nowhere does it scream “buy from us!”. It’s a human voice that relays information and answers customers seek, thereby enhancing its credibility.

Content marketing is the antidote for consumers’ lack of trust in advertising.

I was fascinated by a recent Stephen Colbert interview with former Ambassador to China and current Utah Governor John Huntsman where he speaks of a”Trust Deficit” permeating throughout our culture. I find this “Trust Deficit” happens readily when someone is faced with a buying decision. No trust built equals no sale made.

The very reason Social Media, blogs and online ratings sites were born is because people don’t trust advertising messages. They want to hear from people like themselves – their trusted network. Our purchase decisions are based on the feedback we get from our friends and family and being connected through technology has made it that much easier.

One of the best ways to attract new customers and connect with repeat customers is to offer relatable, helpful and shareable content. It’s what sets you apart from the rest of the pack and leaves your competition wondering how it happened.

Content marketing is your BFF when it comes to establishing consumer trust.

I’ve had my blog for over 2 years now, consistently posting 2 times per week, and it’s the single-most reason for my credibility and why I get leads. For dealerships, creating and maintaining a blog requires planning and people. It’s a matter of finding those quality people within your organization and allowing them to share remarkable content they find or create.

Here are 5 tips to get your content marketing’s trustworthiness on track:

  1. Display respect, care and consideration for employees and customers. When it comes to good manners, the rules still apply from back when you learned them in kindergarten. Always keep in mind that customers observe how you treat your employees and others connected with your organization.
  2. Be open where appropriate about your store’s business practices.  What you write, post and share shows everything someone needs to know about your business. Keep confidential information private but when applicable, let employees and customers “inside the circle”. Displaying a clear motive along with your good faith practices is a welcome sight in this world of truthiness.
  3. Build engagement by using every opportunity to solve consumers’ large and small challenges. 85% trust brands that use content to inform or help them with a need.
  4. Seek effective content creators who intimately know your brand. Enlist regular front-line personnel, your customers and New Media experts to create and present your content. No one watches your brand like you do so make sure what’s being said is consistent with organization’s values.
  5. Deal with negativity quickly and decisively. Turn negative remarks and reviews into positive experiences. First and foremost, don’t ignore anything that’s being said about you. How you handle conflict with one customer allows your whole network to witness it, thereby showing them what to expect should something happen to them.

Your Turn: How has your content marketing developed trust with your customer? What results have you had with respect to trust and buying decisions?

 
 
 

Tagged as: automotivebusinessconsultingcontentmarketingsocial mediatraining

HOW TO BUILD BUSINESS CREDIT FOR YOUR START UP


 

 

Are you using credit to help finance your new business venture?

You’re not alone as statistics show that over 65% off all business owners use credit for business purchases.  But what’s alarming, is that only 50% of those cards are actually in the business’ name.

As a business owner using personal credit cards for business is a risky approach since you assume total liability and if your company is sued or fails you risk losing personal assets and good credit ratings as well.

So how do you go about building credit in the company’s name without putting your personal credit on the line?

For starters, if you operate as a sole proprietorship you’ll need to incorporate your business and obtain a Federal Tax Identification number.

As a corporation your company is treated as a separate being with its own tax registration with the IRS and state agencies. It files its own tax returns and it can also create its own credit files completely separate from that of its owners.

Your company’s Tax ID Number or Employer Identification Number is the number that you will use to get registered with the business credit bureaus like Dun and Bradstreet.

You will also be required to furnish this number on corporate credit applications because lenders use this information to conduct a business credit check on your company.

Before you start to apply for credit make sure your corporate records, state filings and required business licenses are all up to date. In addition, get your company’s phone number listed in the 411 directory so a supplier or lender can complete every aspect of its verification during the underwriting process.

After you meet these requirements you will be ready to apply for credit and the best place to start is with suppliers. Many types of suppliers, including major brands, extend lines of credit to businesses like yours giving you the opportunity to finance purchases and conserve your company’s cash.

You can obtain products like office supplies, computers and marketing materials with payment terms ranging from net 30 to net 60 days.

You should focus on applying for credit with suppliers that provide products and/or services your company needs in order to make regular purchases using your credit line. By paying invoices on time you will build business credit history and increase your company’s creditworthiness.

With a strong business credit report you can stop relying on your personal credit to qualify for the financing your company needs. Since a creditor, lender or supplier can now easily determine your company’s risk level with a business credit check qualifying will be a much easier process.

As a startup I know it can be tempting for you to decide on operating your business as a sole proprietorship and using your personal credit to fund your business simply because it’s one of the easiest structures to create and you already have the cards on hand.

But by building business credit for your start up, you can improve your company’s image, protect your personal credit, limit your liability and increase your credit capacity since businesses can obtain 10 to 100 times greater financing then an individual.

About the Author

Marco Carbajo's Profile Picture

Marco Carbajo is CEO of the Business Credit Insiders Circle (www.Deeonedotme.wordpress.com), a step-by-step business credit building system providing lines of credit, trade credit and funding sources.

Comments

debtperformance | Window Shopper | 10/11/2012 – 8:07 pm


This comment was removed from public view (Advertisement). Please review theCommunity Rules of Conduct for more information.
 

DoveBuilders | Window Shopper | 6/19/2012 – 12:59 am


Another reason that I’ll be incorporating. I don’t want to use my credit to 
finance my business, and I especially don’t want to put my family’s house on 
the line. Business credit is a must.
Professional Web Site: Commercial Construction

Melda | Window Shopper | 2/10/2012 – 1:02 am


Financial aspect certainly serve as the lifeblood of any business, they even possess great purchasing power as a business owner it is important that your company has good credit. Interesting tips! appropriate for aspiring business owner, so sure this post will help them a lot to gain useful insights that can be applied later on as they established their respective business ideas. Philippine real estate
Professional Web Site: condo in philippines

gianez | Window Shopper | 12/6/2011 – 2:29 pm


This post has been removed from public view (Spam). Please review the Community Rules of Conduct for more information.
 

Marco Carbajo | Guest Blogger | 6/11/2011 – 1:48 pm


Hi Anthony, Good feedback on tracking personal guarantees but a business owner can avoid a PG altogether if they focus on applying for credit with starter vendors. Vendors like Quill, Uline or even name brand companies like FedEx Office will extend a commercial account to companies without a personal guarantee. The terms will be net 30 days but its still a great way for a new company to start establishing credit while conserving cash flow. In addition, many suppliers will offer startups or businesses with little to no business credit a line of credit without a personal guarantee but initially may require 25% down on the initial purchase. They also may require just an initial purchase to activate the credit line but still no PG is required.   All the best,   Marco Carbajo Business Credit Insiders Circlehttp://www.businesscreditblogger.com
Professional Web Site: Business Credit Blogger

Antony G | Window Shopper | 6/9/2011 – 8:22 am


When applying for credit with suppliers, getting started is the hardest part. Since you won’t have any business credit established, a good supplier will still try and set up an account for you by asking for a personal guaranty and by running your personal credit report. This may be the only option you have to get credit extended but don’t let the process stop there. Keep track of all the personal guaranties you sign. If you ever close or sell the business, send a letter to your supplier cancelling your personal guaranty; send the letter certified mail and keep the return receipt (green card) forever. When signing a personal guaranty, ask the supplier if you can make the guaranty only good for one year. That puts the follow up responsibility on them. After one year, contact your supplier about cancelling your personal guaranty. This works especially well if you have established other lines of credit that are not personally guarantied. Your supplier won’t want to lose your business if you have been a good customer and you stand a good chance of them releasing the personal guaranty.
Professional Web Site: http://www.sacm.us.com

B.talbot | Window Shopper | 6/3/2011 – 5:15 am


Interesting post. I'll have to keep it in mind, because I'd love to run my own business soon. It'll obviously be challenging, so I can use all the financial help I can get.. BUSINESS CASH ADVANCE
 

Marco Carbajo | Guest Blogger | 6/2/2011 – 10:30 am


Hi Zoumana, There are many creative ways to obtain financing even if you have less than perfect credit. You can always convert paper assets you may currently hold into cash but the key is to borrow from your greatest strength. While your personal credit may be a weakness at this time you may have other strengths such as strong collateral or a qualified cosigner. There are also options like crowd funding or peer to peer lending that offer a viable alternative to traditional lending. To be most effective with these options make sure you have a solid business plan so you can effectively present your idea to potential backers. All the best, Marco
 

zoumana@assaconstruction.com | Performer | 6/2/2011 – 9:11 am


Hi Mr Carbajo, My name is zoumana.I owne a construction company registered as minority In 2007 i took a microloan from SBA $25,000 until now i didnt pay back the loan cause for many reason.lost house,bad credit. Now i have a good idea for my company that can bring me a lot of cash flow for my business.My need will be $19,500.it is possible for me to have a business loan? thank you
 

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BUSINESS, BUSINESS LISTS, CONTRIBUTOR, CREDIT, ESTABLISH CREDIT, FINANCE, HOW TO,LOAN, MONEY AND FINANCE LISTS, STARTUPS, STARTUPS LISTS,


How-to-establish-business-credit-1b4d3b842d
BY NELLIE AKALPJul 15, 2011
Nellie Akalp is CEO of CorpNet.com. Since forming more than 100,000 corporations and LLCs across the U.S, she has built a strong passion to assist small business owners and entrepreneurs in starting and protecting their business the right way. LIKE the CorpNet.com Facebook page for exclusive discounts and giveaways! To learn more about Nellie and see how she can help your business get off the ground quickly and affordably, please visit here.

 

For the small business owner, trying to navigate the credit and lending world can feel like a vicious Catch-22. Most commercial banks and traditional lenders are reluctant to loosen their purse strings until you’ve proven yourself with a strong credit history. But it’s difficult to develop that good record when no one will lend to you in the first place.

Many small business owners rely on the strength of their personal credit to fund their businesses. But when you use personal credit, your mortgage, auto loan and personal credit cards all affect your ability to qualify for a business loan. Using business credit separates your personal activities from that of the business. Your business credit is dependent on your company’s payment history, assets, cash flow and other financials. It doesn’t include your personal debts or other personal financial obligations.

A strong credit history is the foundation for success, as it can lower your interest rates and give you access to more capital when needed. To start building your business credit, here are the initial steps you should take.

1. Set Up a Business Entity

There’s no such thing as a business loan or business credit for a sole proprietor — that’s a personal loan. In order to receive a business loan or investment, you must separate the business from its personal owners by setting up a legal business entity — a corporation or LLC, for example. Your CPA can advise you on the best legal structure for your particular situation, as your choice in entity can have some pretty significant tax implications.

2. Get a Tax ID Number (EIN)

Every business must have a tax ID number, just like each individual has a social security number. The Tax ID number (or EIN) is a nine-digit number assigned by the IRS to business entities operating in the U.S. You’ll use this number to open your business bank account and build your business credit profile. Apply for your business’ EIN online through the IRS site — and don’t worry, the process is fast and simple.

3. Establish a Business Bank Account

Your business needs at least one bank reference. Ideally, if you need to apply for a loan, your bank account will be at least two years old (of course, there’s not much you can do to change this situation other than apply for a business bank account as early as possible). More important than your account’s lifespan, your business bank account should show a cash flow capable of taking on a business debt. Of course, the optimum average daily balance of your account will depend on your type of business and the amount of financing you’ll be seeking.

4. Get Listed with the Business Credit Bureaus

Dun & Bradstreet is one of the main business credit bureaus and runs its own business credit score. D&B gives businesses a separate credit file number (known as a D&B or DUNS number) that rates your credit profile. Go to their site to find out if your business is already listed and has a score. You can also begin the process by applying for a free DUNS number once you’ve established your business entity and have your EIN. The number is how lenders will determine your business’ credit worthiness (most business credit card and lending companies will ask for your D&B number during the application process).

5. Establish Business Credit History

Check if your trade vendors are reporting your payment history to one of the major reporting companies, like D&B. Just like with your personal credit score, the more vendors that report a good payment history, the better your business credit will be. It’s common that small trade vendors won’t report your payment history to D&B. In this case, you should compile a trade reference sheet with at least three references (include their name, contact information and credit limits) to augment your official business credit report. In addition, you should open a business credit card (in the name of the business) and use it wisely — meaning keep your balance low and always pay on time.

6. Maintain a Good Personal Credit Rating

When you’re a relatively new or small company, creditors are going to be looking at the personal credit of the person who owns the business (or any shareholders with more than 20% ownership of the company). In today’s lending environment, you should expect to be asked to sign a personal guarantee on any kind of loan or credit of the business. This isn’t always mandatory, but it has recently become common practice in the lending industry. As a result, anyone with a 20% or higher share in the company should keep a close eye on his own credit rating.

The most important thing to remember is that you can’t build business credit overnight. Business owners should think about their business credit from day one. Even if you’re self-funded now, you never know what challenges or growth opportunities will develop down the road. Having access to credit can only help you adapt to changing conditions and position yourself for success.

Image courtesy of iStockphotoidrutu

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NELLIE AKALP

Nellie Akalp is the CEO of CorpNet.com, an online legal document filing service, where she helps entrepreneurs incorporate or form an LLCmore

 
 
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DEEBIZ FINANCING WORLD


 Organising, Planning And Controlling Global Marketing Operations


Objectives Of T financing world
Structure Of The Chapter
Agricultural systems: organisation, coordination and performance overview
Global marketing planning
Global marketing control
Formal control methods
Informal control method
Variables influencing control
Chapter Summary
Key Terms
Review Questions
Review Question Answers
Fruit and vegetables marketing – the future
Key statistical data on horticultural marketing
References
Bibliography


The key to good organising, planning and controlling in global marketing is to create a flexible structure or framework which enables organisations to respond to relevant differences in the markets in which they operate, but, at the same time, delineates relationships clearly between parts and personnel of the company. There are no prescriptive solutions to the questions of what is the most appropriate organisational structure, planning framework and form of agricultural control. One thing is clear though -organisations can only work effectively if structure is defined, standards of performance are designed and communicated, and the control framework is fair, clear to all and agreeable. This is not to say that once the structure is defined, it cannot be changed. In fact, modern marketing thought is that formal structure is just not the order of the day. Many informal structures develop within formal frameworks. Many organisations make the mistake of setting a structure first, long before they have decided on a strategy. This is a recipe for disaster as it forces organisations to fit the strategy to the structure, with all the inherent dangers of such rigidity.

Objectives Of The Chapter

The objectives of this chapter are:

· To describe the pattern of international organisational evaluation

· To give an understanding of the different forms of global organisation and their advantages and disadvantages

· To discuss the different types of formal plans for global marketing and examine the merits and demerits of each type

· To briefly describe the different methods of control in global marketing and the variables which can affect the control mechanism.

Structure Of The Chapter

The chapter starts with an examination of the evolution of global organisational development and then briefly describes some of the different types of organisational form and their advantages and disadvantages. The next section considers why planning is necessary in global marketing and reviews standardised, decentralised and interactive planning types. The chapter ends with an overview of the different types of control methods and a case study which serves as an example of global marketing control. The chapter does not consider the detail of control in global operations, this being left to any standard marketing text. As stated earlier, in most developing countries international marketing organisation is relatively rudimentary, so the forms of organisation will be only briefly covered here.

Agricultural systems: organisation, coordination and performance overview

As constantly stated in this text, production and marketing systems, whether they be food commodities, inputs or whatever, are interdependent. As such the activities and economic entities within the network of exchange relationships and any other coordinating mechanisms are complex. Because of this, analysts usually look at the activities of organisation, coordination and performance evaluation within a subsystem or single commodity. But this approach has drawbacks because the distinctions between traditional commodity systems are breaking down. Take for example the manufacturer of ready -to -eat meals. Not only does the manufacturer draw from meat, vegetables and many other raw material suppliers but substitute technologies may begin to “stray” into the traditional raw material supply system, for example, artificial flavourings.

Most agricultural products and commodity systems exhibit widely different organisational characteristics between countries. Different governments have different programmes, horizontal and vertical structural elements can vary, as can terms of access, competitive conditions, parallel marketing channels and the types of contractual and ownership integration.

Coordination in international marketing is complex and vital. For Israeli fresh produce to arrive on a UK’s family table within 48 hours or less is quite remarkable, but a complex operation. Vertical coordination, harmonising all the vested production, marketing, exchange interfaces and value added stages is a challenge. In order to make the process flow smoothly, information is vital as well as an understanding of all definitions and permissible behaviours of the participants. Most failures to vertically coordinate will probably reveal themselves in resource misallocations, technical inefficiencies and other risks. An over-supply of tomatoes, for example, may incur storage costs or waste. One good example of an almost perfectly coordinated system is that of Geest bananas. Not only do the bananas ripen on the voyage over to the UK from the West Indies, but they are specially treated so that they ripen at the exact time when required. In evaluating agricultural performance a large number of indicators and norms are utilised. This-so called “structure, conduct and performance” paradigm is well documented (see Helmberger et al 1981)1. Most work has centered around operational and allocative efficiencies as well as longer term development patterns and the environmental and the economic impact of commodity systems. But the analysis cannot stop there, as agricultural marketing involves marketing, so the quality of marketing sources should also be assessed, and put into quantitative forms.

Transaction costs should also be included. These primarily relate to costs associated with buying, selling and transferring ownership of goods and services, and are very wide ranging. These costs include information, negotiating contracts, the actual costs of transferring goods, services, money and ownership rights, costs of monitoring trade conditions and enforcing trading terms and conditions. Transaction costs tend to get less attention than other costs. Table 1 gives a summary of performance criteria useful in agricultural marketing.

The form of appropriate organisation depends on a number of factors including company goals, size of business, the number of markets operated in, the level of involvement in the market, international experience, the nature of the product, the width and range of the product line, the nature of the marketing task and the risk involved. Many organisational forms in developing countries are relatively unsophisticated. Many are “domestic” based, that is, they may have a small export division within the domestic based operation. Most organisations deal through agents or other merchanting houses which have their own organisation. Flowers and vegetables, exported from Eastern and Southern Africa, are generally sold through agents, auction systems or distributors in the country of destination. Because of this relative lack of sophistication this chapter will concentrate only briefly on the various forms of organisation.

Depending on the factors described above organisational development usually starts with dependence on outsiders, for example horticultural produce is usually handled by overseas agents who have their own exporting organisation or by a local network of services like cool store owners, freight forwarders and so on. As the organisation grows it usually has an overseas subsidiary which reports to it. This is exemplified by Oserian and Sulmac flowers of Kenya, who in turn are part of multinationals. Eventually, the organisation grows in complexity and extent of operations, which then gives rise to an International Division structure, with its own personnel. The next stage of evolution is the development of regional headquarters or regional management centres. Differences between regions are a pressure to create the regional centres. Regional centres can be costly, so they must be developed with care.

Table 13.1 Performance criteria useful in global marketing activities

OPERATIONAL ACTIVITY

ALLOCATIVE EFFICIENCY

LONG TERM DEVELOPMENT/ECONOMIC

MARKETING SERVICE

TRANSACTION COSTS

Production
Extraction yields
Capacity
Utilisation
Unit costs
Input/Output ratios

Opportunity costs
Costs of storage, transport
Prices versus consumer preferences

Profitability
Rates of return
Rates of growth and volume and value
Levels of raw materials, commodity wastage.
Quality
Variety
Employment rates
Innovation
Technological development
Risk analysis
Income distribution
Market access,
Structure.

Transport delivery rates
Order
Grading
Labelling
Supply adjustments
Uniformity to standards
Mix of products
Supply regulating
Timing
Information provision

Personal time,
Travel, Communications
Advertising
Promotion
Market research
Inspection
Services
Property guards
Recovery
Reporting of stollen property
Distribution
Legal
Consultancy
Advocacy
Advertising
Insurance
Transport
Storage
Financial
Credit rating checks
Delayed payment procurement.

As the organisation continues to evolve, the international division may be replaced by a variety of structures like a geographical, product, function or strategic business unit approach. The area organisational form is used by highly orientated organisations with stable products. See figure 13.1.

Figure 13.1 Area organisational structure

The advantages and disadvantages of this form are as follows.

Advantages

– growth of regional groupings
– expertise grouping
– ease of communications
– knowledge of areas

Disadvantages

– suboptimal product and functional expertise allocation
– duplication
– lack of coordination.

A second organisational form is the product organissation structure. These product groups have global marketing responsibility 2 See figure 13.2.

Figure 13.2 Product organisational structure

The advantages and disadvantages of this form are as follows:

Advantages
Disadvantages

– flexibility
– shortage of area knowledge
– can miss marketing opportunities
– difficult to coordinate.

A third organisational form is the functional organisational structure. Here executives on functional areas have global responsibility. See figure 13.3.

The advantages and disadvantages of this form are as follows:

Advantages

– good for firms with narrow, homogeneous product line,
– good where regional variations are not too great

Disadvantages

– may miss market opportunities because of narrow focus.

Strategic Business Units (SBU)

SBUs are defined as a group of products or technologies that serve an identified market and compete with identified competitors. In many ways an SBU is not part of a formal structure but represents a process or system overlay for the purpose of developing a business strategy.

The final organisational form is that called a Matrix organisational structure. See figure 13.4. Matrix organisations are the most sophisticated form of organisation and bring together four competencies -geographic knowledge, product knowledge and know-how, functional competence in such fields as finance, production and marketing, and a knowledge of the customer (figure 13.4) industry and its needs. Management’s task in a matrix organisation is to bring together all the above perspectives and skills to achieve particular objective(s). Matrix structures require a fundamental change in management behaviour, organisational culture and technical systems. One of the important things to remember is that structure must always follow strategy. Too often structures are developed long before a strategy is worked out. This can cause “straitjacketing” and lead to an inflexibility which is both unnecessary and stifling.

It is likely to be quite a while before less developed countries have developed a number of the organisational forms described above. The important thing is to keep an arrangement which allows the company to grow, control and manage its destiny.

Figure 13.3 Functional organisational structure

Global marketing planning

Planning involves where the organisation would like to be and how to get there, which involves goal setting and strategy determination. Planning involves three main activities:

a) Situation analysis – where are we now?
b) Objectives – where do we want to be?
c) Strategy and tactics – how can we best reach our goals?

Planning gives a number of advantages:

· Gives rise to systematic thinking
· Helps coordinate activities
· Helps prepare for exigencies
· Gives activity continuity
· Integrates functions and activities
· Helps in a continuous review of operations.

The planning task depends on the level of involvement in a country. Exporting and licensing give minimum country involvement but joint ventures involve more in-country activity and give a greater degree of integration and control. Wholly owned subsidiaries give the organisation almost total control. Because of the “external uncontrollables” international planning is rather more difficult than domestic planning (see table 13.2). Planning can be standardised, decentralised or interactive.

Figure 13.4 Matrix organisational structure

Standardised plans

These offer a number of advantages:

– Cost savings on limited product range and economies of scale both in production and marketing, for example fertilisers.

– Uniformity of consumer choice across the world.

There are disadvantages:

– Different market characteristics make uniform products inappropriate, for example, fresh milk products.

Environmental obstacles disallow standardisation; for example lack of refrigerated transport in developing countries.

Decentralised plans

Decentralised plans take into account the subtleties of local conditions; however they are usually very costly and resource consuming.

Interactive plans

In this approach headquarters devises branch policy and a strategic framework, and subsidiaries interpret these under local conditions, for example Nestlè. Headquarters coordinates and rationalises advertising, pricing and distribution. Within any of the above approaches plans can be either long or short term. Increasingly planning is becoming fairly routine. Most companies operate “annual operating plans” although these are often “rolled forward” to cover a few years hence.

Table 13.2 Domestic vs international planning

Domestic Planning

International Planning

1.

Single language and nationality

1.

Multilingual/multinational/multicultural factors

2.

Relatively homogeneous market

2.

Fragmented and diverse markets

3.

Data available, usually accurate and collection easy

3.

Data collection a large task requiring significantly higher budgets and personnel allocation

4.

Political factors relatively unimportant

4.

Political factors frequently vital

5.

Relative freedom from government interference

5.

Involvement in national economic plans; government influences business decisions

6.

Individual corporation has little effect on environment

6.

“Gravitational” distortion by large companies

7.

Chauvinism helps

7.

Chauvinism hinders

8.

Relatively stable business environment

8.

Multiple environments, many of which are highly unstable (but may be highly profitable)

9.

Uniform financial climate

9.

Variety of financial climates ranging from over-conservative to wildly inflationary

10

Single currency

10.

Currencies differing in stability and real value

11

Business “rules of the game” mature and understood

11.

Rules diverse, changeable and unclear

12

Management generally accustomed to sharing responsibilities and using financial controls

12.

Management frequently unautonomous and unfamiliar with budgets and controls

Planning concepts

In order to operate any type of plan, three types of information are essential:

a) Knowledge of the market – customers, competitors and government
b) Knowledge of the product – the formal product, its technology and its core benefit
c) Knowledge of the marketing functions.

In many cases LDCs have found it difficult to make real international inroads often because they lack the information required. “Country grouping” is an effective way to plan. Hence countries are grouped according to a number of criteria and treated alike. Such criteria include market size, market accessibility (market or commercial economies), stage of market development, prospects for growth, and promise for future growth and development. Zimbabwe may be a “promising” country for investment, but Somalia may not be “promising”. Other concepts for planning are “competence centres”. The mission of a competence centre is to formulate a global business strategy for a new business. Competence centres are not those developed through “leadership” ability but involve a number of factors like strategic location and skills.

In marketing planning, ultimately, the decision on the type of plan rests entirely on the size of the task, type of task and competence to achieve the task. In exporting flowers, say, to Europe, Zimbabwe would be well advised, with the small quantities involved, to leave the task to those experts in Holland and Germany whose knowledge and competence is far superior. The downside is that some market opportunities may be overlooked.

Global marketing control

Factors like distance, culture, language and practices create barriers to effective control. Yet without control over international operations, the degree to which they have or have not been successful cannot be judged.

Plans are the prerequisite to control, yet these are developed in the midst of uncertain forces both internal and external to the firm. Basically control involves the establishment of standards of performance, measuring performance against standards and correcting deviations from standards and plans. In international marketing the ability to control is disturbed by the distance, culture, political and other factors. Figure 13.5 illustrates a typical plan/control cycle.

Figure 13.5 The planning and control cycle

In well developed international operations headquarters may seek to achieve control over subsidiaries by three types of mechanism – data management mechanisms, merge mechanisms, which shift emphasis from subsidiary to global performance, and conflict resolution mechanisms that resolve conflicts triggered by necessary trade-offs.

The method of export control in many less developed countries takes the form of direct organisation by government. The appendix note at the end of this section describes the types of control imposed.

Formal control methods

Planning and budgeting

Planning and budgeting are the main formal control methods. The budget spells out the objectives and necessary expenditures to achieve these objectives. Control consists of measuring actual sales against expenditures. If there is tolerable variance then no action is usually taken.

Evaluating performance

Performance is evaluated by measuring actual against planned performance. The problem is setting a performance standard. Usually it is based on historical performance with some kind of industry average. Problems of international comparison inevitably occur like how does one plan in an environment where exchange rates fluctuate quite often during the budget period.

Influences on marketing budgets

In preparing a budget or plan, the following factors are important:

a) Market potential – how large, can it be tested?
b) Competition – what is the competitive level?
c) Impact of substitute products – packaging can be substituted in many ways
d) Process – headquarters may impose an “indicative planning” method or guidance.

Other performance measures

Other measures of performance include share of market, image, position or corporate acceptance. Often these are difficult to obtain where data or data collection is difficult.

Informal control method

When staff are transferred from market to market, they often take their standards of performance with them and these can be assessed. Other methods include face-to-face contact and evaluation.

Variables influencing control

A number of factors may influence the control methods. These include:

a) Domestic practices and values of standardisation – these may not be appropriate

b) Communication systems – have a heavy influence on control mechanisms – electronic control measures may not always be available

c) Distance – the greater the distance, the bigger the physical and psychological differences

d) The product – the more technological the product the easier it is to implement uniform standards

e) Environmental differences – the greater the environmental differences the greater the delegation of responsibility and the more limited the control process

f) Environmental stability – the greater the instability in a country the less relevance a standardised measure of performance has

g) Subsidiary performance – the more a subsidiary does, or reports, a non variance, the less likely is there to be headquarters interference

h) Size of international operators – the bigger and greater the specialisation of headquarters staff the more likely will extensive control be applied.

Obviously the ability to control any international operation, whether it be very sophisticated or relatively unsophisticated, the process will break down without adequate face-to-face and/or electronic communications.

Case 13.1 Controlling Export Operations – Malawi

Introduction

The foreign trade of many developing countries is subject to various controls. The instruments of control and the Intensity of application of these Instruments vary from country to country, depending on what happens to be the principal reason for their Institution.

Licensing Is probably the most prevalent instrument of import/export control in developing countries. For reasons of self interest, import licensing is generally more pervasive than export licensing. To a considerable extent, tariffs and procedures and documentation on imports and exports also do play a controlling role.

This brief note concentrates on export licensing in Malawi, the coverage of the licensing and the reasons for its existence.

Export licensing in Malawi

In this country the main legal instrument for the licensing of both export and import trade is the Control of Goods Act (Chapter 18:08 of the Laws of Malawi) and the subsidiary regulations made thereunder. The administration of the Act falls primarily under the jurisdiction of the Ministry of Trade and Industry. However, occasionally and on specific products, the Ministry consults with other Institutions, like the Agricultural Development and Marketing Corporation (ADMARC) and the Ministry Of Agriculture when considering applications for export licences. Furthermore, In the case of tobacco exports, the control is relegated principally to the Tobacco Control Commission. Similarly, the administrative and day-to-day regulation of exports of bulk tea and coffee is largely done by the Trade Associations of those product groups – the Tea Association of Malawi and the Coffee Association of Malawi.

Coverage of export licensing

The products covered in export licensing are fewer than those which are subject to import licensing. Of the products which are listed as licensable under the Control of Goods Act, the commonest are the traditional agricultural export commodities, some of which are amongst the country’s staple foodstuffs. They include items like maize, rice and beans. Since the institution of the Control of Goods Act, the list of licensable Items has been reviewed only very occasionally. The latest review was made in 1988 when items like scrap metals and cement were removed from the list of licensable exports. The list of exports subject to licensing under the above quoted Act and the regulations made under it, is reproduced in the Memorandum for the information of Importers and Exporters. A copy of the latter Memorandum is attached hereto.

Reasons for export licensing

We are living in an imperfect world. Mostly by acts of governments, perfect competition is not allowed to flourish in the world economy. Controls on imports and exports in Malawi were imposed for reasons that the world markets could hardly do certain things which the country would like. But, in a country where aggregate imports have usually been more than aggregate exports, it does not appear obvious that there could be any reason for licensing exports or for controlling export operations.

The following are the reasons for licensing exports and for controlling export operations

a) Food security

For the traditional exports which fall within the group of foodstuffs, the most important reason for licensing Is the consideration to ensure food security The striving for self-sufficiency in food supplies requires not only the promotion and expansion of production but also the maintenance of certain levels of supplies. With regard to the estimates as to what are adequate quantities of the different varieties of produce required by the domestic market, ADMARC plays the central role of advising Government on this. It is for this reason that, on considering applications for permits to export the produce, the Ministry consults with that Corporation. The common practice that has evolved is that, prior to the Ministry’s consideration of the requests for permits, the requests and application forms are referred to ADMARC for the latter’s advice. If ADMARC supports the applications, it endorses the forms with a ‘no objection’ advice.

b) Protection of raw material supplies

A few of the local industries use some of the local produce and items as raw materials. Examples of this are, the dhall industry (using various types of pulses), cooking oil industry (using groundnuts, sun-flower and cotton seeds), and the Malawi Iron and Steel Corporation (MISCOR) (using scrap metals) – although, as pointed out earlier on, the licensing of scrap metal exports was decontrolled.

c) Monitoring

Licensing provides Government with an instrument for monitoring exports.

d) Direction of trade and political considerations

While Government would like to promote exports and hence would like to see no hindrances to export trade, occasionally need arises for controlling and influencing the direction both of imports and exports. The controlling and direction of import and export trade is done for political considerations (c.f. trade with Communist countries), for reasons of tactics and trade policy as they might affect the bargaining position of the country in its negotiations with neighbours and other trading partners.

e) Checking re-exports of strategic goods

A number of goods which are of strategic importance and on which the country spends a lot of foreign exchange could easily be re-exported by some businessmen, leaving the country with shortages of supply of the goods. Such goods include petroleum fuels and fertilizers.

There is, of course, the argument that re-exports could bring in a net inflow of foreign exchange. However, such an advantage on products like petroleum products hardly outweighs the disadvantages of disruption of supply to local users, including productive establishments.

f) Security reasons

This applies to metals and atomic energy materials of Strategic value and used in the production of arms, ammunition and implements of war. The instrument of export licensing in this connection is really for checking the potential rather than for controlling what is obtained in the current situation. The mineral products, metals and energy materials which are listed in the Control of Goods Act as licensable include items like uranium, beryllium, lithium and cobalt.

g) Conservation

For some products, export licensing, to a considerable extent, also assists in checking the wanton depletion of the base resources. The export items involved here include wild animals, wild animal trophies, and crocodile skins.

Operations globally can be evaluated and improved by a global marketing audit. Audits have a wide focus, are independently carried out, are systematic and conducted periodically. To be successful audits have to have objectives, data, sources of data and a time span and reporting format. Audits can cover the environment, strategy, organisation, system, productivity and functions. Unfortunately, as in any attempt to gather global data, all the pitfalls of politics, culture, and language differences arise.

Much of the preceding discussion covers more sophisticated forms of international control, except budgeting which is applicable to all types of exporting or global marketing. As stated earlier, many less developed countries have export controls imposed by governments. The Malawi case which follows gives an example of this.

See appendix 13A for a detailed export control document with reference to Malawi.

Chapter Summary

In every marketing plan there must be provision for organising, implementing and controlling marketing organisations. This is particularly important when marketing globally, due to the many possible pitfalls which can occur, described in the preceding chapters.

Depending on the size of the export or global operations a decision has to be made on the type of organisation, whether it be area, product, function or matrix based; on what type of marketing plan, be it standardised or decentralised and on what method of control to install. Formal methods of control include budgets and informal methods include elements of auditing but this depends to a great extent on environmental differences, distance of the market to the seller, the product and other characteristics, not least of which is the size of the international organisation.

Key Terms

Area organisation

Interactive plan

Product organisation

Decentralised plan

Matrix organisation

Strategic business unit

Functional organisation

Performance evaluation

Strategic plan

Review Questions

1. What are the advantages and disadvantages of area, product, function and matrix based organisational structures in global marketing? Give examples.
2. Describe the factors which have to be considered when deciding on the form of marketing control in international operations.

3. By reference to any source of your choice, identify and describe the different possible forms of marketing control applicable to global operations.

Review Question Answers

1. a) Area organisation

Used by highly marketing oriented organisations with stable products.

Advantages

– growth of regionalgroupings
– expertise grouping
– ease of communications
– knowledge of areas

Disadvantages

– suboptimal product and functional expertise allocation
– duplication
– lack of coordination

Examples include

– Coca Cola, Nestle, Glasco

b) Product organisation

Here product groups have global marketing responsibility.

Advantages

– flexibility

Disadvantages

– shortage of area knowledge
– can miss marketing opportunities
– difficult to coordinate

Examples include;

– tractors, fertilisers

c) Functional organisation

Here executives on functional areas have global responsibility.

Advantages

– good for firms with narrow, homogenous product line
– good where regional variations are not too great

Disadvantages

– may miss market opportunities because of narrow focus

Examples include;

– insurance, financial services

2. Variables influencing control

A number of factors may influence the control methods. These include:

a) Domestic practices and values of standardisation – these may not be appropriate.

b) Communication system – has a heavy influence on control mechanisms –

c) Distance – the greater the distance, the bigger the physical and psychological differences.

d) The product – the more technological the product the easier it is to improve uniform standards.

e) Environmental difference – the greater the environmental differences the greater the delegation of responsibility and the more limited the control process.

f) Environmental stability – the greater the instability in a country the less relevance a standardised measure of performance is valid.

g) Subsidiary performance – the more a subsidiary does, or reports, a non variance the less likely is there to be headquarters interference.

h) Size of international operators – the bigger and greater the specialisation of headquarters staff the more likely will extensive control be applied.

3. Forms of contract

– Budgets ratio analysis
– Standard costings return on Investment/Capital employed
– Market share profit contribution
– Image break even analysis

Exercise 13.1 Comprehensive international marketing strategy4

Xavia, a Sub-Saharan Africa country, enjoys a moderate climate with one rainy season from November to March. Nature has endowed it with a good typography, soils and rivers but it is prone to drought in particularly poor rainy seasons. Typically, it has a commercial farming sector and a small scale farming sector, the latter having farms in the region of 2 hectares in size.

Over the years the country has been building up its horticultural industry. In 1980 it produced some 5,000 tonnes, to some 21,500 tonnes of vegetables, fruits and flowers at present (1992/3). Over the same period, exports have grown from virtually zero to some 12,000 tonnes with a value of X$ 80 million. Most of the exports are sourced from the commercial sector, but a number of schemes are being implemented in the small scale sector to increase the involvement of this large sector of the farming community.

In other countries, South America is serving the North American continent well, with its close proximity and political advantage. Australia has its own well developed industry, as do the Asian tigers, Malaysia, Thailand and South Korea. Japan is difficult to enter. The Middle East offers a distinct market, especially in fresh fruit and vegetables, but transport is a problem, there being only 10 cargo aircraft flights per week, with connections to major destinations.

Produce is mainly sold in the European Union, particularly UK, Holland and Germany, where agents handle most of the business to date.

Elsewhere in Africa, Zambia, Tanzania and Uganda are beginning to get their horticultural production organised and geared for a massive export drive to traditional consumption areas, i.e. the EU.

Massive investment in the country has seen the export potential of Xavia soar rapidly. By the year 2000 it is expected that the export crop availability will be dramatically increased as follows:

Produce

1992/93 Tonnes/annum

2000 Tonnes/annum

Cut flowers

3,985

8,200

Fresh produce (vegetables)

7,650

16,000

Citrus

8,750

160,000

Top fruit (mangoes, avocadoes, etc)

450

10,500

Soft fruit

50

500

Processed Products

550

50,000

Total

21,435

245,200

This increase in exports would place a huge burden on internal and external transport, especially air freight which would need to double in uplift capacity, and on the road/rail requirement. It would also need huge investment in pack-houses, storage (cool) and credit.

Task

Given the information above and the following, devise a comprehensive export strategy for the Xavia horticultural industry for 1994 – 1996. Clearly show Government Policy requirements, the targeted markets, the marketing mix (product, price, promotion, distribution), documentation and sources of finance.

Fruit and vegetables marketing – the future

Market predictions and future

Introduction The analysis of the individual products will have to take the following factors into consideration:

a) Trends in consumer demand

Whilst it is dangerous to over-generalise about the European market, trends and tastes differ in the developed markets of Europe. The growth is in:

· different versions of established products, i.e. a popular product but supplied during the off-season e.g. asparagus, summer fruits (N.B. there is no need to educate the consumer and can increase all sales of the product by being available through the year) i.e. Improved versions of existing varieties, e.g. cherry tomatoes, non-astringent persimmons, apples and bananas etc.

· certain tropical fruits such as lychees, mangosteen.

· small, very high priced markets for excellent taste and quality, e.g. tree-ripe fruit, baby vegetables, herbs.

· luxury items such as floriculture crops.

In addition there is the beginnings of a movement for better flavoured product and crops produced by ‘self-sustainable’ agriculture.

The more important aspects are the consumers’ and the retailers’ increased concern about health and hygiene with implications for pesticides and packhouse facilities.

b) The effects of Eastern Europe integration into the western trading system

Eastern Europe will have two influences. In some products it will supply the Western European markets with horticultural crops and in particular in processed products. It will also, in the longer term, open out new markets and expand demand, provided that their economies can develop. Eastern European consumers demand the mainstream products i.e. bananas, oranges, kiwi fruit and to a lesser extent, pineapples. In the medium term only East Germans are expected to influence total European demand significantly.

c) Changes in the post harvest technology and air freight competitiveness

Every year the technology of sea-freight improves, making possible cheaper transport for an ever wider range of crops. We are expecting to see a greater proportion of mangoes, pawpaw and even sweetcorn being sea-freighted over the next 5 years. Air freight is often the single most important cost. Southern and Eastern Africa air freight rates are higher than potential competitors in West Africa and the Caribbean.

Individual products

NB “Regional supply” means Xavia, Kenya, Tanzania, Zambia and Malawi and Zimbabwe.

The projections below have been based on our knowledge of the total European market; the future growth potential of each product is likely to have competition from other suppliers.

Fine Beans:. The total EU import market has remained static at about 32,000 tonnes but Kenya has succeeded in increasing its share of the market from about 20% in 1985 to nearly 40% in 1989. Kenya is perceived as the only supplier of extra fine beans. Buyers feel over-reliant on Kenya and are looking for new suppliers. Potential threats to Kenya are Uganda, Tanzania and Nigeria. The market for fine and extra fine beans will grow, particularly in the UK supermarket trade which is currently very strong on legumes.

Prediction for 1995

Total Market

Regional Supply

Value

C&F Price

35,000 tonnes

20,000 tonnes

$50,000,000

$2,50/kg

Mange -tout: Continued growth in the market in the UK, France, with potential in Belgium and to a lesser extent Switzerland from its current estimated size in Western Europe of 6,000 tonnes and value of $27 million of which perhaps 1,900 tonnes comes from the region. Keener competition from Nigeria will inhibit the region fully exploiting the growth in this product demand.

Prediction for 1995

Total Market

Regional Supply

Value

C&F Price

12,000 tonnes

2,000 tonnes

$8,400,000

$3,00/kg

Baby corn: This is mainly a British product with total sales in Western Europe guessed at less than 1,000 tonnes. The product is expected to transfer slowly onto the continent, probably starting in France. We expect that producers will be reluctant to grow it as it is difficult to see how it can be grown profitably.

Prediction for 1995

Total Market

Regional Supply

Value

C&F Price

2,000 tonnes

800 tonnes

$8,400,000

$4,25/kg

Chillies, okra and other Asian vegetables: Small specialized trade, mainly to the UK. Although some growth of sales to indigenous populations are at higher prices, the demand from immigrant populations is expected to decline as the newer generations lose commitment to traditional meals. Total market is currently about 9,000 tonnes and worth around $25 million, of which 70% comes from the region.

Prediction for 1995

Total Market

Regional Supply

Value

C&F Price

7,500 tonnes

6,000 tonnes

$15,000,000

$2,00/kg

Asparagus: A major opportunity. A very high priced and seasonal product which is increasingly popular (15% growth per year)and with additional sales potential in Eastern Europe. It is a crop quite capable of production being manipulated to harvest all year round (AYR). European imports currently account for about 5,000 tonnes with a value of $30 million. Unit gross wholesale prices are expected to fall from about $6/kg to $5.50/kg.

Prediction for 1995

Total Market

Regional Supply

Value

C&F Price

8,750 tonnes

1,000 tonnes

$4,400,000

$4,40/kg

Avocadoes: The major growth phase has now finished. Expect Kenya’s market share to fall from about 2000 tonnes or 2%, unless sea freight to France can be successfully carried out.

Prediction for 1995

Total Market

Regional Supply

Value

C&F Price

100,000 tonnes

1,800 tonnes

$ 3,600,000

$2,00/kg

Pineapples: As an air freight product this region cannot compete with West Africa. The major market is for sea freighted product, with growth potential in Southern Europe, i.e. Spain, Italy and Greece and maybe Eastern Europe. Tanzania is developing sea freight to Italy with an aimed 3000 tonnes per annum. Kenya will maintain her exports at 3000 tonnes. Sea freighting pineapples is not a highly profitable export business with narrow margins and the need for economies of scale. The Western European market stands at about 250,000 tonnes and will expand at about 5% per annum.

Prediction for 1995

Total Market

Regional Supply

Value

C&F Price

275,000 tonnes

6,000 tonnes

$ 4,800,000

$ 0,80/kg

Passion fruit: Small European market of some 1000 tonnes. Some growth in France and Scandinavia -but two problems. Firstly, wrinkled skin when ripe is viewed as unappetising by consumers, and secondly, good shelf life means it could be sea freighted if a volume market develops. Ugandian production can create its own market niche.

Prediction for 1995

Total Market

Regional Supply

Value

C&F Price

1,500 tonnes

1,000 tonnes

$ 3,500,000

$ 3,50/kg

Mangoes: Mangoes will decline as an air freighted product to Western Europe. The Middle East market, however, offers good potential and an expanding market which Kenya is already accessing. With increased production sales will increase.

Prediction for 1995

Total Market

ME Market

Regional Supply

Value

C&F Price

40,000 tonnes

25,000 tonnes

25,000 tonnes

$ 3,500,000

$ 3,50/kg

Paw paw: Growing demand in Europe at 50% p.a., but only for small solo types. Should have good skins and strong coloured flesh. Sea freighted product from the Caribbean will be important. Sales potential in the Middle East, which is currently importing from S.E. Asia.

Prediction for 1995

Total Market

ME Market

Regional Supply

Value

C&F Price

15,000 tonnes

8,000 tonnes

1,000 tonnes

$2,250,000

$2,25/kg

Strawberries: Major market for off-season supplies. Kenya’s production continues to expand and new projects expected in Zimbabwe and Uganda, while the major off-season supplier Israel is in decline. Sales already being made in the Middle East.

Prediction for 1995

Total Market

ME Market

Regional Supply

Value

C&F Price

10,000 tonnes

4,000 tonnes

1,500 tonnes

$6,750,000

$4,50/kg

Citrus: Around 9000 tonnes of navel oranges are imported from Zimbabwe into the EU, mainly via Belgium (89%). Oranges are almost a commodity. Although volume sales are increasing (12% p.a.) unit prices have been falling by about 4.5% per annum. Sales in Eastern Europe expected to expand but the commodity will remain very price competitive.

Prediction for 1995

EC Market for citrus

EC Market for navels

Regional Supply

Value

C&F Price

4,170,000 tonnes

550,000 tonnes.

15,500 tonnes

$12,000,000

$0,80/kg

Other crops worth considering:

Legumes such as runner beans, flat beans, even peas and broad beans for off- season supply. Specialist crops such as salad onions, herbs, baby vegetables.

Any off-season production of temperate fruits, i.e. raspberries, blackberries, currants, nectarines, cherries, persimmons (non – astringent types).

Specialist tropical fruits such as lychees, mangosteen and apple bananas. These crops could generate a further $10,000,000 p.a.

Current crops with little potential:

It is difficult to see how crops like courgettes (except baby sizes), aubergines, melons and sweet corn will cover current air freight rates.

Roses: A product with excellent potential. Expect to see rose projects in production in Kenya at 20 ha, Zimbabwe 80 ha, Zambia 7 ha and Malawi 3 ha. Imports are increasing by 20% p.a. Sales will increase very significantly but prices will fall to 25 cents a stem with production on around 110 ha.

Prediction for 1995

Dutch Market

Regional Supply

Value

C&F Price

3,000,000,000 stems

132,000,000 stems

$ 26,600,000

20 cents/stem

Carnations: A product with good potential. Expect to see diversification to standard carnations and increased exports maintaining 7% p.a. growth. Prices will fall to 12 cents a stem.

Prediction for 1995

EC Market

Regional Supply

Value

C&F Price

25,000

6,750 or, 24,200.000.000 stems

$25,000,000

10 cents/stem

Chrysanthemums: The relative high weight of chrysanthemums will not make this product especially profitable, and the growth will be less spectacular than the other products. Prices are predicted at 30 cents a stem.

Prediction for 1995

Dutch Market

Regional Supply

Value

C&F Price

1,250,000,000 stems

12,000,000 stems

$2,880,000

24 cents a stem

Other cut-flower crops: Sales of all other flowers are expanding throughout Europe and expected to continue to increase as consumers become more sophisticated in their flower buying and keen for variety from the main items. Gladioli will be discontinued as their prices cannot cover the air freight. Crops like alstromerias, asters, solidasters, proteas will expand. Field grown flowers like Ammi Majus will move from Zimbabwe to new production sites within the region. Statice will continue to be a major crop in Kenya. Other flower sales may amount to another $60,000,000 p.a.

Canned products: sales of canned pineapples will remain at $16 million, with perhaps a further $2 million in other sales.

Total projected exports

Table 13.7 sets out the total projected exports. This anticipates an increase in the value of exports of 10% per annum for fresh produce and flowers. Total exports could be over $250,000,000.

Table 13.7 Projected size of regional exports in 1995

 

Value in US($’000s)

% of total value

Produce

124.5

56%

Cut flowers

115.5

44%

Sub total

240.0

 

Canned products

18.0

 
 

258.0

100%

Processed products

The next section briefly outlines the opportunities for processed horticultural products. Canned products

Generally the sales of canned products have been in decline across Europe as consumers turn towards better methods of food preservation. The canned pineapples operations in Kenya are not located for optimum pineapple production and are competing against the dominant producers in South East Asia. Reports are coming in that canned French beans operations have started and look likely to be successful.

Dried vegetables

The dominant product is dried onions but the sale of all dried vegetables is in decline as soup consumption is Western Europe is falling. There is at least one dehydrated vegetable operation in Kenya. Its location is viewed as excellent because of the potential for all the year round supply. Quality is reported to be good. Within international trade, increased sales are found amongst the more minor products such as dried green beans, aubergines, courgettes and chives, and premium prices are paid for good quality, well coloured products like red peppers and green cabbage. Micro-biological standards are becoming more stringent amongst buyers and the German market is particularly fussy about sulphur levels.

Frozen vegetables

Home freezers and microwave ovens have resulted in increased sales in frozen vegetable products. It is unknown why no major frozen vegetable factory has been established in the developing world. Climate and infrastructure would be suitable both in Zimbabwe and Kenya.

Semi-prepared products

With increased sales of all types of convenience foods, some exporters developed semi-prepared vegetable products, i.e. peeled and diced etc. Some are prepacked for immediate microwave use. Another example is the sale of peeled and sliced pineapple sections treated with a natural bactericide (eg. citric acid and prepacked). Both products are high value and can carry air freight rates.

Fruit juices

Increased consumption of fruit juices is a world wide trend. Passion fruit plants have been considered in Kenya and in Zimbabwe. Passion fruit prices are notoriously unpredictable. They peak at over $5,000 per tonne and drop to $2,000 per tonne. Very often projects fail because they are budgeted on high prices rather than using a low working average in the initial study. Secondly, international trade in fruit juices is dominated by very few trading companies, which places the grower/processor in a very weak negotiating position.

Spices and oleoresins

Currently, Malawi is a respected supplier of the extremely hot bird’s eye chilli peppers. Unfortunately, the market is relatively small and the product very low priced for an extremely labour intensive crop. The potential exists for growing other varieties of chillies. The demand for paprika oleoresin (the market for the extracted colour component for dried paprika oleoresin has been expanding with the increased demand for natural colorants in developed countries). The world market stands at about 500 tonnes and is worth approximately $30 million. A successful plant has been operating in Ethiopia for the last 20 years. Paprika peppers are an ideal small farmers group. Oleoresin operation could be suitable for Zimbabwe. The world price for vanilla has continued to increase. This crop grows successfully in Uganda. The new rapid curing technology is producing a product of the highest standard and sales are being made to the world’s major buyers.

Dried Flowers

The European market for dried flowers is currently worth $70 million a year and is currently expanding at 15% per annum. 25% of the products are imported from outside the EU. Zimbabwe, with her skills in floriculture and the crop drying technology used for tobacco, should be able to develop a portion of this trade for herself.

Marketing channels

The typical flow patterns for horticultural exports into the EU from the region are set out below. There will be differences between countries and individual growers.

FRESH PRODUCE

The majority of the produce imported will be routed by importers and end up for sale in supermarkets, possibly via a pre-packer.

The vast majority of Zimbabwean flowers and over half Kenya’s are sold via Dutch importers who put about 90% of their imports through the Auction markets. Most of this material (about 70%) is exported out of Holland to other European markets, but particularly Germany, where it is sold by Wholesalers to Florists. Sulmac, of Kenya, own their own marketing company in Germany (a joint venture with Florimex) which facilitates direct sales into this important market.

Germany is the largest market in Europe. The major wholesale markets are Hamburg, Dusseldorf, Berlin and Cologne. The larger importers will import themselves from outside the EU. Agents working on behalf of the non-EU exporter are often used to provide market feed back.

After Germany, France is the major import market, and a market expanding at 15% p.a. Specialist importers supply the wholesale trade, which is mainly centred around the Rungis market in Paris.

In the UK, sales are increasing by over 20% which reflects the sudden interest of supermarkets in cut flowers. Sales are made to them by major importing companies, many of whom will make up bouquets, using flower mixes sourced from different countries according to price.

FLOWERS

Key statistical data on horticultural marketing

Table 13.8 Average percentage growth in horticultural exports from developing countries

Year

Fruits

Vegetables

1965-75

6.5%

11.4%

1975-85

9.0%

6.3%

Table 13.9 Developing countries share of the world trade in fruits & vegetables

Year

Fruits

Vegetables

1961-63

38%

24%

1975-77

36%

25%

1983-85

42%

28%

Table 13.10 Developing countries share of world trade & growth

Commodity

%
Share

% Annual growth
1965-75

% Annual growth
1975-85

Fresh Fruit

40

5.5

6.9

Bananas

94

5.1

6.7

Citrus

30

9.1

6.6

Tropical

60

11.3

11.7

Tree Nuts

70

3.2

1.8

Processed Fruit

40

8.1

11.2

Non-Tropical Fruit

50

21.9

24.6

Tropical Juices

60

14.9

17.8

Other Tropical Fruit

87

8.6

5.1

Tree Nuts

40

9.2

7.7

Fresh Vegetables

23

7.1

7.5

Roots

24

9.0

6.0

Misc. Vegetables

25

6.7

7.9

Processed Vegetables

32

15.4

7.8

Roots

3

2.4

3.0

Pulse

49

10.0

7.0

Misc. Vegetables

27

23.1

8.4

Table 13.11 Annual average growth in horticultural imports by major market

Country

1965 – 75

1975 – 85

United States

8.4%

15.0%

Western Europe

11.0%

4.8%

Japan

18.3%

10.6%

Table 13.12 Projected % annual growth in horticultural imports by major market to 2000

Country

Fruits1

Vegetables1

Flowers2

United States

1.34 – 2.09

0.83 – 4.50

9.0

Western Europe

1.01 -2.67

0.39 – 2.97

4.0

Japan

2.14-5.19

0.81 – 3.66

5.0

Table 13.13 Projected value of horticultural import market by 2010 in US$ (million)

Country

Horticultural

Floricultural

Current Value

% Growth

Future Value

Current Value

% Growth

Future Value

United States

5.500

2.20

7.920

225

9.00

630

Western Europe

16.500

1.76

22.300

1.800

4.00

3.240

Japan

4.600

2.95

7.360

100

5.00

200

Islam, N., Horticultural Exports Policy Issues, IFPRI. 1990.
2 Doesburg, J.V., Channels of Flower Distribution, Int. Floriculture, Vol 1, Nos. 4.

Table 13.14 Value of world trade of horticultural products in US$ (000’s)

 

1975 – 77

1983 – 85

Fresh Fruit

5,550

8,400

Processed Fruit

3,650

6,750

Sub Total

9,140

15,195

Roots

887

879

Misc Vegetables

2,114

3,339

Processed Veg

2,964

5.103

Sub Total

6,073

9,600

Totals

15,213

24,795

Table 13.15 Value of international trade in cut flowers in US$ (000’s)

Country

Value

Germany

800

United States

225

France

200

United Kingdom

170

Holland

115

Japan

100

Switzerland

125

Others (Est.)

465

Total

2,200

Table 13.16 Value & share of horticultural exports of developing countries by region, 1983 – 1985

 

Horticultural Exp US$ billion

% Share trade

%Growth 1975 – 85

Developing Market Economy

8.0

32.0

8.6

Africa

0.6

2.6

-0.1

Latin America

3.9

15.6

10.8

Near East

1.8

7.3

7.2

Far East

1.6

6.6

10.2

Table 13.17 Exporters and importers

Import market

Exporting regions: Horticultural products

Exporting regions: Cut flowers

Western Europe

Israel
N Africa, Morocco, Egypt 
West Indies & Caribbean
Central America
South America
West Africa
South Africa
East Africa 
Eastern Europe

Israel 
Colombia
Kenya
Zimbabwe
Turkey

United States

Mexico
Costa Rica, Honduras
Chile, Peru
China, Taiwan
Caribbean Basin

Colombia
Netherlands
Israel

Japan

United States
Taiwan
China
Thailand
New Zealand
Australia

Netherlands
Thailand
Taiwan

Table 13.18 Leading horticultural nations in developing countries

Country

Horticultural exports
US$ (Million)
1983-85

% Share Trade

%Growth
1965-75

% Growth
1975-85

1. Brazil

1,140

4.44

19.1

21.30

2. Turkey

911

3.55

12.9

10.60

3. China

552

2.22

10.7

7.10

4. Taiwan

544

2.12

6.1

6.40

5. Mexico

510

1.99

11.1

5.60

6. Philippines

358

1.39

18.0

8.50

7. Chile

344

1.34

13.8

19.10

8. Thailand

296

1.19

20.3

16.50

9. Morocco

291

1.14

7.3

0.10

10. Argentina

273

1.07

13.3

1.40

11. Honduras

258

1.01

12.60

12. Costa Rica

243

0.95

17.7

5.70

13. India

240

0.94

7.8

4.73

14. Hong Kong

189

0.74

10.0

17.40

25. Cote d’Ivoire

84

0.33

12.8

3.10

26. Kenya

76

0.30

13.6

9.00

Table 13.19 Leading exporters of cut flowers

 

Country

US$ (Million)
1987

1

Netherlands

1,500

2

Colombia

173

3

Israel

108

4

Italy

90

5

Spain

65

6

Kenya

30

7

France

18

8

Mexico

10

9

Peru

10

10

Morocco

5

11

United States

5

12

Turkey

3

13

Equador

3

14

Zimbabwe

2

15

Costa Rica

2

SOCIAL ENTERPRISE FUND


SOCIAL ENTERPRISE FUND

FSSI is committed to provide social investments as a contribution to sustaining local economies and eco-systems. We took it as a responsibility to facilitate social investments that lead to triple bottom lines in terms of economic viability, ecological soundness and social equity. We nurture partnerships that help empower the poor to become productive members of society and as stewards of our natural resources.

We support social enterprises that undertake development, production, processing and marketing of commodities by the marginalized social sectors. We believe that growing social enterprises requires the support of both state and non-state stakeholders. It also entails capacity building through awareness building and education. And so we support alliances among social enterprises and civil society, as well as with LGUs, government agencies, and the rest of the business sector that are inclined to working with social enterprises.

The social enterprise investment fund is aimed at primary cooperatives, cooperative federations, community-based organizations, alliances/network of civil society organizations, private enterprises, and community financial institutions. We also support initiatives that are part of local convergences on the following:

–  local economic development partnership;
–  cluster of municipalities sharing an ecosystem;
–  integrated area development cluster;
–  sector- or industry-based formations;
–  marginalized community, such as a community of indigenous people or upland dwellers.

Our social enterprise investment fund consists of project loans, asset management products, equity contribution and grants.

Project Criteria. Triple Bottom Line or the interface of the economic, social and environmental serves as FSSI’s conceptual guide in project development, appraisal, approval, monitoring and evaluation. We support partnerships that promote the Triple Bottom Line through social enterprise development, community governance and advocacy.

General eligibilities

1.Cooperatives and cooperative federations,
2.SMEs registered as stock corporation,
3.SMEs registered as partnership or single proprietorship,
4.Community Financial Institutions, that includes cooperatives, cooperative federations, cooperative banks, NGOs, and rural banks which are providing financial services in marginalized communities,
5.Non-Government Organizations (NGOs), and,
6.Peoples’ Organizations (POs).

An application should submit proof of legal, juridical personality based on Philippine laws, describe their track record, and documents pertaining to their financial condition.

Application We accept applications throughout the year. If you are interested to avail a product of Social Enterprise Fund, you may download your application here. Applications may be sent by mail or e-mail to FSSI.

Appraisal The assigned Development Services Unit staff of FSSI conducts the project appraisal. The process consists of desk review, field visit, and meeting with the proponent. Additional information may be requested during the appraisal period.

Approval The appraisal report is reviewed by FSSI’s Development Services Unit en banc and presented to pertinent bodies for review and final approval. After which, notice of approval is sent to proponent and documentation of contract starts.

Social Enterprise Fund Products

FSSI believes in providing opportunities to communities to improve people’s means of living in a sustainable manner and in scaling-up social enterprises.

Eligible organizations:

a. Cooperatives;

b. Cooperative federations;

c. SMEs registered either as stock corporation, partnership or single proprietorship;

d. Community Financial Institutions, that includes cooperatives, cooperative federations, cooperative banks, NGOs, and rural banks which are providing financial services in marginalized communities; e. Non-Government Organizations; and,

f. People’s Organizations. Loans are provided for a specific business proposal or business activity. The general terms are classified as either term loan or credit line.

Term loan – a type of loan released in lump sum or in tranches and payable in fixed number of equal instalments on principal plus interest.

Credit line -a type of loan arrangement wherein a borrower can draw from a maximum amount of credit at any time during the validity period. The amount of credit drawn is payable in fixed number of instalment(s). Loan interest rate varies based on type of loan and is generally set lower than most commercial rates.

Loans Products

 

 

Enterprise Loan – is for acquisition of additional capital assets and for increasing working capital of an enterprise engaged in commodity production, processing and marketing. Loan amount is up to Php 20M. Maturity is 1 year to 5 years.

 

 

Start-up Enterprise Loan– is intended to support up-scaling of a newly established enterprise that promises to contribute in improving participation of target social sector in a local value chain. Loan amount is up to Php3M. Loan maturity is up to 5 years.

 

Bridge Financing – is a short-term loan for emergency financing requirement of enterprises. Loan amount is up to P500,000 and maturity per drawdown is up to 1 year.

 

 

Business Development Services (BDS) Loan – is a soft loan to help finance enterprise investments other than capital assets acquisition such as for research and development, patenting, market development, organizational development, skills and competency enhancement.

 

CFI Commodity Production Loan – is a loan extended to CFIs for the purpose of extending loans to individual borrowers engaged in production, processing and trading of agricultural and fishery products. Maximum loan amount is Php 30M. Maturity is 1 year to 3 years.

 


DEEBIZ FINANCING WORLD


DEE BIZ FINANCE WORLD

computer


COMPUTER APPRECIATION

 

WHAT IS A COMPUTER?
 
Computer is a machine that makes work easier, a lay man said. Though he is not far from the definition of it. Expert’s as a programmable electronics device capable of accepting data in a prescribed form through input device and processes the row data through the central processing and produce the reform through the output device.
            Computer has three component parts which are interdependent. That is, without this parts combining together it is incomplete. They are the keyboard, central processing unit also known as the system unit and the monitor or display unit.
 
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COMPONENT PART OF THE COMPUTER
 
1.                        keyboard: This is an input device use for sending/inputting data or information into the computer. It is very similar to the typing keys of the typewriter. It is divided into different areas as follows:-
1.1                    Typing keys: It is also known as typewriter keys. This is the alphabetical area (A-Z) used or alphabetic data(s)
1.2                    Numeric keys: It is used for inputting numbers.
1.3                    Functional keys: These are series of keys (F1-F12) that have their usage depending on a particular application.
1.4                    Cursor keys: These are keys that aid the movement of the cursor, they include arrow keys (←↑→↓), Page Up, Page Down, Home, End, Delete, Insert.
1.5                    Modify keys: This includes Ctrl, Alt, Shift, they are also called because they depend on other keys to carry out their functions.
1.6                    Indicator area: Keyboard also has a status indicator area. This area has three lights that display status (on or off). They are Num Lock, Scroll Lock, Cap Lock. This three keys toggle there respective mode on or off when they are pressed.
Num lock: Toggles the key of the numeric keypad between cursor movement and numeric entry.
Caps lock: toggles the letter keys between lower case and upper case.
 
Keyboard Indicator

 

Scroll lock: Toggle between two ways of using the cursor keys.

 

 
           
           
 
 

 

 
 
 
 
 

2.                        System unit: it is also known as central processing unit. It refines row data into tangible form. Hence it is said to be the heart of the computer. It receives data from the keyboard and gives out data through the monitor. There are three main unseen elements involved in the performance of this duty, namely- the main memory, the arithmetic logic unit.
3.                        The main memory: It is also known as the internal storage devices. This holds program to be executed and the associated data. Its of two types ROM and RAM.
Rom (read only memory): can only read from, neither can the contents be tempered with. It holds information permanently.
Ram (random access memory): This section holds programmes, instruction and data being processed and stored intermediate results of processed data awaiting transfer to the output device or storage device.
3.                        Control units: this device is responsible for controlling and co-ordinating all other devices. The controlling and coordinating is done by encoding and decoding i.e. interpreting and implementing. It does the inputting of data, processing the data and outputting the data.
5.            Arithmetic logical unit (ALU): This consist of two units, The Arithmetic Unit and Logical Unit. The Arithmetic Unit function such as addition, subtraction, multiplication, and division.
6.            The logical unit: Performs logical operations such as or, not, and, e.t.c.
7.            Monitor: it can also be called the visual display unit or the screen. It is an output device responsible for displaying any information after being processed. It you with the visuals of your work.
 
HISTORY OF COMPUTER
 
Man has tried to manipulate figures in all kinds of ways since 17th century. The invention of modern day computer actually took place in 1946, by two Americans, pro Eckett and marcualey in the University of Pennsylvania. Before these people came up with this computer there have been cases where people like John V. Atanasoff, Clifford and Bery attempted to build a computer in 1942, called A.B.C though it did not receive any attention. In 1944, another group came together to complete Mark 1 computer incorporation with Howard University U.S.A, another Mark 1 has 760K electric connecting by 500 miles of wires, 300 relays and it is housed in a whole building.
            In 1946, two Americans, pro Eckett and marcualey of University of Pennsylvania invested the computer called ENLAC (Electronic Numerical Integrator and Calculator). After studying ABC; it contained 18,000 vacuum tubes, 80,000 resistors and capacitors, and weighs 30 tons. It has an area of 15,000sq fit. it uses much electricity that dims in Philadelphia region when it is switched on and it is faster than Mark 1. It runs for 9 years and now on exhibition at usylvan University.
            In 1949, John Von Newman improved on the ENIAC and called it EDVAC (Electronics District Automatic Computer). It uses the concept at storage programmes, which meant the computer needs on rewiring like the ENIAC.
            In 1950, the inventors of ENIAC improve on the machines and called it UNIVAC (Universal Automatic Calculator). At the stage of development, the working of the machines are based on tubes and valves, therefore it has so many disadvantage, some of which are large storage spaces for the computer, high cost, generation of intensive heat, and very low speed. Dating from last 1960s, the use of integrated circuit was supplied to computer and it therefore brought a substantial reduction in size, cost, and heat. By mid 70s the modern day computer using high languages involving very large scale integrated circuit and with component in hundreds of small clips have been invented.
            Since the invention of modern computers, the machine and greatly being improved upon it terms of size, efficiency, speed of operation and storage capacity.
 
GENERATIONS OF COMPUTER
Just like human generations, computers too have been divided into different group of generations.
FIRST GENERATION (1945-59): The computers of this period where machines, which have tubes and value switching devices. They input data using a punched card and output was on paper or on a magnetic tape. It marked the beginning or programming and programming language consisting of zeros and ones (0s & 1s). They feature as low speed, low memory, high failure rate, high cost & very large size e.g. ENIAC.
SECOND GENERATION (1960-65): This computer uses transistor instead of tubes, these transistors were smaller, faster and more reliable and produced less heat. They use magnetic tape instead of punched card, for storage, input and output. It marked the beginning of the use of high level languages (FORTRAN) a specific programming language. Cobolfo business e.g. DECPDP-1 minicomputer.
THIRD GENERATION (1966-75): This marked the introduction of IBM 300 computer. Integrated circuit (IC) was used with transistors. It marked the beginning of keyboard input and visual display unit of output. The circuit board became smaller and contained more switches now known as chips. This generation witnessed rapid growth, increased processing speed, increased accuracy, low price, less heat and reduced size.
FORTH GENERATION (1975-90): It saw the arrival of microcomputers. The use of the very large scale integrated circuit (IC) was introduced, so also were the development and the use of microprocessor. Input and output devices were improved upon and many languages were developed to solve business problems. E.g. IBM, Apple, Commodore etc. it witnessed smaller CPU, faster CPU, and low cost. These marked the computer age.
FIFTH GENERATION (1990-TILL DATE): The PC’s at the generation are being developed in Japan, USA and Europe; they are expected to process knowledge rather than data. With the arrival of Pentium and its advancement, the signs for future PC are rather being felt. They are expected to diagnose, hypothesis and make inferences, great improvement in computer technology, improves speed and storage capacities.
 
TYPES OF COMPUTERS
 
1)      DIGITAL COMPUTER: These are computers that understand the string of 0 & 1 digital are commonly in business environment i.e. bank.
2)      ANALOGUE COMPUTER: These are machines that are used for data collection and they are base on analogue signal. Use for war, games, to focus weather.
3)      HYBRID COMPUTER: It has  the function of both the analogue and the digital computer e.g. house manager.
 
CLASSES OF COMPUTER
There are four classes of computer which include:-
a)      Micro Computer.
b)      Mini Computer.
c)      Mainframe Computer
d)     Super Computer
 
 
 
a)      MICRO COMPUTER: this is the forth generations of PC’s, manufactured in the 70s. they are smaller and cheaper (meaning smaller in size). They are also referred to as PC (personal computer) or work station. The liked of the PC’s are laptop, palmtop, hand held/pocket size pc.
b)      MINI COMPUTER: It is physically larger than the micro computer,it was develop for the use of the military and was used before the arrival of the micro computers. Today, mini PC’s are being used in an organization where large amount of data are processed, they can serve a number ranging up to 40,000 users. It is very expensive most modern armies have mini computers which are used on the battle field to process large amount of data’s received from satellite e.g. Hp1000, DG900, PDP11 and PD8-/E.
c)      MAINFRAME COMPUTERS: It processes vast amount of datas. IBM is a major supplier. They are very large and have to be housed in a special room whose temperature and humidity are low. It is very expensive and is avoidable mostly by multinational companies and government parastatal. It processes a very large amount data in seconds and respond to thousand of users simultaneously.
d)     SUPER COMPUTERS: It processes large gigantic data in the quickest possible time and very expensive to buy. They are commonly used by spaces center worldwide.
 
COMPUTERIZATION
Computerization is the act of working with a computer system. There are three elements that are involved. We have the hardware, software and peoples ware. These elements compliment each other.
 
HARDWARE
This is the physical element of the computer. They are physical because we can see and touch them. they are divided into input device, output device, and storage device.
  1. INPUT DEVICE: this is the means by which data are sent into the computer through the keyboard, mouse, joy stick e.t.c. therefore, before data can be processed it must be read from an output and then store in the main memory of the computer. This data must be properly supplied to give tangible results, Hence in computer language we say garbage in garbage out (GIGO).
 
SOMETYPES OF INPUT DEVICES
a)      MOUSE: this is the most recent development it’s the type of input devices that allows the user to move the cursor on the screen to perform a specific function by moving the “Hand Hold Device” on a flat surface called the mat mouse, it is attached to the computer by a cable that transmit’s movement over a flat surface.
The mouse has a bottom that can be clicked to signal the computer in which the selection be pointed to. The process of pressing down the mouse is called “clicking”. This can be done in three ways Right Clicking, Left Clicking, Double Clicking.
b)      WORKLATE: it is also known as digitizer pad, it is attached to the computer through a cable. The work slate is sensitized and when the user draws on it, the image also appears on the display unit. It is basically used for graphic designing.
c)      SCANNER: It is a machine use for transferring pictures, images, etc into the computer. When an image or picture is scanned it appears to the display unit exactly as it is.
d)     JOYSTICK: This is another input device used for playing games. When connected to the system unit, it can be used to play all kind of games
e)      LIGHT PEN: This is inform of a pen and can be used on the screen, whenever you write or draw on the display screen, it appears inside, it has a cable connected to the system unit.
f)       KEYBOARD: It is also an input device. (read detail, in component of system unit)
2.                                          OUTPUT DEVICE: The Output of a computer system depends on the users name and application. Computer users are confronted with all kind of assorted computer output systems which range from graphic design, text etc.
 
SOME TYPES OF OUTPUT DEVICE.
 
 
 
a)      DISPLAY UNITS: It is also called monitor. It is used for displaying the data inputted. A well designed screen is adjustable so that it can be lifted and swived for convenience purposes. Some screens are single coloured(monochrome), and others in colour forms (VGA adapters), SVGA, etc. it is of various sizes ranging from 12 inches, 14 inches, 17 inches, 21 inches, 24 inches etc. As data’s are entered from the keyboard each characters are displayed on the screen which allows the user to make immediate correction.
b)      PRINTER: This produces hard copy of an information on a paper, unlike the monitor that produces a soft copy. The printer differs base on size and use to produce variety’s of work. Some are commonly known printers are dos matrix, Desk jet, LaserJet, Line printer. Etc.
 
DOS MATRIX PRINTER: It is a printer which printing quality is in dot. It is noisy and spends much time in printing e.g. Epson LQ & FX printers.
LINE PRINTERS: It prints out in line on the paper e.g. HP Deskjet, HP Officejet.
MIN HEAVY DUTY: it prints out in full page or job at a time. It prints in 3 seconds e.g. HP Laserjet 4M plus, Canno Laser 1100, etc.
3.                              STORAGE DEVICE: Apart from the main memory we also have we also have an auxiliary storage device that act as a backup. That is , it assist the main memory in storing information that are not presently required. i.e. disks, video cd’s, etc they can store information for a very long period time.
a)      DISK:  They are used for recording with the micro computers. The amount of information they can hold depends on the sizes, density or type. i.e. floppy disk, CD, Hard Disk.
              i.      FLOPPY DISK: It is a round magnetically coated plastic disk inside a protective jacket. They are two sizes 5.25 or 3.5 inches and have different storage capacity’s. the 5.25 inches floppy disk is inside a hard plastic case.
 
PART OF A DISKETTE
 
PROTECTIVE CASE: This keeps dirty, dust and other harmful material from touching the delicate surface of the diskette.
LABEL: This is where you can write on the disk.
DISKETTE HUB: The round hole in the middle of the diskette where the disk drive mechanism actually touches the disk to make it spin.
READWRITE OPENING: This is where the computer get or put information off or into a diskette.
MEDIA: This is the surface of the diskette that is shiny and looks kind of reddish or brownish. This is the actual place where the information reads/writes from/to.
WRITE PROJECT NOTCH: This helps you prevent accidental damage to a diskette.
WRITE PROJECT TAB: A small piece of silver in the box that your diskette came with and also serves as the lock.
 
HANDLING OF A DISKETTE
 
1.      A diskette should not be folded or bent.
2.      The exposed area should not be touched.
3.      Diskette should be returned to the file jacket after use.
4.      Diskette should be inserted carefully into the drive.
5.      Do not place the diskette in a hot environment or near magnetic objects.
 
ii    COMPACT DISK (CD): A non magnetic optional disk used range amount of information. A CD can store 600mb of information, equivalent to over 1700 double density floppy disk.
iii      HARD DISK: This referred to the hard disk drive that stores data/information and not the part that records or reads from it.
 
COMPUTER BUTTON
 
POWER BUTTON: This button turns your computer on or off.
TURBO BUTTON: This button toggles between off and on. If ON increase the speed, if OFFreduces it.
RESET BUTTON: This button restarts your system if there is a system failure.
KEYLOCK BUTTON: This button helps your computer with the system key. Thereby prevent others from using it.
 
COMPUTER LIGHT
 
They are up to 5 light in the CPU.
POWER INDICATORS: Comes on when you switch on the system.
TURBO: Comes on when the turbo button has been put on.
ADD (HARD DISK DRIVE): Comes on when the computer is reading from hard disk or copying information to a hard disk.
ADD (FLOPPY DISK DRIVE): This is found on the floppy disk drive comes up when computer is reading or writing information from/to the floppy disk.
DIGITAL SPEED: This displays a digital number which represents speed at which your computer works.
 
SOFTWARE
 
They are set of computer programmes that operates and perform specific task. This programmes are detailed step by step instruction that tells a computer how to carry out a specific task. They are written in programming languages such as basic, Pascal, etc. It is usually distributed in one or more diskettes. There are two types of software which are.
  1. Operating System: This manages most of your computer activities including the allocation of computer resources, maintenance of files and running of application software. As a resource manager, the operating system (OS) controls the flows of information through the computer. E.g. data accepting by the keyboard, seen on the display or sent to the printer is under the control of the operating system. As file manager the operating system is sued to name, save, retrieve, and maintain the program and data file you create on the computer. (a file is a collection of related records e.g. letter).
It is also a vital link between the computer hardware and the application software. There are various types of operating system e.g. Ms DOS, Windows, Novel, Unit, Macintosh etc. (note: Novel and Unit are basically network programmes).
  1. Application Software: It is designed to help accomplish a certain type of task like typing letters, calculating, designing, etc. example are Word Processing, Database Management, and Spreadsheet.
 
PEOPLE WARE
 
This refers to the interface between the hardware and the software. Basically, those operating the computer are known as people ware. They complete the computerizing system. A computer might be ready with its software, someone need to operate it. The computer world recognizes these three independent parts before it is fully put to use. Although much have not been said about the people ware.
 
WHY DO WE COMPUTERRIZE
The main reasons why organization and individual decide to use computers are as follows:-
  1. Computers are very faster in carrying out it operations.
  2. Computers has very large capacity, where large numbers of data can be stored in its memory for future reference.
  3. The overall cost for computerization is very low compared to manual processing cost. i.e. consider a company with 10,000 employee, computer makes it easy to reach them on time.
  4. It assist in decision making, that is , it delivers information in timely manner. E.g. employing, recruitment, promotion etc.
  5. It accommodates growth, that is, computer enables some organization to move forward thereby compete with other firms.
  6. computer improves overall qualities of life, that is, it assist in improving various forms of life. E.g games etc.
 
VIRUS AND ANTIVIRUS
 
Virus can be defined as a piece of rebellious software which puts itself inside another programme and duplicate itself by spreading from memory to storage and even into diskette. This affect the well functioning of other programs and the program may become malfunctions or inaccessible. They produce variety of symptoms in the system. Some even multiply without much change. They can damage files and hard disk. There are various types of virus which include file infector andTrojan horse.
  1. File Infector: A file infector virus adds code to the file that runs program. When the program is running the virus spread to other program. This virus is very effective and can damage files and program e.g. anti com viruses. This set of virus can oly be removed by using an antivirus programme from a clean disk.
  2. Trojan Horse: These are the most destructive viruses and are difficult to recognize once they infected file or disk they may not be removed again. One thing about this virus is that they are distinguished as legitimate programs.
 
HOW TO PREVENT AGAINST VIRUS
Virus can be prevented through the following ways:-
  1. Install anti virus software’s on your system that will automatically detect virus when virus infected disk is inserted.
  2. Turn the system essential files to read only. Files like command.com, config.sys and auto exe.bat and programmes executable files.
  3. Rightly protect your disk if allowed scan it first before using it.
  4. When a virus is discovered stop work immediately and cleanse the virus from such disk then boot the system again.
  5. Make sure the computer environment is always clean and free from dust.
  6. Don’t eat anything that will attract insect and throw it into the computer system.
  7. Always be current with latest antivirus and have a copy on your computer.
 
ANTIVIRUS
No matter how dangerous and destructive a virus can be, there is antivirus program to clean such virus. Antivirus are program written to prevent, cleanse and attach virus infected file or disk. There are many antivirus programme, they include central processing antivirus (CPAV), Microsoft antivirus (MAV), f piol antivirus, doctor Solomon antivirus (toolkit), windows 95 antivirus, Norton antivirus (NNAV), windows 97,98 and 2000 antivirus.
EXAMPLE OF VIRUS
 
VIRUS NAME                                  TYPE FILES                                    NFECTED
AID                                                         TROJAN                                             COM
DEMON                                                 TROJAN                                             COM
LEPROSY                                              TROJAN                                             COM
RECOVERY 382                                    TROJAN                                             COM
AIRCOP                                                  BOOT                                     BOOT SECTOR
BLOODY                                                BOOT                                     BOOT SECTOR
DISK KILLER 2                                      BOOT                                     BOOT SECTOR
HAND HONG                                         BOOT                                     BOOT SECTOR
AMOEBA                                                FILE                                                   COM
CEMENTERY                                          FILE                                                  COM
DADA                                                      FILE                                                  COM
TERRO                                                     FILE                                                  COM
 
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Science & Technology


What is Science & Technology Studies?

Baby and computerIn light of the importance of science and technology (S&T) in the world today, there is a need for scholarly work on its social dimensions. The Department of Science & Technology Studies is dedicated to research and teaching about scientific knowledge and technology in its social context. In their research, faculty members examine S&T both in contemporary societies and through historical investigations. The goal is to build a body of theory and empirical findings about:

    • The social processes through which scientific and technical knowledge—whether packaged into texts, people, machines, images, or other forms—is created, evaluated, challenged, spread, transformed, and fitted into social relations.
    • The ways people use, reconfigure, and contest scientific knowledge and technology.
  • The normative issues entangled in scientific and technological developments.
  • The place of science and technology in the modern world.
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