Value vs glamor


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Value vs glamor

  1. 1. Market researchEnvironmental scanningEnvironmental scanning can be defined as ‘the study and interpretation of the political,economic, social and technological events and trends which influence a business, anindustry or even a total market’. The factors which need to be considered forenvironmental scanning are events, trends, issues and expectations of the differentinterest groups. The PEST analysis of coca cola company is as under:PEST ANALYSISThe PEST analysis examines changes in a marketplace caused by Political, Economical, Socialand Technological factors.1. Political changes: political changes from one party to another in control- for examplethe rise in private healthcare and privatizations under Conservative governments.1.2 Political Analysis for Coca-ColaNon-alcoholic beverages fall within the food category under the FDA. The governmentplays a role within the operation of manufacturing these products in terms of regulations.There are potential fines set by the government on companies if they do not meet astandard of laws.The following are some of the factors that could cause Coca-Colacompanys actual results to differ materially from the expected results described in theirunderlying companys forward statement:- Changes in laws and regulations, including changes in accounting standards, taxation requirements, (including tax rate changes, new tax laws and revised tax law interpretations) and environmental laws in domestic or foreign jurisdictions.
  2. 2. Changes in the non-alcoholic business environment. These include, without limitation, competitive product and pricing pressures and their ability to gain or maintain share of sales in the global market as a result of action by competitors. Political conditions, especially in international markets, including civil unrest, government changes and restrictions on the ability to transfer capital across borders. Their ability to penetrate developing and emerging markets, which also depends on economic and political conditions, and how well they are able to acquire or form strategic business alliances with local bottlers and make necessary infrastructure enhancements to production facilities, distribution networks, sales equipment and technology.2. Economic change: for example a recession creating increased activity at the lower endsof product price ranges. Rate of interest rises depressing business and causing redundancies andlower spending levels.2.1 Economic Analysis for Coca-ColaLast year the U.S. economy was strong and nearly every part of it was growing and doing well.However, things changed. Most economists loosely define a recession as two consecutivequarters of contraction, or negative GDP growth. On Monday 26, the government officiallydeclared that the U.S. has been in recession since March. However, because of aggressive actionby the Federal Reserve and Congress it will be short and mild. The economy will return tosustained, positive growth in the first half of 2002. This affected the operations of coca colacompany in china.3.Social change: involves changing attitudes and lifestyles. The increasing number ofwomen going out to work, for example, led to the need for time-saving products for the home.3.1 Social Analysis for Coca-ColaMany chines citizens are practicing healthier lifestyles. This has affected the non-alcoholicbeverage industry in that many are switching to bottled water and diet colas instead of beer andother alcoholic beverages. Also, time management has increased and is at approximately 43% ofall households. The need for bottled water and other more convenient and healthy products are inimportant in the average day-to-day life. Consumers from the ages of 37 to 55 are alsoincreasingly concerned with nutrition. There is a large population of the age range known as thebaby boomers. Since many are reaching an older age in life they are becoming more concerned
  3. 3. with increasing their longevity. This will continue to affect the non-alcoholic beverage industryby increasing the demand overall and in the healthier beverages.4. Technological change - creates opportunities for new products and productimprovements and of course new marketing techniques- the Internet, e-commerce.4.1 Technological Analysis for Coca-ColaSome factors that cause companys actual results to differ materially from the expected results areas follows: The effectiveness of companys advertising, marketing and promotional programs. The new technology of internet and television which use special effects for advertising through media. They make some products look attractive. This helps in selling of the products. This advertising makes the product attractive. This technology is being used in media to sell their products. Introduction of cans and plastic bottles have increased sales for Coca-Cola as these are easier to carry and you can bin them once they are used. As the technology is getting advanced there has been introduction of new machineries all the time. Due to introduction of this machineries the production of the Coca-Cola company has increased tremendously then it was few years ago CCE has six factories in Britain which use the most stat-of the-art drinks technology to ensure top product quality and speedy delivery. Europes largest soft drinks factory was opened by CCE in Wakefield, Yorkshire in 1990. The Wakefield factory has the technology to produce cans of Coca-Cola faster than bullets from a machine gun.Sources of Marketing InformationA variety of sources can be used to obtain the information necessary to fuela marketing information system. These information sources can be groupedinto two main categories: secondary data and primary data. Secondary datawere previously collected for another purpose. Primary data are generatedfor a specific purpose when the information is not available elsewhere.The secondarydata may provide the information necessary to make a decision, and even if they don’t,they may be useful in developing the collection process for primary data. Figure 1illustrates the possible sources of information for marketing decisions.
  4. 4. Figure 1: information sourcesRegulation of the Republic of China on Import and Export DutiesMar 30,2007 (Promulgated by the State Council on March 7, 1985, amended andpromulgated by the State Council on September 12, 1987, amended and promulgated fora second time on March 18, 1992 according to the Decision of the State Council onAmending the Regulations of the Peoples Republic of China on Import and ExportDuties)GENERAL PROVISIONSArticle 1These Regulations are formulated in accordance with the relevant provisions of CustomsLaw of the Peoples Republic of China with a view to implementing the policy of opening
  5. 5. to the outside world and promoting the development of foreign economic relations andforeign trade and the national economy.Article 2All goods permitted to be imported into or exported out of the Peoples Republic of Chinashall, unless otherwise provided for by the State, be subject to the levy of Customs importor export duties according to the Customs Import and Export Tariff of the PeoplesRepublic of China hereinafter referred to as Customs Import and Export Tariff). If goodsoriginating within Chinese territory are purchased from outside Chinese territory forimport, Customs shall levy import duty in accordance with the Customs Import andExport Tariff. Customs Import and Export Tariff is an integral part of these Regulations.Article 3The Tariff Commission established by the State Council is charged with theresponsibility to formulate or amend the guideline, policies and principles for Regulationson Import and Export Duties and Customs Import and Export Tariff, to examine the draftof amendments of Tariff, to set temporary tariff rates and to examine and approve partialadjustment of tariff rates. The composition of the State Council Customs TariffCommission shall be prescribed by the State Council.Article 4Both the consignee of imports and the consignor of exports are persons obligated to payCustoms duties. The agent entrusted to go through the related procedures shall abide byall the provisions of these Regulations pertaining to his client.Article 5The measures on the levy of or exemption from import or export duties on incoming andoutgoing passengers luggage and articles and on personal postal matters shall beformulated by the State Council Customs Tariff Commission.
  6. 6. APPLICATION OF TARIFF RATESArticle 6Customs import duty shall be calculated in accordance with general tariff rates andpreferential tariff rates. The general tariff rate shall apply to an import originating in acountry or region with which the Peoples Republic of China has not yet signed anagreement containing reciprocal preferential tariff clauses. If imports originating in thePeoples Republic of China are subject to discriminatory rates of duty or other types ofdiscriminatory treatment by any country or region, Customs may impose a specialCustoms duty on imports originating in the said country or region. The State CouncilCustoms Tariff Commission shall determine and promulgate for implementation detailsof the types of goods subject to the special Customs duty, the duty rates and the timeperiod when such levies commence and finish.Article 7Import and export commodities shall be classified under appropriate tax item numbers inaccordance with the category provisions of the Customs Import and Export Tariff andshall be subject to tax levies pursuant to relevant tax rates.Article 8Customs duties shall be levied on imports or exports at the tariff rates obtaining on thedate of declaration for imports or exports by the consignee or consignor or his agent.Imports which are permitted by the Customs to be declared priorto their entry shall besubject to the levy of import duties at the tariff rates obtaining on the date of entry of themeans of transport involved.Article 9If an import or export is subject to a supplementary duty payment or refund of duty, therate of duty on the date of the goods original import or export declaration shall apply.The specific measures shall be formulated by the Customs General Administration.
  7. 7. VERIFICATION OF THE DUTY-PAYING VALUEArticle 10The duty-paying value of the goods to be imported shall be assessed according to theCIF price based on the normal transaction price verified by the Customs. The CIF priceshall cover the price of the goods, packing charges, freight, insurance premiums and otherservice charges incurred prior to the unloading of the goods at the port of entry in theCustoms territory of the Peoples Republic of China.Article 11If unable through examination to determine the CIF price of an import, the Customs shallassess its duty-paying value based successively on the following prices: (1) thetransaction price of an item equivalent or similar to and from the same country or regionof origin as the said import: (2) the transaction price on the international market of anitem equivalent or similar to the said import; (3) the wholesale price on the domesticmarket of an item equivalent or similar to the said import, minus import duty, otherimport-linked taxes or duty and the post-import transport, storage and business costs andafter-profit price; (4) a price valued by the Customs using other reasonable methods.Article 12The duty-paying value of mechanic appliances, means of transport or any other goods,which were shipped out of the Customs territory for the purpose of repairs with thedeclaration for exports made in advance and shipped back into the Customs territorywithin the time limit set by the Customs shall be identical with the normal charges on therepairs and the cost of materials and spare parts used for the repairs, both of which shallbe subject to the examination and approval by the Customs.Article 13The duty-paying value of the goods which were shipped out of the Customs territory forprocessing with the declaration for exports made to the Customs in advance and shippedback into the Customs territory within the time limit set by the Customs shall be identical
  8. 8. with the difference between the CIF price of the processed goods at the time of entry andthe CIF price of the original goods shipped out of the Customs territory or of the identicalor similar goods at the time of entry. The specific measures shall be formulated by theCustoms General Administration governing the varieties of the aforesaid goods and theircontrol.Article 14The duty-paying value of the goods to be imported on lease (including those for rent)shall be assessed according to the rental for the goods, which is subject to theexamination and approval by the Customs.Article 15The duty-paying value of the goods to be imported shall include fees for patents,trademarks, copyright, proprietary technology, computer software, information, etc.,which are incurred in relation to the said imports and paid to foreign parties in order thatthe goods may be manufactured, used, published or distributed domestically.Article 16The duty-paying value of the goods to be exported for sale shall be identical with theFOB price of the goods with the export duties deducted. The above FOB price shall besubject to the examination and approval by the Customs. If unable to determine the FOBprice of an export, the Customs shall assess its duty-paying value.Article 17The consignee and consignor of imports or exports or their agents shall accurately declarethe transaction price of the said imports and exports. If the declared transaction price issignificantly lower or higher than the transaction price of equivalent or similar goods, theCustoms shall determine the duty-paying value pursuant to the provisions of theseRegulations.
  9. 9. Article 18The consignee of imports or consignor of exports or their agents shall, at the time ofsubmitting the declaration for imports or exports, produce to the Customs the invoicesindicating the real price, freight, insurance premiums and other expenses incurred for thegoods (with manufactures invoices, if any), packing lists and other relevant papers forthe examination and approval by the Customs. All the above invoices and papers shall besigned and stamped by the consignee or consignor or his agent to affirm theirauthenticity. Article 19The consignee or consignor or his agent shall produce the invoices and other papers forthe Customs to assess the duty-paying value of the goods to be imported or exported. Ifnecessary, the Customs may examine the relevant contracts, accounts, bills and otherpapers of both the buyers and the sellers or make any further investigation. The Customsmay also check the above documents and papers even after the levy of Customs dutieson, and the release of the goods in question.Article 20In case the consignee and consignor or his agent fail to produce the relevant documentsand papers stipulated in Article 18 for examination by the Customs at the time ofsubmitting the declaration for imports or exports, Customs duties shall be leviedaccording to the duty-paying value assessed by the Customs. No adjustment shall bemade of the Customs duties already collected even though the relevant documents andpapers are subsequently produced to the Customs.Article 21In case the CIF price of imports, the FOB price of exports, the rental for imported orexported goods, the charges on repairs or the cost of materials and spare parts arecomputed in foreign currencies, they shall be converted into RMB at the price betweenthe buying and selling prices quoted by the State administrative organ in charge ofexchange control in Schedule of Exchange Rates of RMB Against Foreign Currencies onthe date of issuance of the duty memorandum. In case the exchange rate of any foreign
  10. 10. currency is not available in the Schedule, the customs may apply the exchange rate set bythe above administrative organ.PAYMENT REFUND AND RECOVERY OF CUSTOMS DUTIESArticle 22The consignee or consignor or his agent shall pay Customs duties at the designated bankwithin seven days (excluding Sundays and national holidays) after the date of issuance ofthe duty memorandum by the Customs. In case of any payment in arrears, the Customsmay order the fulfillment of the payment according to law, and 1$ of the total amount ofthe overdue Customs duties shall be charged as a fee on delayed payment per day fromthe eighth day to the date of fulfillment of the payment.Article 23The Customs shall levy Customs duties and charge fees on delayed payment of RMBunless otherwise provided for by the Customs General Administration.Article 24The Customs shall issue receipts for any Customs duties collected or any fees on delayedpayment charged. The form of their receipt shall be prescribed by the Customs GeneralAdministration.Article 25Under any of the following circumstances, the consignee or the consignor or his agentmay, within one year from the date of payment of Customs duties, claim for a refundfrom the Customs by submitting to the Customs a written which his claim shall not beentertained: (1) any amount of Customs duties is overpaid as a result of the wrongassessment by the Customs; (2) any duty paid on goods imported which are exemptedfrom the examination by the Customs are discovered to be short-landed with theverification by the Customs; (3) any duty paid on goods to exported are not shipped forsome reasons and declared to the Customs as shut-out cargo with the verification by theCustoms. Any delayed application for a refund shall not be accepted.
  11. 11. Article 26In case Customs duties are short-levied or not levied on imports or exports, the Customsmay, within one year after the date of payment of Customs duties or the date of release ofthe goods, recover the amount of Customs duties short-levied or not levied. If anyimports or exports are short-levied or not levied owing to an act in violation of theCustoms regulations by the consignee or consignor or his agent, the Customs mayrecover from him the Customs duties short-levied or not levied within three years.REDUCTION OF EXEMPTION OF CUSTOMS DUTIES AND ROCEDURES OFEXAMINATION AND APPROVALArticle 27Goods falling in any following categories may be exempted from the levy of Customsduties upon verification by the Customs: (1) goods of a consignment on which Customsduties are estimated to be below RMB ten Yuan; (2) advertising matters and samples,which are of no commercial value; (3) goods and materials, which are rendered gratis byinternational organizations or foreign governments; (4) fuels, stores, beverages andprovisions for use en route loaded on any means of transport, which is in transit acrossthe frontier. In case any goods exported are shipped back into the Customs territory forsome reason, the original consignor or his agent shall submit a declaration for entry withthe original documents and papers attached and verified by the Customs, import dutiesmay be exempted. However, the export duties already collected shall not be refunded.Imports returned abroad for any reason shall be declared to the Customs at the place ofexit by the original consignee or agent and the original import documentation shall bepresented. If the Customs examination verifies the details, export duties may beexempted, but import duties are not refunded.Article 28The Customs may, in consideration of any of the following circumstances, grantreduction or exemption of Customs duties on any goods falling in any of the followingcategories: (1) goods damaged, destroyed or lost en route to the Customs territory or at
  12. 12. the time of unloading; (2) goods damaged, destroyed or lost as a result force majeureafter unloading but prior to release; (3) goods discovered already leaky, damaged orrotten at the time of the examination by the Customs, provided the cause is proved to beother than improper storage.Article 29Customs duties shall be reduced or exempted on goods and article in accordance with therelevant provisions of the international treaties, to which the Peoples Republic of Chinais a contracting or acceding party.Article 30The levy of Customs duties may be exempted temporarily on samples, exhibits,engineering equipment, vehicles and vessels for construction, instruments and tools forinstallation, cinematographic and television apparatus, containers of goods, and theatricalcostumes and paraphernalia, which are permitted by the Customs to be temporarilyshipped into or out of the Customs territory and reshipped out of or into the Customsterritory within six months, provided a deposit of an amount equivalent to that of theCustoms duties or a guarantee is submitted to the Customs by the consignee or consignor.The time limit of six months stipulated in the preceding paragraph maybe extended at thediscretion of the Customs. If, subject to examination and approval by the Customs, anextension of the import period is granted for temporarily imported engineeringequipment, vehicles and vessels for construction, etc, the Customs shall, during theextension period, levy import duty pursuant to the period of usage of the respectivegoods.Article 31Raw materials, supplementary materials, parts, components, accessories and packingmaterials imported for processing and assembling finished products for foreign businesspersons or for manufacturing products for export shall be exempt from import dutiespursuant to the actual amount of goods processed for export; or import duties may be
  13. 13. levied up-front on import materials and parts and subsequently refunded pursuant to theactual amount of goods processed for export.Article 32Measures on the levy or exemption of Customs duties on free replacement goods shall beseparately formulated by the Customs General Administration.Article 33Customs duties shall be reduced or exempted in accordance with the provisions set out inthe relevant regulations on goods imported into or exported out of the designated areas,such as special economic zones or the designated enterprises, such as Chinese- foreignequity joint ventures, Chinese-foreign contractual joint ventures and sole enterprises withforeign investment, and also on goods falling in the category of preferential treatment bylaws and regulations.Article 34In case the consignee or consignor or his agent applies for ad hoc reduction or exemptionof Customs duties on imports or exports, a written application specifying the reasontherein and necessary documentary evidence shall be submitted to the Customs forexamination prior to the importation or exportation of the goods. The Customs shalltransmit the application verified to the Customs General Administration, which may, inaccordance with the relevant regulations formulated by the State Council, examine andapprove it with or without consulting with the Ministry of Finance.Article 35If the Customs, in relation to imports granted preferential duty reductions or exemptionspursuant to the provisions of the State laws or regulations, examines and approves, withinthe supervisory and control period, an application for the sale or assignment of suchgoods or their use for other purposes, the value of the goods shall be reappraised inaccordance with the period of usage and supplementary payments of import duties made.
  14. 14. The supervisory and control limit of years shall be formulated separately by the CustomsGeneral Administration.PROCEDURE FOR APPEALArticle 36If a person obliged to pay Customs duties disagrees with a decision by the Customs inrelation to such matters as duty payment, duty reduction, supplementary payment or therefund of duty paid on imports and exports, the party concerned shall first pay the amountdetermined by the Customs, and then, within 30 days of the Customs issuing a receipt ofpayment, lodged with the Customs a written application for reconsideration. TheCustoms shall not accept an appeal lodge after the expiry of the prescribed time limit.Article 37The Customs shall make its decision on the appeal within 15 days as of the date of receiptof the appeal. Should the person obligated to pay Customs duties refuse to accept thedecision, he may appeal to the Customs General Administration for reconsiderationwithin 15 days as of the date of receipt of the notice of decision.Article 38The Customs General Administration shall make its decision on the appeal within 30days after the date of receipt of the appeal and accordingly notify the person obligated topay Customs duties of the decision. Should the person obligated to pay Customs dutiesfind the decision made by the Customs General Administration unacceptable, he maybring the case to the peoples court within 15 days as of the date of receipt of the saiddecision.PENALATIESArticle 39Any act in violation of these Regulations which constitutes the crime of smuggling, or ofthe regulations on the Customs supervision and control shall be dealt with in accordance
  15. 15. with the provisions of Customs Law of the Peoples Republic of China, Regulations forImposing Administrative Penalties under the Customs Law of the Peoples Republic ofChina and other relevant laws or regulations.SUPPLEMENTARY PROVISIONSArticle 40The Customs shall, in accordance with relevant regulations, reward any individual or unitwho provides any information or assistance which leads to the uncovering of any evasionor avoidance of Customs duties in violation of these Regulations. The identity of theindividuals or units concerned shall be kept confidential.Article 41The Customs General Administration shall be responsible for the interpretation of theseRegulations. Article 42 These Regulations shall come into force as of April 1, 1992. Freeimport. The following items can be imported into the country if visiting for less than 6months.• Cigarettes .The amount of cigarettes increases to up to 600 if staying more than 6months.• Alcohol Beverages – 2 Bottles. The alcohol limit doubles to 4 bottles if staying over 6months.• Reasonable amount of perfume.• Guns and Ammunition• Explosives and Explosive Materials• Radio Receivers/Transmitters• Knives and similar dangerous cutting weapons Restricted• Amongst the items requiring permission to enter China include TV’S, Computers,washing machine and other electrical goods.
  16. 16. A unified certification management system will be established so that domestic andforeign commodities will be quarantined and inspected according to the same standard,said Li Changjiang, head of the State General Administration for Quality Supervision,Inspection and Quarantine.