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Sample Research Paper on Business Law Assignment #6

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Sample Research Paper on Business Law Assignment #6

Introduction

                 Online advertising is a form of marketing that delivers promotional product messages to clients. Online advertising consists of display advertising, social media and mobile marketing. It results to large volume of sales, improved reputation, increased profits and attraction of new customers.  However, this form of marketing presents drawbacks when performing its transactions.

Costs of Advertising Online

                 Customers ignore ads that are posted online. This occurs when clients reject clicking the online advertisements, as they are used to television and radio commercials and advertisement in different magazines.  (Tuten, 2008, p. 4). Online marketing provide several option range, where organizations make advertisements for their products, offering a wide range of websites. This makes it difficult to lower choices of websites that attract potential sales and clients. Additionally, marketing online is expensive, and banner ads attract costs depending on readership and amount of traffic the blog or website receives (Tuten, 2008, p. 4). Finally, there is click scam cost, where ad deceit through click results. This can occur when placement of ad depends on the click number, and competitor parties can inflate the click rate and drive the ad costs up (Tuten, 2008, p. 5).

Benefits of Advertising on the Internet

                 Online marketing presents lower marketing cost and easier targeting ways, because it captures wide range of users, thus reducing the operational costs of making advertisements that requires covering several people from different geographical areas. It is Measurable, since it makes it possible to gather accurate data depending on number of times and hits the advert gained. It also helps in knowing whether customers got to reach the advert, and whether the entire activity resulted to sales (Tuten, 2008, p. 6). Online marketing is versatile, as it is very interactive and applies several methods to reach to the client, such as audio messages and online videos, which keep the users engaged constantly. Advertising online has advantage on speed, because adverts are posted faster on internet platforms, in comparison to offline advertisement. This makes it easier for customers to access and saves time (Tuten, 2008, p. 7).

Benefits of taking in a Partner from a Foreign Nation

           Business growth is an advantage of taking in a foreign partner to do businesses with. It means that the business scope will extended to another country, thus doing business with the other country makes it to grow, which is an added advantage to both the business and the partners (McCahery, 2004, p. 284). There is risk diversity because conducting business both in home country and in overseas diversifies risks found in businesses. If market value of home country is low, partners could rely on revenue that it generates from other foreign country through assistance from foreign associates. There are Improved margins in taking in foreign partners because it allows basis for making exportations. Exporting the products to the country increases sales, lowers seasonal market variations and reduces price pressure (McCahery, 2004, p .284). There is less Competition, as task of selling products is easier when there are reduced competitors in market. In addition, there is a benefit of earlier payments, due to economic currency that is involved; earlier payments may be made to both parties, thus sustaining the working capital (McCahery, 2004, p.284).

 

 

Risks involved taking in a Partner from a Foreign Nation

            Legal framework is a risk involved while taking in a partner from a foreign nation as different countries have different laws set on how to conduct business, and can be a good idea for the partners to consider the legal frameworks of both countries before doing business (McCahery, 2004, p. 285). There can be ineffective communication because of information misconceptions while communicating via telephone or email between the partners. Business partners need to create meetings to discuss and develop rapport concerning their business. Insufficient time in long distance trading makes the business partners to lack enough time to spend together, and get to understand and know the characters of their partners well (McCahery, 2004, p. 286).

Problems Faced While Manufacturing in Foreign Location

                  Loss of Control over business may result when manufacturing in a foreign location. Foreign manufactures may lose control over production of the products to native manufactures, resulting to losses in business (Anderson, 2004, p. 210). Business links between contractors and manufactures can be difficult. This may be because of trying to comply with the cultures of the native suppliers or business partners, understanding their ways of conducting business and adhering to them. Misuse or theft of materials is a limitation. Manufacturing in a foreign location may present a possible misuse or theft of raw materials and monetary resources by native business partners. This may result due to lack of proper knowledge and expectations, confidentiality and governance of the foreign location (Anderson, 2004, p. 211). Exchange rate flux can be a challenge, as due to currency instabilities over time that may negatively affect production of products.  This may result to instabilities in business, and could cause improper flow of operational capital. The manufactures in the foreign location should choose an expert financial consultant, who would regularly give advice on the currency fluctuations, the best business protection and security (Anderson, 2004, p. 213).

Conclusion

                  Online advertising is necessary for firms that manufacture variety of items, and have enough resources to protect its company profile and clients from dangers of online marketing. Likewise, taking in foreign partners to do business with has risks that range from personal to business risks, as well as manufacturing from a foreign location needs clear legal framework to both business partners.

 

 

 

 

 

 

 

 

 

 

References

Anderson, D. M. (2004). Build-to-order & mass customization: The ultimate supply chain management and lean manufacturing strategy for low-cost on-demand production without forecasts or inventory. Cambria, Calif: CIM Press.

McCahery, J. (2004). The governance of close corporations and partnerships: US and European perspectives. Oxford: Oxford Univ. Press.

Rush, J. & Ottley, M. (2006). Business law. London: Thomson.

Tuten, T. L. (2008). Advertising 2.0: Social media marketing in a Web 2.0 world. Westport, Conn: Praeger.

 

 

 

 

 

 

 

 

 

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