Worldwide Car Prices

In most European countries and North American, car prices will be lower than many Asian countries especially some famous brand auto. Normally, it is not consistent with the  price of the raw materials and labour cost because in China and many other Asian countries, labour cost is much lower than European and North American countries. It is  related to the agreement of WTO, many developed countries has signed agreement about decreasing and eliminating taxes to encourage car manufacture and world trade. So the price of cars in those countries is lower than many Asian countries.

According to Jalopnik, Malaysia has become the world second highest car price which followed by Singapore. The executives of consumer Federation of Malaysia said it was the time to reduce the price especially government has reduced the subsidies in petrol. However, Malaysia government will not consider to reduce the taxes because the price of petrol and management is reasonable. Also, it is difficult to solve the problem immediately because it may lead to the high unemployment in the society and cause more problems in other areas.Of course, by considering  the pollution from using cars , it is also not a good idea to encourage the car consumption. I think China will have potential to become the lowest car price country in the future but there are also many problems. China is used to be the second part of food chain so it is difficult to be totally independent from other countries. To achieve there goals, China need to pay more attention on the quality of their products because China always makes many problems at that stage.

Financial Statement Fraud

According to the class pre instructors, it refers to some companies that make financial statement fraud like Enron, Worldcom, Tyco and Adelphia. They were all known as the international companies and the leader of their area. During the past years, financial statement fraud is increasing dramatically by many reasons. I think the existence of it have many unavoidable reasons so the responsibility cannot all taken by the company.

Financial statement fraud is harmful in many ways.it will undermines the reliability, quality, transparency, and integrity of the financial reporting process. it will also diminishes the confidence of capital markets and make it less efficient. Overall, it will bring adverse effects on nation’s economic growth and prosperity. However, sometimes it is also related to the government police and some company have heavy tax rates so they can only take this approach. When monopoly and oligopoly companies’ profits indicate dramatic increase in the report, it will attract more attention from the public, then government will take high tax rates to regulate enterprises. However, high tax rate is not a perfect method and it will cause many negative effects like making financial statement fraud, and an inactive factor for companies’ development. So government is devoted to detecting this kind of financial crime but also prevent to be the cause of this event. Although company needs to take most of the responsibility but government also needs to make a good balance and be fair in the business manipulations.

 

Brand Position in Business- HTC

Before taking commerce, I only have a vague sense about brand position and value propositions. I will take it as how to determine the target group and a good name for the brand.However, during this information overload era, consumers will have many approaches to get touch with various branches , so company must do something to help consumers distinguish it  in the market and get into the mind of the consumers.

Take HTC as an example, it is facing the most difficult time and I think one of the important reason is that this company did not find an appropriate position in the phone market which has the most fierce competition. Compared with its past glorious success, many negative news is around with HTC; declining performance, executive defections and many other problems. Although there are many different products designed in HTC but it also indicates another problem that they do not have a clear brand position.it will confuse consumers and make them feel messy. According to the market investigation, many consumers  said that they did not know which one is the most classical one in HTC. In October 2009, HTC has  launched their first worldwide advertisement , the main topic is “Quietly Brilliant” and it strongly pointed out their products is human-centered which usher their peak time in 2010 and 2011. However, Apple and Samsung also made many efforts on brand position and did better than HTC these years. Also, disordered marketing strategy makes HTC now in the bottom of their performance.

Although HTC One now help HTC resize some market but it is also not very optimistic in the future because of the supply chain and the fierce competition. It seems HTC still have a long way to go and from this example ,it helps me deepen the understanding of brand position and its importance.