International Business Management Plan: Whole Foods Market

Whole Foods Market is comprised of a chain of food-based supermarkets whose base is in Texas at Austin City. The main emphasis of the Whole Food Market is on the usage of organic and natural products. It has been prompted to be classified under one of the most responsible businesses socially. It has risen to be graded among the top 25 companies in the Green Power Partners.

1.      Company Background

a.      History

The Whole Foods Market began from a very humble beginning. It started as a single shop in a three-story building before becoming a multibillion entrepreneur. The company’s history could be traced back to 1975 when John Mackey was 25 years old. Mackey dropped out of college and borrowed a sum of $45,000 together with his 21-year-old girlfriend from friends and family in order to allow them set up a small food store. The store, then, was referred to as Safeway and has been dealt with natural foods only. The couple later, was evicted from their store because of using it for food storage purposes. They later moved in to live there. John Mackey subsequently entered into a partnership deal with Mike Skiles and Craig Weller. At this point, the Clarksville Natural Grocery was merged with Mackey’s Safeway to give birth to Whole Foods Market which now operates through many subsidiaries which are wholly owned.  (Petusevsky 31)

                    At the end of the company’s financial year in September 2011, it recorded $10107.8 million revenue. This was over 12.2% increase from the 2010 revenue, with its profit being $547.6 million forming an increase of over 25%.

Products

The products being offered by Whole Food are usually natural. The store should emphasize the fact that its products meet the standard level of foods that are free from additives, colors, artificial flavors, and preservatives among other food ingredients that are normally regarded as unsuitable for human consumption. (Petusevsky 23).

Whole foods announced in early 2007 that it would explore the acquisition of Wild Oats Market, which was by then the company’s closest and largest competitor in the market. This was to cost the company around $te.565 million and further an assumed debt of approximately $106 million. This has been the Whole Foods most expensive acquisition to date. It had yearly sales of above one billion in close to 100 stores and an employee base of over 8,500 people. (Paul 27)

b.      Sale Levels

The store offers online advertisement to the products that they offer. Its products can be acquired and ordered online. Furthermore, the products are sold in a variety of countries. Whole Foods grew, and by 2008, the month of September, the store has grown to have 264 stores situated in the United States and it also had 5 stores in the United Kingdom and among other various countries. This ensures that it has a large base of sales for its products. The store offers both retail and wholesale services in areas where they carry out their sales.

c.       Organization Structure: Strategy and Goals

The Whole Foods Market has an organizational structure which is sub-divided into twelve geographic segments. Each of these divisions is headed by a president which uses a market network known as Whole Foods Market in order to be effective in marketing strategies. There is a hierarchy of 4-phased employment from the Global Headquarters, Regional Offices, Facilities Employment, and down to the Stores Employment. Employees within the system are always encouraged to apply for jobs at the Whole Foods Markets. They focus on developing the employees’ skills and encourage working under no or minimal supervision (Paul54).

2.      Country Entry Product & Marketing

The Whole Foods Market is yet to set base in the United Arab Emirates. The UAE has been ranked as a rich country enjoying a GDP per capita that exceeds 2000 US dollars. Business in the UAE was ranked among the top 15 countries worldwide. It has a business environment that is conducive and its economy was strengthened. The economy in the United Arab Emirates is an open one, thus, allowing free business and investments without boundaries. With its GDP being the third (3^rd) in the world and places second in the Middle East, the United Arab Emirates offers a fertile ground for businesses. (Hodgetts,Luthans 98)

a.      Marketing Need

Whole Foods aims at expanding its businesses into the United Arab Emirates which is vastly becoming a business herb. Whole Foods, having recorded extreme success at home now, is greatly obligated to succeed overseas. The best choice for this expansion is in the United Arab Emirates. The store’s success was basically built upon extensive market research that is meticulous and planning well before venturing into the United Arab Emirates for the purposes of business. This market research ensures that the business venture is not an act of futility and that losses are not to be incurred later on. (Terterov 56). There is no room for underestimating the market temperament. In such ventures, surety and confidence does not overshadow the important aspects of market research. The new customers in the United Arab Emirates need to understand the patterns and impulses that shape their choices, preferences, and characteristics. Eventually, before expanding into the United Arab Emirates, there is the need to set up a business plan comprehensively which the Whole Foods have always done (Ireland,Hitt, Hoskisson & Hitt 132).

Existing Competition, Substitutes

Expansion into the United Arab Emirates needs adequate preparation and well-structured business plans which must be executed in a very rational manner. There is a lot of competition in the business field of UAE as a result of the open market environment in the region. This has seen established companies to continue dominating the markets while weaker companies disappear. In the UAE, it is fundamental that the products from a store should be of exceptional quality and unique in its own way. The products should also be of demand and effective if they are to stand the test of marketing. In other cases, there is a need to offer substitute products that serve the same purpose as the one in the market or more efficiently. These substitute products need to be better in terms of health matters, environmental concerns, and ultimately, of quality. The Whole Foods can withstand this market requirement given the fact that it deals mainly with organic products that are environmental friendly and good for health (Terterov 45).

Marketing Potential and Support

In order to survive and thrive in business in the United Arab Emirates, it is important for the market potential and support to be exploited. Whole Foods has to set a blueprint for all services and goods for marketing. It is also vital to be enfranchised by the competition and target customers. Marketing potential in UAE calls for a store to produce equally competitive goods and services at competitive prices. The products should be in an angle in which the rest of the competitors do not offer. Identification of locations, customers, and sale channels need to be hastened. This could be achieved if there is a laid down support system that supplements the functions and marketing in the store. Whole Foods has to implement these aspects if success in UAE has to be met.

b.      Marketing Mix

Marketing is very important in business success. Marketing mix refers to a tool in business that is always applied while marketing products and services. Marketing mix comes handy in the determination of brands being offered and determination of products. Every business entity has to build on the pricing, their products, promotion, and the place where the products and services are being offered. In contemplation to succeed in business in the United Arab Emirates, marketing mix must be observed. In service delivery, the consumer, cost, convenience, and communication to the consumers are vital. Due to the fact that in United Arab Emirates there is a free market, any business entity wishing to succeed must have an idea on what the rival companies offer. This will help to identify the reasons that lead to cheaper services and product sales by the other business rivals.  In UAE, market mix is important especially for stores and entities offering food products. Whole Foods, therefore, has to lay down a comprehensive marketing mix so as to evaluate their product and prices. This will go a long way in ensuring that the store offers products that are in line with the market environment and the needs of the citizens in the United Arab Emirates. There are 2 forms of marketing mix which include the producer and the consumer oriented model. In order to expand in the United Arab Emirates, Whole Foods has to embrace the producer model. This is in line with the food products that the Whole Food Market produces. Through the producer oriented model, the store would be able to match the free and open business economy of the United Arab Emirates. (Terterov & Shoult 55)

 

Four Ps: The Producer-Oriented Model

The four Ps is a producer-oriented model that was mainly based on the price, product, place, and promotion. The wants or needs of a consumer had to be satisfied. The item which satisfies the consumer’s wants or needs is referred to as a product. In business, the item can either be a service which is intangible, or a good that is tangible. Every business entity has to ensure that it produces products that are above reproach and of the desire quality in order to succeed in the United Arab Emirates. The products must have a specific life cycle and different levels of sales. There are times when the sale is always high, other times medium, while at times the sales are always low. For the sake of weathering all these stages, it is inevitable that the products produced should be in a position to meet the demand level. Product mix is also very important. An increase in the respective product line increases a product’s line depth. Whole Foods needs to consider the position of its products, know how to exploit the store’s brands, and know the position of its products in the United Arab Emirates if it wants to succeed in its expansion in the country. It is also important to note how the various products complement one another. . (Terterov & Shoult 73)

            The amount that was always paid by the customers in order to get a product or service is called the price. In order for any company to survive and make profits, it is very important that it takes a keen interest in its price. In the UAE, it is very sensitive when it comes to dealing with prices because adjusting the prices in the country has great impacts on the strategies of marketing, the sales, and demands of a product. It is important to identify the value of the customers so as to set prices.

Promotion of the products is also important in the marketing mix. This includes the necessary methods of communication as employed by the marketers in providing relevant information about the products. In promotion, advertising, personal selling, public relations, and promotion of sales are incorporated.

Lastly, the pricing is very important in expanding a business especially in another country. Place refers to the situation of a product which it is easily accessible. It also refers to the distribution of the products.

3. International Management

A. Strategy and Goals (Government Relations, Joint Venture)

Whole Foods needs to have a joint venture with other business entities in the United Arab Emirates in order to explore the country’s market. A joint venture is an agreement in business wherein two (2) or more parties came to an agreement of developing new entities and assets over a specific time span. In this agreement, the parties agree to contribute equitably and both are entitled to exercise control over the business and eventually sharing the expenses, revenues, and all the assets.  In joint undertaking, it is easier for Whole Foods Market to establish a base in the United Arab Emirates. The joint venture will assist the store to achieve a specific project in liaison with another business firm.  The joint venture could be aimed at achieving a specific project or in building a lasting business relationship. Such ventures can be entered through contracts, agreements in a rental way, or agreement contracts. In joint venturing, Whole Foods Market would be able to engage in other activities that will diversify the products which they will be offering in the United Arab Emirates. . (Terterov & Shoult 154)

There is also a dire need for having strain less and frictionless relation with the government in a foreign country if a business entity is to succeed. This applies to Whole Foods stores which look forward to expanding its productions to the United Arab Emirates. In this relation build up, the store will operate along the legal frame work and there will be a smooth relationship with the UAE’s government which is vital to succeeding in the country.

b.     International Structure (Where is the Power, Centralized or Decentralized?)

Whole Foods Market, being a multinational store, needs to set up international structures that are viable and have positive impacts to the business. International structures are vital in shaping the business field. In order to succeed in the business and marketing sector, it is important that a business entity understands the international structure and sets up a structure that will improve the business and maximize the profits. In these structures, the powers may either be centralized or decentralized. (Luthans 85)

In centralization of power, the decision making process and role was confined to a few people. The cohort of people makes all the decisions that are important and are tasked with approving all the decisions that are made at lower levels in the organization. The decision making process is always reserved in the top brass of the organization. It may take a structure, whereby, there are middle level managers who also make decision, but are subject to the top organ. Those in the lower area do take directions as issued from the top management which makes key decisions and pass them to the other levels to work on the implementation process. The Whole Foods could apply this centralized system in managing their international structures.

Decentralization of powers involves delegation of authority across various levels of management in the respective organization. The middle and lower levels of management are given authority to formulate minor policies. The top management is always tasked with making key decision and policies that affect the organization at large. Decentralization is always different from delegation. In decentralization, the lower authorities have some stake in formulating policies and are always given space and time. This decentralization formula could assist the Whole Foods in succeeding with managing its international stores.

c.      Staffing (Source of Managers and Source of Lower Level Employees)

In any business, managers and other employees play a major part in the development of a business entity. This ultimately leads to the success of business. Whole Foods needs to have competent, experienced, and qualified managers. This is difficult to achieve unless a comprehensive recruitment process is to be undertaken. It is also important to note that the fact that Whole Foods Market aims at expanding its stores to other parts like the United Arab Emirates, calls for a proper managerial and employees recruitment process. It is more effective to appoint a manager who is well acquainted with the business environment. In this case, if the Whole Foods is to effectively succeed in the United Arab Emirates, then, it must go on an outsourcing mission in the same country. This will improve the quality of products that will be produced due to the fact that the managers will be aware of the marketing scenario in the country. To further enhance the strength and efficiency of product provision, there is a need for the Whole Foods to employ local residents as low level employees. This will ensure that the productivity rate is high in the stores and will create a good rapport with the locals in the country. By having most of the staff members of an organization to take from the respective country, it is easier to create a concussive business environment that will play greater advantage of the store in a foreign country.(Luthans 112)

Nevertheless, there is no harm in outsourcing for managers from a different country especially in the event that quality and experience is needed. In fact, having few managers from a different country having a different business environment will eventually add to the new or different ideas in the business that may be implemented to aid more quality.

d.     Hours of Operation

Opening and closing times of a business is always important. This is for a fact that there are always some trustworthy customers who are usually loyal to a specific business entity. In order to get a grip on such customers, it is vital that a business stays up to as late as possible and ensure that whenever a customer needs an item, it will be available. There is also the need to avoid a scenario where a customer needs something from a store, but has to pick it from another store because the favorite store is closed.

In the event that the Whole Foods Market opens up in the United Arab Emirates, it will have to adjust its operating hours. This is basically because in the Unites States of America, shops and businesses close up earlier than those in the UAE. For instance, in the United Arab Emirates, shops and businesses open up at around 7 o’clock in the morning and close at around 10pm to 12 midnight. Such hours are longer as compared to those in the US. This, therefore, means that if the store is to succeed in making maximum profits in the United Arab Emirates, then, it is obliged to adjust its working hours.

e.      Reward and Punishment System

Rewarding of outstanding employees in a business contributes to the development of a business entity. When employees perform well in any business, rewarding them will lead to replication of the same good work and propel the business to have higher profits. At Whole Foods, there is a fundamental value of striving towards achieving excellence and happiness among its members. (Luthans,Doh 287). This has been done through rewarding those who do well in carrying out their duties as a means of showing that they are being appreciated for their good work in the store. Rewarding could take different shapes. There is the thing that we call an intrinsic and extrinsic reward. Intrinsic reward is an appreciation that is given by word of mouth. Such rewards do make workers feel appreciated in an organization. Extrinsic rewards include physical handing of rewards and prizes. This is always done mostly during companies’ meetings. Those who excel in their lines of duty are rewarded for their good efforts. Whole Foods Market applies different forms of rewarding their employees. Similarly, the employees are always given medical cover and insurance that highly motivates them and made them feel appreciated in their stores. Whole Foods Market’s stores further set aside funds from their budget to be used in evaluating and developing the employees among other incentives and benefits as a form of reward.

Despite the fact that there are rewards for those who excel, there are also punishments for those who contravene the principles; policies and ethics of the stores. There is always the need to have a committee which is bestowed with the responsibility of ensuring that discipline is maintained among the employees. Functioning as in case an employee is involved in graft cases, that measures could be taken like suspension or termination of contract. This ensures that there is discipline in the organization (Luthans,Doh 325).

f.        Control System

Control system is important in managing, commanding, regulating, or directing the functioning of other systems or devices. Control system is necessary in the success of any business. Whole Foods has a control system that is used to monitor and have a data base of all the aspects in the stores. In order to make more profits and succeed in expanding its business, there should be a more sophisticated and amalgamated control system that will come handy in easy management of the workers and all the employees in the stores.

Whole Foods Market has a setup of 17 companies. The different companies specialize in dealing with different types of products. There has been a horizontal integration and there were new stores opened to integrate the other stores. With the increase of demand for natural food products produced by the Whole Foods Market, there was an expansion program. There is a company culture at the Whole Foods Market; the stores highly regard its members.

g.      Social Image and Ethics

There have been mixed projections in terms of image and ethics at the Whole Food Market. In the recent past, Whole Foods has been subjected to a lot of boycotts and resistance in terms of locations of stores. There have been further criticisms on its policy that it uses to promote its brands. The policy has been termed as an aggressive one. It has also faced a lot of fructuous relations as a result of their issues on labor, business practices, and product selection.  (Luthans,& Doh 97)

On the other side, Whole Foods has experienced a series of positive image building and ethics. John Mackey, the company’s CEO was awarded the best CEO in the world. The company was later awarded a top honor by the Environmental Protection Agency in 2006 and was also awarded with a Green Power Leadership Award and Green Power Partner in the years 2004, 2005, and 2006. The store also became the 55^th largest revenue contributor in 2005 in the United States of America. The social image of the store was also boosted in 2003 when its CEO was named the Overall National Ernst and Young Entrepreneur of the Year. The Whole Foods has also won a number of retailers’ awards. Such awards have boosted the social and ethical face of the store. In the international front, the Whole Foods store is fast gaining prominence worldwide. Its quest of expanding its stores to the United Arab Emirates will be achieved only if the above factors will be taken into consideration. (Terterov & Shoult 134)

Works cited

Hodgetts,Luthans. International Management: Culture, Strategy, and Behavior.  London: Irwin/McGraw-Hill. 2000. Print.

 Ireland,Duane, Hitt, Michael, Hoskisson, Robert &. Hitt, Michael. Understanding Business Strategy: Concepts and Cases. Cengage Learning. 2008. Print.

 Luthans,Doh. International Management: Culture, Strategy, and Behavior.

            McGraw-Hill Companies, Incorporated. 2011. Print.

 Paul, JM. Whole Foods Market---A Communication Plan to Engage the German Market. California: University of Southern California Press. 2009. Print.

Petusevsky, Steve. The Whole Foods Market Cookbook: A Guide to Natural Foods with 350 Recipes. London: Crown Publishing Group. 2010. Print.

Terterov, Anthony Shoult. Doing Business with the United Arab Emirates. London: GMB Publishing. 2006. Print.

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Ford motors on its new Ford Fusion

Introduction

                    Ford is an automaker that has a multinational setup and is based in the United States of America. The Ford Motor Company is set in Detroit, a suburb in Dearborn in the state of Michigan. Henry Ford found the company and in the 16th of June 1903, it was fully incorporated. Ford Company deals majorly in commercial vehicles and the sale of automobiles, with these under the brand name of Ford, while the company produces luxury cars under the brand name of Lincoln. The company had been producing tractors, heavy trucks and varied components of automotive in the past. The company further have stake in the United Kingdom’s Aston Martin and Japan’s Mazda. The Ford Company is listed among those businesses in the New York Stock Exchange despite having minority ownership, controlled by family of Ford. (Batchelor, 1994)

                    The company introduced the manufacturing of cars in large scale and its workforce is managed in a large scale sequence of manufacturing crafted as the assembly lines which was later to be largely known as Fordism by 1914. In the United States of America, Ford Company is listed among the leading automobile manufacturing, taking the fifth position in terms of size of production in Europe and worldwide in terms of its vehicle sales as at the year 2010. In 2009, Ford Company was ranked the fifth in Europe by the Fortune 500 list in terms of revenue. Its employee base of worked adding up to approximately 213000 people and a production of 5.5 million automobiles adds to its market strength.

The Ford Fusion

                    The Ford Company introduces the Ford Fusion model in the year 2003. This was a model that was aimed at thrilling the automobile industry and adding up to the efficiency and comfort of the consumers. The Ford Fusion was defined as being hot as it was good looking and had a mid-sized four door. The model was had its windshield raked steeply, it has a tail that was nearly fastback and had a touch of greenhouse which was sleek. The model was greatly pioneered by the Hyundai Sonata and the Mercedes Benz among other models. The Ford Fusion car was at least more detailed and was more efficient and luxurious. The introduction of the Fusion was widely accepted in the United States of America and spread beyond borders to European countries among other global markets. The introduction of the Fusion was a great step towards market dominance and productivity increase for the Ford Company. Many consumer could get the new touch thus offering a wide range of variety of sleek automobiles to chose from.

Marketing mix

                    Marketing mix stimuli includes advertisements, products, packaging, brands and the ultimate purchase points. The marketing mix stimuli involve the management and design that goes a long way in influencing the responses by the consumers. The consumers are always moved by the brands which do inform on the customers’ choice. The marketing mix stimuli do influence the affective, cognitive and the behavioural responses to various products. (Pride & Ferrell, 2011)
Consumer behaviour

                    The marketers of all the companies need to study groups, organisations and individuals. This is referred to as the consumer behaviour. Consumer behaviour evaluates the various processes that are used in securing, selecting and the disposal of products, experiences, ideas or services with an aim or satisfying the wants and needs of the society and the consumers, having an impact on the whole processes. Consumer behaviour deals with the study of how the customers are informed psychologically, sociologically, socially anthropologically and economically.

                   This aspect has been greatly applied by the Ford Company in an attempt to try and get to understand the processes of decision making of its customers. This has been vital in identifying the facts that do inform the decisions made by groups and individuals concerning the various products from the Ford Company. The company has been involved in behavioural and demographic variables. This has been in its verge to identify the wants of the customers. This has enabled the company to assess the different influences that are on customers alongside other groups such as friends, family, reference type of groups and the entire society generally. This was the factor that initiated the introduction of the Fusion into the market.

                    Ford Company acknowledges that the customers play various roles that include payer, buyer and user. The behaviour of the customers is always based on the buying behaviour of the consumers. Though the consumer behaviour is usually difficult to accurately predict, the Ford Company has been professionally studying the consumer behaviours. Emphases are always laid on the management of customer relationship, consumer retention, marketing done one to one, customisation and personalisation.
Consumer cognitive response

                    Cognitive response is always developed as a result of communication which is always done persuasively thus triggering the change attitude. Cognitive response does affect the customers’ attitude as concerns making choices on the various products. This is always fast tracked by the persuasive communication which always goes a long way to the customer’s interpretation, elaboration, integration and manipulation of the information that a customer has received. In this case, customers are always exposed to various information concerning the products that are always offered by different companies which have been done through advertisements in the internet, print media, and billboards among others. The persuasion is always successful when a marketer uses some information which had earlier been viewed as optimistic and viable. In relation to marketing of products, consumers are always easily and fast persuaded.

                    The Ford Company has done this persuasion in reference to their earlier products; this has seen most of their newly introduced products become acceptable and easily bought by the consumer. The Ford Company has seen its products well received and measured in the level of their previous products. The cognitive kind of response usually involves a connectivity developed in relation to the response that had initially been fronted by the customers and the resultant attitude that followed.

Consumer affective response

                    The affective response is always based on the opinion or thought that one makes based on the images, symbolic and perceptual representation. The images are always marked and have an either positive or negative formed feeling that is in most cases always linked to the somatic status indirectly or directly. Positive marking to the images do become an incentive signal and do go a long way in increasing the accuracy of the decisions taken by individuals or groups of consumers. This trickles down basically to the advertisement and the images that are always presented by produces.
                    The Ford Company has applied the affective aspect of consumers in succeeding to effectively inform them on the decisions of trusting in the Ford products. This has been done through extensive marketing visually. The visual representation of the Ford Company’s products had been intentionally done in a magnificent way, constantly depicting the company’s products to be among the best of the bests in the market. This has created an informed decision on the consumer field and there has been a largely informed perception that all the automobiles and products from the Ford Company are of quality and meet the pricing that is always attached to them. This has led to an increased sale of the company’s products thus leading to huge profits realized by the Ford Company.

                    When a positive marker is linked to an image, it becomes a signal of incentive. He hypothesized that somatic markers increase the accuracy of the decision process and the absence of these markers, mostly seen in people with certain type’s brain damage, degrades the ability to make good decisions. This hypothesis arose when observing patients with damage to their prefrontal cortex who had severe impairments in personal and social decision making despite their other abilities.
The Four P’s
                    Marketing mix is always used as a tool in marketing by various businesses and professionals in marketing. Marketing mix is always a very crucial aspect as it always determines the brand and product’s offering. The marketing mix always goes a long way in applying the price, the product, promotion and the place, usually referred to famously as the four P’s of marketing. There has since been an expansion of the four P’s to eight P’s in order to address the emerging service provision nature. Concurrent to the application of four P’s, the four C’s has also been applied. This includes the cost, consumer, convenience and communication. (Hoffmann, 2008. a)

                    The Ford Company has managed to stay at the top in terms of production and sales. This has been majorly because of its exhaustion in terms of the market stimuli. This was further informed by the introduction of the Ford Fusion model. The company’s employment of marketing mix stimuli has kept the company’s a major stake in the automobile industry. Ford has explored various products, prices, promotion and place.
Product
                    In the view of the four P’s, the product refers to the items which do meet the customers’ expectations thus satisfying a customer’s wants or needs. This is always a good that is tangible or can be a service that is not tangible like the services offered in hotel industry, tourism, financial industry, etc. the tangible products do have existence which is physical and independent. Most of the manufacturing, processing and assembling industries do offer tangible products. Among them is the Ford Company which deals in automobiles production. Other industries that produce tangible products include the disposable razor producing industries. (Hoffmann, 2008. b)

                    In order for an industry to succeed, it must ensure that its products are of desirable qualities to the consumers. All the products do have a life cycle which does include the phase of growth, the phase of maturity and finally the period where eventually sales do go down. This research is very inevitable for all those in the production market because it will go a long way in assisting the producers to plan and know how to tackle the market as far as the different stages of their goods are concerned. This goes hand in hand with the product mix which involves the increase of various product mix vis-à-vis having an increase on the product lines number. Moreover, the exploitation of the brand is always vital by the marketers alongside the exploitation of the resources on the various companies. This is always done but with a close relation to configuring the product mix and eventually complementing all the products. The strategies to develop the product are always explored by the marketers. (Hoffmann, 2008. c)

                    The Ford Company has applies the market mix and the product overview as concerns the four P’s. This is because the various products that the company produces have been having the desirable characteristics. Such products like the automobiles, trucks. Buses, tractors and many more have reached a thresh hold of customer satisfaction. For instance, the company’s automobiles are of a wide range in which the customers can easily choose from. This ranges from luxury automobiles which are produced under the Lincoln marquees and are spread all over the globe. The introduction of the mercury brand, edsel brand and the merkur brand saw an increase in sales as a result of customer preference to them. Further introduction of the jaguar and the Land rover models was received well in the marker for their convenience and quality. The company has also diversified in its production. This has trickled down to production of buses which have been used by schools and trucks for the purposes of building and constructions. The tractors from the company have been marketed as the best in terms of their performance and the company has also explored production of sports cars for racing.
Price
                    Price refers to the amount that a customer always pays in order to get a product. Pricing is always an important aspect in business as it is by prices that a company establishes the losses and profits thus enhancing and playing a pivotal role in its survival. Prices are always changed depending on the demand of the products, the sales or the product’s price elasticity in the market. Eventually, the change of prices does have a great impact on a company’s marketing strategy. It is always wise in setting prices that complement the elements that are in the market mix. Setting a price does require a marketer to have the knowledge of the perceived product value by the customers. This is always determine through market penetration pricing, neutral pricing and the market scheming. (Hoffmann, 2008. d)

                    There must be consideration for the differential value which includes the customers’ views with regards to the attributes of the product versus those attributes of the customer alongside the reference value including the customer’s view on the competitive view of the customer as concerns the price of the product. The Ford Company has had a professional touch in its pricing, a factor that has contributed to it being a leading company in the transformation of the current business world. The company has created an automobile company which has been contemporary. The company has ensured a price level that matches the customer expectations and the quality of the products. The company has intensely marketed its products and the different brands in deferent price indexes which have remained emotionally and culturally relevant, being in match with the other companies’ products. The company is committed in the delivery of products whose qualities match the prices. The products by the company have been of efficiency such as the hybrid and electric vehicles, which have greatly matched their prices.
Promotion
                    Promotion is always vital in the marketing and growth of a company. Promotion is the communication methods that are always employed by a company’s marketer in order to provide the relevant information to the various customers concerning the products by the company. Promotion is an amalgamation of various processes like public relations, sales promotion, personal selling and advertising.

                    The Ford Company has intensified its promotions and advertisements of its varied products. The company has engaged in internet and radio advertisements, cinema commercials, billboards and through print media that is paid for. Public relations has been a vital aspect and brought a lot of influences in the company’s growth and realization of profits. The company has been involved in indirect paid for sponsorship deals, events, trade fairs, seminars, conferences, exhibitions and press releases. This has greatly impacted on the realization of more profits for the company. The For Company has also been engaging in word of mouth communication which is a form of informal communication. This has been done to customers who have been satisfied and other specific people to maintain the momentum of the market. This has increased the popularity of the products alongside the sales. (Hoffmann, 2008. e)
Place
                    The provision of products in places where they are conveniently needed is always important for every business. Distribution is also an integral aspect of the place. There are strategies that are always employed in the distribution of products. These do include distributing the products exclusively, selective distribution, franchising and intensive distribution. This is always used by the marketers in order to complement the marketing mix aspect. The Ford Company has established various distribution companies all over the globe. The company has had distribution in various parts of the world including the North American countries. The company has established supplementary companies in European nations including Britain and Germany. Other places include the Japan, Brazil and Argentina in South America, New Zealand and Australia in the Asian Pacific among other parts of the world. This wide distribution of the Ford Company’s products has contributed to the immense sales and increase of the profits of the company.
Conclusion
                    The Ford Company has managed to be a key market player in the automobile industry. This has resulted from the fact that the company’s management and marketers have effectively and extensively exploited the four P’s in marketing alongside the various customer responses. This has been vital in the realization of high levels of sales an ultimately making the company a preferred choice in terms of the products that it offers to the market. The Ford Company has ensured that it leaves nothing at stakes as in the sense of keeping its advertisements and consumer packed information as concerning their products that they offer. This has gone a long way in ultimately informing on the decisions that the consumers have taken as to their choice. For instance, the company has had classy and flashy pictures in billboards that have greatly influenced the consumer perception to their products. The media adverts have been designed in a manner in which the consumer is convinced that the products from the Ford Company are the best to have. Exceptionally, the Ford Company has ensured that its products are spread across the entire globe thus making it accessibly easier for the customers to buy their desired products. The costs have been outlined and the qualities of the products do match up the coats.

References
Ray Batchelor (1994). Henry Ford: Mass Production, Modernism and Design. NY: Manchester University Press ND
Stefanie Hoffmann (2008). Are the 4 P's of International Marketing of Equal Importance to All Firms? What Factors Might Cause Some to More Or Less Important Than Others?: A Short Article. Norderstedt: GRIN Verlag.
William M. Pride, O. C. Ferrell (2011). Marketing 2012. London: Cengage Learning.
www.guardian.co.uk/...business/video/ford-barb. Barb Samardzich on the future at Ford's blueprint for the company.
www.youtube.com/v=kzRnZjY82xE.  The Ford Motor Company: Moving America Proudly Since 1903

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Management Accounting- The Toyota Motor Corporation

Background to the company

The Toyota Motor Corporation is based at Toyota at Aichi in Japan. The multinational company is an automaker with a large employee base of over 400000 employees with the largest manufacturing capacity of automobiles and specifically the famous vehicle brand ‘Toyota’. It terms of world revenue, the Toyota Company sits at the eleventh position and had manufactured an estimated 200 million vehicles in July 2012. Founded in 1937 as a family company by Kiichiro Toyoda, the company has been keen to strategically manage its businesses. The Toyota Company has had a choice of leadership that has embraced the benchmark of quality, perfect practices and corporate responsibility in the wake of stiff competition and technological advancement in the global market. The strategies of the company have been deeply rooted in principles that have continued to improve the respect for people, their strategy framework as been gearing towards waste cutting, positive attitude building and maximum utilization of the inherent talents of the workers. The Toyota Company has managed to create an impression of social responsibility in the global market. The company has exploited a number of strategies with a view of being the best company in terms of product quality and service provision vis-à-vis matching growing customers’ needs and technological advancement. The management board of the Toyota Company has been vigil to clinch any opportunity in developing and growing the company’s worth, a strategy that has gone a notch higher to see the company explore options of developing hybrid cars among other market strategies. The underlying strategy of the Toyota Company is rooted in rewarding merit and identifying faults in an attempt to perfect the product and service delivery. Through this basic strategy, the Toyota Company has managed to propel its influence and achieve an extensive customer base.

Strategy and management

The success of the Toyota Company is attributed to its strategic management formula that has made them to remain competitive in the automobile market while maintaining the quality and efficiency of their products. The philosophy of management at Toyota Company has continued to evolve over a long period of time. This management philosophy has been built on the original value of the company which was centered on ‘Lean manufacturing and the concept of production in time. These two concepts have been vital in the development and growth of the company. The Toyota Company strives to produce designs of cars that are exclusively ideal and perfect. In its lean manufacturing policy, the company aims at achieving a customer ideal production which will eventually cumulate to customer satisfaction. In this quest, the Toyota Company has been producing different models of cars in order to meet the demands, taste and different preferences of its customers. This has enabled the company to remain competitive and to have a wider market area. The business strategies and managerial values have been collectively convened into a single structure referred to as the ‘Toyota Way’.

Processes, products and policies

The ‘Toyota Way”

                    The ‘Toyota Way’ was one of the strategies that the Toyota Company adopted in order to help them stay ahead in the automobile industry. It is a set of values guidelines of conducts that all the employees at Toyota are expected to embrace. The strategy had two main pillars; Continuous improvement and Respect for People. All the conduct guidelines and values of the Toyota Company are summarized into major principles of embracing challenge, striving to improve their services and products, respect to customers, teamwork and a ‘go and see’ slogan. This is a strategy that the company has employed to ensure that the employees not deviate from the main objectives of the company thus enhancing success in business thus working as a driving force towards an achievement. The strategy has also aided the formation of identity and has kept the spirit of quality and service which has helped the company to be outstanding among other automobile manufacturers. Alongside the Toyota Way are four other components that complement the strategy. These components include management decisions that are based on long term deliberations and a comprehensive problem solving process. Further, the aspect of focusing on the development of the people has added a lot of value to the organization. Consequently, the Toyota Company has embraced the art of organizational learning through solving the root problems continuously in the organization.

Electric technology

Strategic management is all about exploring the possible options that can assist a company to be elevated above its competitors. This means that every implemented strategy needs to be suitable to effectively achieve the mission, feasible to ensure that it is applicable and that the strategy is accepted by the stakeholders. The management team at Toyota Company has explored the application of electric technology which is feasible, acceptable and suitable. In this respect, the Toyota Company has gone a long way in releasing hybrid electric vehicles into the automobile market. It has been the first company to introduce and sell hybrid electric vehicles, thus shaping the face of the automobile industry. In 1997, the company introduced the Toyota Prius and started producing vehicles that were smaller but maintaining the luxurious touch. Such cars like Lexus and Camry were received into the automobile industry with excitement, a sign of an effective strategic management implementation. In 2012 October, the Toyota Prius became the hybrid car that was best sold in the whole world and this earned the Toyota Company about 2.8 million units. This high sale was replicated in most parts of the world. Later in 2012 October, the company was the first to manufacture a passenger car that was hybrid and a motor vehicle hybrid that was one plug in model. This model was availed to around 80 regions and countries worldwide. The company has an aim of achieving the launch of a 20 hybrid vehicles models at the end the year 2015.

Toyota’s Management accounting

Management accounting refers to a process which entails the preparation of the management reports and the accounts that contain information that is timely and accurate. The information therein does have the statistics that are useful to the managers in making of decisions on a day to day basis. Management accounting reports are usually produced on a weekly or monthly basis, unlike the financial accounting reports. The management account reports are purposed to be used by the organization’s internal audience which includes the chief executive officers and the various departments.

Contents of managerial accounts

The managerial accounts do contain variance analysis which may include the use of trend charts. Raw materials and inventories, outstanding debts and the state of account receivables and the accounts payable are also included. The report does contain the orders that are at hand, the revenue generated from the sales and the amount of cash that is available at the disposal of the organization.

The main Functions of the Toyota Management Accounting:

Cost analysis

This is intended to do an analysis based on the cost. This includes the cost that is incurred during the performance of a specific task or a project in a particular time span. The analysis is also based on establishing whether there is some effectiveness as far as the costs are concerned. Areas where cost controls are needed are highlighted.

Budgeting

Through budgeting, the management accounts tries to project the expenses and revenues for the future, and sets up a general budget on the same. This is a function that is crucial in as far as management accounting is concerned.

Increasing efficiency

Through the management account, there is an identification of the inefficiencies in the management. This is done through the identification of high cost areas and places where there is an excessive use of resources. A clear analysis of the same is therefore given.

Planning and controlling.

One of the management accounting’s main functions is to plan and control. This is achieved through the preparation of sales backlogs and revenue reports in trying to offer a clear direction to the company.

Coordinating

Management accounting is responsible for the coordination of various departments in the organization. This is done through an integrator process whereby the management accounting takes the future needs and works towards allocating resources towards them by means of budgeting.

Suggested Management Accounting Techniques

The Invest Appraisal

This is one of the tools that are vital in the measurement of the effectiveness of the domestic and overseas performance of a country. This aspect is then used to establish the potentiality of future investment by the company and to determine the extent to which the company needs to invest in new projects. Such investments do have long term benefits hence there is always need to use techniques that are proper in their establishment. An example of this includes the payback period calculation for a specific project and the various costs that are involved in giving the company an appraisal. Multiple projects can have their paybacks calculated and an individual performance of each project reviewed hence giving the company a clear picture with regards to the performance of the project over a given time frame.

Market Orientation

Market orientation is very important for the Toyota Company. This is especially because the needs and wants of the various target markets do change over a period of time. This change can be expressed through the profits and losses statements of the company.  The market orientation can be analyzed in respect to the profit and loss statements of the various territories or markets. Future planning and budget allocations greatly rely on the market orientation.

Cost Management

Getting good results in line the costs that have been incurred in various activities of departments depend on the analysis of the costs. The costs include costs of designs, marketing, distribution, resource planning, customer service, production, purchasing, development, research among others. The management of costs helps the management to establish whether there is wastage on the costs and on how the costs can be cut down for efficiency.

Stock valuation

The Toyota Company needs to carry out a valuation of its stocks due to the fact that it is a business that is based solely on manufacturing. The company has a lot of competition and the stock valuations should be done often in order to avoid the excessive costs.

Capital budgeting

Through capital budgeting, a company can be able to access the inflow and the outflow of the cash for effective usage. The capital budgeting technique that is deemed to be the best is referred to as the company’s Net Present Value. This is the cash flow value of the company minus the cash out flow present value.

The Strengths and Weaknesses of Analysis

Management accounting needs to be done on a regular basis in a company as it is crucial in advising on the decisions to be taken by the management of the company. The report from the management accounting may reveal very important aspects necessary for the management of the company.

Management accounting report works on the basis of real time data and is always done on a monthly or a weekly basis. The management accounting is usually done through the internal employees in the company that are in the department of accounting.

The company has to continue spending its money as characterized by the constant rise in the price of the crude oil, thus, causing a rise in the prices of spares and raw materials.

Despite the fact that cost management is essential in the company, at some instance it may not be possible to cut on the costs as there is need for an intensive marketing by the company in order to stay ahead of the potential competitors.

Conclusion

Ultimately, for the Toyota Company to experience a revamp in as far as its quality control is concerned, it needs to have a lot of effort inputted in the appraisal investment, cost management, capital budgeting and market orientation. These are issues that are vital in maintaining the context as it is presently. The company is also supposed to explore a lot more issues and options of having their way into the markets and strive in strengthening the existing market shares.

 

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The History of Tanzania

                                                     

Introduction

Tanzania is among the largest countries in Africa; it covers a square area of 945,000 km. This area is similar to that of countries like France, Denmark, the Netherlands, the United Kingdom and the Republic of Ireland combined. Tanzania as a country was formed as a result of a merger of Tanganyika, which is the main land and the isles of Zanzibar (Pemba and Unguja) This merger was in the year 1964, giving birth to the present day Tanzania. Tanzania is a spectacularly beautiful country that is situated along the east coast of Africa at south of the equator between 11 degrees and 1degree. It is neighbored by Uganda and Kenya to the north, Zambia, Zaire, Burundi and Rwanda border it to the west and Malawi and Mozambique are its neighbors in the south. To the west, Tanzania is bordered by Zaire, Rwanda, Burundi and Zambia, and to its south are the countries of Malawi and Mozambique. It covers an area of 945,000 sq. km, the size of Denmark, France, the Netherlands, the Republic of Ireland, and the United Kingdom combined. Generally, the geographical composition of Tanzania ranges from Great Rift Valley and volcanic highlands to the lowland areas. She boasts of having Africa’s tallest mountain within its territory. In terms of wildlife, Tanzania is the leading country in the world regarding the area it has allocated to wildlife. The wildlife areas and national parks consume approximately 25% of the county’s area. Some notable wildlife conservation areas include the Selous Game Reserve which covers 55,000 sq. km. these are among the few conspicuous and dominant characteristics evident in Tanzania.

History

The country bears rich history dating back to more than two million years ago. This history is enriched by the fact that fossils excavated by scientist in the country are remains of early man believed to have lived over two million years ago. This makes Tanzania to be ranked among the earliest areas that were inhabited on earth. Later on, Tanzania is believed have become home for the Khoisan and Cushitic speaking communities whose main economic activities were gathering wild fruits and roots and hunting wild animals. However, new inhabitants arrived and settled in the country around two thousand years ago from the western region of Africa following different migration patterns. These were the Bantus. These migrations continued up to the 18^th century when the Nilotic communities who were pastoralists moved into the country and settled. Tanzania’s industrial development began with the early inhabitants with steel being produced. A group of east African people called the Haya were later to invent a furnace that was used in manufacturing carbon steel. The furnace could be used to produce heat up to 1,802 degrees centigrade. This was way back, approximately two thousand years ago. Another tribe known to have been producing iron is the Pare and especially the clan of Shana from the tribe. Engaruka, an area situated at the Rift Valley is one of Tanzania’s major sites as pertains to archeology. The area has a lot of crop cultivation going on vis-à-vis irrigation. At it’s the coast, early visitors of east Africa like the rich merchants and travelers found rest and this led to the wide practice of Islam between the late eighth century AD and early ninth century AD. At the coastal strip was Seyyid Said who laid claims to the strip as the sultan of Zanzibar. He later moved the center of his administration to the city of Zanzibar in the year 1840, during which Zanzibar was a center for slave trade by the Arabs. Zanzibar bares the Tippu Tip, which is among well known slave trade centers in the world then hitting the 770,000 number of slaves from the coast.

Colonization and independence

The present Tanzania without Zanzibar was conquered by the imperial Germany in the late 17^th century. Other German territories to be conquered in the same time were Burundi and Rwanda. The three countries were then amalgamated into the German East Africa territory. The events of the First World War and League of Nations later realigned the Europeans’ control in east Africa. This led to the British coming in to take control over Tanzania after a series of wars and wrangles. However, in 1961, there was a peaceful end to the British rule and Tanzania got its independence through a Julius Nyerere led organization. This organization was then transformed to Tanganyika African National Union, and it took a political face. Nyerere and TANU aimed at gaining total sovereignty for the then Tanganyika, becoming a leading organization with a political outfit in a year’s time. In 1960, Nyerere was appointed the minister of Tanganyika, which was still being administered by the British. In the year 1967, Tanganyika became fully independent and Nyerere became the prime minister of Tanganyika but were tied by the Arusha Declaration, compelling the country to embrace socialism. This saw the nationalization of industries and banks. The Arab dynasty in Zanzibar was overthrown by a revolution in 1963, paving way for the merger of the mainland Tanganyika and islands of Zanzibar in 1964 on April 26^th to form the present day Tanzania. Tanzania’s economy was later hurt in the late 1970’s. However, from 1970 to 1975 when China financed the building of the 1,860 km railway from Tanzania’s Dar es Salaam all the way to Zambia, Tanzania’s economy started a rebuild. The GDP of Tanzania later grew and there were reduced poverty levels in the mid 80’s after the government began borrowing funds from the international organization, International Monetary Fund.

Geographical Diversity

A beautiful scenery and mixed geographical terrain is Tanzania’s identity. Mt. Kilimanjaro, the highest mountain in Africa is found in country’s northeastern region alongside other mountains. Tanzania is sandwiched in between two prominent lakes. The largest lake in Africa, Lake Victoria lies in the north while the Africa’s deepest lake, Lake Tanganyika spreads to its west. Lake Tanganyika is prominent because it contains a queer type of fish that is unique to the lake. Lake Nyasa is found on the southwest part of Tanzania, completing the spectacular lake component of Tanzania. Further at the central part of the country lies a huge plateau characterized by large plains and fertile lands. The Zanzibar island lies offshore the eastern coast with the shores having high temperatures and high amounts of humidity. Wildlife is given frontline in Tanzania, with there being numerous parks and significantly large ecological areas. Tanzania is host to the well known national parks like Serengeti to the north, Mikumi to the south and Gombe to the west. It also plays host to Selous game reserve, Ngorongoro Crater and a famous chimpanzee site. Tanzania’s tourism is centered fundamentally on its geo wildlife. Other unique features in Tanzania include the Kalombo Falls, which is second in Africa in terms of height and which lies in the southwestern part of the country. This fall in Rukwa is one of the main tourist attraction sites in Tanzania. The Tanzanian government has also secluded Engaresero village for purposes of Maasai pastoralists. This has given the area a lot of biodiversity and uniqueness from other areas. Ol Doinyo Lengai volcano and Lake Natron spice up the geological diversity and ecological exemplary nature of Tanzania.

Climate

The climate in Tanzania is majorly tropical climate. There is a difference of temperature in the highlands with cold seasons recording up to 10 °C, while the temperatures are always 20 °C during hot seasons. In other areas generally, the temperature is usually above 20 °C. Hottest months are always November and December when the temperatures go to between 25 °C on the lows to 31 °C on the highs, while May and August are always the coolest months with temperatures going down to between 15 °C on the lows and 20 °C on the highs. Most mountainous regions do experience very low temperatures. In terms rainfall, Tanzania experiences two main rainfall periods in two different regions. For instance, in the southwest, western, central parts, rainfall occurs in a single period between the months of December to April. On the other side, the northern coast and north region experience rainfall in two different periods; between the months of October to December and then between March and May. Tanzania’s islands and coastal regions have explicitly the tropical climate, the regions with highlands being temperate while semi arid climate is experience at regions around the central plateau.

The People

The diverse presence of people having varied origin presents an interesting phenomenon to anyone visiting Tanzania. The country has been a mosaic of humankind since time in memorial, with a rich history of the origin of man.Various people from divergent origins have set foot in Tanzania ranging from the initial settlers of Bantu speakers whose origin can be traced from west and South Africa to the Shiraz Arabs with roots from Oman and Persia. Other people to set foot to Tanzania are those from Britain, Germans and the Portuguese. Since Tanzania achieved its independence from 1961, its population has been growing steadily and is currently sitting on a 26 million and above population. The country has a large number of ethnic groups which approximates to 120 ethnic groups of African origin. In the northwest region of the country dwells the largest of all the ethnic groups of Tanzania, the Sukuma. They inhabit a larger portion of Lake Victoria’s south part and are mixed farmers. The Sukuma people farm majorly in cotton and practice herding of cattle for a living. On the northern part of Tanzania lives the Hadzapi community. This community is majorly engaged in hunting of wild animals and gathering of wild fruits for their food. The highlands on the central part of the country are inhabited by the Iraqw who are always moving in an immobile posture and who are famously identified by their statuesque nature. The iraqw community practice farming and keep cattle for their economic needs. Northern part of Tanzania is dominated by the widely known Maasai community. The Maasai are a pastoral people and rare cattle for their livelihood. They value cattle as they believe cattle are a show of one’s status and an indicator of wealth. The Maasai culture is prominent and they share some of the national parks for pastoral reasons. They are conspicuous everywhere they are due to their garments that are blue and red in color and they do cover their bodies with ochre. The Chagga community lives on the northern part of Maasai steppe and majorly practices crop farming at the sides of the mountains. Their standard of life is fairly good as a result of the farming that they engage in. another community in Tanzania is the Hehe. They live in the highlands found in the district of Iringa and at the grasslands. The Hehe are known for their war related characteristics. Around Dodoma lives the Gogo community whose development has been marred due to inadequacy of water. Nyamwaezi community lives in the west. The name ‘Nyamwezi’ means people from the moon. This is because they live in the west. They were involved in long distance trading earlier but have since settled for crop farming. The nyamwezi were known to be very strong in the 19^th century due to their involvement in trade and political organization. The Ha community of Tanzania is an example of a community deeply rooted to mystical beliefs. They live in the solitude areas that are forested and bushy. They keep cattle which have long horns and do not put on clothes. Bark fibers and animal hides are used by the community to cover their bodies. The Ha community is usually talented in artistic expressions and is famously identified for their dances and colorful celebrations. In Tanzania there is a lot of harmony as a result of virtually everyone being able to speak the Swahili language apart from their motive language.

Culture

Tanzania has a blend of various cultures. The first aspect that displays their culture is their music. There is varied music. Tanzanians still value the traditional music grounded on African taste. Taarab, which is a type of music distinctively based on use of stringed instruments, is a value to the country. There is a modern type on hip hop like music which is commonly referred to as ‘bongo flava’ and which is widely accepted and enjoyed across the country. Tanzania has appreciated and famous singers of the taarab music genre. There is a type of music distinct to Africa called the ‘rumba’ which most Tanzanians refer to as ‘muziki wa dansi. The music is widely enjoyed in Tanzania and east Africa with most of the singers being organized into jazz bands. The Tanzania people value ‘ugali’ as one of their favorite dishes. Ugali is made from corn just like porridge only that it is usually made into a more solid and harder form. Tanzania is also home for many African writers known for their love for African literature and poetry. Among the prominent writers include Shaaban Robert, Julius Nyerere, Professor Julius Nyang’oro, Penina Mlama among others. Art is remarkable in Tanzania with its center stage being paintings which is usually done on canvas. The paintings are always colorful and beautiful artistic expressions of the environment and its contents. There is also the art of sculpturing from wood and stones to make images of animals and items depicting the variant culture of the Tanzanian ethnic composition.

Economy, minerals and resources

Tanzanian economy ails as a result of a slow paced growth. This is basically due to limitations in acquiring foreign currencies. Agriculture is the back bone of the country’s economy. However, there are still challenges as concerning acquisition and provision of credit facilities by the farmers. There is lack of appropriate equipment to match the modern farming methods in order to enhance commercialization in agriculture. However, Tanzania boasts of having areas rich in deposits of diamond and the country also has high production of tea, sisal, coffee and other cash crops. Moreover, Zanzibar is ranked third in the world production of cloves, thereby putting Tanzania’s economy on the rise. Tanzania has a cohort of wealthy merchants of mainly Arab and Asian origin who engage in businesses in the country. A majority of the people of Tanzania engage in subsistence farming. Most of Tanzania’s energy needs are sustained by charcoal and wood though the country produces electricity of up to 70% to sustain the increasing demand for energy. Offshore exploitation of gas at Songo Songo has been in the pipeline to salvage the situation of expensive oil importation.

Conclusion

Tanzania is a country whose history is characterized by rich diversity and interesting occurrences, it is a country that hooked itself off colonialism and has been on the verge of pulling itself to economical strengths. The diversity and mosaic nature of its people’s culture and tradition is exceptional. More still, it is an example of one of the African states with a large number of ethnic groupings yet has risen above ethnicity and tribal alienations. Its geographical composition crows up the already awesome country.

Reference

Gibbons, Ann (2007). The First Human: The Race to Discover our Earliest Ancestor. Anchor Books. ISBN 978-1-4000-7696-3.

Iliffe, John (1979) A Modern History of Tanganyika. Cambridge: Cambridge University Press

Kjekshus, Helge (1996). Ecology Control and Economic Development in East African History. London: James Currey.

Koponen, Juhani (1988). People and Production in Late Pre-colonial Tanzania: History and Structures. Uppsala: Scandinavian Institute of International Studies.

Monson, Jamie (2009) Africa's Freedom Railway: How a Chinese Development Project Changed Lives and Livelihoods in Tanzania Indiana University Press pp. 199 ISBN 0-253-35271-1 . Retrieved 2012-02-21

The East African slave trade. BBC World Service | The Story of Africa.

Waters, Tony (2007). The Persistence of Subsistence Agriculture: Life Beneath the Level of the Marketplace. Lanham: Lexington Books

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