Case study 1, part 1)

Not all the business activities lead to environmental damage but most of the air traffic
activities certainly affect the environment adversely. The environmental impact of
aviation occurs because aircraft engines emit heat, noise, particulates and gases which
contribute to climate change and global dimming. Airplanes emit particles and gases
such as carbon dioxide (CO2), water vapor, hydrocarbons, carbon monoxide, nitrogen
oxides, sulfur oxides, lead, and black carbon which interact among themselves and with
the atmosphere. Emissions of passenger aircraft per passenger kilometer vary
extensively because of differing factors such as the size and type of aircraft, the altitude
and the percentage of passenger or freight capacity of a particular flight, and the
distance of the journey and number of stops en route. Also, the effect of a given amount
of emissions on climate is greater at higher altitudes.

Case study 1, part 2)

Social responsibility of business implies the obligations of the management of a

business enterprise to protect the interests of the society.

According to the concept of social responsibility the objective of managers for taking
business decisions is not merely to maximize profits or shareholders’ value but also to
serve and protect the interests of other members of a society such as workers,
consumers and the community as a whole.

Embracing socially responsible policies goes a long way towards attracting and
retaining customers, which is essential to a company’s long-term success.
Case study 1, part 3)

Pressure groups are organizations set up to try to influence what we think about the
business and its environment. The primary goal of a pressure group is to influence
some aspect of the way a business operates, including which types of products
businesses manufacture. Pressure groups can exert influence by finding allies in the
media, by organizing protest marches, and by running marketing campaigns to express
their concerns. These pressure groups cannot be ignored; they should be effectively
responded by talking to them and by ensuring about their concerns particularly with
regards to impact of business’ activities on environment. Otherwise, these pressure
groups can really threaten the survival of businesses.

Case study 3, part A)

The demand for motorbikes is growing in Asia because of the following advantages of
motorbikes.

 Less expensive to purchase

 Generally better fuel economy
 Better performance per dollar - a motorcycle accelerates and brakes better
than cars costing many times more
 Easier to park
 Advantages in slow or stopped traffic
Case study 3, part B)

The government of Bangladesh has increased tariffs on imported motorbikes which it

wants to foster growth. This increases the prices of imported goods and creates
a domestic market for domestically produced goods while protecting
those industries from being forced out by more competitive pricing. Similarly, to promote
the motorbike industry, the government is focusing on roads and other infrastructure to
support the existing industries and also to encourage new entrants into the market.
Also, loans on low interest rates will also help many new motorbike industries to enter
into the market and will also help the existing companies to expand their operations by
having cheaper finance.

Case study 4, part A)

Ms. Xu decided to build a new factory in America because different costs like wages
and shipping costs increased significantly in China. Also, this would help in producing
and delivering products on timely basis to the American market customers, according to
their needs and demands. Moreover, the import tariffs were very high in USA for the
products imported from China.
Case study 4, part B)

Chesapeake Bay Candle will have the following benefits of expanding the business on an
international scale:

- New Revenue Potential

- Expansion in the target market
- Reduced Costs
- Improved profitability
- More on time order delivery
- Customer Satisfaction

Case study 5, part A)

Yeo’s conducted sampling tours across European countries to:

- Understand the potential market’s food tastes and preferences

- Perform a market study to understand the market's personality, economic
feasibility, market trends, financial cost patterns and market forecasts
- Do a financial feasibility study to determine if the move makes financial sense
Case study 5, part B)

Yeo’s did not introduce full range of its products into the European markets because:

- All the products might not have been according to the tastes of the new market
- They decided to introduce the products one by one to keep the market always at
surprise
- Some products might not have been allowed to be introduced because of social,
cultural or legal restrictions

Case study 5, part C)

Some of the possible problems include:

- Understanding the needs and wants of the new market

- Availability of resources like material, labor, capital etc.
- Cost structure will be different
- Competition in the European markets may be high
- Different government policies and regulations