Strategy of Local Direct Selling Companies in Hong Kong

Paper Summary:

Intersis (HK) Limited, a local funded direct selling company in Hong Kong selling similar kinds of products as big players in the industry, will be at the edge of being eliminated if it is not able to counter such emerging critical competitive challenges. The strategies to help Intersis (HK) Limited survive are many and various, and they are addressed throughout the paper. In addition, organizational analysis and other company-related information is addressed in the literature review in order to show that there are many issues that Intersis must address. Furthermore, this study thus focuses on facing emerging threats, and what strategy locally-owned direct selling companies need to conduct to cope with them. This allows these companies to counter and overcome the challenges to continued operation in the industry, and hopefully also lead them into a new business era.

Outline:
Chapter 1
Introduction
1.1 What is Direct Selling?
1.2 Background of Direct Selling Industry in Hong Kong and China
1.2.1 Direct Selling Industry in Hong Kong
1.2.2 Direct Selling Industry in China
1.3 Statement of the Problem
1.4 Significance of the Problem
1.5 Hypothesis
1.6 Scope of the Study
1.7 Profile of Intersis International (Hong Kong) Limited
1.8 Aims of the Study
1.9 Objectives of the Study
Chapter 2
Literature Review
2.1 Michael Porter
2.2 Intersis and the Five Forces Model
2.2.1 Rivalry among Competing Firms
2.2.2 Potential Entry of New Competitors
2.2.3 Potential Development of Substitute Products
2.2.4 Bargaining Power of Suppliers
2.2.5 Bargaining Power of Consumers
2.3 SWOT Analysis
2.3.1 Strengths
2.3.2 Weaknesses
2.3.3 Opportunities
2.3.4 Threats
2.4 Business Ethics
Chapter 3
Research Methodology
Chapter 4
Findings and Analysis
Chapter 5
Conclusions and Recommendations
Bibliography

From the Paper:

"Multinational companies often come under scrutiny because they do not always use their power in the best possible way. They have a lot of clout in some of the countries they do business in, and this allows them to get privileges that they would not normally have in their home country. There are conflicting views about multinational companies. Some see them as a helping hand for rich nations to continue to enslave poor nations, but others see them as the last hope for world peace. Multinational corporations often have technology that is far greater than that of some of the countries that they sell to, and they are held in high regard. Often their products are bought, even though they are more expensive, because of the advertising campaigns they use in smaller, less developed nations.
"Multinational companies exist under diverse legal systems, and often what is allowable in one country is not allowable in another. If one country feels that a product is dangerous, but another country allows the product to be sold there, it is up to the company whether they are morally and ethically comfortable with selling a product they know can cause harm simply because there is no regulation against it."

Sample of Sources Used:

• Berlau, John. Is Big Business Ethically Bankrupt?. 25 Feb. 2002. FindArticles.com. http://findarticles.com/p/articles/mi_m1571/is_10_18/ai_84019092
• Bernstein, Simon. 2000. "Shell in Nigeria". Business Students Focus on Ethics. Eds. Ryan, Leo V., Wojciech W. Gasparski, & Georges Enderle. New Jersey: Transaction Publishers.
• Donaldson, Thomas, and A. R. Gini. 1984. Case Studies in Business Ethics. 2nd ed. New Jersey: Prentice-Hall.
• "ethics." 1988. Def. 1. The Random House College Dictionary. Revised Ed.
• Garrett, Thomas M., and Richard J. Klonoski. 1986. Business Ethics 2nd ed. New Jersey: Prentice-Hall.

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