New Economy and New Culture

Global Business Environment

New Economy and New Culture

Moving towards a New Economy. Traditionally an economy was defined in terms of deciding factors influencing the distribution of limited and scarce resource among the competing forces in highly competitive environment. The scope of the subject was limited to efficient performance of production processes. The agenda of fairness has been rarely incorporated in the economic system.

Economic theories were not contributing enough to resolve the economic and practical problems. Freedom of mind lost its connection with reality and introduced hypothetical theories to resolve the economic issues prevalent in the environment. These theoretical frameworks present comprehensive and ample method of evaluating the individual behaviors but at same time produce variety of testable issues which demand extensive and profound scrutiny.

Behaviors of individuals are examined and analyzed by numerous economic endeavors and economic agents. It is very difficult to define culture as it implies numerous meanings, transformed into various aspects without any mutually agreed definition.

Culture is associated with the subject of humanities and social sciences and its meaning varies widely across disciplines. It ascribed different meanings in different centuries and the most recent one focused on the intellectual development of entire civilization and entire lifestyles of individuals which supplement the cultural values. Culture is social frame work which defines the attitudes, beliefs, norms values shared by large group. The main objective of relating economy with cultural dimensions is to investigate the role of cultural instruments in economic development and economic performance of the society (Throsby, 2001).

New Economy and New Culture

Some of the extremists believed that new economy would be free of all the inflationary problems which would lead to recession or economic downturn because of technological development. According to (Wired, 1998) new economy would evolve with the help of technological change, globalization in the economy and skills and creativity of individuals in the society.

Development in information technology would largely impact the work in production industry. Technological change is revolutionary change which enhances the workers ability and skills and affects the social choices of individuals (Zuboff, 1988).

Globalization would narrow down the geographical boundaries and expand the market across the borders and scope of the new economy would be globalized. This globalization would redesign the rules of competitiveness in the economy. It has differential effect in the society and has enabled to achieve free market mechanism against protectionism (Brink Lindsey, 2001).

The effect of globalization has also deprived local culture from its unique cultural factors. So the cultural factors have also evolved along with the economy because of dramatic changes in the world. New economy demands completely new skill set among workers. Ne economy values creativity and innovation of the individuals to compete in global market.

New economy capitalizes on the value of intangible assets and provide dynamic and information rich environment for operation to its workers. (Malone, 1999) New economy has produced heterogeneity and flexibility in cultural instruments of the society and has established unique relationship between culture and economy. Contribution of creative sector in the economy has highlighted that the problems of cultural policy are almost the same as problems of economic policy.

New economy is described as global, networked and information rich economy with creative and innovative workforce. It generates niche- marketed goods and services staffed by intelligent and culturally rich workers and satisfy the creative and cultural needs of individuals. Cultural needs of individuals evolve with the growth in creative sector of the society (Healy, 2002).

The focus of cultural values has shifted from direct economic contributions produced by creative industries towards indirect economic benefits like creativity and innovation, employability and social inclusion. Social and cultural values, capital and human characteristics are highly considered factors in the formulation of cultural policy which is associated with the economic policy (Böhm & Land, 2009).

Development in the work life and labor markets demands the understanding of motivational factors of workers. Creativity and innovation has generated new appeal for culture in the new economy. Cultural context of economics can be easily explained as economic agents observe and breather in the cultural environment which regulates their behaviors and outline their preferences. Cultural economy helps to scrutinize the social and economic dimensions of the society.

Contemporary Business and Economy

Evolution in the economy and international standards have created intimidating business environment for several multinational companies and their brands operating globally. Newly evolved business environment poses challenges of economic downturn, high cultural sensitivity because of cultural shifts in the society, lack of motivation and job satisfaction among the workforce and corporate scandals leading to lack of trust in capital markets.

These challenges are attributed to globalization of market, development in information and technology and diversity in the workforce. Organizations operating in this highly unpredictable working environment are struggling to restore their trust in the corporate world. Some organizations are trying to regain their position in this hostile environment by setting ethical standards, strict rules, establishing transparent processes, addressing public concerns, performing cultural audits and by establishing social challenging performance targets. All these efforts pave path towards the formation of new economy and new culture collectively described as cultural economy (Goodman, 2004).

Organizations in contemporary business environment are highly susceptible to social, cultural and moral issues of the society. Changes in the operating environment of businesses largely sway the skill requirement of businesses.

Business organizations are adapting and transforming their operating activities according to the cultural, social and moral standards of the society. This transformation largely influences the competitive position of the business in competitive landscape. It also helps in developing positive image and repute of the business in the society.

Change agents like economic environment, technology and globalization have forced the organizations to capitalize on the cultural economy in order to adapt and perform landmark success in their industry. Implications of contemporary issues raised by the environment could be easily modified and capitalized by balancing their business environment with new economy and new culture (Crane & Matten, 2010.).

Importance of New Economy and New Culture

Cultural processes and values adapt to material environment. The role of culture in the economic development of third world countries could be effective by identifying their cultural integrity and cultural aspirations of poor people and improving their material circumstances according to their cultural traditions. Development of culture and economic circumstances are intertwined in the society.

Development projects introduced by NGOs in under developing countries for raising their living standards and economic conditions largely depend on the understanding of their cultural traditions. This explained that culture determines the scope of material process in economic context (Throsby, 2001). The driving force in international market is culture and creativity. The impact of culture is evident not only to the economy but also to their society. Increase importance of culture in economy and society has transformed the way of creation, consumption and enjoying cultural products.

Culture is not only significant mean towards economic growth but also fundamental factor in social cohesion and development of human civilization. Cultural industries deal with the conception, production and commercialization of creative products which have social and economic importance in the market.

From 1999 to 2003, growth in cultural and creative industry in European Union was 12.3% more than economic growth. In 2004 cultural sector employed 5.8 million people in Europe. Moreover the jobs created by cultural and creative sector provide sense of assurance and commitment, job involvement and satisfaction to their workers.

Cultural industries contribute towards enhancing the economic performance of the countries. The Great Wall of China as cultural heritage is source of tourist income and attracts national investment. It enhances the value of the brand of the national products and mobilizes the economy. This example illustrated the economic and social contribution of culture in the society (Pol, 2007).

The concept of knowledge-based economy provides economic support to creativity and talent and emphasizes on the framework of cultural growth and development. Traditional production factors have evolved and change in the new economy. Key underlying factors of social and economic growth are knowledge, creativity, innovation and skills. It has not only changed the economic structure but revolutionized the development of economy and society.

Economic growth and development largely relies on the application new ideas and creativity in the cohesive economy. Influential component of culture, behavior of individuals and social groups emphasize and lead toward the development of society. The idea of cultural materialism enabled better understanding of the relationship between culture and economic development. Development of society largely depends upon the development of culture and arts.

The UN is also taking initiatives, passing resolutions and policy papers to ensure that to introduce cultural industries in the policy formation of developing and under-developed countries. This explained that efforts are being done to shift from narrative importance of cultural economy towards the performative. Realizing the importance of cultural economy, international and national organizations are taking practical initiatives to incorporate cultural dimension in their economy (Anon., 2009).

Qualitative research on arts and culture have exhibited that it positively contribute towards the better health and well-being of individuals, improve the social identity and cohesion, community development and economic benefits to the society. Cultural and art oriented projects enhance the personal motivation of individuals and provide social esteem leading to healthy benefits to the society. Cultural economy fosters intercultural understanding which helps to accommodate diversity in cultures and populations.

Cultural exhibitions and festivals played significant role in validating the diversity in the workforce and overcome the problem of social isolation in the work environment (Coalter., 2001). Highly competitive nature of business demands the workforce to be highly motivated and satisfied which in turn would contribute towards the high productivity and improved economic performance. Economic effect of art and culture could be explained by dollar value generated by creating jobs for artists, investment in tourism and revenue generated from the cultural artifacts. Cultural economy helps in the creation of energetic and creative work environment which is very crucial for contemporary business and economy (Azmier, 2002).

Historically business environment was confined to geographic boundaries but globalizations and development in technology has revolutionized the business environment. Human capital is considered as most important asset for the enhancing the productivity and economic activity of the businesses.

Cultural economy nourishes the creative and social needs of employees and work as knowledge multiplier in securing sustainable competitive advantage for organizations. Cultural economy has also enlightened the creative insight of businesses to develop products and services matching the cultural traditions and integrity of the people. It is also encouraging workforce to actively participate in contemporary business environment. Policy makers and businesses largely comprehend the significance of cultural industry in the economy and its importance to survive in global and competitive market.

In contemporary business environment market value of the products largely rely on the uniqueness of products its performance and innovative appeal in establishing unique competitive edge from the market. Customers highly value the innovative and unique product which is coherent with their cultural identity (Thomasian, 2009).

The twentieth century is dominated by knowledge workers and challenges of global market place. These global challenges demand the creativity and innovation in the business processes and products offered by businesses. Cultural economy serves the dynamic needs of global marketplace and contributes creativity by ensuring the sustainable competitive advantage based on creative and innovative workforce.

According to (FREY, 2009) institutional effect of culture on economy is extremely challenging to evaluate. Some of the researchers examine the institutional effect by estimating social value created by cultural institutions. Social value is subjective in nature and cannot quantify the value created by cultural institutions in the society. Cultural economics is considered as branch of economics which incorporates psychological and social elements in economic to influence the intrinsic motivation of individuals.

Monetary value of economic effect of cultural economy could be easily evaluated by the revenue generated, creation of new jobs and with the ancillary businesses attached to it. Hence this new term of cultural economics is largely affecting and supporting the contemporary businesses and economy. It helps to overcome the challenges of competitive, global and technologically efficient market place and intrinsically motivate it workforce by fulfilling the cultural and social needs

Relationship with the Banking Industry

The agenda of this study is to investigate the normative assumption which states that cultural economy completely relies on the real economy of the world. The business environment under study is financial services sector or banking sector. Cultural economy has evolved and restructured its long term relationship with the economy and social factors.

The basic assumption is that cultural economy is largely substituting the finance and manufacturing industry in the urban society. The research conducted by Pratt in 2012 explained that normative connection between culture and economy is inconsistent. The experience of recent recession has forced the economist to reconsider the relationship of culture with the economy.

The assumption that is recession cultural industry would hit a setback was completely rejected when in recent austerity creative industry flourished as compare to other periods. While banking industry was highly leveraged and with risky loans caused failure of banking systems. The problem rose because of over extension of assets which multiplied the problem and state financed the bank’s debt it lead to the issue of sovereign debt (Pratt, 2012).

The relationship of cultural economy and financial institutions like banks are questioned frequently because of financial and sovereign debt crisis. Investigation of this relationship leads to the formation of new economy concentrated on the logical position of cultural economy.

Social mobility of people from lower class and middle class towards cultural products to have fun and luxurious aspect of cultural factors forced cultural market modernize the way of entertainment. Banking industry provided finances to Greek state but with the shrinkage in public or state investments cultural consumption by the people remain same. In comparison to financial sector it flourishes and exploits the city resources (Souliotis, 2013).

These empirical researches exhibit that cultural economy has more complex and intricate relationship with the banking industry. In case of recession cultural industry and financial service industry move in opposite directions. Prior researches could not clearly identify the underlying reason behind this deviation form normative assumptions of cultural economy. Moreover it is proposed that economic desire is based on the individualistic behaviors while cultural desires are based on collective behaviors of the society.

These evidences explained the fact that banking industry is not influenced or affected by cultural economy. These two parts of economy stand alone. Underlying reason may be the social mobilization of the social classes in economy. Upward social mobilization and luxurious entertainment were some the driving forces which motivated the cultural consumption even in austerity.

While at the same time shrinkage of public funds and shortage of bonuses for the employees of financial services in the period of recession explained that it portrays negative relation during crisis. There may be some hidden underlying variables which demand more research on this complicated phenomenon between cultural industry and banking sector.

References

Anon., 2009. Measuring The Economic Contribution Of Cultural Industries. 2009 Framework for Cultural Statistics Handbook No. 1. Montrea: UNESCO Institute for Statistics.

Azmier, J.J., 2002. Culture and Economic Competitiveness: An Emerging Role for the Arts in Canada. Canada West Foundation.

Böhm, S. & Land, C., 2009. No measure for culture? Value in the new economy. Capital & Class, 33(1), pp.75-98.

Brink Lindsey, 2001. Against the Dead Hand: The Uncertain Struggle for Global Capitalism. New York: Wiley.

Coalter., F., 2001. Realising the Potential of Cultural Services: Making a Difference to the Quality of Life. London: Local Government Association.

Crane, A. & Matten, D., 2010.. Business ethics: Managing corporate citizenship and sustainability in the age of globalization. Oxford University Press.

FREY, B.S., 2009. Cultural Economics. CESifo DICE Report.

Goodman, D.M.B., 2004. Meeting the Global Challenges of the Contemporary Business Environment. New York: Royal Society for the encouragement of Arts.

Healy, K., 2002. What’s New for Culture in the New Economy? The Journal of Arts, Management, Law and Society, 32(2), pp.86-103.

Malone, M.S., 1999. Reflecting on a New World of Business. In Impart, pp.36-42.

Pol, H.v.d., 2007. Key role of cultural and creative industries in the economy. UNESCO Institute for Statistics.

Pratt, A.C., 2012. A world turned upside down: the cultural economy, cities and the new austerity. In Pratt, Andy C. “A world turned upside down: the cultural economy,. Proceedings of the Regional Studies Association Winter Conference., 2012.

Souliotis, N., 2013. Cultural economy, sovereign debt crisis and the importance of local contexts: the case of Athens. Elsevier, 33, pp.61-68.

Thomasian, J., 2009. Arts & the Economy: Using Arts and Culture to Stimulate State Economic Development. Washington: National Governor Association.

Throsby, D., 2001. Economics and Culture. Cambridge University Press.

Wired, 1998. Encyclopedia of the New Economy. Wired Magazine.

Zuboff, S., 1988. In the Age of the Smart Machine: The Future of Work. New York: Basic Books.

The Economic Environment Project

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Brand Equity Marketing

International Marketing Plan

Since the beginning of time, men and women have always remained fashionable in one way or the other. From clothing made out of loin to cloaked attire, from gown and coats to the fascinating accessories of the 19th century, fashion has indeed been prevalent in every season from year to year hence renovating their way of dressing from time to time (Miller & Mills, 2012, 1471-1479). Brand Equity Fashion in the past, can be also contributed to the elite fantasies held by people, right up to the mid-1850s, when the first Paris based British professional fashion designer emerged. Initially, Paris was the only place that reined the fashion industry, however soon other names such as Milan and London caught up, introducing their own line of fashion niche. If the fashion industry remained stagnant then it would have already become unstylish and died. Subsequently, today there are endless designs and customer segments, prevalent within the fashion sector (Miller & Mills, 2012, 1471-1479).

In today’s fast paced world of fashion, the success of global retailers depend a great deal on their ability to be able to put the right items in the right style or size in the hands of the consumers but at the right time. This may seem to be a simple concept but can at times be quite tedious to execute (Li, Li & Kambele, 2012, 1516-1522).

After meeting with Andrew Ramroop and hearing the success story, I have decided to follow his example and penetrate the international market with my newly established fashion clothing and accessory brand, called El Lujo.

SWOT Analysis

SWOT analysis, a form of strategic planning, is ideal for volatile fashion industry. The SWOT analysis evaluates “strengths, weaknesses, opportunities and threats” involved with the set business objectives (Barney, 2008, 99-120). They consider both internal and external factors. The analysis then defines the favorable and unfavorable factors and their potential impact on the ultimate goal.

A SWOT analysis covers four areas of consideration. First, the “strengths” take into account the internal attributes that positively influence the business objective. The second area, “weaknesses”, identifies possible weak points within the control of the company which may result in a negative outcome (Barney, 2008, 99-120). The third category, “opportunities”, analyses the external conditions that favor the achievement of the final goal. Finally, there are the external “threats” that are beyond the control of the company to be assessed.

Strengths

Some of the strengths of El Lujo include clearly manifested competence, adequate financial resources, the high competition, a good understanding of consumers, clearly articulated strategy, the use of economies of scale, its own unique technology, a reliable distribution network, high fashion R & D and etc.

Weaknesses

Any unusual or unnecessary cost, lack of reputation in the high-end fashion market or lack of presence in a particular region are considered as weaknesses. The loss of certain aspects of competence, lack of access to finance, lack of analysis of information about consumers, the weakest market participants, lack of a clear strategy, inconsistencies in its implementation, high costs of production, obsolete technology, the loss of depth and flexibility of management, weak distribution network, weak positions in R & D etc. are all weaknesses that El Lujo may face.

Opportunities

Entering new market segments, expanding the range of luxury goods, complacent competitors, the reduction of trade barriers, enabling economic, political and social conditions, resource availability, etc. are the opportunities that El Lujo will be considering as opportunities for business profitability (Barney, 2008, 99-120).

Threats

Economy and the politics are the principle threat to a fashion brand. Political instability in the region of raw materials supply, trade embargoes, and financial crises result in limited consumption expenditures etc. are some of the threats to the accessibility of raw materials, distribution, exposure of brand and brand recognition, and consumer buying (Barney, 2008, 99-120).

Marketing Analysis

Fashion orientation is considered as an important source of new market research related to the worldwide clothing industry. Consumer behaviour, lifestyle, and shopping purpose can affect activities throughout the fashion supply chain. However, the fashion industry is an increasingly global business with considerable variations in the cultural, social, and economic aspects of the participants (Cadogan, 2009, 119-130). Consequently, the practice of fashion marketing is not uniform at a national or international level, and differences are necessary to appeal to different subcultures. That’s why researchers and managers have been paying increasing attention to the effects of acculturation on fashion orientation. Most fashion designers allocate 20-30 percent of their expenditures to marketing efforts, partly funding customization of marketing campaigns to appeal to different subcultures(Li, Li & Kambele, 2012, 1516-1522).

Luxury fashion brands have become a powerful force in the world and have grown not only in numbers, but in terms of influence and visibility. They have, “moved from backstage to center stage in world market, and are exerting their power and influence in every aspect of international relations and policy making” (Cadogan, 2009, 119-130). Today, international fashion brands play a major role in reducing boundaries and creating international successful brands. Although very numerous, the international business sector is highly consolidated with the largest 20 international organisations accounting for 50% of revenues and sales (Gilbert, 2007, 25-26).

Brand Equity

Fashion advertising studies have revealed that consumers have definite preferences for advertising. According to findings by Bowman, (2010); apparel styling affected evaluations of advertising appeals. Bowman, (2010) additionally observed that high self-monitoring subjects were willing to pay more for items if the item was publicized with a picture, and were all the more ready to buy an item if the image appeal was promoted. Low self-monitors responded all the more positively to item quality oriented advertisements and were willing to pay more for items if they were publicized with a quality orientation. Low self-monitors were additionally more eager to pay more if the item be promoted with a quality orientation, and all the more ready to buy an item if it had a quality claim.

Brand Equity

In addition to the challenges of increased competition, international organisations are facing a crisis of brand equity. Bowman, (2010) suggests that at the root of this crisis, is the extent to which international organisations lack brand representation and accountability to the consumers. In addition, critics argue that international organisations lack proper branding strategies to justify their products and services in terms of values.

Current environments with high levels of globalization have led to large enterprises manufacture their products in less developed countries to reduce their production costs, while firms in developing countries do in other developed countries to take the prestige of those markets (Barney, 2008, 99-120). From the demand side, consumers rely heavily on extrinsic signals, such as trademark, perceived quality or price in the when evaluating products. Under such scenarios, it is increasingly difficult to achieve sustainable competitive advantage by Porter. One of the attributes that have the potential to achieve sustainable competitive advantage, both domestically and internationally, is the country of origin or the country image of a product for (Barney, 2008, 99-120). Therefore, it is becoming of greater interest to countries to implement marketing strategies would achieve a position against other countries. Furthermore, include the strategic role played by brands to the great diversity of offerings undifferentiated, saturation in the media and the influence of new technologies information (Azuma & Fernie, 2003, 4). The increase marks the perceived usefulness and the desire to possess them, are indicators of safety for consumers and sources of origin, since activated signs of its origin among consumers when they come into contact with the same (Li, Li & Kambele, 2012, 1516-1522).

Li, Li & Kambele, (2012) suggests that luxury fashion brands like El Lujo have three strategies open to them: incremental change (which he suggests may be “too little too late”); global marketing, defined as the aggressive marketing of the organisation’s brand; and third, new branding strategy, that leverage change by working in collaboration with “markets, businesses, ideas and attitudes.” It is this third option that Li, Li & Kambele, (2012) consider potentially the most attractive route forward for international organisations.

To focus on the impact of a particular segment of the market, luxury fashion brands like El Lujo must use commodity branding and develop appropriate and develop the theme of Brand Equity or Brand Value. The strategic management of brands is to design and implement marketing activities and programs intended to create, measure, and manage brands to maximize value.

One of the key concepts of this process is called “brand equity”, defined as the value added which provides products and services. This value is reflected in how they think, feel and act consumers regard to the brand, or price, market share and profitability that creates the brand for company (Aaker & Joachimstaler, 2000, 347-356). For branding strategies to be successful and generate brand equity, consumers should be convinced that there are significant differences between brands of the same category products or services. This is the reason for the branding: promote the differentiation of a mark for its competitors and its products very similar (Aaker & Joachimstaler, 2000, 347-356).

To achieve high brand value it must achieve a series of attributes that are indicative of their strength. (a) “Differentiation” refers to a strong brand should be unique and distinguishable from other brands by consumers. (b) The “relevance” indicates the attractiveness of the brand: to what extent my brand communicates attributes important in satisfying the desires of my customers? (c) A strong brand should achieve “high estimates “, a high degree of appreciation, affection and respect that the brand receives. (d) The brand strength is associated with a “high knowledge” and level of familiarity and intimacy of consumers with the brand. Finally, a mark must be achieved through communication symbols and a (e) shows strong associations Identity positive light on what it means and what the brand promise to consumers (Aaker, & Joachimstaler, 2000, 347-356).

A strong brand is not just about trademark, logo or name. Branding is a procedure that relates to communication, company strategy and target market (Abell, 2008, 45-58). There are many elements attached to branding such as images, association, culture and stories. The elements of brands can be inspired by consumers and Internet users. Strong brand is exists among consumers, as it is hard for individuals to switch from one strong brand to another brand and abandon their original conventions. Due to the nature of strong cultural collectivism in China, the social context of brands becomes an important characteristic (Abell, 2008, 45-58).

Strong brand can help consumers by reducing the perceived risk in their purchase behavior. Perceived risk is about the acceptance of uncertainly and the complex result of purchasing product or service (Abell, 2008, 45-58). There are 6 dimensions included in perceive risk: “performance, financial, opportunity/time, safety, social and psychological risk” (Azuma & Fernie, 2003, 4). Strong brands can give consumers a promise of suitable value on the goods or services they offered. Through getting this promise consumers can make a stronger purchase decision on the strong branded products.

Creating a strong brand can also drive shareholder value. The initial target of the boardroom is to create and sustain shareholder value, and get return from the competition process. One way to achieve this target is to build a brand with strong brand equity. Tim Ambler proposes: “Brand equity is the reputation assets that any successful business builds in the minds of customers and other stakeholders” (Azuma & Fernie, 2003, 4). It is also one of the reasons that capital in the market is higher than the value that set before. The future financial performance of a brand can be predicted according the strength of its brand equity.

Marketing Mix

Product: Marketing facets of products as per the details of their products or services, and how it identifies with the needs of consumers. The extent of a product mostly incorporates supporting components, for example, guarantees, warranties and product quality that is principally focused.

The wide range of fashion product by El Lujo is safe to use and are produced through natural resources that focuses the beauty of the customers. The fashion products are more focused and are taken into account through the advertisements and promotional strategies. The products of the body shop are more focused on the quality.

Price: This means the procedure of price fixing of product, together with discounts. The price does not require to be fiscal, yet it may be what is traded for goods or services, for example, time, attention, or energy.The price remains a fundamental component of the marketing mix given its impact on market share and profitability. Despite popular belief, fashion products do not cost more than conventional products, and are therefore addressed to a wide audience. It takes on average 500€ to 1000€ for the fashion products to be purchased by the customers, who love them. It is found that the economical premium brands are even less expensive than their conventional counterparts.

Placement: This involves to how the goods reach the consumers, for instance, position of retail or point of sale. The third P has additionally been called Place, which refers to the channel which is used to sell a product or service (e.g. retail versus online), which geographic area or market, segment (young generation, families, business, and so on.).

Promotion: The promotion activities consist of sales promotion, advertising and personal sales. Branding alludes to the different strategies for promotion of product, brand or organization. Distribution systems are turning out to be more diverse, they are no more restricted to traditional clothing store and accessory store, but reach out to all circuits: perfumery, beauty products, online stores, etc

References

Aaker, D. A., & Joachimstaler, E. (2000). Building strong brands. New York: Free Press. Aaker, J. (1997). Dimension of brand equity personality. Journal of Marketing Research, 34, 347-356

Abell, D. (2008). Strategic Market Planning: Problems and Analytical Approaches, London, Prentice-Hall, 45-58

Azuma N., Fernie J. (2003) Fashion in the globalized world and the role of virtual networks in intrinsic fashion design, Journal of Fashion Marketing and Management, Vol. 7. No. 4

Barney, James. (2008). Firm resources and sustained competitive advantage.” Journal of Management 17.3: 99-120

Bowman, D. (2010). Market response and marketing mix models: trends and research opportunities. Boston. 77-90

Cadogan, J. W. (2009). Marketing-mix strategies – distribution strategy and pricing strategy. Los Angeles U.S.A.: Sage. 119-130

Gilbert, D. (2007) “Retail Marketing Management and Brand Equity”, New York, Prentice Hall, pp.25-26

Ko, E., & Megehee, C. M. (2012). Fashion marketing of luxury brand equity: Recent research issues and contributions. Journal of Business Research, 65(10), 1395-1398.

Li, G., Li, G., & Kambele, Z. (2012). Luxury fashion brand equity and consumers in China: Perceived value, fashion lifestyle, and willingness to pay. Journal of Business Research, 65(10), 1516-1522.

Liu, F., Li, J., Mizerski, D., & Soh, H. (2012). Self-congruity, brand equity attitude, and brand loyalty: a study on luxury brands. European Journal of Marketing, 46(7/8), 922-937.

Miller, K. W., & Mills, M. K. (2012). Contributing clarity by examining brand equity and luxury in the fashion market. Journal of Business Research, 65(10), 1471-1479.

Moore, C. M., Doherty, A. M., & Doyle, S. A. (2010). Flagship stores as a market entry method: the perspective of luxury fashion retailing. European Journal of Marketing, 44(1/2), 139-161.

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RFID Tags Construction

Role of RFID Technologies in Building Construction Supply Chain Management

RFID Tags is a technology that is currently growing in use in other industries such as manufacturing and retail (Hannon, 2007).

Any construction business relies on its supply chain for the effectiveness and the speed of construction task. An overflow of the supply can create a situation of high clutter while not enough supply can easily become the bottleneck issue for the whole construction project. For such reasons, it is extremely important for the construction companies and businesses to monitor every process of supply management and determine how the supply chain system is maintained. Supply chain management includes placing orders for the supply, estimating what quantities of the products are required for different construction tasks, and ensuring that the construction workers always have enough supply of the resources to continue the work. The supply chain management also handles the work of finding alternatives to the existing supplies in case of a dispute or supply interruption. Ensuring prompt delivery of supply and an effective monitoring system has always been a challenge to the management of supply systems. Fortunately, the RFID (Radio Frequency Identification) has emerged as a perfect solution to this issue.

Background of construction technique

Any construction project follows basically the same procedure and a large part of it depends on the supply of the raw materials and the other equipment. Such items are the essential element of the whole project. The construction techniques are the traditional ways of using the supply chain management to develop the project from the scratch. While the construction project might differ in terms of techniques and the scale of the project, the supply chain method has remained utterly unchanged since the initial times. The contractors or developers initially estimate the resources required and then place it in the warehouses or at the site of construction. This makes the whole scenario very cluttered as it takes a lot of time to find the right piece of supply when it is required costing a significant amount of time in construction.

The new technique of RFID tags on the supply resources puts an advanced approach to the whole thing as it gives the task an enhanced process of knowing what goes where. Many projects depend on the small building blocks and with the help of RFID tags, the construction engineers can make it very easy to find the right piece of supply when it is needed. This is a method that saves great amount of time and also increases the accuracy of the whole construction task.

Advancement of the RFID technique

Nowadays a number of big and small construction firms are making use of RFID tags in the process of construction, locating the supply and resources and in placing the building blocks to their right place. The technology of Radio Frequency Identification tags have made great advancement in recent times and have been proved highly useful in various construction tasks. With constant development in this field, the RFID tags are now more versatile, reliable and cheaper than before. Now it is possible for a construction business to make use of RFID tags in the resources it is using and to tag every building block with help of RFID tags without putting a financial overhead on the organization. This technology doesn’t cost a lot these days and it is a onetime investment only that remains beneficial in all of the construction tasks. The construction companies can use these tags in placing the building blocks in their right places, finding the blocks and other tools easily when needed with help of tag readers. This whole approach increases the convenience of supply chain management tasks and improves the speed and efficiency of the task.

The shortcomings of the existing techniques

Even though the RFID technologies provide the potential benefit to construction industry for tracking the construction components, several limitations related to practical applications can be identified (Jang, 2007).

The development of RFID technique in the construction tasks was required due to the number of shortcomings that exist in the present situation of developing a construction projects. It is true about every large scale construction project that due to large number of resources available on the site, there is always a great deal of clutter present. Finding the right resource at the right time becomes extremely difficult, and it costs a lot of time sometimes to find the right resources when needed. This is a real situation in almost all the construction tasks and it slows down the construction process. Most companies keep some time in the estimated construction time reserved for this purpose only.

Most construction plans make use of small building blocks that go on in the actual building to finish the construction task. Putting these building blocks in the right place requires some efforts and is essential for the construction project. However, finding the building blocks and then identifying their right place in the project takes a lot of time with the current manual techniques. The site manager may need to search through every building block to find the desired one, and in a large scale construction task, there might be thousands of blocks that could take a great amount of time. To overcome these shortcomings, the construction companies need a different approach or technology that can speed things up and they have got it with the RFID tags technology as it will provide higher accuracy and better alternative of locating the resources.

Modern Approaches to Construction Supply chain management

Multiple RFID readers are deployed at fixed locations to receive the signals of active tags for tracking the tagged objects (Ustundag, 2012).

The modern approach in the supply chain management follows the rule of developing the habit of tagging all the resources and building blocks with RFID tags. This is a great way of keeping track of all the processes that are going on with the construction task. While the RFID tags might cost some nifty investment to the company in its initial implementation, these devices can really boost the speed of the construction and can help the company in finishing the whole work sooner. Each time the company finished a work in less time, that saves money to the company as the staff and machinery remains off duty or out for a new task.

The RFID tagging technique makes use of Radio Frequency identification tags which are placed on the various supply elements and building blocks for correct identification in the later processes of construction. This approach can very well assist the construction managers in keeping track of the individual elements and their placing at the right place. Not only it keeps the manager informed about the location of a particular supply item, but it also reveals the information about the available supplies to make sure that the manager knows when there is a need of new supply order. RFID technology is really revolutionary in the construction methods and it will surely result in great benefits.

Benefits of the modern RFID tags technology in construction business

RFID is a branch of automatic identification technologies using radio frequencies (Ruwanpura, Mohamed & Lee, 2010).

The use of RFID (Radio Frequency Identification) can surely boost the speed of the construction tasks and may very well result in modification of the present technology to a higher extent. A construction company can monitor its supply chain in a better way and certainly a more efficient way with the help of this technology. The benefits of this technology are listed below in regards to the construction supply chain management:

Increased speed: The RFID tags make it easier for the managers and the field staff to locate the items and supplies quickly. This helps the speed issues of the construction task and makes the whole thing go a lot faster. Even in the tasks involving placing of the building blocks for the construction process to complete, this helps the site mangers or the Crain operators to easily find the block that needs to be placed. Overall, the RFID technique is precise and fast, and any construction task can benefit from both of these aspects.
Accuracy: use of RFID tags provide every building block or supply item a specific code and this is not just limited to that as it can also store other information with the code. This information can involve details like where the block needs to be placed, what are the exact dimensions of it. This kind of information is readable through the RFID tag reader. This kind of technology ensures that no building block is placed at wrong place due to human error or technical mistake.
Long term costing: RFID tags purchasing and implementation costs a little in the first phase of development. However, it quickly recovers its cost in one or two construction projects with increased profits to the company. Finishing projects quicker helps the company save money and this becomes a profitable investment for the company.

Conclusion

The RFID based tagging technology is a great technique to manage and monitor the supply chain in a construction business. The RFID technology will enhance in the near future and will reach a level that can better assist the managers with the development tasks of construction projects. The reliability of the tags will increase and so will the lifespan of the tags. In future it will be possible to simply monitor all of the RFID tags through a single computer screen to measure if all of the building blocks in the construction project are placed at the right place or not. Anyhow, the use of RFID tags in construction supply chain management has a bright future.

References

Ustundag, A. (2012) The value of RFID: Benefits vs. costs. Springer.

Hannon, J. (2007) Emerging technologies for construction delivery. Transportation Research Board.

Jang, W. (2007) Embedded system for construction material tracking using combination of radio frequency and ultrasound signal. ProQuest.

Ruwanpura, J., Mohamed, Y., & Lee, S. (2010) Construction research congress 2010: Innovation for reshaping construction practice. (Vol. 1, p. 247) ASCE Publications.

Hunt, V., Puglia, A., & Puglia, M. (2007) RFID: A guide to radio frequency identification. John Wiley & Sons.

Finkenzeller, K. (2010). RFID handbook: Fundamentals and applications in contactless smart cards, radio frequency identification and near-field communication . John Wiley & Sons.

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Cross-Cultural Communication

The Importance of Effective Cross-Cultural Communication in Business Today

Currently, globalization of business, international expansion of market and rising competitiveness has increased the interdependence of business. With the expansion of business into multiple countries, sensitivity towards the cultural differences has also augmented in the corporate environment. Global interdependence of economy has forced the business owners to provide ample opportunities of cross cultural communication to their managers. It would help in gaining skills and expertise in handling the problems of cultural differences in their organizations (Okoro, 2013). Moreover the international expansion strategies partnership arrangements like mergers, acquisitions and strategic alliances has augmented the importance of effective cross cultural communication in the business world. In highly competitive market and international scope of business, communication is considered to be the vital function in the success of business. Organizational profitability is evaluated by its communication strategies. Cultural barriers have played significant role in hindering the success process of communication in international businesses. Communication process between culturally different people has unleashed the issues of language, values, ways of thinking and religion. Mishandling of these issues would increase the chances of miscommunication (Guang & Trotter, 2012). The objective of this essay is to explain the reasons behind the importance of cross cultural communication which is followed by the explanation of problems and issues hampering the effective communication system. It would also provide the strategic approaches employed by companies to resolve the issues. In the end, organization successfully handling the cultural problems will be compared with the organization failed to cope with the problems of cross-cultural communication.

Various sources have consulted to explain the reasons that why cross cultural communication has become highly important in business today. Literature explained that high pace of globalization has made the cross cultural communication inevitable for businesses. Homogenization of markets has faded the distinctions of national markets. Along with the business development cultural differences between nations, regions and ethnic groups have become stronger. In this situation solution to overcome the cultural problems are presented to smooth the process of communication and interaction between business partners, companies, customers and coworkers (Tian & Borges, 2011). Advertising messages also hold the values, norms and cultural characteristics of different regions. Realizing the importance of cultural factors in advertising messages is very practically and financially very important for business communication As product sales are largely dependent on these advertising messages (Guang & Trotter, 2012).. Cultural values also affect the process of business negotiations and decision making process. In partnership agreements and business transactions business representatives from different countries different cultures has increased the importance of effective cross cultural communication in businesses (Peleckis, 2013) . Moreover, in multinational organizations culturally different workforce has increased the importance of effective communication for successful business operations. Management training programs are organized globally to deal with the issues of workforce diversity. These cross cultural differences have changed the organizational culture. Management styles, communication systems and motivational strategies in the organizations are modified and transformed to ensure the success of organizations (Arseculeratne & Yazdanifard, 2013).

Business students and businesses should be aware of the numerous issues regarding the importance of cross-cultural communication in business productivity and goal achievement. Three of the issues or problems are workforce diversity, cultural impact on advertising and business negotiations. Different management styles of culturally different managers and employees are one of the major issues hindering the productivity and business goals of businesses. It enhances the likelihood of miscommunication, misrepresentation and misunderstanding between the managers and employees. This miscommunication because of different national cultures and ethnic backgrounds affect the operations and productivity of the businesses. Increased emphasis on workforce diversity has made the communication system from culturally different people highly difficult (Okoro, 2013). Another issue rose by culture difference is marketing and advertising of business products and services. Culture differences affect the effectiveness of advertising messages in business environment. Different languages, different buying habits, and consumption styles of consumers from different cultures influence the marketing decisions and business decision of organizations. Moreover, market entering strategies of business are also affected by the purchase behaviors and consumptions styles of target market (Guang & Trotter, 2012). Cultural differences at organizational level affect the business negotiations, partnership agreements and strategic alliances in the global economy. In process of business negotiations, different cultures, different regions and different ethnic backgrounds largely influence the business transactions and partnership agreements. Mishandling of cultural issue and cultural insensitivity would lead to deadlock in negotiation process. In a negotiation process, representatives of high-context culture and low context culture would hamper the harmony of business transactions (Mengyu & Li, 2013).

Businesses can apply a range of strategies or approaches to overcome cross-cultural communication problems. Three strategies required by the organizations to handle these cultural problems in business environment are training sessions, cross cultural programs and enculturation strategies to equip management with the proper understanding of cultural differences. In order to resolve the problem of workforce diversity and develop mutually beneficial relationship between the employees, organizations and management organize training sessions. These training sessions would help in enhancing the managerial proficiency and operational effectiveness of organizations. Training would help in enhancing the cultural sensitivity of managers which ensure the effective intercultural communication (Okoro, 2013). Intercultural programs organized by the management would help to overcome the cultural differences of workforce. Successful implementation of these strategies would help to develop strong competitive advantage (Okoro, 2012).

Understanding of cultural differences and incorporating these cultural aspects in the advertising messages would help in smoothing the process of business communication between customer and the company. Representation of cultural values and cultural norms in the marketing messages would boost the products sales of the company. Moreover training provided to marketing representatives would help in realizing the importance of cultural factors in their marketing campaigns. These systematic strategies to smooth-line the communication system between company and customer help in increasing the profitability of businesses (Guang & Trotter, 2012). To enhance the effectiveness of international negotiations, managers and business representatives should be properly prepared to adapt according to cultural diversity. Enculturation strategies in the management and business representatives would help to ensure the success of international negotiations in partnership agreements. International managers should be properly educated and furnished with proper knowledge and skills to handle the culturally complex situations in business negotiations (Okoro, 2013).

Cross-Cultural Communication Problems

Many businesses have been successful in dealing with cross-cultural communication problems, while others have not shared this success. Successful organization is Volvo Construction Equipment with its acquisition Samsung Heavy Industry’s division while the company which has completely failed in integrating two diverse cultures is BenQ, a Taiwanese company which acquired Siemens. Reasons behind the successful integration of cultural strategies at post acquisition level in Volvo Construction Equipment helps in ensuring the success of acquisitions. New human resource management policy was implemented which completely changed and modified the formal and informal structures of the combined organization. It provided equal opportunity for both companies culturally different to equally participate in workforce and devise organizational structure. Variety of in house training programs and career development programs has equipped the Korean employees of Samsung Heavy Industry with necessary skills and competencies. It helped them to progress in combined organization at higher levels in the hierarchy. Increased stress on the team work facilitated in integrating strengths, concepts and skills of two different cultures (Lee et al., 2014). International education programs at education level enhanced the cultural sensitivity and positive results of these programs exhibited that it enhanced the quality, experience and adaptability towards different cultures (Brydon & Liddell, 2012). BenQ failed to integrate two culturally different organizations because of inefficient allocation of time and resources for integrating and assimilating the culturally diverse organizations. Ineffective communication system, absence of clearly defined objectives and performance expectations lead to the failure BenQ after acquiring Siemens (Cheng & Seeger, 2012).

In conclusion, homogenization of markets, globalization of businesses and increased workforce diversity has augmented the importance of effective cross cultural communication in business world. Increased cultural integration has emerged the issues of workforce diversity in employees and cultural effect on advertising and negotiation processes. Different cultural norms, values and different ethnic backgrounds have increased the problems of miscommunication, misrepresentation and misunderstandings. It affects the profitability, productivity and operational effectiveness of the businesses. These problems of cultural miscommunication could be handled by training programs, cross cultural education programs and introduction of enculturation strategies in the corporate environment. It would help in understanding and realizing the importance of cultural differences to ensure the success of advertising messages, business negotiations and business transactions. Volvo Construction Equipment successfully integrated the culturally different organizations by introducing new human resource management policies. While in comparison BenQ failed to integrate two culturally different organizations because of inefficient allocation of time and resources for integrating and assimilating the culturally diverse organizations. In my opinion, development in international business and global trade importance of cross cultural communication has increased. To fully capitalize on the benefits of international markets and diverse workforce, business organizations need to devise comprehensive strategies of cultural education. Cultural educations programs, in-house trainings would enhance the cultural adaptability of employees and ensure the integration of culturally different organizations in mergers and acquisitions.

References

Arseculeratne, D. & Yazdanifard, R., 2013. Barriers to Cross Cultural Communication and the steps needed to be taken for a MNC to Succeed in the Global Market.

Brydon, K. & Liddell, M., 2012. Supporting international students undertaking Australian university studies. Social Work Education , 31(8), pp.995-1011.

Cheng, S.S. & Seeger, M.W., 2012. Cultural Differences and Communication Issues in International Mergers and Acquisitions: A Case Study of BenQ Debacle. International Journal of Business & Social Science, 3(3), pp.116-27.

Guang, T. & Trotter, D., 2012. Key issues in cross-cultural business communication: Anthropological approaches to international business. African Journal of Business Management , 6(22), pp. 6456-6464.

Lee, S.-J., Kim, J. & Park, B.I., 2014. Culture clashes in cross-border mergers and acquisitions: A case study of Sweden’s Volvo and South Korea’s Samsung. International Business Review.

Mengyu, P. & Li, C., 2013. Research on the Effects of Culture Differences on Business Communication Between China and U.S.- ACase Study of Cross-cultural Management of Joint Venture Enterprise in China. Universal Journal of Management and Social Sciences, 3(9), pp.45-50.

Okoro, E., 2012. Cross-cultural etiquette and communication in global business: Toward a strategic framework for managing corporate expansion. International Journal of Business and Management , 7(16), pp.130-38.

Okoro, E., 2013. International Organizations and Operations: An Analysis of Cross-Cultural Communication Effectiveness and Management Orientation. Journal of Business & Management (COES&RJ-JBM), 1(1).

Peleckis, K., 2013. International Business Negotiations: Culture, Dimensions, Context. International Journal of Business, Humanities and Technology, Lituânia.

Tian, K. & Borges, L., 2011. Cross-cultural issues in marketing communications: An anthropological perspective of international business. International Journal of China Marketing, 2(1), pp.110-26.

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Wireless Security Dissertation

Wireless Security

The technology of Wireless Security Networking is one of the most common networking and accessible technology but still the security problems are of great interest of this type of technology. This research paper will prospect the wireless networking and its security as well as will focus on the companies which are involved in this technology and future prospects for this technology.

These days’ computer clients are more fascinated in attaining the Internet wirelessly because of its accessibility and mobility. These days, business travelers prefer and utilize the wireless laptops to keep in contact with the office, home, and friends. A wireless network can unites or connect the computers at various places of your business and home without any involvement of any cords and permit you to work anywhere within the range of network on laptop (Bulk, 2006).

The wireless networks are established on the basis of IEEE criteria and standards which belong to 802 family which contains (802.3) Ethernet that is largely utilized today in offices and homes. Even though the growth and development of the 802.11 standards and technology have been in progress since the late 1990s, basic acceptance of “wireless Ethernet” only originated in year 2000-2001 when (AP) or access point devices turned cheap enough for the home user. (Bulk, 2006) The following items simply provide an overview of the 802.11 family which includes: 1-802.11b (a)- Most widespread (b)- 11Mb maximum, 2.4 GHZ band, 2- 802.11 (a)- Next generation (b)- 54MB maximum, 3- 5GHZ band 3- 802.11g (a)- 54MB maximum, 2.4 GHZ band (b)- Compatible with 802.11b 4- 802.11X (a) Uses Extensible Authentication Protocol (EAP) (b) Supports RADIUS 5- 802.11i (a) TKIP (b) Draft (Bulk, 2006).

The disadvantage of a wireless network is that, except someone takes positive protections, any individual with a wireless laptop or computer can access your network. That means that hacker can attain the personal data and information on your laptop or computer. And if an unaccredited person utilizes your network to commend a crime or transmit spam, the action will be traced on your account. The 802.11 authoritative standard is, in its functioning principles, not that practically different from the Ethernet. It employs a conventional “one can speak, others hear” media access control strategy; the simple difference is that instead of wires, the carrier of the signals are assigned radio frequency. In year 2004, (ISRC) or Information Security Research Center of Queensland University declared that any 802.11 network installed in any business environment could be halt in few seconds simply by transmitting a signal that hinders the other users or parties from trying to talk. On the other hand, same is true for Ethernet; apart from that you must be able to join with the network plug at first, which certainly makes the attacker much easy to trace the trouble in order to solve it (Nichols, & Lekkas, 2006).

That’s not the place where problem terminate. Where the 802.11 standard tried to prevent carrier-level hits, it actually failed dejectedly. The (WEP) or Wired Equivalent Privacy (WEP) method was planned for wireless networks to supply a stage of security and protection against hackers on network sessions by outside members or parties, therefore offering security nearly equivalent to conventional LANs. Though, there are numerous design flaws were found in the WEP scheme in 2001 by the researchers of Zero Knowledge System and University of California, which showed the scheme hideously incompatible. Unfortunately, even by that time Wi-Fi had been deployed extensively to create compulsory adjustments hard to execute or implement (Nichols, & Lekkas, 2006).

General Wireless Security

Now the question arises why it is necessary to concentrate on the security of Wi-Fi. As we know that the general area of 802.11 network security zones are one of the leading bases for future security interests and concern: Any hacker or attacker can be laid where nobody considers him or her to be and keep well away from the network’s authorized premises. Furthermore, the other reason to concentrate on the security of Wi-Fi is its great and widespread utilization and use of 802.11 networks. In year 2006, it is reported that the quantity of shipped 802.11 enabled hardware devices were calculated to outgrow 40 million units, even the cost of these units are keep falling. After the popularity of 802.11g devices in the market, the price of the several 802.11 products dropped to the price level of 100BaseT Ethernet client cards. However, there are various speed disadvantages, but not every network requires fast speed, and in majority of the cases the implementation of wireless network is highly demanded. On the other hand, another reason to concentrate on the wireless security is the offices situated on different areas of the engaged streets, office park and highway (Nichols, & Lekkas, 2006).

Wi-Fi security problems are addressing with 2 different troubles: Privacy and authentication. Authentication or verification guarantees that only valid clients get access to the entire network. Privacy maintains communication safe from hackers. The implementation of WPA technology properly addressed these two fundamental troubles. Although we have the much strong security technology but accidents and mishaps can occur at any time, to obtain an enjoyable and pleasant practice of Wi-Fi technology users should have sufficient knowledge of the security weaknesses and vulnerabilities, that’s the reason the Wi-Fi Associations suggests that users of wireless networks implement the similar point of care they’ve learned to employ to keep away from scams in the wired world. Moreover, end users must modify their passwords frequently, not to answer or respond the doubtful e-mails, and should look for protected and secured connections. Customers require creating various new and uncomplicated security protections. A habit like linking through a supplier or provider that employs encryption with a list of committed and trusted hotspots, using a VPN, and constantly changing and enabling security inside a home network. Furthermore, customer should make it a point to prefer those products that are having Wi-Fi certification for the utilization of WPA™ (Wi-Fi Protected Access) or WPA2™ security (Nichols, & Lekkas, 2006).

As far as technology is concerned, WEP or Wired Equivalent Privacy is a protocol that supplies security to (WLANs) or wireless local area networks based on the 802.11 Wi-Fi regulations. Moreover, WEP is a (layer 2) or OSI, Data Link Layer security technology that can be switched “on” or “off.” This technology is configured to offer wireless networks the equal level of privacy security as a comparable wired network. Moreover, WEP technology is based on the security scheme known as RC4 that utilize an assemblage of system generated values and secret user keys. The primary enforcements of WEP supported so-called 40-bit encryption, containing a key of 40 bits and 24 extra bits of system produced data. Research has revealed that it is very much easier to decode the 40-bit WEP encryption, and as a result product vendors nowadays use 128-bit encryption or better 256-bit (Hardnono, & Dondeti, 2008).

When communicating through wire, WEP utilize keys in order to encrypt the data stream. The keys generally are not sent on the network rather they stored in the windows registry or on the wireless adapter. Despite of how it is configured on a wireless LAN, WEP just signifies only one aspect of an overall WLAN security scheme. The standard of 802.11 explains the communication that takes place within wireless local area networks (LANs). The (WEP) algorithm is utilized to defend wireless communication from hackers. A secondary purpose of WEP is to stop the illegal approach to a wireless network. WEP depends on a confidential key that is distributed between the access point and the mobile station. The secret key is generally used in order to encrypt the packets before they are transmitted, and integrity verification is used to make sure that packets are not customized during transmission. Another WEP technology offered by the Agere Systems is known as WEP+, which enhances the security by neglecting “weak IVs”. The WEP+ provides its maximum excellence when it is used at both ends of the wireless connection, as this can’t easily be enforced, however, possibilities are always there that possible attack against WEP+ will finally be found (Hardnono, & Dondeti, 2008).

Moreover, Wi-Fi protected access or WPA is another security technology for Wi-Fi networks. WPA technology improves the encryption and authentication feature of WEP. Actually, WPA was developed in response to the deficiencies of WEP by the networking industry. On the other hand, the technology used behind the WPA technology is the utilization of the (TKIP) or Temporal Key Integrity Protocol as this protocol deals with the encryption weaknesses of WEP. Another advantage of the WPA technology is the built-in or default authentication that is not offered by the WEP technology. Furthermore, another variation of the WPA technology is termed as WPA-PSK or WPA Pre Shared Key, is a simple but still strongest structure of WPA most appropriate for business and home Wi-Fi networking (Hardnono, & Dondeti, 2008).

There is another form of WPA technology which is more advanced and safe and is known as WPA2. This technology provides both data integrity and confidentiality. It is observed that WPA2 provides more security to the wireless network. However, WPA2 can’t offer enterprise security alone. Generally IEEE 802.IX port-based protocol is combined with the WPA2 which provides maximum security and guarantees the secure wireless communication. The technology of WPA is utilized with the TKIP protocol, which further utilizes the RC4 cipher, and it can be executed in software having driver or firmware update. WPA supplies integrity checking using MIC, occasionally termed as “Michael. Meanwhile, WPA2, utilizes a new encryption technique known as CCMP or (Counter-Mode with CBC-MAC Protocol), which is stronger than the RC4 (Hardnono, & Dondeti, 2008).

As far as the future of wireless security is concerned the new 802.11 standards simplify this challenge? However time will tells the best. Moreover, the 802.11i standard is the latest wireless security standard designed to put back WEP and give much effective wireless security. 802.11i was believed to be launched together with the 802.11g, however, as we know that we are not living in the perfect world. (WPA) or Wireless Protected Access Alliance certification version 1 executed various features of current 802.11i development, although, not all products of 802.11 which are sold in market having WPA certification. In the current scenario there are currently many 802.11g networks arranged that are still using non-secure and old versions of WEP (Guna, 2009).

In the coming future it is expected that the next Wi-Fi speed standard, 802.11n, will considerably provide a bandwidth of maximum 108Mbps. Moreover, this 108Mbps will become the industry standard. The latest specifications will be launched at least 1 year before by the IEEE. However, draft-based devices and products could come up with compatibility troubles in case if the authorized standard varied from the draft version. Therefore, it’s much better to stay and wait for the ratified standard before building network over non-authorized gears (Tynan, 2004).

On the other side, in coming future, the possible changes regarding Wi-Fi include the methods and procedures to make this technology more and more dependable and secure. Within a year or two the standard of 802.11i standard will be finalized, which will greatly enhance the security level. Moreover, in future in order to handle the data encryption the majority of the 802.11 i-compliant will need the separate co-processors, which indicates that current Wi-Fi devices and equipment will be replaced to achieve the maximum security (Tynan, 2004).

Lastly, in the coming future another advanced standard 802.11e will be largely employed for the special tasks. 802.11e will address the issues of quality services and the delivery of data packets on time. This standard is very much important for certain streaming applications like videoconferencing, and its importance is really vital as business more toward utilizing Voice Over IP on their wireless networks. Some companies have already launched 802.11e standard for some of their products like Broadcom (Tynan, 2004).

These days there are several companies around the globe, which are providing wireless security but when the question arises regarding pioneers the name which strikes first to the mind is “Broadcom.” This company is providing network solution and recently “Broadcom” has declared that the (WAPI) security standards required for all WLAN devices which are sold in China. Moreover, this company declares that it is in the list of companies who first made WLAN chips to present WAPI-enabled assistance designed for mobile devices and wireless routers, including In Concert BCM4325 that joins WLAN, FM technologies and Bluetooth “CBR, 2009).

It is mentioned by the Broadcom, that all the chips control its digital architecture and radio to supply the wireless connectivity in order to share support triple play service and broadband connectivity. According to the Michael Hurlston, general manager as well as vice president of Broadcom, said: “We are delighted to maintain the WAPI standard being a leader in the field of WLAN we are confident and feel proud to be a pioneer of the rapidly increasing wireless communications.” Furthermore, Broadcom, is making effort to promote the global standards for the wireless communication (“Broadcom”, 2003).

The fairly new solution offers an entirely new system to protect the wireless networks against the threats of real world by launching active wireless methods of testing, which are able to evaluate the daily deployed wireless access points. By this approach, the wireless Vulnerability Assessment resolution facilitates IT administrators to find vulnerabilities remotely within their wireless network and automates the authorized agreement reporting, facilitating customers to decrease the operating cost (“Computer Technology Review”, 2009).

Motorola is offering a complete and comprehensive range of WLAN infrastructure resolutions planned to enable the genuine wireless venture, despite the dimensions and size of the business. The company is offering IP or Internet Protocol coverage in outdoors and indoors simultaneously. The company’s wireless range includes mesh, enterprise WLAN, fixed broadband and Motorola solutions for AirDefense wireless security. Moreover, Motorola’s solutions decrease network maintenance and deployment costs, and guarantee the accessibility of commercial and cheap wireless connectivity. By replicating active attacks from the hacker’s viewpoint, the Motorola AirDefense wireless solutions in case of vulnerability Assessment permits the administrator proactively evaluate and assess the level of security of delicate systems over the wireless network, like cardholder data systems. Furthermore, by using the radio device of the wireless sensor to stimulate a wireless client station, the method empowers the IT administrators to perform remotely the assessment of wireless vulnerability from a hacker’s approach (Messmer, 2009).

Motorola Company is recognized around the globe for modernization in the field of communication and is generally centralized on progressing and advancing the mode of style through which world connects. From enterprise mobility, broadband communications infrastructure and public security solutions to mobile devices and high-definition video, Motorola is directing to the next phase of advancement and innovation that will enable people, governments and enterprises to be more attached and more mobile. It is reported that Motorola had sales of nearly US $30.1 billion in year 2008 (Darkreading, 2009).

The issues of spectrum pricing, data protection, and level of security are of primary concern and are having great importance for the advancement and growth of the wireless communication industry. The most important regulatory issue in field of wireless technology is associated with the security, as this issue will be face by the wireless industry over the next two decades. On the other side, the confidence level of the customer in online transactions over the wireless medium is also of great importance. Security contains not only the safety of data but also the safety from monitoring. Distaste for investigation is widely considered as the expected inhibitor of wireless network utilization (Green, 2009).

The basic issues that should be considered are: Wireless communication: as it doesn’t need physical connectivity, also having more chances to survive in case of natural disasters like floods, hurricanes, earthquakes, tornadoes and volcanoes. The other issue is Wireless transmission: as it is easier to seize and intercept than those running over wire-line or fiber connections. Though, fiber can also be intercept however, it is hard to hack it as compare to the wireless. Moreover, public is having common perception that physical connections are having more security and protection. Also, the employment of digital encryption is really helpful to protect the wireless transmission, however, the public concern regarding security and privacy are of great importance and will be addressed in the coming decades by the wireless industry (Green, 2009).

As far as the global implication of wireless security is concerned there are few steps which should be adopted for the implication of wireless security. The initial step towards successful and effective global wireless security is creating a standardized verification infrastructure. However, the user should be required to authenticate on the network. But for the global implication users cannot be enforced to organize or manage multiple user authentication, accounts, identity and passwords. Furthermore, there must be a single set of access identification which must offer for verification at any site or location. Preferably this must be the similar set of certification used to login to the user’s own-workplace. On the other hand, the network systems should be arrange to recognize realms, domain names as well as various other regional identifiers in order that verification or authentication requests can be routed to the approved set of validation servers. By implementing this principle, the user will be able to travel to any place in the world or to any enterprise location and will be granted access to most appropriate networks (Green, 2009).

The second step for the implementation of global wireless security is the change in the access method. It required that the access method should be reliable and consistent everywhere the user travels. Moreover, users don’t want to adjust or reconfigure their systems as they travel from the corporate offices to their branch offices and homes. This indicates that there is a need for the same (Service Set Identifier) or SSID, which should be installed or present everywhere with having same encryption and authentication policies. Additionally, every place must have same authentication infrastructure so that user may not feel any problem. Moreover, users are free enough to be able to start their email application at corporate office, put their laptops in a sleep mode, go home, and start their work again without any need of a separate VPN client (Green, 2009).

Conclusively, the third step is the implementation of the voice mobility. It is observed that many companies and organizations are assessing their (Vo WLAN) or Voice over WI-FI LAN technology today with estimated wide range deployments occasionally in 00 or 0 0. One of the major outcome and benefit for this technology will be the capacity to utilize it everywhere where there is an availability or access of wireless LAN service. When users move to the remote areas or travel to the remote locations, the service of (Vo WLAN) and voice mobility usually permits their Vo-WLAN handsets to start operation in the same manner as they perform in the normal work locations. Moreover, the mobile network infrastructure must offer secure transmission of voice traffic back to the corporate telephony server, quality of service control and reliable encryption and authentication methods all over the global network (Green, 2009).

References

Broadcom, (2003) Broadcom wireless LAN solutions now Wi-Fi protected access

Bulk, Frank. (2006) The Abcs of wpa2 Wi-Fi security. Network Computing, 17(2), 65-3.

CBR, (2009) Broadcom features wapi security standard on its wireless offerings.

Computer Technology Review, (2009, August 20). Motorola debuts wireless LAN security solution for remote wireless security testing.

Cox, John. (2009) what’s next for Wi-Fi?

Darkreading, (2009) Motorola introduces wireless LAN security solution for remote wireless security testing.

Green, Jon. (2009). Building global security policy for wireless LANs.

Guna, (2009) The Future of wireless security.

Hardnono, Thomas, Dondeti and Lakshminath (2008) Security in wireless LANs and mans. London: Artech House, Inc.

Messmer, Ellen. (2009). Motorola boosts wireless network security.

Nichols, Randall K., & Lekkas, Panos C. (2006) Wireless security: models, threats, and solutions. Berkshire, UK: McGraw-Hill Telecom.

Tynan, Daniel. (2004) The Future of wireless.