While this all sounds very compelling the reality of the matter is totally different. The truth is that Ford, GM and Chrysler have been down this road several times. In fact, the US Government bailed out Chrysler in the mid 1980's; and it was with the leadership of the CEO Lee Iacocca that allowed Chrysler to repay what amount to a loan back to the Federal Government.

The Auto Industry would have us believe that failure to bail out the Big 3 would ultimately result in the decay of our overall economic structure. This is patently false. We live in capitalist society, there are winners and there are losers. In the alternative, the Big 3 do in fact control their own destiny. How so you may ask? Well in order to answer that question we have to examine how the Auto Industry got itself into this mess in the first place. For some time Detroit has been cranking out Yukons, Escalades, F-150's, Hummers and a whole host of large, cumbersome, gas guzzling vehicles. In fact, Detroit was still producing these vehicles even when the price of gas was pushing $ or even $5 dollars a gallon in certain parts of the country.

One does not have to be a PhD Economist to understand that if you produce these types of vehicles when gasoline prices are reaching unprecedented levels you will, more likely than not, be unable to sell any of your product. Yet Detroit failed to recognize this and kept cranking these vehicles out day after day month after month. But Why? I mean after all I am assuming the CEO's of Ford, GM and Chrysler are smart enough to realize what I have just discussed. The truth is they may be and most likely did. However they had to keep producing these vehicles, whose average retail price is in the 35,000-40,000 range. This can be attributed to one crucial piece of information that the media (save for Thomas Friedman of the New York Times) and the Michigan delegation in Washington have conveniently failed to share with us. That fact is the United Auto Workers.

I would venture to place a well thought out bet that the entire premise of discussing this bailout comes down to a bailout not of a failing industry that is in dire need of a business plan re-tooling, but a bailout of the long over-inflated UAW contracts. A comparison is in order at this point to bring this into some perspective. The average hourly cost in Detroit to produce a vehicle is roughly $78 per hour. Conversely the average hourly cost at Honda or Toyota is roughly $22 per hour. The hourly rate for Detroit takes us back to the reason why they continued to crank out those large and expensive products. Two words-Profit Margin. You see in business a product's profit margin is what business looks at to determine if it makes sense to continue offering for sale to the general public. In the case of the Big 3, the vehicles they were producing have high profit margin, thus if they could continue to sell these vehicles they could continue to operate even with these exorbitant union wages they would have to pay. The thing is when gasoline and oil prices spiked, Detroit did not have a fall back or safety valve-hemmed in by powerful union bosses, Detroit was wedded to both the inflated wages and the need to continue to crank out an inferior product that many American consumers had simply fell out of love with.

So now that we can see that Detroit is responsible for its own mess and has put them in this predicament, what are the consequences of refusing to bail out the Auto Industry?

Undoubtedly, the Big 3 would eventually be forced into Bankruptcy and this may be the best thing that could ever happen to it. Ford, GM and Chrysler would most likely file for Chapter 11 protection. This means the business would still operate much like the Airlines do almost on a bi-yearly basis. Chapter 11 would force the Big 3 to re-organize, to shuttle those divisions or parts of their organization that have been a drag on their overall production and have been bleeding the bottom line. However, you will not see any member of the Michigan delegation either in the House or Senate and certainly not Gov. Granholm advocating this course of action.

The reason for this is quite simple and it takes us back to my earlier point regarding the UAW. Filing for Chapter 11 protection would render any and all existing union contracts null and void. Most likely either the Bankruptcy judge or an Arbitration panel would require the UAW to sit down and negotiate with management to arrive at a mutually agreeable package that would benefit the workers and allow management to maintain some level of profitability. This is something the union does not want to have to deal with---and they have no problem making that opinion known to Gov. Granholm or the Michigan delegation in Washington. As long as the Unions maintain their hold on the politicians in and from Michigan we will never see any of them advocate for Chapter 11 protection.

Chapter 11 could also force these companies to produce a better product line. A favorite defense from the various CEO's involved in this mess is the state of the American Economy. No doubt the overall economic status of things has caused some decline in sales; however Detroit's main competitors, Honda and Toyota are doing quite well-and they are in the same economy as the Big 3. The difference? Honda and Toyota adapt to changing economic conditions. Honda and Toyota produced smaller, more fuel efficient and arguable a better quality of product than Detroit. So it's no great shock that Honda and Toyota are doing better than Ford, GM and Chrysler.

There is an economic theory called “Creative Destruction” which dictates that out of the ashes of chaos will emerge a leaner, stronger and more profitable business entity. This may be exactly what needs to take place in Detroit. If we simply through more money at the problem what guarantee do we have that any of the Big 3 will drastically re-tool their business model, change their product line, sit down with the leaders of the UAW and work out a mutually beneficial contract arrangement and fundamentally alter the way the have been doing business for the better part of two decades in order to remove themselves from their current doldrums they find themselves in?

GM is burning through $2 Billion in cash per month. If they keep going at this rate they alone could chew through the entire bailout package in less than 2 years. What then will be the solution? Where will Congress go next to find more resources? I fear that providing Detroit with a bail out package would be similar to being an enabler for a substance abuser. And we all know the best way to treat a substance abuser is two fold (1) force them to admit they have a problem and (2) have them stop their destructive behavior.

It may be time for Detroit to take these necessary and painful steps.

Thomas Edison became an avid reader after his mother tutored him from home. He had only three months of formal education and by the time he died he had patented over one thousand inventions.

Henry Ford completed his first gasoline powered car in 1896, the quadricycle. He also invented the Model-T (1908) and the ever popular V-8 engine (1932). His formal education was practically nil, but he did receive training as a machinist at age 15.

In regards to formal education, societal challenges were somewhat different then from now. Many young men were either forced to farm the land or leave home at an early age, but then there were those men, such as Edison and Ford, that had within them a burning desire to create, regardless of the formal or informal education that they did, or did not, receive.

Some would define education as attending school grades one through twelve and making the mark, but education goes much further. It's more than three plus four equals seven. It's learning creativity, satisfying curiosity, acquiring reliable knowledge, and responsibility in time of deadlines, social interaction, dependability, and awareness.

The bottom line is, if you like what you do, you will do well, because if you like what you do, you will become educated somehow, in some way, shape or form, because you are driven.

A motivation that seeks progress is learning and learning, whether big or small, formal or informal is education.

Robber barons were accused of exploiting workers and forcing horrible working conditions and unfair labor practices upon workers. All they wanted to do was to build up their own wealth and not care for what happens to anyone else such as Rockefeller who created monopolies and trusts for benefiting himself from losing his money in every possible way. Rockefeller also created the Standard Oil Company to increase efficiency.

Unlike the robber barons, captains of the industry cared for their laborers and they were very hardworking businessmen. Instead of gaining their money by stealing and doing other corruptive behavior, captains of the industry worked their way up from nothing and they made an honest living helping themselves as well as others. They also didn't use any pools or trusts to make their money. They made their wealth by earning every penny they had.

As carpet baggers went south, robber barons stayed in the North forming oil and steel companies, railroads, and banks. Although they were greedy they were known as business geniuses because there had been a great debate over whether or not these types of men were beneficial. As Rockefeller combined various oil and refining companies, he also increased production and made the industry more efficient.

All in all, these people during the time were very ignorant and had a very large desire of getting money, not wanting anyone or anything to stand in their way. Even though Rockefeller donated over $600 million to charities, all of his money came from greed, pain, and disrespect. He was a good businessman but his main goal in life was very horrific.

The Dow Jones Sustainability Indexes have become a benchmark for larger corporations. Why? Impact on local communities is paramount to the overall growth of the people that corporations serve. Coca-Cola, Green Mountain Coffee Roasters, Starbucks, Times Warner, Daimler Chrysler, Ford, BMW and Volkswagen are among the more than 1000 profit or not-for profit organizations that follow the Global Reporting initiative guidelines for sustainability reporting. Today this network of more than 30,000 globally work together with GRI to make the principle of sustainability in local communities a reality for those it serves.

Practical Applications in a World of Needs

Each of the above corporations and many others who follow the guidelines of the Global Reporting Initiative in order to measure the impact they have on local communities. The diversity is deep and the impact is strong in most communities in which they provide goods and services.

For example Green Mountain Coffee Roasters, a growing specialty- coffee roaster in Waterbury,VT works with one of the local communities which provides green beans for its coffee roasting. Huatusco, Cooperativa del café de Union Regional de Pequenos Productores de is located in Veracruz, Mexico. Huatusco is a cooperative of nearly 2000 members who prove certified organic coffee to Green Mountain Coffee Roasters. In its efforts to provide ongoing development to its Coffee-Growing Communities Green Mountain has sought to sustain the Huatusco cooperative by making improvements to its coffee-processing mill, provided scholarships for the children of Huatusco members, contributes to Coffee For Kids. Coffee For Kids establishes ongoing support for children in the region of Huatusco. Coffee For Kids mission is "To help coffee-farming families improve the quality of their lives."

Coffee For Kids is just one of the many programs that green Mountain has implemented for the local community of Huatusco. Another program Green Mountain contributes to is EcoLogic Finance , which provides education and credit for community-based businesses. EcoLogic Finance receives much of its funding from philanthropy.
Green Mountain Coffee Roasters is one of the many efforts among all global corporations working in conjunction with Global Reporting Initiative to show the impact they have on local communities. The principle of sustainability seeks to sustain present needs while insuring and providing positive and enduring means so that that later generations of local communities will have the natural resources to meet their needs.

Expanding communities, incorporating the local expertise of local businesses, enriching the lives of your circle of influence and striving to meet corporate deadlines makes for a life full of meaningful decisions. Participants who are promoting the principles outlined in the Global Reporting Initiative know what it means to invest time and resources with local communities in order to help shape a sustainable environment for future leaders.

Strategic management helps make the business competitive. The survival of the business depends to a large extent on its ability to address specific problems to the organization effectively. This is where strategy in business management comes in (QuickMBA, 2006).

Strategy provides the direction in which the business should take. Delineating company objectives clearly, establishing policies and plans and implementing plans by using resources are all parts of an effective strategy. Knowing the strategy that works then is essential for the growth of the company (Wikipedia, 2006).

Strategy based on strong brands is likely to be sustainable because it creates competitive barriers` (David Aaker, 1998 `Strategic Market Management` p.172).

Strong brands have proven their sustainability and strength throughout the years. Their strategies therefore are effective in maintaining or surpassing their leadership in the market.

In achieving a sustainable competitive advantage the marketing strategies of both successful and unsuccessful companies serve as clear examples of what works and does not work in business.

To be sure that one would be a successful in business venture, the company needs to consider some salient points. Questions don't have to be addressed all at one time but should be considered as one move along. It is also important to solicit the aid of professionals or people conversant of the process so as to facilitate the transition.

Getting into business is not only a full-time job it is also long-term. It takes some time before the company's efforts show on the financial statements so committing to the cause should be number one on the list. Without it, once obstacles show, it would be hard to go on. One needs a reason, a goal to attain in order to be clear on what on what to achieve, when, where to go and how to go about it. Commitment to business should be considered thoroughly before resources are allocated to such purpose.

Commitment from senior management is critical to the success of the endeavor. Looking at the situation on a long-term basis would enable the company to overcome initial disappointments and the hassles in business. Operating costs involved early on may seem unjustifiable compared to the sales but it pays dividends in the long run. Commitment is necessary to be able to continue in the face of obvious impediments.

As part of their strategic marketing management formulation, the company must come up with several objectives behind their goal to do business:

• To earn the reputation of taking part in the business market
• Increase in total case sales
• Increase market for distribution
• Potential for more future sales
• Selling products beyond the U.S. market needs
• Combining business with the pleasure of international travel
• Fulfillment of seeing their products used by customers

As early as 1954, Peter Drucker has come up with the idea of Management on Objectives (MBO) which is critical to management strategy. He believed that objectives provide direction for the organization without clear objectives whch later came to be known as Management by Objectives (MBO). Drucker (1954) stated that setting objectives and watching an eye on the progress should include the entire staffs from top to bottom.

CORPORATE STRATEGIES -FINANCE

Finance strategies demand that bold moves need to be undertaken to create value such as wise use of investments through cutting down or even not paying dividends to stockholders to be able to use the money to acquire more investments such as equipment, labor, capital, etc. Another financial strategy would be to use funding from external sources such as financing institutions. Funding is necessary for the growth of the company.

Intel makes use of its finances to be able to stay competitive and ahead of its competitors. When it was threatened by less known Advanced Micro Devices when it introduced Athlon, it quickly implemented price cuts to be able to thwart its competition.

The opposite happened to struggling company Kodak. When Fuji, it's nemesis, aggressively pursued the US market by introducing cheaper cameras, Fuji refused to relent to the price pressure. As a result, losses were incurred. Kodak was forced to face the competition by introducing products with the same price as Fuji.

Payment Methods

1. Agree when and how the company will be paid and when and how to compensate brokers and distributors
2. If payment is from a foreign entity, know the credit risk and how to insure in case of bad credit or non-payment
3. Consider the exchange rates and risks that come with them (Wine Vision, 2003)

HUMAN RESOURCES

Competent Staffs

Persons must be assigned to handle every step of the exporting process at the company such as: packaging, logistics, sales & marketing, accounting. Surveys reveal that those who designate personnel to overlook the export process have greater chances of attaining success.

OPERATIONS

Operations Strategy is used to simplify operations to maximize profit.
Information Technology and Organizational Architecture should be used for efficient flow of information, people and materials through the system. Through the use of various methods such as quantitative analysis, Operations Research models, the financial status of the company will be easily determined.

Intel, Dell and Microsoft are able to maintain their edge over competitors by making wise use of operation strategies. They are able to introduce their innovative products to the market at a rate of twice faster than their competitors due to the operational excellence of their companies. Most of the weaknesses of software companies revolve around its inability to give due importance to operation strategies such as manufacturing and logistics.

Compliance

1. Be familiar with the requirements for labels, packaging and shipping documents
2. Be acquainted with the regulations on business practices and what proof is required
3. Learn how to report appropriately sales for federal and state tax (Wine Vision, 2003)

Logistics

1. Find one or two reliable freight forwarders
2. Learn the proper way to make shipping documents for export
3. Know how the product is handled the moment it leaves the company until it arrived at the selected market, particularly the kinds of vessels and warehousing used
4. Proper shipping of the product should be observed such as putting it in crates or cartons
5. Know the person responsible for risks and insurance at various freight points

MARKETING STRATEGY

Target Market

To be able to handle the buyer factor well, it is important to identify and choose a target market for the product. The market(s) chosen by the company must reflect the style, image and price point of the products. This way it is easy to be competitive. Foreign Agricultural Service (FAS) Online is one place to start scouting for target market and find the perfect niche for the company.

It is important to build category and brand to be able to penetrate the market. To be able to establish a name and a niche in the market takes a long time so the firm should be prepared to commit time and ample resources.

It is important that being competitive does not end by knowing the target market alone. Allocating proper resources and taking the time are important requirements to succeed in the international market.

Microsoft is widely successful because it has managed to identify its market and target them in their broad advertising campaigns such as creating awareness of specific IT problems and offering Microsoft products that address these problems. They also offer incentives to customers or partners who use or sells their products such as rebates.

Both Dell and Microsoft also manifest the ability to offer products that actually meet the needs of the markets. This is one of the reasons for their huge success.

After knowing the target market it is important to establish the sales structure that best fit the company. There are several choices so each choice should be weighed well and thoroughly before coming up with a decision.

The company has a number of choices when it comes to the sales structure. These include using broker, distributor or the direct sales approaches. Each method has its advantages and disadvantages. The important thing is to determine which approach would work best for the company (Wine Vision, 2003).

Using a broker is the easiest way to start selling. But it has its drawbacks. One is it limits the control the company exercise over the distribution of its product in the market. It is advisable to use a broker when the following circumstances occur:

• don't want the hassles of learning the market or controlling the marketing
• want one person or company to deal with the markets

An importer or distributor allows the company to exercise more control over distribution but it also demands time and effort. The company will opt for distributor method when the following situations occur:

• have enough time to allocate to be able to see the market
• want the agent to control the marketing

Making direct sales is applicable for the company if they have a single outlet for all their products. This is done to:

• to get rid of stages of profit-taking
• when brand building is not necessary

It is imperative that before embarking on selling, the company should get qualified people who can extend proper counseling. Developing a marketing plan before selling is a necessity. The detailed plan should include clear aims, corporate objectives, and possible problems that may arise and how to handle them.

In choosing overseas distributors due diligence must be practiced. There will be a number of problems that would arise later in the process of conducting overseas communications and transporting goods to various freight points. This is why international or overseas distributors must be able to act independently.

Ford is struggling in its sales because of its numerous foreign competitors. In order to address this dilemma Ford make its presence felt online by partnering with Yahoo and other known online companies. They also adopted innovational IT programs in order to compete with foreign companies effectively.

Market Research

To handle competitive forces and intense competition from the rival firms, it is important for the company to do the following:

1. Know the U.S. market share in the target market(s).
2. Understand the import tariffs and mark-up structure and the retail price point the products will sell
3. Know the legal structure of the distribution system
4. Know the useful division of sales through several channels and the end-users of the products
5. Develop a marketing plan that caters to the target market(s)

Marketing strategy differs from country to country. It is important to consider the practices unique to the country's culture. What works in the Philippines may not necessarily work in Germany. This is particularly true in the advertisement of the product. One must treat the market separately not uniformly.

Sometimes, product modification is necessary in order to meet the requirements or preferences dictated by a particular culture. Foreign distributors have to cope and follow local regulations on safety and security also import limitations.

Coca Cola makes use of market research to be able to maintain its spot at the top.

External Analysis (Porter's Five Forces Theory)

Porter's Five Forces Theory

Porter's Five Forces demands that businesses should consider the possible factors that influence the course of the business, in this instance, wine exporting business. The five forces (QuickMBA, 2004) include: customer power, supplier power, competition from new entrants, competition from substitute products and intensity of the competition.

Other factors needed for the company to become competitive in the market involve a careful study and implementation of the following:

Internal analysis -

Identify Strengths and Opportunities

The external analysis requires the limits and opportunities brought about by the company's environment. The internal analysis demands that the organization pays attention to its strengths and weaknesses.

Part of knowing the company's strengths and weaknesses is scrutinizing each aspect of company's operations without being overly critical or too lenient. Honest self-assessment is the key to proper identification of strengths and weaknesses without getting too emotional about it.

The most valuable way to do an internal analysis is to carry out an "audit" of operations. The result of the evaluation produces a structure of the company that can be compared to a similar organization. However, no two establishments can be the same so it is important to focus on the similar stages of growth they undergo.

Perhaps one common denominator found in widely successful companies such as Microsoft, Dell, Coca cola, Intel, Unilever, Proctor and Gamble, Mini / BMW and Gillette is its ability to identify the Strengths and Weaknesses in their existing marketing strategies, Opportunities and Threats, and issues which requires to be deal with.

Their ability to see a challenge and respond accordingly in a prompt manner is what put them at the helm.

Segmentation

Porter's Generic Strategies

Another set of strategies that could help the company in generating more sales would be Porter's generic strategies which consist of three: segmentation strategy, differentiation strategy and cost leadership (Porter, 1980).

Cost leadership strategy pertains to mass production of standardized products to lower the cost. Manufacturing the product in high volumes or by bulk would lower the costs of the product because fixed costs are maximized.

Differentiation strategy means creating products that are being packaged as unique. Customers believe that the features of the products are incomparable and superior compared to others hence the reason for its uniqueness.

Segmentation strategy means products are focused on few, selected market or the specialized markets. The company creates the product to suit the tastes or demands of a specific market.

The company could choose to implement any of the three strategies that would best promote the product at the same time usher in more sales. Of course, before choosing the strategy it is important that the company chooses the target market first and clearly define their objectives. Choosing the best strategy could spell the difference between success and failure in the business market.

Coca Cola uses segmentation to be able to remain competitive. It diversified into various products starting in 1960 when it acquired Minute Maid Corporation, producer of Hi-C fruit drinks. It also merged with Duncan Foods Corporation. Then in 1969, it bought the Belmont Springs Water Company Inc. which produces bottled spring water. It also acquired Aqua Chem Inc and Taylor Wines Company and other wineries. Aside from diversification it also expands its product line by producing Fanta, Sprite, TAB, Fresca and diet colas.

Perhaps an antithesis to segmentation and diversification is the Unilever and Proctor and Gamble's move to downsize, instead of increase, on its product lines.

Unilever implemented its year-old marketing strategy which is to trim down its focus on 400 "master brands" instead of the usual 1,500. To remain true to its campaign, Unilever focuses on promoting its three fabric-care master brands - Wisk, All and Surf.

Proctor and Gamble also downsized some powder detergent brands last year , just like Unilever, to be able to focus on its core products Tide.

Lenovo is able to develop into a top brand by using segmentation which means producing catering separately to cost-conscious and premium customers.

Struggling company Levi Strauss has to embark on globalization in order to address its decreasing sales.

Brand building

According to the American Marketing Association (AMA) a brand is a "name, term, sign, symbol or design, or a combination of them intended to identify the goods and services of one seller or group of sellers and to differentiate them from those of other sellers”.

A good brand should be able to meet the following objectives:

• Convey the message clearly
• Validate your credibility
• Relate to your target prospects in the emotional aspect
• Encourage the buyer
• Creates User Loyalty

In branding, it is essential that the needs and wants of the business' customers and prospects should be taken into consideration.

A strong brand is important to remain competitive. Time should be invested in researching, defining, and building the company's brand. It should be given due importance since the brand serves as the focal point of the company's marketing communication.

Skoda makes use of branding to be able to develop into a powerhouse. Advertising has made its brand widely perceived as a car that offers great value of money. Due to this, car sales have increased speedily through the years. The proper branding and the appropriate perception it created on its target market allowed Skoda to rise from the multitude and a company to watch in the future.

At the opposite end of the pole we see recovering megabrands M&S, Sainsburys and Burberry that suffered reversal of fortune from once being at the top of food chain to acquiring losses.

The brands are perceived to be VFM or those that provide value for money. Unfortunately the perceived value for money changed and standards were seen to be deteriorating for the three companies. It became apparent among surveys conducted within the companies and outside, from customers. Another fatal error was the top managers were not able to take swift action to address the matter. Good thing though that they were able to wake up just in time before M&S, Sainsbury and Burberry sank to the bottom.

This serves as a lesson to those who want to embark on business to stay alert to customers and employees feedback.

Advertising campaigns made by Gap designed to increase Hollywood celebrity excitement into the Gap's floundering brand image did not go as expected. This, according to industry analysts and the retailer's own decreasing sales show.

Conclusions/Recommendations

Embarking on business venture is a huge undertaking for a first-timer. Therefore, every step, every decision matters and should be weighed carefully. There is a huge market which could possibly translate to more sales and profit waiting for the business. The local and international market opens a lot of opportunities at the same time but it is also laden with a number of risks for a business. Going into business is no small feat. It is not something to take lightly. For a business to succeed it requires an amalgamation of factors - effort, money and time. Learning how to maintain competitiveness also enables the company to acquire necessary rudiments to keep their advantage at the local market. To be successful, the best strategy for the company would be to weigh risks against the possible benefits.