Humans are spending hectic and bustling lives, they have a short time to approach such commodities that accomplish their demands, and therefore marketing is the best source to get a desirable product. Marketing movement is a source to stay in touch with potential customers to satisfy their needs by providing those engaging commodities and products. Business flourished when promotional opportunities and different strategies are applied to meet the expectations of customers. These promotions are administered in different ways and advertisements also encouraged by marketers to capture the customer’s attention (Fraj-Andrés & Salinas, 2007).

Purchasing and selling movements is the origin of marketing that provides the means of conversation to customers and organizations. Different strategies can be adapted to develop a business-like including signboards, pennants, advertisement, public association; direct marketing, product installation, promotion on social media, and buy one get one free opportunity. These marketing strategies hit the consumer’s mind and emphasize them to use these products that are dealing with promotional activities. Gangai, & Agrawal, (2016) explained that if the organization establishes a vast network of advertisements, it will be essential to target the positioning of consumers.

When a company introduces its promotional strategies by using different ways, it directly affects consumer’s psychology because every customer has a different choice and demand. This psychology of consumers is helpful to meet the consumer expectations, to understand and by creating more innovative product to relax the consumers with the commodity, because consumers usually focus on such products that would not be time-consuming, readily available, fulfil their needs, and advertisement strategies also gain the attraction of users (Genchev& Todorova, 2017). Several companies follow various ways for promotional merchandise, which provide the substitution procedure to the buyer. Culture is also a well common factor that affects the marketing strategies and assists to promote any commodity because it examines the behaviour, features, and self-individualism of humans. Hulten, & Atwal, (2010) mentioned the cultural properties implement on individual demand and need. Organizations need to implant such promotional activities that would not hurt the other cultural values because every culture possesses its customs and traditions.

Every organization has to introduce its product by informing all features to captivate the possible buyers. The company can adopt various techniques to notify the essential elements of the product. Pamphlets, samples, internet websites, publications methods, electronic media also fascinate the users to consume the product. These are conventional methods but effective ways to promote the product (Jerman, &Završnik, 2013). These ways leave a long and lasting impression on the consumer’s mind and compel them to use. All advertisement techniques create a sense of purchasing into consumers. Besides this, the features, ingredients, quality, and price must be mentioned in the advertisement. When a company provides the necessary information of the product through publication, it assists in gaining the consumer’s demand and in reaching the company’s target level.

Celebrities play a criticalpart in the commercial purpose, and gain the trust and promotion of the product. Celebrity attachment has a motivational effect on consumers. Most people follow their ideal celebrity. The followers want to use the popular product of their personality (Griffith, 2017). The company needs to be aware of the needs of its buyers and bring changes to the product according to the user’s demand to compete with the business among the other rivals. A conversational method toward the buyers is also helpful to manufacture the desirable and profitable commodity to run the business efficiently.

Fraj-Andrés, & Salinas, (2007) discussed that market competition is becoming worse with time because the marketing strategies are improving to obtain the consumer’s attractions. The organization gives preference to the consumer’s psychology. The company should focus on consumers’ thoughts, emotions, ideas, expectations, ways to fulfil the need, and also give an alternative source in case of skipping the first one product by changing its ingredients, or manufacturing methods. The organization also keeps it in mind the environmental conditions because it directly interacts with the needs and demands of buyers. Promotions of different offers are also an effective way to get the target consumers and interact with the consumer’s psychology.

Psychology directly influences the marketing tools; it establishes a way that developed the business by understanding the consumer’s expectation. Consumer psychology is a helpful subject to be aware of the companies with the consumers need and critically analyze their expectations and prepare the source for development to the company. Psychology also encourages people to purchase the product. This study also analyses the habits, customs, and traditions, preferences of the followers, and craft research on people’s behaviour, which makes it helpful to formulate the alternative source for the buyers which meet their expectation level (Gangai& Agrawal, 2016).

An experienced and honest marketer uses psychology’s legal and ethical techniques to achieve the attraction of the buyers. Although marketing and psychology have an inverse relationship, when we examine the needs of people by using psychology, it creates a close relationship between them. Psychology is helpful to promote the marketing attempts that flourish the business.

With theincrease in internet adaptation, (E-Marketing) like online, web, and digital platforms have expanded the business. These are modern techniques to access the customer. Internet marketing can be conducted on wireless media or by email. There are four-dimensional strategies available in electronic marketing like electronic mail marketing, web marketing, mobile marketing, and online marketing provide a promotional tool to convert the perception of consumers toward the product. This type of marketing offers a variety of technology to engage consumers with commodities (Hulten& Atwal, 2010). This is the most advanced feature to introduce the product in front of customers that provide the online facility and save time.

In this type of marketing, bargaining cannot be done, so it is an easy and safer way to gain maximum profits. It provides a global approachability. It’s a comfortable way of marketing with respect to conventional marketing, and it facilitates the consumer and marketer equally (ChandraSekhar, 2012). E-marketing provides a list of relatively products with its price list but also presents the complete awareness to people to encourage the beneficial outcome. E-marketing just needs a limited but high-speed internet connection, and complex websites, to gain the consumer’s viewpoints.


The current study attempts to focus on marketing tools that influence consumer behaviour. Marketing techniques can change the behaviour of consumer due to their outreach, and they spread the message to a targeted audience.


The specific purpose is to identify the role of marketing tools in influencing consumer behaviour.

The first chapter of the study is the introduction. It is about problem statement and objective of research. The second chapter is the theoretical framework. Multiple theoretical concepts and critical definition of marketing and consumer behaviour will be explained. The third chapter will describe the literature review. Extensive literature review of scholarly studies will be included to gather crucial evidence and facts about marketing tools and their influence. The last chapter will be about concluding remarks of study.




Under multiple theoretical concepts, this paper will discuss key themes related to marketing.

The behaviour of consumer pertains to critical concepts related to consumer, buying motives, consumer involvement and the decision to change its preferences. Consumer behaviour is widely the study of persons, or companies and the processes customers used to search, choose, use and dispose of services, products, ideas, or experiences to satisfy desires and its effect on the customer and society.


Apparently, the customer is easy, yet studies show it is complex to analyze, since irrational elements are significant to alter the wants, needs, and demand of consumers (Boulding, &Staelin, 1994). The term customer is strongly related to cultural, social and psychological factors that impact consumer behaviour.

Consumers versus Customers:

The term consumer is an individual who involves typically the activities of search, chooses, utilize and dispose of the services, products, ideas, or experiences. Whereas, the customer is particular in terms of company, brand, or shop. It reflects individuals who regularly or customarily buy a specific brand, buy a specific company’s product, or buy from a particular shop. So, an individual who purchases Nike shoes or who uses Levis clothing is a customer of these companies (Jerman&Završnik, 2013).

Need – Want – Demand

Need is a necessary element for people to live and survive. A want is the desire of people that can be current or in future. Demand is also desired that relates to the consumer when they need a product. Wants and demand can be differentiated on the basis of desire. A desirable product can change wants and allow customers to change their preferences.

Consumer Motive:

Consumers have a motive for buying a specific product. The rationale is a powerful urge, feeling, desire, emotions and instinct that develops the purchaser to make a decision to purchase (Babu, 2016).

Buying Motive:

It is described as, those considerations or influences which give the urge to buy, provoke action or decide choice in the buying of products or services. This motive is generally controlled by social, psychological and economic influences etc. (Barutçu, 2007). The buying motives can be classified into two types, (i) patronage motive, and (ii) product motive.

(i) Patronage Motives:

These can be described as impulses or consideration, which influences the individual to particular patronage shops. These motives can also be categorized as rational and emotional as like product motives.

Rational motives are such motives that come up when deciding a place depending upon the satisfaction of buyer that it provides a wide selection, latest designs, offer better after-sale service etc. (Ashraf &Shahzadi, 2017).

Emotional motives that influence a consumer to purchase from particular shops, without any proper reason. For instance, the consumer may be just wanted to buy from his favourite market.

(ii) Product motives:

These can be described as those desires, impulses and considerations that provoke the customer to buy a product. These are further classified into two types on the basis of satisfaction nature.

Rational Product Motives are described as those urges which come upon the basis of proper evaluation and logical analysis. The buyers decide rationally after detailed valuation of the purpose, available alternatives, cost benefits and same valid reasons (Makkar, 2009).

Emotional product motives are those urges that influence the customer on the grounds of his emotions. The person doesn’t think about the reason or analyze logically the desire of the purchase. He buys any product to satisfy his pride, urge to instigate others, ego-sense, and his wish to be unique.

Why Study Consumer Behavior:

This study supports every person in the world, as all our customers. It is essential for merchandisers to understand customers to succeed and survive in this competitive environment of the market (Chen&Zhou, 2017). Following are the reasons which highlight the significance of this study as a discipline;

Importance in Daily Life:

The reason for analyzing a study is to support someone to understand its contribution better. The idea behind consumer behaviour study is the cause of the part it plays in human lives. People spent most of their free time in the markets, shopping or involving in other leisure activities (Su & Tong, 2015). People usually pass their extra time in thinking and knowing about services and products, talking about them with their friends, and following commercials related to such products and services through different media channels. The utilization of them considerably shows the lifestyle of people. All such reasons develop the study needs.

Relevance to Decision Making:

Consumer behaviour is taken as the functional discipline, as many decisions are importantly influenced by their behaviour and possible actions. There are two perspectives which seek function of its information are societal and micro views.

The macro or societal perspectives use the information of consumers to collective-level confronted by society or mass as a whole. Consumer behaviour has a considerable effect on the level and quality of the living standards (Sarstedt& Lehmann, 2017). The micro perspectives engage consumer understanding to help an organization or firm to achieve its targets. The persons involved in this fieldwork to know consumers for the purpose to be more efficient at their duties.

Consumer Involvement:

Several consumers are identified to be more engaged in shopping and products than others. A consumer who is much engaged with a product would take an interest in getting a lot of information about it before buying. Thus he studies catalogues in detail, compares models and brands available at multiple stores, asks questions, and requests for recommendations (Qureshi et al. 2017). Hence, consumer involvement can be described as a resounding state of knowledge that inspires consumers to attend to, seek out, and learn about the information of the product before purchasing it.

Reasons for Consumer Involvement:

Following are the factors that affect consumer involvement in the markets;

  1. Product Factor;

The consumer involvement increases as the level of observed risk in the buying of service of the product grow. It is expected that people will believe more engaged in the purchase of a house for them instead purchasing a shampoo, it can be a more risky purchase. Differentiation of product influences involvement (Loureiro, 2013). The relationship grows as the quantity of alternatives increases. The reason behind this is the reality which consumers think the variety that means more significant risk. The happiness a person finds by using a service or product can also affect involvement. Some products can be a more substantial source of joy for people than others. Coffee and tea have comparatively a high level of satisfaction value than let’s say hand wash soaps.

  1. Personal Factors:

The three personal factors are needs, self-concept, and values that affect the amount of consumer involvement in a service or product. Celebrities, for instance, present specific values, self-image and needs. They use to utilize services and products that reveal their living style. The get much engaged in buying expensive products like imported cars, designer shoes and clothing etc.

  1. Situational Factors;

The situation in which something is got or utilized can create emotional involvement. The purpose of buying or event of purchase influences involvement. For instance, purchasing a pair of shows for their own self is very less involved than getting a gift for someone very close.


A process of communication that can implement, develop, and evaluate driver of persuasive communication in relation to a current and potential customer. It can be linked with customers, employees and stakeholders. The marketing process involves the exchange of offerings, so it brings value to customers and advocacy campaigns and business activities that can actively change consumer behaviour (Loureiro, 2013).

Marketing Tools

Marketing tools are inherent to contribute to the marketing mix, which is a set of tactical and controllable device for a company to target audience. The concept of the marketing mix relates to execution and planning steps that are employed by a company to influence the demand of its product (SAM, 2017). In 1953, Neil Borden introduced the concept of the marketing mix that generally takes the sense of different factors that can influence the decision of the consumer to buy a product. In an effective marketing strategy, the tools of marketing acquire central space under the marketing mix. These are designed to meet the objective of a company to market its products, thus gain value.

Frame of Reference

What is 4P’s

The four P’s are Product, Price, Place and Promotion. The 4Ps’ of the marketing mix is common in marketing, and collectively they establish the customer value. They also position the target market of customers. The 4P model was first introduced by Jerome McCarthy in 1960 with a framework that is used for business to design campaigns and strategies that can promote goods (Labeaga et al. 2007). This framework is useful to increase the conversions and targeted audience because each P is valuable to influence the decision of the consumer.


 Product is goods and services that a company offers to its customers. The product can be quality, variety, brand name, features, design, services and packaging. A product is a physical good that provides a unique experience to the consumer. The users of this product can be attracted to the features, packaging, name, support, quality of ease of use. The transaction of this physical product influences the whole buying experience of the customer. Ideally, a product should be compelling for consumers. To that end, marketers tend to the understanding product life cycle and plan different methods to deal with these life cycles (Iglesias et al, 2011). The type of product determines what should be the price, and how should it be placed and promoted.


A cost that consumer pays for the product to use it is its price. Marketers link the products’ original price and perceived value because they have to seasonal consumer discounts, supply costs and the price of competitors. If the product is intended to be more luxury, its price level is increased. The marketers also determine that whether discounting is valuable because it sometimes draws in more customers (Pulido Polo, 2018). Price is a critical element to consider because the often high priced product is viewed as unnecessary by the user unless it is a luxury brand. Key pricing strategies are used by businesses such as competitive, bundle, economy, subscription, psychological and discount.


This decision allows the company to sell and deliver a product on the market. Business executives, in this regard, tend to get their products in front of most readily consumers. Placing a product in different stores is about to garner the attention of the user. This concept is related to the placement of a product on TV shows, web pages or in advertisements. The distribution of product is placing, and this concept is based on resellers, wholesalers and intermediary businesses. The decisions about placing allow the business to set up product stores for display. Placement helps to enhance reviews and attract customer. Some businesses set up catalogues to display product effectively. It is a useful activity to analyze competitor’s policies and get the idea to differentiate.


Public relations, advertising and promotional strategy are some critical ways of promotion. These activities allow consumers to participate in buying actively. This P of the marketing mix set a value for the consumer and show them the need for the product. Marketers unite placement and promotion together to get the audience involved. In today’s’ digital age, development and place are acting elements of online and offline activities (Kumar &Rajan, 2011). It is a mere communication tool for people to choose a product, so it encompasses the entire marketing function. Promotion allows people to set target according to their needs. In this form, communication will enable people to know what they need and how will they benefit from it.


Influence of Marketing Tools

Marketing tools have a significant influence on business. To establish a business, various techniques are applied in which some conventional methods are planned like signboards, pennants, pamphlets, newspaper, brochures, through a video station, and phonic directories are some strategies which are used by organizations to promote selling quantity and capture the target consumers. All methods are just adopted for a flourishing business (Goldsmith et al. 2010).

Electronic media has also impacted on marketing methods. Different software is used to attract consumers. Mobile marketing, email marketing, and online marketing technologies are established for these purposes. These are advanced and modern marketing tools. The online partnership is to run associate marketing and sponsorship as a marketing tool.

Web investigation is also a necessary element of digital marketing that produces pieces of information for internet users following online movements. Through this method, companies can possess the positioning of buyers (Iglesias et al. 2011).

Social media marketing is a subgroup of E-marketing. Social media also reacts to online marketing and has the similar ambition to meet the expectation level of consumers for business promotion. Social media facilitate the marketer by granting the equipment like online journals, twitting, posting, linking, liking, binding, bookmarking, sharing, networking, and commenting on various websites like Facebook, YouTube, Twitter, and different additional social media platforms provide the strategic resources to consumers and marketers (Išoraitė, 2015). Social media marketing offers a source to organizations and marketers by offering a low rate of advertisement with an attractive profit.

Marketers follow this kind of tool to keep in touch with users and to make a communicative relationship with them to be conscious about their needs and demands toward the product. People usually use social media to be in touch with relatives, comrades, and to be aware of new fashion and trends and also to discover the product reports. This platform informs the consumers about upcoming updates toward their beloved product (Schnerrer, 2014).

By using social media, platform organization wants to engage demographic consumers to deliver the marketing thought. Marketers should follow passionate, thrilled, delightful, engaging, true, and genuine marketing tools. Promotional drives also promote marketing affairs because these strategies help shift the buyer’s attraction to the product. All marketing tools are supporters and promoters of relevant brands or products and have an impact on online and offline marketing services.

Empirical Study

Organizations use leverage methods to capture users through online and offline facilities. Marketers should prepare such tools that affect emotional feeling. Psychological techniques are much helpful to stay connected with the emotional feeling of buyers. When any brand has an emotional attachment with its customers, it will never lose them all. Marketers should apply promotional tools for business growth; these tools are booklets, business cards, informative broadcasting, merchandising strategies, and use of websites (Goldsmith et al, 2010). Several elements provide the complete detail about the product, and which highly supports the characteristics and features of the commodity. Business cards show the trademark and stamp of the business and provide contact to the supporters and audience. All marketing strategies have a basic purpose of increasing the selling level and encouraging new customers. They also provide awareness to buyers, but the price also must be controlled under full attention for the growth of the business (Hulten& Atwal, 2010).

Elaboration Likelihood Model (ELM)

An internal communication tool is a persuasion that is a convincing argument backed up with valid reasons. John Cacioppo introduced the elaboration likelihood model that seeks to explain the process of humans’ stimuli and how it works to change the attitudes, so behaviour. ELM elaborates results when a certain amount of effort is used to communicate a message, so people react. A high elaborative model scrutinizes the content of a message because it is backed up with high motivation. Users invest time to know what is in the message, so they make a pronouncement. Marginal processing of routecontributes to elaboration of low level in case user is not scrutinizing a communication to gain efficiency (Griffith, 2017).

Some communication forms used in this model can be attractive for people; they give endorsement to people. For instance, enticing imagery appeal to people, imagery related to food, travel, or free products attract people and forms their attitude. High motivation makes their decisions, and they get high capacity (Francisco et al, 2014). Marketers incorporate ELM in their designs to increase access of the user. It is a form of communication that is not risk alienating, but it frames behaviour by persuading them.


 Analysis of Empirical Data

Extensive literature has discussed the role of marketing tools to influence consumer behaviour. This section will discuss some key themes under marketing tools that change the behaviour of the consumer.

Sales promotion

A study accomplished by Genchev& Todorova (2017) discussed marketing tools, i.e. sales promotion as an effective strategy to win new clients, so increase profit margins. The sales promotion acts as a drive to attract new customers while retaining old; this marketing activity adds value to the products. Authors discussed that it stimulates the effectiveness of intermediaries and stimulate purchases of consumers. The study investigated 60 participants about sales promotion impact and found out that it is an effective instrument that directly impacts the behaviour of the consumer. It is also found out as the most suitable communication channel that gets information about the user’s perspective of marketing.

Marketing communication is an active activity to make the differentiation. They enhance firms’ capability to shield itself from price competition in future. Boulding, &Staelin (1994) discussed that advertising and sales force are key instrumental variables of marketing that represent differentiation measures. These variables represent their own price elasticity which is helpful to attract a large consumer base. Future differentiation is carried out with the basic premise of communication that provides positive messages. The study found out that unique messages and strong conversation allow the customer to believe over price and quality of the product. Sales promotion leads to more price elasticities and generates positive message about the product. A marketing plan that constitutes product offerings allows desirable attributes, so customer acquires desirable attributes.

Schnerrer (2014) elaborated about sales promotion in a book that it can work most importantly in marketing communications. The channel of marketing through sales promotion can attain specific objectives as compared to any other marketing communication tool. Sales promotion theory and practice has a central position at the global level because it is based on retail outlets and guarantee success in influential B2B businesses. The element is invaluable in advertising due to its capability to enhance consumers’ interest. Under sales promotion techniques, advertisement and communication acquire huge involvement and build customer base (Ercis&Yildiz, 2019). Advertising promotion is the main aspect of integrated marketing because it is linked to inherent communication.

3.2. Sampling

Sampling has been proved as an important part of marketing research. Sarstedt,& Lehmann, (2017) examined research about sampling techniques and how they work for advertising. Authors observed 1028 studies from 2008-16 from leading advertising journals. The sampling procedures have been proved beneficial for the estimation of customer involvement. Researchers focused on the sampling fluctuations that relate to fundamental aspects of sampling in the advertisement. Chen, & Zhou (2017) described the free sampling process as a digital format that is a common business practice.

The marketing framework undertakes sampling to offer the consumer a good experience with products. Word of mouth is an online marketing strategy that enhances product visibility. The research study explored other literature to know key dimensions of marketing and drawn that free sampling has amplified sales and has a strong role in marketing (Coelho et al, 2018). CNET under free sampling lead allows a large volume targeting for amazon in the online market. Free sampling has a positive impact on products sales, and its role in online word of mouth cannot be ignored. This study suggested free sampling strategy has an interplay with low-cost methods and word of mouth strategy in marketing.  


A fast way to promote products and employ effective communication tool is coupons under marketing. Coupons are a nice marketing tactic and marketing tool that develops brand image and enhances customer loyalty. It needs modern infrastructure, and coupon campaigns are the main source of data tracking to build a loyal audience. Kumar &Rajan (2011) highlighted the role of coupons in a study that they are an emerging trend in the marketing perspective that attract customers and provide a profitable business model to marketers. Social coupon service is a part of the analytical model that works for profitability and recover any shortfalls occurred in profit. Authors used data from three different business endeavours and worked on customer acquisition that can be a future orientation in marketing.

Išoraitė (2015) analyzed the framework of coupons under theoretical aspects and how they can be used as sale promotion tools. Coupons are readily available tools for shopping, provided by marketers or companies that give flexibility and discount to purchase customer’s favourite products. Coupons are an important source to follow the latest business trends, so they promote sales. Online shopping, advertisement and marketing strategies frequently use coupons as a part of a sales tool. Hulten& Atwal (2010) illustrated the concept of promotional tools for retail marketing that inspire consumers buying patterns. The report discussed the reputation of samples and coupons to change consumer behaviour and found out that two main behaviours are related to it. One is brand switching; second is customer loyalty. On the basis of multiple kinds of literature, marketing is found to be playing a special role to change consumer behaviour under these promotional tools (Esmaeilpour, 2015).

Buying Behaviour of Consumer and Brand Loyalty

Thebehavior of consumer is linked to the new-fangled concept of advanced marketing. ChandraSekhar (2012) explored the dimensions of consumer behaviour under the decisive aspect of advertising. The upshot of the consumer is brand loyalty. It asserts influence on consumer behaviour because the quality and pricing of a product help consumer decide about purchase decisions. Finding a product and sticking to the brand is a brand value that is determined by quality and price, so it changes consumer behaviour. The image of a brand is the main element that determines purchasing power and decisions related to it. Ashraf, &Shahzadi (2017) examined the relationship of marketing variables like brand image and consumer buying behaviour. The study undertook key dimensions that play a major role in determining consumer behaviour; for instance, marketing tools act as big communication methods with consumers that shape their decisions.

Branding is influential for consumers to take valid decisions. Brand knowledge allows consumers to choose healthy dimensions about the product by knowing its value (Qureshi & Malik, 2017). The loyalty of a brand increases as consumer ages, so family culture and social factors play a significant role in determining the consumer decision. Authors of this study analyzed the research by finding gender the main variable that can impact consumer buying behaviour. The consumers are status-conscious, so they carefully select products and use brands when it comes to their choice (Ercis, 2019).


The study has investigated the behaviour of consumer and change in decision making due to the influence of marketing tools. The promotional tools are significant to shape consumer behaviour that leads to brand loyalty. Influencing factors that can shape consumer attitude are linked to marketing, perceived quality perception values. The study analyzed consumer behaviour, needs, wants and desires. Different kinds of motives are worthy of explaining consumer attitude and preferences. Marketing is a consistent framework that allows various channels of advertising to work and shape consumer attitude. The study reviewed extensive literature to find out its objective, which is to analyze the marketing tools in influencing consumer behaviour.

This study found a strong relationship between marketing tools and consumer behaviour due to mediating variables such as promotional tools and techniques of marketing. Each association needs to present its item by illuminating all highlights to enthrall the potential purchasers. The organization can embrace different methods to advise the fundamental components of the item. Handouts, tests, web sites, distributions techniques, electronic media additionally allow clients to expend the item. These are ordinary strategies yet powerful approaches to advance the product. Psychology straightforwardly impacts the showcasing apparatuses; it builds up a way that built up the business by understanding the customer’s desire. It is a useful concept to know about the organizations with the purchasers’ need and basically break down their desires and set up the hotspot for advancement to the organization.

The theoretical concepts contributed to explaining the consumer perception, attitude and behavioural framework, which is influenced by marketing. The targeted market is based on positive perception about a product, so that company can create a better product to respond to consumer wants and needs. This study is found to be helpful for future research because it has explained key dimensions of marketing under promotional tools that work coherently to alter consumer behaviour.


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Understand the connection between projects and society in the globalized economy
• Analyse theories and emergent ideas in project management
• Identify and critically appraise societal forces influencing projects and the management of projects
• Evaluate the impact of global and mega or major projects on society
• Develop and apply research skills to examine global and mega or major projects



Globalized framework and economic development are crucial elements for any country. Today, globalization has rapid advancement in terms of better and improved infrastructure, facilities, and complex projects. The current research essay discusses the scope of a megaproject in an economy and its influence on society. In the global economy, the megaprojects are necessary to build better infrastructure, to connect world economies, and to bring sustainability. The project management framework, in this regard, takes the lead to explain the competitiveness in the global economy. Megaprojects are managed under project management forces, concepts, and theories. These theories involve better organizational framework, ideas, and management implications.

The megaprojects work inherently for an economy, as discussed in this research essay. They have a substantial role in global demand and supply-side because it is always preferred to become a cost-effective organization. Due to better equipment, better infrastructure, and workplace, an organization can work better for employees and provide them better opportunities. This set up also help to bring state of the art system of information. This research essay explains the role of megaprojects, their significance, and persistence in today’s economy. The purpose and scope of these projects are discussed. The global environment is related to the structural aspects of extensive projects. The impact of megaprojects on society is also elaborated in this paper. Global suppliers, contractors, and team members are crucial to working under project management. They not only act globally but also provide and achieve the advantage of a professional team and cost-effective systems.



The current global environment thrives due to intense competition. Organizations must consider their behavioral practices to place the importance of project management. It is critical to know that global projects are managed by integrated informational technology tools. The scope of cultural differences to manage complexity and risk of the project is always extensive when viewed under mega projects (Bovensiepen, J. and Yoder, L.S.M., 2018). Integrated IT tools enhance focus on improving competitiveness, innovation, and effectiveness. A review of research studies provides ample evidence about global project management. The effect of global projects on society and their implementation develops a managerial framework.

The rationale of this study is to explore the impact of global megaprojects on society. When global projects are developed, improved performance and structural maintenance are viewed. The study begins with the premise of megaprojects and project management scope. It will discuss the interaction of integrated IT factors to accomplish megaproject development. The interrelationship of these variables will define the role and responsibilities of project management. To that end, key concepts and theories of project management will be included in this paper. Critical evaluation and reflection is also discussed in the paper.

Global Project Management

Megaprojects, energy infrastructure, transport, urban regenerations schemes, new towns, city clusters, and technology parks are some examples of megaprojects. These are reconfigured spaces that have a prominent role of local and regional elites as well as public-private capital (Cummings, L., 1997). The design and implementation of megaprojects are according to the need for harmonized scales. This structure increases the global visibility and urban competitiveness.  In a diverse socio-economic context, the political power configuration exhibits a unique relationship between regional, national, local, and universal domains. The meaning of planetary urbanization also presents the nature of urban projects and their location that adds to the urbanization process. Due to urban competitiveness and development, the megaproject construction has a significant role in globalization and neoliberalism (Bovensiepen, J. and Yoder, L.S.M., 2018).

The megaprojects actively participate in the planetary urbanization. These projects are nominated as privileged particles that contribute to development. They are also considered as trait making. They not only change the structure of society but also fit in the pre-existing structure of society and attempt to modify it. The megaprojects in urban areas offer different packages of development (Purkayastha, P., 2017). There is a clear relationship in megaprojects and development because massive scale development is attributable to the iconic design that transform the image of a city. The scope of urban governance to entrepreneurialism is based on a global networking that defines perceived linkages to global economy. In regaining global visibility, the quintessential economic strategy serves representational transformation (Fang, J., Fu, Y. and Yao, D., 2010).

Megaprojects are the immense scale investments that attract public attention, so a substantial impact on communities occurs. Megaprojects bring a positive change in the economy, in terms of increased spending and buying. There are different aspects of the city related to megaprojects that deliver long term changes. Though complicated projects face economic fluctuations and many other methods like cost estimation and forecasting, bring shortcomings. The urban megaprojects also effect on societal groups due to their broader domain—the negative and positive effects of their implementation move with demographic migration. In the context of the city, native and non-native groups face change in identity, character, and physical environment.

The concept of sustainable urban development under different purposes serves the urban future. In European cities, minimum use of natural resources, space and efficient administration, protecting public health, and equal access to resources are some main objectives considered before developing megaprojects (Anantatmula, V. and Thomas, M., 2010). The significance of sustainability is related to social, economic, ecological, and cultural needs under urban indices. In Iran, to maintain urban tourism, a complex in Padideh city is formed. The complex is built on more than 50 hectares and consists of shopping malls, hotels, entertainment, Water Park and apartments. This example of megaproject at the municipal level is considered due to its national, local, and regional importance and to attract citizens. Arranging an undertaking is connected to the improved creation and utilization of crude material. Literature has concentrated on critical advantages and structures necessary for an economy to look for financial development (Anabestani, Z., Sarvar, R. and Hajiluie, M.O.M., 2016).

Impact of global projects on society

The socio-economic significance of megaprojects is based on globalization. Four global processes are attributable to neoliberalism and globalization. First is city-based competition at the worldwide level. Second is knowledge economy mobility and growth, third is the movement of investment from physical to human capital, and the fourth is market rule ideology and its dominance. Significant economic and political change is associated with megaprojects. Increased complex projects tend to increase foreign direct investments. This indicates a wide relationship between urban development and globalization. If international direct investment increases, it brings a change in the economy, so the centrality of manufacturing industries move to information-based development (Habison, R., 1985). Global foreign direct investment services increase the extent of global capital mobility. It develops the aim of capturing a world share of mobile wealth; the situation of global competitiveness brings economic survival.

Megaproject impacts positive on economic productivity, development of infrastructure, quality of life, housing, recreational activities, cost of living, and public prosperity perception. Research studies argue that the efficiency of most populated cities is based on accessibility level. There are specific patterns required to use land and transportation that can bring immense scale benefits. The relationship in prosperity and urban growth guides the geographical nature and socio-economic status. The megaprojects work significantly to shape society. In modern project management, customer relations, and economic profitability matter most (Korytárová, J. and Hromádka, V., 2014). The projects are linked to utility values and financial investments. They need initial outlays, but utility value differs from the investment costs. The megaprojects are critical to change the fate of any nation, and in less created economies, these structures improve remote direct venture. They are additionally impressive to upgrade the salary stream in the marketplace.

In public and private undertakings, client or customer holds an important role. The scope of economic performance is linked to megaprojects so they collectively induce change in the society. In the matter of development, the organizational actions work significantly for community. The social impact is all about wellbeing of community in terms of economic growth, better economic opportunities and access to opportunities. The megaprojects always behave positively with the benefit of society and this impact is counted positive in terms of economic value. The scope of global project is linked to globalization because all over the world, economic development is attributable to these megaprojects. Megaprojects give a reasonable guide under undertaking the executive’s system (Purkayastha, P., 2017). They are enduring segment of the task the board on the grounds that in dealing with an enormous scope venture, the industry needs to concentrate on arranging and authoritative structure.

Project Management concepts

Management theory today relates to construction and engineering projects. The management concepts related to organization and labor coordination work since the 19th century under the transition of entrepreneurial capitalism. The classical theory under management framework undertakes two primary schools of thought. The first one is scientific management, and the second is the administrative theories. The scientific management allows efficiency framework, for instance, under the growing industrial production while the managerial theories suggest further discussions. These are bureaucracy and administration. The bureaucracy is based on the principles of bringing changes in society under social sciences. The administration approach was developed by a mining engineer Fayol that categories classical theories into further concepts.

The scientific framework allows for the elemental work under the rule of thumb method that is based on competence and set out some regulations. The other purpose is related to the cooperation carried out to work on a decision-based mechanism (Korytárová, J. and Hromádka, V., 2014). This process is based on specific details that need administration. Under project management, classical theories are related to the human relations movement. The behavioral approach presents that management and organization work on an ongoing process under a dynamic framework to enhance social wellbeing. This process undertakes consideration of human aspects (Purkayastha, P., 2017). For example, a theory of motivation in project management is presented by McGregor that follows motivational dimensions. The motivation theory states that managers can develop a condition where employees confirm the expectations of managers. The behavior can be motivated where it is desired according to the satisfaction. This further needs physiological safety and fulfillment of social needs.

Under a project management framework, dynamic and static concepts highlight the notion of the organizational environment. In a dynamic environment, the exchange of information occurs under either stable systems or chaotic systems. The durable systems are about the input of limited sensitivity, and chaotic systems are about the high sensitivity systems. This concept is based on the chaos theory that highlights individual cases. The dynamic aspect is further based on the non-deterministic element that works on the basis of the global cascade. The complex systems are about the characterization of resilience or sensitivity, which can bring minor changes in the input. The complex system is based on complexity theory.

The project management theory is based on four leading schools of thought. First is industrial, it is about encompassing of Smiths’ labor division to accomplish work activities under administrative approaches. The second is humans that surround human aspects as the behavior of an organization. The third aspect is biological, which represents the system theory and incorporates static and dynamic systems.  Due to the structural framework, the deterministic characteristics are included in this system.  The fourth approach is evolutionary that represents non-deterministic complex systems.  For project management understanding, these essential concepts work integral. Fayol’s function of project management is divided into five parts; for instance, it plans to forecast, to organize, to coordinate, to command, and to control. The traditional approaches of project management are linked to the visibility of work structure, its time scale, and complexity (Purkayastha, P., 2017). Under the project management framework, the process-based systems work integral, while lean and agile methods are moved with traditional theory.

Under project management aspects, the totality of work is linked to semi-permeable boundaries of works that act as influencing vectors. The initial decomposition is related to initial transformation. The strategic business objectives are essential to consider the influencing vectors and their required timeframes. In large projects, the exclusive focus is to satisfy the client; otherwise, it’s not possible to get project success.

Critical Evaluation & Reflection

Megaprojects are a basic need of metropolitan cities. Research studies have discussed that public, private partnership, and regional structures as complex projects form the most significant settlements of the economy. Literature has focused on key benefits and structures necessary for an economy to seek economic growth. The megaprojects are essential to transform the destiny of any country, and in less developed economies, these structures improve foreign direct investment. They are also considered to enhance income flow in the marketplace. The megaprojects are long term transformations for any country that lead the underdeveloped nation to a developed one. They offer the opportunity to many sectors of the economy to boost and increase their rate of economic development. The megaprojects are also a form of power generation for the economy because of the development of related structures, transportation, and raw material (Timo, P., 2013).

They deliver clear benefits to the existing physical assets of the country, some main advantages of megaprojects are; optimal use of natural resources, irrigation expansion, improved quality of life, the opening of new markets, enhanced productivity, opening up of trade, increased efficiency of government and better infrastructure of the economy.

Megaprojects provide a clear roadmap under the project management framework. They are a perennial component of project management because in managing a large scale project, the industry has to focus on planning and organizational structure (Purkayastha, P., 2017). Planning of a project is linked to the enhanced production and use of raw material. Project development is linked to the managing of team members, suppliers, and partners. The global impact of project management is seen from the extended levels of a project team—for example, deployment of a new management system work to involve highly specialized teams under the global company. The relocation of highly advanced machinery and professionals to a certain project is based on expertise to handle a complex project and reduce cost.  In my view, megaprojects are large-scaled functions that are inherent in the global economy, and their influence on the globalized world is significant because one segment attracts others.


Megaproject management and its sustainability is a key issue in the global world. Large scale projects are the cornerstone of any economy because they aid in production and work to enhance development. There are certain factors in urban planning that matter mostly during planning and implementation. Urban context mostly focuses on managers, leaders and entrepreneurs to remember the scope of decision making elements. In viewing the global project management and its influence over globalization, the effective communication, efficient coordination of stakeholders and team members’ interaction is positive to consider. Megaprojects are a key part of any global economy, and this link can be better understood by the connection of project management. The societal forces that work to determine project management are socio-economic, regional, and local factors. Global or mega projects are a key part of an economy, and their influence on society is great in terms of economic development.


Anabestani, Z., Sarvar, R. and Hajiluie, M.O.M., 2016. The Effect Of Mega-Projects On Sustainable Urban Development From The Perspective Of Citizens (Case Study: Padideh Tourism Complex Of Shandiz). Turkish Online Journal Of Design, Art And Communication, 6(JLYSPCL), pp.374–396.

Anantatmula, V. and Thomas, M., 2010. Managing Global Projects: A Structured Approach for Better Performance. Project Management Journal, 41(2), pp.60–72.

Bovensiepen, J. and Yoder, L.S.M., 2018. Introduction: The Political Dynamics and Social Effects of Megaproject Development. The Asia Pacific Journal of Anthropology, 19(5), pp.381–394.

Cummings, L., 1997. Waste Minimisation Supporting Urban Tourism Sustainability: A Mega-Resort Case Study. Journal of Sustainable Tourism, 5(2), pp.93–108.

Fang, J., Fu, Y. and Yao, D., 2010. Application of Meta-synthesis Method in Project Management of Large-scale Complex Projects. Management & Engineering, pp.3–10.

Habison, R., 1985. Time and cost securing in complex large-scale projects. International Journal of Project Management, 3(3), pp.178–181.

Korytárová, J. and Hromádka, V., 2014. The Economic Evaluation of Megaprojects – Social and Economic Impacts. Procedia – Social and Behavioral Sciences, 119, pp.495–502.

Purkayastha, P., 2017. Managing innovation projects in the global system. Proceedings of Engineering Management Society Conference on Managing Projects in a Borderless World.

Timo, P., 2013. Development at the Cost of Violations: The Impact of Mega-Projects on Human Rights in Brazil. SSRN Electronic Journal.

Vickerman, R.W., 2012. Cost–Benefit Analysis and the Wider Economic Benefits from Mega- Projects. Decision-Making on Mega-Projects.





This study investigates making ethical decisions across the globe. It explores how managers can incorporate ethical issues across the world and consider them in their decision making. A Literature review was conducted from peer viewed articles, and as per the findings, ethics and rule differ from culture to culture. Rules and ethics that apply in one part of the world won’t apply in other parts of the world. Yet specific laws apply similarly, including discrimination including gender, race, sexual orientation, etc. Furthermore, the realization of the value of ethics in business also needs to be enforced down to each member of the hierarchy. Even if a single team member feels that the manager’s decision was biased in any case, he/ she will not have the same loyalty with the firm again and might go as far as making a petition against that brand. Ethical concern implies realizing that missing one transaction now is better than losing even more in the future, as the business has a reputation for not being truthful. Another realization was that the potential for ethical conflict is growing as companies from the US join China for production. While knowing the essence and history of both cultures will contribute to an appreciation of the basis of their ethical process. It’s essential that Western marketers realize the cultural differences of their competitors.


Incorporating ethical principles in the business refers to using the norms of what defines ethical or unethical conduct in that community as the foundation in terms of the strategies and policies applied in a company. Ethics influences behavior inside any firm, from the owner to the lowest-ranked team member. The actions of the business heads towards clients, staff, and creditors impacts the conduct of its workers, who look up to him to set the norm. Compliance of strict ethical practices is mandatory, resulting in consumer satisfaction, higher productivity of staff, and having a strong and exemplary reputation in the market and the society. When global business ethics issue is brought up, most people automatically concentrate on corruption and bribery. This paper investigateshow managers can incorporate ethical consideration in decisions making.

Literature Review

P.C. Wright, in an article, describes the necessary economic reforms and the existing condition of business ethics in China. He explores the ethical precepts of a group of Chinese experts who are participating in a Mainland Chinese management learning program. The study provides a standard that not only tests the existing state of corporate ethics but also looks at potential improvements over the past five years. From these results, guidelines are established that are useful for policy-makers and executives wishing to conduct business with Chinese nationals.  (Wright, 2003)

Yongsun Paik, in an article, studies the importance of ethical decision-making while managing companies. Business ethics differs apply on all societies and functions alongside culture & time.Their study addresses 2 critical questions that were raised regarding the issue.As to whether the national differences in managerial theories regarding ethics continue over the period and whether how vital is this association amongst ethical decision making and a managers thinking process. They performed a survey on ethical decision-making while takingKorean managers as sample. A cross-cultural & cross-temporal comparison was established in line with the findings of the previous studies with the same questionnaire at different periods. Their research depicted that Korean managers have become more dependent on the rules applied globally in terms of ethical decision-making. (Paik, 2019)

Wendy S Becker is an article that discusses an exercise involving new employees to teach through a moral dilemma. A predicament where two or more beliefs contradict one another can’t work together. Ethical business dilemmas affect four significant areas: human resources, trust of customers, and corporate resource use. They realized that it is most challenging to define ethical dilemmas as they mix many different fields. New workers are particularly exposedto this because they are frequently fresh and have knowledge. They have not yetmixed into the organizational culture of that company. Management of human resources by providing orientation and training to the new employees can play a critical role in fostering an ethical culture of the organization. (Becker, 2010)

Dennis A. Pitta, in an article, discuss the value of knowing cultures from across the world. The study highlights that US advertisers are familiar with US ethics & principles. However, when Americans come across the emerging market giant, China, the norm can lead to building conflict related to ethics. The potential for ethical conflict is growing as companies from the US join China for production. While knowing the essence and history of both cultures will contribute to an appreciation of the basis of their ethical process. It’s essential that Western marketers grasp the aspirations of their competitors from around the world. Realizing the cultural foundations of these different cultures is integral to ethical conduct in both the US and China will provide a marketer with the skills required to be effective in the cross-cultural industry. Implementing that information with a simple set of management guidelines will make the importance of that understanding a reality. (Pitta, 1999)


Ethics in management practices differ from culture to culture, especially those practices that involve human resources. Local cultures change the way people perceive the relationship between employee and employer. There are no simple social rules in many societies that prohibit discriminations that’s based on age, gender, ethnicity, sexual orientation, disability. Companies that neglect the needs of the community do not automatically face adverse repercussions. A small business owner who implements innovative approaches to help community members can gain rewards in terms of making such ads and get recognition from the industry.

Some businesses also have goals for recycling, eliminating waste, and donating to some local charities in their business plans. Ethical consideration includes recognizing that the organization and its staff are community members and have a duty to be positive contributors to community well-being and to protect the environment. Yet, it is integral to follow business ethics across the board.


It can be concluded on the fact that Management ethics are a central aspect of corporate ethics. It is the collection of moral values & convictions which influence each team member’s behavior. Although most people believe that ethics coincide explicitly with rules, this is not always the case. It also comes under management integrity to do the best thing for staff and clients, and to show the ability to go the extra mile. The application of these ethics globally needs firstly, the realization of the value of ethics in business. Even if a single team member feels that the manager’s decision was biased in any case, he/ she will not have the same loyalty with the firm again and might go as far as making a petition against that brand. Ethical concern implies realizing that missing one transaction now is better than losing even more in the future, as the business has a reputation for not being truthful.


Becker, W. S. (2010). Ethics and human resources: An exercise involving new employees. Journal of Human Resources Education, 26-34.

Kolk, A. (2016). The social responsibility of international business: From ethics and the environment to CSR and sustainable development. Journal of World Business, 23-34.

Paik, Y. (2019). Convergence in International Business Ethics? A Comparative Study of Ethical Philosophies, Thinking Style, and Ethical Decision-Making Between US and Korean Managers. Journal of Business Ethics, 839–855.

Pitta, D. A. (1999). Ethical issues across cultures: managing the differing managing the differing USA. JOURNAL OF CONSUMER MARKETING, 240-256.

Wright, P. (2003). Ethical perceptions in China: the reality of business ethics in an international context. Management Decision, 180-189.





According to several researchers and academicians, technology is an entity that serves two purposes, it complements people working jobs by improving their ability to perform certain tasks and sometimes even replaces people by automatically doing their jobs for the firm they may be a part of. For example, during a crisis situation, people tend to call out for help from their phones, whether it is reporting an incident, comment on the measures taken to deal with the incident, or explore information revolving around the crisis. The most obvious response is via social media. Hence this paper helps realize that technology is, for most situations, the first helpful tool. The data collected via this technology is logistically analyzed, and then sent to respective agencies of law and journalism so that people employed to make decisions regarding the situation can fulfill their jobs. In this way, the collection part is done by technology, the transmission bit is also done by technology, the categorization is also, to some extent done via technology and the only job that humans fulfill is that of analysis and decision making.  Humanitarian responders are then assigned according to the seriousness of crisis at hand. This data collected from technological sources has insurmountable potential , especially within command and control, and can also be exploited because it has the capacity to increase the usefulness of the crisis response.

However, the collection of data has to be optimum, too much causes confusion in decision making, and too little is not enough to reach a decision, especially on social media. Therefore, it is important that we use the computational capacity of our machines in such a way that it results in making the analysts’ jobs more convenient and present them with the key features and relationships in the data that eases the path to a final decision.

(Gibson et al, 2016)

Technology can be a very helpful tool for the organizational design of an agency, and in the impact for job design, the role of organizational design has to be discussed. The managers have framed boundaries to be barriers that should be eradicated to aid in collaborative work. These boundaries have been examined in detail and experiments carried out to make sure that results prove a relation between social distance and interaction of the people, and also come across findings that show that changing the internal architecture of the firm can create more interaction opportunities. But are these opportunities availed by employees or not? This question has been answered in quite detail keeping the intellectual ability of individuals in mind, and its relevance to their sociable ability. A group’s ability to interact and work with each other was measured, and technology was made use of, for fulfilling this task. The people involved in the study were asked to wear a sensor, known as a sociometric badge which comprised of an infrared (IR) sensor that was for capturing the person they were facing, microphones that were for capturing if they were talking or listening, accelerometer that was used for capturing bodily posture, and another sensor making use of Bluetooth technology for capturing the location of the employee in the workplace. These sensors recorded data with 10 ms intervals. With all the data collected, it was analysed and noted that there was more virtual interaction than live. In another study which set the previous one as a control experiment, replication of the same data was done and some changes made, the results showed that some decreased virtual communication while others increased, and this was irrespective of the way the workplace was designed. The final conclusion was precise, that is, electronic interaction had substituted live interaction even when the firm underwent organizational design. As a result, productivity declined to some extent, because of lack of privacy of employees which brought a dip to their individual working performance and consequently affected their collective intelligence. (Turban et al, 2018)

Techno-stress refers to the feelings of stress and anxiety which are associated with technology and usage of technology at different levels. Literary pieces like (Florkowski, 2019) are beneficial because they present literature behind workplace production and job satisfaction because they are found to analyze this technostress and assess job satisfaction according to the models behind technostress, its link to HR department in companies and the rate at which human resource technologies are perceived qualitatively. Technostress also couples with organizational design factors and their combined effects are studied and research carried out to improve the quality of work of the HR environment. In this regard, more than 160 firms from the US and Canada were taken for survey and the perceptions of HR staff taken into consideration. The survey evaluated how techno-insecurity and techno-stress impact job satisfaction among the people working, and the people who are being worked for.  There are several hypotheses mentioned in various literary pieces, most of which are studied and discussed in this paper and their findings analyzed. These include, HR technology usages instills increasing stress levels which differ with a department’s technology literacy. HR personnel not having IT knowledge face the grave issue of having to master IT interfaces and come up with ways to counter new risks that technology might be prone to with every passing year. This has a negative effect on HRT work stress impact. Moreover, HRT job-insecurity impact will affect work stress positively. Aggravating the problems that HR is exposed to as a result of technology also include the possibility that HR may be seen as being a department that dodges its responsibilities by offloading work.

The findings found in the paper consider HR-staff attitudes in technology rollouts. We can also formally assess how collaborative work in the HR department is affected by HR technologies. These also interfere with upholding the capital that HR generates. Decreased capital would result in concern regarding job satisfaction in other professionals. (Florkowski, 2019)

Technology transfer, organization structuring, and academic entrepreneurship are important keywords to have a separate discussion delegated to them entirely in the subject of technology’s impact on job design. Literary pieces discuss that technology transfer is the commercialization of research based university work, and is one of the most well researched subjects in nations worldwide because of the intensity of the benefits that come about from it. One of the main ones is economic development, which stems from innovation and products released by employing different innovative strategies which aid the progression of existing industries, and also induce the birth of new industries. As a result, professors, academicians, researchers, practitioners and authoritarians all are adamant on promoting technology transfer because of which it is a well-known process. But as many benefits as it instigates, it is an extremely complex procedure owing to its requirement for monetary resources in substantial amount. Moreover, risk assessment methods, when implemented on technology transfer ecosystems, mostly have highly consequential and probable risks in store. When coupled with organizational design, technology transfer can become a blessing because the components of organizational design are interdependent because of technology transfer and within this ecosystem, structures undergo comparisons and researches which prove that resources are effectively utilized. Despite the affluence of the TT literature, we come to the conclusion that it focuses only on the technology transfer components separately, and rarely considers the ecosystem as a whole. It is imperative to review the organizational design of the TT ecosystem and indicate parameters of knowledge gaps found in it. While literature identifies four primary components of the TT ecosystem(TTOs, Science parks, incubators, university venture funds), new methods for studying the facilitation of academic entrepreneurship, such as university-based entrepreneurial ecosystems and accelerators are also coming to the surface.(Wright et al, 2019)

One of the technologies impacting job design in organizatons is SaaS(software as a service). It was beneficial for the firms, but had adverse effects on the people working in the IT department such as stress and anxiety. SaaS brought about advantage of cost effectiveness and scalability and was a user friendly interface for users but it had long-term adverse consequences which included the IT staff burdened by tasks like getting accustomed to the infrastructure change when the firm transitions from manual interface to SaaS, being familiar with the risks that come with any technology, eradicating those risks etc. Software management both at the employees’ and the clients’ side is done by the IT staff, which adds up to their overwhelming state. To assess the these factors, appropriate research models were designed by triangulating perspectives of users and IT professionals. As the responsibilities of the cloud computing provider increase and create a higher degree of SaaS usage, the firm’s original IT proficiency and organizational IT structures prove to be inadequate. Uptil now, the stance of current literature regarding this was trivial but a study was conducted based on individual-level research making use of the socio-technical system theory. This theory is one of the most effective ones regarding exploration of IT implementations in organizations; more than 30 academic journals and literary articles were reviewed to broadly complete the study in three fields of research. The findings showed that if the socio-technical consequences were not aligned, IT personnel will experience fear of redundancy and their lack of productivity will decrease productivity in the whole organization according to thesis of STS theory. Job satisfaction of professionals all depends on how highly radical the changes due to SaaS will be; a higher level of SaaS usage causes operational as well as organizational problems. Relevance of (Jede etal, 2016) can be seen prominently to the topic in question because it includes how SaaS can increase productivity and provides details on how it can change the social structures within an organization.

Fuel technology is often assessed by the use of decentralized energy systems and the analysis of this is an important aspect to review when discussing technology’s impact on job design.  Uptil now, the electricity requirements of the world were met by use of technology in a centralized way however with changing times, decentralized energy systems are employed for bringing about the distribution of energy. Layouts of technologies are laid forward and everything required to convert the distribution system from centralized to decentralized one are catered to by data collected. Conclusions based on findings were found to be more in favor of inclining to the decentralized method despite its lack of cost efficiency, because a decentralized method has better performance statistics.

It is worth noting that a decentralized energy system brings about benefits such as reduced carbon emissions, advancement in efficiency, cost effectiveness and preservation of credibility of the firm. The energy market and infrastructures are thus left with no choice but to develop these systems further. Optimization of this decentralized energy system will turn out to be a boon because for the energy efficiency and renewable penetration by the use of multi-energy systems. However, this system is quite challenging. These challenges such as the substantial amount of technology literacy required and resources needed to support full functionality of this technology , and fulfil the industry’s energy demands have prompted academicians and researchers to come up with computational algorithms and tools to deal with these issues. The agenda for the incorporation of decentralized energy systems and multi energy systems comprises of electrolyzers and fuel cells that are primary elements of electrochemical conversion technologies. This agenda is beneficial because it provides input on the decentralized framework of technology. (Gabrielli, 2018)


DEA ( Data Envelopment Analysis ) is a technique which has prior approaches and models associated with it, making it a highly centralized technique across the world of technology. It also has the efficiency principle that acts as a model however there are limitations to it, which make it challenging to perform analysis. The assortment of technology often proves to be a restraint, and to overcome it, researchers make use of meta data, meta technology ratio and relocate resources so as to avail full benefits. Research proves that several different kinds of DEA models have been put forth and their application tested in different fields out of which the most notable implementations are fixed cost allocation and resource allocation. The principles which are employed to successfully carry out these approaches are efficiency invariance principle, and efficiency maximized principle. But since technology has its own fair share of limitations, both these principles are often not taken into account in the desired way. Among DMUs, several technology gaps exist and this instills negativity in such a manner that needs to be countered with effective research and strategic skill. This can ultimately present more useful approaches. Analysis of these approaches is carried out and it is assumed that DMUs have similar production technology level which is more often than not, not the case. Calculations and summation formulae are taken into account to fulfill quantitative requirements of this research and find parameters that support findings and conclusions. Subjective as well as objective ways are employed to split the DMUs in organizations into groups called macro units like the social network platforms, rather than assess individually.

However, research proved that the efficiency of technology only progresses if centralization technique is applied on the DMUS in question and the shortcomings resulting due to allocation problems can be further investigated with research in the future.

(Ding et al, 2018)

The relationship between group technology and organizational structuring is one of the most important ones worth consideration when reviewing Technology’s Impact on job design.  For companies to own a competitive edge in market, there is a need for flexibility which comes about greatly at the expense of opting for group technology strategies. Several companies in the past have benefitted from organizational structures by reduction in operating costs, machine set-up time and clarity in roles and responsibilities shared among individuals,  however there were some limitations in the scope. When reviewing these aspects from literature, it is noted that there has been a poor link between the organizational design perspective and group technology, the only way group technology is studied is from an industrial perspective. Therefore to change the rules a little, applied systems theory was employed as a layout for studying organizational design with respect to group technology. This theory aimed at answering questions revolving around the position of group technology in the design of structures for production, the capabilities and issues regarding adoption of group technology, and the type of methods which are to be used to ensure long-term benefits. Consequently, research is conducted in such a way that three different cases are analyzed via the cluster analysis approach and the product flow approach to make groups of machines and workers in the manufacturing unit of companies. To further improve this research, another five cases are taken into consideration and findings amalgamated to reach a sound conclusion. The conclusion reflects how firms are considered about group technology when a poor performance is observed in their premises particularly regarding competitive pressure, response mechanisms, and accommodation of the constantly growing demand for better. This is because as a result of group technology, firms can separate the low priority tasks and delegate them to the employees lower in hierarchy. Therefore, it has a significant position among the range of answers for design of organizational structures. (Dekkers, 2018)

Academic literature is filled with avid authors making organizational design a focal viewpoint in their pieces. The use of strategic knowledge management is always coupled with the concepts of coding and personalization of the documented information. The real target was to enlighten the belief of strategic knowledge management in such a way that the executive committee of the respective organization which deals with IT related decisions, effectively understands that within an organization, there are limits to how knowledge is to be planned and propagated. If such an approach is adopted, outcomes will be robust and there will not be an unsteadiness situation in the organization where there is high innovation capacity and low work productivity instead equilibrium will be established. Corporations like Xerox suffered the consequences of not developing ways to make use of strategic knowledge management and this is what literature like (Willmot et al, 2017) aims to avoid. In this regard, analyzing is done of literary exemplars to answer why firms are required to emphasize on an equivalency strategy between coding and customization in the milieu of strategic knowledge management. This will bring about advancement in overall performance. Research findings show that there exist three insights and two pitfalls which any company wanting to adopt strategic knowledge management should know about. These insights are, firstly, a significant highlighting of codification and personalization might result in risks regarding the propagation of knowledge. Secondly, if an equilibrium is not established, there are little to no good outcomes on the organizational part because all efforts are considered scrappy. Thirdly, managerial employees should realize the need for equilibrium establishment. The pitfalls are, firstly, overriding of coding will create an over-disciplined atmosphere where there would be no room left for innovation and secondly, substantial reliance on personalization will leave no room for relevant routines and respect for ideas of employees. (Willmot et al, 2017)

Big data analytics deserves a separate seat on the table when reviewing technology’s impact on job design. Academic literature has, in detail, explained the capabilities and structural technicalities of big data and it is used to deal with large sets of data to improve performance. (Akhtar et al, 2019) has done commendable research on big data and has investigated areas of analytics that have not been explored before. Big data is a quite useful resource because it has benefitted organizations in terms of increasing their financial reporting greatly and has given employees necessary skills and enterprises the performance which is needed in the competitive global market which is becoming more and more technology oriented with every passing day. An outline of the research methodology when laid out in front of us helps us identify some limitations too and also clarifies the need for a high monetary input so that enterprises know beforehand what they are adopting. Not every organization has the human resources (both at an individual as well as collective level), industrial resources(machinery and well equipped knowledge of usage of this machinery) and technical resources(mathematics, logistics) which are a prerequisite for carrying out big data analytics. Nevertheless, research samples were taken from agri-food industries and based on the findings, hypotheses were proposed, which said that the performance of business and the results of the actions of big data development were both positively linked to the usage of the big data-savvy teams and the skills they possess. Organizations are explicitly mentioned that experienced improved service and product quality, punctual deliveries and addressed inaccuracy challenges with utmost expertise owing to big data simultaneously making sure that environmental concerns like recycling and water efficiency are not compromised. The conclusion of the research states how it plays a key role in measuring the gap earlier research of big data analytics. The research provided thorough insight to the evolution and implementation of big data analytics in business operations. (Akhtar et al, 2019)

A basic smart phone application can be helpful in studying the safety of insulin and ICT in a centralized clinical trial system. Literary examples have included hypotheses regarding the use of these and linked it to benefits brought about by use of conventional methods. The use of PHR is encouraged, which stands for Personal Health Record, an online application which helps patients in accessing, managing, and sharing their health data and helps doctors and personnel likewise to give improved decisions and perform remote check-ups of the patients enlisted for the clinical trial.  These records facilitate clients by maximizing the insulin dose adjustments made to their routine by monitoring levels of glucose, insulin and appropriate data collection of the patient. Research conducted to determine the safety and efficiency of PHRs and its application brought forward facts such as a confirmation that the ICT-based clinical trial was a stable one. Recruitment strategies varied according to subjects and their diagnoses, and the trial went on for 24 weeks at the end of which patients were randomly placed in two groups, one the ICT based intervention group and the other was the conventional intervention group. In the latter, subjects were asked to save and send their glucose and insulin information in addition to their step count through PHR application, while in the former, subjects received valuable feedback regarding their condition. The main hypothesis was that the former group was benefitted more than the latter group. Results of the research revealed that a centralized method of sharing and using information allowed better decision making for patients and also proved the stability of collection via the PHR application to make remote patient assessment convenient. This research studied the use of a centralized data system with respect to healthcare and showed new perspectives for future research. (Kim et al, 2017)



Decentralized networks like the P2P network are overviewed in quite detail in many different academic literary pieces which demonstrate the benefits of P2P that include, but are not limited to, load balancing, fault tolerance, and rapid data exchange. Reference to the implementation of decentralized networks in the past is also made as an attempt to draw a comparison between then and now and how the layouts varied. P2P ensured safety and privacy of users information both in the public network aspect and the private network aspect by preserving privacy where required. The research study procedure employed in (Kryukov, 2018) provides apt detail on how a decentralized scheme of networks can facilitate the job performance of employees hence it is reviewed in the umbrella of topic “Technology and its Impact on Job Design”.  Research is being conducted at a global level to carefully assess P2Ps in order to reap the advantages they offer, that is, being adaptive, operating perfectly even without special administration, and allowing flexibility to the participants of joining and leaving the network as they please. They are efficient highly because they result in good work performance as there is integrated usage of advanced computing resources via the Internet as well as proper organization of decentralized data storages.  In this review, attention is given to the last part i.e creation and organization of data storages. Data storages are further classified according to what they are used for, firstly those utilized in storing, searching, and exchanging public data and secondly, those utilized in storing private data, these systems are particular about security and reliability. The concerns of clients and adequate responses of IT personnel are both effectively navigated to one another based on distribution control methods. P2P decentralized networks can be further classified into unstructured and structured networks, examples of which are Chord and Freenet. It is thus demonstrated that the field of information technology has a lot to offer to P2P networks and to deal with technical problems, more research in the future has to be conducted. (Kryukov, 2018)

Data warehouses and business intelligence are inter related terms and are reviewed in literature side by side. Data warehouses are effective for storage purposes and business intelligence is favorable in the discovery of knowledge based on three different areas namely, diversification in data services, standardization in interfaces and monitoring of services. Research comprises of sample models and reference systems whose layout’s foundation is the intelligence business model framework itself. Whereas, the models are useful in specifying job functions and characteristics.

Distributed reservation is a key concept of the organizational design within a firm. Trends like data warehousing act as an inspiring factor in considering rather subtle computing techniques to enhance business strategies. These techniques come coupled with certain rules, such as assurance of the research having a sound and persuasive conclusion, minimum usage of multimedia such as images and visual audio and maximization of usage of textual and numerical data. In accordance with this rule, the paper was greatly comprised of tabular representations of statistical details of the research as well as diagrams like charts and graphs to show the trends. Mathematical formulae give quantitative results of the research and thus support the effectiveness of the procedure put forward. When these paradigms are presented in research based studies, issues in marketing models are solved to some extent and the impact of data warehousing and the transition resulting in job design from technicalities are understood.

Consequently, overall performance gets a boost and opens opportunities for future research that will follow the implementation of the models proposed and integrate them with usage of multimedia as a transfer medium. (Liao et al, 2019)


Shifting to the cyber era and the transition phase from conventional to technology based is one of the most challenging and demanding areas of job design because technology has been, and is continuing to advance every single day and while these may cause the parties involved to evolve greatly, they also give birth to more complex issues. Many changes of work design are complicated and still unexplored. However, to have a full understanding of these shortcomings, more than 40 people having extreme expertise in the digital field are questioned and their opinions surveyed. Employees of firms had a long lasting connection with their respective workplace and their roles within the firm were often exchanged by more competitive ones because of artificial intelligence and teleworking catering to the less important jobs. Technology causes technostress and poses as a threat to the leadership skills of people in managerial positions, in addition to bringing substantial changes in the person’s professional as well as personal life. Four key themes were revealed which focused on work design and leadership with the first theme reflecting transition in the work life and health domain with everincreasing demands of workers and leaders. The second theme implied changes coming about due to the use of information technology that affected working media and collaborative processes. The third theme was inclined towards bettering the performance and discovering potential talent present in organizations and the fourth theme comprised of organizational hierarchies and the exchange of roles and responsibilities which happened as a result. Therefore, digitization in entirety can be very happening for an organization and academic literature acts as an assembling ground for the fragmented pieces of knowledge regarding the conversion of companies to technical ones. Thus, future research can benefit from these results and create awareness among owners of enterprises to fully equip themselves with the needed skills and resources to counter challenges of technology. (Schwarzmüller, 2018)

When technology is employed in workplaces, job design is greatly impacted and entire human roles within the workplace change.  A model is presented to study such changes in an enterprise. Job characteristics are quite complicated because certain jobs are an amalgamation of physical and technical cognitive skills. Cyber-physical systems(CPS) is the ultimate goal of almost all organizations in the business sector. Details of work design and job performance differ according to the sector where the personnel is present, that is, whether they are a part of production or managerial decision making.  Sensors and similar machinery have replaced employees because of the automation process. And the employees’ jobs have escalated to a high degree of complexity whereby they are supposed to make decisions, innovate and manage coordinated of these automated systems. It is true that literature is quite vague regarding how the transition towards CPS impacts work design.  Therefore, in our review, we aim to develop a layout in which qualitative and quantitative assessment will be carried out in great detail and will be related to the capabilities of CPS on demand and supply chain of the enterprise in addition to human information processing. Technology’s main role is to improve human productivity but when this comes at the expense of their job autonomy, it brings about adverse effects. The processes and outcomes of the structural hierarchy of work is the determining factor in individual as well as organizational success. Therefore to have an understanding of these integrated processes and systems, knowledge regarding IT, mechanics and electronics is mandatory to avoid malfunctioning systems. This analysis is useful however the limitations provide directions to future researchers.

(Waschull et al, 2020)



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Banks in Malaysia performed well in 2019 as fintech disruptions are reshaping the industry and external disadvantages, as well as the uncertainty brought about Brexit and trade disputes among China and the USA. Outside causes do not only decelerated worldwide requests but also triggered fear of a recession and protectionism, affecting business confidence and ultimately affecting loan demand?

Rupeika-Apoga et al. (2018) found that despite these challenges, Malaysian banks have demonstrated reasonable takings and resource trait, with enough wealth shields to withstand likely pressures, despite falling profit borders and loan drawdowns.

Allawala, Allawala& Saadiq (2018) stated that there are around 12 investment banks, 16 Islamic banks, 25 commercial banks, and one global Islamic bank working in Malaysia. The growth rate of loans and revenue of these banks shown a remarkable number rise and helping the country`s economy. An expert from MIDF Amanah Investment Bank said that industry earning is raised to 3.5 this year as it has a slow down since 2018. We are also amazed to see the loan growth has also increased by 3% to 4%, which was less than 2% last year.


Ahamed & Mallick (2019) emphasized that said modest credit from industries has steered to lower-than-expected credit advance in the year, while mortgages and retail sales have remained stable, weakening overall performance. “Companies must either delay the release of approved loans or decide to repay existing loans due to economic uncertainty”. The revenue growth with the best performance of banks are AmBank Bhd, CIMB Bank Bhd, RHB Bank Bhd but the performance of Public Bank Bhd did not perform well in the market.

He said that relatively speaking, Islamic banks continue to outpace traditional banks, with double-digit growth in revenue this year. Also witnessed FinTech’s roots in traditional banking, including CIMB International, Hong Leong Bank, Affin Bank, and AMMB Holdings, and Technology Company Grab said they are interested in obtaining virtual banking licenses in the country.

Lipton & Pentland (2018) found that CIMB Group established an electronic bank in February in Philippines recently. Besides, around 50 non-banks can issue electronic money in Malaysia, of which four-quarters provide solutions for mobile pay, accounting for 86.6% of the sector’s deals. “Boost”, “GrabPay”, “Touchn Go (TnG)”were significant in Malaysia as e-wallets. The few names are “Lazada” wallets, “Samsung Pay”, “PayPal” TnG is 55% retained by “CIMB Group Holdings Bhd”.

Kerényi&Müller (2019) realized that in terms of monetary policy, the “National Bank of Malaysia (BNM)” reduced the overnight policy rate (OPR) from 27root points in May to 3% and cut the statutory reserve requirement (SRR) from 3.5% to 3.0 in November % to maintain the monetary policy. Sufficient liquidity in the financial system. The industry’s liquidity is still abundant, with an average liquidity coverage rate of 150% this year and payments more or less outpaced loan growth. He said that meeting the requirements of the Net Stable Fund Ratio (NFSR) stipulated by the State Bank is also a key factor for banks to accumulate deposits this year.

Wu & Duan (2019) stated that the bank’s choice of assets to buy will help stabilize asset quality and thus support the bank’s Lower credit costs. Given accommodative interest rates, household/retailer credit demand has been maintained amid weak corporate demand. Despite the more nervous capital market activity, another contributing factor to revenue is the elasticity of fee income. Fee-based elastic revenue comes from enhanced funding deedsby banks so they cut OPR capital in April.

Frost et al. (2019) pointed out that given that the normalization of interest net brim occurred intwo or three quarters, the OPR reduction of the State Bank had no significant impact. In 2020, the consumer sector will continue to support loan growth and the entire bank. He said that although the OPR may be further reduced in the first quarter of next year, it will not have a significant impact on bank earnings in 2020. The insurance industry remains stable.

Gnan &Masciandaro (2018) found that the takaful business’s insurance business income in 2019 remains relatively stable. An analyst with MIDF said that the acumenamount of domestic takafulis rising gradually. As of the first half of 2009, the takaful rate has risen from 9.3% in 2009 to 15.5% double-digit growth. He said Syarikat Takaful Malaysia Bhd continues to be the best performing company, with its saturation increasing by 30% to 35% and net profit rising by approximately 40%.

Hamza & Jedidia (2020) said the same could be seen in the general business area of ​​takaful, which performs better than the traditional business due to the low bottom, even local intake, and climbingcustomer knowledge. The growth of the business of Takaful in Malaysia is superior in typical insurance, adding that the market is also partly targeted by BN’s goal to increase the proportion of Islamic financial structure drive.

“Total, the insurance of life sector did well than the insurance sector in 2019 as general, as the latter is in a phased opening of auto and fire tariffs. Customs liberalization began past year, but other insurancesthat were scheduled to yield upshot is happens this year has been deferred to next year, leaving certain room for businesses participants. In the general insurance sector, due to low penetration and increased claims, the industry declined in the first half of 2019 (the first half of 2019), a year-on-year decrease of 1.4%.

Phan, Narayan, Rahman & Hutabarat (2019) realized that the General Insurance Association of Malaysia said the industry faces a double blow, namely low penetration, and rising claims. Malaysia’s overall insurance dispersionratio has lasted to stagnate between 54% and 55% over the past five years. However, he remains optimistic about the outlook amid solidlocal request, with the growth comes from takaful of family and life insurance.

It is expect people who are non-policy owners can take advantage of the renewal and the 3,000 tax deductions in takaful.

With prudent underwriting, he is also optimistic about the general insurance sector. He continues to focus on a growing portfolio of gainful products of insurance, such as partnerships, retail, and medium-sized trades in non-automotive businesses. The sector may further consolidate in 2020, and if the government redoubles its efforts to implement the regulation, all foreign insurance companies are expected to meet Malaysia’s 30% ownership requirements.

Mester (2019) stated that the intensified competition caused by the phase-out of debt in the general insurance industry might also lead to possible mergers and acquisitions between public insurance companies.

Tech ambitions in Malaysia

As a developing country in Southeast Asia with a population of over 30 million, Malaysia has experienced quite a few turbulent years. After the previous prime minister was involved in an international corruption scandal, Mahathir, 92, was unexpectedly re-elected as the country’s leader and promised to advance several essential reforms.

Nguyen (2016) found that Around 1 trillion ringgit of Malaysia with some domestic obligations encourage people to donate funds to these banks. There are many crow funding activities made by these banks in Malaysia.

Therefore, the way of Fintech paves its roads in Malaysia. Fintech helps the country to fight corruption and enhance the economy. The political leaders of the country started to realize the importance of technology and recognized the critical role in the country`s progress. The blockchain can also improve the economy of the country if taken into consideration by authorities.

Ozili (2018) realized that according to the definition of the Journal of Innovation Management, “‘fintech’ is a new type of financial industry that uses technology to improve economic activities.”

Fintech companies include start-ups and traditional financial companies, all of which are trying to trade or improve the services of existing fiscal institutions, and the popularity of smartphones has boosted the industry’s growth.

Mavrakana&Psillaki (2019) found that in addition to startups, traditional financial institutions have also joined this industry revolution.Many banks have established their fintech innovation projects, seeking new ideas for success, and then changing the way people manage money.

Malaysia’s early incubator and investment company 1337 Ventures produced a map of Malaysia’s fintech ecosystem covering different market segments. From this picture, most of the country’s fintech companies are focusingon the field of payments and loans.

Nabilou (2019) stated that considering Malaysia’s demographic edifice more than half are Muslims, Islamic finance (financial transactions by Islamic regulations) also occupies an essential position in the country, with extensiveadvance ability.

Many articles point out that Malaysia’s fintech development is very uneven. Some segments of the market are left unattended, while others are a red sea. The company also recently launched a pre-incubation crash course specifically for the financial technology sector. The session lasts for four weeks and is a lecture by a senior local bank.

Borroni & Rossi (2019) found that in the field of e-wallets, KrASIA just stated on the e-wallet app launched by gaming company Razer and Malaysian giant Berjaya Corporation Berhad. At present, the deal has settled in more than 6,000 retail point offline. Although in Malaysia, the e-wallet field is already a market segment with many players, and there are even Chinese players-Alipay and WeChat Pay, Razer’s entry has caused waves. At the same time, Southeast Asia’s online ride-hailing platform Grab also entered the payment field last year, launched Grab Pay in Singapore, and grew its business to Malaysia in June this year.

Hartmann& Smets (2018) stated that price comparison sites are also popular in Malaysia, with significant players like“GoBear”and “iMoney” in Singapore. Both platforms provide users with identification and price comparison services for insurance and credit card financial products. Started in 2012, iMoney stated in ameeting in 2017 that although its business has covered entire Southeast Asia, more than half of the company’s revenue still comes from Malaysia.

Hakenes&Schliephake (2019) noted that they have a first-mover advantage in Malaysia for two years, so we have been growing. But in markets such as the Philippines and Indonesia, we are more or less in the stage of improving ourselves and covering so many areas,” said Lee Ching, CEO of iMoney Wei said.

1337 Ventures also lists those segments that are still the blue ocean today, including credit ratings, real estate websites, and capital market transactions.

The regulation of the Malaysian fintech industry is mainly related to financing and equity crowd funding.



Literature review

Cooperation or demise: what banks should do today, large banks are working with fintech companies in a type of styles. They want to shrink enduringcosts and defend their market share by providing clients with novel products in banking. But all failed. To work with fintech companies and truly realize value transformation, banks need to have a clear sympathy of the advance model, in addition to scope and licensing issues of the bank’s modernism, locating and retained technology purposes.

Nabilou (2019) stated that given the enormous variances in size and culture between banks, they also need to determine how best to work with Fintech companies. We believe that banks can unlock the full potential of fintech within their organizations in four steps. Banks have many groundbreaking concepts; the trail is to determine the right ideas from them and embed them in technology. The complexity, size, and isolation of banks themselves mean that it is often challenging to address this challenge effectively.

Develop a fintech framework that rewards innovation

Borroni& Rossi (2019) found that for banks, many innovation opportunities not only address structural cost challenges but also enable banks to achieve longer-term benefits. On the other hand, working evaluation and return series are frequently shorter. Therefore, when the economic environment is uncertain, it is understandable that people are concerned about agreeing on the surplus hazards of these prices of investment. Banks need to settle this internal issue. This means that banks requirements with clear plans in the context of fintech strategies.

Hartmann& Smets (2018) stated that process execution must be top-down while encouraging innovation and incorporating lessons learned. To support development, a framework for adopting innovation must be identified, with clear accountability, decision-making framework, and success criteria. Employees should be encouraged to come up with new ideas and innovative suggestions through internal social media. Also, the “hackathon” (note: technical creativity exchange activities involving corporate IT engineers) also provides a window for encouraging employees to propose and express concepts. We endorse that banks clarify the basis and processes of their intentions, and then segment related information with companies. Which like to share, causes of internal and external influences, end on processes and tolerance gages, and the drivers that support the innovation context.

Selecting the innovative business model to meet business needs

Hakenes&Schliephake (2019) noted that although there are many innovative business models currently in use, banks usually adopt one of the following three few types: central, not central, or mix of both. For the central model, the main novelty executive directs the focal advance unit to grow commercial answers. This prototype can identify not only specific innovation needs and provide new ideas and concepts for the organization, but also better coordinate work with the main tools executive and linkages with obtaining activities and supplier management and risk interests. However, one might think that the main innovation unit is far away from the corporate unit to know its wants fully. If the central pattern toils fine, Fintech companies can assist from the funding and architecture they provide. If the operation is not proper, the organization may face a longer decision-making cycle, and it will take more time to find the business initiator.

Kim, Park & Song (2016) found that the non-central classic is more common in local banks. Every unit of business controls its management process so that departments familiar with the business can catch real problems faster and find innovative institutions that can provide effective solutions. The disadvantages are duplication of work, the creation of social procedures, and a dearth of regularity. Although fintech companies work closely with many banks can work more quickly with business sponsors, it is challenging to link new ideas to business needs deprived the care and guidance of a chief unit. We like to say that, mix model is the best solution so far.

Campiglio et al. (2018) realized that we believe that a clear novelty units aids banks set the tenor and communicate the right point. At the same time, banks need clear leadership to defend innovation. We praise, however, that the void among purely innovative institutions and commercial teams wishes be as close as workable. Therefore, consider it necessary to ensure the transparency of the end-to-end innovation adoption process. The parties involved in acquiring bank innovation projects currently have little understanding of end course everything, so the confusion faced by fintech companies can be imagined.

Mavrakana&Psillaki (2019) researched that our research shows that when banks seek assistance from fintech companies to drive innovation, their preferred interaction strategy is a collaboration. Through cooperation, banks can work together to develop new technical standards for future adoption. We also pointed out in the analysis that in terms of internal product development, big banks in the region of Asia-Pacific. They are fixated than banks in the many different areas, especially in the field of digital payment. They use banks to provide services to customers who have insufficient banking services.

Junejo, Shah & Bachani (2019) noted that banks in North America tend to invest in new product development, and many large US banks choose to invest in fintech startups. European banks usually take a stable method, and they may be extra to incorporate M & A into fintech strategies. Generally, just a few of the 54 banks globally surveyed conducted extensive cooperation with fintech companies through collaboration, development of independent fintech products, investment in innovative companies, or acquisition of innovative companies.

Chol, Nthambi & Kamau (2019) found that banks have initiated or participated in numerous incubators, accelerators and programs for training to gain early entrée to tools and flair without having to rely too much on fintech companies. For fintech companies, such arrangements make it easy to get the capitals, funding,data, and social breaks they need to trail their products or services prototypes. The way to integrate with FinTech companies is not unique. However, while banks want to rely on fintech companies to drive innovation, it is often difficult for them to successfully implement new and innovative technologies, regardless of the type of integration they choose.

Zhao (2018) stated that the sooner the whole bank accepts creative ideas, the faster it will achieve sustainable change. Banks should wisely value many integration copies and select a hybrid model that can support their novelty standards and lasting development plans.

Malaysia is becoming a promising fintech market in Southeast Asia.

Kephart et al. (2018) stated that as a developing country in Southeast Asia with a population of more than 30 million, Malaysia have experienced quite a few turbulent years. After the previous prime minister was involved in an international corruption scandal, Mahathir, 92, was unexpectedly re-elected as the country’s leader and promised to advance several significant reforms.

Natarajan, Krause & Gradstein (2017) realized that when analyze the data for the years 2013 to 2017 we see how they are really very significant. In terms of investment in fintech startups in the Malaysia, $6.7 billion was raised compared to $ 4.4 billion in the rest of Europe. In terms of employment at the end of 2017, the UK already employed more than 60,000 people in this sector, more than in Singapore, Hong Kong and Australia combined, generating more than £ 6.6 billion last year. In Spain, we barely exceed a thousand employees.
Safarzyńska & van den Bergh (2017) found that focusing on the main risk that I mentioned at the beginning of this article: minimizing regulatory risk. To this end, in 2013 they began to work within a legislative and supervisory framework that would allow them to create bodies adapted to the new business models developed by fintech companies.

Nyborg (2016) realized that Fintech companies include start-ups and traditional financial companies, all of which are trying to replace or improve the services of existing financial institutions, and the popularity of smartphones has boosted the industry’s growth.

Rahman (2018) found that in addition to startups, traditional financial institutions have also joined this industry revolution: many banks have established their fintech innovation projects, seeking new ideas for success, and then changing the way people manage money.

Kopp, Kaffenberger&Jenkinson (2017) researched that Malaysia’s early incubator and investment company 1337 Ventures produced a map of Malaysia’s fintech ecosystem covering different market segments. From this picture, most of the country’s fintech companies are put in the field of payments and loans.

Tsai & Kuan-Jung (2017) realized that considering Malaysia’s demographic structure-more than half are Muslims, Islamic finance (financial transactions following Islamic regulations) also occupies an essential position in the country, with considerable growth potential.

Rupeika-Apoga et al. (2018) found that the increase in Fintech newcomers in the sector does not have to provoke panic attacks on banks due to the challenges posed by the radical transformation of all their technological infrastructure in order to compete. The perpetual popularity of “us against them” debate does not provide an accurate picture of the relationship between Fintech innovators and banks. Let us make it clear, banks are the cornerstone on which our economies rest, they are the ways in which most Fintech companies operate, and they will not disappear in the near, even distant future.

Ahamed & Mallick (2019) emphasized that creating an essentially different way of seeing and focusing on the sector. Technology startups look at this landscape of financial services and, using the rationality of the internet, see poor customer service as a margin to introduce huge efficiencies. This logic has been applied to other sectors, such as music and telecommunications, which have also been transformed by new technologies and the internet. What a traditional bank can see as a threat in the digital age, its competitors can interpret as an opportunity.

Wu & Duan (2019) stated that many researchers also lists those segments that are still the blue ocean today, including credit ratings, real estate websites, and capital market transactions.

Regulatory environment

Frost et al. (2019) noted that the regulation of the Malaysian fintech industry is mainly related to financing and equity crowdfunding.

Gnan &Masciandaro (2018) found that Bank Negara Malaysia, which is also the country’s central bank, first released the fintech governing sandbox framework in 2016, which aims to create a friendly development setting for fintech and promote the advancement of Malaysia’s financial industry.

Hamza & Jedidia (2020) found that according to a 2016 report by Ernst & Young that explores fintech compliance and the regulatory environment, generally speaking, the role of the regulatory sandbox is to relax or even exempt existing private regulatory entities on a pilot basis.

Phan, Narayan, Rahman & Hutabarat (2019) realized that companies incorporated into the framework which have an advantage when it comes to personal and corporate customers. Of course, not all companies can become pilot units. The conditions to be met include, but are not limited to:

  • There are products, services or solutions that can genuinely be called innovations that can increase the convenience, competence, safety factor and value of services for finance.

Mester (2019) stated that prove that the company has adequately and correctly assessed the effectiveness, functionality, and associated risks of the product, service, or solution

  • Have the resources needed to conduct sandbox testing to mitigate and control the risks and losses associated with the products, services, and solutions provided by the company
  • Have a realistic business plan to commercialize their products, services or solutions in Malaysia after exiting the sandbox framework

Nguyen (2016) found that participating in the regulatory sandbox project can help companies acquire customers who would want to give money to a company that has not been approved or recognized by the regulator?” Adrian Yap, CEO of Money Match, a fintech startup in Malaysia, said in an interview. Money Match was approved by the National Bank of Malaysia in mid-2017 and is one of four companies that have incorporate in the regulatory sandbox framework to date.

Ozili (2018) realized that the fields of remittance and currency exchange have also open. And some big players in the market have also started to look for cooperation with us. It is beneficial to join the sandbox.”

Mavrakana&Psillaki (2019) found that the National Bank of Malaysia has also established a FinTech Empowerment Organization, whose website shows that the organization is “mainly responsible for formulating.They also help improving regulatory strategies to increase the penetration of innovative technologies in Malaysia’s financial services industry.

Nabilou (2019) stated that in 2015, Malaysia issued regulations regulating equity crowd funding activities, becoming the first country in Southeast Asia to promulgate relevant laws. Equity crowd funding refers to private companies selling part of their shares to investors.

Borroni& Rossi (2019) found that according to a 2016 Invest Smart equity crowd funding report (Invest Smart is a project under the Malaysian Securities Commission’s Investor Protection Initiative), new regulations issued in 2015 include:

  • The number of investors investing in a single company must not exceed 5,000 Malaysian ringgits (8381.5 Yuan)
  • Investors enjoy a 6-day cooling-off period during which all investments can be withdraw by investor
  • The total amount of investors participating in equity crowd funding within 12 months must not exceed 50,000 ringgits (83815 Yuan)

Hartmann & Smets (2018) stated that the result is a wave of Fintech companies seeking to optimize particular segments of the financial value chain (be it in international transfers, loans or the payment process) and offering their specialized services to other companies and banks via API. A company that wanted to support musicians could, for example, do it through a technology firm like Kickstarter to provide loans, and another Currency Cloud type to make the payment. The success of these participants is due in part to their ability to focus on a very specific niche in the sector, rather than trying to compete at all levels. Banks, on the other hand, have always tried to take ownership of all aspects of the range of financial services, and this is where they find themselves struggling, as alternative participants offer more sophisticated services to clients within a specific niche.

Hakenes & Schliephake (2019) noted that despite their differences, Both Fintech participants and banks have a lot to gain by participating together. Fintech entities can benefit from the long history of banking operations and the base that banks offer. They are a vital part of the puzzle, as banks provide the financial instruments that Fintech companies offer packaged in different ways, while focusing on one specific use at a time. Banks can simultaneously gain value in new entrants, already either seeking to partner, or acquiring their advanced technology offerings. Using API capabilities provided in this way can help banks expand their services internationally, lower their development costs, and discover new modes of revenue without having to invest and create new structures. Fintech growth and pressure to open up access to financial data has been warned by the entire sector as the government continues to support Fintech entities and the development of the United Kingdom as the most groundbreaking financial hub. Not surprisingly, plans have recently been announced to create a consolidated and open API approach for banks. The government has pledged to launch a call for data on the best way to provide an open standard for APIs in the British banking sector and to ask whether further openness of data in banking could benefit consumers.

Kim, Park & Song (2016) found that the beginning of this process has been to talk about the products offered by banks, the next step is to know what Fintech companies are really interested in: fully opening transaction data from within banks. However, banks continue to be very cautious before giving external participants access to this type of data, and it will take many conversations before such a gesture becomes reality. These may not have been the breakthroughs we were initially hoping for when we started hearing about the open standard, but at least it’s a very good start. We have already seen how taking care of the API economy can endow the sector with a good dose of innovation, and with greater support, it will undoubtedly continue to produce new opportunities for both banks and alternative participants who are coming. The faith that the British government is showing that these effective newcomers will take the sector forward and into the twenty-first century further demonstrates that the alternative participants have done a wonderful job of showing their value to the sector.

Mavrakana&Psillaki (2019) researched that considering Malaysia’s demographic structure-more than half are Muslims, Islamic finance (financial transactions by Islamic regulations) also occupies an essential position in the country, with the considerable growth potential of finance.

Junejo, Shah & Bachani (2019) noted that for the past two years, Malaysia has become the leader in the fintech market, placing itself as the gateway for Chinese technology titans to the global market. Private investments in Malaysia fintech companies got $562 million in 2018, more than twice the investment recorded in 2017 ($246.3 million) and five times more than in 2016 ($ 135.6 million).

Currently, there are about 570 financial technology startups in Malaysia, as well as test settings and numerous industry-focused accelerators. The development of this trade is mostly due to the group of private investors with a position that keenly supports fintech companies. For example, the Malaysian government has established a fund of 500 million Malaysia dollars (about 64 million US dollars) for the development of the financial amenities sector for the next five years. Also, Malaysian authorities actively promote the event of an ecosystem of Fintech companies through the Foundation for Innovation and Technology (ITF).


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Executive Summary

The concept of industry 4.0 is offering a multitude of benefits to the food industry. It is a core concept in the 21st century to know about industrial value creation. The scope is associated with security risks and sustainability solutions, yet the benefits related to the food industry are multiple. Nestle company has similar targets as any other food company has in the context of improving operational capacity and efficiency, quality assurance, and productivity.

This report entails a detailed framework of industry 4.0 and its implementation with a specific context to the food industry, Nestle. The academic research and journal’s information regarding industry 4.0 is presented in this paper to pave the way to discuss Nestle digitalization. The digital solutions in production are carried out in the form of the power of big data, diverse mechanization, and machine learning. This transformation is significant to conduct computerized operations and drive improvement in operational efficiency.


 Chapter 1: Introduction

Nestle is the Swiss multinational company of food and beverages. Being the largest food company in the world, it is ranked number 33 in Forbes Global and 64 in Fortune Global 500 in 2017 as a large public company in terms of revenue and others (Ghazalian, 2012).

The company was established in 1905 by a merger of the Anglo-Swiss entity that was formed by George and Charles in 1866. This company grew enormously after World War I and then World War II. There are many corporate acquisitions after that, for instance, in 1950, Crosse and Blackwell, in 1963 Findus and 2007 Gerber (Vilkhu et al., 2008). The company has faced many criticism and boycotts for many products such as formula milk, use of child labor in the production of cocoa and bottled water promotions. Key competitors of Nestle are Danone, Unilever, Hershey and Mondelez International.  The consumers of Nestle are everyday households, individuals and retailers.  Its market share is 8billion Swiss francs(Rezzonico et al., 2015).

Chapter 2: Literature Review

Industry 4.0 is the Fourth Industrial Revolution. The term industry 4.0 is the smart manufacturing point and refers to the idea that all the manufacturers can connect their operations to plant (Rezzonico et al., 2015). The concept of mass production is linked to the latest technology implementation in bringing smart processes. Due to the use of more connectivity, sensors, analytics, and robotic technology, significant changes are seen in food and Beverage Companies. The investment in technology is carried out to meet customers’ expectations(Putičová, Mezera and Mejstříková, 2012).

Advances in Manufacturing Industry

Industry 4.0 is all about technical advances in the traditional sector. This revolution is about integration and virtualization with the coordination of logistics. The technical processes are significant to tackle any source of error and its elimination. Birkel et al. (2019) discussed the implications of industry 4.0 in food and the transformation of digital integration. The change in the industrial value chain is carried out to bring adaptability, efficiency, and flexibility that help fulfill customer’s needs.

Mauritian concept on Industry 4.0

Mauritius 2020-2024 policy has given attention to industry 4.0, in order to bring an effective platform of latest development(Daureeawoo, 2018). The fourth revolution implementation in Mauritius has a specific emphasis on transformation of small medium enterprises into a modern and developed framework(Maria Ferrari, 2020). The manufacturers face pressure about certain factors such as labeling, microbial impurities, and labeling. The policy in industry 4.0 tends to perform a qualitative leap and brings control of the whole value chain(Scholar, 2019). According to Deloitte University Press, lifecycle manufacturing under new technology is a complete paradigm shift (Putičová, Mezera and Mejstříková, 2012).

Gallmann (2003) mentioned that a crucial shift in industry 4.0 is based on some fundamental principles such as interoperability, real-time analytics, service orientation, virtualization, and scalability.  The interoperability is a crucial element under a cyber-physical system, corporation information system, and robots(levels” & Fakun, 2020). Real-time analytics offer assistance to analyze and collect enormous amounts of data that effectively optimize, control, and monitor processes to facilitate key manufacturing processes. The scalability is an elasticity that helps to adapt to the needs of industry and scale the technical capability of the system due to technical requirements (Ghazalian, 2012).

Effectiveness of Food industry due to 4.0

Hoerlsberger (2019) discussed the significance of beverage companies and highlighted the vast distribution networks about automated data collection. The food companies integrate production equipment for a better quality of production and ensure quality. The technology brings a transformational change in the industry regarding manufacturing. The beverage sector has not yet fully exploited the benefits of technology and industry 4.0. Khramtsov (2018) provided the idea about digitalization in industry 4.0 that can revolutionize the future of the food industry.

Figure 1 Industry 4.0

Luque et al. (2017) explored the effects of industry 4.0 on product provenance. The new formulations are used in the reduction of salt, sugar, and levels of fat. The development of the digital twin approach helps manufacturers to focus on a virtual factory where there is an accurate picture of the new formulation of products according to customer demand. Mauritius 2020-2024policy framework has included integrated automation as a digital process required for the integration of elements that offers a complete production process to improve the level of productivity. The fourth revolution in manufacturing holds a central place for innovation and allows the development of dramatic changes.

Martínez-Olvera and Mora-Vargas, (2019) examined the digital innovation in 21st-century consumer products that motivate customers by providing them a point of sale solution. Birkel et al. (2019) worked on the discussion that industry 4.0 is recalling customer’s demand. This advantage allows manufacturers to turn customers into recurring people who save time and money by focusing on technology. Due to RFID technology, the industry gets involved in a quick response because customers acquire information about a product before shipping. Industry 4.0 is a significant solution to all the existing problems of customers because many websites update information and facilitate customers to get the desired increase in their products, in turn, profits (Khramtsov, 2018).


Some Technologies of Industry 4.0

Internet of Things

Industry 4.0 is commonly known as the internet of things due to its integrated technologies. This integration is related to the industrial value creation in the realm of filly intelligent, digitalized, and decentralized networking.

Figure 2 IoT

The way forward provided by industry 4.0 in manufacturing helps customers to get important information about products. The manufacturers, due to the effect of technology, maintain equipment, and determine how its replacement will occur (Martínez-Olvera and Mora-Vargas, 2019).

Cloud Computing

The cloud computing and its application on the industry have given rise to innovation through connecting manufacturers and customers, raising the volatility of the market, and creating a highly dynamic environment(Abdallah, M. 2019).

Figure 3 Cloud Computing

The policymakers in the industry continue focusing on the sustainability of the market by turning current systems in ecological, economic, and social goods. The system is a triple bottom line of sustainability(Elmroth, Leitner, Schulte & Venugopal, 2019).

Artificial Intelligence

It creates value for the industry and develops technical foundations (O’Shea, O’Callaghan, and Tobin, 2019).

Figure 4 AI

The triple bottom line of sustainability provides the idea of corporate philosophy in which profits are maximized, and awareness about social responsibility is taken into account(Haider, S. F., & Khateeb, A. M. 2018).

3D printing

The technology offers three dimensional view of pictures and structures.

Figure 5 3D Printing

The technology is being used in large manufacturing and printing firms to provide accurate picture and handling of material(Dey, N., & Tamane, S. 2018).

Big data

The big data is all about storing information under three dimensions profit, planet, people, and it is related to economic, environmental, and social elements(Kamenov, 2018).

Figure 6 Big Data

The liquidity and profitability of a company’s data is seen under financial success. The sustainability of the environment undertakes essential technical practices to reproduce goods. The social perspective defines the economic actions of societal social capital (Uthayakumar, et al. 2019).



Chapter 3: Application of Industry 4.0 in Nestle

Nestle has planned to improve its food processing and product development segment with the help of the latest research. This research is attributable to industry 4.0 by envisaging the newest product development. The company is planning to implement cost optimization and labor inputs, in accordance with industry 4.0 in its plants of Germany. The Orange Box Solution is a similar technology being implemented in the plant to meet technical transformation and to make a step forward for the factories. Nestle plant in Schwerin, Germany, is intending to build highly advanced technology to attain the level of standardization. The Nestle production systems focused on efficient plant maintenance systems to acquire a competitive level in a performance that help optimize the value of the industry. The network infrastructure is going to be aligned with market demand so that monitoring and tracking of activities become easy (Amagliani et al., 2017).

Figure 7 Implementation of industry 4.0

Nestle has also implemented automation suppliers regarding technical management. The measures are implemented to enhance the efficiency of the system; for instance, unplanned downtime is reduced by improving the overall efficiency of the equipment. The fully integrated systems with technology are providing business resource management while the company is meeting the security standards of the global level (Birkel et al., 2019). Mapp technology is implemented to allow connection with various standard functions. Mapp mechanism is a smart application to establish a functional block for the company. It offers interactive components for technology that exchange data automatically. The automation effect and integrated line production is significant to understand because software packages under machine technology are coherent as it has opened a new field for the food industry (Gallmann, 2003).

The Mapp technology is further linked to the map view interface, which is managed by automation engineers. The easy to use HMI interfaces are aligned on the networking standards and ensure optimal viewing.

Benefits of Industry 4.0 in Nestle

With the development of integrated machine learning technology, Nestle has improved data transmission and virtual reality systems. The development, verification of performance, a wide variety of food packages systems, and machinery has faced a method of improvement under technology. Nestle has focused on the internal integration of product packaging lines that have improved the machine vision process for the inspection of product packaging and assemblage (Luque et al., 2017).

Nestle’s research and development has improved product technology in areas of competence. The Konolfingen area is a basic example in this context, and it is about nutritional solutions that are documented with consumer benefits(Nalchigar & Fox, 2017). The application of enzyme technology is significant to protect from allergy prophylaxes and promote digestion. Nestle has implemented cutting edge technology for aseptic filling and conservative heat treatment. The notion of process technology is also a significant benefit that is according to hygienic design (O’Shea, O’Callaghan, and Tobin, 2019). The revolutionary interventions have been implemented in Nestle regarding the product dying process and production of the probiotic culture.Menu support and integration are managing requirements of Nestle because the non-specialist staff needs help. Technology through communication fulfills TCP standards in terms of protocols (Khramtsov, 2018). The orange box technology in Nestle was implemented to produce food supplements to meet the nutritional needs of customers. It organizes data for staff to work under a security mechanism. This autonomous solution is helpful for the standard information systems and establishes insight to improve the targets.


No drawback from the cutting edge technology has been seen for the food industry and processed production, instead, this technical framework is appeared significant to ease and facilitate the complex food systems and helped manufacturers to advance their production (Putičová, Mezera and Mejstříková, 2012). Some drawbacks can be related to security, digital waste, and collection of unnecessary data that needs effort by involving the digitization and automation process.


Industry 4.0 is a crucial development idea for Nestle because its processes have scaled up the business process due to state of the art technology programs (Rezzonico et al., 2015). The specialist’s team of research, quality assurance, and production are managing the nutrition level in the factory line (Uthayakumar, et al. 2019).


Szoda’s concepts to Nestle

The case study given by Szoda discusses the significance of industry 4.0 and its implementation in the supply chain process. The application of ideas discussed by a case study on Nestle can be seen from the optimal operation process carried out in food processing. The figure below presents the core operation in Nestle by highlighting planning that relates to suppliers, manufacturers, and goes to distributors.

Figure 8 information flow

The technology in this way has proved to be safer for a factory because the highly developed processes of security and control system are aligned with the state of the art simulation network and working for the efficient operation of complicated food processing programs (Vilkhu et al., 2008).Nestle management can be seen effective with the implementation of stock management and product segment process, as seen from this figure.

Figure 9 segmentation of products

The case study elaborates on product development and design options with relation to industry 4.0 that facilitates the process of information in food processing(Gilchrist, 2020).The advanced technology in the form of increased use of technology for the industry has improved the use of automation. The ease of automotive solutions to manufacturers has provided them an open and better space to work and coordinate.

Chapter 4: Conclusion

Nestle food industry is implementing the core concepts of industry 4.0 as the fourth revolution that can enhance food processing mechanisms. The company has to deal with improved processes of foods, to maintain its nutritional needs. The implementation of advanced technology and digital methods for food and beverages is carried out through storing data, recording information, and integrating human-based problems. Integrating technology is all about making efficient production to fulfill consumer demand. Nestle gathers data about consumer demand and implements IoT concepts to manage smart solutions. Bringing 4.0 industry to the food industry is to enhance food capacity and to solve problems regarding food production and to facilitate production operations.



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Trade war is all about attack of one country over another with the help of quotas and taxes. Donald Trump has reckon trade wars, focusing it as an easy approach, which has shaken the global trade foundations (Rossi, D., Angelini, P., Metra, C., Campardo, G. and Vanalli, G., 2008). President Trump has slapped steep tariffs on goods from EU, Mexico, Canada and China. The tariff on billions of dollars goods coming from abroad is considered an easy approach for Trump, as he imposed 10% levy on £150bn products from China (Loriaux, S., 2018).The$100bn gain from tariff is intended to put in the agricultural sector to buy products, that will in turn sent to deserving countries under humanitarian assistance. Currently, US has a massive trade deficit for China, in 2019, it approached to $43.6 billion to $419.2 billion.

Literature Review

President Trump has obsession with trade deficit, not popular yet and critics mentioning this move of Trump administration as protectionism. US economy mainly gain net income from services.Trade protectionism is a restriction on global products such as tariffs to boost the products of own country by shielding the industry from intense global competition (Rossi, D., Angelini, P., Metra, C., Campardo, G. and Vanalli, G., 2008). For instance, Trump has aluminum and steel tariffs.  In 2018, he announced 10% tariff on aluminum products and 25% on steel imports. According to the administration, the economy of US relies on other countries regarding metals, and in case of a war, the country could not make adequate weapons. US acquires most of its steel and metal products from EU and Canada. Taxing aluminum and steel means US companies will fulfill their demand from local industry. This notion provides that in this way, US aluminum and steel industries will boost up, since less goods will be coming from abroad that will increase revenue for local steel makes and prices increase (Loriaux, S., 2018).

The trade protectionism by Trump administration will not only increase the price of local finished product but also it will be dissatisfaction or consumers.China has retaliated this and taxed US industrial and agricultural productssuch as cotton, pork, steel pipes and cars. It is discussed that these are necessary countermeasuresagainst Trump’s tariffs. Donald Trump says, trade wars are easy and not bad when it is the matter of trade balance. International monetary fund expressed that the situation is scary, as the American trade policy is aligned on economic nationalism (Wu, W.-C., 2018). The extent of productive distribution of assets declined and longer term costs are acquired. This system by and large will in general diminish government assistance, so a checking impact over item assortment is watched.

New York Times reported that protectionist intensions can bring some warnings. The frivolousmanner of US trade is striking and increasing the complexity in the region. Intermediate goods are most significant part of the modern global economy (Rossi, D., Angelini, P., Metra, C., Campardo, G. and Vanalli, G., 2008). A tariff on steel can be helpful for producers but for the larger interest, consumers will hurt and that will impact the automotiveindustry. AFL-CIO is the main union association of US that has more than ten million members, such as steel workers. The body has shown its favor for protectionist policy by Trump. Patil, A., (2017) said that it will be helpful to increase the employment level in industry which would be protected by tariffs, yet it can be harmful for other sectors’ employment. Over the most recent two decades, the pattern about advancement has been expanded, yet money related emergency are intensified. The training details with respect to protectionism is found in type of complexities. US approaches in regards to protectionism is confronting serious outcomes, i.e., with China and different districts.

Tariff can boost the capital intensive sectors and can offer fewer jobs. According to Uygur, E., (2018) the reduction in imports will not increase the jobs but it will provide jobs to that particular country, which is ready to replace imports belong to china, previously. USA is helping out World Trade Organization to focus on trade disputes that has prompted a trade war. Any breach of rules that work on international trade rules is carried out by reprisals from affected countries. The trade protectionism has been causing a divergence of American relations with Canada, European Union and China. German Economic Analysis Institute has discussed that EU has exported €856bn in 2016 and paid 0.7% as tariffs, on average. USA exported €645bn to Europe paying 0.74% tariff. This situation provides that it is not possible to continue business with EU, as according to Donald Trump (Rossi, D., Angelini, P., Metra, C., Campardo, G. and Vanalli, G., 2008).

The trade war can increase the uncertainty of investment and investor’s perception. This impact of tariff can have limited impact, for instance, Citi data discussed if an increase of 25% is implemented on imports of car, the inflation will be 0.1%. This will escalate tensions and the uncertainty factors will also limit the positivity of Stock Exchange. It is also acting as a main volatility factor on stock exchange today in US. The intentions of Trump are departed from the broader US consensus that support open trade policy and it also limit the concept of immigration (Rossi, D., Angelini, P., Metra, C., Campardo, G. and Vanalli, G., 2008). The situation can bring distress of white voter and economic anxiety. The country level electoral data of US highlights that trade protectionism has gained negative views from the global world. The expanded protectionism isn’t huge for the market, since it offers ascend to twists. The since quite a while ago run costs increments because of this training and local enterprises face bail outs. The job of household creation is frustrated because of protectionism, and it has been seen by numerous investigations that in short-run, local creation limits are impeded.

Protectionist policy of US president is apparently a good suit for citizens. Research from University of Geneva presents that this policy of Trump has effects for unemployment and OECD countries’ welfare. Being negative in nature, such policies will also impact employment in US and Mexico. US Trump administration is openly implementing this concept on trade and economists considered it as a stark policy reversal. Unemployment level clearly demonstrates about economic health, so that protectionism can affect the employment rate. The study discussed that North American Free Trade Agreement was conducted by Trump by imposing 20% tariff on bilateral level in Mexico and US. This has reduced the average level of welfare in US by 0.31% and 6.6% in Mexico (Uygur, E., 2018).

The trade protectionism is also expected to increase the rate of unemployment to 48% in Mexico and 2.4% in US. The researchers revealed that this impact on economic policy is significantly related to the automotive industry. If US has increased the tariff on cars against import from other countries, it will decrease long term employment and welfare in all the respective car producing countries. The protectionism do not apparently show negative aspects and a president can only be satisfied from the result, during his power.

Rossi, D., Angelini, P., Metra, C., Campardo, G. and Vanalli, G., (2008) provided that trade protectionism is controversial debate, when viewed in terms of economic welfare. It has numerous economic impacts. Consumer limit their choices but they have to pay more. The quotas restrict the amount of consumption. The choice of consumers, in terms of quantity, quality and product choices decreased. The protectionist policies intend to provide jobs and safeguard industries but they decrease the consumer welfare by providing them less availability of desired goods and services. In addition, consumers set to low or poor quality goods. Patil, A., (2017) illustrated that paying high for limited goods can bring inflation in the economy. The limited choice of consumers will set them for low quality so they will either purchase low quantity or will not purchase at all.

Trade protectionism is also affecting domestic firms, when they have to purchase parts of products but pay tariff, so they pass this additional cost to consumers. Nortasnom, A., (2019) mentioned this provides an increase in global competition by keeping the welfare of consumers low. Another effect of protectionism is declined growth of infant industry because there are many trade protection policies by government. The protection to the infant industry causes cost to government in the form of financial resources. This will promote the inefficiency in infant industry because when no longer incentives are provided to make it intelligence and smart, the industry will not mature (Loriaux, S., 2018). The protectionism will hinder the maturity and decline the capability of infant industry to be competitive in long term.

The trade protectionism causes nation to keep its value of currency low, so the deceased value will cause long term inflation. This issue is related to sell the products at international market in cheap prices. Necessities will be sold in high prices, so the consumers will have a good intention to help industry stay competitive at global level but they have to pay high prices at home. It is also a cause of trade wars among nations. If a country focuses on trade protection, a reciprocal action will be taken by others, for example, in case of US and China. No matter, if both countries are military and political allies, the nation will impose, quotas tariffs and controls over exchange rate. The case of Japan and US shows that they are long term allies but after the World War II, the administrative policies of trade and tariffs are invoked against one another (Jean, S. and Reshef , A., 2017).

According to the economic freedom index of 2008, US is ranked as fifth freest global economy. The index dimension highlights the trade that is free from the interference of government. In that index, US was considered as the leader of free trade. Multilateral trade under thegeneral agreement on tariffs and trade (GATT)was flourished that provided political stability in all partners. The method of trade protectionism came at front after the presidential elections and Trump administration took the charge. The GATT agreement was aligned in effect of trade protectionism to set quota ceiling about foreign products to limit supply and to increase the imported products price. The protectionism was considered to place hurdles for imported products under certain specifications and standards. Currency control was limited to manipulate the exchange rate and to access global currencies, in order to inflate the price of global products while reduce the domestic product’s prices(Jean, S. and Reshef , A., 2017).

Houngbedji, H., (2018) presented the protection policies was intended to maintain or increase the share of market and help domestic industry. Through this concept, counties restrict imports to own market. The protectionism supports argue that free trade is harmful for the local industry andnegatively effects balance of payment. The domestic demands are met by imports, so unemployment level increased andproduction level decreases (Gagnon, F., 2020). The metaphor of trade protectionism is opposite to the liberal trade practice. Free trade policies focus on liberalization practices in less developed countries regarding elimination of imports restriction, smooth functioning, and privatizationof state owned firms and exchange rate deterioration. Basically, protectionism roots are related to mercantilism because there are trends that support this concept.

From the survival of US since 1929 crisis, it has empowered its governmentto reduce the rate of tariffthrough law of bilateral trade. The newly emerged protectionistpoliciessince 1973dominated the scope, in order to protect the infant industry and reduce foreign competition. New protectionism focused on the protection of consumers, the sustainability of environment and public health provision.With the WTO formation, tariff reductions was actualized for the agricultural products. These measures were adopted as invisible measures (Demir, M.A. and Sepli, A., 2017). The supporters of protectionism claim that liberal trade disrupts terms of trade of developing countries. The terms of trade will be negative over time, if demand for exported agricultural goods is less than the industrial goods.

According to the protectionist, the domestic industries preservation against foreign competition is a contribution to protect unemployment. The imports restriction revives domestic product’s demand so it substitutes foreign goods. Increase in demand enhances domestic level of production. It will need more labor to produce, so reduction in unemployment (Daniels, J.P. and Vanhoose, D.D., 2017). The protectionist contend that national economy should be protected from dumping. It is a state of sales under the price of cost. The companies sell productsunder their original value so that they can reach market and compete with rivals. The situation gives rise to unfair competition in the economy and it needs anti-dumping tax to differentiate applied price and fair price.

The NAFTA trade agreement held an objective as a reduction of tariff in the good trade (Dadush , U., 2019). The agreement, for the larger part of the goods decided that final preferential tariff rate will be adequate for the period of ten years. USA levied low rate of tariff on Mexico and Canada at average. WTO member countries and gross household’s wage and income incur losses from non-tariff and tariff barriers. In Canada and Mexico, proportionate decline has been observed by studies. The retaliativemeasures regarding trade policy are seen by WTO members against US. Ciuriak, D., (2019) focused that it is also attributable to the domestic economies and strong dependency ratio on them. The individual countries are able to decline their loss due to some measures related to increase in tariff, however the single country cannot be able to compensate the incurred real income wages of household. The exchange protectionism by Trump organization won’t just increment the cost of neighborhood completed item yet additionally it will be disappointment or buyers. China has fought back this and saddled US modern and horticultural items, for example, cotton, pork, steel funnels and vehicles. It is talked about that these are vital countermeasures against Trump’s taxes.

The US protectionist trade policies are not significant for US to get benefit or to provide benefit to the rest of world. The consequences about NAFTA withdrawal is carried out by different members, such as US, Mexico and Canada. Bakhshi, S. and Kerr, W.A., (2008) argued that this has a significant impact on macro-economic variables because US protectionist policies are not in the favor of WTO because they come in combination with the retaliative response. The trend of protection has a moderate impact on the flow of trade so counties are restoring the measures related to protectionism. In the last two decades, the trend about liberalization has been increased, yet financial crisis are worsened. The practice technicalities regarding protectionism is seen in form of complexities. US policies regarding protectionism is facing severe consequences, i.e., with China and other counties. The exchange protectionism makes country keep its estimation of cash low, so the expired worth will cause long haul expansion. This issue is identified with sell the items at universal market in modest costs. Necessities will be sold in significant expenses, so the purchasers will have an honest goal to assist industry with remaining serious at worldwide level however they need to address significant expenses at home. It is additionally a reason for exchange wars among countries.

Chatterjee, D.K., (2011) discussed the increased protectionism is not significant for the market, since it gives rise to distortions. The long run costs increases due to this practice and domestic industries face bail outs. The role of domestic production is hindered due to protectionism, and it has been witnessed by many studies that in short-run, domestic production capacities are obstructed. The scope of efficient allocation of resources declined and longer term costs are incurred. This framework overall tends to reduce welfare, so a curbing effect over product variety is observed.The aims of Trump are left from the more extensive US accord that help open exchange arrangement and it likewise limit the idea of migration. The circumstance can bring pain of white voter and financial uneasiness. The nation level discretionary information of US features that exchange protectionism has increased negative perspectives from the worldwide world.


The discussion about the effect of protectionism related to trade by Trump administration revealed the reduced level of welfare for domestic industry. It is also argued by differentscholars that impact of these policies for international trade is hurtful. The effect of trade related agreements is significant to consider in this situation, however the impact is without bilateral trade. The overall discussion has concluded that impact of trade protectionism is significant on liberalization practices, so trade policy worse off infant industry, increases level of prices, thereby reduces welfare of domestic production. The risk of protectionism in near future can also bring distortion in trade related practices. The impact of increase in trade protectionism canbe negative for competition at global level. This indicates that countries will lose the benefits from trade and any related initiatives. The expected loss for implementing countries would be larger, if viewed in terms of specialized sectors. The different simulation model can be assessed in caseof multi country vision. US isimplementing such practices and lowering the overall welfare of domestic economy as well as consumers. This risk is associated with the financial crisis and a sluggish global recovery cannot be neglected.


Bakhshi, S. and Kerr, W.A., 2008. Incorporating labour standards in trade agreements: protectionist ploy or legitimate trade policy issue? International Journal of Trade and Global Markets, 1(4), p.373.

Chatterjee, D.K., 2011. Protectionist Policies. Encyclopedia of Global Justice, pp.912–912.

Ciuriak, D., 2019. How U.S. Trade Policy Has Changed Under President Donald Trump – Perceptions From Canada. SSRN Electronic Journal.

Dadush , U., 2019. Washington Slept Here: How Trump Caught Politicians Napping on Trade. Trade and American Leadership, pp.142–166.

Daniels, J.P. and Vanhoose, D.D., 2017. Regulating international trade—trade policies and their effects. Global Economic Issues and Policies, pp.101–137.

Demir, M.A. and Sepli, A., 2017. The Effects Of Protectionist Policies On International Trade. PEOPLE: International Journal of Social Sciences, 3(2), pp.136–158.

Gagnon, F., 2020. Breakpoint in Time: Donald Trump’s Trade Policy Toward Canada. Alliances and Power Politics in the Trump Era, pp.239–254.

Houngbedji, H., 2018. Protectionist Trade Policies and Agricultural Productivity in WAEMU Countries. Review of Economics and Development Studies, 4(1), pp.1–9.

Jean, S. and Reshef , A., 2017. US protectionism would raise trade costs worldwide. Emerald Expert Briefings.

Loriaux, S., 2018. Fairness in Trade and Protectionist Policies: some Reflections. ArchivfuerRechts- und Sozialphilosphie, 104(3), pp.346–361.

Nortasnom, A., 2019. Power and Wealth in the Trump Administration and Beyond. Trade and American Leadership, pp.425–446.

Patil, A., 2017. Reviving Indian IT Sector Amid Trumps Protectionist Policies. SSRN Electronic Journal.

Rossi, D., Angelini, P., Metra, C., Campardo, G. and Vanalli, G., 2008. Risks for Signal Integrity in System in Package and Possible Remedies. 2008 13th European Test Symposium.

Uygur, E., 2018. Uncertainties, Protectionism and Slowdown in Global Trade. International Conference on Eurasian Economies 2018.

Wu, W.-C., 2018. Rethinking coalition size and trade policies in authoritarian regimes. Party Politics, p.135406881775251.





The millennial generation in the world is growing, so there values, demographic needs, and habits. The changes in their preferences are sparking, particularly in the hospitality industry (Aleks, R. and Saksida, T., 2019). The specific generation is born between 1980 and 2000, the early 1980s or early 2000s generation is a rapidly growing population and engaging world business. This new wave of travelers has spread significant influence over the hospitality industry. The youngest generation wants to explore new avenues, explore new experiences, and want to interact with different destinations (Carpenter, M.J. and Charon, L.C.D., 2014). Designers and architects have used this opportunity to create design elements and offer space to incorporate valuable preferences of the millennial generation.  Industry sources have discussed that millennial travelers contribute to more than 50% of all the guests of the hotel in 2020 (Chen, P.J. and Choi, Y., 2008). This critical reflection intends to address the significance of catering to millennials regarding the hospitality industry. It will explore its impact, stakeholders, and cultural factors with related evidence.

Literature Review

Collective consciousness has proposed the impact of baby boomers as a new force, while copious millennials are found to be more vital labor force than any other generation. The significantly different values, lifestyles, and beliefs from baby boomers generation have made millennials to dominate the hospitality industry (Dev, C.S., 2012). According to Talent’s development at Stamford, Erin Haid discussed that “millennials want companies to work according to their values and get connected to their preferences. They need better opportunities to grow and a clear path to accepting challenges”. Another evidence about millennials’ effect on the hospitality industry is described by Mike Oshins, the professor of Hospitality Administration Boston, “millennials like transparency and they need to work on a broader level in the hotel industry, reflecting different values like self-help, etc.

The impact of millennials on the hospitality industry, in general, can be seen from different perspectives, such as their way of work and understanding. They look for challenging and exciting work, and their role in the hospitality industry is different than previous generations. Guelph funded study at Dalhousie University proposed a comparative study to find out the work values in X and Y Generation. The study found that the oldest millennials, on average, had seven jobs till their 30s as compared to baby boomers and X generations. The study identified different novelty for millennials and their role in hospitality. The generation appeared to be tech-savvy but committed to work (He, J., Morrison, A.M. and Zhang, H., 2019). The roles of millennials in the hospitality industry have proven their flexibility for different purposes, expertise in locations, and priorities. Their impact on catering is witnessed from their flexible schedules and accommodation of personal needs. The effect of millennials on hospitality can be seen from their passion for working; for instance, they are more likely to leave if they think they cannot develop at a specific place and vice versa.

The impact of millennials on sustainable companies is due to the community growth they are seeking. The accomplishment of standard job duties and spirit of work is developing as culture becomes enriched. The Star Wood management program evaluated the role and performance of the millennial regarding the hotel industry. In hospitality organizations, millennials’ expectations represent their decisions about hospitality technology. Brands are engaged in targeting millennials in every segment of life because their preferences drive leading brands to get the benefit of technology (Kim, D.-Y. and Park, S., 2019). Through new processes, new technologies, the scope of management will increase, and new engagement ways will develop, according to a study.  The hospitality industry is specific to discuss millennial consumer expectations because they appear best guests to guide hotels.

According to the US Census Bureau, millennials are the largest growing demographic segment is millennials. The reason behind this is the immigration surge in the US from abroad. Another reason is the decline in the baby boomer generation when they reach their golden age. Pew Research Center has presented that a high number of millennials in 2030 will be 8.11 million. In the hospitality industry, this reason will increase investment due to their value as consumers (Kostuch Media Ltd. and Kostuch Media Ltd., 2015). They are future and perceived as a vital changing force for the coming times since they possess a great experience to think like a guest and use technology. The distinct culture millennials are come up with aligns consumers’ expectations (Kostuch Media Ltd. and Kostuch Media Ltd 2015).

The hospitality business significantly considers the changed scenario to cater to this tech-savvy generation. The five-star hotel industries are rethinking their stuff according to the millennial’s demand. The hotel and travel industry is lucrative and hugely attractive. Global millennials are two billion, and from Asia, 60% of them belong, and in India, only 400 million reside (Mejia, C. and Lavendol, V., 2015).  They are strong enough and the highest spending power, so big corporate travels. The director of Deloitte’s travel hospitality discussed that the impact of millennials on hospitality is significant since they focus more on experience and genuinely care for the shared values.

Kim, D.-Y. And Park, S (2019) discussed the effect of millennials in the hospitality industry regarding stakeholders and organizations. The well being and employee performance in the hospitality industry is analyzed in this study that how central workforce and its attitude is drawing attention in research. The study examined prior literature regarding human resource practices and its influence on millennials that is influencing behavior in the workforce.  Responsible leadership contributes to a productive workforce, and employees can make a difference in the hospitality industry. The qualitative study proved that the practical value of hotels is due to millennials and their wellbeing fosters to develop a responsible leadership.

Sofronov, B (2018) proposed a study to identify change due to millennials in the tourism industry and the significance they made. The study undertook a broader picture of social media and technology-based framework as well as internet access. Millennials are affecting buying elements due to their informed approach to decision making and the whole influence of technology. The perceived authenticity was discussed by the author that symbolizes millennials significant and different from other demographics. Millennials are found to be more interested in the hospitality and travel industry due to sustainability and a sense of fulfillment that the hotel industry understands.

He, J., Morrison, A.M., and Zhang, H (2019) analyzed the impact of millennials on tourism and hospitality industries. The focus of this study was to highlight the significance of the latest trends and differentiated buying preferences of the millennial generation. The research surveyed different employees of the hospitality industry to know about the wellbeing millennials get when they receive favorable behavior. The assessment of employees’ experience through their perception has provided a clear insight for their commitment to work. The characterization of employees’ assessment was positively related to work experience and interest in the hospitality industry.

Warda, S.Y (2019) discussed the tourist behavior under the shift of a generation. The study facilitated the latest accommodation and anticipation trends in the hospitality industry. Due to the unique, influential segment of tourism, the millennial generation is in the spotlight due to their preferences. The impact of millennial behavior on social media and travel choices has also significantly impacted stakeholders and related organizations. The study investigated past literature and conducted a survey for Emirati travelers to know their travel patterns. This research has provided useful insights about valuable preferences of millennials¸ their influential activities, destinations, and leisure time. The scope of this influence is exemplary for the hospitality industry since it develops suggestions for future businesses.

Kostuch Media Ltd (2015) developed a discussion about the impact of millennials on the hotel industry and the values. The research focused on critical values millennials possess and their behavioral perspective, which is a differentiated factor.   Hotels are a vital body that targets this particular group specifically, to know their interests and values and offer predictable products. The experiential part in this regard is to focus on the critical behavioral aspects which are seen from self-help, challenging nature, and sustainability factors of millennials. The hospitality business for millennials is valuable and attractive because they are well versed in branding.

Different contextual factors influence the hospitality industry when talking about millennial impact. The youngest travelers today seek the opportunity to interact with others and explore a different destination. The contextual factors in terms of high five star hotels and design elements can be discussed concerning millennials. The property and geography location is a valuable factor that targets millennials, for example, Pasito Blanco Resort is engaging differential design patterns to get involve the traditional design looks to target guests with the feeling of early Spanish villages (Mejia, C. and Lavendol, V., 2015). Different shared areas involve diverse experiences for travel generation. The traditional lobby, hotel design, and communal spaces are key factors that engage millennials in various design elements.

The emphasis on wellness is another factor, millennials focus. For instance, in some studies, the significance of exercise for health is found as valued by millennials, so hotels put more emphasis on such programs and offer facilities to attract this health-conscious generation. Hotel designers undertake the scope of work and accommodation to millennials with a specific focus on millennials. The hiking trails, biking, and yoga pavilions are developed in hotels to target this generation. For example, Antigua Carlisle Bay is introduced for guests with a unique mind and a passion for excursion (Verity, C., 2016). The millennials are mainly catered to rethink traditional procedures because they can likely be pay off by focusing on their demographics. The hotel industry primarily caters to millennials by keeping in mind their preferences and presuming as a forward-thinking generation.

Millennials prioritize their experience over products, and this notion mainly works in five-star hotels. The demand and emphasis on offering unique products to valuable customers is also a big challenge for marketers because, due to transitioning social media, preferences change most often. The buying of a product is not simple, but it is aligned with the elements and contextual factors that motivate millennials to purchase. The hoteliers are shifting their approach of marketing to align with that of millennials’ perception. Earlier, customers were satisfied with the standard services, but now hoteliers have to undertake an extra mile to satisfy the new generation and provide an outstanding intangible experience.

The attractive point for millennials is justified when they are offered with an exceptional experience, not only the functionality of the product. The cutting edge technology today is a necessary value for money, not only an option (Warda, S.Y., 2019). The contextual factors today are mostly being appeared in the form of the latest technology, for instance, virtual reality, a personalized approach, and a digital concierge. The virtual reality in the hospitality industry is all about investing in technology by hotels to allure guests. These devices are equipped with the latest travel guides and postcards, thus offering guests a firsthand experience of their travel. The hotel industry tends to increase this experience, thereby creates a sound environment for millennials.

The value of a personalized approach is significant when viewed in terms of imperative factors. In the hospitality industry, the innovative way is used to customize products and services, so guests’ data is used. The usage of millennials’ data offers valuable insight to get them back and understand the routine behavior that would, in turn, be helpful to take a personalized approach.  Millennials also believe in technology more than any other generation, so a sharp rise in communication applications is seen. Hoteliers also take this opportunity to develop a primary source of communication; for example, IHG and Hyatt hotels employ third party channels for communication to provide specialized experience to guests.

Many contextual and cultural factors are on their way to impact the hotel industry under the particular influence of millennials. They also focus on aesthetic preferences and thoughts more than any other generation. In North America and Western countries, millennials are culturally diverse larger than in any other country. In the US, 42.8% of millennials are in minorities and speak more than one language. Only 24.6% speak English at home. This evidence suggests that millennials are sensitive to culture and languages more than generation X and baby boomers.  It also necessitates the influence of multiculturalism. Due to diverse backgrounds and language, their interest in experience is more significant than any other generation in the hospitality industry.

Pew Research Center described millennials as a generation that accounts for 2 billion people, and it is the most diverse generation in the US. These consumers are also the significant generational cohort showing economic growth, employees’ sourcing.  Chen, P.J., and Choi, Y (2008) discussed the work values of millennials in a study. The focus of the research was generational differences in relation to the hospitality industry. The study explored how different generations perceive benefits in hospitality work management. The survey was used to investigate hospitality organizations in the US. The work values defined by millennials were personal growth, security, and comfort, and work environment.  It was inferred that work value structure in the hospitality workforce is based on cultural factors that are persistent in millennials. The study was limited to US tourism destinations, and the managerial staff was investigated.

Aleks, R. and Saksida, T (2019) illustrated that the millennial generation is valuable in terms of their perception and viewpoints regarding business. The study discussed that millennials prefer their travel experiences, yet they are diverse in the case of culture. The selection of knowledge is deeply linked to the personal approach, and they develop a particular identity for them. Authors discussed the way of living, incorporating digital technology in daily life, and the ability to enhance life’s value. The notion of culture and its impact on millennials can be seen in education. Valuable experience and thinking style helps drive different perceptions and diversity.

Carpenter, M.J., and Charon, L.C.D (2014) mentioned the role of millennials in the hospitality industry. The study found out differences in thinking and adopting culture. In Brazil, 99% of millennials tend to use their smartphones in the restaurants, but a fifth of Japanese millennials are not involved in this activity.  In a report by Oracle, hospitality was discussed with a broader point of view for millennials. Their impact on the hotel industry was analyzed by their focus on technology and its use in hotel premises. It was found out that millennials willingly use mobile phones in restaurants, while only 6% reported that they do not use these digital devices in hotels. Mexicans and Brazilian millennials always keep their phones, and many of them use phones to interact with other hotels.

Taking into account the cultural factors, millennials focus on engaging with the latest brands and value the marketing approach. This structural significance provides the idea of value to traditions and culture. They also focus on creativity, knowledge, identity, and creativity (Mejia, C. and Lavendol, V., 2015).  This style of work and understanding engages more people and demonstrate the value of the hotel given guests. The method of understanding and reflecting identity is seen in the hospitality sector; therefore, it generates personal viewpoints about culture.

Conclusions & Recommendations

Millennials are operating n a modern digital environment, and it is safe to say that social media and technology are present in their DNA. The digital transparent world is getting engaged in the brand value with a broader sense of the hospitality industry. The high technology modern advertisement practices are significant in building brand value and generate bottom-up or top-down approaches. This massive information group of the consumer is transforming the whole framework that has provided a larger scope to marketers. In particular, in the case of the hospitality industry, the need to target millennials is catered due to their success in the hospitality and travel sector. The focus of the brand portfolio and need is tailored to the millennial’s demand, not their ancestors. This shift of thinking has provided a valuable approach to target millennials, in the specific context of the hospitality industry, due to the key features, they possess.

It is recommended that due to the intensive significance of millennials in the hospitality industry, they should be targeted with their preference. Since they grew up witnessing the global financial crisis, it will empower their thoughts, rights, and opinions.  The generation has a significant drive for innovation, and being appreciative and loyal; it can be productive for the hospitality industry when targeted accurately.

The hospitality industry can make adequate consideration of millennials by engaging them in management and valuing their perspectives. It is recommended that they should have a significant opportunity for career progression (Mejia, C. and Lavendol, V., 2015). They should be offered development and training opportunities.

The millennial generation is also more diverse ethically than any other generation so they can contribute well in economic growth. They should be valued in terms of identifying key focused areas. Advertisement can also effectively target them by knowing their interests and incorporating changes they want in the hospitality industry (Kim, D.-Y. and Park, S., 2019).

The food industry has a significant impact on millennials and the other way round due to the emergence of the culture of food. This influence has changed the traditional methods of food and hotel management because today, a more attractive approach is used to target customers. The emerging trends due to the latest technology have customized food patterns and beverages, such as black ice cream or rainbow food. The foodservice companies are significantly targeting millennial generation, so they offer a massive scope to the hospitality industry. Restaurants and hotels can provide brand experience enhancement programs to cater to more millennials. They love and discover new experiences, and this aspect can be captured by offering them a flexible approach and customized options. Unique and authentic quality brands can approach millennials. They cannot be segmented towards brands because they seek out unique experiences and have a massive quest to personalize. The reflection has provided me an insight to understand and map the preferences of millennials. This approach is significant for me to learn the behavior of the hospitality industry in segmenting a demographic on its interest basis.





Aleks, R. and Saksida, T., 2019. Hero or Villain? How Millennials’ Attitudes towards Unions Compare to Those of Previous Generations. Academy of Management Proceedings, 2019(1), p.15933.

Carpenter, M.J. and Charon, L.C.D., 2014. Mitigating Multigenerational Conflict and Attracting, Motivating, and Retaining Millennial Employees by Changing the Organizational Culture: A Theoretical Model. Journal of Psychological Issues in Organizational Culture, 5(3), pp.68–84.

Chen, P.J. and Choi, Y., 2008. Generational differences in work values: a study of hospitality management. International Journal of Contemporary Hospitality Management, 20(6), pp.595–615.

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Kim, D.-Y. and Park, S., 2019. Rethinking millennials: how are they shaping the tourism industry? Asia Pacific Journal of Tourism Research, 25(1), pp.1–2.

Kostuch Media Ltd. and Kostuch Media Ltd., 2015. Catering to Millennials in the Hotel Industry. [online] Hotelier Magazine. Available at: <> [Accessed 1 Feb. 2020].

Mejia, C. and Lavendol, V., 2015. Who’s the Boss?:Millennials Managing Across Generations in the Hospitality Industry.

Sofronov, B., 2018. Millennials: A New Trend For The Tourism Industry. Annals of SpiruHaret University. Economic Series, 18(3), pp.109–122.

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Warda, S.Y., 2019. Emirati Millennials: A Catalyst for Innovation in the Tourism Industry. Transnational Marketing Journal, 7(2), pp.131–160.



Literature review

Police brutality has a history of being recurrent in many parts of the world but it is sad and ironic that United States may be one of its severe examples. Its causes, consequences and policy implications have been elaborated in this section. Various scholars have done the same.

Police brutality

Police brutality is the abuse of authority and infliction of uncalled for force upon civilians, practiced by the police. It is intentional and meant to hurt the civilians. In the United States, police brutality is becoming increasingly common. It is often confused with police discretion, which is the ability of police to exercise control in light of the law over citizens who are not abiding it. Police brutality is a severe issue whose many experts of law and criminology have studied implications and causes.

Police brutality in the United States

There is a long history of police brutality in the United States. There have been many protests and demonstrations from the civilians. Complaints have been filed to the authorities to look in to police departments but to not much avail. The book by Jill Nelson called Police Brutality: An Anthology records different events in America from the 1980s and 1990s. Jill mentions how 2,234 complaints were filed against police brutality at the hands of New York Police Department NYPD in 1999 alone. A federal investigation was in order (Nelson, 2001). This is one example out of many others that have been recorded and many that haven’t been.

Communities being affected

Police brutality is especially prominent for the black community in America. Jill Nelson talks about how the image “Black male predator” is so commonly accepted that police brutality and violence against black men is seen as a normal thing in the American society (Nelson, 2001). Katie Nodjimbadem in her article mentions how just in 2016 233 African-Americans were shot and killed by the police (Nodjimbadem, 2017). She has also recorded how they are the 24 percent of American population that are fatally shot dead by the police. Scholars Alang, McAlpine, McCreedy and Hardeman talk about the predominant white supremacy that plays a significant role in racial discrimination when it comes to treatment from the police. While whites often receive protection from the police even at times when they are in the wrong, blacks face a lot severer police brutality. This racial discrimination is present throughout the US law enforcement system (Alang, McAlpine, McCreedy, Hardeman, 2017).These scholars also discuss the negative impact on public health which is brought on by police brutality. Mortality rate increases for the black community, psychological and mental health issues increase in the younger generation especially, stress and anxiety increase with financial, legal and medical issues (Alang, McAlpine, McCreedy, Hardeman, 2017).

Causes of Police Brutality

There are many factors that encourage police brutality in the United States. These factors have been studied by many experts and scholars. Misconduct is very common in police discretion in America. Hagan, John, and Ruth D. Peterson in their book called “Criminal Justice Theory: Explaining the Nature and Behaviour of Criminal Justice” have tried to categorize the behaviour of police in different scientific concepts that are social, political and psychological, organisational and others (Hagan, John, Ruth D. Peterson, 1995). All of these play an important role in the existence of police brutality. Newman and Obasogie in their research paper also talk about police brutality, its causes and how it’s a deterrent of public health. According to the authors, force polices practiced by the police make them the choose the wrong course of action when dealing with possible offenders of law. these policies favour violence over safety of life which is why the polices need to be revised (Newman, Obasogie, 2017). Other reasons may include: Superior police officers expect the inferior ones to follow them and also to maintain a sort of unity amongst each other so that no scandals go out there. The concept of power is also quite blinding for many police officers who feel invincible in front of innocent civilians and exercise force that was completely unnecessary. In the America of today, police officers don’t have cameras or audio recorders in the cars. So the police department can’t keep an eye on them, and they proceed with unjust police brutality.

Policy Implications

It is imperial that measures are taken to stop police brutality in America. However, this is a very difficult task to achieve especially in a short time. There needs to be investigation in police departments to observe how the people are being treated. Federal policies regarding police should be revised and more strictly implemented. However, it is also very important that the societal mindset also change regarding the black community. According to Victor, Richard and Geoffrey in their paper mention that police brutality is never going to end if the racial mindset isn’t abolished (Victor, Richard, Geoffrey, 1998). They also believe that the police should be given proper training on how to behave with civilians. They should know where to draw the line (Victor, Richard, Geoffrey, 1998).

One could say that there needs to be policing of the police in the United States in order to reduce instances of brutality and to follow proper course of action regarding police discretion.


Obasogie, O. K., & Newman, Z. (2017). Police violence, use of force policies, and public health. American journal of law & medicine43(2-3), 279-295.

Alang, S., McAlpine, D., McCreedy, E., &Hardeman, R. (2017). Police brutality and black health: setting the agenda for public health scholars. American journal of public health107(5), 662-665.

Hutto, J. W., & Green, R. D. (2016). Social movements against racist police brutality and Department of Justice Intervention in Prince George’s County, Maryland. Journal of Urban Health93(1), 89-121.

Geller, W. A., &Toch, H. (Eds.). (1959). Police violence: Understanding and controlling police abuse of force. Yale University Press.

Skolnick, J. H., & Fyfe, J. J. (1993). Above the Law: Police and the excessive use of force (pp. 198-205). New York: Free Press.

Kappeler, V. E., Sluder, R. D., & Alpert, G. P. (1998). Forces of deviance: Understanding the dark side of policing (Vol. 2). Prospect Heights, IL: Waveland Press.

Maguire, E. R., &Duffee, D. E. (Eds.). (2015). Criminal justice theory: Explaining the nature and behavior of criminal justice. Routledge.

Nelson, J. (Ed.). (2001). Police brutality: An anthology. WW Norton & Company.

Nodjimbadem, K. (2017). The Long, Painful History of Police Brutality in the US. Smithsonian. July27

Crime Theories


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