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Fair Trade Is The Business Model Changing Commerce Essay

The construct of Fair Trade was born after the Second World War in Western Europe when charities started to purchase handicrafts from Eastern European manufacturers in order to back up their economic recovery ( Nicholls and Opal, 2004 ) . Now, “ Fair Trade is a trading partnership, based on duologue, transparence and regard, that seeks greater equity in international trade. It contributes to sustainable development by offering better trading conditions to, and procuring the rights of, marginalized manufacturers and workers – particularly in the South ” ( EFTA – Fair Trade definition, 2008 ) . The Fair trade Foundation is the independent non-profit administration that licenses usage of the FAIRTRADE grade on merchandises in the UK. The Foundation was established in 1992 and since so it has continuously grown ( FAIRTRADE History, 2008 ) . Nowadays, the gross revenues value of Fair Trade market merchandises have an estimated retail value of ?493 million, increasing from the 2006 figure of ?290 million. This means a 127 % addition by volume and 72 % by estimated retail value ( Fact and figures on FAIRTRADE, 2008 ) . This immense rise is due to different influences such as political, academic, cultural and informational within the market. Harmonizing to Strong ( 1997 ) , the chief facet for this development has been the growing of ethical consumerism over the last 30 old ages. Furthermore, as argued by Nicholls and Opal ( 2004 ) , Fair Trade addresses its aims through a market-driven commercial theoretical account that could drive a alteration in its commercial supply in order to run into the turning demand over the last old ages. Understanding and explicating it is cardinal for this research because it permits understanding of how Fair Trade has changed the market but besides, if

and how the market has changed Fair Trade.

FAIR TRADE – IS THE BUSINESS MODEL CHANGING?

In the recent yesteryear, many surveies have been conducted about Fair Trade and how it is

assisting manufacturers in developing states. This research has a different purpose, seeking to understand if these developments are altering the concern theoretical account adopted by Fair Trade.

Furthermore, during the past semester, my involvements have developed in seeking to determine how a company can present its merchandises into a new market, the schemes behind the growing of a house and how an administration can pull off the distribution and supply channels in order to success.

AIMS AND OBJECTIVES

The purpose of this research is to analyze the concern theoretical account of the Fair Trade Organisation and its development in the last old ages, analyzing the schemes and the policies adopted by the foundation in order to accomplish its gross revenues and grosss. Furthermore, the survey intends to look at the hereafter proposing developments for the following old ages.

The aims are:

– to look into the function of Fair Trade administrations in the market place ;

– to analyze the development of the distribution policy of the foundation ;

– to analyze the selling schemes adopted by the administrations ;

-to measure how Fair Trade merchandises are framed and marketed to pull consumers ;

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FAIR TRADE – IS THE BUSINESS MODEL CHANGING?

– to measure the impact of ethical ingestion on the concern theoretical account of the Fair Trade

Foundation.

REVIEW OF KEY LITERATURE

The research is based on the analysis of the FAIR TRADE foundation, its policies, schemes and the possible alteration in the concern theoretical account due its recent dramatic growing.

In order to analyze and analyze the constructs behind Fair Trade, a scope of books are helpful. In peculiar, the 1s by Nicholls and Opal ( 2004 ) , Stiglitz and Charlton ( 2005 ) , Litvinoff and Madeley ( 2007 ) and Ransom ( 2004 ) supply a good apprehension and different points of positions about the state of affairs, what and how it is go oning and what is traveling to go on in the hereafter. In add-on, a cardinal beginning of information is the Fair Trade Foundation web site and the EFTA ( European Fair Trade Association ) web site which publish informations and figures about the administration and official documents that inform the research. Furthermore, many articles and documents have been written about this subject, making a base from whichto understand the just trade market, peculiarly the Fair Trade foundation.

In the literature about Fair Trade it is possible to gestate two different visions of it ( Renard, 2003 ; Moore, 2005 ; Goodman & A ; Goodman, 2001 ) . The first sees Fair Trade as a manner to better the criterion of life of some manufacturers in the development states through just trade dealingss while, the 2nd, sees Fair Trade as a tool to alter the current economic theoretical account, seeking to modify the whole economic system from a free trade into a Fair

Trade. Furthermore, Taylor ( 2005 ) argues that Fair Trade promotes societal alteration while

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FAIR TRADE – IS THE BUSINESS MODEL CHANGING?

Brown ( 1993 ) suggests that it operates “ in and against ” the same planetary capitalist market

that it wants to alter.

The purpose of this research is non merely to critically analyze the administration but, besides, to understand its selling schemes and the grounds behind the determined policies. Furthermore, the importance of the affair has been highlighted by Nicholls ( 2004 ) when he argues that Fair Trade addresses its aims through a market-driven commercial theoretical account. Noting on the indispensable nature of marketing analysis on this subject, the books written by Kotler and Keller ( 2006 ) and Doole and Lowe ( 2004 ) go really of import because they allow us to understand the schemes, the service direction and besides the monetary value scheme adopted by the administration. Furthermore, in these books it is besides possible to grok the basic function of client satisfaction, client value and trueness in the success of each company.

In decision, the country of survey is good covered by an ample literature on the capable affair. This helps in understanding the subject, in deriving a widerr position and a deeper comprehension about the schemes adopted by the administration in its recent history.

RESEARCH DESIGN

For every research undertaking, the methods adopted influence the dependability of the consequences achieved. For this ground, it is of import, if non cardinal, to take methods that suit the subject under probe. Analyzing the Fair Trade Organisation and its development

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FAIR TRADE – IS THE BUSINESS MODEL CHANGING?

agencies following an explanatory attack in order to supply penetrations and understanding

into a peculiar country of concern ( Farquharson and Kilgore, 2007 ) . The research is based on a individual administration and, the most common attack of this sort of analysis is a instance survey. Yin ( 1994 ) defines the instance survey as an empirical enquiry that investigates a current phenomenon within its real-life context while, harmonizing to Stake ( 1995 ) , a instance survey is concerned with the complexness and the peculiar nature of the instance in inquiry. It is usually focused on a peculiar administration, measuring its development, civilization and interaction with the external participants.

The instance survey is normally adopted with a qualitative attack, which relies on the accounts refering the concern issues. Farquharson and Kilgore ( 2007 ) province that if a instance survey adopts qualitative methods, so the research should take an inductive attack. On the other manus, Snow and Anderson ( cited in Feagin, Orum, & A ; Sjoberg ( 1991 ) ) argue that triangulation can happen with informations, research workers, theories, and even methodological analysiss. Yin ( 1994 ) asserts that triangulation can be needed in order to corroborate the cogency of the procedures and, in instance surveies, this could be done by utilizing multiple beginnings of informations. Harmonizing to Stake ( 1995 ) , triangulations are defined as processs that are used to guarantee alternate accounts.

The legitimacy of the undertaking is due to the capacity of the research to accomplish both internal and external cogency. For the instance survey, this methodological analysis shows a high internal cogency but the external cogency could be considered restricted.

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FAIR TRADE – IS THE BUSINESS MODEL CHANGING?

As antecedently mentioned, this instance survey will see the Fair Trade administration and its

concern theoretical account. In order to make this, it is necessary besides to analyze the clients, how they feel about the merchandises and why they buy Fair Trade goods. Therefore, the research should besides grok a quantitative attack by utilizing some questionnaires that will supply the apprehension of clients ‘ feelings and behaviors.

Therefore, in footings of its aims, this research will follow a multi-method attack with both qualitative and quantitative methods. Consequently, it will seek to work the advantages of each method and restrict the disadvantages. Qualitative attacks frequently provide more depth into concern research but it may hold some restrictions about the external environment. On the other manus, quantitative surveies are much more nonsubjective but they tend to analyze the behavior instead than the significances ( Farquharson and Kilgore, 2007 ) .

Data Collection methods

In 2007, a TNS public study commissioned by the Fair Trade Foundation revealed that, in

the UK, consciousness of the FAIRTRADE Mark has risen to 57 % of the grownup population. It is non possible to analyze the whole population that uses these goods but, a simple random sample could be representative analyzing all the different sorts of clients. Furthermore, questionnaires are valuable tools for deriving quantitative information from the sample ( McMillan and Weyers, 2007 ) dependant on how big the sample is. Harmonizing to Robson

( 2007 ) , the most appropriate method for primary research is the questionnaire. In this

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FAIR TRADE – IS THE BUSINESS MODEL CHANGING?

instance, the tool could use multiple-choice inquiries, multiple response inquiries and besides

Likert-scale questions1 ( McMillan and Weyers, 2007 ) .

In add-on to the primary research, secondary informations can be used from old surveies about the subject and besides in the signifier of studies published from the foundation. Secondary research can show some jobs because, as argued by Farquharson and Kilgore, could hold been collected for other intents and this can bring forth differences of reading.

Ethical Issues

The word “ moralss ” in the research context refers to regulations, rules and criterion of

behavior that apply to the analysis ( McMillan and Weyers, 2007 ) . Bing a research that involves human existences, it should be characterised by three cardinal points: do no injury, engagement is voluntary and confidentiality should be ever respected. Confidentiality means allowing ever the namelessness to the people involved in the questionnaire. Furthermore, another of import issue is plagiarism. Any old work that will assist in the development of the research will be mentioned in the text and besides in the

mentions.

1 Likert graduated table is a psychometric graduated table normally used in questionnaires. When reacting to a Likert questionnaire point, respondents specify their degree of understanding to a statement.

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FAIR TRADE – IS THE BUSINESS MODEL CHANGING?

Research Plan

Planing the research is a really of import affair that can impact the consequences of the research and its full completion. The Gantt chart helps in be aftering the direction of the research

foregrounding each measure and the period in which it has to be accomplished.

November

December

January

February

March

April

May

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4

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4

Sing the areaof research

aˆ?

aˆ?

aˆ?

aˆ?

aˆ?

Preliminary

literature reappraisal

aˆ?

aˆ?

aˆ?

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aˆ?

Christmas vacations

aˆ?

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Identify

concern job

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Refine research subject

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Transporting out literature reappraisal

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fixing questionnaire

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planing

research and settingup scheme

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roll uping information ( questionnaires )

aˆ?

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analyzing

questionnaires informations

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nexus informations with

literature

reappraisal

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composing up thesis

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Weeks

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FAIR TRADE – IS THE BUSINESS MODEL CHANGING?

There are four chief stairss that have to be taken into consideration because they are

critical in carry throughing the research undertaking.

The preparation of the research inquiry involves all the stairss until the designation of the concern job. This portion should be accomplished before the terminal of January 2009.

The completion of the literature reappraisal should be finished before the 15th of February. Literature survey will be done throughout all the period analyzing secondary and third informations in order to make a solid background about the subject.

Primary research through questionnaires. This stage links to the aggregation and analysis of the information. It should be accomplished within the 3rd hebdomad of March. To do this possible, the readying of the questionnaires should get down at the terminal of January, in order to see any possible hold in the aggregation of the responses and in the analysis of the informations acquired.

Finally, the composing up of the research is the concluding phase of the procedure. It needs clip in order prepare a good structured undertaking. It will explicate and foreground all the relevant consequences acquired in each old stages. This will get down in March and it will travel on for the

last two months.

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FAIR TRADE – IS THE BUSINESS MODEL CHANGING?

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