Global usiness Strategies
Vincent
The aftermath of World War II has seen the evolution of economic regionalism as a means for fostering foreign trade thereby economic growth of participating countries. Economic regionalism was a conscious attempt to manage the opportunities and constraints created by international economic tie-ups after World War II through institutional arrangements facilitating free flow of goods and services and coordination of foreign economic policies. It embraced free trade areas, customs unions, common markets and economic unions. On the basis of the level of integration the economic regionalism can be differentiated widely, which can be visualized in the form of creation of free trade areas, custom unions, common markets and economic unions. The member countries practice preferential tariffs levying comparatively lower rates of duty on imports of goods among themselves than that from non-member countries. Free trade among the member countries is protected by a schedule of customs duties charged…...
mlaBibliography
Marcial, Pedro. "Venezuela and Regional Integration in South America" retrieved at / spring99 / Groups99 / pedro / final.htm Accessed on 10 April, 2004http://wehner.tamu.edu/mgmt.www/NAFTA
Regional Integration in Central America" Retrieved at Accessed on 10 April, 2004http://www.itcilo.it/english/actrav/telearn/global/ilo/blokit/cacmin.htm .
Stubbs, Nicole Anne. "Regional Economic Integration: a Comparison of NAFTA and the EU" retrieved at / 98chapters / 4stubbsnafta98.htm Accessed on 10 April, 2004http://depts.washington.edu/canada/nafta
Global Business Strategies
Exit Strategy
When a firm looks to complete a joint venture, it is necessary to determine what type of exit strategy (or strategies) would be appropriate. This strategy allows the company to leave the agreement without facing extreme los, and it also allows the business to maintain the respect that they had gained in the industry already. In the proposed joint venture with the Murakami Mill in Japan, the risks have already been detailed, and it seems that the venture will be profitable to both parties. However, it would be irresponsible not to look at possible plans to leave the venture if it is not acceptable for some reason. In this section, exit strategies including divestiture of assets, allowing a joint venture partner to take the risk, diversification, shutting down the operation and other contingencies will be examined.
Divestiture of Assets
The goal of entering into a joint venture such as…...
mlaReferences
Allen, S. (2010). What is a joint venture and how do they work? Retrieved from http://entrepreneurs.about.com/od/beyondstartup/a/jointventures.htm
Carroll, M. (2012). A founder's framework for when it's time to move on and leave your startup. Retrieved from http://www.forbes.com/exit-strategy/
Kotelnikov, V. (2010). Diversification strategies. Retrieved from http://www.1000ventures.com/business_guide/im_diversification_strategies.html
Robbins, S. (2012). Exit strategies for your business. Retrieved from http://www.entrepreneur.com/article/78512
However, one needs to understand that the profits should be split evenly across other areas of operations as well, especially in research and development and other areas that stimulate company creativity.
ibliography
1. Hoover, Jeremy. 2004. 3 Ways To Re-Invest In Your usiness For Maximum Profits. On the Internet at http://www.mlmknowhow.com/articles/managing/reinvest.htm.
Student 3: One of the reasons to reinvest is because it will make you look professional (http://www.megabizflakes.com/top-3-reasons-re-invest-business) This is not as silly as it seems. The market and success on the market is quite often based on the way the clients and partners perceive you. If this is a company that reinvests most or all of its profits, then this is a company that is likely to have greater credibility on the market than a company that pays out more dividends. The former shows more commitment to long-term growth and to sustainable development, while the latter tends to look more like…...
mlaBibliography
1. Ven. 2010. How To Reinvest Your Online Business Knowledge ? | Money & Knowledge. On the Internet at Last retrieved on September 30, 2011http://emoneymakingonline.com/2010/12/21/how-to-reinvest/.
2. http://www.megabizflakes.com/top-3-reasons-re-invest-business
Student 4: Reinvesting the profit also makes sense from a financial perspective. Reinvesting the profit means that it will not be taxed or rather that it will be taxed less. This means that the company will be able to enjoy both the operational benefits of reinvesting the profit (including further developing the business), but also saving an expense, through avoiding the taxation of its profits. This should also make sense from a shareholders' point-of-view, because the value of the company they have a stake in will increase, while they will not be taxed on dividends, since they will not be receiving them.
It is never easy to determine how much to reinvest, but the general understanding is that the first years of the business should be those years where all or most of the profit is reinvested. It is more important during that phase to build the market share, retrieve new client accounts and invest in research and development. Following this initial phase, the decision of how much of the profit to reinvest should remain with the shareholders, who own the company and who are the most likely to best decide how to spend their money/profits.
The problem with this strategy was that it determined higher indirect costs that the company did not take into consideration when making this decision.
c) General Motors is one of the most successful U.S. companies. But GM was forced to modify its strategy because the global competition conditions. This is mostly the case of Toyota, which developed into an important competitor of GM on the European, U.S., and Asian market. The numerous advantages of Toyota and its products and services include: lower prices, better supply chain management that is based on Japanese methods, and higher quality management (Klum, 2011).
These advantages helped Toyota become the leader of the Asian market. This helped the company also improve its international position. In addition to this, General Motors' sales and profits significantly reduced. Therefore, the company had to modify its strategy in order to reduce its costs. The company's managers considered that this situation…...
mlaReference list:
1. The GM's Consolidated Strategy and Enhanced Approach (2011). The Global Mechanism. Retrieved September 24, 2011 from http://global-mechanism.org/about-us/strategyand-approach .
2. Muller, J. (2009). GM's Global Strategy in Doubt. Forbes Magazine. Retrieved September 24, 2011 from http://www.forbes.com/forbes/2009/0622/autos-foreign-aide-gm-global-strategy-in-doubt.html .
3. Klum, E. (2011). General Motors Growth Strategy. Retrieved September 24, 2011 from http://www.streetdirectory.com/travel_guide/51055/cars/general_motors_growth_strategy.html .
Global Strategic Business
Strategic Global Business Strategies
Globalization has become a ubiquitously used word in a relatively short time. Much of this globalization trend is centered on international economic systems becoming more intertwined which have been largely technologically driven. Technology has provided a platform in which has increased the speed of information transfer and consequently provided corporation more feasible access to foreign markets. As a result of globalization, many multi-national corporations (MNCs) have begun to drive a level of homogenization throughout the international business community. Standardizing processes and incorporating technology on a global scale creates much efficiency that can reduce redundancies in business processes. This advantage has produced enormous MNCs and the trend will continue to grow indefinitely. Four issues related to this trend were chosen from a current model of global corporate dominance and will be discussed in order to provide insights on strategies in the globalized environment (Anil, Govindarajan and…...
mlaWorks Cited
Anil, G., V. Govindarajan and H. Wang. The Quest for Global Dominance: Transforming Global Presence into Global Competitive Advantage. New York: Jossey-Bass, 2008. Book.
Minbaeva, D., et al. "MNC knowledge transfer, subsidary absorptive capacity, and HRM." Journal of International Business Studies 34.6 (2003): 581-599. Web.
) (Weiss, 2011).
ibliography
1. The Sloan rothers. Taking Your Startup to a Foreign Market. On the Internet at http://www.startupnation.com/business-articles/1471/1/startup-foreign-market.asp. Last retrieved on October 5, 2011
2. Weiss, Darryl. Opening in a Foreign Country; be careful. On the Internet at http://www.globalhrnews.com/story.asp?sid=158. Last retrieved on October 5, 2011
Third student
It is important for management to work on how to set up a business in a foreign country. There are so many options available, each with its own advantages and disadvantages, that management can take into considerations all these before arriving at a reasonable and profitable decision. First of all, the role of the company in the foreign market needs to be defined. According to this role, the company can act as a representative (of another foreign country or even of a local one), as an export company or a distributor (Entrepreneur, 2001).
Another decision to make is whether the company will purchase an existing local operation…...
mlaBibliography
1. Wuorio, Jeff. 2011. 6 tips for launching a business overseas. On the Internet at Last retrieved on October 5, 2011http://www.microsoft.com/business/en-us/resources/startups/business-opportunities/6-tips-for-launching-a-business-overseas.aspx?fbid=pY__5kA9uk_ .
2. How to Start an Import/Export Business. On the Internet at Last retrieved on October 5, 2011http://www.entrepreneur.com/article/41846 .
Fourth student
The first thing that the management should do to ensure success when setting up shop in a foreign country is to have a substantial analysis of the market in which it will be present. A substantial analysis of the market will include several different aspects and perspective that will need to be identified, as well as the company's response to these challenges. On one hand, for example, management will need to learn about things such as the size of the market, the purchasing power and the preferences of the consumers. At the same time, management should also keep track of issues such as the competition that is active on the respective market: a high number of competitors will mean that the market may become over saturated too quickly to remain profitable for the company to set up shop there.
Exporting apparel to France would reveal a slightly similar difference. As integrant part of the European Union, France has removed numerous financial barriers in relationship to other EU member states. It has however intensified its barriers relative to product quality and sanitary standards. In terms of the direct relationship between France and the United States, this is generally a positive one, revealing mutual gains and lack of controversy. Efforts are currently being made to reduce the trade barriers between the United States and the EU as a whole (Buy USA, 2009).
4.2. Franchising
A franchising entry strategy would reveal numerous benefits for Miana Fashion, such as reduced risks and shared responsibilities, but would also imply shared financial results. In France nevertheless, such a strategy would stand increased chances of success, supported by all political, economic, cultural and legal backgrounds. France is the leading franchising country of the European Union, with no less…...
mlaReferences:
Dickson, D.M., August 13, 2009, Trade Panel Hits China's Import Barriers, Washington Times
Hugh, E., 2009, Global Manufacturing: France Outperforms while Spain Continues to Flounder, Seeking Alpha, last accessed on December 7, 2009http://seekingalpha.com/article/170859-global-manufacturing-france-outperforms-while-spain-continues-to-flounder
Pinto, J., 2009, Global Manufacturing -- The China Challenge, Automation, last accessed on December 7, 2009http://www.automation.com/resources-tools/articles-white-papers/articles-by-jim-pinto/global-manufacturing-150-the-china-challenge
2008, China Real Estate Market Faces Slump, NuWire Investor, last accessed on November 26, 2009http://www.nuwireinvestor.com/articles/looming-housing-slump-in-china-52103.aspx
Global Financial Strategy
Critical assessment of the proposal to raise capital locally rather than in the UK
In the analysis of the proposal of raising capital locally rather than in the UK, it is essential to consider four critical aspects: costs, risks, benefits/advantages, and limitations/disadvantages. In the presentation of this critical assessment, the focus will be on the four factors or aspect in order to offer reliable analysis of the situation.
Costs
In the process of raising capital locally rather than in the UK, the organization must incur several costs. One of the essential costs is the professional cost. This refers to the amount of money or financial resources paid to the legal advisors, auditors, and reporting accountants in order to execute the process of raising the capital effectively and appropriately. Another important aspect of cost is the trading cost. These are direct costs including the brokerage commissions and financial resources paid by investors…...
mlaReferences
Burnham, P 2010, 'Class, Capital and Crisis: A Return to Fundamentals', Political Studies Review, 8, 1, pp. 27-39,
Carvalhal, A, & Camara Leal, R 2013, 'The World Financial Crisis and the International Financing of Brazilian Companies', Brazilian Administration Review (BAR), 10, 1, pp. 18-39,
'Chad' 2013, Columbia Electronic Encyclopedia, 6Th Edition, pp. 1-3,
Chana Kok, T, & Yap Voon, C 2011, 'Risk Factors of Commercial Banks in Malaysia', Journal Of Modern Accounting & Auditing, 7, 6, pp. 578-587,
2.1. Separate Unification - Advantages
A specification has to be made in that this process would commence with the unification of Comsec and its affiliates' websites
In case of success, the websites of other Entrystop subsidiaries would be unified
As such, the unification of Comsec's website offers a prototype
The new website would offer sufficient information as desired by the customers
4.2.1. Separate Unification -- Limitations
Only offers one category of information
Customers may often search to protect themselves against general as well as fire risks, but the sole Comsec website would offer limited data
Lack of an offer for complementary products and services
4.3. No Unification -- Advantages and Disadvantages
Advantages
No additional risks
No additional costs
Disadvantages
No possibility for improvement
Reduced chances to adapt to the changing needs of the customers
Possibility to lose competitive position
5.1. Proposed Solution
Due to the current state of the company and the surrounding environment, change is imperative, meaning that the third solution is by no means feasible
Of the…...
mlaBibliography
Bennet, R., Blythe, J., 2002, International marketing: strategy planning, market entry & implementation, 3rd Edition, Kogan Page Publishers
Chaffey, D., 2006, Internet marketing: strategy, implementation and practice, 3rd Edition, Pearson Education
Fletcher, R., Brown, L., International Marketing, 4th Edition
Golberg, D., Prosser, T., Verhulst, S.G., 1998, Regulating the changing media: a comparative study, Oxford University Press
Global Business
When businesses go international, they have to operate in a more competitive, uncertain, and risky business environment. The forces present in the Global environment bring a number of challenges for the businesses; making it more difficult for them to maintain their market share, enhance profitability, and keep the customers satisfied (Cherunilam, 2007). To compete successfully and ensure a sustainable future in the international markets, business organizations have to analyze these forces carefully and strategize accordingly. Globalization has also impacted the way countries use to recognize themselves as internationally competitive and advanced than other countries (Tellis, Stremersch, & Yin, 2003).
This paper presents a comprehensive discussion on the positive and negative impacts of Globalization and the efforts which nations and business organizations make in order to become internationally competitive and keep up pace with the Globalization. The paper starts with a brief description of different environmental forces that are an integral…...
mlaReferences
Benetton, (2012). The Group. Retrieved on May 3rd, 2012, from
CIA, (2012). Italy: Economy Overview. Retrieved on May 3rd, 2012, from
Cherunilam, F. (2007). International business: text and cases. India: PHI Learning Pvt. Ltd.
Dconti, (2012). Effects of Globalization on Italy. Retrieved on May 3rd, 2012, from
S.$1 = 80.38 JPY (Japanese Yen). However, the current economic crisis in the United States and in major world economies including the European Union, combined with the post-tsunami economic consequences within Japan has made the exchange rates highly volatile and fluctuating. In order to avoid exchange rate risks, the company will make all transactions in one standard currency that is U.S. dollars. Moreover, in order to avoid exchange rate risks AKJT Inc. will use hedging approach, while netting approach will also be used where necessary. Hedging approach will be more pragmatic for the company as the company will be taking financial loans from international financial institutions (IXGW, 2011).
Generation of Financial esources
Given the highly capital intensive nature of the business, generation of financial resources remains a major concern for AJKT Inc. Since the retained profits of the company are expected to remain relatively lower in the initial years, the company's retained…...
mlaReferences
IXGW (2011). How do foreign trade avoid exchange rate risk. Retrieved from http://www.ixgw.com/2011/02/how-do-foreign-trade-to-avoid-exchange-rate-risk/
Gowthrope, C. (2005). Business Account and Finance for non-specialists. UK: Thomson.
Sofat, R. & Hiro, P. (2008) Basic Accounting. India: Prentice Hall.
Global Business Cultural Analysis: Brazil
Cultural backgrounds reflect the ways and standards of living, which is unique and different for each country. In fact, the business world is also profoundly influenced by the cultural differences of the counties. This focus of this research paper, in this regard, is to analyze the cultural perspectives of doing business in Brazil. Therefore, major elements and dimensions of Brazilian culture such as business structures, management styles, communication, ethics, values, and customs are discussed comprehensively.
Moreover, the discussion has also been made on how the local businessmen integrate these cultural dimensions and elements. Indeed, a detailed comparison United States business has been made with that of Brazilian culture and business elements by means of Hofstede's dimension tool (that is particularly used for measuring cultural differences). Finally, the paper concludes with the implications for the U.S. businesses that plans and desires to conduct business in Brazil.
Table of Contents
Background…...
mlaReferences
Aswathappa. (2010). International Business 4E. India: Tata McGraw-Hill Education.
Beekun, R.I., Stedham, Y. & Yamamura, J.H. (2003). Business Ethics in Brazil and the U.S.: A Comparative Investigation. Journal of Business Ethics, 42(3), 267-279.
Boraas, T. (2001). Brazil. USA: Capstone.
deVries, A. & Blore, S. (2010). Frommer's Brazil. 5th Edition. USA: John Wiley & Sons.
The company offers training sessions for their staff members and presents them with several incentives, such as discounts on the organization's services or employee empowerment. This virtually means that the individual staff members are valued as vital organizational assets, and their input is considered throughout the decision making process.
The second component of the transportation and logistics infrastructure is given by the fleet. This is composed from the following:
654 aircraft fleet, out of which 71 are Airbus A300; 56 are Airbus A310; 13 are AT 72s; 26 are ATT 42s; 79 are Boeing 727; 1 is Boeing DC10 (10s); 6 are Boeing DC10 (30s); 57 are Boeing MD 10 (10s); 12 are Boeing MD 10 (30s); 57 are Boeing MD (11s); 10 are Cessna 208As; 242 are Cessna 208Bs and finally, 24 are Boeing 757-200s
43,000 vehicle fleet over 100,000 power ships over 2 million ships and ship managers for the…...
mlaReferences:
Marc h 16, 1995, FedEx Extends Tracking and Information Capabilities to America Online Users; Federal Express Customers already Using Services on FedEx Internet Worldwide Web Home Page, Business Wire
2000, FedEx Corporation SEC Filling, last accessed on January 18, 2010http://apps.shareholder.com/sec/viewerContent.aspx?companyid=FDX&docid=784953
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The lack of process orchestration shows that IBM is failing to understand and manage the bargaining power of suppliers effectively. The core requirements of the project center on a series of healthcare professionals who taken together are the stakeholders of a complex payroll processing system (Paull, 2013). The requirements from a project management standpoint is to concentrate on the bargaining power of suppliers as system integration partners and create a unified project plan that can successfully meet multiple stakeholder needs. Making this more difficult than other implementations is the bargaining power of buyers, who also are requiring that IBM construct a system they can quickly use to solve complex supply chain, procurement and strategic sourcing challenges as can be inferred from the article (Paull, 2013).
IBM has also allowed for a greater level of threat from new market entrants as well, through the ineffective management of stakeholder requirements. What's obvious…...
mlaReferences
Ball, L.D. 2000, "IT education success strategies for change management," Information Systems Management, vol. 17, no. 4, pp. 74-77.
By, B.P. 2013, "Michael Dell Offered Lower Price for His Shares to Make Dell Deal Work," LBO Wire, .
Fickenscher, K. & Bakerman, M. 2011, "Change Management in Health Care it," Physician Executive, vol. 37, no. 2, pp. 64-7.
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They communicate the H situation to the H responsible who then acts in accordance with the information received from the division managers.
The business in which Niche Tools operates requires a lot of field work. This means that people at the base observe better and faster any problems or needs that might interfere with the company's activity. Therefore, information within the company circulates mainly from the bottom to higher levels. Top managers make their decisions based on the information received from their subordinates.
The company's top management mainly assesses the conditions of the external environment. They negotiate with suppliers, they analyze competitors in order to develop competitive advantage. Also, they analyze other components of the external environment, like the economic, demographic, geographical environment and their likely influence on the company's activity.
Top managers conduct analyses in order to identify the company's strengths and weaknesses. They identify opportunities that can be exploited by…...
mlaReference list:
1. Pieniazek, a. (2007). Centralization vs. Decentralization. Retrieved March 3, 2010 from http://adamp.com/management/centralization-vs.-decentralization/ .
Top Management
Division leader 1
Division leader 2
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