Thursday, July 18, 2019

Master of Business Administration Essay

inter expression p bentage is a term sociable function to collectively guide topics relating to the operations of firms with engagements in several(prenominal) countries. much(prenominal) firms argon just abouttimes called multi topic corporations (MNCs)1. Points of yieldsign with this topic whitethorn admit ethnic considerations, which itself may include differences in integrity and legal g overning body, language barriers, alimentation standards, mood and much. These acquire to be overcome for a MNC to be successful in an abroad venture.A form of semi organizational party in world- astray ancestry is an IBC. An IBC ( world(prenominal) rail line corporation) is a form of offshore follow. IBCs include banks, amends companies, and trade firms.Well cognise examples of MNCs include fastfood companies McDonalds and Yum Brands, vehicle manuf formurers identical worldwide Motors and Toyota, consumer electronics companies alike LG, Sony, Siemens A.G. and ecu menical Electric. MNCs principally cave in a subsidiary or an bet over a federation in the land of venture. single of the results on the increase success of International contrast ventures is Globalization.The outside(a) purlieu is very consequential today. Globalisation, the process whereby bloodes develop worldwide brands and reapings which they show across the world, and in which they employ drive in m either different countries, has alter declivity relations.The multinational purlieu2 is the interaction amidst (1) the municipal environsal forces and the contrary environmental forces and (2) the overseas environmental forces of oneness rural atomic follow 18a and those of an oppo nonpluse field.According to Porter, the extraneousist environment is characterized by the hobby trends* Reduction in the differences among countries. The stinting differences among positive and impudently developed countries sees to be narrowing in areas like income, cypher costs, energy costs, marketing practises, and scattering channels.* More aggressive industrial policies. Governments like Japan, South Korea, and west Germany are pickings aggressive postures to stimulate industry in automobileefully selected sectors. This indemnity is giving firms in much(prenominal)(prenominal) countries the support to tell on bluff moves into parvenue markets.* National erudition and defend distinctive assets. The proactive exploitation of such distinctive assets as inbred resources (e.g., oil, copper, tin, rubber) by presidential terms is a reflection of changing school of thought toward industrial indemnity. This trend has potentially distinguishedimplications for world competition.* Freer geological period of technology. The step-upd flow of technology from agri pagan to landed estate tends to come on much supranational competition.* Gradual growing of new vainglorious-scale markets. China, Russia, and possibly India may ultim ately emerge as big markets in the future. Thus, gaining access to these markets may s tumefy up(p) aim a crucial strategic variable in the future.* Competition from newly developing countries. Developing countries are progressively well prepared to organize in ruminate capital investments in large-scale facilities, aggressively to render to pervert or indorse the latest technology, aggressively to take large risk.The net result of these changing currents has been to make the transnational arena a fiercely competitory marketplace in which the standards of warlike success micturate risen dramatically in the break down hardly a(prenominal) decades. at that place sop up been well-nigh cross-currents that shed make the pattern of external competition very Gordian and different from earlier competitive strategies of the 1950s. These cross-currents are3Slowing rates of economic produce. eroding types of comparative gain. in the buff forms of fosterionism.New types of policy-making science inducementPro mannersrating coalitions among firms from different countries. Rowing power to tailor to topical anaesthetic conditionsBe landableness of the currents and cross-currents, many much firms have become outside(a) in their strategies and operations. The recent strategies revolve well-nigh several themes described by Porter in that respect is no one pattern of multinational competition nor one type of world(a) strategy. The orbiculateization of competition has become the dominate rather than the exception by 1986.The temperament of international competition has kindd markedly in the last two decades. Implementing a planetary approach to strategy requires a delicate organizational reorientation for many firms.The international environment consists of4competitorsthe economic systemthe hearty systemthe monetary systemthe political/legal systemthe environmental system.Competitors actions coin the ability of the tune to make profit s, because competitors pass on continually seek to gain an advantage over each early(a), by differentiating their overlap and service, and by seeking to provide correct prize for bullion.The economic system is the governance of the parsimoniousness to allocate scarce resources. The economy tends to go with periods of faster and long-play growth. assembly linees prosper when the economy is booming and living standards are rising.The fond system is the theoretical account of ideas, attitudes and behaviour patterns that are involved in human alliances. In fact professiones are influenced by consumer attitudes and behaviours which await on such factors as the age structure of the population, and the temper of work and leisure.The monetary system facilitates line change over. monetary activity is based around earning, outlay, saving and borrowing. Money has been likened to the oil that lubricates the wheels of commerce. Monetary activity involves taskes in a clea r of relationships involving financial institutions (e.g. banks and build societies), creditors, debtors, clients and suppliers. A pick out monetary influence for concern is the interest rate. Higher interest rates increase descent costs and act as a break on spending in the economy.The political/legal system bring to passs the rules and frameworks in spite of appearance which confirmup operates. Government policy supports and supercharges some care activities e.g. enterprise, while disapprove some others e.g the creation of pollution.The environmental system is the natural system in which sprightliness takes place. progressively artes have become awake of the relationship between their economic activity i.e. qualification reasoneds and services for profits and the exits that this has on the environmental system.International business differs from its interior(prenominal) counterpart5 in that it involves triplet environments interior(prenominal), unconnected a nd international environments instead of one. While environmental forces later part be similar in domestic and foreign environments their furbish up and set very much differ creating ambiguity and making the impact of decisions difficult to assess. These environments create an additional mould of coloniality requiring business leaders to have a solid disposition of business concepts and techniques used both in dwelling house and host countries in which they operate. Better appreciation of the environmental forces in the host state in which a business operates impart allow business leaders to conclude if a concept or technique (1) undersur grammatical case be transferred to other democracy as is, (2) must be satis milling machinery to topical anesthetic conditions, or (3) plenty non be used altogether.Differences between international environment and domestic environment6Today, business is acknowledged to be international and there is a general view that this p rovide continue for the foreseeable future. International business may be specify merely as business proceedings that take place across national b hallows. This broad definition includes the very downhearted firm that exports (or imports) a small amount of money to only one verdant, as well as the very large world(prenominal) firm with integrated operations and strategic alliances around the world. Within this broad array, distinctions are ofttimes made among different types of international firms, and these distinctions are facilitative in understanding a firms strategy, organization,and structural decisions (for example, its financial, administrative, marketing, human resource, or operations decisions).One distinction that commode be dish outful is the distinction between multi-domestic operations, with independent subsidiaries which act essentially as domestic firms, and global operations, with integrated subsidiaries which are sloshedly cogitate and interconnected. These may be thought of as the two ends of a continuum, with many possibilities in between. Firms are unlikely to be at one end of the continuum, though, as they often combining aspects of multi-domestic operations with aspects of global operations. municipal and international enterprises, in both the normal and common exchangeier sectors, share the business objectives of operation successfully to continue operations. Private enterprises seek to wreak profitably as well. Why, then, is international business different from domestic? The answer lies in the differences across borders. Nation-states generally have unique government systems, laws and regulations, currencies, taxes and duties, and so on, as well as different cultures and examples. An somebody travelling from his home area to a foreign ground ask to have the proper documents, to carry foreign currency, to be able to communicate in the foreign country, to be dressed appropriately, and so on. Doing business in a fo reign country involves similar issues and is thus more than(prenominal)(prenominal) Gordian than doing business at home.LITERATURE check outA business does not function in a vacuum. It has to act and respond to what breaks outside the factory and office walls. These factors that happen outside the business are known as external factors or influences. These impart fix the main internal functions of the business and possibly the objectives of the business and its strategies.Main FactorsThe main factor that affects virtually business is the dot of competition how fiercely other businesses vie with the products that another business makes. The other factors that sess affect the business are favorable how consumers, households and communities behave and their beliefs. For instance, changes in attitude towards health, or a greater number of pensioners in a population. Legal the way in which legislating in society affects the business. E.g. changes in employment laws on wo rking hours. economical how the economy affects a business in terms of taxation, government spending, general pray, interest rates, substitution rates and European and global economic factors. semipolitical how changes in government policy exponent affect the business e.g. a decision to subsidise building new houses in an area could be good for a local brick works. technological how the rapid pace of change in production processes and product innovation affect a business. Ethical what is regarded as morally right or wrong for a business to do. For instance should it calling with countries which have a poor record on human rights.Changing External purlieuMarkets are changing all the time. It does depend on the type of product the business drives, however a business postulate to answer or lose customers. a few(prenominal) of the main reasons why markets change promptlyCustomers develop new ask and pauperizations.New competitors enter a market.New technologies pi ssed that new products net be made.A world or countrywide answer happens e.g. Gulf War or grounding and mouth disease. Government introduces new statute e.g. increases minimum wage. logical argument and Competitionthough a business does not fate competition from other businesses, inevitably more or less will face a gradation of competition. The amount and type of competition depends on the market the business operates in more small rival businesses e.g. a shop mall or city marrow squash arcade close rivalry. A few large rival firms e.g. washing gunpowder or Coke and Pepsi. A rapidly changing market e.g. where the technology is being developed very quickly the quick phone market. A business could react to an increase in competition (e.g. a launch of rival product) in the following ways Cut impairments ( tho can trim back end profits)Improve spirit (but increases costs)Spend more on promotion (e.g. do more advertising, increase brand loyalty but costs money) Cut costs, e.g. use cheaper materials, make some workers redundantPolitical surroundings from each one country varies regarding international raft and movement of foreign prepares on its ingrained soil. near countries openly court foreign companies and encourage them to invest in their country by offering decrease taxes or some other investment incentives. different countries impose strict regulations that can cause large companies to leave and open a plant in a country that provides more favorable operating conditions. When a federation decides to conduct business in another country, it should withal consider the political stability of the host countrys government. unsound leadership can create fundamental problems in recouping profits if the government locomote of the host country and/or changes its policy towards foreign craft and investment. Political asymmetry is often caused by horrific economic conditions that result in gracious unrest. other key aspect of int ernational job is paying for a product in a foreign currency. This workout can create potential problems for a company, since any currency is subject to price fluctuation.A company could lose money if the value of the foreign currency is trim back forwards it can be change into the sought after currency. Another issue regarding currency is that some nations do not have the required cash. Instead, they engage in counter dispense, which involves the organize or indirect exchange of goods for other goods instead of for cash. Counter trade follows the like principles as bartering, a practice that stretches back into prehistory. A car company might trade new cars to a foreign government in exchange for high-quality marque that would be more dear(p) to buy on the open market. The company can then use the steel to produce new cars for sale. In a more extreme case, some countries do not extremity to engage in exempt trade with other nations, a select known as self-sufficienc y. thither are many reasons for this choice, but the most all important(p) is the existence of strong political beliefs.For example, the power Soviet amalgamation and its commie affiliate traded only with each other because the Soviet Union feared that Western countries would drive to suppress their governments through trade. Self-sufficiency allowed the Soviet Union and its allies to avoid that possibility. However, these self- obligate trade restrictions created a shortage of products that could not be produced among the group, making theoverall quality of life within the Soviet axis vertebra comfortably lower than in the West since consumer demand could not be met. When the Berlin surround came down, trade with the West was resumed, and the shortage of products was bring down or eliminated.Social environs and officeSocial change is when the people in the community adjust their attitudes to way they live. commercees will need to adjust their products to meet these cha nges, e.g. victorious scrape out of childrens drinks, because parents savour their children are having too much sugar in their diets. The business also ineluctably to be aware of their friendly responsibilities. These are the way they act towards the different split of society that they come into contact with. law covers a number of the areas of obligation that a business has with its customers, employees and other businesses. It is also important to consider the effects a business can have on the local community. These are known as the brotherly eudaimonias and social costs. A social benefit is where a business action leads to benefits preceding(prenominal) and beyond the direct benefits to the business and/or customer.For example, the building of an attractive new factory provides employment opportunities to the local community. A social cost is where the action has the reverse effect there are costs oblige on the rest of society, for instance pollution. These free b enefits and costs are distinguished from the private benefits and costs promptly attributable to the business. These free cost and benefits are known as externalities external costs and benefits. Governments encourage social benefits through the use of subsidies and grants (e.g. regional supporter for undeveloped areas). They also discourage social costs with fines, taxes and legislation.Political EnvironmentEach country varies regarding international trade and relocation of foreign plants on its native soil. Some countries openly court foreign companies and encourage them to invest in their country by offering reduced taxes or some other investment incentives. Other countries impose strict regulations that can cause large companies to leave and open a plant in a country that provides more favorable operating conditions. When a company decides to conduct business in another country, it should also consider the political stability of the host countrys government. Unstable leaders hip can createsignificant problems in recouping profits if the government falls of the host country and/or changes its policy towards foreign trade and investment. Political instability is often caused by severe economic conditions that result in civil unrest.Another key aspect of international trade is paying for a product in a foreign currency. This practice can create potential problems for a company, since any currency is subject to price fluctuation. A company could lose money if the value of the foreign currency is reduced before it can be exchanged into the desired currency. Another issue regarding currency is that some nations do not have the necessary cash. Instead, they engage in counter trade, which involves the direct or indirect exchange of goods for other goods instead of for cash. Counter trade follows the same principles as bartering, a practice that stretches back into prehistory. A car company might trade new cars to a foreign government in exchange for high-quali ty steel that would be more costly to buy on the open market. The company can then use the steel to produce new cars for sale. In a more extreme case, some countries do not want to engage in free trade with other nations, a choice known as self-sufficiency.There are many reasons for this choice, but the most important is the existence of strong political beliefs. For example, the former Soviet Union and its communist allies traded only with each other because the Soviet Union feared that Western countries would attempt to comprise their governments through trade. Self-sufficiency allowed the Soviet Union and its allies to avoid that possibility. However, these self-imposed trade restrictions created a shortage of products that could not be produced among the group, making the overall quality of life within the Soviet bloc substantially lower than in the West since consumer demand could not be met. When the Berlin Wall came down, trade with the West was resumed, and the shortage of products was reduced or eliminated.Economic EnvironmentAn important factor influencing international trade is taxes. Of the different taxes that can be applied to import goods, the most common is a obligation, which is generally outlined as an excise tax imposed on imported goods. A country can have several reasons for horrible a responsibility. For example, a tax tax may be applied to an imported product that is also produced domestically. The primary reason for this type of tariff is togenerate revenue that can be used posterior by the government for a kind of purposes. This tariff is normally set at a low level and is commonly not considered a threat to international trade. When domestic manufacturers in a particular industry are at a disadvantage, vis--vis imports, the government can impose what is called a over cautionary tariff. This type of tariff is designed to make foreign products more pricey than domestic products and, as a result, cling to domestic companie s.A preservative tariff is normally very popular with the bear on domestic companies and their workers because they benefit most direct from it. In retaliation, a country that is moved(p) by a protective tariff will frequently enact a tariff of its own on a product from the original tariff enacting country. In 1930, for example, the U.S. recounting passed the Smoot-Hawley Tariff Act, which provided the means for placing protective tariffs on imports. The fall in States imposed this protective tariff on a wide variety of products in an attempt to help protect domestic producers from foreign competition. This legislation was very popular in the United States, because the Great Depression had just begun, and the tariff was seen as helping U.S. workers. However, the tariff caused warm retaliation by other countries, which like a shot imposed protective tariffs of their own on U.S. products. As a result of these protective tariffs, world trade was severely reduced for nearly all countries, causing the wealthiness of each affected nation to drop, and increasing unemployment in most countries.Realizing that the 1930 tariffs were a mistake, Congress took corrective action by locomote the Reciprocal Trade Agreements Act of 1934, which sceptered the president to reduce tariffs by 50 percent on goods from any other country that would agree to similar tariff reductions. The goal was to promote more international trade and help establish more cooperation among exportation countries. Another form of a trade barrier that a country can employ to protect domestic companies is an import quota, which strictly limits the amount of a particular product that a foreign country can export to the quota-enacting country. A government can also use a nontariff barrier to help protect domestic companies. A nontariff barrier ordinarily refers to government requirements for licenses, permits, or significant amounts of paperwork in order to allow imports into its country.Cultural EnvironmentBefore a corporation begins exporting products to other countries, it must first learn the norms, taboos, and values of those countries. This information can be critical to the successful introduction of a product into a particular country and will influence how it is sold and/or marketed. Such information can impede cultural blunders, such as the one General Motors committed when trying to convey its Chevy Nova in Spanish-speaking countries. Nova, in Spanish, means doesnt goand few people would purchase a car named doesnt go. This marketing errorresulting simply from ignorance of the Spanish languagecost General Motors gazillions in initial gross salesas well as considerable embarrassment. Business professionals also need to be aware of foreign customs regarding standard business practices.For example, people from some countries like to sit or stand very close when conducting business. In contrast, people from other countries want to maintain a spatial withdrawnnes s between them and the people with whom they are conducting business. Thus, before business-people travel overseas, they must be granted training on how to conduct business in the country to which they are traveling. Business professionals also run into another practice that occurs in some countriesgrafting. The practice of bribery is common in several countries and is considered a normal business practice. If the bribe is not paid to a business psyche from a country where bribery is lodgeed, a consummation is unlikely to occur. Laws in some countries command businesspeople from paying or evaluate bribes. As a result, navigating this legal and cultural thicket must be through very carefully in order to maintain full compliance with the law.strong-arm EnvironmentOther factors that influence international trading activities are related to the physiological environment. Natural bodily features, such as mountains and rivers, and human-made structures, such as bridges and roads, c an have an impact on international trading activities. For example, a large number of potential customers may live in a country where natural physical barriers, such as mountains and rivers, make getting the product to market nearly impossible.EXAMPLEStag & Spencer9As an organisation develops, it creates working practices within the business that reflect its way of doing things. These practices become embedded in decisions and operations. The way of doing things guides and influences employees as they carry out their work. However, when organisations develop a new business strategy this creates a process of change. This leads to different ways of working. fellowship background10With more than 120 years of inheritance, label & Spencer is one of the best-known British retailers. The company has more than 450 throw ins within the UK and employs more than 65,000 people. It also operates outside the UK where it has a developing business in places as far abroad as Hong Kong. In recent years, the UKs retailing industry has been characterised by intensified competition. Customers are more aware of where and how they want to shop. They also know what sort of obtain experience they require. This has made it much more difficult for retailers to survive.Facing the challengesThe result was that mark & Spencer had to develop a new business strategy. This created a period of change for the self-coloured organisation. The period of change involved focus the business upon the basics. This included the three business values of Quality, Value, and Service. Marks & Spencer developed a promotional campaign that emphasised Your M&S. This helped the company to connect customers with the heritage in the business. It also linked the business in the minds of customers with its two other values of Innovation and Trust.The process involved three key features developing products that customers wanted place in the environment within storesproviding good customer service to look af ter customers.These changes have created a business environment with more challenges for employees. Managers had to prepare employees for whatever eccentric they would be asked to undertake in this new environment. The answer was to develop career paths for the employees. This case study looks at the processes of training and ripening at Marks & Spencer. It shows how this helped employees tocope with the challenges they set about and created a career path for them.Mc Donalds11McDonalds is one of only a handful of brands that command instant recognition in virtually every country in the world. It has more than 30,000 restaurants in over 119 countries, serving around 50 million people every day.All businesses face challenges every day. One of the major challenges lining McDonalds is managing tune. Stock steering involves creating a balance between meeting customers needs whilst at the same time minimising waste. bollix up is reduced by 1. Accurate prediction of demand so that products do not have to be thrown past as often. 2. Accurate stock control of the raw materials.Stock management involves creating a balance between meeting customers needs whilst at the same time minimising waste. This is an increasingly tough balancing act. As customer tastes change, McDonalds needs to increase the outrank of new products it offers, so the challenge of lessen waste becomes even greater. Why change was needed12In the past, stock ordering was the responsibility of individual restaurant managers. They ordered stock using their local knowledge, as well as data on what the store sold the previous day, week and month. For example, if last weeks sales figures showed they sold 100 units of coffee and net sales were rising at 10%, they would expect to sell 110 units this week. However, this was a elemental method and involved no calculations to take account of factors such as national promotions or school holidays. It took up a lot of the Restaurant Managers time, leav ing them less time to undertake on delivering quality food, service and cleanliness in the restaurants.The new systemIn 2004, McDonalds introduced a specialist central stock management function known as the Restaurant Supply Planning Department. This police squad communicates with restaurant managers on a rule-governed basis to find out local events. Theteam builds these factors into the new planning and prognostic system (called Manugistics) to forecast likely demand of finished menu items (e.g.Big Macs). This case study looks at how McDonalds manages its stock through its management systems and what benefits this brings.ConclusionThe world has a long history of international trade. In fact, trading among nations can be traced back to the earliest civilizations. Trading activities are directly related to an improved quality of life for the citizens of nations involved in international trade. It is preventative to say that nearly every person on earth has benefited from interna tional trading activities.International business grew substantially in the second half of the twentieth century, and this growth is likely to continue. The international environment is complex and it is very important for firms to understand this environment and make effective choices in this complex environment. In this assignment we examined the characteristics of an international environment, the differences between international environment and domestic environment and then the constrains, difficulties, benefits and opportunities having in mind social cultural factors, political factors, and legal, environment. Finally we outlined the cases of famous firms. The topic of international business is itself complex, and this discussion serves only to introduce a few ideas on international business issues.BIBLIOGRAPHYBooksBuckley, P.J., ed. What is International Business? Basingstoke, Hampshire New York, NY Palgrave Macmillan, 2005. Churchill, G., and Peter, P. (1995). merchandise Cr eating Value for Customers. Austen Press Daniels, J.D., and L.H. Radebaugh International Business. Environments and Operations. Reading, MA Addison-Wesley, 1997. Hofstede, G. Cultures Consequences case-by-case Differnces in Work Related Values. Beverly Hills, CA Sage Publications, 1980.Internet SitesWikipedia.http//www.thetimes100.co.uk/company_list.phpwww.mcdonalds.comwww.marksandspencer.comhttp//applications-of-strategic-management.24xls.com/en128http//www.tamu-commerce.edu/genbus/walkerwww.referenceforbusiness.com/management/Gr-Int/International-Business

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.