...outsourced. Strategic decision makers must consider many aspects when pursuing international strategies (Coulter, 2013, p.198). Before doing business internationally, however, strategic managers need to explore, examine, and understand as best as they can, the important issues in the international environment (Coulter, 2013, p.198). Although outsourcing work has its advantages, the drawbacks must also be considered. Some safety concerns could include: 1) differences in language, culture, and value systems, 2) ethnic, religious, and cultural tensions, and 3) disruptive changes such as terrorist attacks, natural disasters, and disease outbreak. Differences in language and culture may cause difficulty in implementing safety protocol. The employees may not fully comprehend what you want, due to the language barrier. The culture of the country that you’re outsourcing your work to may not value safety. This can be a huge risk if you are operating machinery. Ethnic concerns are also important. How the country that your business is based in is, viewed by the country that you’re relocating to? If you are outsourcing work for your company to a country that is hostile towards your, it could pose a huge risk. Will the religious views of the country you’re outsourcing to allow employees to work on certain tasks? Last but not least would be natural disasters, terrorist attacks, and disease. Does the country that you’re outsourcing to have natural disasters on a consistent basis that can halt or delay...
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...of Indiana Today, problems associated with global business management have been identified as factors that negatively impact the performance and productivity of multinational corporations and in turn, adversely affect regional and national economic growth. While factors related to logistics and distribution are important when selecting international suppliers, they are inadequate when considered in isolation of internal and external forces. This paper engages in a comprehensive and systematic analysis of global supply chain management, particularly in terms of micro and macro cultural considerations. INTRODUCTION Organizations are facing increased global competition, economic uncertainties, and changing markets. Technology is changing the way we conduct business and manage information. Outsourcing of significant functions within businesses and organizations complicates the landscape of supplier relations. Suppliers and vendor partners may be located in the same city, region or country. But they are just as likely to be located halfway around the world, adding new challenges to business management. The growth of international strategic partnerships has risen exponentially in the last twenty years. Competing in a global marketplace has made it increasingly important to align business strategies with a risk management strategy that includes strengthening global supply chains and vendor partnerships. As Wiley points out, “In the near future, it is supply chains that...
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...Effects of Outsourcing Name Institution Effects of Outsourcing Abstract Outsourcing is the practice of assigning a firm's business progressions to an outside agency for the purpose of improving service quality, driving innovation, or developing benefits of lower labour costs (Burkholder. 2006). Intercontinental outsourcing occasionally known as offshoring is a significant facet of economic globalization. Since outsourcing hints to more specialization, it is anticipated to reduce production expenses and to raise productivity. This study uses micro data on American firms to investigate the effects of international and domestic outsourcing on the economy at large, jobs, the production quality and the its ethnic view in the United States. It is based on a unique survey on outsourcing covering the period 2001 to 2013 over a decade of study. The survey allows one to distinguish between domestic and international outsourcing and between outsourcing of core and support activities. This article will highlight the changes that have been observed since the initiation of the outsourcing practise to its impact on the areas of study in sub-topics. Introduction The conflict has been going on from at least the 1880s, when the first New England textile mills initiated moving its manufacturing process to the Carolinas. Whatever name it goes by be it runaway plants, outsourcing, global sourcing, offshoring workers and the public tends to have mixed fillings towards it, executives view it as...
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...countries like Poland and Romania are strong spots on the global outsourcing map Globalization & Integration Group Project Table of Contents Abstract 3 Introduction 3 Poland 4 Significant savings costs 5 Ability and quality of resources 5 Low risk location 5 Culture Similarity 6 Investment Climate 6 article 7 Romania 8 Government support and business environment 9 Quality of the language and educational skills 9 Low labor costs 10 Culture 10 Intellectual property security and privacy 10 article 11 Comparison 12 Cost competiveness 12 Resources and skills 13 Economic competitiveness 13 Regulation 13 Corruption perception 14 Legal protection 14 Conclusion 14 References 14 Abstract In this paper, we discuss why are the Eastern European countries like Romania and Poland potential destination for outsourcing. Given an economic condition, Geographical advantage, business environment and quality issue explanation of each country. Both countries are economically competitive in outsourcing market in Eastern Europe, promptly emerging as a favorite destination. Introduction Outsourcing is a practice used externally in order to reduce costs by transferring...
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...Ethics across Cultures Article Review Meghan Kraft XMGT/216 Deborah Pryer November 22nd 2015 Business Ethics across Cultures Article Review For centuries countries have been sharing their goods, services, cultures, and ways of life with those who visit or decides to do business with their country. While most would assume that people in another land speaking a different language, following a different religion, and eating different food would more than likely perceive and behave differently from than our own; the truth is that even though these differences may be perceived, very little is done to actually understand them appropriately unless it is deemed necessary. It is obvious that through globalization, that not just one, but each and every country has its own problems with ethics regarding business. It is made quite clear that there is a common scourge in business practices worldwide. It is also very clear that we are victims to the same faults that occur in humanity on a global scale. However, what is quickly becoming equally apparent, for international businesses and corporations to deal successfully with a foreign contractor, business, or even government; the proper measures must be taken to understand the differences in ethical perception and to work to accommodate those differences. Failure to do so leave many of these companies and businesses vulnerable for international ethical dilemmas that are quickly brought to global attention by international media sources...
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...Globalization Globalization entails a conceptualized contemporary phenomenon encompassing the breaking down of borders, emergence of novel technologies and mixing of various cultures. The tern covers a range of aspects including economic, cultural and political trends. It also signifies the tendency of businesses and investment funds to cross national and domestic markets to other locations all over the world ending up strengthening the way various markets become interconnected, increasing international trade and enhancing cultural exchange. Globalization enables companies to draw workers from different cultural backgrounds and gain fresh insights into various cultures from the standpoint of marketing and management. The changes necessitate companies to learn the ways of dealing with the diversity and adopt new guidelines and policies. As more firms access foreign companies that provide outsourcing, employee wages tend to change significantly. The cultural, ethnic and religious diversity presents the need for increased employee training. Since more companies are operating on an international platform, employees begin working in foreign countries. With globalization it is relatively easy to manage projects from different corners of the world. Companies can also increase efficiency in their projects by comparing how other projects run in different parts of the world. Globalization has a huge impact towards increasing competition in the business world. The competition usually...
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...INTERNATIONAL ETHICS AND WORKING CONDITIONS 1 Introduction: The Purpose of Outsourcing Today many companies look to outsourcing in a variety of countries in order to remain profitable and competitive. In today’s competitive market, as companies compete to stay profitable, many will search for countries that can produce the products they need at the lowest possible price. Ethical awareness pertaining to employment in countries where salaries are below those in the United States has come to the forefront. The Ethical Issues of Outsourcing Internationally Business ethics is the accepted principle of right or wrong governing the conduct of business people (Hill, 2013). Outsourcing refers to a company that contracts with another company to pro ide services that might otherwise be performed by in-house employees (www.webopedia.com). Outsourcing continues to increase as companies struggle to stay competitive and profitable. There is a continued increase for companies to find new ways to cut overhead expenses and increase profits so companies can look to creating new products, along with providing shareholders with profitable returns on their investments. Reasons for Outsourcing Outsourcing can be complicated as business relationships are more economic in nature, allowing for moral and ethical issues to be present. Ethical issues in outsourcing internationally arise as business relationships continue to become more economic and many of those involved are...
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...Problems in outsourcing 1. Executive Summary Outsourcing is the way of distributing the work in an organization to the other companies, in case the parent company is not having the expertise in handling the situation. Hence, the companies are entering into different business opportunities, even though they are not having the expertise and thus outsourcing the work in the organization to the other potential companies. The outsourcing may be national or international. Generally the outsourcing will be highly seen in the service industry rather than the manufacturing industry. When the work is being distributed to other companies, there will always be a scope for the cultural variations which will affect the efficiency of the organization. As the service outsourcing deals with the different cultured people involved, it is highly discouraged to tie up the performance of the company with the cross cultural management of the organization. Hence, the companies are adopting the cross cultural management such that the different cultured people, processes and the operations will be run under a same hierarchy which will be monitored by the management of the organization. In this document, the effect of the cross cultural environment will be discussed in the outsourcing department and how they have faced problems in designing a global strategy to handle the outsourcing. The management theories like Trompenaars will be specified in this document to enhance the knowledge of these theories...
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...foreign country could face when outsourcing to another host country is it eliminate direct communication between the company and the client they services. It prevents the company from forming a strong working relationship with the company and customers and often leads to frustration on both sides especially if the product doesn’t meet quality standards, often the manufacturer must repeat production for accurate results if the product is not the company standards and also there are concerns of not having control to some aspects of the company. Other issues the company might face is the delaying communication and project implementation and the company may rely on the outsource provider that could perhaps may lead to problems if the outsourcer back out on their contract if they feel the working relationship is not going so well as well as hidden costs, for example if a contract is already sign and there are other additional services that are needed there will be a cost associated. Anything that is not covered is considered additional cost to the company. Other issues the company might face are the treat to security and confidentiality. This is one of the most important aspects of any business; you are in charge of keeping payroll, medical, and other confidential information that will be transmitted to the outsourcing company. These are some of the barriers a company when might face just to name a few. Cultures and the expectations within cultures affect all aspect of any business...
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...increased trade and outsourcing among nations which basically results in these nations working like partners because they are working together in order to better their situation. Globalization has advantages as well as disadvantages. It is viewed as a cause for increasing problems and also as a way of balancing things with one another. Globalization is all around, can be seen everywhere, and effects everyone. Globalization is a continuous process through which different societies, economies, traditions, and cultures integrate with each other on a global scale. This is made possible through the various means of communication and the interchange of ideas. Globalization goes all the way back to the Silk Road. It ran across central Asia, connecting China and Europe. The Silk Road made it possible and easier for the exchange of goods between the two which would have been virtually impossible otherwise due to the great distance between them. (Mann) The extreme advances in technology, travel, and telecommunications over the past 30 years are responsible for the recent huge increase in globalization. The period from 1980 through the present is the most remarkable period of globalization to date due, in part, to the elimination of hindering causes which was made possible by the improvement of telecommunications, transportation, and technology. Some other periods of increased globalization occurred between 1945 and 1980, when there was a huge increase in international trade after World...
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...Business CSGB 6314 INTERNATIONAL BUSINESS MANAGEMENT SEMESTER 2, 2015/2016 ESSAY – Individual Assignment “Globalization brings more benefit than harm and should therefore be encouraged”. Discuss the statement. Submitted to: Prof. Dr. Mohd Nazari Ismail Prepared by: TAN WAN TENG, CGA150015 Date: 5th April 2016 TAN WAN TENG (CGA150015) CSGB 6314 International Business Management Globalization is not a new thing. Long time ago, people have been selling to and buying from each other places at far distances, for example, the Silk Road across Central Asia which was connected China and Europe during the Middle Ages. The globalization has been developing since 1980 and today it is easier for people and firms to communicate with other countries in the world. Globalization is the development of worldwide economy in which resources and products move fairly across national borders. It is also a process of integration among people, companies, and governments of different countries, which is usually driven by international trade, investment and supported by information technology. Both developing and developed countries are taking part actively in globalization process but both countries reacted differently in globalization. This process has the positive and negative effects on employment, culture, education and knowledge, market competition, economic, wealth and human physical well-being around the world. Employment and Poverty The outsourcing of services and...
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...Ethics and Social Responsibility in International Business 1 Ethics and Social Responsibility in International Business Ethics and Social Responsibility in International Business 2 Table of Contents Introduction ..................................................................................................................... 3 Defining Ethics and Social Responsibility ....................................................................... 3 Do Countries with Lower Ethical Views Attract Businesses? .......................................... 5 Can Ethical Business Practices be Applied Globally? ...................................................... 7 Which organizations are safe guarding ethical practices and is it working? ...................... 9 What are the Ethical and Social Responsibilities of Outsourcing? .................................. 12 What is Outsourcing? ................................................................................................ 13 Outsourcing is Beneficial........................................................................................... 15 What a Company Needs to Know Before Outsourcing .................................................. 17 What Are the Facts Regarding Child Labor?.................................................................. 18 Child Labor Global Statics......................................................................................... 18 Conclusion .................................................
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...INTRODUCTION Information Technology (IT) outsourcing is the contracting out of part or all of an organization's IT activities (Duarte & Snyder, 2006). Global Tech Corporation is an Information Technology (IT) outsourcing firm that provides help desk and customer support functions. Global Tech specializes in taking the work that other companies do not have the resources to complete on their own and helps them to get the jobs completed. Product deliverables include software consulting, website design and maintenance, e-mail servers, help desk and customer support functions. The company is headquartered in the United States, and has four branch offices in China, India, Philippines and Ireland. In order for Global Tech Corporation to function profitably all over the world the company must learn what the cultural barriers are in each country they have an office located, what leadership barriers there are and what leadership styles would work best in each country. The following will discuss how Global Tech has overcome cultural barriers, the organizational makeup, leadership styles, and production of the corporation. ORGANIZATIONAL DESCRIPTON When entering the corporate world in the 21st century it is important to realize that we are at an incredibly turbulent part in history. The world is experiencing natural disasters, wars, terrorism, approaching limits on natural resources. It is not an easy time to enter the global landscape and try to be a competitive company; however...
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...Ann Taylor Stores Corporation International Management Project Management 4900 – International Management and Globalization Executive Summary As an opportunity to apply concepts of international management, the following analysis evaluates issues and provides recommendations for the Ann Taylor Corporation. The retail apparel industry as a whole has rapid business cycles because fashion and consumer tastes changing constantly. The already fiercely competition for market share is amplified by the declining economy. Like many apparel companies, Ann Taylor creates the designs and outsources the manufacturing process. Ann Taylor sells women’s apparel and accessories and targets affluent career-minded women. One of the company’s strengths is brand equity. Every aspect of the Ann Taylor brand supports corporate social responsibility. Any association with a supplier or manufacturer that doesn’t support CSR and environmental sustainability will tarnish the Ann Taylor brand and risk losing brand loyal customers. With dependency on over 150 suppliers around the globe, communication and culture awareness is required of all Ann Taylor management. Lack of culture understanding will put business partnerships at risk. Although Ann Taylor doesn’t have ownership rights in China, understanding what drives and motivates Chinese workers will help Ann Taylor management collaborating more effectively with the managers of the outsourced manufacturing located in China. The need for strategic...
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...pursuit of internal efficiency 13 - 4 Problems in Implementing a Multidivisional Structure • Establishing the divisional-corporate authority relationship • Distortion of information • Competition for resources • Transfer pricing • Short-term R&D focus • Duplication of functional resources 13 - 5 Structure, Control, Culture, and Corporate-Level Strategy • Unrelated diversification – Easiest and cheapest strategy to manage – Allows corporate managers to evaluate divisional performance easily and accurately – Divisions have considerable autonomy – No integration among divisions is necessary 13 - 6 Structure, Control, Culture, and Corporate-Level Strategy (cont’d) • Vertical integration – More expensive than unrelated diversification – Multidivisional structure provides necessary controls to achieve benefits from the control of resource transfers – Must strike balance between centralized and decentralized control – Divisions must have input regarding resource transfer – Managed through a combination of corporate and divisional controls Copyright © Houghton Mifflin Company. All rights reserved. 13 - 7 Structure, Control, Culture, and Corporate-Level Strategy (cont’d) • Related diversification – Multidivisional...
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