...Globalization is conducted in an effort to capture greater market share and open up new avenues for sales. Domestic and global marketing The organization that I am most familiar with that conducts domestic and global marketing is the Toyota Motor Corporation. Toyota is the world's largest automaker (The Associated Press, 2013). It runs its operations both at domestic and international levels and thus targets both domestic and international markets. Toyota is one of the top-selling brands in America and we are committed to continuous improvement in everything we do, along with breakthrough products for the future (Toyota Motor North America, Inc., 2013) The factors that impact on the marketing strategies of Toyota Motor Corporation are trade practices, demographics and physical infrastructure, cultural differences, social responsibilities and ethics, political systems and technology. These factors are challenges that effect the normal functioning of business organizations. Global economic interdependence and trade agreements Due to the influence of global economic interdependence Toyota has had to purchase parts and materials from other countries which have resulted in maximizing revenues to increase market shares in other regions to conduct business. Importing and exporting of goods and services highly contribute to global interdependence (BusinessDictionary.com,...
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...the passing of The Foreign Corrupt Practices Act (FCPA) in 1977, as bribery has become more common place in the business world with the current trend towards globalization. Despite efforts in the US trying to hold US companies at higher standards, bribery is not considered unethical around the world (De George, 1986). In many foreign countries, bribery is considered the standard medium for businesses transactions and is even allowed to be deducted as legitimate business expenses for accounting purposes, giving legitimacy to the practice. The US Department of Commerce has estimated that foreign companies have used bribes to beat out US companies out of more than $45 billion of international business between1994 to 2000 (Hodgetts, 2000). Bribery is usually defined as the “remuneration for the performance of an act that is inconsistent with the work contract or the nature of the work one has been hired to perform” (Shaw, 1989). Research suggests that bribery is more prevalent in developing countries; however, developed countries (including individualistic countries) also suffer from unethical issues (Shaw, 1989). Recently, American executives at Lindsey Manufacturing Company became the first to be convicted of foreign bribery in more than 34 years of the passing of FCPA (Fulbright & Jaworski LLP, May). It may appear on the surface that US companies are suffering a significant disadvantage when dealing in foreign countries; however, the fact that most foreign companies compete...
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...Multiculturalism and Diversity Management Shaketia Robinson July 20, 2012 Global Operation- IP1 Professor Castro In order for PPQ Parts to expand globally, multiculturalism and diversity management training is a necessity. Although there is vast opportunity in doing business abroad, it is important to understand all the pros and cons of these ventures. Many times businesses tend to focus on all the advantages of expansion, and tend to overlook that there are some issues that may arise as a result of the expansion. For example, the host country could face some issues due to the expansion. One article states: “some authorities in international marketing believe that unconscious references to a firm's domestic cultural values contribute to most international business problems” (Snavely, 2012). This stems from businesses not taking the time to truly learn the host country’s way of living; including the culture, language, religions, and general beliefs. It is vital that all strategies related to the business are tailored to all the host countries’ cultural factors. Some cultural barriers and diversity issues that are commonly encountered by international/multinational (MNC) and global organizations include: cross-cultural issues, language, corruption and bribery, and legal requirements. (Moore, 2012) Every culture has their own way of doing business that may be awkward to those that are use to their own traditions. Mannerisms and gestures may differ completely, whereas...
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...take place anywhere. It can also affect many people. It can take place in the court rooms of the United States to the sports that one watches every day. There are many laws against bribery to help stop this from happing, and if committed it is have very serious punishments depending on how the bribery took place. Bribery makes it difficult for decisions to be made honestly and fairly. One thing could be said for sure bribery is very much against the law. Bribery as described by the law is when someone improperly gives, accepts, offers or receives something of value for the purpose of influencing the action, views, decisions or public duties of an official, juror, or someone in a position of trust. Bribery is considered a criminal act and it is categorized as a white collar crime. Bribery can be offered or accepted with something promised, money, property, goods, or anything that has value to the other person. Bribery can also be and is associated with extortion. On the other hand one cannot confuse a gift as a bribe. A gift is not a bribe because when a gift is giving there are no intentions or talk about influencing the person the gift is being given to. There are many different types of bribery such as in sporting events where one can bribe a player or a decision making official such as an umpire. Another example of bribery is of a witness where the story of a witness or decision can be altered. A third example of bribery is of a public official such as a judge...
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...author’s name, and institution name) Environmental Factors Paper Ikea, one of the largest big box chain stores in the United States and abroad is affected by both global and domestic environmental factors. These factors, along with changes in technology, all impact and shape the organization and affect marketing decisions. This paper will identify environmental factors that shape the organization and impact marketing decisions. It will discuss the influence of global economic interdependence and the effect on trade practices and agreements. The paper will discuss the importance of demographics and physical infrastructure, analyzes cultural differences, and examines the importance of social responsibility. Finally, the paper will analyze the effect of political systems and its influence on international relations, the influence of the Foreign Corrupt Practices Act of 1977, and the influence of local, national and international legislation on Ikea’s business practices. There are many macro-economic factors that impact and shape marketing decisions at Ikea. These factors include economic, environmental, political, social, technological, legal and cultural (Unknown, 2007). These factors influence the decisions the organization makes, how it operates nationally and globally and how it will adjust to the factors to ensure the business will continue to operate smoothly. Politically, Ikea is impacted by local government and what products the local government believes that is best...
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...Wal-Mart Integrative Management Exercise Cohort A, Learning Group 8: Shareholder Perspective 1) Why have Wal-Mart shares outperformed the market during the recent crisis recession? a. Investors expect that more people will shop at Walmart and therefore buy more shares b. Compared to the market (when many other areas are down) c. They have a business that performs well when other businesses are down d. Increased unemployment, more people buying groceries at Walmart e. Article on performance compared to Costco in the recession i. http://www.theophania.net/acct5331.tp1.pdf 2) What are the key drivers of Walmart shareholder value going forward? Walmart faces significant headwinds as the #1 retailer in the world. At revenues of 460B annually they’ve operated on very small margins and massive scale while continuing to grow. Their continued growth of net income will be essential to driving shareholder value. This becomes more challenging using the same approach they have in the past. If they fail to maintain their net income they’ll struggle to continue increasing their dividends and share buybacks which have provided a significant amount of value back to shareholders (over 100b). Going forward, Walmart will have to leverage their strengths in new areas. An effective Ecommerce strategy that connects online with their strengths in offline could be a significant sources of additional revenue and income. A successful strategy...
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...nations hold entirely different standards of both law and ethics. In America, business ethics can be employed because, in general, the disagreement between what actions are ethical and what actions are unethical in a single culture will be lesser than the disagreement between two entirely different cultures with different values and cultural practices. As a result, one business might believe it is acting perfectly in accordance with international business ethics, while another would view that first business as acting in a completely unethical fashion. Many businesses adopt the policies of cultural relativism, in which they attempt to take on the business ethics exhibited by the nation in which the business is working a particular deal, as opposed to attempting to carry any of their own business ethics across cultural boundaries. However, this practice is not without its own flaws. For more information on the basic issues and problems facing any attempts to form coherent international business ethics codes, click the link. One of the biggest problems facing any international business code of ethics is that standards for employment practices are not constant...
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...The Foreign Corrupt Practices Act is a federal law that prohibits companies from paying bribes to foreign political figures and government officials for the purpose of obtaining business. FCPA has become a major compliance focus recently, especially the past three years. The FCPA has two sets of provisions, the accounting provision, enforced by the Securities and Exchange Commission, and the anti-bribery provisions, enforced by the U.S. Department of Justice. In the act, there are three types of entities prohibited from making improper payments: issuers, domestic concerns, foreign nationals and businesses. In my opinion, FCPA is working effectively within the U.S.. In 2009, more than three times as many FCPA cases were brought in 2009 comparing with those in 2005, The reason is because the government has been stepping up EFPA enforcement actions more than ever. Moreover, the Securities and Exchange Commission has also created a dedicated FCPA unit, and added attorneys and supervisors. Throughout developing a FCPA due diligence process on third parties and intermediaries, the organizations can create more economic and potential benefits. For those U.S. companies doing business abroad, there are something they need to think about. First, the cost imposed by the FCPA is high if conducting the business in a country with high corruption level. In the other hand, the FCPA may create a uneven playing field somehow for American businesses and the foreign competitors would persistently...
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...12 Dec, 2012, 03.00PM IST, ET Lobbying disclosure doesn't reflect improper conduct in India: Bharti Walmart "This disclosure has nothing to do with political or governmental contacts with Indian Government officials," a Bharti Walmart Spokesperson said in a statement. BSE () Vol: shares traded NSE () Vol: shares traded Prices|Financials|Company Info|Reports NEW DELHI: Bharti Walmart, the Indian arm of the US retail giant Walmart, on Wednesday said the allegation that routine US lobbying disclosures reflects improper conduct on its part in India are false. "This disclosure has nothing to do with political or governmental contacts with Indian Government officials," a Bharti Walmart Spokesperson said in a statement. The disclosures to US regulators showed that company's business interests in India was discussed with American officials along with 50 or more other topics during a three month period, it added "The allegation that a routine U S lobbying disclosure reflects improper conduct on our part in India, is false, it said. Under the US law, on a quarterly basis, all companies which meet certain time and expenses thresholds, are required to disclose issues and expenditure incurred in connection with contacts with the United States Government, including staffing cost, association dues, and payments to consultants, it said. The company said all organisations which expend more than USD 11,500 annually on lobbying activities and employ at least...
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...governing the operations of international corporations. The Malaysian system poses a socio-ethical dilemma especially with the giving and receipts of bribes by appointed employees as well as the exchange of favors (or request thereof) between government officials and businesses (Inkpen, 2010). The legalities of such operational antecedents can have adverse international legal implications from enacted laws such as the UK Bribery Act and US FCPA ("Arnold & Porter Advisory," March 2012) on organizations involved. Analysis Major social, ethical or legal challenges As a foreign company, Jextra faces a host of social, ethical and legal challenges in its operations. The social culture of Malaysia does not have a strict demarcation between business and social relations. Thus, employees like Arif Alam, a Category Manager (CM) of Jextra Store, combine family relations and employment together by enlisting his father-in-law (allegedly) as agent. The collectivist nature of the society also makes the other employees who might have a fair knowledge of the corrupt practices of the CMs reluctant to come forward. The same cultural view that regards business and society as...
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...to do business in Germany, it is important to understand their business ethics and laws. By understanding the law at hand, it would give Precision Part Inc. a better understanding on how Germany conduct business and also to make sure the company is ethical. A few international countries believe in corruption. Corruption can consist of bribery and nepotism. Bribery is more common in underdeveloped countries that are looking for additional income to bring in. Bribes are expected in many countries, the United States’ 1977 Foreign Corrupt Practices Act prohibits payments made to foreign government officials with the aim of gaining or maintaining business (Here Comes the Bribe). The Foreign Corrupt Practices Act was updated in 1998 after bribery was banned from Germany. Now the Foreign Corrupt Practices Act applies to foreign firms and persons who cause an act in making such a corrupt payment within the United States territory (Foreign Corrupt Practices Act). Bribery is another way of saying extorting money from someone. Bribery is when money or something value is promised to, given to, or taken form an individual or company in attempt to sway someone decisions. Nepotism is more of a government corruption. Government will use their powers for dishonest gains or illegal means. German engineering conglomerate Siemens, rocked by the worst bribery scandal in the country’s history, they won a court ruling reversing a $56 million fine against the Munich-based company (In Germany...
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...product such as geography, customer needs, demographics, and methods of distribution. To be able to capture a better marker share globalization is put in place so that new marketing shares can open up new ventures for sales. Domestic and global marketing The organization that I am most familiar with that conducts domestic and global marketing is the Toyota Motor Corporation. Toyota is the world's largest automaker (The Associated Press, 2013). Toyota is one of the top-selling brands in America and we are committed to continuous improvement in everything we do, along with breakthrough products for the future (Toyota Motor North America, Inc., 2013) The factors that impact on the marketing strategies of Toyota Motor Corporation are trade practices, demographics and physical infrastructure, cultural differences, social responsibilities and ethics, political systems and technology. These factors are challenges that effect the normal functioning of business organizations. Global economic interdependence and trade agreements Due to the influence of global economic interdependence Toyota has had to purchase parts and materials from other countries which have resulted in maximizing revenues to increase market shares in other regions to conduct business. Importing and exporting of goods and services highly contribute to global interdependence (BusinessDictionary.com, 2013). A trade agreement is a contract/agreement/ between two or more nations that outlines how they will work together...
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...Amazon has a no bribery policy. Their suppliers cannot offer or accept bribes to gain an unfair advantage over other suppliers. Suppliers cannot induce any employee to violet the code of business conduct and ethics. According to Amazon.com Help: Supply Chain Standards, “Suppliers must comply with applicable anti-corruption laws, including the United States Foreign Corrupt Practices Act, and not offer anything of value, either directly or indirectly, to government officials in order to obtain or retain business.” Amazon suppliers cannot make payments to government officials as a form of bribe and they cannot do it through a third party as well. Anyone doing business with Amazon must follow their strict policies or they will not be allowed to do business with Amazon. Amazon also has a whistleblowers protection in place to protect anyone who turns in someone for an ethical violation or workplace grievance. Any issues that are brought up must be kept confidential for the protection of the associate and to encourage associates to come forward. If someone comes forward, there is also in place a policy that does not allow retaliation. The associate cannot be made to feel like they are being punished for bring issues up to supervisors. Amazon has a program in place to audit their suppliers to ensure they have the same high standards and ethical commitment to the company. According to Amazon.com Help: Supply Chain Standards, “We require suppliers in our retail manufacturing...
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...Aluminium Bahrain, or Alba. (Read more: Alcoa signs supply deal worth $110 million with Airbus) "As the beneficiary of a long-running bribery scheme perpetrated by a closely controlled subsidiary, Alcoa is liable and must be held responsible," George Canellos, co-director of the SEC's enforcement division, said in a prepared statement. Mario Laporta | AFP | Getty Images Alcoa previously said it was in settlement talks with the authorities. It settled a civil lawsuit with Alba in 2012. "There is no allegation in the filings by the DOJ and there is no finding by the SEC that anyone at Alcoa Inc knowingly engaged in the conduct at issue," Alcoa said in a release. Charges were laid under the Foreign Corrupt Practices Act, a U.S. law that prohibits bribery of foreign officials. The Department of Justice settled with Alcoa World Alumina, part of a joint venture with Australia's Alumina Ltd. Alcoa owns 60 percent of the joint venture. The SEC settlement is with Alcoa Inc. (Read more: Rolls-Royce says SFO to investigate bribery allegations) Bribery allegations involving Alba have played out in several countries and more than five years. In one of Britain's biggest corruption prosecutions in years, a British-Canadian businessman, Victor Dahdaleh, was charged in Britain with...
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...question this paper addresses. The Securities Acts of 1933 and 1934, the Foreign Corrupt Practices Act of 1977, along with the Sarbanes Oxley Act will be highlighted and discussed. The Securities Act of 1933 was the first major piece of federal legislation regarding the sale of securities. Prior to this legislation, the sale of securities was primarily governed by state laws; however, the market crash of 1929 raised some serious questions about the effectiveness of how the markets were being governed. Because of the turmoil surrounding the investing community at this time, the federal government had to bring back stability and investor confidence in the overall system. In general, the legislation was enacted as the need for more information within and about the securities markets was acknowledged. The legislation addressed the need for better disclosure by requiring companies to register with the Securities and Exchange Commission. Registration ensures companies provide the SEC and potential investors with all relevant information by means of the prospectus and registration statement. Under this act, the seller of a security is liable for making any material misstatement or omission, either oral or written, in connection with the offer or sale of a security. The Securities Act of 1934 was enacted to ensure investors received ongoing information about public companies with publicly traded stock. Under this act, an issuer must register with the SEC if 1) it...
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