Tutorial Feedback for Task 15 1. From the previous tasks in theme 3 identify 3 key international management issues from the point of view of Elecdyne

Examples here could include (from the various tasks):-

* Location of Production functions * Supply chain management * Taxation * Production cost * Innovation * Social Innovation:- * In health and education there are changes occurring, due to social innovations in social networking (use of internet to provide information that used to be delivered face to face e.g. online education and diagnosis websites), and also structural changes (e.g. in Higher Education worldwide there is a greater demand for online, distance and work based approaches which are increasing the need for appropriate electronic hardware and software, whilst in school education in the UK (specifically in England) parents can now set up schools outside local authority control. In health, in the UK (again in England specifically, GPs (doctors’ surgeries) are going to have much more control over spending (reducing that controlled by health boards), and there is also the issues of pushing more care out to the community, which means that health care workers will need to use communications and other mobile medical technologies to meet medical requirements. * Sustainability * Production efficiency - i.e. making the same product with fewer resources, including recycling opportunities, renewable energy opportunities, alternative materials opportunities (i.e. making the product out of renewables rather than oil based products for example. These are supply side (production-based) * Product Innovation - i.e. redesigning the product to do the same job but in a different way / using fewer resources- e.g. making the product smaller (e.g. netbooks v. laptops, i-pad v. computer, wireless printers v. wired printers), or more energy efficient, or to do multiple things (e.g. mobile phones that act as cameras, computers, combined printer/copier/ scanner etc. as well), or powered in different ways (e.g. solar powered watches), or (overlapping with production efficiency) using different materials (which may be lighter, or more eco-friendly), or uniformity (e.g. one charger for mobile phones, laptops, or in a different way (e.g. mp3s v. cd players) * Removing need to produce elements altogether (e.g. removing packaging, downloads to replace instructions, warrantees etc., downloads to replace cds, dvds etc.)). * Corporate Social Responsibility (Using Pyramid of CSR) * Economic (i.e. profitability, sales growth, market share)- e.g. linked to resource use (e.g.Recycling), profit maximisation versus other goals * Legal Issues- e.g. Working conditions (Health and Safety, equal rights, suitable working environment) * Ethical business (upstream activities – Fair Trade, using renewable resources, source from similarly ethical suppliers, no child labour, treating supplier equally; downstream activities – ethical marketing, treating customers fairly) * Philanthropy ( sponsorship, building links with local communities etc)

2. For these 3 issues, identify their economic, social and environmental aspects, and also the performance indicators by which you would measure their success in the areas of finance, market / customer / stakeholders, internal processes / operations, and development / learning.

The point of this is to highlight a number of key points, namely:- a) The fact that there is more than one issue highlights that companies may have more than one goal b) Illustrating that there are economic, social and environmental aspects indicates that companies may have different types of goal, in addition to the pure economic theory one of profit maximisation (and indeed, even if we just focus on economic goals then sales growth or market share may be additional goals for the firm) c) These goals may not always be mutually reinforcing and indeed could work against one another, requiring some way of assessing them, prioritising them and choosing between them. d) The fact that there are different types of goal also indicates that companies have stakeholder groups that will be answerable to in addition to the traditional economic theory-based one of shareholders. Governments, customers, suppliers, employees, etc. are all additional stakeholder groups e) Where the company is involved in a globalised industry in terms of production and /or consumption (as a firm like Elecdyne in the electronics industry is, increasingly) then these issues are multiplied. f) There will therefore be a range of variables with a need to develop variables that can be compared in some way, for example a. Economic variables – finance (profit), market (market share, sales growth), b. Social- customers (customer satisfaction), stakeholders (employee satisfaction, retention rates), development / learning (education, skills and training programmes) c. Environmental- internal processes (energy use, energy generation), operations (energy use, recycling)

3. Present these 3 issues using an appropriate analytical tool.

The point of this question is to highlight that an analytical tool is needed (e.g. some sort of balanced scorecard approach) that does at least some of the following;- I. Identifies the broad categories of importance (e,g, Economic, Environmental, Social) II. Identifies key measures within each of these categories a. Economic- e.g. profits, market share, sales growth b. Social- e.g. minimum wage, working hours, annual holidays c. Environmental- e.g. recycling, energy use, energy production III. Identifies specific variables that can be measured against d. Economic- e.g. profits as a % of turnover e. Social- e.g. wages as a % of the minimum wage (obviously must be more than 100% f. Environmental- e.g. recycling- % of product that can be recycled IV. Sets targets g. Economic- e.g. target is profits should be 5% of turnover h. Social- e.g. wages should be 200% of the minimum wage i. Environmental- e.g. aim to recycle 40% of the materials in our products V. Measures performance against these targets (i.e. how close to meeting or exceeding the targets) VI. Can also possibly set a range around the target so if go too far below then this highlights potential need for action VII. Can also consider potential need to prioritise targets j. Economic- e.g. profits are most important so will give them 60% of our total priority k. Social-minimum wage will be 10% of our priority l. Environmental- recycling will be 30% of our priority
Remember, there are a wide range of balanced scorecard approaches. This means a wide range of ways to present, but the fundamentals above should help focus your answer.