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An Evaluation of Personality-Job fit at ZANTECH Limited

TABLE OF CONTENTS PAGE # 1.0 INTRODUCTION ………………………………………………………………………..1 1.1 RATIONALE … 1.2 RESEARCH AIM 1.3 RESEARCH QUESTION ……… 1.4 RESEARCH OBJECTIVES 2.0 THEORETICAL ANALYSIS ……
2.1 ACADEMIC THEORY, CONCEPTS AND MODELS

2.2 CURRENT STATE OF RESEARCH

3.0 RESEARCH METHODOLOGY
3.1.1 TYPE OF INVESTIGATION 3.1.2 DATA COLLECTION METHOD 3.1.3 SAMPLE 3.1.4 ETHICAL ISSUES 3.1.5 DATA ANALYSIS PLAN 3.1.6 TIMELINE (GANTT CHART) 3.1.7 RESOURCES
4.0. CONCLUSION
4.1. APPENDIX 5.0. REFERENCES 5.1 BIBLIOGRAPHY
TITLE: AN EVALUATION OF PERSONALITY- JOB FIT AT ZANTECH Limited

1.0 INTRODUCTION Choosing the right person for a job, or for promotion, is a critical undertaking by any organization, for incorrect employee selections lead to frustrated employees and poor on-the-job performance. Personality-Job fit theory is a widely used selection tool that assists organizations in employee selection. It is widely believed that personality is related to job performance and career success.
According to the theorist (Holland, 1985) cited in (Robbins and Judge, 2013) on Personality-Job fit theory, “a theory that identifies six personality types and proposes that the fit between personality type and occupational environment determines satisfaction and turnover.” Also according to Holland, quoted by (Arnold, et al., 2010) Holland’s main theoretical propositions, states that “People find environments satisfying when environmental patterns resemble their own personality patterns = Congruence. It encourages stability of behaviour and better work performance.” By the use of the personality-job fit selection tool, Zantech Limited will embark upon restructuring its work-force to ensure correct placement of existing/new employees within the organization, which will contribute to greater levels of customer satisfaction, loyalty and profitability.
The researcher will evaluate the problems of the company using the personality-job fit theory by research methodologies used during this course of study.

1.1 RATIONALE
.The research will examine the factors affecting the growth of the company and critically assess how these factors can be improved upon. The researcher‘s plan is to use this study to assist Zantech in achieving competitive advantage through the use of Personality- job fit theory in their employee selection who will then contribute to greater levels of customer loyalty, profitability and increased market share. The company will also be able to identify areas for potential future development, gaining extensive knowledge about their customers’ needs and wants. According to (Belt and Giles, 2009) “A general approach to managing organizations that aims to stimulate more effective employee involvement and commitment in order to achieve high levels of performance.” The study will also assist the researcher’s academic studies.

1.2 RESEARCH AIM
To integrate the findings of the research on Personality-Job fit theory in order to determine how effectively it will benefit Zantech in achieving a competitive advantage over its competitors that will contribute positively to market expansion, greater customer loyalty and increased profits.

1.3 RESEARCH QUESTION
How can Personality-Job Fit be used to affect customer loyalty, profitability and increased market share?
1.4 RESEARCH OBJECTIVES 1. To analyse Personality-Job Fit at Zantech Limited. 2. To identify the strength and weaknesses from personality-job fit data. 3. To examine best practice of Personality-Job Fit theory in comparison with Zantech Limited policy. 4. To make conclusions and recommendations.

2.0 THEORETICAL ANALYSIS
Personality is the Sum total of ways in which an individual reacts and interacts with others. Person-Job fit can be defined as the degree to which person’s skills, knowledge, abilities and other characteristics match the job demands and Person-Organization fit is the degree to which a person’s values, personality, goals and other characteristics match those of the organization. Managing personalities is all about effective psychological assessments, basically it is the relationship between organization and employee is a psychological one, career prospects, guidance effect is perceptibly influential in nature (Atkinson, C., 2002). Vol.1 Issu-2 July –December 2013
V idyaniketan Journal of Management and Research

The focus of Personality-Job fit theory is to examine if a person’s suitability via skills-set, characteristics and goals match those of the organization to gain competitive advantage. This research will focus on the importance of personality-job fit in the organization, analyse personality types in general in contrast with the employee selection process at Zantech Limited.

2 .1 ANALYSIS OF PERSONALITY-JOB FIT THEORY
Holland (1985) defines Personality-Job Fit theory as a theory that identifies six personality types and proposes that the fit between personality type and occupational environment determines satisfaction and turnover (Robbins & Judge, 2013).
During the past decade or so, several authors have recognized that the practitioner in the personnel selection and the scientific wings of discipline has divided and is moving more and more away from each other (Anderson, Herriot &Hodgkinson, 2001; Dunnette, 1990; Hodgkinson, Herriot & Anderson, 2001; Sackett, 1994). One example of this kind of a trend is that the American Uniform Guidelines on Employee Selection Procedures (1978), Harvey (1991) and Harvey and Wilson (2000) have recommended that the workers traits and abilities should be left out of the selection processes. According to them, the personal traits do not meet the requirements of verifiable and replicable job analysis data.

A survey conducted of recruiters in 2003 indicated that 30% of American companies used personality tests to screen job applicants (Heller, 2005). Integrity tests, a particular type of personality assessment, are given to as many as five million job applicants a year (a number that has been growing by 20% a year), and are reported used by 20% of the members of the Society of Human Resource Management (Heller, 2005).

On the other hand, criticisms of personality testing are often cited in many of the same survey reports, most often with little analysis or understanding of the technical issues or research evidence (Handler, 2005). For example, the use of the MMPI is often cited for its inability to predict job performance and potential for litigation if used for such purposes (Heller, 2005; Paul, 2004), despite the fact that this is well known among personality researchers who provide clear guidelines for the proper choice and use of personality tests for employee selection (Daniel, 2005).

Optimization of person-job fit has been an overarching theme of selection frameworks (Schneider 1987) and vocational-choice models (Holland 1976). By following selection and placement strategies that optimize person-job fit, an organization can populate its workforce with motivated and committed employees.
Personality is a potentially important predictor of work behaviour. In job interviews, companies try to assess a candidate’s personality and the potential for a good match, but interviews are only as good as the people conducting them. In fact, interviewers are not particularly good at detecting the best trait that predicts performance: conscientiousness. Barrick, M. R., Patton, G. K., & Haugland, S. N.(2000). Accuracy of interviewer judgments of job applicant personality traits. Personnel Psychology, 53, 925–951.

A general consensus in research on personality has emerged that all normal personality traits can be parsimoniously described by five broad traits, termed the ‘Big Five’ model
Of personality (agreeableness, conscientiousness, emotional resilience, extraversion and openness), which has been found to generalize across a wide range of social-cultural settings (McCrae and Allik 2002) and validated against many different criteria, including job performance (Salgado 1997), job satisfaction (Judge, Heller, and Mount 2002), career success (Judge et al. 1999), life satisfaction (DeNeve and Cooper 1998) and academic performance (Lounsbury, Sundstrom, et al. 2003).

PERCEPTION OF FAIRNESS IN PERSONALITY-JOB FIT ASSESSMENT
Individuals bring a number of differences to work. They have a variety of personalities, values, and attitudes. When they enter into organizations, their stable or transient characteristics affect how they behave and perform. Moreover, companies hire people with the expectation that they have certain knowledge, skills, abilities, personalities, and values. Employee selection should include specific measurable objectives which accounts for the data used in the Personality-Job fit process, to support the organizational goals and strategies.
In Personality-Job fit assessment, there is a perceived conception of fairness within the system which is defined as the concept that is held in accordance with what is expected and in a sense entitled to. Fairness is a key predictor of employees’ affective states and behaviours. When employees feel that they are being treated fairly, they reciprocate through satisfaction and commitment (Adams, 1965; Levanthal, 1980; Bies and Moag, 1986).

INTRODUCTION TO TYPES OF PERSONALITY-JOB FIT THEORIES
There are different types of theories that support personality traits and their relevance to job performance and commitment to related tasks. Here we look at three, namely, The Big Five Personality Theory, Myers-Brigg Type Indicator (MBTI) and The Holland Codes. * The Big Five Theory
“Big Five” personality dimensions or personality traits have been gathered through the result of decades’ worth of psychological research into personality. While they don’t capture the idiosyncrasies of everyone’s personality, it is a theoretical framework in which to understand general components of our personality that seem to be the most important in our social and interpersonal interactions with others. Decades of research on personality has uncovered five broad dimensions of personality. These so-called Big Five dimensions are called: * Extraversion (your level of sociability and enthusiasm) * Agreeableness (your level of friendliness and kindness) * Conscientiousness (your level of organization and work ethic) * Emotional Stability (your level of calmness and tranquillity) * Intellect (your level of creativity and curiosity)
The Big Five was originally derived in the 1970's by two independent research teams -- Paul Costa and Robert McCrae (at the National Institutes of Health), and Warren Norman (at the University of Michigan)/Lewis Goldberg (at the University of Oregon).

Myers-Briggs Type Indicator
Knowing your personality type, as measured through the Myers-Briggs Type Indicator® instrument, can help you with career planning at every stage: from your choices of subjects and majors in school to choosing your first career, to advancing in your organization or changing careers later in life. Rowan Bayne Ph.D. in his latest book analyses evidence from a variety of sources in a sleuth like investigation of the central aspects of Myers Briggs Type Indicator® (MBTI) theory and practice, which supports the theory of type.

* The Holland Codes
The Holland Codes is a system to classify jobs into job categories, interest clusters, or work personality environments. In the Holland Model, these categories represent work personalities. Huczynski & Buchanan (2010) defines personality as the psychological qualities that influence an individual's characteristic behaviour patterns, in a stable and distinctive manner.

2.2 CURRENT STATE OF RESEARCH
Personality Job-Fit Theory is growing in acceptance by organisations as an effective and highly recommended selection tool to be used at recruitment stage or the restructuring of work force. This is necessary to give organisations insight on the personality type, strengths and weaknesses of each candidate/employee to determine a satisfactory job fit. If organisations fail to recognise what variables are controlled by employees, then accurate selections cannot be made. In order to exercise effective personality-job fit selections, the recruiters must distinguish between job-requirements and candidate/employee personality to determine job-fit. Hence, it is imperative that the researcher focuses on the current study and key areas of the theoretical analysis.

3.0 RESEARCH METHODOLOGY
Theoretical Approach involves the use of theory in management research, allowing for the interpretation of the research data. Theory aids the understanding of research data and research data can influence theory. According to Collis & Hussey (2009), There exist various types of research philosophy, however, the two main paradigms existing in research, are defined as Positivism and Interpretivism.

3.1.1TYPE OF INVESTIGATION
POSITIVISM APPROACH
Because positivists believe reality is independent of us, they believe that the act of investigating social reality has no effect on that reality (Creswell, 2014) Cited in ‘Business Research, Collis, J and Hussey, R., p. 44.’

Table 1: Advantages and Disadvantages of Positivism ADVANTAGES | DISADVANTAGES | Deductive | Uses large samples | Quantitative | Concerned with hypothesis testing | Objective | The location is artificial | Scientific | Experimental | Traditional | Validity is low | Reliability is high | Generalizes from sample to population | Data is highly specific and precise | |

INTERPRETIVISM APPROACH
Interpretivism is underpinned by the belief that social reality is not objective but highly subjective because it is shaped by our perceptions. The researcher interacts with that being researched because it is impossible to separate what exists in the social world from what is in the researcher’s mind (Smith, 1983; Creswell 2014). Therefore, the act of investigating social reality has an effect on it, cited in Collis, J and Hussey, R. Business Research, p. 45

Table 2: Advantages and Disadvantages of Interpretivism ADVANTAGES | DISADVANTAGES | Inductive | Uses small samples | Qualitative | Concerned with building theories | Humanistic | Data is rich and subjective | Interpretive | Reliability is low | Location is natural | Generalizing from one setting to another | Validity is high | |

RESEARCH DESIGN
Research design is a blueprint for fulfilling the objectives and answering questions of the research. Selection of design can be made difficult by the large variety of available techniques, procedures, methods, protocols and sampling plans. The results are designed to give answers of exploratory, explanatory or of a descriptive nature from using qualitative or quantitative data collection and analysis procedures.
The research design should include the use of theory which may or may not be explicit in the design of the research but can be done in the presentation of the findings and conclusions. Therefore, inductive and deductive approach should be used.
Inductive research is a study in which theory developed from the observation of empirical reality allows the research to be built around collective data while deductive research is a study in which conceptual and theoretical instructions are developed and tested by empirical testing.

QUANTITATIVE DATA COLLECTION
Quantitative research as argued by Davies (2000) characteristically implies large samples and uses techniques such as structured surveys questioning that can be numerically and statistically analysed. (Davies. D, 2000, p. 265).

QUALITATIVE DATA COLLECTION
According to Van Maanen (1979) it is ‘ an array of interpretive techniques which seek to describe, decode, translate and otherwise come to terms with the meaning, not the frequency, of certain more or less naturally occurring phenomena in the social world' (Van Maanen 1979: 520; Cassell & Symon 1999).

After identifying the different approaches the researcher has opted to use both positivism and interpretivism paradigms consistent with this study, qualitative approach along with the interpretivism theoretical approach. The deductive approach will allow the development of a hypothesis and quantitative data to test the theory. Inductive approach will allow for observation and collective data in a qualitative manner.

RESEARCH STRATEGY
There are a number of available data collection strategies that can be employed, which include case studies, surveys, action research, experiments, grounded theories, ethnography and archival research. However, there are two types of survey strategies: * Descriptive Survey: concerned with identifying and counting frequencies of specific populations either at one point in time or at various times for comparison. * Analytical Survey: The intention is to determine whether there is any relationship between different variables.
Survey research is a frequently used tool for data collection, employing questionnaires, interviews and structure. It allows for the collection of information from large amounts of information from sizeable populations in a highly economical way.

3.1.2 DATA COLLECTION METHOD
PRIMARY DATA COLLECTION
This would be used to form the basis of the analysis which will solve the use of questionnaires and observations. In the Personality-Job fit assessment, the use of primary data would be used along with analytical survey strategy. The researcher intends to distribute questionnaires among organisations along with telephone calls and visits to the companies involved.
3.1.3 Table 3: Advantages and Disadvantages of Primary Data Collection ADVANTAGES | DISADVANTAGES | Information collected is current | Time consuming | Data would be reliable | Expensive to collect | Customized to the needs of the research question | Raw data being used | Maintains confidentiality | Sample size not sufficient |

SECONDARY COLLECTION DATA
Secondary data is data already collected and readily available from other sources. Such data is cheaper and more quickly obtainable than primary data and may also be available when primary data cannot be obtained at all.
Table 4: Advantages and Disadvantages of Secondary Data Collection ADVANTAGES | DISADVANTAGES | It is economical. It saves efforts and expenses. | Data may have been collected for other purposes and may not be current. | It is time saving. | Data may be outdated. | It helps to make primary data collection more specific since with the help of secondary data, we are able to make out the gaps and deficiencies and what additional information is to be collected. | Initial purpose may affect how the data is presented. | It helps to improve the understanding of the problem. | Data may not be specific to researcher’s needs. | It provides a basis for comparison for the data that is collected by the researcher. | Access may be difficult and costly. |

3.1.4 ETHICAL ISSUES
Ethics is the appropriateness of behaviour in relation to the rights of those who become the subject of your work or are affected by it. “Ethics is the norm or standards of behaviour that guide moral choices about our behaviour and our relationships with others” as posited by Cooper and Schindler (2008 p.34) the researcher will consider the necessary ethical values throughout this current study.

3.1.5 DATA ANALYSIS PLAN The researcher will collect both quantitative and qualitative data, better known as methodological triangulation, and intends to express that data on the Statistical Package for Social Sciences (SPSS), in the form of spreadsheets so as to quickly and accurately present the results in the form of tables, graphs and charts. The primary source of data, questionnaires, would need to be sorted by relevant departments before it is distributed to companies. As such, a simple random sampling format will be used to gain unbiased information from the sample population and so the researcher can accurately and efficiently represent the views of the given population.

3.1.6 TIMELINE (GANTT CHART) – refer to APPENDIX p. 3.1.7 RESOURCES
Table 5: RESOURCES TYPE | INFORMATION | USE | EXAMPLES | Academic Journal | A collection of articles usually written by scholars in an academic or professional field. An editorial board reviews articles to decide whether they should be accepted. Articles in journals can cover very specific topics or narrow fields of research. | to find out what has been studied on the topic to find bibliographies that point to other relevant researchto aid the researcher with the current study | Journal of phenomenological psychologyJournal of Interdisciplinary Studies | Web site | The Web allows you to access most types of information on the Internet through a browser. One of the main features of the Web is the ability to quickly link to other related information. The Web contains information beyond plain text, including sounds, images, and video. | to find current informationto find both expert and popular opinions | www2.hull.ac.ukwww.rougecc.eduwww.lib.vt.eduwww.myersbrigg.orgwww.academia.edu | Books | Books cover virtually any topic, fact or fiction. For research purposes, you will probably be looking for books that synthesize all the information on one topic to support a particular argument or thesis. | when looking for lots of information on a topicto put your topic in context with other important issuesto find historical informationto find summaries of research to support an argument | Cooper, D. R. and Schindler, P. S., 2006. Business Research Methods. 9th ed. New York: McGraw-Hill Irwin.Appleby, Robert C., 1994. Modern Business Administration. 6th ed. Essex: Pearson Education Limited.Collis, J. and Hussey, R., 2014. Business Research. 4th ed. New York: Palgrave Macmillan Higher Education. | Expert opinions | These can be derived from theorists Lecturers’ notesOther verified sources | To provide the conceptual frame work and valuable ideas for researcher’s areas of study | ( Holland,1985) TheoristAnglia Ruskin University (ARU) Sam LtdBooks/Journals/Articles | Personal Experiences | Searching the internet for hours on end about Module topicReading related textsDocumenting pages of informationDecided to quit many times but never gave up | To gain a broader perspective on my researched responsesText helped me to put the framework in placeSecondary information was helpfulI used my determination to overcome feelings of inadequacy | Other Author’s work were highly instrumental in me putting the report togetherI was able to reference the information from text, authors and other sourcesSecondary information is the reason why I did not leave my laptopCrying created a determination that I took advantage of |
4.0 CONCLUSION
Research methodology is one of the most important chapters a research project rests on. It supplies the researcher with a valuable framework and guidelines for the entire research process. Therefore, in this chapter the researcher reviewed a number of theories with an attempt to show the relationship that exist between them. Although, it is difficult to deal with abstract ideas, establishing a logical order of these concepts and philosophies enabled the researcher to give the present study the appropriate structure. So, the study is first shaped by two main paradigms ‘positivism & interpretivism' which obey to the qualitative and quantitative method. While, the chosen design necessitates three approaches. Additionally, the logic behind the research process is ‘deductive' and is supported by strategies that should enable the researcher to satisfy the research questions and objectives.

APPENDIX

REFERENCE LIST
Appleby, Robert C., 1994. Modern Business Administration. 6th ed. Essex: Pearson Education Limited.
Collis, J. and Hussey, R., 2014. Business Research. 4th ed. New York: Palgrave Macmillan Higher Education.
Websites
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BIBLIOGRAPHY
Books
Cooper, D. R. and Schindler, P. S., 2006. Business Research Methods. 9th ed. New York: McGraw-Hill Irwin.
Armstrong, M., 2015. Armstrong’s Handbook of Performance Management: An evidence based guide to delivering high performance. 5th ed. London: United Kingdom.
Cole, G. A., 2004. Management Theory and Practice. 6th ed. BookPower

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...International Business ( Semester 2, 2014) * Topic 1: Context * Globalization: There is no agreed or consistent definition for globalization but the key features including: * Everything and everyone equal * Intensive and rapid flows cross border flows (eg product, finance) * Not just economic but social, culture also. * Implication for nation states (countries)- a loss on power for the countries on politically as well as economically. * “ Globalization is about growing mobility across frontiers- mobility of goods and commodities, mobility of information and communications products and services, and mobility of people” ( Robins 2000). * Globalization has become a leading concept in doing business during last few decades, there are various aspects of globalization that influencing in doing business such as Competition, exchange of technology, knowledge/information transfer. * Competition: there is increase in competition. It can relate to product, service cost, price, target market, technological adaptation, quick response, quick production by companies. Company needs to focus on production with less cost to sell cheaper in order to increase its market share. On the other hand, customers also have a large multitude of choices in the markets and it affects their behavior: they want to acquire goods and services quickly and in more efficient way than before with high expectation in quality and low prices. * Exchange of...

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International Business

...Task 1. International Business is basically covers all commercial transactions (private and governmental, sales, investment, logistics and transportation) and it usually takes place in more than one region, countries and nations that go past political limits. A private company may take part in such transaction for profit or even government undertake them for profit and political reasons. It refers to all activities which involve a cross border transaction of goods, services and resources between two or more nations. There’s also transaction of economic resources and it includes capital, skills, people, etc. for international production of physical goods and even services such as finance, banking, insurance, construction, etc. Examples of companies that operate internationally are Royal Dutch Shell, McDonalds, Subways, General Motors, Ford Motor Company, Samsung, LG, Sony, ExxonMobil and BP. These are all well-known MNCs and it includes fast food companies such as McDonald's and Subways, vehicle manufacturers such as General Motors, Ford Motor Company and Toyota, consumer electronics companies like Samsung, LG and Sony, and energy companies such as ExxonMobil, Shell and BP. Most of the largest corporations operate in multiple national markets. 2. Nike, Inc. is an American multinational corporation and it sells footwear, apparel, equipment, accessories and services. It was founded on January 25th, 1964 as Blue Ribbon Sports by Bill Powerman and Phil Knight and officially...

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International Business

...expand and franchise there. With faster communication, transportation and financial flows, the world is rapidly shrinking. International trade is booming. Imports of goods and services now account for 24% of gross domestic product worldwide. However, sometimes corporations fail to understand the culture of countries that they target as marketing opportunities, therefore not being able to market their brand successfully. Culture is defined simply as the learned distinctive way of life of a society. Each country has its own traditions, cultural norms and taboos. When designing global marketing strategies, companies must understand how culture affects consumer reactions in each of its international markets. In turn, they must also understand how their strategies affect culture. In the global marketplace, extension of products and services into foreign markets often faces unanticipated cross-cultural challenges involving consumer cultural behavior. For example: in Japan, “Diet Coke” was renamed “Coke Light” after the firm learned that the word “diet” carried an embarrassing connotation. A “blunder” is a careless mistake usually caused by a person’s ignorance, poor judgment or confusion. International marketing blunders represent avoidable mistakes made by companies in foreign markets. Many types of blunders result from ignorance of culture. If international marketers are misinformed about the cultural characteristics of a foreign market they may stumble into blunders. A simple cultural...

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International Business

...Petro Danyliv Professor Kathy Bowen Principles of Management Due April 2, 2014 International Business Nowadays international business and globalization became very popular and gained much more importance for each and every business company. Based on the quality research and the detailed analysis, this paper would come with the conclusion to show the advantages of globalization and also how globalization and international business can be a big factor in developing world’s economy. Term of globalization can represent and mean a lot of different things, but mainly globalization/international business are known for their flows of trade, finances and factors of production across the border, and transportation with effective communications set up. Globalization is responsible to make our world a “global village”. Globalization can develop strong international bonds not just between specific groups of countries but across a wide global network in which factors of production and also finished goods can move freely. The era of globalization in which we are living now came to existence not only because of Internet, but also because of changes in the institutional environment. Today globalization is a very popular and acceptable term. Globalization is a continuous and constant debate that society should face. The nature of globalization is somewhat specific and therefore understanding the meaning of it is crucial, so any praise or critics of globalization is purely justified...

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International Business

...Kaydeon Burnett Professor Jim McCarty December 14, 2015 Final Paper “International Business is any commercial transaction that crosses the border of two or more nations.” This class of international business has truly been a great deal of help to me in pursuing my degree in Business Management. When I first enrolled in this class I was a bit skeptical about how I would learn such a potentially difficult subject without being in a classroom, however I truly learned a lot. With an international business it has various key learning concepts including entry to new markets, trade and foreign direct investments, politics, economics and environmental variables of culture. Each of these concepts carries a different definition as well as the same intent. Globalization by definition means a “trend toward greater economic, cultural, political, and technological independence among national institutions and economies.” (p 7) Within globalization it is very important that the particular company that plans to expand beyond the borders of their home office must understand that going global is not just looking at the global aspext and not taking the time to properly invest money, time, and strategy. For example when Apple began to go global they took the time that was necessary to properly strategize on how to get their product from beyond the four walls of the Apple brand. Globalization has good parts as well as bad parts. The good part about globalization is that the particular...

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International Business

...PART 1 GLOBAL BUSINESS ENVIRONMENT CHAPTER ONE Globalization Learning Objectives After studying this chapter, you should be able to 1. Describe the process of globalization and how it affects markets and production. 2. Identify the two forces causing globalization to increase. 3. Summarize the evidence for each main argument in the globalization debate. 4. Identify the types of companies that participate in international business. 5. Describe the global business environment and identify its four main elements. A LOOK AT THIS CHAPTER This chapter defines the scope of international business and introduces us to some of its most important topics. We begin by presenting globalization—describing its influence on markets and production and the forces behind its growth. Each main argument in the debate over globalization is also analyzed in detail. We then identify the key players in international business today. This chapter closes with a model that depicts international business as occurring within an integrated global business environment. A LOOK AHEAD Part 2, encompassing Chapters 2, 3, and 4, introduces us to different national business environments. Chapter 2 describes important cultural differences among nations. Chapter 3 examines different political and legal systems. And Chapter 4 presents the world’s various economic systems and issues surrounding economic development. 24 Emirates’ Global Impact DUBAI, United Arab Emirates—The...

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International Business

...International trade is the exchange of capital, goods, and services across international borders or territories.[1] In most countries, such trade represents a significant share of gross domestic product (GDP). While international trade has been present throughout much of history (see Silk Road, Amber Road), its economic, social, and political importance has been on the rise in recent centuries. Industrialization, advanced transportation, globalization, multinational corporations, and outsourcing are all having a major impact on the international trade system. Increasing international trade is crucial to the continuance of globalization. Without international trade, nations would be limited to the goods and services produced within their own borders. International trade is, in principle, not different from domestic trade as the motivation and the behavior of parties involved in a trade do not change fundamentally regardless of whether trade is across a border or not. The main difference is that international trade is typically more costly than domestic trade. The reason is that a border typically imposes additional costs such as tariffs, time costs due to border delays and costs associated with country differences such as language, the legal system or culture. Another difference between domestic and international trade is that factors of production such as capital and labor are typically more mobile within a country than across countries. Thus international trade is mostly restricted...

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International Business

...Germany, 1948 by Rudolf Dassler. The major products covered almost all sport items, such as sport shoes, wears, and other sports equipment. The brand PUMA is the leader of football shoes. Puma is Olympic sponsors and partner of World formula championship tournament. Today the group has more than 9,500 employees and distributes its products more than 120 countries. Group holds three major sport brands, which are PUMA, COBRA, and Tretorn in sport industry market.(Puma, 2013). Business process outsourcing (BPO) is the key issue of today’s multinational corporation (MNC), which is considered as high chance to find out more opportunities and reduce cost. The main advantage of Business process outsourcing is that, which makes firms more flexibility, in one hand, which can help MNCs to reduce the fixed cost, as transferring into variable cost. In another hand, BPO is considered to be a good way to focus on firm’s core competencies. In addition, this process also may increase the speed of business processes. Based on these factors, BPO may help MNCs grow faster without the huge capital requested. At the same time, this process also brings limitations for MNCs, such as the higher risk level, which could be caused by both privately or structure of firm. Risks and treats of outsourcing must therefore be managed, to achieve any benefits. 2.0 Investment Market Analysis Vietnam is viewed as a viable alternative to China for foreign (particularly U.S. and European) companies seeking...

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