...he STEEPLE analysis of the business environment of Samsung is part of the company’s strategic analysis for the medium and long term. The goal of this study is to assess the prospects of Samsung. Samsung is a global company in the consumer appliances and gadgets market. It started as a South Korean family-owned business but has earned acceptance around the globe now. Samsung is not happy with operating in the leading markets only. The recent expansion into new markets shows that it wants to cover as many countries as possible. STEEP analysis provides concentrated information which covers various aspects of the external environment. Like PEST and STEEP, it creates a snapshot of current socio-political reality. It also gives a better idea of the existing trends. The analysis below will give you an outline of Samsung’s overall situation. Samsung would consider all of these factors before taking a decision. The key focus of this article is on the external environmental drivers. The STEEPLE analysis will focus on the following 7 factors: Social, Technological, Economic, Environmental, Political, Legal, and Ethical. The initials for these make up the acronym STEEPLE. S FOR SOCIAL As I mentioned already, Samsung is a South Korean Chaebol. This means it is a family-owned multinational. Despite its global image, the firm still operates as a Korean company from within. For this reason, they change many aspects of global operations according to the local conditions. In simpler...
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...Chapter 1 -The global manager’s environment Sources of Risk for International Managers -Exogenous- General environmental factors, industry-related uncertainties and some firm-specific uncertainties. -Endogenous- Uncertainties that arise from within the firm, and include managerial perceptions, attitudes and organizational perspectives. -Top two exogenous risks facing business leaders and policy makers for 2012 and the next decade would be severe income disparity (The unequal distribution of household or individual income across the various participants in the economy) and chronic fiscal imbalances (situation where all of the future debt obligations of a government are different from the future income streams) -Other issues: natural disasters such as 2011 earthquake in Japan, flood in Thailand, Political uncertainty in China and Middle East -Globalization has compounded the types and level of business risks. *Typical challenges that managers face involve politics, cultural differences, global competition, Terrorism and Technology. Managers in companies are struggling to find ways to balance their social responsibilities, their images, and their competitive strategies. -PESTEL- An analytical tool to develop and understanding of exogenous risk -Pestel analysis- Political, Ethical, Social, Technological, Environmental and legal understanding or environmental scanning that is CRITICAL if we are to strategically plan and develop our value proposition. -> Exogenous creates...
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...MBA505 INTERNATIONAL BUSINESS MANAGEMENT REV11A CHAPTER 1: ASSESSING THE ENVIRONMENT POLITICAL, ECONOMIC, LEGAL, TECHNOLOGICAL CHAPTER SYNOPSIS This chapter explains the elements of International Business Management. It gives a sound understanding of factors such as Political and Economic Environment, Legal Environment, and Technological Environment. Also, it covers the effects of Regional Trading Blocks, Information Technology, The Globalization of Human Capital, The Global Manager’s Role CHAPTER OUTLINE The Global Business Environment Regional Trading Blocks Information Technology The Globalization of Human Capital The Global Manager’s Role The Political and Economic Environment The Legal Environment The Technological Environment ISSUES FOR REVIEW AND DISCUSSION I. The Global Business Environment A. Global management Global management is the process of developing strategies, designing and operating systems, and working with people around the world to ensure sustained competitive advantage. 1. Globalism “Global competition characterized by networks that bind countries, institutions and people in an interdependent global economy.” 2. Evidence/Indicators of Globalism The growth rate of the trade of goods has grown faster than the world production of goods. The European Union has now caught up with the United States to share the position of the world’s largest investor. 2011 AMERICAN CITY UNIVERSITY Page 1 of 28 MBA505 INTERNATIONAL BUSINESS MANAGEMENT ...
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...MAN3025 Summer B 2016 Ch 1-4 Test Chapter 1—Managing and the Manager's Job 1. The News Corporation, Smile Train, Delta Airlines and Gucci are all examples of a. bureaucracies. b. corporations. c. organizations. d. managerial hierarchies. e. centralized units of operation. 2. Which of the following is an example of an organization? a. The Department of Education b. Princeton University track team c. Starbucks d. Swoopo, online auction site e. All of these choices 3. Amy, Frank, Puz, and Tiaro started a Bible study group. They are engaged in a. starting a corporation. b. starting an organization. c. creating a managerial hierarchy. d. creating a bureaucracy. e. creating an organizational matrix. 4. All of the following are physical resources EXCEPT a. raw materials. b. a robotic welder. c. labor used in production. d. an inventory of finished goods. e. an office building. 5. In the National Football League, the players are a(n) ____ resource. a. physical b. financial c. human d. information e. intellectual 6. Managers use all of the following types of resources to achieve organizational goals EXCEPT a. international. b. physical. c. human. d. financial. e. information. 7. In the National Football League, the stadiums are a(n) ____ resource. a. international b. physical c. human d. financial e. information 1 8. In the National Football League, the ticket revenue is a(n) ____ resource. a. international b. physical c. human d. financial ...
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...Egg McMuffin (McDonald's, 2009). Among the most precious and renowned brands of the world, McDonald's is one. Approximately on all the countries where the McDonald's operates its services, it holds a major share in the global renowned quick service restaurant industry of the informal eat out market (McDonald's, 2009). McDonald's is a global organization which uses market research to understand the market environment before making any decisions related to market. This will help the company to identify the favorable and unfavorable factors in the environment from the standpoint of the firm. The environmental factors that affect the restaurant industry in which the McDonald's is operating are: political factors, economic factors, technology factors, social-cultural factors and legal factors (Wheelen & Hunger, 2001). Political Factors and legal Factors: Political environment exercises great impact on any industry and business. The developments on the political front affect the economy all the time and thus, the economic environment is a byproduct of the political environment (Kotler, 2002). In...
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...Legal and Ethical Environment of Business Thomas Matthew October 9, 2013 American InterContinental University Eric Baime * Analyze and explain the state of our legal system in terms of ethics. The basis of our legal system was and is to protect the wealth of a very few by imposing laws on the less fortunate class of society. Tribal leaders and kings that were capable of forming armies to their benefit developed this system years ago. They formed this cartel and enforced their rules upon a society who lacked the power to contest the laws imposed on them. This system has evolved in our society in the form of a government who utilize the police and military to dictate the lives of the public. They inform the public that these laws exist to protect the interests of the people within the society. If these laws were actually created for the overall good of humanity then indeed they would be ethical but in reality people in power abuse these laws for their benefit. The laws within our legal system do consist of some ethical components and are considered either valid or invalid. Since our legal system was created by the wealthy they essentially do have opposing ethical views. The conflicting viewpoints exist in the legal system because the laws strip freedom and justice from one person in order to provide it to another. This implies that unethical laws are present giving power to more and limiting it to some. The legal system consists of laws that prohibit ethical...
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...Concept of political environment The political scenario in a country is the outcome of the interacting influence of various interest groups such as individual households, firms, politicians, bureaucrats and many others. The stronger a particular interest group the more prominent its ideology will manifest in the overall political scenario. In a country with federal character, where different interest groups are prominent at different levels, different ideologies exist side by side at the same juncture. The political scenario in different states may be different. Even at the centre, the political scenario may change with changes in the dominant interest group. As opposed to diverse political environments in a particular country, a particular political ideology may be found in more than one country. It is because the ethnic background, language, religion and so on bring many countries within the fold of one common political ideology. For example, it was the ethnic considerations that brought Serbs of the neighbouring regions into one political umbrella known as Greater Serbia. Thus political environment is marked by both diversity and uniformity. The political scenario often varies between the two extremes democracy on the one hand and totalitarianism on the other. The purest form of democracy represents direct involvement of citizens in policy making. But with growing time and distance barriers over time, it did not remain feasible for all citizens to participate in the political...
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...Chapter 2 Objectives 1. Explain the importance of analyzing and understanding the firm’s external environment. It is important for a firm to analyze and understand their external environment, because the external environment can pose opportunities and threats. As the firm seeks to gain competitive advantage and above-average returns they are influenced by external environment. The firm needs to understand the segments (demographic, political, global, physical, etc.) with their environment in order to achieve their goal. As more firms enter the market and as technology changes and grow in affects a firm capability of having or maintain competitive advantage, so firms need to have full awareness of what is happening in the external environment. 2. Define and describe the general environment and the industry environment. The general environment could be considered as the outer layer that is widely dispersed and affects organizations indirectly. The general environment is a group of seven environmental segments (demographic, economic, political/legal, sociocultural, technological, global, and physical) which influence an industry and the firms within it. A firm does not directly control the general environment, but by all means firm’s actions are influence by the segments. The industry environment directly influences a firm and its competitive actions and response. A firm response and competitive actions may be influenced by these set of factors: the threat of new entrants...
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...International Business Environment BE2501 – Summary Chapter 1 Globalization – refers to the shift toward a more integrated and interdependent world economy. Globalization of markets – refers to the merging of historically distinct and separate national markets into one huge global marketplace. Globalization of products – refers to the sourcing of goods and services from locations around the globe to take advantage of national differences in the cost and quality of factors of production (such as labor, energy, land and capital) General Agreement on Tariffs and Trade (GATT) World Trade Organization (WTO) – is primarily responsible for policing the world trading system and making sure nation-states adhere to the rules laid down in the trade treaties signed by WTO member states. International Monetary Fund (IMF) and the World Bank (WB) were both created in 1944 by 44 nations that met at Bretton Woods, New Hampshire. The IMF was established to maintain order in the international monetary system; The WB was set up to promote economic development. United Nations (UN) – was established on October 24, 1945, by 51 countries committed to persevering peace through international cooperation and collective security. International trade occurs when a firm exports goods or services to consumers in another country. Foreign Direct Investment (FDI) occurs when a firm invests resources in business activities outside its home country. Stock of foreign direct investment – refers...
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... the company needs to understand all the issues such as technological, ethical, legal rules, regulations economy, political, and background of the country that could have direct or indirect impact on the Riordan Manufacturing process. In addition, there are many ethical issues that connected to the plastic industry that Riordan manufacturing needs to take into consideration when expanding their market into Malaysia. Furthermore, ethical issues are one of the most important problems that the company needs to take into consideration, when operation its manufacturing plant in an international market like Malaysia. There are three different ethical issues that Riordan Manufacturing might faces such as (1) The environmental issues (2) Business corruption and (3) Safety issues in an international market. Environmental Issues Environmental issues have become very common with the plastic industries and are one of the most relevant ethical issues that multinational companies are faced with when operating in international markets. Hence, Riordan manufacturing company will need to make sure that they abide by all the international environmental standards set be the Malaysian government. In addition, Malaysia has had negative results with past manufacturing companies and its processing. The company may face with a variety of problems due to the depleting of Malaysians natural resources, polluting the environment, causing unhealthy living conditions for the local population, risking...
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...Harmonized Curriculum for Civics & Ethics Common Course for Under Graduate Degree Program Ethiopia August 2009 Addis Ababa, Ethiopia Course Title: - Civics and Ethics Course Code: - CvEt 201 Credit Hours: - 3 Learning Outcomes A graduate from Ethiopian higher education institution who has taken this course:will be inquisitive, critical, analytic, integrative and morally balanced person. exhibits higher ethical standards like open-mindedness, rational thinking, evidenceoriented personality and problem solving skills with high professional spirit. tends to be more participatory in socio-economic and political endeavors will be practical, highly concerned, responsible and loyal to his/her nation Course Objectives At the end of this course, students will be • familiar with key concepts like civics, ethics and profession • equipped with basic knowledge, skills and attitude of socio-economic and political issues of their country • familiar with government institutions, policies, strategies and legal provisions of their country • able to analyze the dynamics of socio-economic and political transformations of their country • able to develop the knowledge of work habit; professional, environmental, development and public service ethics, and their repercussions • familiarized with foundations of democracy and good governance and tools of democratization process • able to assess the values of multi-culturalism and tolerance for mutual understandings and co-existence • able to gain an increased...
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...Assessing the Environment & Managing Interdependence, Social Responsibility, Ethics and Sustainability 30/09/2014 Dr Nick Papageorgiadis The notion of a firm with a unique national identity is quickly fading. A Bermuda-incorporated, Paris-headquartered firm, listed on the NYSE with US style investor protections and disclosure rules, a chief information officer in Bangalore, a chief finance officer in Brussels and a chief operating officer in Beijing may not sound nearly so fanciful in the near future. Desai, M. A. (2009). The decentering of the global firm. The World Economy, 32(9), 1271-1290. What is International Management? The process of developing strategies, designing and operating systems, and working with people around the world to ensure sustained competitive advantage The Global Manager’s Role Contents Assessing the Environment: • • • Understand the global business environment and how it affects the strategic and operational decisions which managers must make. Critically assess the developments, advantages, and disadvantages of globalization. Develop an appreciation for the ways in which political, economic, legal, and technological factors and changes impact the opportunities that companies face. Appreciate the complexities involved in the corporation’s obligations toward its various constituencies around the world. Understand the changing perceptions and demands of corporations doing business in other countries, in particular the responsibilities...
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...Tyden Brammall Mike Arevalo MKT/421 February 27, 2012 Stephanie Jensen Tyden Brammall Tyden Brammall is an organization that is in the process of trying to become the largest and most successful security seal provider in the world. Owned by a private equity firm it has been transformed from a United States manufacturer to a global company by expansion, merger, and take over. As the worldwide expansion has progressed it has encountered many if the issues raised. Items such demographics, infrastructure, global interdependent, and inferences such as culture. The other issue of ethics and working within different political systems such as the one in China and the effect of the tech revolution and the ease that it has made operations that much easier. Global Interdependence and Cultural Differences Tyden and the equity firm have gambled much on the value of global interdependence. The company requires all division to be able to support each other with sales being in Europe, Latin America, and the largest market the USA. Manufacturing is centered in China and the Far East with a small assembling procedure in Latin America. This interdependence and support of each is essential to the operational success of the organization. As a global manufacturer each and every division must know its place and support each other. The other side of the coin in having a global company that depends on each other is the fact cultural difference play such a part...
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...the ethical dilemma faced by Jextra’s country manager, Tom Chong, who was responsible for Neighbourhood Markets in Malaysia. Jextra Stores was a Hong Kong based company that operated retail stores in China, Hong Kong, Philippines, Malaysia, Thailand, Singapore, and Vietnam. In 2005, the company successfully entered Malaysia, operating supermarkets under the name of Neighborhood Markets (Inkpen, 2010). Jextra identified a promising site in Klang, near the capital of Kuala Lumpur, to open a new supermarket (Inkpen, 2010). Mr. Chong needs to evaluate a proposal made by the Mayor of Kang, which might be considered bribery. In this case, Mr. Chong faces social and ethical challenges that may affect the company’s operations, performance, and competitiveness in the region as well as Mr. Chong’s career. The major social issues include those related to law, culture, and ethics. The report also analyzes anti-bribery corruption enacted by the U.K Bribery Act and the U.S. Foreign Corrupt Practices Act (FCPA). The report concludes with recommendations to Jextra such as seeking proper legal advice, implementing an effective business code of conduct, providing inter-cultural and ethics training to managers, using a geocentrism approach and conducting an internal investigation for the Malaysian category manager. Analysis Social, Ethical, or Legal Challenges International firms operating abroad often face social challenges because they operate in markets with different legal and...
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...Case Study 1 Case Study 1.3 1. In each of the cases described, who benefits and who suffers from the alleged ethical and legal lapses of Airbus? In these cases, I do not think there is any side is actually be benefited. Airbus may get benefits from more orders. However their behavior of getting order through improper means is quite immoral. The relevant government official who suspected bribery suffer from the alleged ethical and legal lapses of Airbus. 2. How should the public relations staff at Airbus respond to the articles appearing in The Economist, The Guardian, and Reuters News? The political vulnerability is the main reason that cause the legal lapses. When you doing a Global business, it is huge risk to understand the line of legal and political or you could make a terrible mistake. Sometimes the culture environment of nation is much stronger than the corporate power. 3. What steps might Boeing take to defend itself from this sort of competition? The main key of the international marketing is playing by the rules. That is how you survival from the international legal environment. The dynamics is also an important factor of assessing Global Markets. 4. Do you think that Boeing and Airbus behave differently in marketing their aircraft around the globe? How and why? I do not think there is a clear line of behave between Boeing and Airbus. As the two top aircraft corporation in the world. They all have their own way...
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