...Abstract Internationalizing a firm is one of the most important steps a company can take to become more competitive. It can also be one of the most challenging tasks ever taken on because of the amount of development a company must go through in order to make an expansion into new countries successful. The following internationalization plan for the company iCracked will go over strategic goals for the firm, what type of firm iCracked will have to become as it internationalizes, what key aspects of the market must be focused on to remain competitive, and how HRM is going to play an essential role in the company as it internationalizes. HRM will be focused on how performance is managed, how employees are compensated as well as rewarded, selection methods in differing countries, training and development across the globe, and if there is/should be a difference between countries in terms of work-life balance. iCracked Internationalization Plan Across the globe, more than 20% of iPhone owners accidentally damage their phone, resulting in an ugly, unattractive, obnoxious cracked screen. As one of the most popular SmartPhones in the world, Apple’s iPhone is in dire need of a specialized repair service for the easily cracked screens that leave consumers in a panic as warranties expire. Founded in 2010 by a Cal Poly student, AJ Forsythe, iCracked Incorporated is a company that offers such a repair service in the US replacing broken screens and providing repairs for water damage...
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...Munculnya dan evolusi perusahaan multinasional dari Hongkong dan Singapura * The emergence and evolution of multinational corporations from Hong Kong Introduction Although the origins of Hong Kong-based MNCs can be traced(ditelusuri) to the British colonial period and Hong Kong’s position as an entrepôt(gudang) for trade in South East Asia and China, indigenous (adat) Chinese firms(perusahaan) based in Hong Kong emerged(munculnya) as MNCs in the early 1950s, thus reflecting(mencerminkan) a longer history by comparison to MNCs from Taiwan and South Korea whose emergence(muncul) can be traced(ditelusuri) to the early 1960s. Hong Kong has grown to become a significant home country(negara asal) of FDI(foreign direct investment) with an outward FDI stock of ,$154.9 billion in 1998, or some 3.8 per cent of the global stock of outward FDI. Indeed, it had become the world’s tenth-largest source of FDI in that year based on the size of outward FDI stock after the United States (with a share of 24.1 per cent of the global stock of outward FDI), United Kingdom (12.1 per cent), Germany (9.5 per cent), Japan (7.2 per cent), the Netherlands (6.4 per cent), France (5.9 per cent), Switzerland (4.3 per cent), Italy (4.1 per cent) and Canada (3.8 per cent). In fact, Hong Kong is almost as important as Canada whose outward FDI stock was $156.6 billion in that year. Thus, Hong Kong had become a significant source of FDI in the world economy, particularly more so in relation...
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...Social and Ethical Values of Teamwork and Diversity: The Benefits of Diverse Teams Organizational development between diverse teams gives the MNC the opportunity to enter new markets and develop new products, in ways that they would not have been able to if they did not have a diverse, multicultural perspective. The benefits to individuals and society are profound. There are ethical implications for being a good corporate sponsor: by this I mean that there is a potential for a win-win situation that benefits both parties, when a substantial goal can be agreed upon and realized. Sometimes, entering a new market with team players from that region gives them a perspective that they would not considered. A good example of this is the GE ultrasonic ultrasonic imaging machine that has been developed for third world markets {particularly OBGY patients}. This particular product was given the green light after engineers from India were able to express their ideas. To begin with, the device was developed with simple, rugged, and cheap parts. This was done to keep costs down. It can function in a dirty, dusty, third world environment with little or no service. Second, the machine is lightweight, and easily transportable, so that a travelling physician could carry the device on a backpack, using public transportation. This was an important consideration in third world countries, because not all users of the device would be physicians, and more importantly, not all health...
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...Chapter 2 Worldwide accounting diversity Chapter Outline I. Considerable differences exist across countries in the accounting treatment of many items. These differences can result in significantly different amounts being reported in the financial statements prepared by companies using different GAAP. II. A variety of factors influence a country’s accounting system. A. Legal system – in code law countries, accounting rules tend to be legislated; common law countries tend to have a non-legislative organization that develops accounting standards. B. Taxation – financial statements serve as the basis for taxation in many countries. In those countries with a close linkage between accounting and taxation, accounting practice tends to be more conservative so as to reduce the amount of income subject to taxation. C. Providers of financing – in those countries in which family members, banks, and the government are the major providers of business finance, there tends to be less demand for public accountability and information disclosure. In countries where shareholders are a major provider of financing, the demand for information made available outside the company becomes greater. D. Inflation – countries with chronic high inflation adopt accounting principles in which traditional historical cost accounting is abandoned in favor of inflation adjusted figures. E. Political and economic ties – through previous colonization, a British style of accounting...
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...orkMultinational Corporations 1. Multinational Corporations http://www2.econ.iastate.edu/classes/econ355/choi/mul.htm Definition of MNC | Multinational firms arise because capital is much more mobile than labor. Since cheap labor and raw material inputs are located in other countries, multinational firms establish subsidiaries there. They are often criticized as being runaway corporations.Economists are not in agreement as to how multinational or transnational corporations should be defined. Multinational corporations have many dimensions and can be viewed from several perspectives (ownership, management, strategy and structural, etc.) The following is an excerpt from Franklin Root, International Trade and Investment | Ownership criterion | Some argue that ownership is a key criterion. A firm becomes multinational only when the headquarter or parent company is effectively owned by nationals of two or more countries. For example, Shell and Unilever, controlled by British and Dutch interests, are good examples. However, by ownership test, very few multinationals are multinational. The ownership of most MNCs are uninational. (e.g., the Smith-Corona versus Brothers case) Depending on the case, each is considered an American multinational company in one case, and each is considered a foreign multinational in another case. Thus, ownership does not really matter. | Nationality mix of headquarter managers | An international company is multinational if the managers of the...
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...International Human Resource Management: Chapter – 6: COMPENSATION MANAGEMENT Introduction: One of the key components of IHRM is the compensation administration in MNCs. Today, compensation and employee benefits contribute to 40-50% of the total costs. Compensation is strategically reported and monitored at the broad – levels and with the investors to assess the health of the organization. What is compensation management? Effective and efficient process of managing the earnings – financial and non financial rewards of the employees in an organization based on their performance towards organizational goal is called compensation management. International Compensation is an internal rate of return (monetary or non monetary rewards / package) including base salary, benefits, perquisites and long term & short term incentives that valued by employee’s in accordance with their relative contributions to performance towards achieving the desired goal of an organization. It influences: • • • Organizational culture Recruitment and selection of competent employees Motivation and performance Objectives of compensation: Compensation decisions are strategic decisions and play a key role in achieving performance and sustainable competitive advantages for national as well as international firms. Therefore the key objectives are: • • • • • Attract employees who are qualified , experienced and interested in international assignments. Facilitate the movement of expatriate’s from one...
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...correct. 3. Production of goods and services has become globalized to a large extent as a result of A. natural resources being depleted in one country after another. B. skilled labor being highly mobile. C. multinational corporations' efforts to source inputs and locate production anywhere where costs are lower and profits higher. D. common tastes worldwide for the same goods and services. 4. Recently, financial markets have become highly integrated. This development A. allows investors to diversify their portfolios internationally. B. allows minority investors to buy and sell stocks. C. has increased the cost of capital for firms. D. answers a) and c) are both correct 5. Suppose your firm invests $100,000 in a project in Italy. At the time the exchange rate is $1.25 = €1.00. One year later the exchange rate is the same, but the Italian government has expropriated your firm's assets paying only €80,000 in compensation. This is an example of A. exchange rate risk. B. political risk. C. market imperfections. D. none of the above, since $100,000 = €80,000 $1.25/€1.00 6. Suppose you start with $100 and buy stock for £50 when the exchange rate is £1 = $2. One year later, the stock rises to £60. You are happy with your 20 percent return on the stock, but when you sell the stock and exchange your £60 for dollars, you only get $45 since the pound has fallen to...
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...Multinational corporations Table of contents Preface 4 1. Introduction; General meaning of MNC 4 2. Ranking multinationals 5 3. Entry of Multinational corporation into new markets, 6 4. Three Stages of Evolution 7 5. Motives for Foreign Direct Investment (FDI) 9 6. The comparison of MNC and TNC 11 7. What are the benefits and problems that MNCs face? 11 8. What are the Russian companies that achieve the multinational status? 13 Conclusion 14 Bibliography 14 Appendix 15 Preface We would like to consider the most interesting topic concerning the multinational corporations. If we called it like that, it means that company made a great success in the market, it operate in several foreign countries. In this mini-course work we will investigate more detailed the structure and strategies of MNCs. In the first part we will look through the history of MNCs. The history, in general, is to be considered as an essential part of every project in order everyone may compare the development of the particular sphere. Next part will show us the statistical data of MNCs, where we will recognize all the most reputable companies from the different industries, such as BMW, Nike, Lego, etc. We cannot leave a side the point of entry into the new market. There it will be explained the strategies of MNCs, such as mergering, joint venture and sequential market entries. Also we will consider investing into the particular companies, weather it is risky or not and the motives...
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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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...The territoriality principle holds that governments have the right to rule themselves as they see fit. True False The elimination of discrimination with respect to employment and occupation is a principle of the Global Compact which applies to: | A. | Human rights | | B. | Labor | | C. | Environment | | D. | Anticorruption | Question 3 of 40 (worth 0.4 points) Which of the following statements is not true of Hungary's economic reform measures? | A. | Hungary had a head start on the other former communist-bloc countries in terms of adopting economic reform measures | | B. | MNCs have been making direct investments in Hungary, as in the case of General Electric's purchase of Tungsram | | C. | Western firms have been entering into joint ventures with local companies in Hungary, attracted by the low cost of highly skilled, professional labor | | D. | In Hungary, state-owned hotels have been privatized | Question 4 of 40 (worth 0.4 points) Identify the emerging market which is projected to have the largest market size in 2010. | A. | China | | B. | Mexico | | C. | India | | D. | Argentina | Question 5 of 40 (worth 0.2 points) The FCPA makes it illegal to influence foreign officials through the granting of favorable tariff rates. True False Question 6 of 40 (worth 0.2 points) Which of the following statements with to the Transparent Agents Against Contracting Entities (TRACE) is incorrect? | A. | It was developed...
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...1. Why am I interested in the Luxury business? After years of experience in PR, advertising, branding and marketing in consumer goods ranging from skincare, eye care, tobacco, dairy products with mainly mass consumption goods in large MNC corporations. I came across different tier of products from mass, masstige, premium and I wonder what else can I do being a marketer? The concept of luxury branding has enticed and excites me. From the region where I come from not many talent can develop product but there are many talents with good skills in building and market brand. The luxury brand strategies were invented in Europe (mainly Italy and France companies), not in the United States where mass consumption goods concept was originated. With the rise in demand with a double-digit growth for luxury business in foods, travel, automobile and goods in emerging regions and fronting the growth, I see there is a potential playing field for me to be apart of the industry and propel my career further. 2. What do I expect from EMLUX? a) To strengthen my skill in general retail operation management. b) To understand the luxury business especially in terms of distribution for luxury goods, managing financial profitability. c) To position and sell aspirational story, the dream and communicating luxury. d) To decode consumers attitude, insights and segmentation towards luxury business and goods. e) To drive the premiunization agenda in emerging markets with the globalization...
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...According to the economist and strategist Dr. Vladimir Kvint, an emerging market is “a country whose society in transition from a dictatorial form of government to a free market economy, increasing economic freedom, gradual integration into the world market, an expanding middle class, improving living standards, social stability and deepening cooperation with multi-institutions ". Furthermore, In 2008 Emerging Economy Report, the Center for Knowledge Societies defines Emerging Economies as those "regions of the world that are experiencing rapid informationalization under conditions of limited or partial industrialization." The notion of the author/ in simple terms with regards to emerging markets is that it is a particular economy which stands ahead of developing economies with more attractive economic and political conditions and institutional framework leading to potential business opportunities. According to Brandes (2014), “Emerging markets are no longer the uncharted markets they were in the past—they are advancing economies with growth opportunities and continually improving economic and political conditions”. The trend of emerging markets up surged from late 1990’s when 73% of developing countries outpaced America. The most impressive growth was reported in four biggest emerging economies; namely, Brazil, Russia, India and China which were abbreviated to BRICs in 2001. http://www.economist.com/news/briefing/21582257-most-dramatic-and-disruptive-period-emerging-market-growth-world-has-ever-seen...
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...be sub-divided into two which is off-shoring and home-shoring (home sourcing). Off shoring is moving business processes overseas in order to leverage opportunities such as cheap labour expenses, entrance into new markets, skilled labour and availability of resources (Sourcing Mag, 2003). Home shoring (home sourcing) on the other hand, is “the transfer of business processes to companies within the same country” (Brunelli, 2013). The form of outsourcing to be analysed in this report is off shoring because it is one of the effects of Globalization. Outsourcing became popular in the United states as at 1980s when critics began to raise eyebrows about it as they felt multi-national corporations (MNCs) where exporting a large portion of American jobs to other countries (handfield, 2006). Some MNCs that were popularly known and criticized for outsourcing were Boeing, AT&T, Coca-Cola, Pfizer, Microsoft, Oracle, Quaker oats, Dell computers, Yahoo and Motorola (Steve, 2012; CNN, 2012) . Also it went wide in 2012 that Apple which is one of America’s favourite brand was also partaking in this act which critics regarded as a “rip off”. They outsourced all their PC manufacturing to Quanta Computer Inc., Foxconn Electronics Inc. and occasionally...
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...References 12 Introduction The acquisition of business enterprise in a foreign country is part of global diversification. For instance, A US firm can seek to acquire another firm in Europe in which the business environment surrounding the foreign firm corresponds to the environment in the local US firm. The European market in the 28 different countries is diversified and incorporated with opportunities, regulations and transparent policies. In addition, an established American firm can acquire a firm in a new market. This offers a healthier expansion and growing opportunity in new and unsaturated markets. However, this kind of investment comes with its own disadvantages as well as advantages. Similarly, the MNCs may consider making investments in a foreign country. In this...
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...NEW STRATEGY OF MULTINATIONAL COMPANIES: FOREIGN INVESTMENT, INTERNATIONAL SUBCONTRACTING AND PRODUCTION RELOCATION* WLADIMIR ANDREFF Professor Emeritus University Paris 1 Panthon Sorbonne Centre d’Economie de la Sorbonne. ABSTRACT. The article is dealing in the first place with the definition of (offshore) outsourcing in relation with foreign direct investment and international subcontracting process, as well as with some connected issues such as fragmentation of the production process, international production relocation, de-industrialisation in developed countries and industrialisation in newly industrialising, now coined emerging countries. In the second place, it aims at finding how global strategy differentiates from traditional MNC strategies and how much outsourcing fits with such global strategy. The last section of the article briefly screens the economic impact of outsourcing on the world trade structure – with the two enlightening snapshots of global trade in sports goods and European Union 15’s outward processing trade with Central Eastern European countries (CEECs)-, as well as on home developed and host emerging countries. The article conclusion is that outsourcing has grown faster than world trade in the past two decades and has skyrocketed during the very last years because it is a cornerstone of a new global strategy adopted by multinational companies since the late 1980s. KEY WORDS: Offshoring, outsourcing, new strategy of multinational companies. JEL...
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