...Chapter 01 The Challenging World of International Business True / False Questions 1. | All managers need to have a basic knowledge of international business. True False | 2. | As the term is used in the text, foreign business is business whose activities are carried out across national borders. True False | 3. | An international company is an organization with multicountry affiliates, each of which formulates its own business strategy based on perceived market differences. True False | 4. | A business whose activities are carried out across national borders is known as an international business. True False | 5. | Foreign business refers to the operations of a company outside its home or domestic market. True False | 6. | A company headquartered in another country is known as a foreign business. True False | 7. | The term international business is used to describe an organization with multicountry affiliates, each of which formulates its own business strategy based on perceived market differences. True False | 8. | A multidomestic company is an organization that attempts to standardize and integrate operations worldwide in all functional areas. True False | 9. | The term international company refers to both global and multidomestic companies. True False | 10. | A global company is an organization that attempts to standardize and integrate operations...
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...and innovation): i. Daimler – felt pressure to merge, ranked 15th largest automaker (only above Volvo & Porsche) ii. Chrysler – lack management depth, new products, and has small oversee market penetration c. Avoid consolidation due to global overcapacity d. Cope with changing marketplace and technology, such as the Internet e. Remain competitively priced by reducing cost (implementing “platform” design across DaimlerChrysler) f. Was it really “a merger of equals”? What went wrong? (see table and reference #2 – Muller, 2001) Issues faced by DaimlerChrysler after 1998 merger: a. How to leverage “soft” assets, such as Intellectual Capital in the form of Knowledge Management? b. How to resolve cultural differences between Daimler and Chrysler c. How to convince executives, managers, and staff to be open and remain loyal d. How can knowledge management be used to smooth the merger process * See reference #4 (Robb, 2003) for similarities between related KM acquisitions and mergers e. Is there enough resources or reason to adopt Knowledge Management * See Table A for comparison of companies that adopted KM Transfer of resources and capabilities: a. Economies of Integration: reduce costs and improve quality b. Economies of scope: obtaining synergies from transfer of core competencies i. Chrysler – known for innovation in design and marketing knowledge ii. Daimler – has brand equity and state-of-the-art engineering in R&D iii. Sharing of distribution and sales networks to gain market...
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...value creation • To profile the features and functions of the value chain framework • To assess how managers configure and coordinate a value chain • To explain global integration and local responsiveness • To profile the types of strategies firms use in international business Chapter Overview Chapter Eleven presents tools and concepts used in analyzing and formulating international business strategy. First, the relationship between industry structure and competition in global industries is examined. Next, value chain analysis is used to identify the internal capabilities of the firm that can be leveraged to create competitive advantage. Effective international strategy depends greatly on the proper configuration and management of a company’s global value chain. The sometimes conflicting demands of global integration versus local responsiveness are examined. Finally, a typology of strategic alternatives including multidomestic, international, global, and transnational strategies is presented. CHAPTER OUTLINE OPENING CASE: Value Creation in the Global Apparel Industry [See Fig 11.1 and Map 11.1.] Zara, a large clothing retailer headquartered in northwest Spain, has used an innovative strategy to power its global expansion. The company has grown to more than 1,292 stores in 72 countries since its founding in 1975. Zara has made extensive use of information technology and e-business methods to implement dramatic reductions in the...
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...Shanghai like many other MNCS (158th set up in Shanghai by multinationals). Recently, 3M even doubled its China's R&D center size and staffing, giving birth to an important R&D hub for 3M's global business enabling the company to better supply products needed in the industries of electronics, telecommunications, automobiles, shipping, aviation, medical care, housing and leisure," company officials said. Today, 3M has 11 companies and 19 offices across the country, employing more than 5,000, showing a long-term commitment for the Chinese market. Through those trends, we can notice how R&D is now important in the globalization process. Li-Hua and Khalil (2006) argue that the international business environment is affected by globalization and this emphasizes the importance of studying synergies and differences between Western and Eastern management concepts. The present essay will analyze the reasons, benefits and drawbacks of this significant increasing level of foreign invested R&D conducted in the Chinese environment. It could then contribute to the decision for a company to create and develop its...
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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 Human Resource Management 2 What is Expatriate 4 IHRM has three dimensions 4 International assignments create expatriates 5 Increasing Importance of International Human Resource Management 6 Significance of International Human Resource Management 9 Conclusion 11 Reference……. 12 Introduction As we enter the new millennium, more and more companies are recognizing the importance of managing their human resources as effectively as possible. They are also recognizing that doing so, however, cannot be done without recognition and incorporation of the global context. It is virtually impossible to read a business periodical or newspaper anywhere in the world without seeing stories detailing the success of a company due to how effectively it manages its people. As the environment becomes more global, managing people also becomes more challenging, more unpredictable and uncertain and more subject to rapid change and surprise. Thus what we are witnessing within human resource management (HRM) is the rapid appreciation for and development of all aspects of global and international activities and issues associated with and affected by HRM. And because the importance of managing people effectively in the global context is so great, many companies are devoting a great deal more time, attention, skill, and effort into doing it well. To be successful, many firms have to compete on the global playing field because the costs associated with the development...
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...expectations of public management and public managers in the new millennium are more diverse than ever before. Important issues such as regulatory reform, public sector budgeting, human resources management, strategic policymaking, ethics and corruption are taking a front line. The concepts of rational administration, accountability, planning, control, budgeting and financial management are major factors in the future of Canada and some believe privatization of the government’s delivery of services will improve these crucial aspects of government. Some public service organizations have already attempted to make privatization the major method of handling certain tasks such as building maintenance, methods of transportation and administrative work. A well managed public sector will ensure Canada functions at peak efficiency and this is the goal of the public service. This paper will discuss what may happen in public management within Canada in the future and why a global capitalist society is largely the basis for the transition we are seeing today. Globalization is a factor in the new millennium that must be included in almost any discussion concerning the future. At the click of a finger, a businessman making financial transactions in Toronto can transfer dollars to any country where he is doing business. Globalization has allowed for cheaper and faster transfers of speculative portfolio investment. Since the late 1970s and early 1980s, globalization has been pushed by the countries...
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...International Recruitment, Selection, and Training Strategies The world has been rapidly transforming due to the changes in technology, innovations, and the reduction of trade barriers into and out of countries which have permitted globalization. Due to globalization human resource management has been forced to take a more international approach, and has demonstrated that a more effective management of human resources internationally is imperative for the success of companies in international business (Shen). Therefore international organizations need to understand the roll that plays the international human resource management (IHRM) department, and the importance of adopting an effective recruiting, selecting, and training strategies that will enable the company to select the right talent for the right places. IHRM plays a very important and challenging roll in the international setting of organizations because “they must develop practices which will maintain congruence with the overall strategic plan of their respective multinational corporations, while balancing the economic, social, political, and legal constraints of the host countries” (Caligiuri). Companies understand that the only way to develop strong and successful global leaders, which are keys to competitive advantage, is through an IHRM department that has a well develop competitive strategy in place. Multinational Corporations (MNCs) like Unilever and Huawei Technologies Co., a Chinese networking and telecommunications...
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...nformation technology is a wide field, and has enabled organizations across the world to work in an efficient manner. It plays a very important role in effective management and running of a business. The use of IT in organizations is inevitable, be it any type of company like manufacturing or medicinal sector. It has contributed largely to the process advancements in organizations. Basic Elements of Information Technology Software and Applications Software is an important part of information technology which relates to computer applications that enable a company to generate, store, program, and retrieve data as and when needed. There are many software developed for different purposes. All operations in the business sector are carried out by software that are assigned for executing specific tasks. Without these computer applications the businesses wouldn't have been able to carry out their functions in a proper and efficient manner. Operating systems, ERPs, special purpose applications, and web browsers are some examples of different software. There are some software which are exclusively built to contribute to the proper collaborative working of all sections of the businesses, which are known as Enterprise Resource Planning (ERP). These are complex applications which enable people to efficiently manage all functions and operations of all processes in the businesses. Hardware Devices These are various computer equipment that house the software. Devices like microcomputers...
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...CONSULTANCY NOT A PROFESSION By Henry Egyeyu Bellying Consultancy P.O Box 1234, Kitgum 30th March, 2010 RE: CONSULTANCY MEETING PROFESSION OR NOT - A CASE OF BAIN & COMPANY 1.0 Background information Bain & Company was established in 1973 by a group of seven former partners and managers from the Boston Consulting Group headed by Bill Bain. The company was originally headquartered in Lexington, Massachusetts on Militia Drive. By the end of the decade, the firm's headquarters were in Faneuil Hall Marketplace in downtown Boston. Under Bain's direction, the firm implemented a number of unconventional practices in its early years. Notably, Bain & Co. would work with only one client per industry to avoid potential conflicts of interest. Partners did not carry business cards and clients were referred to by code names to enforce client confidentiality. The company won clients by boardroom referrals rather than marketing, and claimed its consultants worked on increasing a company's market value rather than simply handing clients a list of recommendations. To win business, Bain demonstrated the increase in the price of their clients' stocks relative to the Dow Jones Industrial Average. The firm's founding was followed by a period of growth in the late 1970s and early 1980s as the firm opened offices in Menlo Park, California, London, Munich, Paris, and Tokyo. Another consulting approach used...
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...Final Paper – International Management (2012-08-MAN-372-OL011) Management Strategies and Building a more Successful Global Business Introduction Globalization is a powerful real aspect of the new world system, and it represents one of the most influential forces in determining the future course of the planet. It has manifold dimensions: economic, political, security, environmental, health, social, cultural, and others. The focus here is on the concept of "globalization" as applied to the world economy. International expansion is simply about smart preparation and well-thought-out execution; it can be enticing and highly profitable, but only if you do it right. If you don’t plan for tax exposures, business model alterations, and international corporate structure in advance, then you’re setting yourself up for an uphill battle at best — and failure at worst. With the increasing trend of globalization, industries are rapidly expanding into the international market. With no exception, many U.S.-based companies are expanding beyond the home country despite the risks. Why is international expansion important? A company can grow by exploiting overseas market opportunities and imperfections through internationalization, and growth has a positive impact on the firm performance. In short, international expansion can be profitable to companies. Moreover, why is the relationship between international expansion and firm performance important? Ultimately, a company’s performance...
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... based on your knowledge of human resources and database systems, propose one (1) package that would fit the needs of your organization. Suggest three (3) specific reasons why you would recommend that system over the other. Human resources database software typically offers a myriad of features. Some manage hiring and training while others management benefits and performance management. Triton HR & Payroll are the 2 commercial HR database systems that I will be reviewing. After reviewing them both, I recommend Payroll as they have a seamless end-to-end HR solution that includes recruiting all the way to termination. The software addresses recruiting, on-boarding, time & attendance, payroll processing, benefits, coaching and performance management, and terminations. It is a very through system that allows for easy implementation and costs less than the Triton HR system. Although the Triton HR system does contain many of the same features, what it lacks is the fluid transfer of information and reduction of paperwork. Overall the Payroll system is more efficient, effective, and affordable than the Triton HR system. Suggest three (3) efficiencies that an organization would gain from using a SAAS for its HRIS needs and three (3) inefficiencies from maintaining an MS Access-based database application. Using software as a service (SAAS) for Human Resource database management has several advantages. One advantage which is most often weighed in on is cost. Most SAAS programs...
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...needs assessment which confirms whether or not an organization needs training. The second step is to identify the readiness of the employees by evaluating their motivational and basic skills necessary to effectively comprehend the training program content. The third step is all about creating a learning environment that provides means for learning to occur from the training. The fourth step is the process of transfer of learning where employees apply what they have learned in the training program to their jobs. The fifth step is developing an evaluation plan which describes the types of outcome expected and demonstrating how training will affect those involved. The sixth step is selecting the training method in correlation with the learning objectives and learning environment. The seventh step is to evaluate the training program, make changes if necessary and to improve the program by revisiting earlier steps in the process so that learning objectives are accomplished. Economic cycles, globalization, customer service and quality emphasis, talent management, new technology, increased value placed an intangible assets and human capital, focus on linking business strategy, changing demographics and diversity of the work force, high performance work systems are the various forces affecting the work place and learning. An organization deals with these forces by incorporating a strategic training program because providing training improves professional conduct, improves...
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...Overview | 4 | 3 | Globalization | 6 | 4 | National Differences in Political Economy | 8 | 5 | International Trade Theory | 9 | 6 | Foreign Direct Investment | 10 | 7 | Strategy of International Business | 14 | 8 | The organization of International Business | 16 | 9 | Entry Strategy and Strategic Alliance | 18 | 10 | Exporting, Importing and Counter Trade | 19 | 11 | Global Production and Logistics | 22 | 12 | Global Human Resource Management | 25 | 13 | Recommendation | 26 | 14 | Conclusion | 27 | 15 | Reference List | | Introduction PRAN-RFL GROUP is a private owned organization of Bangladesh running multiple businesses both in the national and international market. The purpose of this term paper is to analysis the international business aspect of PRAN-RFL GROUP. For preparing this report we went to PRAN-RFL GROUP for visit. There we interviewed assistant manager of export, MR. Zamaluddin Ahmed and we found out everything about their international business and also the major procedure of their business. In this report we tried to visualize the international business aspects of that organization and it is fragmented into different segments. Firstly, we gave a total overview of PRAN-RFL GROUP then we tried to show the overall environment both national and international. Then the trade theories which are related to them, FDI in their business. PRAN-RFL GROUP’s international business structure, entry mode, also their logistic and human resource management. Objective This...
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...Executive Summary This report was commissioned to prepare and equipped 6 senior executives with essential knowledge and facts about their foreign assignment for period of one year at the host country – Indonesia. In order to create a resourceful and talented team for the newly established offshore company, a motivated team which aligns with company objectives is the key point for remarkable success. Preferable candidates come from diverse background and they will be examined to ensure they have high level of interpersonal skills and adaptability towards foreign culture. Hence, detailed research about a country’s climate, culture, language and cuisine etc. will be brief and training will be provided too. This report also critically analysis about the structure of job design compare to headquarter in Singapore by using Hofstede national culture dimensions in order to find out the most suitable structure for the subsidiary. HR planning is essential during the staffing process to hire the best fit candidates, followed by training and development process to prepare the assignees for the success of foreign assignment. Lastly, report will discuss the design of remuneration package for the international assignees. A comprehensive compensation package is the key point to draw potential candidates’ attention and this must be well planned to ensure it meets assignees expectation. The financial equality of before- and after-overseas posting is important, thus, balance sheet approach...
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