...Name Professor Course Date The challenge that faces Telsa Motors trying to enter the Chinese market Organizational behavior is centered on how people act or behave in an organization. An organization is simply a group of individuals who have the same interests and are brought together by similar or common goals (Lam and John 123). Organizational behavior is, therefore, the study of the factors that influence how employees and other people respond, feel and act to organizations and work and how the Company is affected by the external environment (McShane, Steven and Glinow 321).Organizational behavior reveals how people interact in a group and how the environment affects this interaction. The subsidiary of Telsa Motors in China was registered in the year 2006, but full operations began in 2013 when the trademark issue for Telsa Motors was resolved. Organizations must learn that their trademark is an international recognized concept but in some overseas market there can be problems with the mark of a Corporation. The best way to overcome these matters can be through franchises with existing domestic Corporations. Telsa Motors, Inc. is an American multinational Company that manufactures designs and sells electric vehicles, components of power train and battery products. Telsa is a publicly traded Company that sells its stock on the NASDAQ stock exchange market under the symbol TSLA. Marc Tarpenning and Martin Eberhard started Tesla Motors way back in 2003 (Hettich and Stewens...
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...of the market supply in China has had a massive impact on the automotive market. This development contributes to the globalization of the automobile industry that involved the integration of the Chinese domestic market into the international markets. Among many reasons, motivation to gain access to industrialized markets and to gain access to superior technology, management resources and knowledge are the most driving factors of the Chinese automotive industry for the internationalization and going abroad strategy of China´s automotive industry. This study investigated whether different external globalization drivers and internal organization factors have differential effects on various dimensions of China´s automakers firms’ global strategy. Most of the studies written about global strategies have implemented only either of the internal or the external drivers of the internationalization of the firms. The contribution of the paper introduces a more comprehensive model on the global expansion of a firm. This paper concludes that China´s automotive industry has some competitive advantages such as low cost, while, facing a number of challenges that hinder the internationalization of Chinese automobile companies. It also shows that multiple factors play an important role in firms' internationalization global strategy plan. It is thus essential that the interaction among independent variables is considered in the determination of global expansion strategy. This paper suggests ...
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...services and features to customers. This means that overall industry actual and potential provisions are unlimited, which accounts for continuous shifts or adjustments contributing to industry viability. Diversity in employment and service offerings of the international hospitality industry has resulted to the higher number of people employed in the hospitality industry more than in manufacturing firms. Due to the profitability and viability of the industry, it has also evolved into one of the most competitive economic sectors. Heightened competitiveness in the industry could draw out the untapped capabilities of hospitality firms. On a firm level, hotel managers face the challenges of shifts in its target consumer segments coinciding with changes in consumer demands, issues of liquidity, and intense failure percentage within the industry. To survive, hospitality firms need to deal with all these multifaceted issues by understanding these problems and implementing appropriate strategies. To understand how well firms in the hospitality industry ensure the competitiveness of the firm, a strategic analysis of Shangri-la hotel is the case in point. Shangri-la constitutes one of the top and long-standing international hotels and brands. Shangri-La Hotel is a facility of services which provide places to stay for customers around the world. It is known as a hotel or a resort for consumers to relax or even have a vacation at the hotel. Shangri-La Hotel is a much known hotel...
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...CURRENT CHALLENGES OF SUPPLY CHAIN MANAGEMENT Acknowledgement It is only because of the grace and mercy of great Almighty ALLAH that we are able to complete our report. Without His help, in no way we could complete it. We are highly indebted to honor Sir Shoaib Ishtiaq (Bahria University) for assigning us such an important and interesting report and for his valuable guidance in carrying out this research study which benefited during our course work in the university. We would also like to extend our gratitude towards the internet & books which helped us greatly. And on the other hand all those people who were directly and indirectly involved in the completion of this project. ABSTRACT Purpose : As the business environment becomes increasingly competitive, companies continuously look for ways to distinguish themselves from their competitors. Companies adapt different Supply Chain Management practices and philosophies to help them become competitive. However, they may face challenges that hinder attainment of the results sought. Here is the study of few challenges that supply chain management are facing in today’s world and some strategies propose to cope up with those challenges. Methods : Firstly the major challenges were search and then some strategies were purpose to cope up with those challenges of supply chain management by giving the examples of case study than how in past companies have faced those challenges and they were not able to handle...
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...What are IKEA’s firm-specific advantages? Country - specific advantages? IKEA’s firm and country specific advantages could be the following: IKEA sells the same furniture all over the world, so IKEA rips huge economies of scale from the size of its stores and the big production runs necessary to stock them. IKEA also offers a low competitive price because of the economies of scale (30% lower than competitors) Exclusive relationship between IKEA and its suppliers, offering modern and exclusive designs for IKEA. Designers also work closely with suppliers, keeping the costs low. Ready-to-assemble kits help to stack products in shelves in order to maintain larger inventories. The cash and carry shopping formula; you can go to the rack directly to collect the product and go home to build it by yourself. Successful use of the word of mouth and the use of catalogues in order to reduce the advertising costs. IKEA has simple and plain staff levels, lowering the fixed costs and giving more freedom to its employees. This management structure also helps making decisions in a faster way. 2. What are the cultural factors that make expansion abroad in retailing difficult? What has made it possible in IKEA’s case? Ikea has encountered many problems when entering the U.S. market because it had to adapt its products and its shopping style to the American standards. IKEA had to redesign its beds because the American citizens were not buying the European size beds (Beds in America...
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...permission from the University. Signed Student number E00010312 Name Danny Lingham Managing Service Supply Relationships Executive Summary In today’s global environment, companies are able to leverage their competitiveness through service supply relationships. Outsourcing is key for a company’s survival. With the increases in costs levels through the market segments, companies are able to leverage economies of scale by lowering costs and at the same time maintain a presence in the market. Through technological advances, the world has become well connected. As such, interdependencies and inter-cultural awareness are important to sustain economic growth. China and India has emerged as powerhouses driving the economy in this, millennium. China, being the only communist country to grow at a remarkable rate and attracting a large number of multinationals companies and foreign investment and able to obtain transfers in technology through these investments and its rise as a global economic...
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...its strategies to expand & become profitable in China Executive Summary: IKEA is known globally for its low prices and innovatively designed furniture. In China, however, it faced peculiar problems. Its low-price strategy created confusion among aspirational Chinese consumers while local competitors copied its designs. This case study analyses how IKEA adapted its strategies to expand and become profitable in China. It also assesses some lessons the company learnt in China that might be useful in India, where it plans to open its first store by 2014 and 25 stores in 10 to 15 years. Swedish furniture giant IKEA was founded by entrepreneur Ingvar Kamprad in 1943. He began by selling pens, wallets and watches by going door to door to his customers. When he started selling his low-priced furniture, his rivals did everything to stop him. Local suppliers were banned from providing raw material and furniture to IKEA, and the company was not allowed to showcase its furniture in industry exhibitions. What did IKEA do? It innovated to stay in business. It learnt how to design its own furniture, bought raw material from suppliers in Poland, and created its own exhibitions. Today, IKEA is the world's largest furniture retail chain and has more than 300 stores globally. In 1998, IKEA started its retail operations in China. To meet local laws, it formed a joint venture. The venture served as a good platform to test the market, understand local needs, and adapt its strategies accordingly...
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...Trade-related Challenge: Facebook in China Loretta F. Clark University of Maryland University College Executive Summary As the world is evolving and is also becoming flat, we see how national companies are looking to expand to different regions of the world. Global expansion has a number of complexities and processes. With this expansion there are times when companies hit roadblocks. To overcome the roadblocks, companies should develop entrant strategies including acquiring assistance from their government to negotiate with foreign nations. Facebook is currently witnessing a roadblock in China. China will not allow the Internet social networking site to enter the Chinese market. This trade barrier presents Facebook with challenges; however, the company has options it may pursue to overcome the obstacles. Options include: * Pursuing a partnership with an established Chinese company * Customizing Facebook to isolate the Chinese market * Entering neighboring countries outside of China * Enlisting the assistance of government agencies * Enlisting the help of Non-Government Organizations (NGO’s) Implementing these options gives Facebook differing entrant strategies into the Chinese market. The company may reluctantly have to make some compromises and may have to weigh the cost versus the benefit for entering China. Even though cost is typically financial, Facebook will have to consider what other concessions it will have to make such as filtering content...
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...“How Home Depot could enter Indian Markets” Cohort 41 Justin Widener, Cole Lewis, Daniel Smith, Kacy Jackson, Pramod Sudhakar, Angela Lintz WMBA 6030: Global Strategy November 14, 2013 Executive Summary Home Depot tried and failed to enter China. In hindsight, the errors Home Depot made seem obvious and many. In the analyses below, we examine Home Depot from an Industrial, Resource, and Institutional perspective. Based on our extrapolation of the findings, we ask whether Home Depot can enter the Indian market, and describe our strategy for how Home Depot might successfully expand globally into India. We believe that Home Depot can gain great value from entering India following our strategy. Introduction and Background Home Depot was founded in 1978 by Arthur Blank and Bernie Marcus. They originally started with two stores in the Atlanta area with about 60,000 square feet each. These stores dwarfed the competition in not only size but also in product offering and availability. They started off offering over 25,000 different SKU’s to customers in everything from power tools to simple easy to use items such as tape and glue (Home Depot). The goal was, as a company, to target and create a market for the “Do it Yourself” or “DIY” market. Until the arrival of Home Depot there was such a market but only local mom and pop shops competed. Home Depot provided a place where they could provide a one-stop shop for DIY and could also provide the “know-how” necessary...
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... and it has an outstanding contribution on the Asian market economy growth, Infosys is one of the pioneer Indian companies that positioned the Indian firms on a leading position globally, the company generated revenue of US$ 2 billion in 2006 (Rustogi et al, 2012), and gain more than two third of its revenues from serving many clients in the United states (Dajiworld, 2007), the company success to develop scalable strategy, and create a successful organization has a global brand awareness for quality and efficiency . The report illustrate Infosys expansions plans and strategies in China and summarizing the factors influenced Infosys to establish offshore development center in China, to benefit from the advantages of the low labor cost and the great economic opportunities to have the largest second development center in China, as well analyze the Global Delivery Model of Infosys and its relevance to China, in addition to indentify the major challenges face the Indian IT companies operating in China, and propose solutions to conquer those problems. Table of Contents Background 5 Issue Statemnt 5 Literateur : Factors influenced global expansion strategy 5 Analysis of the problem : Global Delivery Model of Infosys 6 Alternatives Analysis and Selection Criteria : Development Challenges in China 7 Recommendations 9 Action and Implementation Plan 10 References 12-15 Appendix 16 List of Tables and Figures Table...
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...explain the contrasting growth experience of China and Sub Saharan Africa post 1980. Economic growth, put simply, is “an increase in the amount of goods and services produced per head of the population over a period of time”; development is inextricably linked with this economic growth. By utilising theories of economic growth and development we can see how the Chinese and Sub-Saharan African economies have emerged, but, more notably, we can use these to look at patterns from past and present to show their experience and the implications of this growth for the future. Development has become synonymous for industrialisation. Economic growth comes from increasing the Gross Domestic Product (GDP), this is done by producing more through the addition of more capital and labour. As you begin to use up the factors of production the law of diminishing returns can hinder growth. Therefore, a vital factor for the development of emerging markets is technology, which should be harnessed to improve means of production and other such things to see a progressive economy. In this sense I will be looking at both China and Sub-Saharan Africa to see how technology or the lack thereof has been utilised and the implications this has had on their economies. There are a number of factors that have contributed to Sub-Saharan African (SSA) countries generally not experiencing the rates of growth and development as other emerging market regions, such as China. However, there has been a notable number...
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...Corona Beer: Challenges of International Expansion Corona Extra has been the world’s fourth best selling beer in terms of volume in 2005 due to its strategy in differentiation. Corona marketing campaign of “fun in the sun” and its light and citrus flavor helps products to expand its target customers far beyond its competitors. However due to merger and acquisition that occur in the industry, Corona needs to adjust itself in order to sustain its growth and improve its competitive position. Environmental Analysis PEST Analysis Political Factor: * Government regulation prohibits to import alcohol product in some country. * Tax policies on alcohol beverages may result in higher price of alcohol product in some countries. Economic Factor * Trading agreement such as NAFTA, can help firm to benefit from exports its products into the emerging market, however this might also open up the opportunities for new competitors to come into Mexico‘s beer market as well. * Instability of Mexico economic condition can affect the cost of goods sold of the products that export out of the foreign markets. Social Factor * Some countries or areas might prohibit to sell alcohol beverages. * Differentiation between global preferences. For example, beer might be popular in US and Germany, however in Italy and France, wine is more popular. Technological Factor * Technology can improve product quality and can reduce scrap or it can also improve distribution system with...
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...alumina, steaming coal, nickel, and titanium, chrome and manganese ores and alloys. BHP Ltd of Australia and Billion Plc of UK established merger in 2001, and the result was the dual listed company (DLC). BHP Billion becomes one of the world’s largest mining and Petroleum Company. It expands its business in twenty countries, and its major commodities are iron ore, metallurgical coal, energy coal, conventional and unconventional oil and gas, copper, aluminum, manganese, uranium, nickel, and silver. This essay will deeply analysis the effects of BHP Billiton’s sustainability practice on the ownership advantages. It also explains the expansion strategy of BHP Billiton, which is Joint venture and mergers and acquisitions. At last, it will show some risks which are created by the macro and external factors in the mining industry and give some strategies to reduce these risks. Sustainability Practice to Improve O Advantages in the Mining Sector The mining industry...
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...– 27828 Introduction Economies of scope and synergies in business operations are consequences of diversification strategies. It is possible to classify companies according to the type of diversification strategy selected. Unrelated diversifiers are companies that diversify across industry, while related diversifiers are firms that diversify within the industry (Kim, Hwang and Burgers 1989). Companies pursuing related diversification over a period of time have achieved superior performance than companies following an unrelated diversification (Palepu 1985). Amazon has started its business by selling books and music, soon after it incorporated online auctions for airlines tickets and hotel rooms, computer hardware, pet food and pet accessories, electronic cards, toys and consumer electronics. Whereas Amazon has achieved very high volume of sales and gained important market shares in the book industry, the company has never been profitable. As a result, in this essay, in order to determine if Amazon’s decision to diversify so extensively was a wise decision, we will firstly describe the firm business model and the reasons for its success. We will then try to determine if this business model is applicable to Amazon’s diversification strategy as well as the limit of diversification. And finally we will try to evaluate the limit of such strategy in an international context. I Is the business model designed for selling book on internet apply for...
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...the point where it is now the fourth largest on earth, and is expected to be in the top two within the next decade (Business Monitor International, 2006). As a result, China's SMEs are now facing an economy flooded with foreign capital, and with a more open economic climate than in previous years, but also a much more competitive economy, where many of their previous practices are no longer relevant. This piece aims to examine the effect of these changes on the strategies of Chinese SMEs by first examining the role of the SME in the economy, then analysing the strengths and weaknesses of the Chinese SMEs, and the opportunities and threats that have arisen from China's WTO membership. The piece will then examine Chinese SMEs from a strategic perspective, and the impact the the WTO membership has had on said strategies. Finally, the piece will give strategic recommendations for Chinese SMEs that wish to take advantage of the opportunities that WTO membership offers, and also for those SMEs that wish to avoid the challenges it poses. The Role of SMEs in both the International Perspective and the Chinese Perspective Academics have long realised that small and medium enterprises grow to become the major corporations and businesses of the future (Davis et al., 1985). As a result of this view, greater attention has been given to the role of small and medium sized enterprises (SMEs) in contributing to the economic growth of countries over the past twenty years in countries all over the...
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