...IBM’s International Assignment in India ------------------------------------------------- Executive Summary Despite years of war and economic setbacks, India has emerged as one of the world’s most promising emerging markets. Many international firms have sought to gain a foothold in India for two reasons. One reason is to target a massive market with the fourth largest purchasing power in the world, and another is to utilize a seemingly abundant supply of low cost yet skilled English speaking labor. IBM is one of these companies and has seen great success in India in the past decades. IBM’s Indian subsidiary now earns 30% of the company’s total revenue, but recent changes in both India and IBM present a new set of challenges for the company’s continued presence in India. This paper seeks to identify these challenges and offer potential solutions to how IBM can continue to grow their highly profitable operations in India. Vivek Sahay Roni Sims Hank Scurry Nidhi Prakash Spoorthi Purumala India Overview With the world’s fourth largest GDP in purchasing power parity and second largest population base, India has been a popular market in the past two decades, particularly in the IT sector. The country has undergone a lot of growth in the past century. After becoming independent from British rule in 1947, the subcontinent underwent a period of violence, including two wars with Pakistan and one with China. The last war ended in 1971; however, tensions with both the countries remain...
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...Assignment on- “What are the interactions between Climate Change & Multinational Enterprise?” [pic] [pic] Prepared For Md. Mamoon Al Bashir Lecturer Department of Business Administration East West University Prepared By Group Members: Ziniya Tabassum Anwar (2010-2-10-031) Ahsan M Rahik (2010-2-10-099) Najnin Akhter (2010-2-10-079) Anower Kabir Duke (2008-3-10-030) Farjana Akter Parul (2010-2-10-100) Course Code: ITB 301 Course Title: International Business Section-5 Submission Date 24/07/2013 [pic] EAST WEST UNIVERSITY Letter of Transmittal 24 July, 2013 Md. Mamoon Al Bashir Lecturer Department of Business Administration East West University Subject: Submission of Assignment on “What are the interaction between Climate Change and Multinational Enterprise?” Dear Sir, It is a great pleasure and privilege to present the assignment titled “What are the interaction between Climate Change and Multinational Enterprise” which was assigned to us as a partial requirement for the completion of this course ITB 301 (International Business). Throughout the study we have tried with the best of our capacity to accommodate as much information and relevant issues as possible and tried to follow the instructions as you have suggested. We tried our best to make this assignment as much informative as possible. We sincerely believe that it will satisfy your requirements. We however sincerely believe that this...
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...Assignment on- “What are the interactions between Climate Change & Multinational Enterprise?” [pic] [pic] Prepared For Md. Mamoon Al Bashir Lecturer Department of Business Administration East West University Prepared By Group Members: Ziniya Tabassum Anwar (2010-2-10-031) Ahsan M Rahik (2010-2-10-099) Najnin Akhter (2010-2-10-079) Anower Kabir (2008-3-10-030) Farjana Akter Parul (2010-2-10-100) Course Code: ITB 301 Course Title: International Business Section-5 Submission Date 24/07/2013 [pic] EAST WEST UNIVERSITY Letter of Transmittal 24 July, 2013 Md. Mamoon Al Bashir Lecturer Department of Business Administration East West University Subject: Submission of Assignment on “What are the interaction between Climate Change and Multinational Enterprise?” Dear Sir, It is a great pleasure and privilege to present the assignment titled “What are the interaction between Climate Change and Multinational Enterprise” which was assigned to us as a partial requirement for the completion of this course ITB 301 (International Business). Throughout the study we have tried with the best of our capacity to accommodate as much information and relevant issues as possible and tried to follow the instructions as you have suggested. We tried our best to make this assignment as much informative as possible. We sincerely believe that it will satisfy your requirements. We however sincerely believe that this...
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...Jay Soss 1/23/12 IBUS-301 Professor Harasamophaka Bavarian Motor Works (BMW): An Analysis on its Success as a Multinational Enterprise Introduction BMW Group manufactures products under three brands: BMW, MINI and Rolls-Royce Motor Cars. BMW is a Multinational Enterprise that has been manufacturing and marketing luxury products for about a century. The company is currently the largest premium car maker in the world, followed closely by Mercedes-Benz and Audi. Their headquarters are located in Munich, Germany, and the building itself is also a well-designed masterpiece allowing visitors a glimpse inside the techniques utilized to keep BMW a true competitor on the global scale. This Multinational Enterprise is made up of twenty three production and assembly plants in thirteen countries, forty one sales subsidiaries all over the world, and ten locations in the Research & Development network in five countries. According to the company's current annual filing, it had FYE 12/31/2011 revenue of $90.9 billion and employs one hundred thousand and three hundred and six people (Bayerische). These values ensure its positions as one of the ten largest cars manufactures in the world. Bavarian Motor Works has been able to sustain its position as a successful Multinational Enterprise by adapting to the changing global marketplace through adopting environmentally friendly policies, smarter spending, relevant marketing and partnering with other automobile companies to continuously strengthen...
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...The trick is to learn to innovate and manage quality while remaining nimble.(John Jullens) In just a sentence, John Jullens explains the key to success when Emerging Market Multinational Enterprises internationalise, and how the flexibility and innovation associated with EMMEs is exactly why they have what it takes to take over the world, per say. Whether they are moving reactively, or proactively, EMMEs have the advantage over many developed markets due to the opportunities that are presenting themselves in recent times, such as having a new market to target, having access to a cheap and skilled workforce, and possible partnerships in the new country. But with these opportunities, come great risks and challenges, such as competition, psychic distance, and initiating sustainable strategies; challenges that must be dealt with through thorough strategy and planning, so as to achieve the potential these Enterprises possess. EMMEs are enterprises from Emerging economies, that engage in foreign direct investment (FDI) and owns, or in some ways controls, value adding assets in more than one country (Dunning & Lundan, 2008:3). They are emerging by virtue of their fast economic growth (http://www.forbes.com/2010/05/27/winning-in-emerging-markets-opinions-book-excerpts-khanna-palepu.html), and according to the Boston Consulting group, they are using 5 basic strategies to strategically take on the world. (Lecture slides) - Taking brands from local to global - Transform local engineering...
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...[1] "The study of international business is fine if you are going to work in a large multinational enterprise, but it has no relevance for individuals who are going to work in small firms." Evaluate this statement. Comments: Globalization is changing the world economy. Firms, even small ones, can no longer ignore events going on outside their borders because what occurs in one country has implications for the rest of the world. Individuals who believe they can act in isolation by working for a small firm are not being realistic, but rather myopic and insular. Today, thanks to advances in technology, many small firms sell and source internationally very early in their evolution, those that fail to take advantage of international opportunities may not achieve their full potential, and ultimately may fail as competitors that do recognize the importance of international business dominate. In the United States, for example, almost 90 percent of firms that export employ fewer than 100 people. They also account for more than 20 percent of U.S. exports. [2] How have changes in technology contributed towards the globalization of markets and of production? Would the globalization of products and markets have been possible without these technological changes? Comments: Technological change has made globalization a reality. Major advances in communication, information processing, and transportation have brought the world closer together. The development of the microprocessor...
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...– Globalization and the Multinational Enterprise Eiteman, Stonehill & Moffett Multinational Business Finance, 12th Ed A Multinational Enterprise (MNE) is one that has operating subsidiaries, branches, or affiliates located in foreign countries. a. MNEs may be headquartered anywhere in the world. b. MNEs are often owned by a mixture of domestic and foreign stockholders. c. Ownership in a MNE may be so dispersed internationally that they may be known as transnational corporations. d. MNEs are often managed from a global perspective rather than from the perspective of any single country. e. The term enterprise is used rather than corporation because as business move into many emerging markets, they will enter into business arrangements with various types of enterprises that are not corporations such as joint ventures, strategic alliances, or simply operating agreements with enterprises that may not be publicly traded or even privately owned, but are actually extensions of the government. Domestic firms may export their products or not. Domestic firms may license foreign firms to conduct the domestic firm’s foreign business. Domestic firms are not protected from international competition. Purely domestic firms must understand the multinational nature of business today. Globalization and Creating Value in the Multinational Enterprise To become a successful multinational enterprise requires (1) an open marketplace...
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...ECO 305 WK 7 QUIZ 6 CHAPTER 9 To purchase this visit here: http://www.activitymode.com/product/eco-305-wk-7-quiz-6-chapter-9/ Contact us at: SUPPORT@ACTIVITYMODE.COM ECO 305 WK 7 QUIZ 6 CHAPTER 9 ECO 305 WK 7 Quiz 6 - Chapter 9 MULTIPLE CHOICE 1. "Risk spreading" is a motive most likely to be served when firms undergo: a. Horizontal integration b. Vertical integration c. Conglomerate integration d. None of the above 2. The source (home) location of most of the world's leading multinational enterprises is: a. North America and Europe b. North America and Asia c. Europe and South America d. Europe and Asia 3. Which type of multinational diversification occurs when the parent firm establishes foreign subsidiaries to produce intermediate goods going into the production of finished goods? a. Forward vertical integration b. Backward vertical integration c. Forward horizontal integration d. Backward horizontal integration 4. Suppose that an American automobile manufacturer establishes foreign subsidiaries to market the automobiles. This practice is referred to as: a. Forward vertical integration b. Forward conglomerate integration c. Backward vertical integration d. Backward conglomerate integration 5. Suppose that a steel manufacturer headquartered in Japan sets up a subsidiary in Canada to produce steel. This practice is referred to as: a. Conglomerate integration b. Forward vertical integration c. Backward vertical integration d. Horizontal integration ...
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...Guidelines for Multinational Enterprises (the Guidelines) are recommendations addressed by governments to multinational enterprises. They provide voluntary principles and standards for responsible business conduct consistent with applicable laws. The Guidelines aim to ensure that the operations of these enterprises are in harmony with government policies, to strengthen the basis of mutual confidence between enterprises and the societies in which they operate, to help improve the foreign investment climate and to enhance the contribution to sustainable development made by multinational enterprises. I. Concepts and Principles 1. The Guidelines are recommendations jointly addressed by governments to multinational enterprises. Observance of the Guidelines by enterprises is voluntary and not legally enforceable. 2. Since the operations of multinational enterprises extend throughout the world, international co-operation in this field should extend to all countries. 3. A precise definition of multinational enterprises is not required for the purposes of the Guidelines. These usually comprise companies or other entities established in more than one country and so linked that they may co-ordinate their operations in various ways. While one or more of these entities may be able to exercise a significant influence over the activities of others, their degree of autonomy within the enterprise may vary widely from one multinational enterprise to another. II. General Policies Enterprises should:...
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...Case Analysis: The Evolving Strategy at IBM IBM’s CEO, Sam Palmisano, likes to talk about the evolution of global strategy at one of the world’s largest computer enterprises. According to Palmisano, when IBM first started to expand internationally, it did so in the classic “international” pattern of many enterprises, undertaking most of its activities at home, and selling its products internationally through overseas offices. By the time Palmisano joined IBM in 1972, however, it had already moved away from this model, and was by then a classic “multinational” enterprise, with mini IBM’s in major national markets around the world. This structure made sense for IBM in the 1970s, given that many markets were still segmented from each other by high barriers to cross-border trade and national differences in business practices often required considerable localization. In recent decades, however, IBM has been moving away from this model and toward one that Palmisano characterizes as a “globally integrated enterprise.” In his words: “We are locating work and operations anywhere in the world based on economics, expertise, and the right business environment. We are integrating those operations horizontally and globally. We used to have separate supply chains in different markets. Now we have one supply chain, a global one. Our R&D has been global for many years, with research and software development carried out in...
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...Abstract Multinational hotel companies, often integrated with travel agencies and tourism businesses, play an important role in the tourism industry in developing countries. Introduction of multinational hotel companies is always regarded as an opportunity to benefit host countries through provision capital and market connections. However, the activities of multinationals could also be threats to these countries. This paper reviews the potential costs of multinational hotel companies involvement like decreased economic benefits, foreign domination and negative environmental and cultural consequences. Furthermore, it illustrates some possible solutions for developing countries to reduce the adverse effects which could balance the advantages and disadvantages of multinational involvement and create a brighter future. 1. Introduction A multinational hotel companies, as a type of multinational enterprises, which is identified as an enterprise that owns or controls value-adding activities in the accommodation sector in two or more countries. It is widely accepted that most of developing countries are seeking opportunities to introduce multinational hotel companies because developing countries could obtain several benefits from the presence of multinational hotel companies, such as provision of capital, transfer of technical and managerial expertise, provision market connections,etc. It is true that multinational hotel companies can contribute to the growth of economy in...
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...Running head: A SUCESSFUL FDI ASSIGNMENT 1 A SUCCESSFUL FDI BY Darrell Gilbert Strayer University Dr. Sol Drescher International Business 305 May 01, 2011 The Creation of Globe Diesel Inc Globe Diesel is a Multinational Enterprise that is known for its innovative production of heavy duty construction equipment. Established in 1985 Global Diesel gained its recognition through the production of high quality construction equipment, super sized diesel engines, and other construction related services. Currently based in the United States, Globe Diesel has provided equipment for construction contractors throughout the west coast area and overseas. Their tangibles include financial, physical and technological resources that include an inventory of raw materials, steel, rubber, hydraulics and engine components. In addition, the well established company over the years has acquired human, innovative, and reputational resources which give them a competitive advantage. Consideration this, Globe Diesel has undertaken the activities in mass production of super sized construction machines such as dump trucks, excavators, cement trucks, and earth movers. Although Globe Diesel operates ten manufactures located throughout the United States, the challenging task of managing multiple activities in the production of construction machinery could prove to be troublesome, not to mention that machinery of this size and magnitude are costly to produce. These factors were influential...
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...Homework Week 5 Jose Vasquez DeVry University BUSN-427 Global Issues in Business Professor Rasiah 10/4/12 Homework Week 5 International Business Machines (IBM) first step to expand was internationally which was done by the classical international pattern. The classic international pattern was simply enterprises doing activities at and selling product overseas through sale offices. When Palmisano joined IBM in 1972, it had already moved away from the international approach and was practicing the multinational enterprise. The multinational enterprise in this case was small IBM’s across major national markets across the globe. IBM had to change its strategy again to one that Palmisano called a “globally integrated enterprise”. What he meant was that operations would be placed across the world that encompassed economics, expertise, and the right business environment. In order to achieve this globally integrated enterprise IBM located: its semiconductor R&D and manufacturing operation in Vermont and New York, its global procurement center in China, global services in India, and IBM’s external and internal websites which are supported in Ireland and Brazil. There were three reasons why IBM employed this new strategy. The first was that the world economy had to incorporate the concept of globalization in order to survive. The second reason was one that IBM customers started which was shifting toward global integration. The last reason was that IBM was being to experience...
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...increases. AACSB: Analytic Bloom's: Remember Difficulty: Easy Learning Objective: 01-03 Topic: The Changing Demographics of the Global Economy 108. (p. 22) General Electric has productive activities in a number of countries. As a result, it would be appropriate to refer to General Electric as a _____ corporation. A. regional B. pan-American C. universal D. multinational A multinational enterprise (MNE) is any business that has productive activities in two or more countries. AACSB: Analytic Bloom's: Remember Difficulty: Easy Learning Objective: 01-03 Topic: The Changing Demographics of the Global Economy 109. (p. 22) Since the 1960s, there have been two notable trends in the demographics of the multinational enterprise. These two trends have been: A. the rise of medium-sized enterprises and the decline of small multinationals. B. the decline of non-U.S. multinationals and the rise of unionized organizations. C. the decline of non-U.S. multinationals and the growth of nationalized institutions. D. the rise of non-U.S. multinationals and the growth of mini-multinationals. The rise of non-U.S....
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...are multinational enterprises (MNEs) sometimes criticized for their activities in host countries, particularly in the Third World? Identify and evaluate these criticisms. A multinational enterprise “owns and controls operations in more than one country.” The headquarters of the MNE are based in the home country and it is referred to as the parent firm. The parent firm has one or more affiliates in a foreign country. The affiliate is known as a foreign affiliate and the foreign country is called the host country. There are many MNEs present throughout the world and the largest include Wal-Mart in the USA, BP in Britain, and Toyota in Japan. In the developing countries PDVSA is the largest MNE. Multinational enterprises use “flows of foreign direct investment” to finance their foreign affiliates. These capital flows change the industrial composition of production and employment in both the home and host countries. The flows are usually small compared to the total financing of the affiliate which also come from lenders and investors. The multinational does not only finance its foreign affiliates through flows of foreign direct investment but also provides affiliates with intangible assets for them to use. These include proprietary technology, “skills specific to the organizational function of the firm”, product differentiation and brand names and large amounts of financial capital. There has been much concern over whether the activities of multinational enterprises conflict...
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