...PARADIGM INTERNATIONAL OF THEECLECTIC PRODUCTION: A RESTATEMENT SOMEPOSSIBLE AND EXTENSIONS JohnH. Dunning* Universityof Reading and Rutgers University Abstract.Thisarticlereviewssome of the criticisms directed towards of the eclecticparadigm international over production the pastdecade, and restatesits maintenets.The secondpartof the articleconsiders a numberof possibleextensionsof the paradigm concludesby and that it remains robustgeneralframework explaining "a for asserting not of andanalysing onlythe economic rationale economic production and to but manyorganisational impact issuesin relation MNEactivity as well." INTRODUCTION The concept of the eclectic paradigmof international production'was first put forwardby the presentauthorin 1976 at a presentation a Nobel Symposium to in Stockholmon TheInternational Allocationof EconomicActivity.2 intention The was to offera holisticframework which it was possibleto identifyand evaluate by of the significance the factorsinfluencing both the initialact of foreignproduction and by enterprises the growthof such production. choice of the word eclectic The was an ambitiousyet deliberate one. It was meant to convey the idea that a full of of activities enterprises explanation the transnational needsto drawupon several strandsof economic theory;and that foreigndirect investmentis just one of a numberof possiblechannelsof international economicinvolvement, each of which is determined...
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...supported by its locations in 80 countries and diverse workforce from 140 nationalities. Halliburton has one of the world’s largest selections of oilfield products and services due to its massive corporate size and healthy portfolio of subsidiary holding, construction, oilfield, and many other companies (Halliburton). Accountants at Halliburton have dealt with a plethora of judgment calls regarding how exactly to record transactional events. Issues like job order costing, prepaid assets, subcontracting, and future economic benefits from land only begin the list. Difficulties in accounting are inherent in massive conglomerate corporations with unprecedented situations. What executives may have overlooked is the importance of stringent and professional accounting. Not only are Halliburton’s financial statements relied upon by investors, but also the SEC and a number of other interested parties. II. Scandal From 1946 to 2002, the auditing firm Arthur Andersen, LLP provided a variety of attestation and consultation services to Halliburton. A major duty of Arthur Andersen was to audit published financial statements. In a scandal lasting from 1998 to 2002, Halliburton was found to have improperly booked almost half a billion dollars in revenue. Subcontracted construction cost overruns were booked as revenues before subcontractors or customers agreed to pay for them. In this case, the scandal is allegedly deceiving their investors and government. Questionable accounting leading...
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...• • Traditional cost allocation methodologies in firms can provide misleading information about the profitability of products, product lines, customers, and markets. Activity-based costing (ABC) provides more meaningful information about the drivers of costs, the activities performed in a firm, and the relationship between costs and products, customers, markets, and segments. In addition to supplying more detailed and better cost and profitability information, an ABC analysis enables managers to evaluate processes from an activity viewpoint, leading to identification of non value-adding activities and process inefficiencies. ABC does not change overall profitability in a firm; it better aligns cost assignment to the causes of those costs. With better information, better decisions can be made in a firm to improve profitability—this is the power of ABC. • • • Introduction Cost allocation in firms can provide misleading information about the profitability of products, product lines, customers, and markets. Traditional cost allocation practices allocate all manufacturing overhead costs using a single driver such as direct labor hours, direct labor dollars, or machine hours. Sales-related costs are typically ignored. While technically accurate, in most complex organizations a single overhead cost driver is not sufficient to accurately assign the pool of overhead costs to the products that are being produced or the customers that are being served. Many firms—from manufacturing...
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...Determining FDI Potential: Are National Policies and Incentives Sufficient? Foreign direct investment (FDI) is increasingly becoming a preferred form of capital flows to developing countries in recent years, as compared to other forms of capital flows. The reasons for this are not hard to seek. In the context of the gloom and despair of the heavy debt burden plaguing these countries, FDI promises to be the bright ray of hope for harnessing capital flows to the country’s economic development without the pangs of capital repayment with interest. In this context Feldstein and Razin (2000) and Sodka (forthcoming) note that the gains to host countries can take several other forms: • FDI allows transfer of capital and technology, which is not possible through financial investment in goods and services. • FDI also promotes competition in the domestic input market • Profits generated by FDI contribute to the corporate revenue in the host country • Operation of new ventures by FDI leads to employee learning in the host country who learn how to manage and operate the businesses. This contributes to human capital development of the host country. • Profits generated by FDI contribute to tax revenues in the host country FDI is different from other major types of external private capital flows in that it is motivated largely by the investor’s long-term prospects for making profits in production activities that they directly control. Foreign bank lending and...
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...GRADUATE SCHOOL OF BUSINESS STANFORD UNIVERSITY CASE NUMBER: EC-17 November 2000 DELL DIRECT1 In 1995, a manager from a leading Japanese computer company was recounting his company’s plans to conquer the US Personal Computer (PC) market: “We have a strong brand name in consumer electronics, and what’s most important, we build many of the components that are needed in the PC ourselves: monitors, audio equipment, CD-ROM, DRAM, and so on. This will give us a tremendous advantage over American competitors, who have to buy everything outside” [1]. Several years later, it looks like the competitive weapon of this and other Japanese electronics giants had misfired. Hitachi, Sony and Fujitsu have spent vast resources trying to crack the US PC market, but had only captured a marginal share—and they had lost money doing it. At the same time, Texas-based Dell Computer Corporation, founded by 19-year-old Michael Dell in a university dormitory room, was growing rapidly, sustaining a much larger portion of the PC market than all Japanese vendors combined. And while the Japanese PC manufacturers were unable to earn any money in the US market, Dell, which produces no PC components, was highly profitable, grew by more than 50% each year over the 1995-1998 period, and saw its stock grow about 30,000% in a decade (see Exhibit 1 for Dell financial summary). Dell does not manufacture any components, but it can produce custom-built PCs in a matter of hours. How does Dell do it? Why did it succeed...
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...GRADUATE SCHOOL OF BUSINESS STANFORD UNIVERSITY CASE NUMBER: EC-17 November 2000 DELL DIRECT1 In 1995, a manager from a leading Japanese computer company was recounting his company’s plans to conquer the US Personal Computer (PC) market: “We have a strong brand name in consumer electronics, and what’s most important, we build many of the components that are needed in the PC ourselves: monitors, audio equipment, CD-ROM, DRAM, and so on. This will give us a tremendous advantage over American competitors, who have to buy everything outside” [1]. Several years later, it looks like the competitive weapon of this and other Japanese electronics giants had misfired. Hitachi, Sony and Fujitsu have spent vast resources trying to crack the US PC market, but had only captured a marginal share—and they had lost money doing it. At the same time, Texas-based Dell Computer Corporation, founded by 19-year-old Michael Dell in a university dormitory room, was growing rapidly, sustaining a much larger portion of the PC market than all Japanese vendors combined. And while the Japanese PC manufacturers were unable to earn any money in the US market, Dell, which produces no PC components, was highly profitable, grew by more than 50% each year over the 1995-1998 period, and saw its stock grow about 30,000% in a decade (see Exhibit 1 for Dell financial summary). Dell does not manufacture any components, but it can produce custom-built PCs in a matter of hours. How does Dell do it? Why did it succeed...
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...noun: the impetus gained by a moving object Overall, 2013 will be remembered as a solid year for private equity. Although the year started off slowly, activity picked up considerably in the second half, particularly in the world of exits. The fourth quarter of 2013 was one of the strongest quarters on record for PE exits, attributable largely to a robust IPO market. The key topic that must be considered in projecting the industry’s outlook for 2014 is whether it can build upon this momentum, or whether the industry’s capital overhang and competition for quality deals will prove too great a resistive force. While we’ll analyze the industry in its broadest sense, our focus is decidedly on the outlook for middle-market private equity firms―those firms with assets under management between $100 million and $5 billion. Lacking the resources and capital reserves of the private equity industry titans, middle market private equity better reflect whether industry momentum is building or waning. We start by examining last year’s industry activity and transactions. While overall investment dollars soared, deal making was increasingly difficult as the...
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...transformation over the past decade. This redefinition of the work of HR is intended to allow a more strategic focus on talent management and organizational capability while systematizing HUMAN RESOURCE PLANNING 29.2 and controlling the cost of transactional work. Little formal consideration has been given, however, to how these new complex HR organizations should be configured to best achieve these goals. This article highlights the operational challenges created by the most common organization design used by HR departments—the business partner model—and presents an emerging model— the solutions center—that is intended to address these flaws. Each model is described and discussed and a set of considerations for the HR leader is offered in order to maximize the effectiveness of the chosen organization design. Over the last decade there has been a profound shift in the work of the HR function. The publication in 1997 of David Ulrich’s Human Resource Champions spurred HR leaders across various industries to realign their organizations in order to undertake “strategic business partner” work. At the same time, a focus on cost-cutting and efficiency aimed at staff functions in general—and at HR in particular—has pushed much HR transactional work into shared services or to outsourced vendors. For many HR departments, this process of “transformation,” as it is popularly called, has been a wrenching experience. It has required rethinking the fundamental role of the HR function...
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...History of Dhiru Bhai Ambani Introduction * Dhirubhai Ambani is referred as India's "Businessman of the Century". Founder of Reliance Group India. Childhood * Dhirubhai Ambani (Dhirajlal Hirachand Ambani) was born on 28 December 1932, at Chorwad, Junagadh in the now state of Gujarat (India). * Parents Name: Hirachand Gordhanbhai Ambani and Jamnaben. Entrepreneurship * Dhirubhai was the second son of a school teacher and started his entrepreneurial career by selling "pakora" to pilgrims in Mount Girnar. * At the age of 17, Dhirubhai went to Aden (now part of Yemen) and worked for A. Besse & Co. Ltd., the sole selling distributor of Shell products. * Two years later Dhirubhai was promoted to manage the company’s filling station at the port of Aden. * In the year 1958,Dhirubhai Ambani returned to Mumbai and started his first company, Reliance Commercial Corporation, a commodity trading and export house. * The first office was set up at the Narsinathan Street in Masjid Bunder. It was a 350 Sq.in partnership with Champaklal Damani. * In the year 1965, Dhirubhai Ambani started his own company. * In the year 1966, as a first step in Reliance's highly successful strategy of backward integration, he started the textile mill in Naroda, Ahmedabad. * Textiles were manufactured using polyester fibre yarn. Dhirubhai started the brand "Vimal". * Dhirubhai diversified his business with the core specialisation being in...
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...Marketing Management MKTG5561; SE-2, 2015, Seminar 1 Dr Richard L. Gruner Assistant Professor 1 What is Marketing to you? 2 How many marketing messages are we exposed to every day? 3 3000-20,000* every day. most days of your lives. *Source:fluiddrivemedia.com/advertising/marketing-messages/ 4 5 So what can be done? 6 7 8 9 10 ...too often messages fail to stand out. 11 12 But marketing is not just about B2C communications. 13 Who is being targeted in this ad? 14 Nor is Marketing always about selling products. 15 Boycotting products... 16 17 18 And Marketing is not just about tangible products. 19 What’s the product in this campaign? 20 Behaviour Change 21 Can you think of other behaviour change campaigns? 22 23 24 25 26 AND! 27 Marketing is not limited to advertising and communications! Marketers need to be prepared to answer all sorts of strategic questions. Can you think of any? 28 [ ] Do we extend our product line/brand? [ ] How do we fight off a competitor? [ ] How do we push into new markets? [ ] Should we restructure our supply chain? [ ] Change or production processes? [ ] Raise our prices?.... It’s much more than just making ads. 29 In fact...“Marketing is Everything” (Regis McKenna). “Marketing is about all factors that influence a company's ability to deliver value to customers...
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...four main sections: 1. Theoretical framework; 2. Wine market; 3. Chinese wine market; 4. Italian case. First of all we need to understand what we mean when we speak about internationalization. Through a theoretical chapter, using the existing literature about internationalization, we will explore its theories, evolution and which benefits it may bring to the firm that implement it, showing how important it became in the globalized world in which companies work nowadays. Afterward we are going to analyze, thanks to the data taken by reliable sources, the global market of wine, showing its fragmentation, which are the main player and their characteristics. Now that we have a general panorama, we can concentrate on the Chinese market, its cultural and economic features, and the evolution of its wine market. Finally we will focus on the Italian case THEORETICAL FRAMEWORK Studying the literature we can see that there are several studies about internationalization and definition as well such as: “Internationalization refers to the process generated by underlying shifts in transaction costs that produce observable...
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...Gujarat Technological University Syllabus for New MBA Program effective from Academic Year 2011-12 MBA I Semester I Accounting for Managers (AFM) 1. Course Objective: The objective of the course is to acquaint the students with the language of Accounting and to develop in them the ability to evaluate and use accounting data as an aid to decision making. The main purpose is to assist the students in developing skills in problem solving and decision making in the financial area. Emphasis is laid on analysis and utilization of financial and accounting data for planning and control. 2. Course Duration: The course duration is of 36 sessions of 75 minutes each i.e. 45 hours. 3. Course Contents: Module No: Module Content No. of Sessions 70 Marks (External Evaluation) 17 I II Fundamentals of Accounting Basic understanding of accounting, Accounting Concepts, Conceptual framework of financial statements, Accounting Policies, Journal Entries and preparation of accounts - Trial Balance to Balance sheet and profit and loss Account, Recognition of Income and Expenses, Provisions, Contingent Liabilities Accounting Standards and Applicability: Disclosure of Accounting Policies (AS-1), Valuation of Inventories (AS-2), Depreciation Accounting (AS-6), Income Recognition & Accrual Income (AS-9), Accounting of Fixed Assets (AS-10), Accounting for Intangible Assets (AS-26), Accounting for Investments (AS-13), 7 7 17 III IV V Preparing and Understanding Financial Statements...
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...The Knowledge Community HfS Research Collaborative Sourcing Intelligence& IT for Global Business Outsourcing Smart Governance Disruptive Technologies Insight. Advice. Benchmarking. Services State of the Outsourcing Industry 2013: Presentation to Genpact, March 5th 2013 Phil Fersht, Founder and CEO, HfS Research phil.fersht@hfsresearch.com Copyright © 2013 HfS Research Ltd. State of the industry 2013 - Agenda • Market Size and Forecast • Key Industry Dynamics • Competitive Landscape • Market Wrap Copyright © 2013 HfS Research Ltd. Outsourcing Smart Governance Disruptive Technologies 2 State of the industry 2013 - Intro • • • • • • Conducted December 2012 / January 2013 The largest-ever quantitative industry study covering both IT and business process outsourcing Respondents included 1355 stakeholders across enterprise buyers, service providers and consultant/influencer organizations The aim of the survey was to understand their views, observations and intentions for 2013 and beyond, when it comes to outsourcing IT and business processes Survey was conducted with the support of KPMG This presentation contains a set of slides with the top level results of the survey Copyright © 2013 HfS Research Ltd. Outsourcing Smart Governance Disruptive Technologies 3 Key Highlights: BPO Adoption and Outlook: • • • • • • • Deal activity rebounds Market forecasted to grow Attitudes towards BPO have gone “back to basics” Attitude of buyers...
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...| 53 | EPC Industry in India: Issues and Challenges EPC Report 4 Cover pages.indd 53 2/20/2011 8:19:18 PM Contents Chemtech Foreword KPMG Foreword Executive Summary Acronyms Used Methodology Coverage and Scope Setting the Context Value Creation Strategies Key External Drivers and Issues Key Internal Issues End-Use Industry Views EPC Industry in India Action Agenda for Sustained Growth Acknowledgements About Chemtech About KPMG in India 48 51 52 52 2 3 4 4 8 8 10 17 22 29 33 |1 | EPC Industry in India: Issues and Challenges EPC Report New.indd 1 2/20/2011 8:13:28 PM CHEMTECH Foreword trong infrastructure and industry are critical for India as the country sees leapfrogging growth. As far as both these sectors are concerned, India is in a sweet spot, which has created multitude of opportunities in the fields of engineering, capital goods and construction. S Though, India has witnessed significant investments in both industrial and infrastructure space, the growth has remained restricted due to various weaknesses of the Indian EPC industry and difficulties for the foreign players to ply in the market. Jasu Shah Founder & Chairman, CHEMTECH Foundation At this juncture, it is an imperative to address the challenges, which restrict the growth of this sector in India and will continue to repress industrial development lest addressed. CHEMTECH has made an attempt to address the issues faced by the EPC industry through each edition of its international...
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...Analysis, Part 3: Assessing Business Model 胡秋江教授 1 What We Shall Discuss This lecture is Part 3 of our discussions on pre-start analysis. In this final part, we shall discuss the following: What business models are and what they are not The elements of a business model Assessing new venture business models: What makes a good business model Examples of effective and flawed business models 2 Business Opportunity & Business Model On recognizing a promising opportunity, an entrepreneur will formulate hypotheses relating to the following: The likely customers that the venture should target How the opportunity can be exploited to develop and deliver products/services that target customer need or want at an appropriate cost, allowing the venture to make a good profit The resources required to pursue the identified opportunity In formulating these hypotheses, the entrepreneur is essentially formulating the underlying premises for a business model. 3 What Is a Business Model, Really? ‘Business model’ is a widely used but remains a fuzzy concept with no universally accepted definition. Nevertheless, a good business model is essential to every successful enterprise, new or established. It is… A valuable analytical and communications tool Tool for realizing value from technological innovation Our working definition of business model: A representation of (1) what value a new venture proposes to offer to customers, (2) how it proposes to create and deliver...
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