Discuss the similarities and differences between global, international and regional business.
International business is the business which works in different countries but does not exists across the globe. International business is generally prevalentwith small firms and organization. Global business is the business which operates across the world. Regional business is the business which operates in a particular region.
Example: McDonalds has expanded its reach not only to the local US market but also to different countries. It has expanded its reach by following transnational strategy.
It has expanded its reach particularly by following franchising. The concept of franchising is the key for McDonald’s world wide success. Through this they have ensured consistency of quality and uniformity of product from location to location and country to country. McDonalds key objective was global standardization with an statement ‘Expand our mindset by sharing best practices and leveraging our best people resources around the world’. The strategy of McDonalds relies on achieving low costs and prices with reliable quality and value for money. The company’s strategy is based on knowledge of modern lifestyles, young people tastes, food production processes and service levels coupled with a strong brand image, its constant product innovation and effective marketing tools.
McDonalds follows transnational strategy to reach its customers globally. To facilitate global reach McDonalds follows Local preferences of products by customers. The overall strategic mission and vision of the company is based on the resources and competence of the organization and the extent of industry and market globalization. McDonalds took into consideration the expanding market and increasing needs of the consumers and the changing preferences and tastes of consumers of different countries of its operations.
McDonalds focuses on the needs of every nation so as to cater to the specific needs of the customers of every nation and thus follows transnational strategy.
[7.5 marks]
Discuss the role of culture in international business.
Understanding culture is crucial when a company does across borders. For international companies to be successful, in a global society they must adapt to, relate to, and understand the culture of the countries where they conduct business.
Culture is an essential part that defines the individual, a human community and different social organization. Culture is basically the values, beliefs, perception and traditions which shape the behaviour of an individual. “Culture is defined as the collective mental programming of the people in the environment. Culture is not characteristics of the individuals; it encompasses a number of people who are conditioned by same education and life experience” (Hofstede) . Thus, it can be said that the culture is affected by the place we live, time, language we use, traditions followed. So each country has different culture.
With the increase in global trade and globalization the need to know the culture of different nations as important as it will facilitate the better working. Each individual has different attitudes, perception and value towards certain things, these are the main things which helps in shaping the culture of an individual. Belief is a thought which an individual hold about a particular thing, this is highly influenced by the place the individual live in. Culture is an unconscious thing which comes in an individual while the development of his personality.
Communication is based on culture. One perceives and draws conclusion of the communication on the basis of what he has learned. The main problems faced in the cross cultural communication are body position and movements, each country or culture interprets the movement or non verbal communication differently. For example if an individual moves his hand to and fro, it can be interpreted as a good bye in America and No in Europe.
[7.5 marks]
Outsourcing is the key strategy in global supply chain. Discuss.
Outsourcing refers to giving out a portion of the work to another nation in order to have it done in a better and more efficient way. It may be within the country or may be given to a firm in another nation. U.S. manufacturers become vulnerable to offshore outsourcing as they have to compete with them.In cases of not being able to perform a task efficiently and effectively, outsourcing becomes a blessing and helps the firm achieve a lot of savings of effort, time and capital. A firm might not be able to handle an order completely, but would be extremely competent at delivering some of the tasks. In such cases, it is essential that the firm opts for outsourcing and delivers the completed product or service to the final customer. Outsourcing can be based on technological outsourcing or outsourcing of a particular business function. In any of these cases there is a requirement of consideration of certain factors which includes the cost benefit analysis as one of the most important considerations. It really matters as the cost of the final product is greatly influenced by this strategic decision of outsourcing.The outsourcing market has experienced strong growth over the last several years because of businesses' need to focus on core competencies, Web implementation initiatives, consolidation across industries, and a tight labor pool. The outsourcing of noncore, transaction-based processes has gained significant momentum over the last few years as organizations have become more comfortable with the concept of outsourcing and its advantages.
Organizations elect to outsource for a variety of reasons. Some of these reasons are tactical, while others are strategic. No one would seriously expect an oil company to outsource its exploration and refining functions; pharmaceutical companies probably would not outsource their research and development; and few, if any, major automakers would consider out-sourcing their production planning or marketing campaigns. These activities are core to their businesses and often the means for differentiation in the marketplace and a source of competitive advantage. Businesses outsource their noncore functions, such as payroll and IT.
In the urge to downsize, “right size,” and eliminate headquarters staff, and to focus on value-added activities and core competencies in order to survive and prosper, public and private organizations have outsourced an extremely broad range of functions and activities formerly performed in-house. Some activities, such as janitorial, food, and security services, have been outsourced for many years. Information systems (IS) is one activity that has received much attention recently as a target for outsourcing.
Other popular outsourcing targets are mail rooms, copy centers, and corporate travel departments. Almost no function is immune to outsourcing. Accounts payable, human resources, marketing/sales, finance, administration, logistics, engineering, and even purchasing are examples of functions now outsourced but previously done in-house. The company may outsource the entire function or outsource a part of it and keep the remaining part as in-house. Like an IT firm can outsource the technical part but may retain the basic things so as to focus on lower purchases. The function needs to be identified and then segregating the same in potential components which can be kept in house and outsourced.
[7.5 marks]
Discuss the theories of competitive advantage.
Competitive advantage is the most important and crucial strategy for the organization to achieve and to get benefited with this strategy for the long run of business. Since, it is a kind of integrated strategy of cost minimization and profit or wealth maximization. It makes the thing effect by making the optimal use of the resources to get the maximum benefit from this. So, the organization could make the most perfect and effective move at this age of competitive scenario.
According to Michael Porter, there are basically two types of competitive advantage:
Cost advantage and differentiation advantage strategy. These two aspects are very important for the competitive advantage as the cost is one of the most important and crucial factor for any business to make it effective and efficient and on the other hand differentiation strategy also plays a vital role to make an effective and efficient move to gain the core competency and finally helps in achieving the competitive advantage for the long run of business.
Differentiation can be achieved by innovation of new and value added products, through an integrated and enhanced customer service. Cost leadership can be achieved through economies of scale in production and distribution and optimal utilization of resources.
Competitive advantage is the most crucial and important strategy now a days that makes an organization effective and efficient for the long run of business and also helps to cut the competition in the market.
[7.5 marks]
Saturday, October 1, 2011
INTERNATIONAL BUSINESS Asssigment 1
What is the impact of Japan’s Tsunami crisis on the world economy?
[10 marks]
Japan the third largest economy in the world behind china and US has been suffering from world’s largest and costliest natural disaster of a deadly earthquake and huge tsunami. This not only affected Japanese economy but the impact is being felt on the world economy. Before this disaster Japan was contributing 18% to the world’s economy which fell to only 9% after this problem.
Process of exports and imports the major dependence business is affected by this disaster and raised fear of high interest rates. Various numbers of manufacturing companies are in Japan which is not able to produce and trade hence not able to fulfill the needs of various economies. The various sector in which Japan faced a trouble are car industry, electronics etc. this disaster halted the orders because of no production which may increase the prices also for the products in near future.
Panic on trading can also be felt on Tokyo’s stock exchange which is hammering markets worldwide.
The industry of smart phones and computers are also harmed because Japan supplies chips for making these products and in turn affected tech companies all over.
Global oil markets are also hampered as Japan was the biggest importer of oil because of presence of more industries but after the disaster many of the companies are shut down hence consumption of oil is near to nil due to which prices of barrel decreased.
Reconstruction of Japan economy and the northeastern coast of Japan could even strike heavily on the growth of economy
In order to combat with the problem and to raise money Japan will be selling some of holdings of US government debts which would push the prices of US treasury bonds down which may raise interest rates of US.
Even steel mills are also expected to suffer as demand is likely to reduce as industries are shut down which affects iron ore industry. There may be also problem arise of fuel in Asian countries as Japan is main exporter of fuel.
Toyota decided to manufacture its products in ASEAN countries. What factors do you think Toyota considered in selecting ASEAN countries as the site for the factories? Who benefits and who losses from the new plant in ASEAN? Is the firm’s decision consistent with OLMA model?
[10 marks]
ASEAN is the name given to the Association of Southeast Asian Countries. It was formed on 8th August, 1967 and till date the total number of countries in this association has gone up to 19. Some of the major countries in this association are Singapore, Indonesia, Thailand, and Malaysia. The business philosophy of Toyota Company is stable and a long term growth by developing those activities which focus on the importance of close relationships between society, individuals, the global environment and also the world economy. As Toyota is planning to consider an ASEAN country for its new manufacturing plant, it will go in favor of the company strategy. The people or the customers in these countries also have the same vision as the company has. Not only this , the vehicles produced by Toyota is within the buying level of the citizens in these countries than any other European company. One can observe considerable increase in the sale of Toyota automobile in ASEAN countries. Moreover the culture of these countries is somewhat similar to Japan and hence there is no distance problem for the company even. Moreover, the trade integration between Asian nations also makes the business of Toyota move smoothly. After going through all the above points, it seems that this new business strategy will go in the positive direction for the profit of Toyota. The major loss from this step will be to the competitors of the company, basically European cars. The European countries are expensive than the cars produced by Toyota and the major population living in ASEAN countries comprises of middle level income. So, more people will prefer to buy cheaper product having good quality. This is what Toyota is providing to the masses. Though it will be a bit difficult for the company to replace the competitor completely but if with some new technologies and ways, it gets replaced then ASEAN countries will be the major contributor in the company’s profits
How are the components of international strategy (scope of operation, resource deployment, distinct competency) likely to vary across different types of corporate strategy (single business, related diversification and unrelated diversification)
[10 marks]
In today’s turbulent business environment, corporate should be flexible and responsive. Corporate parent in a multi firm organization can facilitate creating strategically organization, which have cascading effect on divisions under its control, which can become a true value driver. From the last fifty years, there has been a rapid change in the global economy. There has been a tremendous development in the world economic integration and some of the standardized products. The prime components of international strategy of any business organization are the scope of its business operation, resource deployment of the product and most important its competitors across the international boundaries. International business strategy can be defined as all those set of activities which can help in managing organizational business at both national and international level. It helps in the achievement of competitive advantage over its competitors at both the levels. As the corporate culture, basic culture varies across the world; it becomes entirely necessary for the organization to make its strategy as per the demand of the country in which the operation is going on. Customers today expect these things, making it necessary for firms to adopt strategic responses that emphasize speed, innovation, cooperation, quality, and cost effectiveness. The foreign policy of any country is one of the important policies of a country. There are number of terms and decisions regarding the foreign trade, foreign investments and relationship between the countries. Today is the time of globalization. If the economy of a country is good the only the country will be capable to establish profitable trade relations with the foreign countries. Otherwise due to any reason, if the country is facing slum in economy or if its economic growth rate is low, then the foreign countries will think whether they should trade with that country or not. In this way the economy affects a lot in foreign policy making decisions.
[10 marks]
Japan the third largest economy in the world behind china and US has been suffering from world’s largest and costliest natural disaster of a deadly earthquake and huge tsunami. This not only affected Japanese economy but the impact is being felt on the world economy. Before this disaster Japan was contributing 18% to the world’s economy which fell to only 9% after this problem.
Process of exports and imports the major dependence business is affected by this disaster and raised fear of high interest rates. Various numbers of manufacturing companies are in Japan which is not able to produce and trade hence not able to fulfill the needs of various economies. The various sector in which Japan faced a trouble are car industry, electronics etc. this disaster halted the orders because of no production which may increase the prices also for the products in near future.
Panic on trading can also be felt on Tokyo’s stock exchange which is hammering markets worldwide.
The industry of smart phones and computers are also harmed because Japan supplies chips for making these products and in turn affected tech companies all over.
Global oil markets are also hampered as Japan was the biggest importer of oil because of presence of more industries but after the disaster many of the companies are shut down hence consumption of oil is near to nil due to which prices of barrel decreased.
Reconstruction of Japan economy and the northeastern coast of Japan could even strike heavily on the growth of economy
In order to combat with the problem and to raise money Japan will be selling some of holdings of US government debts which would push the prices of US treasury bonds down which may raise interest rates of US.
Even steel mills are also expected to suffer as demand is likely to reduce as industries are shut down which affects iron ore industry. There may be also problem arise of fuel in Asian countries as Japan is main exporter of fuel.
Toyota decided to manufacture its products in ASEAN countries. What factors do you think Toyota considered in selecting ASEAN countries as the site for the factories? Who benefits and who losses from the new plant in ASEAN? Is the firm’s decision consistent with OLMA model?
[10 marks]
ASEAN is the name given to the Association of Southeast Asian Countries. It was formed on 8th August, 1967 and till date the total number of countries in this association has gone up to 19. Some of the major countries in this association are Singapore, Indonesia, Thailand, and Malaysia. The business philosophy of Toyota Company is stable and a long term growth by developing those activities which focus on the importance of close relationships between society, individuals, the global environment and also the world economy. As Toyota is planning to consider an ASEAN country for its new manufacturing plant, it will go in favor of the company strategy. The people or the customers in these countries also have the same vision as the company has. Not only this , the vehicles produced by Toyota is within the buying level of the citizens in these countries than any other European company. One can observe considerable increase in the sale of Toyota automobile in ASEAN countries. Moreover the culture of these countries is somewhat similar to Japan and hence there is no distance problem for the company even. Moreover, the trade integration between Asian nations also makes the business of Toyota move smoothly. After going through all the above points, it seems that this new business strategy will go in the positive direction for the profit of Toyota. The major loss from this step will be to the competitors of the company, basically European cars. The European countries are expensive than the cars produced by Toyota and the major population living in ASEAN countries comprises of middle level income. So, more people will prefer to buy cheaper product having good quality. This is what Toyota is providing to the masses. Though it will be a bit difficult for the company to replace the competitor completely but if with some new technologies and ways, it gets replaced then ASEAN countries will be the major contributor in the company’s profits
How are the components of international strategy (scope of operation, resource deployment, distinct competency) likely to vary across different types of corporate strategy (single business, related diversification and unrelated diversification)
[10 marks]
In today’s turbulent business environment, corporate should be flexible and responsive. Corporate parent in a multi firm organization can facilitate creating strategically organization, which have cascading effect on divisions under its control, which can become a true value driver. From the last fifty years, there has been a rapid change in the global economy. There has been a tremendous development in the world economic integration and some of the standardized products. The prime components of international strategy of any business organization are the scope of its business operation, resource deployment of the product and most important its competitors across the international boundaries. International business strategy can be defined as all those set of activities which can help in managing organizational business at both national and international level. It helps in the achievement of competitive advantage over its competitors at both the levels. As the corporate culture, basic culture varies across the world; it becomes entirely necessary for the organization to make its strategy as per the demand of the country in which the operation is going on. Customers today expect these things, making it necessary for firms to adopt strategic responses that emphasize speed, innovation, cooperation, quality, and cost effectiveness. The foreign policy of any country is one of the important policies of a country. There are number of terms and decisions regarding the foreign trade, foreign investments and relationship between the countries. Today is the time of globalization. If the economy of a country is good the only the country will be capable to establish profitable trade relations with the foreign countries. Otherwise due to any reason, if the country is facing slum in economy or if its economic growth rate is low, then the foreign countries will think whether they should trade with that country or not. In this way the economy affects a lot in foreign policy making decisions.
Sunday, June 12, 2011
Best 2011 Campaign List
January 2011 – “I am HSSEQ (Honourable, Sober, Safer, Educated, and Questionable)”
February 2011 – “AFE (Alert For Emergency)”
March 2011 – “BOSS (Boat Operation Safe & Save)
April 2011 – “FOUL (Find Out Unsafe Level) out”
May 2011 – “It’s m(a)y Day”
June 2011 – “BLOSSOM (Best Level Of Satisfaction Ship Owner / Manager)”
July 2011 – “THUMPS (Target High Up Mountain Peak Success) up “
August 2011 – “POLSC (Plan, Organize, Lead, Supervise, Control)”
September 2011 – “MAP (Maximizing Accumulated Profit)”
October 2011 – “PIC (Performance, Innovative, Creative) area”
November 2011 – “Go Green”
December 2011 – “BUDGET (Bring Up Diversity, Graveyard External Threats)
February 2011 – “AFE (Alert For Emergency)”
March 2011 – “BOSS (Boat Operation Safe & Save)
April 2011 – “FOUL (Find Out Unsafe Level) out”
May 2011 – “It’s m(
June 2011 – “BLOSSOM (Best Level Of Satisfaction Ship Owner / Manager)”
July 2011 – “THUMPS (Target High Up Mountain Peak Success) up “
August 2011 – “POLSC (Plan, Organize, Lead, Supervise, Control)”
September 2011 – “MAP (Maximizing Accumulated Profit)”
October 2011 – “PIC (Performance, Innovative, Creative) area”
November 2011 – “Go Green”
December 2011 – “BUDGET (Bring Up Diversity, Graveyard External Threats)
Tuesday, April 5, 2011
Mamat Khalid's ESTET the movie
I was wondering during this screening who was the director of this movie? And I was shocked when saw Mamat Khalid name at the poster. He is a person raise the 1 Malaysia concepts by directing a non Islamic movie. I appreciate Mr. Mamat Khalid on his success of this movie.
I would like share some of my thoughts. As I was born and brought up at Ladang Kerling, Hulu Selangor, I did not agree the costume given to Indian community is not practical currently. May be the director encouraging the use of traditional cloth such as “Saari”, “Dhoti”, and “Thavani”. These costumes are imaging the movie to the life around late 60’s and 70’s. In my estate no one use these costumes other than temple festival. Hopefully the Tamilan community restarts using their traditional clothing on normal life.
I fail to categorize this movie. I have seen some comedy parts and some serious parts. The “BOM ATOM” was funny. Who idea was that? Why the fighting scene took so long like Hindustan movie. Please come back to the reality world. May the P.Ramlee, MGR generation may still want to watch long fighting scene. But not for the young generator, show some real effect fighting.
The climax not has expected. The movie screenplay was spoiled due to the football match of 17 goals. That is not a reality. The director may limit to max of 5 goals. Actually I was thought after the keeper injured, Dato’ David Arumugam will become goal keeper as remembrance of the our late hall of fame keeper Arumugam .
The director may extend the ending with screening the faith of Geetha and Farid’s love. Did the director encourage the inter-racial marriage? What about Sasi?
The songs are not so clear. I understand the music are base by Tamil and the lyric look like “Rojak”. Sorry to say like that. I am really not getting any single line of the all 3 songs. May be later I will down load the song and listen again.
For team of ESTET,
Story rated 7 of 10 (Not clear as comedy or love or football fever or social)
Screenplay rated 7 of 10 (Too much of non reality shows)
Script rated 6 of 10 (including the song lyric)
Love rated 8 of 10 (a gentle touch)
Comedy rated 9 of 10 (I laugh most of the scenes)
Social content rated 5 of 10 (avoid the smoking and drinking content)
Direction rated 7 of 10 (Overall) class “B” Rating
Sunday, April 3, 2011
10 things to learn from Japan.
1. THE CALM
Not a single visual of chest-beating or wild grief. Sorrow itself has been elevated.
2. THE DIGNITY
Disciplined queues for water and groceries. Not a rough word or a crude gesture.
3. THE ABILITY
The incredible architects, for instance. Buildings swayed but didn’t fall.
4. THE GRACE
People bought only what they needed for the present, so everybody could get something.
5. THE ORDER
No looting in shops. No honking and no overtaking on the roads. Just understanding.
6. THE SACRIFICE
Fifty workers stayed back to pump sea water in the N-reactors. How will they ever be repaid?
7. THE TENDERNESS
Restaurants cut prices. An unguarded ATM is left alone. The strong cared for the weak.
8. THE TRAINING
The old and the children, everyone knew exactly what to do. And they did just that.
9. THE MEDIA
They showed magnificent restraint in the bulletins. No silly reporters. Only calm reportage.
10. THE CONSCIENCE
When the power went off in a store, people put things back on the shelves and left quietly!
Not a single visual of chest-beating or wild grief. Sorrow itself has been elevated.
2. THE DIGNITY
Disciplined queues for water and groceries. Not a rough word or a crude gesture.
3. THE ABILITY
The incredible architects, for instance. Buildings swayed but didn’t fall.
4. THE GRACE
People bought only what they needed for the present, so everybody could get something.
5. THE ORDER
No looting in shops. No honking and no overtaking on the roads. Just understanding.
6. THE SACRIFICE
Fifty workers stayed back to pump sea water in the N-reactors. How will they ever be repaid?
7. THE TENDERNESS
Restaurants cut prices. An unguarded ATM is left alone. The strong cared for the weak.
8. THE TRAINING
The old and the children, everyone knew exactly what to do. And they did just that.
9. THE MEDIA
They showed magnificent restraint in the bulletins. No silly reporters. Only calm reportage.
10. THE CONSCIENCE
When the power went off in a store, people put things back on the shelves and left quietly!
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