...operations across diverse cultures and markets represents a big challenge and opportunity for companies. To compete in the global market and be successful, companies must learn the strategies, policies, norms and technology necessary to conduct international business. The opportunities for global expansion are numerous, and attaining success is a matter of developing the right strategy to win local markets and its consumers. Global Operations Management In today’s global economy many companies have been feeling the necessity or the pressure to compete overseas with other companies not only to expand their market share but to obtain higher profits. While there are substantial opportunities in expanding globally, privately owned companies also face significant challenges in selling, purchasing, and setting up operations in foreign countries. PPQ Parts is one of the companies that have decided to expand globally over the next several years, but in order to do it managers must be properly trained in multiculturalism and diversity management. The company executives need to be aware of the many challenges and obstacles that going globally represents for the organization to be prepared when a situation arises. Global marketplace opportunities growth represents a big opportunity for PPQ Parts and it’s very important that the company managers keep informed of all the issues they could face in a foreign country. One of the many issues PPQ...
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...of concerns that will be taken places as the host foreign country undergoes expansion. Detailing what cultural difficulties and multiplicity concerns are generally stumbled upon by the MNC and worldwide companies. Will be researching diversity and how this is a significant issue in the worldwide arena. Detailing various political and economic concerns that will be encountered while world- wide growth. The business of PPQ Parts has concluded that for the business to develop worldwide over the next few years, its supervisors should be suitably educated in multiculturalism and multiplicity management. The company’s decision makers must be conscious of any opinionated and financial matters that will take place during the development. The research paper will give you insight into some of the worries for the upper management. Problems of Concerns The multitude nation of the PPQ Parts will be mass to an establishment applied to a diverse method of doing things, transpiring that the business came from a diverse, common, ethnic, opinionated, and financial system. With this being stated, for the business to deal with the burdens and ordeals of the new settings, the business has to become accustomed and manage with its host nation’s lawful system. Therefore, the company must employ native lawful authority to act for the business best awareness. (Why Diversity Matters,2013)...
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...opportunity in terms of profits. There are also many things to consider before making the decision to expand. Diversity, cultural issues, political issues and economic issues can all occur. It is important to research all these issues and decide which country is best for PPQ to expand to. When contemplating expanding a business globally, it is important to consider how it affects the business and how it affects the foreign country that you are trying to expand to. There are many things for a foreign country to consider before making the decision to expand to that country. With the business being based out of the United States, the people from the foreign country may face some conflict with the people from the foreign country because of the new people coming into their country. This expansion would affect communities and schools where PPQ decides to start up their global business. The foreign country would also have to evaluate the use of the land and water that PPQ would need in order to start the business in their country. This would also have an effect on the foreign country especially is clean water is already hard to come by. The new site for the global PPQ may also run off the local wildlife in which the population may use for hunting or recreational use or even to live off of. This would also cause conflict for the foreign country. PPQ may encounter many cultural and diversity issues when expanding globally. There are language barriers that would have to be taken into consideration...
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...Abstract The purpose of this paper is to identify and examine social and ethical issues within the global market. This document will also review how international management and cultural diversity are pertinent to the success of an organization that is operating in a foreign country. Based upon the above mention, this paper will focus on examining and providing frameworks and strategies that implement the concept of corporate social responsibility and cultural diversity. A number of factors are identified in the study, using literature reviews and numerous online research engines. Introduction Business firms that operate in foreign countries face an assortment of ethical and social challenges. These challenges run from fair treatment of employees, stakeholders, and customers, product safety, plant safety, advertising practices, human resources management, environmental problems, business practices, corruption, bribery, kidnapping, torture, and even murder. Therefore, organizations are increasingly concerned about how their actions affect the environment and social welfare. This in turn creates a demand by employees, consumers, investors, lenders, governmental agencies, and other stakeholder groups for demanding firms to operate in an ethical and socially responsible manner. Nevertheless, organizations cannot wantonly abandon their profit maximization aims while internalizing societal goals. As with other organizational decisions, ethical and social...
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...arising from worldwide accounting diversity? ------------------------------------------------- A: Seeing as the essential function of accounting is to present accurate information about the status and operations of economic entities, the greatest problem arising from worldwide accounting diversity has to do with the implications it can hold for the quality of accounting information. While it’s not always the root cause, it’s safe to say that inadequate accounting information is often a contributing factor to the depth and breadth of many crises. Because whereas fair and accurate accounting procedures and presentation serves the primary function of reducing informational risk, low quality and inaccurate accounting has the effect of increasing informational risk. Moreover, it’s considered accepted knowledge that the mere threat of disclosure improves various elements of management, especially risk management. And in the absence of appropriate accounting practices, management is incentivized neither to employ adequate internal controls nor manage risk effectively. So because low quality accounting information and inadequate disclosure requirements entail heightened informational risk, the reduction of which being the main purpose of the accounting function, substandard accounting information should be considered the greatest problem arising from worldwide accounting diversity. (b)Q: Which group is most affected by worldwide accounting diversity? A: The answer to the question...
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...Abstract In the following paper discussed are issues foreign host could be exposed to, cultural barriers and the importance of diversity and its issues. Political and economic factors play significant roles during global expansions therefore, those issues will be brought to light as well as how Germany and Japan are similar to the United States in the business arena. Global Operations Management Introduction Manufacturing companies are very familiar with the path to globalization. Years ago, the surfacing of companies who offer low-cost items, such as Wal-Mart, and swift economic expansion had a huge impact on their competition. In order to compete with such low product pricing, many companies relocated their operations to other low-cost countries to try and enter new markets. Today, companies do not debate if they should relocate their business to another host country but with the cost of doing so with concerns such as managing international employees and successfully marketing to diverse consumers. International Expansion Issues When companies expand their operations to another country try can have a positive, negative, or both results upon the host country. Foreign automobile manufacturers, such as Volkswagen has strategically decided to expand to the U.S. to compete with domestic automobile manufacturers. Last year Volkswagen opened a Passat plant in Tennessee, a lower-cost area to manufacture in the U.S., and created around 11,000 jobs; they were also...
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... Abstract This paper will cover issues that a company may face in a foreign country, as well as what can happen if cultural barriers and diversity is ignored, the importance of diversity in the international arena and the importance of these items in PPQ Parts expansion in Germany and Japan. Multiculturalism and the International Company When it comes to a company wanting to expand their business in a foreign country there are some issues that they may face. A barrier that a company will have an issue with is language, as this is the most important factor and tool for an international business to communicate with their clients. An example of a company having a language barrier issue is Pepsi in Taiwan. Pepsi’s slogan was “Come alive with the Pepsi generation”, which translated in Taiwanese as “Pepsi will bring your ancestors back from the dead”. An error like this can happen when a company is too focused on branding themselves with the same marketing campaign that worked in the domestic market. Words have different meanings in different cultures due to the language spoken. Pepsi’s slogan could have possibly been taken as being offensive and therefore, could have cost Pepsi many new clients in Taiwan. Pepsi could have kept from having this problem by preparing, decentering and recentering the bridge between cross-cultural settings. A company needs to do research on the foreign market they are interested in to make sure that any issues with language will be taken...
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...Corporate Board Diversity in Malaysia: A Longitudinal Analysis of Gender and Nationality Diversity Dalilawati ZAINAL1 Norhayah ZULKIFLI2 Zakiah SALEH3 Faculty of Business and Accountancy, University of Malaya, 50603, Kuala Lumpur, Malaysia 1 2 Email: dalilawati@um.edu.my/dee_dalila@yahoo.com , Email: norhayah@um.edu.my 3 Email: zakiahs@um.edu.my Abstract This study examines the trend of gender and nationality diversity of corporate board in top 300 Malaysian public listed firms over a five-year period from year 2005 to 2009. It also identifies any significant difference in characteristics of firms with women and foreign directors and those without women and foreign directors. Based on the secondary data derived from firms’ annual report, a longitudinal descriptive analysis on the trend of board diversity is presented. Mann-Whitney U test is conducted to identify several characteristics that differentiate between firms with women and foreign directors and those without women and foreign directors. This study found little change in the presence of women directors and foreign directors over the five-year period, which reflects a slow progress in board diversity in Malaysia. Other than that, several characteristics that differentiate between firms with women and foreign directors and those without women and foreign directors were highlighted. Overall, this study indicates the need for more efforts to encourage board diversity in Malaysia. It shed some light on board diversity issue from...
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... In order for companies to expand cultural diversity considers a complicated part of management phase inside the corporate culture. Managing cultural diversity need a right method mainly from top management personnel in conditions of cultural sensitivity and local focused. International expansion was a “desirable” element for senior executives of mainly large corporations, firms of every size can now no longer afford to ignore the consequences of remaining a domestic player (O’Hara). Foreign companies face many challenges in expanding their business activities globally. Cultural barriers can make unpredictable problems as companies set up offices and production around the world. Critic of the multinational corporation usually views it as an economic and often political means of foreign domination. Many organizations, global diversity and cultural differences are seen to be difficult to overcome rather than as tools to be influenced for business success. Although more than 75% major American companies focus on diversity as a strategic advantage and business leverage in the U. S. there is minimal carry over internationally (Digh, 2001). These companies find themselves in the perplexing position of attempting to “roll out” overseas those diversity initiatives that were designed for a domestic workforce in many cases without knowing why or how (Digh, 2001). Understanding the nature of diversity helps businesses to understand a culture’s needs and wants to help...
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...1. What are some of the issues the host foreign country could face as a result of the expansion? Plans to introduce an expansion into a country must address a mass amount of issues by the host country. The factors affecting a nation's rate of utilization and absorption of technologies include both external and internal ones. Internal factors are comprised of the obtainable human and physical resources, the country's infrastructure, and its growth rate and state of development the host country must provide. External factors embrace the readiness of merchants to conduct commerce in the country, and the accessibility and amount of global aid aimed at the transfer of such technologies (Sadowsky, 1996). The condition of a substantial communications infrastructure is vital. Sufficient intercontinental and domestic links may not be reliable or present; equipment and machinery may be difficult to get hold of, sustain, and renovate; electrical power also might not be dependable. Computers and interrelated peripherals necessary may be inadequate, or even absent. Communications and transportation links may be very weak and delay progress. Upgrades in the host foreign country may be needed, prior to an expansion of an MNE (Sadowsky, 1996). Skills required to set up and operate an international company will be needed. Features of the cultural environment within the host country will be important in formulating how worker skills are generated and utilized. Receptiveness to educational...
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...Operations Management January 15, 2011 ABSTRACT This paper will explain issues that the host foreign country could face if an expansion occurs, and the concerns that may arise during the expansion. Issues faced by the host country Depending on the country that a company tries to expand to there can be a few issues or there could be a lot of issues that can arise as a result of an expansion. The culture of the located expansion could have conflicts with the surrounding culture. (Cultural Survival, Inc., 2010) When a foreign company comes into a place that is largely local small businesses, the larger foreign company will eventually take customers away from the local manufacturers and businesses. When a company expands and put other businesses out of businesses, which add up to local unemployment and that isn’t good for any economy. Another risk that a country has to think about is the fact that Investing in foreign business drives out business for the local businesses and drive prices up in the process. Another issue would be the company being use to a legal system unlike the one of the host country. This is why the company would have to just deal with the issues and not try to change the culture around them. Some Governments do not have any dealings with the company world, and some have everything to do with it, and own everything. (Avakian, 2010) When companies are dealing with foreign countries and their governments they have to be aware of the cultural differences and the...
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...Operations Management June 8, 2012 Unit 1 IP PPQ Auto Parts is striving to expand their company globally over the next few years. In order to properly and successfully expand the business, the managers of PPQ must be trained in multiculturalism and diversity management; which have large playing factors in whether or not the company will be successful abroad. The executives of PPQ Auto Parts must fully understand and be aware of any political and economic distress that could potentially affect the company’s expansion as well. When considering expanding a business abroad, especially for PPQ, individuals should look into the possible issues the host foreign country could face as a result of the expansion. There are many issues that must be addressed such as: the strategy to enter and expand, the trends within the foreign land, the different marketing approaches to reach the niche consumers, political and social climate, taxes, legal system, location, differences in culture, host country’s available workforce. As many individual know, all countries are different, slight or considerable, there are many issues that a company can face, especially within the cultural barriers and diversity issues. Cultural barriers and diversity issues are commonly encountered by international, multinational and global organizations. Culture is immensely important and should be treated as such by the PPQ representatives. Culture is the beliefs and certain behaviors of a specific group. Cultural...
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...Questions that will be answered in this paper: 1. What are some of the issues the host foreign country could face as a result of the expansion? 2. Explain what cultural barriers and diversity issues are commonly encountered by international/multinational (MNC) and global organizations. 3. Why has diversity become such an important topic in the international arena? 4. What can occur when issues related to multiculturalism and diversity are ignored in an international company? 5. Describe at least 2 political and 2 economic issues that may arise during global expansion and proposed methods of addressing them. 6. Explain the importance of and the implications of each of these items in PPQ Parts expansion plans to Germany and Japan. When trying to prepare for a global expansion, you have to look at many different factors such as cost, training, benefits, and many other factors. But you also have to look at the risk that a company can face when expanding. For example, the risk that a foreign country, that is hosting the business that is expanding, they could possibly lose lots of money, could go into a financial crisis and could also lose the business and relationships with many other companies if it does not go as planned. Another issue that could ensue is that the country could gain absolutely nothing if it is not planned out correctly. This could lead to a poor report with the company and many companies to follow. If these risks do not happen, many other barriers...
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...Issues in PPQ Part’s Expansion Plan Student’s Name Course No Course Name University Name Instructor’s Name Date Host Foreign Country’s Concern in Expansion Plan Foreign nations faces various obstacles in adoption of new business ranging from infrastructural issues of technological advancement, network problem, lack of skilled resources, etc; investment issues in inter-organization communication, network establishment, etc; security and privacy issues of customer information in transaction; government regulations for legal protection of consumer rights; logistics issues of distribution; lack of physical and social interaction in virtual environment for purchase; and returning policy of traders (OECD, 2004). Although infrastructure and deregulation governs the success of commerce, transactional trust is mandatory for encouraging the participants to pursue the shopping from foreign firms (Oxley & Yeung, 2001). Socio-cultural characteristics of these countries also raises concern of institutional trust in the new business as substitute for social milieu lacking in personal touch or localization of product (Efendioglu, Yip, & Murray, 2004). Temporal and spatial separation requires radical shift in consumer pattern to create trust between parties involved in transaction occurring in trading based on agreed contract. Delivery of products to the increasing number of customers in new system brings challenges for seller to keep the promises of order fulfillment...
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...Lowe’s By You April 21st, 2014 University of Phoenix ECO-365 Introduction In the United States there are two major players in the home improvement industry. The biggest in The Home Depot. The other, while smaller having 502 less stores, is still a giant of the industry (Cramer, 2013). Through the recession Lowe’s stood while well The Home Depot fumbled. Lowe’s faces competition from opponents other than just The Home Depot as it expands beyond America. As Lowe’s seeks to enter the Canadian and Australian markets it will encounter more diversity than it has experiences so far. The complexities of doing business abroad and opening stores afar will become even more apparent as their international tactics change. Despite the challenges Lowe’s should expand further to become an even bigger player both nationally and globally. Global Competition’s Impact on Lowes In 2009, Lowes had 1,710 stores found throughout Canada and United States, 16 of these found outside the United States, with three stores in Mexico that opened in 2010, allowing for their exposure to bring them to a new level of sales internationally. (“Lowes Companies”, 2012) After much research it is found five competitors could impact Lowes, the #2 home improvement dealer in the world (Racine, 2012), but on different levels. The first competition is the main competition of Lowes, Home Depot, #1 in the world since 2005, (“Lowes Companies”, 2012) is expanding its sales by bringing in more Hispanics...
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