...Moving Headquarters Overseas MBAA 604 – International Business Administration Embry – Riddle Aeronautical University April 10th, 2015 Instructor Dr. Thomas O’Meara Table of Contents Introduction 3 Case Discussion Questions 4 Summary 7 References 9 Introduction The following case study examines the decision by a multinational enterprise (MNE) to relocate its businessunit and/or corporate headquarter(HQ) overseas.The next section will answer the case discussion questions related to the benefits and drawbacks associated to moving unit and corporate HQ to another country. Case Discussion Questions 1. What are the drawbacks and benefits associated with moving business unit and corporate HQ to another country? According to the closing case, the benefits associated with moving business unit and corporate HQ(headquarters) to another country must significantly outweigh their drawbacks. At the business unit level, it is likely to achieve efficiency gains by moving business unit HQ closer to the center of gravity of the business. The greater the percentage of business activities (sales units, manufacturing units) overseas, the greater the likelihood of business unit headquarters moving overseas. It makes more effective interaction between the different unit activities and encourages development of firm’s core competence. According to Peng, there are five strategic advantages at the corporate level. First, the firm becomes a global player. Second, stakeholders...
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...Chapter 1 The Problem and Its Background Introduction Changes are permanent thing on earth. Are the people is ready enough to accept the changes on the educational system? The current opening of classes here in the Philippines usually starts from June to March but our lawmakers want to amend the opening of classes. The existing school calendar which spans from June to March is often disrupted as destructive typhoons plague the region during the rainy season that’s why our lawmakers decided to move the opening of classes from September through May to avoid numerous class suspensions and serve to protect the students during strong typhoons. The Department of Education said that it is open to the proposal by some sectors, including lawmakers to move the opening of classes but they want to ensure the comfort of the students in school and stresses the need for a comprehensive study. While the Department of Education is open on the proposal, some did not welcome this idea. An initial survey on the matter conducted way back in 2009. On the respondents, 66 percent were against the move while 34 percent were in favor. [1] Also, another ground for rejecting the proposal is the traditions celebrated during summer and being not conducive in learning because of hot weather during March. The delay in suspension of classes is one of the reasons why our lawmakers and other sectors in the community urge to move the classes from June to September. Unexpected...
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...Moving headquarters overseas has been a growing trend since the 1990s as more and more countries become open to the idea of relocation. In our case, we saw examples of big multi-national companies moving headquarters across continents, like Nokia moving from Finland to the United States, IBM from the United States to China and HSBC from London to Hong Kong. This report will examine the reason behind this phenomenon and what are the consequences as a result of that. There are some key reasons that lead to this trend. i) Moving closer to the Asian market As Asia continues to charge ahead in its development, many companies want to fight for a slice of the pie and are moving into Asia to take advantage of the growing demand there. For example, Procter & Gamble (P&G) has this year moved its global headquarters for their beauty and baby-care business, including its biggest brand, Pampers, from Cincinnati to Singapore. They have expressed that the move to Singapore was motivated by a need for P&G brands to be closer to the growing number of consumers in Asia. As we can see from this, multi-national companies see the importance of the Asian market and believe that in order to take advantage of the potential there, need to relocate their headquarters. It is no longer enough to just have operations in Asia, but it is also helpful to have headquarters within the region to facilitate development. ii) Moving away from heavy corporate taxes The next trend is that of...
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...DepEd chief: Moving start of classes to September will only benefit some areas KIMBERLY JANE TAN, GMA NewsAugust 14, 2012 3:30pm 61 4 2 1307 Tags: Department of Education Moving the opening of classes to September will only benefit some areas and not the entire country, Department of Education Secretary Armin Luistro said Tuesday. "When I looked at the data it looks like there is very little additional advantage, benefit for schools if you look at things nationwide," Luistro said at a Senate hearing on the K to 12 basic education program. Luistro said that proposals to move the opening of classes from June to September will probably just benefit the National Capital Region (NCR). "Obviously we cannot have a different start of the school year recognizing that the country may have different ways of experiencing the weather," he said. "I think the benefit of moving it to September may be confined to maybe NCR and a few other regions, but that may not necessarily translate to additional safety realities for the other regions," he added. Two climate types PAGASA acting deputy administrator for research and development Flaviana Hilario explained that the country has two climate types: Western areas of the country such as the NCR and Central Luzon fall under type 1 climate, which experiences rain from May to September. Eastern areas such as Aurora and the Bicol region experience type 2 climate, with their rainy season lasting from October to January...
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...was one of these students, since I lived in the Lehigh Valley for nineteen years of my life, obviously I wanted to move to a city and not get stuck driving behind tractors every morning. Many people have felt this before, including the author of Home at Last, David Mengestu. What people don’t realize, however, is that moving away to a different location is not going to change where your home is. Mengestu finds this out in the essay, through chronological events of his childhood and early adulthood. In his personal essay, Mengestu writes about his journey of moving to the neighborhood of Kensington in Brooklyn, New York, and uncovers his epiphany of the meaning of home to the reader. Mengestu believes that you can recreate home while moving to a new location, while I believe that home is where you believe your family is, and that becomes part of your background....
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...international. During the 1980s and 1990s, when General Electric was led by Jack Welch, the company was an American company doing business in foreign markets. Today, under the leadership of Jeffery Immelt, General Electric is moving toward becoming a global corporation. Question:1-Why do you think GE has invested so agressively in foreign expantion?What opportunities is it trying to exploit? Answer to the question NO. 1 I think GE acted so agressively because if they didn’t then another company would have grapped the opportunity & purchase the companies that were in trouble.Other companies could have also formed there & that would have made it harder for GE to establish their business in other countries.Some companies may object to a foreign company trying to establish a company on their land but by buying out the business that were in financial trouble, GE came out as the heroes.They helped to save the jobs that these companies also acted agressively because they wanted the revenue that it would produce. I think that GE is trying to exploit lower wages. They are always trying to find ways to reduce their cost .Moving to other countries would mean lower cost in labor hours for General Electric. Question:2-What is GE trying to acheive by moving some of the headquaters of its of its global business to foreign location?How might such moves benefits the company ?Do these moves benefit the United states? Answer to the question NO....
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...broken . In another point of view,I would aswell take the chance and the opportunity BUT in this case I would make sure that the life of my family will be safe, eventhough, moving from a country to another always includes many difficulties .its normal and understandable that societies are different. not all the people live with the same life style! Not all people have big apartments with backyards and its not so hard to understand.if you are willing to take the risk and move to another country,you are taking the risk of giving up on something that you may prefer aswell. Its very easy to understand the fact that if you are moving from another country with another culture, to a country with a totally different culture ,you will have problems getting used to the situation and being adapted; atleast at the beginning of the journey ! in this case ,you should be understanding and patient. the first stage of the cultural shocks are always the hardest part to deal with, therefore being patient is the first “unwritten law” in passing by this level of culture shock . to be short ,if you are willing to experience something new and different, being open and understanding in the differences are as necessary as having a preview or an idea about the whole new situation. the more you are educated about the other countries culture, the faster you will be adapted to the host...
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...1 1 Reasons of Movement and Its Effects People around the world are constantly on the move. There are several different reasons why, and they are categorized on the basis of their reasons for relocation. Several factors determine why people migrate across the globe. A few different categories can explain a majority of the causes of why people move. People are considered labor Migrants, displaced persons, or institutional migrants. These groups of people all have different yet equally significant reasons for moving. Their motives for moving are identified by the terms just listed. Some motives that these people can have are corresponding to current economic situation, political situation, and social situations. Migrations and its effects on people come in many forms. Both vary in terms of the distance involved, the purpose of the move, whether the move was forced or a matter of choice and the migrant’s status in the new destination. Another important effect of migration is globalization and migration. They both have their own way of functioning and their differences will be discussed. First of all, labor migrants are people who travel for economic purposes. They migrate each year to work for a specific length of time. They don’t plan on creating a permanent lifestyle, and they are often explicitly barred from doing so. When this form of migration is legally contracted it if referred to as wage labor migration. The time elapsed working might be brief, or it could extend to...
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...In the article, “Does Trying To Be Happy Make Us Unhappy?” Adam Grant argues that putting too much effort into life changes will actually make people unhappy. Grant starts his essay by pointing out the way two countries look at happiness. The U.S.A grants life, liberty and the pursuit of happiness for all, and the kingdom of Bhutan they have a national index to measure their happiness. Grant then goes on presenting a study done by a psychologist about happiness, this study reveals that the more pressure people put on trying to be happy the less happy they are. The author then gives an example about a friend’s life story to compare this theory. Tom speaks many languages and has a major in computer science, but once he accomplished these...
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... plant and harvest. With the advent of the industrial revolution staring in the early part of the nineteenth century and then even more so with the information revolution of the 1960's onward people began moving away from the country and into the city because that was where they worked. There were enough farms to support the people in the urban areas, and transportation became easier with trains and large trucks. This rapid growth, from a farm-based economy to one that relied on manufactured goods and then today's serviced-based economy has altered the face of the nation. The Problems of Urban Growth The problems the country faced, population skyrocketed, and city government faced problems of how to provide residence with needed services and safe living conditions. The separation of people into different groups and how those people adapted to urban life during the transition away from their propinquity roots are all distinct elements of how America became an urban nation. When people begin moving closer together there are issues with the increase in people that occupy a smaller space and a decrease in the land available to grow food. The average person needs the same amount of food regardless of how close they live to other people. Urbanization began, with people moving closer to textile, steel and other types of mills. The society was still based largely on barter or trade, but that had to change and a centralized currency was developed. In doing...
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...environment, family etc. * Movement Not necessarily permanent. * E.g. People moving to warmer climates from colder areas moving from Northern Europe to Southern such as Greece. * Finance economic opportunities Poor Economy in Ireland Many young people leaving Ireland due to poor Economy Moving to the US/Australia * Large economic gap in South America poorer leaving to find work in USA * Education Moving to another country for better education e.g. Cambridge, Harvard, Oxford University Large influx of Asian student to Australia. * Must have money in order to voluntarily migrate. * Resettlement migration = International migration. * Contract migrationMigrating to another countryUsually for work * Guest workLiving/Working in another country because there is a shortage of workers in that country for that workAustralian teachers and nurses moving to Internal: * Rural-Urban Migration: * Leaving a countrymoving to a city * ChallengeCan infrastructure handle current rural influx? And who is growing crops? * Push factor out of rural environment (Negative)Sever drought, unemployment, natural disasters etc. * Pull Factors to move to the city (Positive)Employment, Education, Medical etc. * Bright Lights Big City PhenomenonYoung people’s view of being in the city. * Counter-urbanization: * Leaving the citymoving to the country * Life style choice living life at a slower pace * Often associated with retirees...
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...age of sixteen I made a decision and followed some of my family members and started a new chapter by moving to California. Moving from Poland to United States was one of the biggest, and ironically the fastest decision I had to make. Due to the fact my mother have moved to Bay Area prior; me and my brother stood with an opportunity to start something new and move to United States. Because my brother Lukasz Already started his Law School education he decided to stay behind and continue with his life in Poland. I on the other hand took the opportunity and applied for green card and moved to San Mateo to finish my High school education....
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...require expertise in biomedical sciences rather than in engineering and physics; and also investment, collaboration with pharmaceutical companies which facilitate the creation of imaging equipment necessity to alter GEMS business model which is away from engineering heritage toward bio-chemistry and develop drug based on genetic code for specific individual, or small group rather than entire population. b. Demographic change: + Population were aging in advanced nation, implied fewer working-age people to pay for more intense care while the emerging middle-classes if Asia, Eastern Europe and Latin America were increasingly aware of, and needed, better healthcare. This requires the shift in distribution of healthcare equipment in these countries (more for Asia, Eastern and Latin America) and the change in market segment of healthcare equipment. + Global information flows made healthcare disparities between developed and developing nations more stark and unacceptable. Thus, concentrating more on developing world needs great effort investment and customization. c. Fierce competition: + Siemens is leading in healthcare IT, which is a great advantage for them to thrive in technological change era. All competitors move on healthcare IT segment, potentially affecting the market share of GEMS. 2. Strengths and potential weaknesses of the Global Product Company (GPC) approach introduced by Immelt. Company strategies are transnational (multifocal) which aimed at both global integration...
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...NEGOTIATIONS Cross-Culture Work in a Global Economy Erin Meyer, affiliate professor at INSEAD and author of The Culture Map, on why memorizing a list of etiquette rules doesn’t work. For more, read the article, Navigating the Cultural Minefield. 14:47 SARAH GREEN: Welcome to the HBR IdeaCast from Harvard Business Review. I’m Sarah Green. I’m talking today with Erin Meyer, an Affiliate Professor of Organizational Management at INSEAD. She’s the author of the book, The Culture Map, and of the HBR article, “Navigating the Cultural Minefield.” Erin, thanks so much for talking with us today. ERIN MEYER: Thank you, Sarah. SARAH GREEN: So let’s just start by tell us what The Culture Map is. And tell us a little bit about why you developed it, what’s the problem you’re trying to solve. ERIN MEYER: I became very interested in researching how cultural differences were impacting business people, because I found that, although the world has changed quite dramatically over the last 15 years, the discourse around management hasn’t kept up with it. So just to give you an example of this, I was just in a bookstore yesterday. And I picked up a book about negotiations, a new book written by an American author. And as I’m looking through it, I can tell that the implicit assumption by the author is that the people who are negotiating, who are reading the book, are going to be negotiating with people who come from their own culture. But this isn’t the case anymore...
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...Tesco as an organisation and proposes a potential market for international expansion. The aim of this report is to analyse the international market’s environment and then indicate a potential strategy for Tesco to enter the market. The report initially works towards the analysis of the new market’s macro environment to understand key aspects linked with the proposed business market. This is followed by an internal analysis of Tesco and an overall external analysis of the retail industry in the new market. A strategic approach to enter the new international market is then presented. The proposed market for entry is Brazil. Brazil has a population of over 200 million and is the fastest merging economy in the world (IBGE, 2014: n.p). The country poses an exciting opportunity for Tesco to enter as the new trendsetter in the retail market. 2. Analysis of the International Market This section of the report analyses the market in which Tesco is proposed to expand.The...
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