Free Essay

Borders

In: Computers and Technology

Submitted By uyenhuynh48
Words 3708
Pages 15
[pic]

Lisa Kling lisa.kling@villanova.edu 610-688-0404
February 26, 2003

Table of Contents

Executive Summary 2

Introduction 3

Industry and Competitive Analysis 5

Company Situation Analysis 12

Company Value Net Analysis 15

Conclusion 17

Bibliography 18

Appendix 19

Executive Summary

Borders Bookstore is a major leader in the book retail industry, with a differentiated strategy focusing on customer experience and a category management system. New technological growth such as the “Title Sleuth” and e-commerce capabilities allow Borders to stay competitive. The book retail industry is affected by the recent decline of the USA economy, though Borders continues to make a profit. Globalization and technology are factors of the industry, as well as dealing with large amounts of inventory. The competition is fierce and aggressive, consisting of Barnes and Noble, Amazon, Books-A-Million, independent book sellers, Wal-Mart, Target, and Sam’s Club. Rivalry among competitors is amplified between Borders and Barnes and Noble. Other forces, such as substitutes, buyers, suppliers, of the industry environment range in strength. Comparing Borders and Barnes and Noble’s financial data shows that Borders appears to be gaining more profits and using equity more advantageously than the competitor. Yet, Borders must not lose sight of its own weaknesses and threats. Focusing on strengths and opportunities, while improving weaknesses is key for Borders’ success. The value net for Borders is another consideration for the company. Although customers are the number one priority, Borders must realize the effect its decisions have on the stakeholders. Borders seems to be leading the market, and should remain competitive if it can continue improving technology and its differentiation strategy. Management should use current strengths to improve weaknesses and capitalize on opportunities. More promotions for major suppliers will aid the supplier-buyer relationship. Borders should also capitalize on the e-commerce website as well as the wireless Internet access capabilities in each Borders store.
Introduction

Borders Group Incorporated Profile (as stated on the company’s website):

Borders Group, Inc., is a FORTUNE 500 company that trades on the New York Stock Exchange under the symbol BGP. The company is a leading global retailer of books, music, movies and other information and entertainment items. Headquartered in Ann Arbor, Michigan, Borders Group operates over 400 Borders Books and Music stores in the U.S., as well as 29 international Borders stores, approximately 800 Waldenbooks locations and 37 U.K.-based Books etc. stores. Online shopping is available through www.borders.com and www.waldenbooks.com teamed with Amazon.com. Borders Group employs more than 32,000 people worldwide and posted revenues of approximately $3.4 billion in 2001.
(http://investor.borders.com/ireye/ir_site.zhtml?ticker=BGP&script=2100&layout=8)

Borders Books Mission Statement (Appendix ?):

To be the best-loved provider of books, music, and other entertainment, educational, and informational products and services. To be the world leader in selection, service, innovation, ambiance, community involvement, and shareholder value. We recognize PEOPLE to be the cornerstone of the Borders experience by building internal and external relationships, one person at a time.

Borders Books’ strategic platform informs that the mission is “measured by increased dollars per transaction, increased multiple unit transactions, increased market share, growing comparable sales 2-3%, and growing earnings per share 10-15%” (Appendix ?). It is “achieved through a market position of dominating selection, differentiating customer service, a competitive experience, competitive access, and competitive pricing” (Appendix ?). Integrating market position and the company mission is integral for the success of Borders, as well as staying ahead of the competitors. Top competitors of Borders include Barnes and Nobles, Amazon, Books-A-Million, independent bookstores, Wal-Mart, Target, and Sam’s Club. Major business issues arise in Borders’ attempt in fulfilling the mission and goals, while staying competitive. For example, Borders must focus on improving weaknesses like geographic coverage and capitalizing on opportunities like the joint e-commerce website with Amazon. Therefore, evaluating current strategies, assessing the key success factors, and positively focusing future endeavors are necessary.
Industry and Competitive Analysis

The book retail industry ranges nationally as well as internationally. High capital costs are necessary to enter the market in order to attain all the books for inventory. However, the customer market is large due to the numerous amounts of book buyers in the world. Each year, more people become literate and the customer base grows larger. Technology has become a major factor in the past decade due to new innovations and the Internet. New tools and e-commerce has improved customer service and ease of transactions for both the companies and the customers. The recent decline of the United States economy is causing struggles for Borders and the entire industry, however, Borders is “acting accordingly to increase market share, customer service and cost control” (Pringle). Borders seems to continue growing in numbers of stores as well as remain competitive regarding its prices. Other driving forces of industry changes include growing popularity of the Internet and technological growth. Amazon’s technology brought the industry into cyberspace, a move that every big name book seller followed. Future Internet capabilities may spur new trends for the entire industry. Strategic industry trends are driving forces of the book retailer industry as well. Borders is counting on its category management system to push them into the future by creating a distinct and differentiated customer experience. Globalization is another factor that impacts the industry. Book retailers have to account for cultural as well as technological differences. Balancing national needs with international needs and attaining global leadership may cause change in the industry’s structure and business environment. The competitive five forces for the book retail industry as a whole include the substitutes of newspapers, magazines, Internet, television, and music. Many bookstores, like Borders, have minimized the threat of substitutes by selling CDs instead of competing with music store. The Internet poses a major threat, due to the amount of free reading and research material it hosts. Other substitutes of the industry do not seem to have much power over Borders, or any other bookstore due to the difference in nature. Buyers of the industry include basically anybody, teachers, students, parents, teenagers, artists, etc. Since the magnitude of the buying population is so large, and continues to grow, buyers do not have much bargaining power. However, due to wide amounts of free information on the Internet and low switching costs for buyers, they seem to be gaining influence and power over Borders and other bookstores. Buyers have discretion over whether they buy the products because they can always buy cheaper, used books, or choose not to buy the book. New entrants in the book retail industry do seem to be a threat, even though there are somewhat high costs of capital and resources needed to enter the market. They must be able to compete in selection, price, technological capabilities, and customer experience, which is not an easy feat for newcomers, though independent bookstores are successful in certain areas. In order to become a large book retailer a learning curve does come into effect in terms of organizational systems. Brand loyalty is not a major factor, in that the same book can purchased in several different bookstores. However, for buyers who prefer online purchasing, Amazon has much customer loyalty. New entrants must also be aware of copy write policies, which may discourage some. Publishers, authors, and musicians account for most of the suppliers for book retailers. The supplier bargaining power is minimized by the reputation of major bookstores and popularity of online purchasing. The demand for books outweighs the suppliers’ power because bookstores can purchase books from many different publishers and authors. Books are a commodity that can be provided by many sources. However, if the supplier is a major player in the industry, it will carry more power over the bookstore retailers. For example, J.K. Rowling, the author of the Harry Potter series, has a great deal a weight because of the popularity of the books. Borders’ top rivals are Barnes and Noble, Amazon, Books-A-Million, independent bookstores, Wal-Mart, Target, and Sam’s Club. These competitors force pressure on Borders in terms of technological and strategic capabilities. Since customer costs to switch brands is very low, rivalry among the competitors is high. High rivalry also stems from the numerous amounts of bookstores around the world, whether it be big name companies or small independent book sellers. A focused strategy and continual attention to technological advancements have made Borders able to compete with rivals like Amazon and Barnes and Nobles. The top competitor of Borders, in the book retail industry, is Barnes and Noble. The two companies hold the strongest positions, so they are in tight competition. The two are in the same “strategic group,” (Thompson, 100) meaning they have similar product line, services, geographical coverage, prices, quality ranges, distribution channels, and costs. Both companies incur a high cost due to the magnitude of inventory consisting of books, CDs, and book-related products (bookmarks, notebooks, writing utensils, etc.). Geographic coverage of the two stores are similar, although Barnes and Noble has over twice as many stores nation wide than Borders. Barnes and Noble has 896 bookstores, employing 37,000 people. Borders has 400 bookstores, employing 15,000 people. (Appendix ???) “Barnes & Noble.com is a leading online retailer of books, music, and DVD/video. Since opening its online store (www.bn.com) in March 1997, Barnes & Noble.com has attracted more than 13 million customers in 232 countries. Barnes & Noble.com’s online bookstore includes the largest in-stock selection of in-print book titles, with access to over 1 million titles for immediate delivery, supplemented by more than 20 million listings from its nationwide network of out-of-print, rare, and used book dealers. Barnes & Noble.com offers its customers fast delivery, easy and secure ordering, and rich editorial content” (www.barnesandnoble.com). The weakest industry positions consist of the independent bookstores and other book sellers that are unknown around the country. Borders must anticipate rivals’ future strategies to remain on top of industry growth and be competitive. Anticipating rivals’ next strategic moves is necessary to staying competitive. Some bookstores may try to copy technology or strategies from each other, so as to beat the competition. “[Borders] understands that [some rivals] are also using [the ‘Title Sleuth’ technology] now as well” (Pringle). Barnes and Noble has been teaming up with Starbucks in order to accommodate customers with coffee and pastries, which is in direct competition with Borders’ in-store coffee shops. In the future, competitors may follow the category management system that Borders uses, as well. Borders must continue to focus on its strategy of providing differentiated customer service and experience, aspects of the store that have “staying power” and are difficult to replicate. Borders’ top rival, Barnes and Noble, have many upcoming strategic moves planned and initiated. For example, “Barnes & Noble.com announced the creation of Barnes & Noble Digital, an electronic publishing imprint that will create a direct link between authors and their readers, give authors a greater share of the income from their works and lower retail prices in an effort to build the emerging market of eBooks” (www.barnesandnoble.com). Three other new initiatives are “Internet Service Counters powered by Barnes & Noble.com, enabling store customers to order any book or other product through Barnes & Noble.com at any Barnes & Noble store; a membership loyalty program, called Readers' Advantage, that offers additional discounts and benefits in Barnes & Noble stores and at Barnes & Noble.com for a $25 annual membership fee; and a customer returns program allowing Barnes & Noble.com customers to return books and music CDs purchased at Barnes & Noble.com to any Barnes & Noble store and receive merchandise store credits” (www.barnesandnoble.com). Barnes and Noble also teamed up with Yahoo! to increase marketing, and is also opening an online textbook store that will sell new and used textbooks. Key success factors that follow with Borders’ strategic platform and mission statement include both technological and strategic moves. Industrial technological and strategic trends are dynamic in nature, and therefore, Borders Books has been flexible and reacted appropriately. For example, the Internet has made it imperative to enable customers to buy, or at least browse, the merchandise over cyberspace. Borders teamed up with Amazon to create www.borders.com, a website that allows customers to buy books and CDs online. Teaming up with Amazon was a strategic and technological move to supply the best service to online customers. Although Borders is now working with a competitor, Amazon allows an advantage for Borders “as [Amazon] is the expert at providing on-line book purchasing” (Pringle). “Launched Aug. 1, 2001, the co-branded site gives customers an enhanced shopping experience featuring Amazon's personalization and 1-Click™ ordering, among other benefits. Through the alliance, Amazon.com handles inventory, fulfillment, customer service and general content” (www.borders.com). An advantage for both companies is that Amazon and Borders’ online customers have the option of picking up their purchases at any Borders store. Other technological advancements Borders’ benefits from is the “Title Sleuth.” It has made it easier to satisfy customers by simplifying the hunt for books in the stores. The computerized system adds to the differentiated customer service strategy. The Borders Visa Card is another success factor. Every time a customer uses the card, he/she earns points toward merchandise at Borders bookstores. Borders also has Business and Professional Services Cards in order to aid businesses in customization, ease of purchasing, and future discounts. Strategic trends, such as Wal-Mart and Target’s low cost leadership position, force Borders to maintain and constantly develop its differentiated position by emphasizing the customer service and experience. The category management system enables Borders to be flexible, organized, and meet customer needs efficiently and effectively. This type of management system allows Borders to dominate in the organization of its selection of books, CDs, and other such products. Customer service is another aspect of Borders’ differentiation in that the staff is well-trained, knowledgeable, and attentive. Employees help create the overall Borders customer experience. Furthermore, Borders’ in-store coffee shops encourage browsing, add comfort, and serve the customer. “Borders Group will install high-speed wireless service in cafes in all domestic Borders Books outlets by mid-2003, the company announced [October 10, 2002]” (Fleishman). Wireless Internet access not only differentiates customer service, but also enhances the customers’ experience. Future estimates for Borders include an approximated mean of 1.43 in earnings per share by the end of 2003. At the end of 2004, the mean is expected to increase to 1.55 in earnings per share. The long term growth rate is estimated to be about 13 in earnings per share. Barnes and Noble’s estimate in earnings per share is expected to be 1.57 in 2003 and 1.55 in 2004. The long term estimate is approximately 15.38. The top two competitors in the industry are expected to grow in the next two years, therefore the entire industry will most likely grow with them. The two companies will continue improving technological advancements and customer service in order to stay competitive and on top of the industry.
Company Situation Analysis

Overall, the Borders strategy appears to be keeping the company at the top of the market. The company makes more profit than Barnes and Noble, as well as manages its equity better. However, sales growth for Borders plummeted in the quarter ending 1/27/02, and has been slow to increase since then. The quarter ending 10/27/02 decreased from the quarter before it, yet Borders still manages to make a profit. (Appendix??? Income statement) Profit margins greatly differ between the two companies: Borders captured 3.31% profit margin compared to Barnes and Noble’s 1.54%. (Appendix???) By observing the companies’ return on equity, return on assets, quick ratios, and current ratios, one can see that Barnes and Noble’s equity is going to assets and not shareholders; while more of Borders’ equity is going to shareholders. (Appendix???snapshot) Therefore, it appears that Borders’ differentiation strategy is beating out Barnes and Noble’s strategy using the key success factors mentioned in the industry and competitive analysis. Borders possesses many strengths and opportunities, though, the company must realize and address the weakness and threat they face.
Borders’ strengths: Powerful strategic platform Recognized market leader High profit margin Strong brand name National and international geographic coverage “Title Sleuth” Category Management System Borders Cards Visa Business and Professional Services

Borders’ weaknesses: No measurable objectives in mission statement Less geographic coverage than Barnes and Noble Decreased profits in last quarter
Borders’ opportunities: Wireless Internet access in Borders Bookstores Advertisements on MapQuest’s driving directions website E-Commerce technology www.borders.com teamed with www.amazon.com Global market expansion

Borders’ threats: Barnes and Noble Popularity Innovations Amazon Popularity Innovations Current USA economic conditions New entrants Brick and mortar companies Online companies CD/DVD and literature technological advancements on the Internet * Sterling Publishing revoking supplies (Appendix???)

* Trends in the music and movie industry are heading towards technology allowing customers to pay for and download music and movies from the Internet. This technological advancement poses threats to the brick and mortar bookstores that also sell CDs. Companies may even go a step further and sell books and literature over the Internet. Lower costs are incurred due to the lack of inventory; customers merely download the information and pay for it using credit card, for example.

Borders’ strengths contribute to the company’s resources in that they have “staying power” and are difficult to duplicate. The differentiation strategy is defined by the customer experience and category management system. The trained and attentive employees with the category management system create an organized, helpful, and competitively superior customer experience. Borders prices directly compete with Barnes and Noble prices in that they are a bit lower and earn a lower price per earnings ratio. (Appendix ??? snapshot) There are significantly more Barnes and Noble stores which may contribute to the higher prices. Borders’ efficient category management system may also help with lowering costs and building revenue. Issues that Borders faces in terms of vulnerability to competitors is technological development and Internet capabilities. Borders has e-commerce capabilities, however, they must capitalize and constantly improve it to keep ahead in the industry. Borders must also realize the growing popularity of Amazon and Barnes and Noble as well as free literature on the Internet. Increasing profits is always a top priority, especially in the current USA economic slump; however, Borders must be creative and patient in dealing with the economic troubles.

Company Value Net Analysis

Buyers: Customers of Borders consist of anyone from teachers and students to parents. The market base of book buyers range far and wide; anyone who can read and afford books are targets.
Complementors:
Book shelves, lights, and any other book-related products qualify as complementors to Borders. Writing utensils (pens, highlighters, etc.) and notebooks are also complementors to any textbooks or educational books that Borders sells because people might take notes or mark certain passages. Glasses are indirectly complementors to books in that people who have trouble reading, might decide to buy glasses in order to enjoy their favorite books, or books that are mandatory for them to read (for school, work, etc.). CD players and computers are complements to the CDs that Borders sells. Coffee is a complementor in that some people enjoy drinking coffee or coffee products (espresso, cappuccino, etc.) while reading books.
Suppliers:
Publishers, authors, and musicians supply Borders with books and CDs.
Substitutes/Competitors:
The first six bullets are the direct competitors of Borders Bookstores, as mentioned in the industry and competitive analysis. The remainder of the listed points consists of substitutes for buying books or CDs at Borders. Instead of buying a child or friend a book, one may buy a board game or toy from a toy store or a movie/DVD. Newspapers and magazines are other alternatives to reading books, as well as surfing the Internet or watching television.
Conclusion
Borders is a major player in the book retail industry, and should remain competitive if it can continue improving technology and its differentiation strategy. Borders should capitalize on the e-commerce website as well as the wireless Internet access capabilities in each Borders store. Borders may even advance technology on the Internet to allow customers to download information for a price. Customer service will continue to improve with easy to use technology, like “Title Sleuth,” and advanced technology, like the e-commerce website. Allowing wireless Internet access in each Borders store will attract more customers, while urging them to buy more books, CDs, or any other book related products, because of increased time in the bookstore. Management should use current strengths to improve weaknesses and capitalize on opportunities. More promotions for major suppliers with aid the supplier-buyer relationship as well as encourage potential customers to browse the store. Continual advertising on MapQuest and television will also help increase awareness and brand name. Eventually, Borders managers should think of expanding nationally as well as internationally in order to increase the customer base. With further profits and use of equity, the management can fulfill the Borders strategic plan effectively and successfully.

Bibliography

Fleishman, Glenn. “Borders Will Install Wireless Service In Cafes.” New York Times, Friday, October 11, 2002. http://premium.news.yahoo.com/news?tmpl=story&u=/nytp/ 20021011/329843&.bail=http%3a%2f%2fpremium.news.yahoo.com%2frd%3fr%3d%22borders+books%22

Pringle, Sherry. Corporate Affairs/Investor Relations. Email correspondent. COOSAP@bordersgroupinc.com. 2/18/03.

Thompson, Arthur A and Strickland, Dr. A. J. Strategic Management: Concepts and Cases. McGraw-Hill/Irwin: New York, NY, 2001. 12th ed. Page 100.

Websites Visited http://www.bordersgroupinc.com http://www.barnesandnoble.com/ir/corpinfo/index.asp?userid=54GWFAT5P8

http://yahoo.marketguide.com/MGI/mg.asp?target=%2Fstocks%2Fcompanyinformation%2Fsnap&Ticker=BKS

http://yahoo.marketguide.com/MGI/mg.asp?target=%2Fstocks%2Fcompanyinformation%2Fsnap&Ticker=BGP http://yahoo.marketguide.com/MGI/mg.asp?target=%2Fstocks%2Fcompanyinformation%2Fearnings&Ticker=BGP http://yahoo.marketguide.com/MGI/mg.asp?target=%2Fstocks%2Fcompanyinformation%2Fearnings&Ticker=BKS

http://yahoo.marketguide.com/MGI/signdevt.asp?target=%2Fstocks%2Fcompanyinformation%2Fsigndevt&Ticker=BKS

Appendix A

Appendix B

Appendix C

Appendix D

Appendix E

Appendix F

Similar Documents

Free Essay

On the Border

...Anthony Batista Professor Black ENGL 102 06-06-2012 On the Border Is protecting our borders necessary? For the sake of argument, we can all agree some level of protection is necessary. A hasty generalization, perhaps, but let’s continue nonetheless. The real question becomes-- to what extent should we secure our borders? Here is where we reach a fork in the river. On one side, you have the conservative right-wing view, pushing to secure our borders at all costs. On the other side, is the liberal left-wing view, advocating for leniency when it comes to securing our borders. Let’s start with the conservative viewpoint. In the article “At the Border, on the Night Watch”, Marc Lacey reports on decreased border crossings in the border town of Douglas, Arizona. For example, “no matter the dire rhetoric often heard in political circles, crossings at this stretch of border are nowhere near what they once were” (Lacey). This is a good example of a slippery slope fallacy appealing to the fear factor (i.e. claim that a certain way of thinking or acting will necessary lead to more of the same). Proponents for border patrol argue an increase in staffing serve as a deterrent to thwart border crossings and help to apprehend drug traffickers, which ignores the possibilities of lesser financial incentive due to a weaker U.S. economy for immigrants or perhaps, more attractive crossing routes elsewhere. Another argument of proponents is improved fencing. For example, “Douglas used...

Words: 1184 - Pages: 5

Free Essay

Military on Border

...Should The United States Militarize Its' Borders What does the word territory mean to you? Could it mean simply an area of land that is ruled under the jurisdiction of a state or leader? Territory is one of the never ending battles humans of the Earth will face. We fought over it hundreds of thousands of years ago. And we are still fighting over it today. The battles we face today are different that in the past. Today the United States are fighting to keep the U.S. of America free and not overrun. But is that victory we envision in our future worth the cost it will entail. The only thing that is separating the United States border and Mexico’s border is simply an imaginary line. It is nothing we can see just what we are told is there. Then there are the official structures, the fences and wall and the use of border patrol agents to enforce the laws and boundaries. Yet you still have illegal immigrants crossing into United States territory without permission. What can we do to solve this issue at hand? We can invest in the use of heavy force. We can militarize our borders. Militarization is the organization or aggregation of military force in a territory. (Wickham, n.d.) The United States can send thousands of men and women to the borders to stop this from occurring. They can increase the size of the fences and walls. Invest in drones and spy planes. The only problem is how many will it take, or how will this affect the economy of the United States. This could lead to higher...

Words: 2312 - Pages: 10

Premium Essay

Border Crossing

...indigenous people. Zaitchik is a freelance journalist who is affiliated with Poverty Law, a U.S. organization that supports ethnic and racial tolerance. He also has published articles in the Prague Post, the Prague Pill, Reason, and the New Republic. Zaitchik’s article attempts to convey the idea that Mexico’s economy is forcing people to take desperate measures in order to survive. He uses his experience with a border crossing simulation as a way to lure the reader into the article. Zaitchik then proceeds to use statistical evidence to enlighten the reader about Mexico’s economic dependency on migrant workers. Zaitchik travelled to Mexico to learn about and participate in the border crossing simulation. He effectively uses his experience with the border crossing simulation, its participants, the Otomi people and his knowledge of the Mexican economy to effectively present his argument. Zaitchik’s personal experience and knowledge of the Otomi’s plight supplement his argument. He provides a series of facts and anecdotal evidence to show the emergence of a border crossing simulation in Mezquital Valley as a prelude to a bigger problem, Mexico’s economic dependency on migrant workers. Zaitchik states that the Otomi, the indigenous people of Mezquital Valley, lost 90% of their working class to migrant workers (258). Many of the Otomi migrant workers make the trip north to work seasonally, but many are unable or unwilling to return (259). The author’s use of these facts establishes...

Words: 1251 - Pages: 6

Free Essay

Borders

...Characteristics of Business Management The purpose of this paper is to show a comparison of two successful businesses. Borders Books and Amazon.com are two companies that both sold books but used different methods in operating their businesses. Even though they both were successful businesses, both companies had different leadership styles, visions and goals. Out of the two businesses, only one remain successful and present today. In this paper, I will show how both businesses started, how the leaders differ in leadership styles and techniques, and how Amazon continues to be a great success today. Description of the Businesses I will describe each business and how each business started. I will also describe three main challenges each company faced while establishing or running the business. Amazon.com was founded in 1994 by Jeff Bezos as an online bookstore. As CEO he has built it into the largest retailer on the web, selling everything from groceries to electronics and shoes. Jeff Bezos was working in a quantitive analysis group at an investment firm, when he saw an opportunity to sell books on the internet. In 1994 he went on a cross-country drive from New York to Seattle to start Amazon. He typed his business plan as he went. And he picked up $300,000 dollars from his parents in Fort Worth, Texas. He set up his business in his garage and began selling books via the internet. His business became worth $4.4 billion according to Forbes' latest billionaire...

Words: 1656 - Pages: 7

Premium Essay

Cross Border Teamwork

...Exercise 2 – Cross-Border Teamwork Alexander Braeunig Ramkhamhaeng University Course: BUS 7100 – Managing Human Capital Lecturer: Prof. Dr. Aysar Sussan Term: 01/2015 Submission date: 26th of July Abstract The word “cross border teamwork” becomes nowadays more popular in every multinational organization. Global business Management needs cross-border teamwork for effective communication and contribution. Big companies have subsidiaries in various countries which differ in culture, time zone and language and other important aspects. This makes effective cross-border teamwork sometimes very difficult however it helps companies to improve competitive advantages and achieve goals properly when doing right. This exercise consists of 3 parts and focuses and setting up and forming such a team. Furthermore issues coming along with running a team and resource sharing will be discussed as well. Question 1 – Forming a cross border Team The main function of Human Resource Management is selecting and recruiting members. Virtual Teams are somehow different than local teams. It needs special qualifications such as proficiency in using communication software such a skype etc. for conferences. Furthermore an ability to form team relationships quickly and effectively is important in order to have a good engagement within the team. Proper communication both written and spoken in a virtual environment across cultures is necessary. As a next step team members must be provided with...

Words: 1104 - Pages: 5

Free Essay

Borders

...affect the company, however; in many cases no matter what is to be done business can fail and falter. It is in how the people learn their errors that will help in the next turn of successes. Borders Group, Inc. was one of those companies whom were not successful in the business world. First founded in 1971 in Ann Arbor, Michigan by Tom and Louis Borders felt that their look of books would be transfer to the many people of Ann Arbor. The former Chairman and CEO Mike Edwards and former President Scott Henry were optimistic as well of this retail bookstore to grow and make money. With the idea of growth, Borders grew to 511 superstores in the United States by January 30, 2010 and 175 Waldenbooks Specialty Retail, which is subsidiaries company seem to show things were going good, Non the less in February 16, 2011, Borders applied for Chapter 11 bankruptcy. What could have happened in the short 40 years that would make this company lose it all? Even the mission and vision statements of Borders Groups cloud not save this company. The Mission statement was divided in to two parts: “Our Vision” and “Our Values” and their vision statement stated, “To create richer and more satisfying lives through knowledge and entertainment.” (Farfan, para 3). There could be much reason why Borders did not success has these articles states these are explanations on why: 1. It was too late to the Web....

Words: 814 - Pages: 4

Free Essay

Aworld Without Borders

...A WORLD WITHOUT BORDERS Globalisation can be defined as the process in which the connectivity and interdependence between markets and businesses increases. It means that as economies become more interconnected, more opportunities arise. This process has been questioning the idea of national boundaries. Should there be boundaries between countries? Are they necessary? Boundaries have certain functions such as demarcating the territorial limits of a state’s jurisdiction and authority, the regulation of movement of people, capital, commodities and information between state territories and the assignation of an identity and citizenship. Are these functions being replaced by globalisation and business movements? The end of boundaries is not nigh. Firstly, one of the main functions of boundaries or national borders is, as said, the demarcation of the territorial limits of a state’s jurisdiction and authority. A state is sovereign by right. Borders are powerful symbols of the state’s power. It means that the government has the legitimate right to exercise coercion. When it comes to globalisation differences arise such as the meaning of sovereign to nations inside different territories. It is usually seen by national institutions with different points of view as to what sovereign means and depending of what constraints they might have. Boundaries cannot be erased to create a global community when there is no agreement about who is sovereign, where and how. Businesses would certainly...

Words: 718 - Pages: 3

Free Essay

Border Crime

...Brian Piersall Vincent Portillo Proposal for an Inquiry Paper 4/13/11 Border Crime Background: The blanket topic of border crime has always held a great amount of interest for me. I have done a few other papers on the topics of immigration, and the Mexican drug cartels. Through those papers I have learned a great deal, however I have only ever researched the problems along the Mexican-American border. Through this paper I have started branching my research out to include criminal activities along the other border as the Canadian-American border and the oceanic borders. In addition to already having done some research on one part of this topic, there is another reason that caused me to be interested in this topic as well. This reason was the main event that was the spark that lit the flame of curiosity in me, and it occurred on one of the many trips down into Baja Mexico that my father and I take almost every year. This particular incident took place around two to three years ago in some small Mexican down about some odd two hundred miles down into Baja. Back then I had no real interest in the problems that occurred along our borders any more than what I would see from time to time in the newspapers or on TV. I didn’t really realize that there was a real problem with the Mexican Cartels; I like many Americans was blind to what was going on outside of my own little bubble in my own little town. However after this trip I realized that there were problems in Mexico...

Words: 1261 - Pages: 6

Premium Essay

Determinants of Cross Border Mergers

...Determinants of cross border mergers and acquisitions A cross-border merger is where the assets and operation of two firms belonging to or registered in two different countries are combined to establish a new legal entity. Cross border merger are important as it is considered as the mode of entry in the foreign market, provides a dynamic learning culture and is an important value creation strategy. Several factors are responsible for fuelling the growth of cross border mergers. Few among them are industry consolidation phenomenon, privatization and liberalization of the economies. The volume of cross border mergers has increased over the period from 23% of total merger volume in 1998 to 45% in 2007. Cross border mergers provide another dimension to domestic mergers because of cultural or geographic differences, government related differences, imperfect integration of the capital markets, changes in exchange rate and stock market valuations in local currency. A parallel literature to that on cross-border mergers concerns FDI. In this paper, we focus our empirical work on mergers and acquisitions rather than all FDI due to data quality. FDI contains components other than investment such as inter-company loans and retained earnings. As per the journal, the merger sample includes deals announced between the period 1998 and 2007. The total sample was of 187,841 mergers covering 48 countries. Out of this, 56,978 were cross border mergers with a total transaction value of $2.21 trillion...

Words: 1321 - Pages: 6

Free Essay

Amazon and Border

...Amazon & Border Books Risa Knight Professor Alethia R. Gardner Business 302: Management Concepts July 26, 2012 Amazon & Border Books The Defense Department created the Internet to keep its computer networks connected during an emergency due to national disasters or enemy attacks. Over the years academic researcher and the government adopted the internet and used it to exchange data and messages. Jeff Benzo’s realized that the internet usage was increasing by 2,300 percent a year. These numbers made Benzo recognize an opportunity for a new business. Jeff Benzo reviewed 20 mail order businesses and he asked himself which could be conducted more efficiently over the internet? Books were the only commodity that mail order catalogues did not exist, because the catalog would be too big for mail; making the selling of books perfect for the internet. Benzo flew to Las Angeles to attend the American Booksellers Convention so that he could learn everything about the book business. Benzo then had to find a location on the internet where people could buy the books by searching what was available and in stock and place their orders. Benzo then made the decision and sacrifice to leave his job in New York and move to Seattle where he could have ready access to the books wholesalers Ingram and the access to the computer talent that he would need for his new enterprise (Spiro, 2009). He opened his business out of his garage in his Seattle home which Nick Hanauer who believed...

Words: 1690 - Pages: 7

Free Essay

Border Control

...Border Control The Mexican-United states border is the most frequently used border in the world. For most, crossing this border symbolizes new opportunity and a chance for a better life. Laws, regulations, and money have caused the journey from Mexico to The United States to be extremely difficult. This causes people to cross illegally. The United States needs to make crossing the border and becoming a legal citizen easier and more achievable. The U.S. border control was created in 1924 to stop illegal transportation across the border into America. The U.S. Customs and Border Protection describes border control as the following: Since its inception in 1924, the U.S. Border Patrol has had a proud history of service to our nation. Although enormous changes have affected nearly every aspect of its operations from its earliest days, the basic values that helped shape the Patrol in the early years; professionalism, honor, integrity, respect for human life, and a shred effort, have remained. (1) Soon after the law defined “illegal alien” as “a foreigner who has entered or resides in a country unlawfully or without the country's authorization”. Dictionary (1) These foreigners who wanted nothing more than to live “The American Dream” were quickly recognized as the enemies of America. Opinions became formed that these immigrants were lazy criminals who were here to destroy the U.S. Soon illegal and legal immigrants from Mexico were viewed and treated with little to no respect. ...

Words: 1228 - Pages: 5

Free Essay

Beyond Borders

...Lisa Eichholz Dr. Hilary Harris English 096-10 November 10, 2011 Beyond Borders Recently there has been a dramatic increase of refugees, estimating 11 million today which is up from the 3 million that was recorded in the mid-1970s (UNHCR.com). Founded in 1919, the International Federation of Red Cross and Red Crescent Societies (IFRC) is now the largest humanitarian organization. In 1965 the IFRC proclaimed the Seven Fundamental Principles of Humanitarianism. The principle of humanity, the principle of impartiality, the principle of neutrality, the principle of independence , the principle of voluntary, the principle of Unity, and lastly the principle of Universality. The film Beyond Borders follows Sarah Bauford (Angelina Jolie), Nick Callahan (Clive Owen), and a small group of aid relief volunteers working throughout a few of the world’s most volatile areas. This films greatest lesson is showing the existing needs of many people and how there are few who are there to help and trying to make a difference. This film exemplifies the most important of the principles of humanitarianism in a very complex way. In the film many of the characters exemplify the principle of humanity in both positive and negative ways. The principle states that the movements goal is to “prevent and alleviate human suffering” by promoting “understanding, friendship, cooperation, and lasting peace.” At the beginning of the film Nick Callahan storms into the aid relief international’s black...

Words: 948 - Pages: 4

Premium Essay

U.S. Border Security (Land, Air, Sea)

...U.S. Border Security (land, Air, Sea) Kelvin Lewis National University U.S. Border Security (land, air, sea) International borders define the sovereign territories of nations like the United States. Ports of entry and borders provide the exit and entrance points for people, goods, and conveyances, which enter or depart a country. Modulating borders and other ports of entry like the airports is crucial in ensuring the law and preventing the flow of contrabands, which may include illegal drugs. Moreover, criminals may use these points of entry to enter the U.S and carry out their illegal activities. The U.S borders and airports have exhibited a vulnerability towards the drug threat. Through restricting the flow of drugs across its borders, the U.S can reduce the availability of drug within its borders (McLinden & World Bank. 2011). Consequently, it may significantly reduce the effects of drug trafficking and drug abuse in the country. The smuggling of drugs and the entry of criminals is an unbearable slur to the welfare of the nation. The duty of countering the effects of aliens and contrabands is vested in local law-enforcement, state and federal agencies. These agencies are responsible for setting up security schemes in the airports. Nonetheless, recent terrorist and smuggling events have portrayed the vulnerability of the security systems in the U.S airports. The security systems employ modern and conventional technology. It thus begs the question as to...

Words: 1199 - Pages: 5

Premium Essay

Amazon vs Borders

...economic network effects, he decided to setup his company in Seattle, WA, very close to the largest book distribution warehouse and talented computer programmers in the U.S. According to a quote that Bezos said in an article publicized in U.S. News, “While we're crossing the desert, may we be thirsty, but we sincerely believe there’s an oasis on the other side" (Jeff Bezos, 2008, "Living on the Edge, "para. 6), Bezos always had the vision to achieve his goals, regardless of what obstacles and hindrances he faced at first, he always kept in view the purposes to hopefully and eventually reach his goal regardless of the risks. During their undergraduate and graduate years at the University of Michigan. The brothers Tom and Louis Borders, founded Borders Books in 1971. The main purpose of forming this company...

Words: 2265 - Pages: 10

Premium Essay

Amazon vs. Borders

...Amazon.com and Borders Books Professor Business 302 Management Concepts Week 4 Assignment Angela Reed Amazon Amazon is a Fortune 500 company; it is the largest online electronic retailer in America. Amazon is credited with popularizing online shopping. Amazon.com considers itself a completely customer centric company, its company values statement is: * Customer Obsession: We start with the customer and work backwards. * Innovation: If you don’t listen to your customers you will fail. But if you only listen to your customers you will also fail. * Bias for Action: We live in a time of unheralded revolution and insurmountable opportunity - - provided we make every minute count. * Ownership: Owners matters when you’re building a great company. Owners think ling-term, plead passionately for their projects and ideas, and are empowered to respectfully challenge decisions. * High Hiring Bar: When making a hiring decision we ask ourselves: “Will I admire this person? Will I learn from this person? Is this person a superstar? * Frugality: We spend money on things that really matter and believe that frugality breeds resourcefulness, self-sufficiency, and invention! Amazon was founded in 1994 by Jeffrey Bezoes; the website was launched in 1995. It began as an online bookstore, it has grown to sell many other products, such as: clothing, gourmet food, watches, jewelry, baby products and apparel, beauty products, sporting goods, music CD’s, DVD’s, video...

Words: 1227 - Pages: 5