...GBCGlobal Business Context (BIM) Section (A) 60% of mark Explain how (i) consumer demand for housing (ii) predatory selling of mortgages to the sub-prime market and (iii) mortgage-backed securities generated a housing bubble in the United States of America before September 2007. There were quite a few “players” that helped cause the financial crisis and gave birth to a bubble in the USA’s housing market. One of them is the consumer demand for the housing. Obviously consumer demand was high for people to own their own home in America “with bankers offering home buyers 0%-110% mortgages” encouraging buyers to want to buy a home even more, then with that America tried to meet the demand, supplying more houses due to constructing new ones. Luci ellis said that “Firstly, the US housing construction boom itself helped create this vulnerability. In contrast to some other countries, strong housing demand was met with additional supply that exceeded underlying needs. When the boom stopped, the United States was left with an overhang of excess supply that other countries have not built up” so By the end of that year, housing starts had fallen by around 40% “ therefore in the end the supply was greater than the demand and the US had spent money on houses that no one needed. However Paul Krugman, (September 2009) said that “Few economists saw our current crisis coming, but this predictive failure was the least of the field’s problems. More important was the profession’s blindness...
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...Individual Assessment SM0269 Global & International Business Context Nurhuda Binte Md Yassin Student ID: 12034616 Word count: 3,189 words INTRODUCTION This report aims at facilitating the company’s decision-making process concerning the consideration of expanding its international operations in food retailing to South Africa. The overall competitiveness and investment attractiveness will be based on the extended version of Porter’s National Diamond and supplemented with key management issues of South Africa food retail industry, to which the company can tailor its strategy. The analysis recommendations will be made, that need to be considered by the company before deciding in opening its operations in South African food retail industry. Brief Summary of South Africa Food Retail Industry |South Africa, a growing retail market with a population of around 49 million people, possesses a modern infrastructure supporting relatively | |efficient distribution of goods to urban centres, townships and rural areas throughout South Africa and Southern Africa (Ntloedibe, 2010). South | |Africa have been identified among the ten new markets most likely to appeal to multinational store groups, along with four other African countries -| |Algeria, Kenya, Morocco and Nigeria (Ventures Africa, 2012). ...
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...Table of Contents 1.0 INTRODUCTION 3 2.0 PORTER’S NATIONAL DIAMOND ANALYSIS 3 2.1 THEORETICAL FRAMEWORK 4 2.2 FACTOR CONDITIONS 5 2.3 DEMAND CONDITIONS 6 2.4 RELATED & SUPPORTING INDUSTRIES 7 2.5 FIRM STRATEGY, STRUCTURE & RIVALRY 7 3.0CONTEMPORARY MANAGEMENT ISSUES 8 3.1 CORPORATE SOCIAL RESPONSIBILITY 8 3.2 CORPORATE GOVERNANCE 10 4.0 MARKET ENTRY STRATEGIES 11 4.1 JOINT-VENTURE 11 4.2 DISTRIBUTION SYSTEM 12 5.0 CONCLUSIONS 13 6.0 REFERENCES 14 1.0 INTRODUCTION The purpose of this paper is to discuss and evaluate the attractiveness of the food retail industry in India. Research on the Indian food retail industry will be executed to construct an analysis of the overall competitiveness and investment attractiveness. In Part 1, the researcher will apply the extended version of Porter’s National Diamond (PND) model to the Indian food retail industry. In Part 2, two key management issues will be taken into account and analysed before developing any further operations into the Indian food retail industry. In Part 3, two market entry strategies will be selected, compared, and discuss the advantages and limitations of each to determine the optimal strategy to be implemented in regards to the Indian food retail industry. 2.0 Part 1: PORTER’S NATIONAL DIAMOND ANALYSIS India has experienced significant social and economic change as of late, enabling a solid consumer market for foreign retailers. According to UNICEF, the Indian economy has been booming, with...
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...Global and International Business Contexts – SM0269 W13012208 Jack Goddard Word Count: 3457 Table of Contents Introduction 3 Part 1: Porter's National Diamond Analysis 3 Part 2: Contemporary Management Issues 7 Part 3: Market Entry Strategy 11 Recommendation to the Board of Directors…………… ……………………………… ….13 Appendices 14 References 15 Introduction This report has been written by the Boston Consulting Group and uses Porter’s national diamond analysis model to evaluate the attractiveness of investment opportunities in the Tunisian wine industry. Also discussed are two key management issues that need to be taken into account before developing operations in Tunisia followed by recommendations on two strategies for entry into the Tunisian wine industry market. In terms of background to this report, it should be noted that the global market for wine industry is changing significantly with substantial differences in the structure of the wine industry around the world. For instance, there are 232,900 wine producers in France but the top 10 brands control only 4% of the market. In contrast, four firms control over 75% of the Australian wine market. Hence there is a marked difference in industry structure when comparing the “New World” producers (e.g. Australia, Chile, United States) to the “Old World” firms. These structural differences are driven by institutional...
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...Globalisation of Markets' (Harvard Business Review 1983) caused many companies to examine their international advertising strategies and to adopt a global strategy. What problems do you see in such an approach? Advertising is a universal business activity today. As media has spread across the world and marketers have expanded it reaching different unexplored counties, advertising is gaining impetus in the whole globe and it is easy to identify when you move from a place to another or simply when you travel that you realize that advertising is the most visible manifestation of the globalization of business in general and of brands in particular. Advertising allows consumers to “compare goods, which often results in lower prices and improved product quality; advertising stimulates the economy by encouraging consumption; and it has the potential to improve living standards” (Mueller, 1996, p. 256). When you talk about International Advertising it is means that you are talking about cross-border advertising and it is possible to have a specific connotations that you can adopted as a global strategy. According to Jones, J. (2000) there is two countries who believe that their advertising is the best in the world: United Kingdom and United States, and he stressed that the language (English) has becoming the primary worldwide language, at least for business; that belief make it change Levitt's concept of global marketing into global advertising. The number of global brands is very short and...
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...Managing In a Global Environment Instructor Course Research shows that a company needs more than a set of techniques, skills, and global desires to succeed at a global level. However for a company’s success, it requires the development of a global mindset for both managers and organizations (Jessberger, et al., 2013). A vast majority of managers find themselves working in foreign firms within or outside their country. However, for them to navigate through ambiguities and complexities, they will need to develop a proper mindset that will surpass their traditional management responsibilities. The ability of managers to influence and appreciate individuals, systems, groups and organizations that represent different psychological, cultural, political, social, institutional and intellectual characters can be termed as a global mindset. A manager with a global mindset is not limited in by his or her mindset which only favors one’s personal view but rather responds to a variety of different perspectives at the same time (Jessberger, et al., 2013). However, a vast majority of managers fail to understand that the values that govern the business in their country don’t necessarily work for those in other nations. Research shows that a vast number of people with exposure to different cultures can easily speak various languages and can adapt into a global lifestyle. However, as per research, that global leaders have extensive experiences communicating with a large variety of people due...
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...coordination and when they cater to the firms’ interests in expanding its business beyond the borders of its home country, the parameters for analysis change. The company has to think beyond its own domestic construct and towards a more broad-based approach. Multinationals have to consider a completely new array of factors which range across the home country, the foreign country and even the distance in between. In today’s world of interconnectedness, FDI has been facilitated through the use of modern technology and the transferability of technology across boundaries. The global trading environment allows for investment flows across countries. While countries may be wary of imports, FDI is always welcomed as it leads to job creation within an economy and a boost to GDP. The FDI decision would itself be one needing intense planning, strategizing and thorough analysis. The factors which determine investment decisions by large firms vary across countries and it is up to the firms to determine whether the costs incurred by the variances among these parameters would be worth the price of admission. The cost benefit analysis has to be thorough given that the company is exploring new markets which could be considered a whole new world within the context of the company. Stepping out of the bounds of its own industrial and economical context and towards a global context or towards the industrial and economical context of a different country altogether is a decision in need of clear and thorough...
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...International Journal of Business and Management; Vol. 7, No. 16; 2012 ISSN 1833-3850 E-ISSN 1833-8119 Published by Canadian Center of Science and Education Cross-Cultural Etiquette and Communication in Global Business: Toward a Strategic Framework for Managing Corporate Expansion Ephraim Okoro1 1 School of Business, Howard University, Washington, USA Correspondence: Ephraim A. Okoro, Department of Marketing, School of Business, Howard University, 2600–Sixth Street, NW, Washington, D.C. 20059, USA. Tel: 1-202-806-1545. E-mail: eaokoro@howard.edu Received: March 22, 2012 doi:10.5539/ijbm.v7n16p130 Abstract The expanding scope of business corporations in the first decade of the twenty-first century is drawing much scholarly attention, and the trend has been described as a fact of life that defies the stretch of human imagination. The concept of global economy has expanded consumer awareness, defined new standards and rules of operations, and increased the need for national and corporate interdependence. Multinational organizations are exploring opportunities around the world, demonstrating sensitivity towards cultural differences in order to gain from the proliferation and growth of international enterprise. Recent studies indicate that while some corporations compete successfully in the global marketplace, others have failed to sustain their competitive advantage because of cultural imperialism or inadequate acculturation of their managers on international assignment...
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...17 October 2012 Jönköping FINAL COURSE PAPER: Effective leadership in a global context Global leadership & Carlos Slim Helú ‘’ Work that is done well is not only a responsibility to one’s self and to society, it is also an emotional need. You cannot live without doing something; [you need] a direction in life. It’s very important for leaders in business to work to create human capital, a team that has the same sense of purpose and alignment. They will feel that they are doing something that is important for society and the people around them. That is very important, along with having achievements. ‘’ – Carlos Slim Helú Written by: Bob L.A. Dijkxhoorn Advanced Leadership - JALR21 Jönköping International Business School Bob L.A. Dijkxhoorn JIBS, 17 October 2012 Effective leadership in a global context Leadership is a phenomenon that is executed in many different industries and professions around the globe aiming at goal achievement through optimal utilization of followers. Globally the noun is used for divergent purposes in different cultures. Therefore there is no right or wrong explanation of the word ‘’leadership’’. There is however a right way to execute leadership that moderates goal achievement and maximizes follower output. This paper is written in order to explain how leaders should act in different situations in order to be effective. We all have a certain perception of leadership and how to act as the best leader possible. However, leadership...
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...45 2014 January International Business Studies and the Imperative of Context. Exploring the ‘Black Whole’ in Institutional Theory Michael Jakobsen ©Copyright is held by the author or authors of each Discussion Paper. Copenhagen Discussion Papers cannot be republished, reprinted, or reproduced in any format without the permission of the paper's author or authors. Note: The views expressed in each paper are those of the author or authors of the paper. They do not represent the views of the Asia Research Centre or Copenhagen Business School. Editor of the Copenhagen Discussion Papers: Associate Professor Michael Jacobsen Asia Research Centre Copenhagen Business School Porcelænshaven 24 DK-2000 Frederiksberg Denmark Tel.: (+45) 3815 3396 Email: mj.int@cbs.dk www.cbs.dk/arc International Business Studies and the Imperative of Context. Exploring the ‘Black Whole’ in Institutional Theory Michael Jakobsen Associate Professor Asia Research Centre Copenhagen Business School mj.int@cbs.dk Abstract The aim of this article is to take a critical look at how to perceive informal institutions within institutional theory. Douglas North in his early works on institutional theory divided the national institutional framework into two main categories, formal and informal institution or constraints as he called them. The formal constraints consisted of political rules, judicial decisions and economic contracts, whereas informal constraints consisted of socially sanctioned norms...
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...analyzes the cross-cultural negotiations happening between Australia and China through organizational business transactions. With today’s modern trades, negotiators aim to attain a “win-win” situation between one another under a rational and wholesome environment. It is a necessity for multinational corporations to have a cross-cultural based management. Differences of cultures across the globe would induce large organizations to embrace themselves with a variety of counter strategies, as it can majorly impact the firm’s performances if left unattended. Hofstede (1983) established that the differences between each nation create diversity, which exist in various aspects mainly: Power distance, uncertainty avoidance, Individualism, masculinity and long term versus short-term orientation. These factors implement the approaches from which a nation converse with the other healthily creating little to no conflict. ‘Why China plays hardball’ article presents the different business cultures which are dealt between Australia and China. Through analyzing the article, we may compare the issues of culture between the nations. Cultural biases Ethnocentrism is an assumption that one’s way is the best way of doing and all other possibilities are not relevant under no matter whatever conditions applied (Deresky & Christopher 2012). Within this article, it implements the hard facts of global corporations joining the Chinese market in creating a term of collaborative undertakings. Gettler (2013)...
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...DAVID PRIFYSGOL CYMRU: Y DRINDOD DEWI SANT School of Business The Global Business Environment SBUS4004 Summer June 2014 – Term 1 October 2014 – Term 2 SBUS4004 The Global Business Environment MODULE CODE: TITLE: LEVEL: CREDITS: TEACHING METHODS: SBUS4004 The Global Business Environment 4 20 Lectures Seminars Independent Study N100 16% 8% 76% JACS CODE: AIM(S) • To introduce the importance of the global business environment within which organisations operate. To enable students to identify and recommend business decisions considering the changing components of the global business environment. • LEARNING OUTCOMES By the end of this module students should be able to: • • • outline and discuss the characteristics of an organisation’s environment; identify and discuss how organisations interact with the global business environment; interpret and produce supply and demand (price) predictions based on global business environment scenarios; distinguish how different organisations compete domestically and internationally; understand and identify cultural differences between countries and the importance of the different aspects of culture in doing business in a global context. • • CONTENT • Determining the difference between needs and wants and their significance to economics and business. Three economic systems, planned, free and mixed economies and the implications of each system on business/ organisations and society. Market classifications...
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...The Global Leadership Mindset BY EILEEN M. ROGERS The integration of multiple geographies, cultures, nationalities, ages and styles in enterprises around the world is having an enormous impact on business relationships. Leaders today need a new, specialized set of skills if they are to be successful. 18 Chief Learning Officer • June 2010 • www.clomedia.com ueled by social networks and technology, universal collaboration is becoming a daily business reality. Global data and knowledge are now accessed on devices that people can hold in the palms of their hands. Jim Kouzes, renowned leadership expert, recently described this shift by stating that “while the content of leadership has remained the same over the past 20 years, the context has not.” Leaders striving for success today must be able to master three new levels of competence: • Global business acumen: The new financial, industry, functional and technical skills needed to navigate a market characterized by rapid evolution of business models, markets, products, and mergers and acquisitions. • Global mindset: The capacity to engage in a boundaryless and synthesizing cognitive process that identifies opportunity and innovation in complexity. • Global citizenship: A potent combination of geographic, political, economic, governmental, legal, cultural, technological and environmental savvy that informs business strategy formulation and execution. Global Mindset vs. Global Citizenship A global mindset includes the ability...
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...DigitalCommons@ILR. It has been accepted for inclusion in Visiting Fellow Working Papers by an authorized administrator of DigitalCommons@ILR. For more information, please contact jdd10@cornell.edu. The Role of Corporate HR Funcitons in MNCs: The Interplay Between Corporate, Regional/National and Plant Level Abstract The HR literature has been abundant in providing typologies of the roles of HR professionals in their organisation. These typologies are largely related to the changing nature of HRM over time, and the context in which empirical work was carried out. In this paper we focus on the context of the increasing internationalisation of firms and how this has an effect upon modern-day typologies of HR roles. We explore these roles by focusing on the way in which HRM practices come about. Especially in a MNC setting of increasing internationalisation of firms the issues of coordination, shared learning and standardisation versus leeway for adapting to the local context (customisation) are prominent. These issues present themselves both at the corporate and regional level and at the national and local (plant) level. On all these levels HR practitioners are active and find themselves amidst the interplay of both (de-)centralisation and standardisation versus customisation...
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...4 SOCIAL AND CULTURAL ENVIRONMENTS SUMMARY Culture, a society’s “programming of the mind,” has both a pervasive and changing influence on each national market environment. Global marketers must recognize the influence of culture and be prepared to either respond to it or change it. Human behavior is a function of a person’s own unique personality and that person’s interaction with the collective forces of the particular society and culture in which he or she has lived. In particular, attitudes, values, and beliefs can vary significantly from country to country. Also, differences pertaining to religion, aesthetics, dietary customs, and language and communication can affect local reaction to brands or products as well as the ability of company personnel to function effectively in different cultures. A number of concepts and theoretical frameworks provide insights into these and other cultural issues. Cultures can be classified as high- or low-context; communication and negotiation styles can differ from country to country. Hofstede’s social value typology sheds light on national cultures in terms of power distance, individualism vs. collectivism, masculinity vs. femininity, uncertainty avoidance, and long- versus short-term orientation. By understanding the self-reference criterion, global marketers can overcome the unconscious tendency for perceptual blockage and distortion. Rogers’ classic study on the diffusion of innovations helps explain how products are adopted...
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