...Global business drivers: Aligning information technology to global business strategy by B. Ives S. L. Jarvenpaa R. O. Mason The alignment of worldwide computer-based information systems and integrated business strategies is critical to the success of multinational firms in a highly competitive global market. In this paper, information technology (lIT) solutions are explored that drive firms toward making economic decisions based on worldwide distributed knowledge. These solutions focus on a number of entities (or global business drivers) that identify where a firm can benefit most from the management and application of the technology. A variety of approaches for overcoming the barriers and risks of applying this technology are also discussed. n the forefront of the transition of a firm to a globally coordinated and managed organization is information technology. Information technology can drive the change, be harnessed to it, or rise up as a severe impediment. The chief executive of a major corporation has suggested that "globalization is no longer an objective but an imperative, as markets and geographical barriers become increasingly blurred and even irrelevant." 1 This paper explores how the application of information technology to the transition process can result in successful firms in a global market. Information technology (1fT) can drive a firm toward globalization in a number of ways. Using computer and communications technologies, IBM SYSTEMS JOURNAL, VOL 32...
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...China and India affecting the global business environment? ■ What impact has the global financial crisis had on the way businesses operate? ■ How should business leaders in the age of the multinational enterprise approach their social and ethical responsibilities? This bestselling textbook tackles these and many other challenges head on. Combining a clear, thorough introduction to the business environment with a uniquely global perspective, The Global Business Environment covers all you need to know about the rapidly changing context in which businesses operate. Features throughout the book are designed to help you learn, revise and think critically about the global business environment: ■ Case studies: Over 30 case studies invite you to explore how a diverse range of businesses, industries, governments and individuals are meeting the challenges of the contemporary business environment ■ Spotlight on emerging economies: Provides insight into the emerging economies of Brazil, Russia, India and China, and their place in the global economy ■ Meet the CEO: Your chance to learn about some of the most influential business leaders in the world, from the CEO of multinational Unilever to the chairman of Mitsubishi ■ Critical thinking: Recurring themes and critical thinking boxes in every chapter encourage debate on key issues from the globalization of industries to environmental sustainability, developing skills that will take you far beyond your business degree Enriched by Janet Morrison's...
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...Identifying Global Business Opportunities 1. POTENTIAL MARKETS Discuss one or more of the global business opportunities from above in terms of: (a) a specific product or service, including customer benefits; and (b) a potential market-a country that would be appropriate for this business opportunity. 2. ABSOLUTE AND COMPARATIVE ADVANTAGES Analyze for the presence of an absolute or comparative advantage that might be related to a business opportunity in the country where the item will be produced or sold. Describe how this analysis might influence the success of your proposed business idea. (For example, the availability of natural resources can make a business opportunity cost efficient.) 3. BUSINESS OPPORTUNITY ANALYSIS Compare two or more proposed business opportunities based on factors such as foreign market potential, start-up costs, and foreign business risks. (For example, a proposal to construct new highways may be appropriate for a developing economy. However, the risks in this market are probably greater than in an industrialized nation.) 4. Research the international operations of a company doing business in several countries. Obtain information related to: (1) the products sold in various regions of the world; (2) current and planned business activities in specific regions of the world-Asia, Africa, Eastern Europe, Middle East, Latin America; (3) the company's strengths and weaknesses related to global business activities; (4) future actions...
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...BI-WEEKLY ASSESSMENT Question 2: "The study of international business is fine if you are going to work in a large multinational enterprise, but it has no relevance for individuals who are going to work in small firms." Evaluate this statement. Introduction With the evolution of society, the phenomenon of globalization has gradually emerged in the field of economy, environment and culture. As a part of economy globalization, close economic connection between countries is bridged by means of international business. In terms of the study of international business, some people assess that it is solely positive for those who intend to work in a large multinational corporation instead of in small company whereas others insist that both international business plays a crucial role in the development of large-scale and small-scale enterprises. Therefore, this essay will argue that international business brings about benefits to individuals whoever are engaged in the big firm as well small one. Development In some circumstances, the size of the company has turned to be one of the obstacles when international business is expected to establish. According to Aaby and Slater (cited in Abdul-Talib et al. 2011, p. 6), small enterprises are more likely to lose international collaboration opportunities than large firms as there are insufficient resources and capabilities to develop export internationally in small-scale company. Similarly, it is shown that the organization would prefer to...
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...Definition: Ethics in Global Business: The system of moral principles and rules that become standards for a group or for professional conduct. Summary: In Emerging Global Business Ethics, Jane Gebhart focuses on a publication called “Supercharging Corporate Performance. This article argues that “corporate ethical practices create an organizational climate capable of motivating the innovative and risk-taking initiatives that are essential to achieving and sustaining corporate excellence”. Focusing on 4 distinct tasks, the author suggests that organizations must be cognizant of issues in their business, managers must design a “strong competitive strategy and operating management”, define procedures and processes that elevate ethical values, and recruit/retain individuals with strong moral character. Discussion: I chose this article to discuss due to the direct relation I see in business personally. If you do not recruit individuals with a strong caliber of moral character, your corporate mission statement (however seemingly standardized and righteous it might seem) will never reach a level where each department upholds a certain level of uniform company values. To have locations dealing internationally, a business must also be aware of any issues internally. The author gives an example of a company being forced to close a plant and lay off employees. Had the corporation discovered faulty operating procedures they would have been better aligned to create a product that would...
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...Global Business and Ethics MGT/216 July 7, 2011 Global Business and Ethics I. The United States has the luxury of an administration that protects citizens from dangerous foods, medicines and toxins that may enter Americans food supply. II. The Food and Drug Administration was established to, “protect the physical health of American consumers, but also to help safeguard their peace of mind about the quality of products that are vital for human well-being and survival (Crawford, 2004)”. A. Peace of mind for food grown in the United States. B. Regulations on Drugs produced in the United States. C. Food and Drugs that are imported to the United States not regulated. III. “The FDA has opened two offices in India, part of an overseas expansion aimed to keeping unsafe drugs out of the United States (Walker, 2009).” D. FDA offices are going to dealing with India’s government in making sure that sub-standard food and drugs do not enter the United States. E. Employees at the FDA offices are going to have to deal with bribery and blackmail by shady businesses in order to get their products sold in the United States. IV. The United States does not look kindly on bribery and blackmail as normal business practices, unlike other countries. F. Blackmail and bribery are normal business practices in other countries and are not hesitant to use these practices. G. Employees of the FDA need to be aware of these practices...
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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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...Global Business Opportunities in Croatia The first objective is to assess Croatia’s environment by examining the economic, geographic, political and cultural factors. The factors listed above are used to define the “environment” which I interpret as being instrumental in defining the opportunities available. Lets start with basic information. Croatia is a nation in south-eastern Europe with a population of 4.5 million people and a land mass of around 56,000 square kilometres, almost 13,000 square kilometres larger than Denmark or the size of the US state Wyoming. When it comes to its structure, Croatia has many weaknesses, for example, large regional economic disparities, doesnt have a clear national competitive advantage, and also has structural weaknesses due to having a recent war. Therefore, its economical situation is pretty weak. However, this country has a healthy urban environment that provides many benefits for entrepreneurship, especially a growth-oriented, innovative, high technology form of entrepreneurship. The presence of universities and research centers fuels evolving technologies and promotes innovation as well as providing an economy with an educated workforce. There is also a high population density which brings a diversity of demand in a relatively small geographic area which reduces communication and transportation costs. There is also a mixture of trade and diversity that attracts other businesses including „out of country“ businesses. When it comes...
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...Johnson whose domestic market is in USA now generate more revenue globally than its domestic revenue. The increase in its global business revenue has lead the company building factories strategically in different part of the world so that it will be able to streamline its logistic reaching target market. This can be said to many companies increasing their global business by building plants in other countries away from their local market especially in an undeveloped countries that are poor and corruption are high. All these factories that are been built around the world have led to mangers communicating with one another which can cause cultural conflict. The reason for the conflict is examines in an article called the cultural roots of ethical conflicts in global business. I grew up in Nigeria where the author wrote is far more corrupt than Finland. “Many of the people inhabiting poorer countries are more concerned with survival than success, the argument goes, and higher ethical standards are often considered a luxury people cannot afford" (Sanchez-Runde, Nardon and Steers 2013). For example, in Nigeria it is highly unlikely to import a product into the country without paying some kind of bribe to officials at the port authority who are paid low wages, and have to supplement their income with bribery for survival. A manger in Nigeria who works for a global industry will factor the cost of the bribery, and add the cost to the clearing of the product from the port authority despite...
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...Global Business and Ethics University of Phoenix Organizational Ethics and Social Responsibility MGT216 October 2nd 2010 Global Business and Ethics Business practices vary from one country to another based on the culture of origin. Understanding a country’s culture, society, and hierarchy allows business practices to run more smoothly while preventing unethical circumstances. Training allows expatriate managers to communicate in foreign languages whereas not implementing selective perception or assume that the culture is similar to their own. There are many risks associated with ethics in globalization but what role do ethics play in global business? Conducting business overseas can cause many ethical issues. Some of the possible ethical issues faced while conducting business overseas are corruption, human rights, different work environments, local customs, and cultures. By providing structure, training, and guidance to expatriates aids in preventing these ethical issues. This directional approach allows the expatriates a better understanding of the cultural norms. In addition to a better understanding of the overseas cultures, training allows the managers to have self confidence, adjust to the environment with ease, an increase in performance and relationships with foreign clientele (Trevino & Nelson, 2006). Managers will need to understand the foreign language in which the business task is assigned. According to Trevino and Nelson...
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...Global Business and Ethics Raquel Padilla MGT 216 March 8, 2010 Professor Scott Bridges Global Business and Ethics “As borders disappear, people and goods are increasingly free to move, creating new challenges to global health” (Pang & Guindon, 2004). “Global interdependence is a compelling dimension of the global business environment, creating demands on international managers to take a positive stance on issues of ethical behavior, social responsibility, economic development in host countries, and environmental protection around the world” (National Multimedia, n.d). Even though many laws and regulations exist today, several large multinational companies still are having unethical behaviors and questionable practices. The purpose of this paper is to (a) describe ethical issues that became evident as a result of globalization; (b) compare ethical perceptions across cultures in regards to the situation; and (c) determine which risk and consequences were associated with the dilemma. The company selected to discuss the above topics is Nestlé. Nestlé’s Ethical Issues Unethical Marketing Practices infant’s formula. In 1977, Nestle became part of a huge ethical scandal; the company was being criticized for using unethical marketing practices putting at risk consumer’s health in order to promote its infant formula in another nation. “Many aid agencies called for the boycott of Nestle products which continued into 80’s, when Nestle decided to adopt...
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...the Highway Zachary I. Knutson Business Practices in the Global Market - #2125 Prof. Creed Final Paper 04/29/2015 As shared in the Introduction section of the textbook “Kiss, Bow, or Shake Hands” by Terri Morrison and Wayne Conaway, one of the most important lessons to learn in doing business internationally is that “communication always takes place between individuals, not cultures.” (Morrison pg. ix) We live in an age today where information and knowledge that is almost instantaneous is gradually blending the lines between countries doing business and the individual cultures that those businesses cater to. Today, more foreigners are entering U.S. schools for education and that will only continue to blur the lines between understanding specific business dealings – and understanding how those business dealings will work in a foreign country. If the playing field of business is becoming more and more aligned – where do the missteps happen in regards to doing international business? And if the communication goes successfully between the individuals creating the deal – shouldn’t that be the ‘green light’ for success? My argument is No. Because once the communication is successful in establishing the opportunity to do business internationally – it will then not be in the correct handshakes or presentation of business cards that success will be found – now it’s time to communicate with the culture. Here is where international business could go wrong, with an overall...
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...like to run my own business , I want to be in charge, set my own hours and days that I want to work. Not to mention the fact that I think I will make more money and be on the road to financial freedom. I have five children to support with no help so that also is a reason for me to at least try to open a business for our future , if I’m successful I can turn it into a family business. Also I think this would be good for my children. I would like to open a housekeeping and janitorial business. I think I will open my own business, it’s just a matter of time and funding. I have a plan to apply for a business loan, as soon as I get my credit score a little higher to make sure I get the loan approved for maximum funding. Once funding is approved I would start off by creating an online website, making business cards and flyers. My website would give information about my business and clients would be able to book appointments online as well. I will be advertising my business not only online, flyers, business cards but also by word of mouth. I would start off home based until clientele picks up and once I’m ready for expanding I will rent an office. That will happen once I hire some employees. I would start off with one van, purchase all my equipment and supplies. I would need at least two vacuum cleaners, mops, brooms, dusters, buckets, towels, dust pans, a van and all my cleaning supplies. My overhead is not that expensive, once I build clientele I think my business will be very successful...
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...world countries. In 1996, Nike has been charged by critics with engaging in a variety of unethical employment practices in countries that exercise little or no control over the conditions of labor or whose governments are corrupt and can be bought off (De George, 2006, chap. 20). In dealing with business issues, a company needs to be aware (what are the issues), articulate (justify and express decisions), and application (reach a decision, train and explain ethics to employees). Ethical behavior has to start at the top of a company and work its way down. Here we will compare ethical perceptions across cultures about the ethical situation, discuss the ethical issues that became evident due to globalization, and discuss the risks and consequences associated with the Nike ethical dilemma. Compare Ethical Perceptions Across Cultures About the Ethical Situation Trevino and Nelson (2007) defines business best stating the “definition of ethics—the principles, norms, and standards of conduct governing an individual or group—focuses on conduct.” (p. 13). Business ethics vary in different parts of the world. Several countries that Nike has manufacturing plants in that have different business ethics than the United States are Cambodia, China, Bangladesh, India, Pakistan, and Vietnam. Nike is an industrial leader who has refused to act on the ethics issues of human rights in all of their organizations in foreign counties by underpaying their employees, forcing employees to work...
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...Procter & Gamble: Global Business Strategy 1) What are the signs and signals that it is time to make a change in an organization? In today’s world, companies are constantly changing with the hope of gaining a competitive advantage. They must adapt to new technologies, different and improved processes, e-commerce, and new procedures in order to survive and flourish. Managing major and minor organizational changes have always been quite a problematic task for managers but deciding the best time to make these changes is often the most difficult. One of the first signs that a change is necessary is when the company’s industry is rapidly growing. It is essential for companies to adapt to these changes in order to stay in the market competitive. Having unhappy customers is also a sign that a change is needed. Customers often create new demand for newly launched types of products and services and it is the company’s responsibility to provide opportunities to meet these needs. Moreover, a strong economy generates an increase in demand for products and services which means that the company must consider expanding and this change might involve increasing staff and adding new facilities. On the contrary, a weak economy can create financial struggles and sometimes a company finds itself needing to cut expenses, increase low-cost marketing or steering the business in a different direction. Oftentimes, a company chooses to change their processes internally in order to maximize their...
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