...Running he WHIRL ead: LPOOL’s GL LOBAL STR RATEGY CA ANAL ASE LYSIS 1 Whirlpool Co W orporation’s Global Str s rategy Case Analysis International Man nagement – Assignmen 2 nt Candidate: Emad Abou uElgheit ISM - International School of Manageme f ent Doctor of Philosophy ( P (Ph.D.) Presented to: Professor Peter Horn t P 26 July 201119 July 2011 1 Word Coun 3,706 nt: WHIRLPOOL’s GLOBAL STRATEGY CASE ANALYSIS 2 Abstract The paper analyses Whirlpool Corporation’s Global Strategy case study conducted in the year 2001. The paper aims to spot key reasons behind the declining performance the company experienced in the late 1990s a few years after the start of its globalization plan in the year 1987. The plan initiated under the new leadership of David Whitwam encountered many problems in its early stages illustrated in a declining profitability in its home market, losses in the European market and failure in some of its joint ventures in the Asian market.1 With such poor performance and failure in achieving competitive edges in global markets, Whirlpool was at a great risk of losing huge investments made in foreign markets, and losing highly-potential market shares in emerging international markets to aggressive competitors. The paper illustrates core strategic mistakes around three main strategies; sourcing and operations, entry, and marketing strategies adopted. The goal is to address lessons learned from Whirlpool’s experience in globalization in order to shed...
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...other to the integrated and independent system (Hill, C. W., Krishna, U., & Wee, C. H., 2014, p4). It is wildly acknowledged that Globalisation process has increased chance that foreign firms enter into a country to pursue the extension of their business. Within these emerging countries, no doubt that China is one of the perfect choices. As the second largest land area country with the most population, marketing in China is huge, especially when the economy innovation in 1978 and the country’s admission into the World Trade Organization (WTO) in 2011. (Walters, P. G., & Samiee, S., 2003). They are two milestones that changed the layout of business in China. It means trade barriers have been reduced and markets are more open to international firms. However, given the membership of WTO and cross-border investment also brings some challenge and risks. For example, lack of understanding about the host country’s culture, political system or business practices often lead to frustration and dismal business performance. (Hong, J. F., 2004) So, this report will analyse the business environment in China from four different aspects. Distinctively, they are political, economic, regulatory and cultural environment. Some data and figures will be cited to help analyse. And at last, a brief conclusion and review will provide. 2. Political environment China, officially the People’s Republic of China, has established on first of October, 1949 when Chairperson Mao proclaimed...
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...1. Сутність, сучасний стан та перспективи розвитку митно-тарифних відносинУ визначенні стратегії і тактики інтегрування економіки країни до світового економічного простору домінують два погляди. Перший погляд ґрунтується на тезі швидкої (шокової) лібералізації зовнішньоекономічних зв'язків (неолібералізм). Другий погляд (градуалізм) ґрунтується на поступовому переході до "відкритості" економіки, що передбачає поетапний процес, який має свою структурну специфіку і потребує активної ролі держави в даній сфері взаємовідносин.Неолібералізм передбачає згортання господарської діяльності держави, форсування інтернаціоналізації економіки, гомогенізацію світогосподарських механізмів регулювання шляхом надання стихійному ринку повної свободи і забезпечення умов вільної конкуренції.Підґрунтям концепції "шокової терапії" є ідеї монетаристів, що ринок це найбільш ефективна форма організації економічної системи, яка здатна до самоорганізації. Тому трансформація перехідного періоду має відбуватися за мінімальної участі держави.Найбільш оптимальною моделлю взаємовідносин України зі світовим економічним простором є політика помірного протекціонізму: рух у напрямі політики "вільної торгівлі" з точковим використанням інструментарію протекціонізму, зокрема митно-тарифних регуляторів.Об'єктом митно-тарифних відносин є всі види зовнішньоекономічної діяльності, під час здійснення яких відбувається процес переміщення через митний кордон: експорт (імпорт) товарів, капіталу, робочої сили, послуг; науково-технічна...
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...recommendations contained in the report without seeking specific advice from the firm's professional advisers. While due care has been taken in the preparation of this document, Murdoch University together with its academic supervisors and students accepts no responsibility for errors or omissions, nor do they guarantee its accuracy. OFFICE USE ONLY Submission date OFFICE USE ONLY Submission date ASSIGNMENT COVER SHEET (INDIVIDUAL OR GROUP) Please complete and attach this form to your assignment. All assignments must be submitted to lecturer on the stipulated submission date. Name | LIANG TIANSHU JOEL, GOH WEI SIONG, LEE WEI TECK BRANDON, CHENSON ANG, LIM MING YAO | | Unit Code | BUS323 | Unit Name | INTERNATIONAL MANAGEMENT | Class Code | PT-BUS323D | Local Lecturer’s name | DR. JUERGEN RUDOLPH | Assignment No. (i.e. 1,2,3) or ‘short answer’ | MAJOR PROJECT | Your assignment should meet the following requirements. Please confirm this by ticking the boxes before submitting your assignment √ My assignment is double-spaced and clearly legible √ My assignment is written on one side of page only √ I have provided a wide margin (4 cm) on left-hand side of page √ The first page of my assignment is clearly labelled with my name, unit no, unit name and tutor’s name. √ I have retained a copy of my assignment √ I have completed and signed the declaration below All forms of plagiarism, cheating and unauthorised...
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...forces revolve around the interaction of industry drivers of globalisation and the different ways a business can be global. Understanding this interaction is key to formulating the right global strategy. Internal organisational factors play a major role in determining how well a company can implement global strategy. This paper provides a systematic approach to developing and implementing a global strategy. MOST MANAGERS have to face the increasing globalisation of markets and competition. That fact requires each company to decide whether it must become a worldwide competitor to survive. This is not an easy decision. Take the division of a multibillion-dollar company, a company that's very sophisticated and has been conducting international business for more than fifty years. The division sells a commodity product, for which it is trying to charge 400% more in Europe than it does in the United States. The price was roughly the same in the United States and in Europe when the dollar was at its all-time high. The company built a European plant which showed greater return on investment with that European price. But the dollar has fallen and, if the company drops its European price to remain roughly the same as the US price, the return on the plant becomes negative, and some careers are in serious jeopardy. So it is attempting to maintain a 40% European price premium by introducing minor upgrades to the European product. But its multinational customers will have none of it...
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...The economic and social consequences of trade agreements have become a major area of research in recent years. Much of this has to do with regional economic integration, where countries in a geographic region, reduce and remove tariff and non-tariff barriers to the free flow of goods, services and production between each other (Hill, 2005). On the 1 January, 1994, such a trade agreement came into affect between America, Mexico and Canada. This was known as the North American Free Trade Agreement (NAFTA). This removed all barriers to the trade of goods and services within the member countries, the protection of intellectual property rights, application of national environmental standards and the establishment of two commissions with power to impose fines and remove trade privileges when such standards are ignored involving the environment, health and safety, wages and child labour (Hill, 2005). There is a belief that agreements designed to promote free trade within regions will benefit trade for all the countries involved, and also the rest of the world (Abbott and Moran, 2002). While regional economic integration, or foreign direct investment, is seen as a good thing, some observers worry that it could lead to a world in which regional trade blocs compete against each other. We are seeing the formation of many trading blocs continuing today as the need for it has become essential for countries and their firms to compete in the global market place (Seid, 2002). Although...
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...world is flat" - global competition is characterized by network sod international linkages that bind countries, institutions and people in an interdependent global economy. Economic integration help the lowering of trade barriers and facilitates trade between countries increasing the flow of goods and services, capital, resources, labour and technology around the world. "the invisible hand" of global competition is being propelled by the increasingly borderless world. Globality and Emerging Markets Globalization has narrowed differences in regional output growth rates, economic activities have increased mainly in China, India and Russia. Trade had grown by 133% (worth $54 trillion) in the last 15 years and is still growing. The 2007 FDI confidence index has shown China leading with 2.21, India with 2.09, USA with 1.86…. Fareed Zakaria (American Journalist specialized in international business) states that even though USA is a traditional industry leading in nanotechnology and biotechnology, it is declining and the "other" countries are picking up opportunities as their economic markets are growing because they provide growth markets for developed countries. Globalization is no longer synonym to Americanization due to the investment opportunities in other emerging countries. Apple vs Samsung, Budweiser, Subaru etc… Globalization is measured by economic factors but also by economic integration (international trade and FDI), technological connectivity (# of internet users,...
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...domestic environment. If companies and corporations want to be successful in today’s economy, then it is important for managers to have a thorough knowledge and understanding of different types of cultures, business ethics, and ways of leadership, and the implications that these differences will have on their businesses. In this paper, we will discuss the effects that globalization has had on managers with respect to culture, business ethics, and leadership. Culture Globalization has caused cultural diversity to become a fact of organizational life. In order for businesses to succeed, cultural diversity has to be taken into consideration when formulating business plans and strategies. Managers have also had to develop cross-cultural management skills, which are necessary to be able to manage employees and interact with clients of different cultural backgrounds (Saee...
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...INTERNATIONAL BUSINESS MANAGEMEMENT ASSIGNMENT 2 Question 1 When the Mexico’s currency is pegged to the United States dollar, it means that the exchange rate is set and artificially maintained by the government. The rate will not fluctuate from day to day. The pegged exchange rate is usually used to stabilize the value of a currency against the currency it is pegged to which makes trade and investments between the two currency areas easier and more predictable. Pegged exchange rate system can also be used as a means to control inflation. The difference between a free/clean float, a managed float and fixed exchange rate systems of exchange rate is that: Clean/free float In the clean/free float also known as a pure exchange rate the value of a currency, which is the exchange rate is determined purely by market forces of supply and demand. Clean floats can only exist where there is no government interference, as would be the case in a purely capitalistic economy. Therefore, clean floats are a result of Laissez-Faire or free market economies. Managed float In a managed float also known as “dirty float” the government or the country's central bank occasionally intervenes to change the direction of the value of the country's currency. In most instances, the intervention aspect of a dirty float system is meant to act as a buffer against an external economic shock before its effects become truly disruptive to the domestic economy. Therefore, with a managed or dirty float the government...
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...1.0 Content No | Detail | Page | 1.0 | Content | 1 | 2.0 | Task 1 | 2 – 4 | 3.0 | Task 2 | 5 – 6 | 4.0 | Task 3 | 7 – 10 | 5.0 | Task 4 | 11 – 15 | 6.0 | Task 5 | 16 – 17 | 7.0 | Reference | 18 | 8.0 | Coursework | 19 – 25 | 2.0 Task 1 2.1 The various advantages and disadvantages Multinational firms is the firm that their businesses that conduct operations and sell to customers in multiple countries. Obviously, multinational corporations can provide developing countries with critical financial infrastructure for economic and social development. But, these may also bring with them relaxed codes of ethical conduct that serve to exploit the neediness of developing nations, rather than to provide the critical support necessary for countrywide economic and social development. When a multinational invests in a host country, the scale of the investment (given the size of the firms) is likely to be significant. Indeed governments will often offer incentives to firms in the form of grants, subsidies and tax breaks to attract investment into their countries. This foreign direct investment (FDI) will have advantages and disadvantages for the host country. There are some advantages while facing the multinational corporation. One of the primary advantages that multinational companies enjoy over companies that limit their operations to smaller geographical regions is that they have a larger pool of potential customers. According to the U.S. Small Business Administration...
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...International Business Management Section A: Part One: 1. What is the series consideration for strategy implementation? 2. The major activity in global marketing is: d. All of the above 3. 3. The third „P‟ in the international marketing mix is: d. Place 4. The European Economic Community was established in____________ d. 1957 5. Environment Protection Act on______________ a. 1986 6. People‟s attitude toward time depend on: 7. Culture necessitates adaption of : 8. The legal term for brand is: All of the above 9. FDI flows are often a reflection of rivalry among firms in____________ 10. ISO certification is: d. Both (a) & (b) Part Two: 1. What do understand by „Inward-oriented Policies An inward- oriented policy, usually , means over protection. What is less obvious is that sheltering domestic industries puts exports at a great disadvantage because it raises the cost of the foreign inputs used in their production. Moreover, an increase in the relative costs of domestic inputs may also occur through inflation or because of appreciation of the exchange rate as import restrictions are introduced. In practice, the distinction between inward-looking and outward looking approaches gets blurred. Most of the less developed countries have employed both strategies with different degrees of emphasis at one time or another 2. What is „Factor Endowments Theory‟? The factor endowments is a “modern” extension of the classical approach and attempts to explain the...
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...Difference Between Entrepreneurship & Small Business Management By Chris Joseph, eHow Contributor A small business enterprise requires skilled management to become successful. Depending on the nature of the enterprise, the entrepreneur and the manager may be the same person. In other cases, the entrepreneur may have little to do with the day-to-day operations of the business. The skills need to be a successful entrepreneur are not necessarily the same ones required to be a competent manager. 1. Leadership Skills * An entrepreneur is often a sole proprietor who does not employ others in her business, so she might not need to possess strong leadership skills. A small business manager is typically in charge of running a business operation, which may involve the need to manage a staff of employees. The entrepreneur who is also a manager faces the challenge of ensuring the profitability of her operation while effectively leading a group of workers. Focus * Entrepreneurship requires a business owner to look at the "big picture" pertaining to his business, which may include seeking new markets, establishing important contacts through networking and planning for future expansion. Small business management may be more focused on the day-to-day operations of the business such as dealing with customers, ordering supplies or overseeing production. In essence, entrepreneurship involves developing the plan while management involves the execution of the plan. * Sponsored...
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...Chapter 6 1. What is strategy? What is strategic planning? * Strategy = the basic means by which the firm competes * Strategic planning = The more complex than domestic strategic planning because of more complex variables a. List the reasons a company would have if it wants to operate internationally. Have a two reasons a company would have is it wants to operate internationally . Which is Reactive/Defensive & Proactive/Aggressive Reactive/Defensive * Globalization of competitors * Trade barriers * Regulations and restrictions * Customer demands Proactive/Aggressive * Economies of scale * Growth opportunities * Resource access and cost savings Incentives b. List the seven steps in the strategic management process. * Define/clarify mission and objectives * Assess environment for threats, opportunities * Assess internal strengths and weaknesses * Consider alternative strategies using competitive analysis * Choose strategy * Implement strategy through complementary structure , system and operational processes * Set up control and evaluation systems to ensure success, feedback to planning 2. What is environmental scanning? What areas are most commonly focused in environmental scanning? Environmental scanning is a process that systematically surveys and interprets relevant data to identify external opportunities and threats. An organization gathers information about the external world, its competitors...
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...Workshop 2 – Chapter 2 Managing Interdependence: Social Responsibility & Ethics In-class activity 1: Discussion questions Discuss the following in class: 1. In your opinion, should multinational firms be socially responsible in every country they operate in? Provide some examples of socially irresponsible activities by firms. 2. Discuss the common guidelines for code of morality and ethics in different countries. 3. Discuss the process for firms to combat corruption and minimise the risk of prosecution. 4. Discuss some common criticism of multinational subsidiary activities. In-class activity 2: Ongoing Semester Case Study – Businessville Hotel. The Beijing Businessville Hotel has been set up and the newly appointed Manager wants to furnish the hotel. His brother is a furniture dealer and tells the Manager he can get really good furniture from a friend in another country, and will give him a 40% discount on the order. The Manager is pleased and asks where the furniture is from and who is selling it. His brother says he cannot tell him that, but he knows it is good, new furniture. Review the legal and ethical issues and develop an argument that the hotel manager should or should not buy the furniture at a discount price from an unknown source. In-class activity 3: Case Study. Consider the case study ‘Nike’s CSR Challenge’ on pages 86-88 of your textbook and prepare discussion points for questions 1-5 at the end. In-class activity 4: In-class...
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...Portland State University School of Business Administration MGMT 446 – INTERNATIONAL MANAGEMENT Fall, 2011 Dr. Sully Taylor Office hours: 3-5 Tuesdays and by appointment. SBA 560C; email: sullyt@sba.pdx.edu Phone: 503 -725-3761 COURSE CATALOGUE DESCRIPTION AND PREREQUISITES: Study of the managerial functions and problems related to international business activity. The focus of this course is on the management of foreign trade, direct investments, and international operations. In addition, the political, economic, and cultural environments of international business are examined from the perspective of management. Comparative management is also treated through the study of other management systems. Prerequisite: BA 302. COURSE LEARNING OBJECTIVES: 1. To familiarize you with the major management issues organizations face when conducting business in the international arena. 2. To familiarize you with the major concepts concerning adapting management approaches to other institutional, economic and cultural environments. 3. To engage in research and learning that deepens your knowledge and understanding of other economies in the world and how to do business there. 4. To develop your ability to understand, analyze, and anticipate how international events may affect US based business organizations. REQUIRED TEXTS AND MATERIALS: International Management: Managing Across Borders and Cultures. 7th edition. Helen Deresky. Prentice Hall. Companion...
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