Premium Essay

The Global Environment of Business: New Paradigms for International Management

In: Business and Management

Submitted By trevwayn
Words 5311
Pages 22
Forces outside the firm’s traditional boundaries are increasingly important in determining the firm’s success. These forces in “the environment of business” differ among nations and over time, continually confronting the firm with new issues that require modifications in strategies and management practices. Managing in the context of turbulence has become an ongoing reality. Readers will learn how to modify their strategies and management practices and adapt to this new reality.
The subject of ethical codes and CSR crystallizes many social challenges. At the one extreme are those who, like Milton Friedman (1970/2001), advocate the guiding principle of shareholder value maximization as the sole determinant of managerial decisions. At the other extreme are those who expound an altruistic philanthropy based on philosophical beliefs concerning universal ethics, such as those related to human rights. Within this range of perspectives, many authors offer distinct typologies for analyzing social forces and for developing appropriate firm responses to each set of social forces. Meanwhile, the rise of activist groups who threaten public criticism and boycotts means that even Friedman’s dictum of maximizing shareholder value now requires a wide range of CSR strategies.
Some analysts, such as Porter and Kramer (2006), believe that each firm should create a competitive advantage through appropriate CSR strategies. From this perspective, CSR morphs into political strategies through which a firm’s reactions can be designed in order to achieve desirable government decisions. For multinational enterprises (MNEs), it is clear that CSR has become a subject of major importance, but the complexity of dealing with social forces that differ among nations has created uncertainties about the optimal strategies. The pursuit of least-cost alternatives in each country...

Similar Documents

Premium Essay

Global Trends Affecting Businesss

...their productivity and organizational environment in order to sustain the business or company. Retention, however, has become a major obstruction facing the leadership. What exactly is causing this sudden changes are a number of issues contributing to this movement, namely the global trends.According to Macmillan( 2011) he says Global trends are changes that takes place world over that affect businesses and are beyond the control of managers. The existence of macroeconomics factors in the economy has caused inequality in the way the businesses are run. Macroeconomics factors are factors that have logical relevance to an economy at regional or national level and affects a large population rather than a few individuals. Macroeconomic factors such as economic output, unemployment, inflation, savings and investment are key indicators of economic performance and are closely monitored by governments, businesses and managers. These factors can be best summarized with PESTLES Analysis that is technological, political, social, economical, environmental and legal policies governing each country. Conklin (2011) says Forces outside the firm’s traditional boundaries are of great importance in determining the firm’s success as these forces of the environment of business are different world over and over time.He also states that these factors will continuosly confron the firms with new issues that require modifications in strategies and management practices. PESTLES Analysis......

Words: 1790 - Pages: 8

Free Essay

Critically Appraise the Role of Crowd Sourcing in Today’s Rapidly Changing Global Business Environments and Its Contribution to Innovation.”

...syed2 syed2 Creative Action in Organisations ENTE 3506 Word Count: 1524 Tutor: Andrew Nicholson Creative Action in Organisations ENTE 3506 Word Count: 1524 Tutor: Andrew Nicholson “Critically appraise the role of crowd sourcing in today’s rapidly changing global business environments and its contribution to innovation.” Assigment 3 “Critically appraise the role of crowd sourcing in today’s rapidly changing global business environments and its contribution to innovation.” Assigment 3 “Critically appraise the role of crowd sourcing in today’s rapidly changing global business environments and its contribution to innovation.” Crowdsourcing is finally coming of age especially with a prominent rise in recent years, it is recognised crowdsourcing is an online phenomena which aims to distribute problem solving and production to impact on the present day’s rapidly changing global business environment. This essay provides an introduction to crowdsourcing, analysed through a theoretical basis in reference to examples, moreover paying particular attention to distinguish and define crowdsourcing from open source production. Furthermore this essay also critically explores the prospects for the paradigm. The potential to exploit and impact a crowd of innovators will be assessed likewise to an evaluation of the opportunity for the use outside ‘for-profit’ organisations. To conclude, this essay recommends an outline and plan for research into the role of crowdsourcing......

Words: 2021 - Pages: 9

Premium Essay

Vw Fdi China

...Foreign Direct Investments: Volkswagen’s Entry Strategy in China’s Car Market 21/1/2013 Content Page Table of Contents Abstract 1 Introduction 1 Literature review 2 Volkswagen rational for China – Dunning’s Eclectic Paradigm. 4 Conclusion 6 References 7 Abstract China is one of the most attractive destinations for Foreign Direct Investments in the world. It is first destination for Inward FDI among developing countries (WTO, 2012). China has developed second world’s largest car market after U.S.A. and has been the largest car producer in the world since 2008. German company Volkswagen (hereafter VW) is the world’s second largest motor vehicle manufacturer after Toyota Motor (CNN, 2012) and the biggest manufacturer in Europe. VW is one of the earliest investors and the biggest foreign car maker in China with 15% of market shares. This report, by applying relevant theories, such as Dunning’s eclectic paradigm or Hymer’s internationalization theory, will explain why VW Company decided to invest in China through joint venture rather than acquisition or Greenfield investment. Introduction Chinese car industry, as well as many other branches, is very young, although dynamic and fast growing. In 1978 Chinese government introduced policy of open doors which allowed foreign companies to invest and operate in China. Since then car sector has developed rapidly from an infant to a mature industry. Moreover, Chinese government provides various...

Words: 2781 - Pages: 12

Premium Essay

: Role of Cost and Management Accountants in Ifrs Regime

...TITLE: ROLE OF COST AND MANAGEMENT ACCOUNTANTS IN IFRS REGIME Personal Details |NAME |CMA. ARINDAM BANERJEE | |QUALIFICATION |MCOM AICWA | |RANK |Faculty Member, United Institute of Management, Allahabad | |Email | | |Mobile |09794108735 | | | | |Communication Address |C/O Mr. Salil Chakroborty, | | |198 A, Sarat Bose Road, | | |Kolkata – 700029. | | | | ROLE OF COST AND MANAGEMENT ACCOUNTANTS IN IFRS......

Words: 2489 - Pages: 10

Premium Essay

Report of Samsung

...CONTENT 1.Introduction 2 2. IB theories (IDP, ILO) and their invalidation for IB firms from NICs 2 2.1 IDP paradigm: 2 2.2 OLI theory 3 3. Globalization and IDP paradigm 4 4. Samsung’s role in the outpacing of IDP position of Korea 6 4.1 Development of technology capability 7 4.2 Crisis management creation and human resources management 7 4.3 R&D support and technology capabilities 8 4.4 Financial resources transferred within the group 8 5. Conclusions 9 References 11 1. Introduction Since the early 1980s, the world economy has experienced rapid ‘globalization’. Globalization has changed the pattern of trade, foreign direct investment (FDI) in world economic activity. One remarkable change lies in the once widely used investment development path (IDP) paradigm. In many newly industrialized countries, MNEs have accelerated their internationalization, leading to an increase of outward FDI from those countries on a scale earlier than the IDP would suggest. This report introduces some IB theories such as OLI and IDP, and explains why these theories are more useful for describing the internationalization process of large established IB firms but less so for IB firms from newly industrialized countries. Also, the role of globalization in changing the predictions of IDP paradigm as well as how Samsung took a major role in enabling Korea to outpace its IDP position have been illustrated in this report. 2. IB theories (IDP, ILO) and their......

Words: 2699 - Pages: 11

Premium Essay

Uppsala Samsung

...Electronics Corp. (SEC) case. The purpose of this study was to upgrade the Uppsala model by using a representative case of SEC. This thesis found that there are two dimensions derived from the Uppsala model. The first dimension is the sequential nature of the internationalization process in terms of psychic distance (from the market with close psychic distance to the market with remote psychic distance). The second dimension is a “market commitment” dimension, which means the form of market operation established from low-level commitment to high-level commitment. Two hypotheses derived from the two dimensions of the Uppsala model will be applied in SEC case. The first hypothesis is that the shorter the psychic distance between SEC’s home environment and target markets, the earlier will SEC establish foreign activities in those markets and vice versa. This hypothesis will be tested on a the macro-level with regards to the geographical distribution of Korean1 outward FDI and will be tested again during the internationalization process of SEC in two target markets-China and the US, to estimate how psychic distance functioned in SEC internationalization process. The second hypothesis will be tested by SEC’s actual operations in Europe. The conclusion will summarize the whole study, discuss research questions and provide some suggestions for future studies on the internationalization process of firms. Key Words: the Uppsala model, Samsung, Internationalization, Psychic...

Words: 11371 - Pages: 46

Free Essay


...SEMINAR IN INTERNATIONAL BUSINESS ( DRS 3283 ) Name : Norsyafinaz Binti Shah Rizal Thomas ID No : 012011110183 Lecturer name : Sir Anuar Sulaiman A research paradigm for international business communication On this journal that can sumarize with this conceptual paper aims to present a research paradigm for international business communication research, with special reference to the problems of Japanese corporations and to develop a paradigm, the obstacles Japanese corporations face in international business as methods used to deal with obstacles and foster bettel global mangement and interculture comunication. International business prescribes the “arena” for international business communication and is shaped by international business transactions and international management. The reason for this is found in the special characteristics of international business transactions. The beginnings of international business transactions were nothing other than trading between cultures and peoples with different commercial practices. On the second point arena of international business communication and illustrates the following situations although we are speaking of international business communication or Intercultural business communication, it does not necessarily mean that this Communication occurs between countries, cultures, or businesses. the agents of international business......

Words: 2566 - Pages: 11

Free Essay

Changes of Un Conference in 2012

...Paper* prepared for consideration by the High Level Panel on Global Sustainability at its first meeting, 19 September 2010 September 2010 United Nations Headquarters, New York _________________________ *Prepared by John Drexhage and Deborah Murphy, International Institute for Sustainable Development (IISD) GSP1-6 Executive Summary The term, sustainable development, was popularized in Our Common Future, a report published by the World Commission on Environment and Development in 1987. Also known as the Brundtland report, Our Common Future included the “classic” definition of sustainable development: “development which meets the needs of the present without compromising the ability of future generations to meet their own needs.” Acceptance of the report by the United Nations General Assembly gave the term political salience; and in 1992 leaders set out the principles of sustainable development at the United Nations Conference on Environment and Development in Rio de Janeiro, Brazil. It is generally accepted that sustainable development calls for a convergence between the three pillars of economic development, social equity, and environmental protection. Sustainable development is a visionary development paradigm; and over the past 20 years governments, businesses, and civil society have accepted sustainable development as a guiding principle, made progress on sustainable development metrics, and improved business and NGO participation in the sustainable......

Words: 11460 - Pages: 46

Premium Essay

New Design

...Interdisciplinary Design Programme and Industrial Management Engineering Indian Institute of Technology, Kanpur 208016, India Email: Phone: 91-512-2597858, 91-512-2597376 (O) Mobile: +91-9648117755 Jayanta Chatterjee “To learn, research, teach and consult in my competence areas, to evolve as a person and share my ken to make a difference through creative Innovation” Core Competence • • Research Interest • • Innovation in socio-technical systems Cause Related Marketing. Media & Communication. Global Sales & Marketing Product and Brand Management. New Business Development. • • Dr. Jayanta Chatterjee has 42 years of teaching/research and professional experience in management at different industries and in different countries. Strategic Design of ProductService Systems • • Digital ecosystem & autopoeisis Jayanta started his career in 1972 at Siemens in Sales and Project Engineering and developed expertise in new product management. He then pioneered the introduction of advanced electronic control systems to Indian Industries at Allen-Bradley Ltd, where he rose to the position of CEO in 1990. But true to his passion he was also teaching as a visiting faculty at IIT Kanpur and at IIT Delhi during this period. Later, he co-funded Strategy Innovation Inc and became the Chief Knowledge Officer of vtPlex. In 2001 he divested out of that enterprise and joined the academia full time at Industrial & Management Engineering......

Words: 2148 - Pages: 9

Premium Essay

The Global Integration of Diversity Management: a Longitudinal Case Study

...Int. J. of Human Resource Management 18:11 November 2007 1895– 1916 The global integration of diversity management: a longitudinal case study Aulikki Sippola and Adam Smale Abstract Whilst the extant diversity management literature has provided a comprehensive array of theoretical frameworks and empirical studies on how organizations can and have approached the management of a diverse workforce, the same cannot be said about the literature on diversity in an international setting. Indeed, from a diversity management perspective we know surprisingly little about how multinational firms are responding to the increasing globalization of their workforce. This study seeks to contribute to this underresearched area through an in-depth longitudinal case study of TRANSCO, a well-known European MNC, which has been attempting to integrate diversity management globally throughout its worldwide operations. Adopting a Finnish host-country perspective, the study investigates what TRANSCO has been integrating, how it has tried to facilitate this and the challenges that have arisen throughout the process. The results indicate that TRANSCO has committed a considerable amount of resources to the global diversity management integration process, reflected in the myriad of integration mechanisms utilized. In terms of their integration strategy, it was evident that TRANSCO was able to achieve global consistency at the level of diversity philosophy, but was forced to rely on a more......

Words: 11681 - Pages: 47

Premium Essay

Motives for Internationalisation and Factors That Companies Must Consider Before Expanding Abroad- a Literature Review

...ABSTRACT In recent years, many companies have increased their presence in the international market. This paper studies the companies need for internationalisation as it focuses on the factors companies must consider before entering new markets or expanding abroad. Many factors that lead companies to invest in the international market have been identified. The research is based on theories. Internationalization factors that motivate companies to establish themselves abroad will be included in the theories. The identified categories include of resource, market, strategic resources, efficiency and seeking motives. Network seeking motives has been identified as an additional motive. The research was conducted based on the qualitative approach. Existing information of related to the motives for internationalisation and the factors to consider before internationalisation were used. The secondary material includes peer-reviewed journals, international business books and research papers. A case study of Chrysodalia Ltd was used to explain the PESTEL and SWOT analysis. Based on the case, it is concluded that companies internationalised in order to increase their competitive advantage. Companies rely on factors, which include Resource seeking, Market seeking, Efficiency seeking, Strategic asset seeking to create competitive advantage in an already saturate market. The factors that the company should consider before internationalising are proactive motivations such as home factors,...

Words: 11289 - Pages: 46

Free Essay


...Globalization and the Information Economy: Challenges and Opportunities for Africa1 Derrick L. Cogburn, Ph.D. University of Michigan School of Information and Global Information Infrastructure Commission – Africa Catherine Nyaki Adeya, Ph.D. United Nations University Institute for New Technologies Prepared as a working paper for the African Development Forum '99 24-28 October 1999, United Nations Conference Centre United Nations Economic Commission for Africa Addis Ababa, Ethiopia 1 Copyright © 1999 Derrick L. Cogburn ( and Catherine Nyaki Adeya ( This paper reflects the opinions of the authors and not necessarily those of the institutions represented. Comments on the paper are welcome, and an updated version can be found at: and www.intech.unu Derrick L. Cogburn and Catherine Nyaki Adeya ii ACKNOWLEDGEMENTS The authors would like to thank the officers and staff at the United Nations Economic Commission for Africa for their untiring patience and assistance on the st preparation of this paper. Special thanks to the team organising the 1 African Development Forum. Dr. Cogburn would like to thank his colleagues at the Global Information Infrastructure Commission for their assistance and support on the paper. Also, at the University of Michigan, he thanks his friends and colleagues at the School of Information, the Alliance for Community Technology, and the Centre for......

Words: 24263 - Pages: 98

Premium Essay


...PARADIGM INTERNATIONAL OF THEECLECTIC PRODUCTION: A RESTATEMENT SOMEPOSSIBLE AND EXTENSIONS JohnH. Dunning* Universityof Reading and Rutgers University Abstract.Thisarticlereviewssome of the criticisms directed towards of the eclecticparadigm international over production the pastdecade, and restatesits maintenets.The secondpartof the articleconsiders a numberof possibleextensionsof the paradigm concludesby and that it remains robustgeneralframework explaining "a for asserting not of andanalysing onlythe economic rationale economic production and to but manyorganisational impact issuesin relation MNEactivity as well." INTRODUCTION The concept of the eclectic paradigmof international production'was first put forwardby the presentauthorin 1976 at a presentation a Nobel Symposium to in Stockholmon TheInternational Allocationof EconomicActivity.2 intention The was to offera holisticframework which it was possibleto identifyand evaluate by of the significance the factorsinfluencing both the initialact of foreignproduction and by enterprises the growthof such production. choice of the word eclectic The was an ambitiousyet deliberate one. It was meant to convey the idea that a full of of activities enterprises explanation the transnational needsto drawupon several strandsof economic theory;and that foreigndirect investmentis just one of a numberof possiblechannelsof international economicinvolvement, each of which is......

Words: 13872 - Pages: 56

Free Essay

Organization Analysis

...Organization] | | Contents Introduction: 2 What is Organizational Behavior? 3 Paradigms 3 Functionalist paradigm 4 Interpretive paradigm 4 Radical humanist paradigm 4 Methodology of data gathering 5 Background information about the organization: 5 Analyzing data with literature review 6 Definition of Culture and Culture in McDonald 6 McDonald's development in China 7 Relating Schein’s model with McDonald 8 Levels of culture: 8 Artefacts: 8 Values: 9 Basic assumptions: 10 Conclusion: 10 References: 12 Introduction: An organization or company can be defined as the developed social elements by the humans in order to serve some kind of purpose. Generally the organization is consisting of an individual or a group of people purposely systemized or organized to achieve a common and an overall goal or set of goals. Usually organizations range in size from one person to thousands. Almost every organization has a structure of management  that regulates relationships between the members and different activities and authority , responsibilities and assigning role to carry out different tasks within and outside of organization. An Organization is social arrangements for achieving controlled performance in pursuit of collective goals (According to Buchanan & Huczynski (1997). There are many vital aspects to keep in consideration about the goal of the business organization. These features are categorical (recognized and cautious) or......

Words: 3201 - Pages: 13

Premium Essay


...MSc Business Management BS7916 Principles of Responsible Management Semester One 2013- Module Handbook Module Leader : Dr Roz Sunley Room 201 Room 201 West Downs 01962 827339 In this module study guide you will find much of what you need in order to successfully complete the module. Further learning materials and information are available on the learning network under the module code BS7916. Module Code BS7916 Module Name: Principles of Responsible Management It is your responsibility to: * Collect a copy of the reading pack from the faculty office * Attend both lecture and seminar sessions as stated on your timetable * Arrive in time for the start of all taught sessions * Read the preparatory reading before the taught sessions each week * Undertake any directed learning that may be set * Seek help from the module tutor if you are having any problems with any aspect of the module * Hand in assignments on time Tutor contact details: Module leader: Dr Roz Sunley Module tutor: Dr Natalia Yakovleva Module administrator: Karen Robbertze Contents Introduction and learning outcomes 3 Weekly schedule 4-6 Assessment 7-9 Useful texts 9-11 Feedback, Harvard referencing etc 12 Study guide for each week 12 - 17 Marking criteria 18 –......

Words: 4620 - Pages: 19