Free Essay

Commerce

In: Other Topics

Submitted By colin5122
Words 1193
Pages 5
Discuss briefly the regiocentric and geocentric staffing approaches for international operations? Explain the relative advantages of each and the conditions under which you would choose one approach over another.
Regiocentric Policy
• Based on the premise of geographic or regional perspective (e.g. Europe, Asia etc.)
Advantages
– Facilitates more focused sensitivity to regionally local areas
– Facilitates knowledge transfer between regional subsidiaries
– Regional cooperation between subsidiaries
Disadvantages
– Relatively high risk of ‘federalism’ and loss of control
– Lack of global perspective
– Lack of mobility of expats between HQ and regional subsidiaries
Geocentric Policy
• Based on the premise of global perspective
• Recruits come from anywhere in the world
• PCNs, HCNs and TCNs are found in all key positions
• Used at globalization stage
Advantages
– Global perspective helps to develop an international executive team
– Overcomes ‘federation’ drawback
– Wider pool of human resources through international labour-market
Disadvantages
– Host governments may pressurize MNC to hire more HCNs from respective nations
– Increased training and relocation costs
– Can cause efficient coordination problems

Discuss the common causes of expatriate failure.
Expatriate failure is usually defined as a posting that either ends prematurely or is considered ineffective by senior management. Most research into the matter has come to the conclusion that failure rates are high and can vary between 20% and 50% depending on the country. Emerging countries such as those of Southeast Asia are considered higher risk than so-called advanced nations.

The costs of failure have been estimated by numerous means with widely varying results. Despite the lack of clarity, it is clear that a failed assignment in an overseas location is considerably more expensive than one occurring closer to home.

Below are the chief factors resulting in an unsuccessful expatriate assignment.
Family Stress
Most expatriate managers are challenged and excited to be in their new postings. They need to spend a lot of time at work since they are under pressure to adapt to the new culture and their overall responsibilities are often larger than they have experienced before.

As a result, the wives of expatriates spend a lot of time by themselves – and yes, trailing spouses are still usually female – and are cut-off from their own family and friends. At the same time, the wife is usually dealing with problems for which she has no previous experience. She may catch a maid stealing or get stopped by a policeman who wants a payoff for a non-existent offence. She may have been told that internet connectivity is available but then finds it takes 6 months to install. All through this, she will probably discover that suitable employment for herself is next to impossible in an emerging country – seriously damaging her own long-term career.

It is no surprise that it is generally the trailing spouse who suffers the greater culture shock in the new country. The result can be an unhappy spouse who does her best to impair the performance of the expatriate manager.

Total marriage breakdown is not an uncommon result. Unofficial numbers from the Asian Development Bank (a large development organization modelled after the World Bank) are that upwards of 40% of their expatriate’s marriages fail due to the stress of offshore postings.

The consequence is that many expatriate postings are either terminated early or the performance of the expatriate managers are impaired.

Cultural Inflexibility

It is common for inexperienced expatriate managers to be taken completely by surprise at the deep cultural differences in their posted country.

Expatriates can find that, after a seemingly open conversation about improvements to be made, staff members don't show up for work for 2 days. In meetings, local staff think it is acceptable to spend hours talking on and on until every possible issue is agreed to by everyone. If expatriate managers are to be successful, they will need to learn how to adapt to concepts such as “saving face” (the cause of staff members not showing up for work) and “building consensus” that are important in Asia.

Expatriates also need to realize that transforming their staff into Americans or Japanese workers has been tried and it doesn’t work. All expatriates manoeuver a narrow path between accepting local conventions on one side and aspiring to international standards on the other.

Southeast Asia has a rich variety of cultures. The differences in religion are one example. Thailand is graciously Buddhist, Indonesia is gently (but intensely) Islamic and Philippines is completely Catholic. As for Singaporeans, some say their only religion is work. Managing such varied peoples obviously requires very different tactics.

Emotional Immaturity

In their home countries, most expatriates are middle-managers with relatively ordinary lives. Once relocated to Asia, they are suddenly thrust into the national spotlight as the Country Manager of a high profile multinational organization. They have more people reporting to them than ever and often have more control over them.

On the personal front, expatriates may have household servants for the first time, are called upon to meet senior government officials and are generally made to feel important. Further, some expatriates may be attracting enthusiastic attention of certain local females seeking their own type of fame and fortune by landing a high-status foreign boyfriend or husband.

The combination of greatly expanded responsibility and social status can be difficult to handle for people lacking the emotional maturity to keep themselves grounded. It is not uncommon for expatriates to either destroy their career opportunities and/or marriages by ignoring responsibilities and succumbing to self-destructive temptations.

Responsibility Overload

In almost all cases, the responsibilities of expatriates in emerging countries will be larger than they are used to overseeing. Given the nature of emerging countries in Southeast Asia, expatriates may supervise 5 to 10 times more people than ever before.

In other words, a German IT Manager who managed 15 people in his home country could have 100 in Malaysia. An American call center manager with 100 people in the US can find himself soon overseeing 800 in Philippines.

Such large increases in responsibility are difficult for anyone to handle. Added to that, are the new challenges of managing expectations of head office managers and clients in other countries and who may not understand the cultural differences that are impacting results.

Physical Breakdown

Expatriates are generally motivated to succeed and excited about gaining international experience. As a result, they often work long hours in the early part of their postings to do “whatever it takes” to be successful. They are also adapting to seemingly overwhelming cultural differences with local staff and greatly expanded responsibilities.

On the home front, the families of expatriates are almost certainly going through their own severe cultural adjustments and may be clamouring for the managers’ time and attention to help them through it.

The combination of emotional despondency and physical exhaustion from elevated stress levels and overwork is a common problem for new expatriates -- otherwise known as burn-out. Unless alleviated, the result can be dramatically reduced effectiveness or work-interrupting illness for managers

What are the common training techniques for managers going overseas?
Cultural awareness training
Area studies (environmental, historical etc.)
Language training
Sensitivity training
Field experiences
Host-family surrogate
On-The-Job training (OJT)…...

Similar Documents

Premium Essay

E-Commerce

...record and deliver information across distances and at rates expanding exponentially. This is also referred to as the information age. Digital technology has changed the economy. The new terminology being used is e-marketing where the primary source of value creation for consumers has shifted from physical goods to services and information. This does not mean that everything we previously knew about business becomes irrelevant and obsolete, but it does mean that significant changes in business environment justify new approaches to thinking of the best marketing strategy and management. In summary E-commerce can be defined as an exchange of goods and services between parties, individuals and organizations as well as the electronically based intra and inter organizational activities that facilitate such exchanges.(Dave.C.,2007,p,4) There are four categories of E-commerce:- a) Business to business b) Business to consumer c) Consumer to business d) Consumer to consumer Most business still carries out the traditional ways of conducting business. This is by having a physical address where they have their products and services and translations are made there. Due to the new dot com community and ways of doing business many businesses have taken up the opportunity of conducting business online. This is because of the benefits brought about by doing business using electronic medium, some of these benefits are:- 1) Increasing market share ...

Words: 3079 - Pages: 13

Free Essay

Commerce

...Commerce  - is the whole system of an economy that constitutes an environment for business. E-Commerce  * “E-commerce is the sharing of business information, maintaining business relationships and conducting business transactions by means of telecommunications networks: includes not only the buying and selling of goods , but also the various processes within individual organizations which support that goal.” ~Zwass Elements of E-Commerce Three main elements or disciplines in the application of e-commerce: 1. Business information 2. Business transaction 3. Telecommunication Business Information * Involves customer’s information, logistic, supplies, request, payment, products and other information which is suitable and accurate to help make a decision. Information is the asset and income of a firm or organization. Information is very important in the world of e-commerce. Business Transaction * All activities such as promotion, selling, purchasing, bargaining, delivery, customer service and etc is required to make a transaction complete. Some of the transaction in e-commerce is carried out digitally 100% but there is also transaction which uses both digital and physical method. This is because some products only can be described clearly physically. Telecommunication * Requires an electronic form of communication such as a telephone line, modem, mobile phone, a telecommunication network etc.Without this, an online transaction cannot be done......

Words: 6279 - Pages: 26

Premium Essay

Commerce

...International business & Finance Submitted to: Professor Abdul Khaliq Submitted by: Aamara Shabbir MC11-041 Shaista Munawwar MC11-036 Salma Muqaddas MC11-049 Mariya Bukhari MC11-037 Sara Qasim MC11-048 Ammarah Chaudhary MC11-035 Ameena Ghafoor MC11-010 Hailey College Of Commerce, University Of The Punjab, Lahore Lahore Transport Company VISION “A sustainable Lahore Transport Company through sustainable Public Transport” MISSION “Plan & facilitate a high quality, safe, efficient, environment friendly & affordable Urban Transport in Lahore City” Lahore Transport Company (LTC) has been established under the provisions of Provincial Motor Vehicles Ordinance (Amendment) Act 2009 as an Urban Transport Company. Government of Punjab notified the company vide. No. SO (NTS) 2-88/2009 dated 1st Dec., 2009. LTC has been registered under section 42 of Companies Ordinance 1984. LTC is primarily a regulation body which has been tasked to ensure a smooth running transport system in Lahore which will provide the commuters a safe, efficient and affordable transport service. LTC is expected to be a self sustaining organ of the Government of Punjab. As per the provisions of the said ordinance, LTC is now the sole organ responsible for custody of all transport infrastructures in Lahore and its operations through a network of private operators. This......

Words: 790 - Pages: 4

Premium Essay

Commerce

...Ltd (SAPICO). On March 31, 2008, a Consortium comprising of IFC, Bank Muscat, Nomura International and Sinthos Capital led by senior bankers Mr. Shaukat Tarin and Mr. Sadeq Sayeed acquired 86.55% stake in Silkbank for around $213 million or $0.47 per share (PKR 29.3 equivalent per share). Under the new leadership, the Bank will continue to focus on SME & Consumer financing resulting in efforts of increased profitability. Board of Directors Mr. Munnawar Hamid OBE, Chairman Mr. Hamid was elected Director and Chairman of the Board, in March 2008 and was re-elected as a Director by the shareholders of the Bank and Chairman by the Board in August 2011. He is also Chairman of the HR Committee of the Board. Mr. Hamid gained experience of commerce and industry while serving in a major chemicals company, ICI Pakistan Limited, as Chief Executive, as well as Chairman of a number of subsidiary companies of Global Corporations in Pakistan, which include ICI Pakistan and Pakistan PTA (now Lottee Pakistan PTA Ltd.). He has also served in London as a Global Senior Corporate Planner ICI Plc for its Pharmaceuticals, Agrochemicals and Seeds, and especially Chemical Businesses. Subsequently, he was the Advisor to the CEO of ICI Plc London, for South Asia. In addition to the Corporate sector, Mr. Hamid has been associated with a number of Boards, high-level consultative bodies, Public Sector Organizations, leading Advanced Educational Institutions and the Financial Sector of Pakistan. In......

Words: 3239 - Pages: 13

Premium Essay

M Commerce

...M-commerce(Mobile Commerce) is “the delivery of electronic commerce capabilities directly into the hands, anywhere, via wireless technology” and “putting a retail outlet in the customer’s hands anywhere.” This can be done with just a mobile phone, a PDA connected to a mobile phone or even a portable PC connected to a mobile phone. M-commerce is the buying and selling of goods and services through wireless handheld devices such as cell phones and personal digital assistants (PDAs). Known as next-generation e-commerce, m-commerce enables users to access the Internet without needing to find a place to plug in. The emerging technology behind m-commerce, which is based on the Wireless Application Protocol, has made far greater strides in Europe. M-commerce allows one to reach the consumer directly, not his fax machine, his desk, his secretary or his mailbox, but ones consumer directly, regardless of where he is. Internet use has grown to such a level on the strength of PC networks. Due to the huge base of installed PCs, which is predicted to grow in a faster pace in the days to come, electronic commerce and other communication applications are bound to thrive further. Also, these computing systems will have greater power and storage capability, the best ever price-performance ratios, more powerful and sophisticated applications will likely emerge for desktop computing and the Internet. However, there are two major limitations on PCs. First , users have to sit in front of......

Words: 709 - Pages: 3

Premium Essay

E-Commerce

...Introduction of e-commerce Electronic commerce can be defined as sales or purchase of goods and services or any commercial transaction through electronic systems such as internet, telephone and e-mail. There are several forms of e-commerce, including: Business-to-Business (B2B) is the electronic transactions between enterprises for conducting business. Business-to-Consumer (B2C) is the business sell of products or services directly to customers, such as Gmarket, Alibaba etc. Consumer-to-consumer (C2C) is the business conduct between consumers. This usually is a form of auction or forum site, such as E-bay. Consumers post what they intend to sell on the webpage, other consumers can access and bid for the item. Customer-to-business (C2B) is a form of business offered by consumer to business to exchange for money. For example, designers sell a design to a multimedia manufacturing company online. One of the major subset of E-commerce is mobile commerce. It is the sale and purchase of goods or services or conducts any business activities through internet connection using handy devices such as mobile phones and tablets. Mobile commerce is getting popular and can be defined as the next generation of e-commerce. Businesses conduct e-commerce to stay competitive. Some of the businesses are successful with the use of e-commerce, such as online shop Amazon and DBS Bank. Amazon provides a massive range of products. They are focus on their selection, price and convenience. Customers......

Words: 3739 - Pages: 15

Premium Essay

E-Commerce

...Glossary |Term |Definition | |Electronic Commerce |Electronic commerce is the buying and selling of goods and services on the Internet, especially the World Wide | | |Web. | |Etsy/Pinterest |Online websites for buying and selling products and ideas. | Executive summary The main objective of this report is to identify and analyse the benefits and problems associated using the E-commerce. The case study evolves the client, Miss Amanda Jane Walter in which her horse riding apparel business is threaten as many customers search and buy the products online compared to Amanda Jane who only sells the items directly to their customer. This report explains how E-commerce can be incorporated to help the company, Amanda Jane Horse Wear, to improve its business operations and improve on its advertising to outreach to a greater target audience within the horse-riding community. Some benefits identified include increased business efficiency, reduced operations cost, providing additional convenience to customers and expanding the company’s current customer base. On the other hand, the report will highlight the challenges that the business might face......

Words: 2826 - Pages: 12

Premium Essay

Commerce Bank

...Executive Summary Commerce Bank was founded in 1973 and it was conceived with a very unusual approach towards the standards in the banking industry at that time. The bank opted to focus on customer relationship, providing a “retailer like” experience which enabled them to grow substantially in the following years with outstanding results among all its competitors. The strategy of Commerce Bank was intended to attract customers interested in characteristics such as convenience and service rather than high rates. In their products, they offered deposit or checking accounts with very low or inexistent fees on transactions such as money withdrawal in foreign automatic tellers (ATM’s) or no card replacement charge. Additionally and differently from all its competitors, their value was based on core deposits not in loans. Commerce Bank using this approach, as a result, was able to differentiate from its competitors through high quality service, rewards, awards, hospitality all wrapped up in a unique pleasant experience for customers and employees. This approach was so successful that many competitors have adopted some of the basic services offered by Commerce Bank, bringing the question whether or not, Commerce Bank should continue to engage in this type of differentiation and service oriented operations to stay ahead and continue to grow.   Company Overview Commerce Bank as we stated before, was founded in 1973 by Vernon Hill, a part-owner of 45 Burger Kings in...

Words: 1571 - Pages: 7

Free Essay

Commerce

...he issue at stake is whether the rape of a female student by two male athletes (who have confessed to committing the crime) at the Virginia Polytechnical Institute in the year 2000 was a violation of a law passed via the Commerce Clause. A Federal law had been passed (43 U.S.C. 13981) which allowed victims of “gender motivated violence” (such as this student) to seek damages in a civil action through Federal court. The victim has since filed the civil action suit through a Federal Court using this law. The question before the court is whether anti-rape legislation is constitutional under the Commerce Clause. The rationale behind the resolution of this issue shall consist of careful analysis of whether this case falls under the precedent of Heart of Atlanta Motel vs US [379 U.S. 241] case of 1964 or the 1995 US vs Lopez case [514 U.S. 549]. It shall be determined whether the plaintiff had a right to file a civil action law suit under this law. Equally important, the constitutionality of the law under which the suit had been filed shall be reviewed as well. In the case that the law is found to be unconstitutional, the law shall be declared as such and shall not be enforced. The Commerce Clause allows the United States Congress to regulate trade among states. It had been was established in the historic 1824 Gibbons vs Ogden case. This case gave Congress the right to regulate interstate trade as long as it involved movement between at least two states. The power of the......

Words: 324 - Pages: 2

Premium Essay

Commerce

...reader for the purpose of uniquely identifying the object or transmitting data and/or storing information about the object. 4. Discuss how E-commerce help to improve customer support, empower employees and reduce cycle time. Reduce Cycle Time E-Commerce can reduce the cycle time by eliminating steps in business process and take a shorter time to complete a business transaction. The process of middle man and intermediaries will be eliminated and the suppliers or producers of certain products can send products directly to customers. By this, the company can reduce unnecessary cost and gain competitive advantages towards other companies. For example, Dell Corporation which does not use any middle man to complete the transaction will definitely reduce cost incurred that to be added on price paid by customers. Improve Employees' Empowerment  E-commerce are able to improve employees' empowerment by giving more flexibilities to access information such as Internet, Intranet, Electronic-Data-Interchange (EDI) and other access to global regulations and latest. It allows the decentralization of decision making and authority via collaborative commerce. Therefore, the employees have the ability to make decision for customers, have sufficient alertness of the complaints and they are able to handle the complaints efficiently. By having E-commerce, the employees even can work at their own house and can provide a quick response or feedback to the customers. As a result, it will......

Words: 4165 - Pages: 17

Premium Essay

E-Commerce

...Greenwich School of Management / plymouth university | E- Commerce | PC303 | | Sonny Tella Leshie : SN/129122 | | | Table of Contents 1.0 Executive Summary 2 2.0 Introduction 2 2.0 E-Commerce 3 3.1 Benefits of E-Commerce 3 3.2 Limitations of E-Commerce 4 4.0 Features of E-Commerce 4 4.1 Ubiquity 5 4.2 Global Reach 5 4.3 Universal Standards 6 4.4 Richness 6 4.5 Interactivity 7 4.6 Information Density 7 4.7 Personalisation/Customisation 7 4.8 Social Technology 8 5.0 Privacy and Security Issues 9 5.2 Security 9 6.0 Ethical Factors 10 6.1 Privacy 10 7.0 Recommendations 11 8.0 Conclusion 11 9.0 Bibliography 11 Appendix 13 1.0 13 2.0 14 3.0 15 4.0 16 5.0 17 1.0 Executive Summary This is a report of a critical review of the E-Commerce website of “Alfasud Parts Online”. The report will look at the general role of e-commerce in contemporary business and the advantages or otherwise for Alfasud. A critical analysis of the implementation of the unique features of E-Commerce shall be undertaken and their business significance for the company will be evaluated. This report will evaluate the security provisions on the e-commerce website and the employed technologies and methods for ensuring security and privacy. An evaluation of necessary ethical considerations and others issues arising on the website will also be conducted. The report will draw conclusions and make recommendations to the......

Words: 2846 - Pages: 12

Free Essay

The Commerce Tavern

...The Commerce Tavern Executive Summary The Commerce Tavern was a popular restaurant located in Merchants Square, Colonial Williamsburg. H. Franklin Nilson established The Commerce in 1982, and he has been operating this restaurant very well. Recently, Nilson had a conversation with Anne Hamlet from The Virginia Merchants Bank about the acceptance of credit card consumption at The Commerce Tavern. VMB was willing to give The Commerce authorization of the use of MasterCard and Visa cards at the tavern. However, the general payment method of The Commerce was cash-only, Nilson was not sure if this traditional method could always working well for his business in a long term, and if he should make some changes on the cash-only policy. In addition, if Nilson adopted the credit policy at the tavern, there would be related fees levied by VMB along with the increased business of The Commerce. Thus, Nilson must collect useful information and make a deep analysis before making the final decision. Decision Problems In this case of The Commerce Tavern, the major decision problem was that whether or not Nilson should accept credit cards as a kind of payment method at his Tavern. Under this decision problem, Nilson should think about if the cash-only payment method was too simplex to maintain or improve his business in the future; in addition, he had to consider the problem of the levied fees of credit cards. Background of The Commerce Tavern Nilson established the commerce Tavern in...

Words: 2072 - Pages: 9

Premium Essay

Electonic Commerce

...Electronic Commerce (E-Commerce) [pic] Chapter 1: Introduction o Background information Electronic commerce has revolutionised the entire process of business operation and transaction itself in the day-to-day business. The growth of electronic commerce is mainly with the technological advancements and the innovative methods of sales and conducting transactions over the Internet. Alongside, the increase in the competition and the continuous globalisation of the business organizations with the presence of conglomerates both at the national and international markets has created the need for electronic commerce as an alternative to leverage growth in business and generate revenue. Retail sector in the UK accounts for a major portion of the nation’s annual revenue. The increase in customer demand for new products as well as the flexibility for shopping online, the electronic commerce has made a tremendous impact in the actual form of retailing itself. In this report, the author aims to analyse the impact of electronic commerce over the retail sector and the extent to which electronic commerce has reached the general public. o Aim and Objectives The aim of this report is to analyse the impact of electronic commerce on TESCO Plc: the leading retailer of the UK.  The research is accomplished through the following objectives • To analyse the growth and impact of electronic commerce in the business society of the UK. • To research the effect of electronic......

Words: 4768 - Pages: 20

Premium Essay

Commerce

...growth. Thus, they accelerate the economic growth of a country and steer the wheels of the economy towards its goals of “self reliance in all fields”. It naturally arouses Kotak Bank's interest in knowing more about the ‘Bank’ and the various men and the activities connected with it. Indian Banking System Banking in India has its origin as early as the Vedic period. It was believed that transition from money lending to banking must have occurred even before Manu, The great Hindu Jurist, who has devoted a section of his work to deposit advance and laid down rules relating to rates of interest. During the Mogul period, the indigeneousBankers played a very important role in lending money financing foreign trade and commerce. During the days of East India Company, it was turn over the agency houses to carry on the business. “The General Bank of India” was the first to join sector in the year 1786.The others that followed were the Bank of Hindustan and the Bengal bank. The bank of Hindustan is reported to have continued till 1906 while the other two failed in the meantime. In the first half of the 19th century the East India Company established three banks: 1. Bank of Bengal (1809). 2. Bank of Bombay (1840). 3. Bank of Madras (1843. These three banks are also known as Presidency Banks were independent units and functioned well. These three banks were amalgamated in 1920 and Imperial Bank of India was established on 27th......

Words: 8998 - Pages: 36

Premium Essay

Commerce

...Locating the Boundaries: The Scope of Congress's Power to Regulate Commerce Bork, Robert H., Troy, Daniel E., Harvard Journal of Law & Public Policy The Congress shall have Power ... To regulate Commerce ... among the several States. --U.S. Constitution, Art. I, [section] 8, cl. 3 I. INTRODUCTION In the wake of the American Revolution, neither the Continental Congress nor the States acting on their own could respond effectively to the external and internal trade disputes that threatened the new country's prosperity and peace. "It may be doubted," wrote Chief Justice John Marshall, "whether any of the evils proceeding from the feebleness of the federal government, contributed more to that great [constitutional] revolution which introduced the [modern constitutional] system, than the deep and general conviction, that commerce ought to be regulated by Congress." (1) Accordingly, although the federal government was to be limited to exercising only enumerated powers, those powers included the power to regulate commerce, thus remedying this deficiency in the Articles of Confederation. Regrettably, but perhaps inevitably, "[t]he ink was not yet dry on the Constitution when its revision began." (2) Almost immediately, Congress began pressing beyond specifically enumerated powers granted it in Article I. As a result, today, Americans encounter a national government far more expansive than the Framers and men of their generation could ever have imagined. Despite......

Words: 648 - Pages: 3