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International Business Management

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International Business Management

Set up and operate a Business in Foreign Country
Abstract
This paper deals with the international business. It emphasizes on the means to start the business and the cost associated with the initiation of the business. It also describes the most important aspect of managing human resource. Because of the competitive environment, the need to do the business internationally has increased. This paper provides the overview of the two countries i.e. china and South Africa.
Broad description of the legal processes that were supposed to be followed by the company to initiate business in the China has been explained. Apart from this, the staffing of local and expatriate staff along with the labor organization and legislation of the foreign country has been described. Therefore, the paper provides detailed analysis of the conditions that should be kept in mind while establishing business in the foreign country.
Introduction
International business is a term, which is used collectively to describe issues relating to the firm’s operations with interests in numerous countries. These firms are sometimes referred as multinational corporations. The main area of concern in the international business is the cultural considerations. These considerations include dissimilarity in law and legal systems, living standards, language barriers, climate and many more (Cherunilam, 2005). All these issues need to be overcome for an MNC in order to obtain success in an overseas venture.
Nationwide economic growth and globalization of the economy provide an outstanding background for businesses in China as compared to the South Africa. Nevertheless, the growth of the company and sustainability can be hampered by the factors like industry consolidation, economic reform and globalization. The project of building substantial companies and integrating them effectively into the global marketplace is a complicated task.
Reasons: Why Company Going Global
Many companies and businesses get into international selling because of the existence of competitive environment. This environment compels the company to move further rather than staying at the same stage and size by just focusing on the quality. Another reason of growth and expansion is the fear of loosing the customers.
If the company would not show sustainable growth, competitors would move ahead and chances of loosing of customers will increase (Cherunilam, 2005). Other general reasons for going international are: political changes like changes in the regulation of work and safety and economic changes that include cost of production. If there is an increase in the cost of production at home, company looks for places where cost of production is reasonable.
The four major objectives that compel the company to go for international business are: to enlarge the sales, to successfully get hold of the resources, to diversify the sources of sales and to look for the diversifying the supplies (Kazmi, 2002).
Overview
Population
China: China is a socialist republic and the most populous country with population over 1.3 billion. It is having 90.9% literacy rate (male: 95.1% & female: 86.5%). The average educational achievement in China is low.
South Africa: South Africa is a nation of diverse origins, languages, cultures and beliefs with population over 47-million. It is having 86.4% literacy rate (male 87% & female 85.7%) of total population. The average educational achievement in South Africa is very low.
Geographical Location
China: China is located in Eastern Asia bordering the East China Sea, Korea Bay, Yellow Sea and South China Sea between North Korea and Vietnam. China has mountains, high plateaus, deserts in west and plains, deltas, and hills in eastern region. The geographic coordinates of China are 35°00'N, 105°00'E. The total area coverage of China is 9,596,960 square kilometers (land area is 9,326,410 square km and water is 270,550 square km).
China is the world's third-largest country in total area after Russia and Canada, and the second largest country by land area. The total land boundary is 22,117 km and the border countries are Afghanistan, Bhutan, Burma, India, Kazakhstan, North Korea, Kyrgyzstan, Laos, Mongolia, Nepal, Pakistan, Russia, Tajikistan and Vietnam. China’s coastline is 14,500 km (China, 2008).
South Africa: South Africa is located at the southern region of Africa. The geographic coordinates of South Africa are 29 00 S, 24 00 E. The total area is 1,219,912 sq km. The total land boundary is 4,862 km and the border countries are Botswana, Lesotho, Mozambique, Namibia, Swaziland and Zimbabwe. Its coastline is 2,798 km. South Africa’s northwest region is desert and eastern is well watered.
GDP, Per Capital Income, Current Inflation Rate, Unemployment Rate
China: The GDP is $3.42 trillion and officially recorded GDP growth rate is 11.4% in 2007, per capital income is $ 2000, inflation rate is 7% in 2007 and it has jumped to 8.7 percent in February after severe winter storms disrupted the economy and worsened food shortages (China's inflation at decade high, 2008). Unemployment rate in urban area is 8%-10% (China Unemployment rate, 2008).
South Africa: The GDP is $283 billion, real GDP growth rate is 5.1% in 2007, per capita income is $ 5700, inflation rate is 7.1% and unemployment rate is 23% in Sep. 2007 (South Africa: Profile, 2008).
Type of Legal System
China: The legal system is based on civil law system. It is derived from Soviet and continental civil code legal principles. The legislature holds the power to interpret the acts. There are seven categories of laws in china’s legal system; these are: the constitution and related laws, civil and commercial laws, administrative laws, economic laws, social laws, criminal laws, and litigation and non-litigation procedural laws (The Constitution and Legal System, 2008).
South Africa: The legal system is based on Roman-Dutch law and English common law. There is an independent judiciary in South Africa. Constitutional Court and Supreme Court are the highest court in the country. Constitutional Court deals with constitutional matters and Supreme Court deals with the final appeals of all the other matters. The bill of rights provides fundamental political and social rights to South Africa's citizens (South Africa, 2008).
Type of Economic System
China: China is a major economic power and it has great potential of the development. Previously, the public sector was in dominant position, but after 2001, a socialistic market economy is taking place in China and the intensive mode is replacing the extensive mode of economic growth (Economic System, 2008).
South Africa: The South African economy is an industrialized and productive economy. It has inadequate distribution of income & wealth. Labor is divided into formal and informal sector. Formal sector is more developed, which is based on agriculture, manufacturing, services and mining. South Africa is looking forward for privatization along with free market economy and favorable investment climate (Economy: South Africa, 2008).
Type of Political System
China: The National People Congress is the highest authority of state power in China. The people congress system is the fundamental political system in China. The representatives are elected by people at all levels.
South Africa: The South African Republic is a federal state constituting of a national government and nine provincial governments. The constitution of South Africa was adopted in 1996 and implemented officially on 4 February, 1997. President of South Africa is the executive head of the state and leads the cabinet. He is elected for a two five year terms by the parliament (South Africa, 2008).
Estimates of Future Economic Growth & General Economic Projects
China: China has become the world’s fastest growing economy after the economic reforms in 1979. It has achieved 11.4% GDP growth rare in 2007. Industrial manufacturing expansion has contributed in China’s rapid economic growth. European Union, Japan, United States, Hong Kong and ASEAN are the major trading partner of China. Rapid economic growth of China results in an increase in income, which in turn makes China a huge market for a variety of goods and services. So it would be beneficial for any company to start operation in China.
South Africa: In previous years, South African economy was not doing well. Government was facing the problem of unemployment and poverty. But in recent years, country is seeking to achieve stable growth rate.
To promote economic growth, South Africa is making optimal use of available resources and reducing completer dependence on primary sector industries. South African companies are now investing in retail, banking services, telecommunication and shipping industry. Government is seeking to liberalize its economic policies to attract FDI and increase future economic growth and now outsider companies may think to start its operations in South Africa.
Social and Cultural Factors
Social factor in China: In China, the main focus of the business entities is on the corporate social responsibility. The Chinese region has become the region full of opportunities for MNC’s in these days because of the rapid rise, elaborating receptiveness and growing consumer market. The social factors reflect the true picture of society’s attitude towards the corporate. The symmetrical society structure stimulates forces on businesses for concentrating on corporate social responsibility (Kyoon, 2007).
Cultural factors in China: Understanding the culture of a country is one of the important factors in front of modern organizations. The traditions and customs vary among towns, cities and provinces in China. The social network structures in China assist in understanding the information sharing between the people (Kyoon, 2007). The Chinese environment is now open for the outsiders. The cultural values include the belief in God, unity, optimism and readiness to work together according to the rules of law.
Social factor in South Africa: The social environment of South Africa is highly imbalanced and not much developed. It suffers from the problems of increasing population, poverty, illiteracy and lack of resources. The population of South Africa was 40.6 million in 1996, which is growing rapidly at the rate of 2% per year. If the same trend continues, then by the year 2035, the population of South Africa will be approximately 86 million. This will be a problematic situation as the country has limited resources to support its increasing population. There is already a pressure on the resources to meet the needs and requirements of the people (Social Environment, 1999).
Many people in the country live in informal and inadequate houses and just half of the population lives in towns and cities. Many people living in rural as well as urban areas even do not have access to water supply, electricity, sanitation and other services. Nowadays, the urban population of South Africa is rapidly increasing because of factors like growing employment opportunities, land reform and restitution and immigration from other countries.
Unemployment and poverty are the major problems in South Africa that affect the social life of the people. The poverty level is the highest among the Black population of South Africa. It has reached up to a level of 60%.
The education level of the country has increased as compared to the previous year levels, as the country has reformed its educational system. Almost, all South Africans now have access to education but still about 7.5 million people are functionally illiterate. Such factors contribute to high crime rates in the country that have noticeably increased in the urban areas. These and other factors contribute to the high crime rates currently experienced in many urban centers.
To promote sustainable development and reduce social imbalances such as poverty, unemployment and pressure on natural resources, the Government has developed a number of policies and passed a number of laws aiming at some constructive work in this direction. These include the Reconstruction and Development Programme, a White Paper on Population Policy, and the National Crime Prevention Strategy (Social Environment, 1999).
Cultural Factor in South Africa: Africa has a diverse cultural environment with about 800 languages spoken all over the continent. Among these, South Africa have 11 official languages of its own, i.e. English, Afrikaans, Tsonga, Xhosa, Ndebele, Southern Sotho, Zulu, Tswana, Venda, Northern Sotho, and Swati. There are many cross-cultural challenges that are critical to success and organizations should be prepared to face these challenges.
Analysis
The company has chosen china for its operations as china has successfully emerged as the best suitable market for the consumer products, especially in terms of the growth rate, potential and the market size. China is providing huge benefits to attract the players from the United States.
The growth graph of the china depicts that the market of the consumer electronics is growing with a CAGR of 11.7 percent from the year 2002 to 2006. Future also shows the greater intensity of market growth. There is a greater possibility of bright future in Consumer Products. The Company is willing to start its operation.
Another major factor for establishing operation in china is the population as it is regarded the driving factor for any business. Apart from this, there is a well established market of credit card, which has increased the popularity of the consumer products in the country (Windsor & Jones, 1999).
China is the highly populous country and demands for consumer products are fuelling with greater pace. In china, urban centers are emerging which are called secondary cities, which comprise of 8 to 10 million people. These cities have huge buying power and industrial development.
These cities would be best for the company’s operations and are located interiorly away from the cost. Tsingtao is a city, which is suitable for the operation of the company because its urban area is quickly expanding. It is also having excellent connections with the countryside. The disposable income of the people is quite similar to the people in the bigger cities. Another reason for selecting this place is that the people in this city show greater likeability towards the product of the United States and relate the product with greater degree of integrity. People show positive view and experience towards the U.S consumer products.
Operations
In order to establish operation in china, company’s chairperson should visit these cities, must talk to the local officials and begin networking. Apart from this, the most important thing is to analyze the competitors’ working and strategies. Another step that the company can adopt is subcontracting, which can be done by forming joint ventures with the manufacturers of china.
If the company doesn’t possess enough resources for joint venture, company can go for forming the partnership or consortium in the United States. This consortium acts as the legal entity, which can form partnership with the Chinese manufacturer. The advantage of the consortium is that it reduces risk and the cost for the company (Barron, 2006).
While selecting the operations, evaluation should be made based on the analysis of cash accounting and not on absorption accounting. As in absorption accounting, the fixed costs are prorated over small volume of production and thus the number obtained can deter company from moving production to a subcontractor.
The other operations include: integrity of product and trade safety, fair & balanced economic development, financial sector reform, security & energy efficiency, sustainability in environment and bilateral investment. All the above mentioned reforms would help the company to establish business opportunities in china.
The agreement between the United States and China that relates to conduction of business with extensive cooperation covers the issue of climate change, environmental sustainability and energy security. This type of agreement would advance the innovation in the technology and the acceptance of extremely-efficient and clean energy technology will encourage the development of technology so as to address the changes in the climate and promoting natural resources.
Three major factors, which can determine the success in the Chinese market and should be kept in mind, are: * Culture: Understanding of Chinese culture and behavior can provide better option to fulfill the demands of the customers. * Value Proposition: This includes having the knowledge of technical know how and understanding the level of competitiveness. * Negotiation: The Company should implement negotiation technique as per the way of Chinese.
Success of doing business in China depends greatly on the extent of adoption to the requirements of the local customs instead of the value proposition of foreign investors.
Legal processes
In the process of starting a new business, Legal and regulatory processes play a very vital role. Legal processes include several restrictions, intrusive bureaucracy, dissimilar understanding of regulations from place to place even between authorities and recent formulations of policies that are aimed at safeguarding the domestic companies. Therefore, before starting any operation in the foreign country (china) the company should understand regulations and their applications before entering into any agreement.
The company should look for legal proposals from experienced professional firms. Due attention should be given to the financial and legal background and also on the reputation of key partners. Apart from this, partners and employees should be educated on the protection of the intellectual property. If required, the rights can be enforced but for this, all the terms and conditions should be well known.
Management Organization Structure
Organization structure plays a vital role in determining the success of the company in the host country. Therefore, there is a requirement of change in the organization structure in order to accommodate a firm’s internationalization approach in answer to the worldwide competition. Significant research has shown that the structure of the firm must be conducive to the strategy implementation. In simple words, it can be said that the structure should “fit” the strategy. Managers should work towards achieving the fit between the structure and the strategy (Gupta, 2007).
Management organizational structure refers to the representation of a formal structure, which describes relationship inside an organization. The level to which authorization is assigned ascertains centralization and decentralization.
Most of the MNC’s in their initial phases of globalization utilized an international section traversing certain regions of the world to manage the functions in those regions. Matrix organizational structure is very effective for the business. The structure of the organization is decentralized, which merge the advantages of being large with the agility and concentration of smaller organizations.
The small segments of the business assist in concentrating more on the needs and requirements of the customers and employees effectively. The company’s employees are associated with the goals and objectives for an established global enterprise. The organization is mainly focusing on the way in which the products and services are delivered to the customers. The development and marketing of products and services in an effective provision provide specialized and quality services to external and internal customers.
The autonomous operating companies broaden the geographic reach of the associates around the world and provide larger marketplace and product focus. This way, the employees get closer to the customers and business. The employees would be able to gain more sensation of ownership in driving the business. The employees are authorized to aim their business to fulfill the varying needs of customers inside their regions (Mathew, 2003).
The decentralized operating companies, associates and business sections are joined in the organization structure, which ensures that the activities are aligned with the overall strategic objectives. All the employees perform their work systematically with the high ethical standards.
As the company rises, the structure also develops, assuring the effective growth of the business portfolio. In recent years, the business sections have constituted shared service groups that raise and confirm the capabilities of the individual companies in the elementary domains of responsibility.
The corporate headquarters in the U.S. function with the family of companies for producing great synergism and efficiency by collaboration, dispersion of better patterns and organization of shared business information. The corporate headquarters render direction and services in different critical areas, which include human resources, finance, advertising, and law.
The consequences of environmental circumstance (instability of technology), industrial circumstance (production technology) and organization structure on the involvement of customer in product development are the main areas of concentration in China (Windsor & Jones, 1999). The earlier results demonstrate that for going through customer orientation in the firms at China, the company has to modulate towards market driven economic entities.
Product Distribution
Distribution is the key factor for successfully implementing the business strategy in other countries. Consumer product requires an effective distribution strategy for increasing awareness among the Chinese customers, as China is a diverse country with cultural and economical differences.
The goal of reaching the estimated sale of the product according to the schedule would not be possible to achieve if the product will not reach to its prospecting customers appropriately. There are various ways to distribute the consumer product effectively such as creating network of wholesalers and retailers, establishing factories and networking.
Creation of the network of wholesalers and retailers: It refers to the creation of an effective network of wholesalers and retailers, which assist the organization to distribute the consumer product in an efficient way. Both of them will be responsible for the functioning of distribution in a scheduled time period (Cherunilam, 2005).
Establishing factories and depots: It refers to the establishment of factories and depots, which are required for the manufacturing and processing. It will assist the organization to work effectively. For ensuring plenty of inventories, the company should have its factories and depots near the demographic areas.
Creation of large warehouse: It refers to the establishment of large warehouses in the demographic areas. It will assist the company to distribute the consumer products in China.
Networking: It refers to the development of effective network of distribution channel. It will assist the company to distribute the consumer products in an effective way. It requires establishing contacts with different persons who have the perfect knowledge of the market.
Foreign invested commercial enterprise (FICE): It is the facility through which any foreign country can distribute its products in China without the approval of government. So it is another arrangement for the organization to distribute its consumer products in China effectively (Sharan, 2005). It is an effective tool for the company to engage in the activities such as wholesaling, retailing and franchising.
Distribution Channels
It refers to the channel for distributing the product in direct or indirect way.
Indirect channel: Marketing middlemen and cooperative organization come under the Category of indirect channel, which performs the task of distributing the product in the foreign country in an effective way.
Marketing middlemen: There are two important categories of marketing middlemen, one is merchants and another is agents.
Merchants: the domestic based export merchant assist the company to distribute the consumer product in an effective way.
Agents/brokers: Agents and brokers play an important role in the distribution of the consumer product. They assist the company in achieving the sales target within a specified time period.
Cooperative organization: These organizations carry the function of both the channels whether direct or indirect by exporting combination and allied company arrangement (Sharan, 2005).
Direct channel: It refers to the direct marketing of the product in a foreign country. It assists the company to distribute its consumer product in China in an effective manner. Direct channel performs its function of distribution with the help of sales subsidiary, export department and cooperative export company.
Process of selecting Local and Expatriate Staff
An international business must procure, motivate, retain and effectively utilize services of the people. International human resource management is the process of procuring, allocating and effectively utilizing human resources in an international business. Many factors influence the staffing policy for international business like the cultural dimensions of the host country, the subsidiary characteristics, parent company characteristics, cost to be incurred and the host country considerations. While dealing in international business, it is an important consideration of how to select the local and expatriate staff (Gupta, 2007).
Selection of local staff is determined by a number of factors. The persons to be selected should be perfect in the local language and should necessarily be residents of the host country. The skill levels of all the persons should be examined properly. They should have the required experience and knowledge of the job.
Selecting local candidates can reduce the training expenses and the HRM cost. Increased growth opportunities for the nationals will motivate them and they will be committed to their work. Also, the company can get positive support from the Government of the host country. It also reduces the turnover among the employees.
Another option is to select the expatriate staff i.e. selecting the staff from the home country to employ in the host country. This is a tedious task as people from home country generally do not prefer to shift and work in the host country. The considerations for selection of expatriate staff are that the candidates should be talented and capable enough to handle the work responsibilities. They should be able to adapt to the culture of the host country (Sharan, 2005). There should be a feeling of unified corporate culture. They should be expert in handling the resources of the company and should know to manage the competencies of the company.
Training concerns
The local staff does not require much training except the work training and a small training session concerning the legal and ethical concerns of the company. So, the local staff can be given on the job training through lectures, conferences and seminars. But, there is a lot of training expense required for expatriate staff (Mathew, 2003).
The expatriate staff needs to be trained to adjust according to the culture of the host country such as the food habits, dress sense, ethical and moral values of the country, etc. They should also be taught the local language of the host country, which will help them to communicate well in the organization.
This kind of training is necessary because the expatriate staff needs to adjust in a strange country along with his family (Gupta, 2007). They are also given training of how to react in different situations and solve different problems related to the workplace. Most of the times, the expatriate staff is given off the job training like role playing, vestibule training, case studies, etc.
Motivation concerns
With regards to motivation, both the local and the expatriate staff need to be motivated. They should be assured for regular appraisals based on performance and also pay increase based on the same criterion of best performance. But the expatriate staff will be motivated much by attractive salary packages and extra benefits with it.
Both should be given fixed discounts on the products and services of the company. Employees should be given rewards for their performance (Gupta, 2007). There should be recreational facilities for the employees, especially for the expatriate staff as they might feel home sickness in a strange country and will take time to adjust. Parties and picnics should be organized for the employees.
Compensation concern
In case of compensation, the basic salary package should be enough attractive for the expatriate staff and accordingly for the local staff. The basic salary for the expatriates includes cash payment along with Foreign Service premium, cost of living allowance, housing allowance etc. The employees should be given extra benefits with the salary (Mathew, 2003). They should be given fringe benefits and a number of incentives along with their pay. Bonus and various attractive gifts should be there for the employees on occasions and also according to their performance.
Labor Organization and Legislation
The labor organizations in China are committed to safeguard workers’ political, economic and cultural rights. These unions are under the influence of Chinese Communist Party. These unions are voluntarily constituted by the workers of all the enterprises, government department and institutions regardless of their age, sex, nationality, occupation and religion.
The Constitution of China acts as the basis for the activities of labor unions. These labor unions perform their activities and exercise their rights according to the rules of unions and laws of constitution. The national congress of trade union is the superior body of Chinese trade unions. There are 31 state trade unions, 10 national industrial unions and 2 trade union federations in China.
The All-China Federation of Trade Unions was established on May 1, 1925 as a united, unified and powerful national organization to work as a federation of trade unions at local level and industrial unions at national level. Presently, 130 million workers are the members of ACFTU. In China, the workers of an institution, organization or government department form their trade unions.
China is a member of International Labor Organization (ILO) and the basic obligations of Chinese Labor Law are from the conventions of ILO. Chinese trade unions are developing contacts with other international labor unions maintaining equality, interdependence, mutual respect and non-interference in their affairs. Trade unions of more than 140 countries and regions are associated with Chinese trade unions (All-China Federation of Trade Unions and Its Work, 2002).
The Chinese trade unions are playing an important role in China’s political and economic condition. The Trade Union Law protects the trade union by providing them legal assurance. The trade unions are having a sound organizational structure because they are at all the levels such as national, township, municipal and grassroots level within the country. These unions are funded by workers and worker welfare business.
Chinese Labor Law integrates many local and national laws. The Labor Law Act (Labor Law of the People’s Republic of China) came into being on January 1, 1995. According to the Chinese law, if there is any affair related to the interests of the employees, the trade union representatives have to be invited to the meetings. The trade unions are not very active in China and the legal position of workers is not much strong. Employers are carrying an influencing role on the workers.
According to a new administrative directive on December, 2004, employees are protected centrally by the state. This provides a better control to the authorities related with wage, working hour, workers’ rights and social security. The Foreign Invested Enterprises (FIE) can not directly recruit the workers in China. They have to take the approval of local labor authorities for this purpose. Employers are directed to present the employment contracts to the labor authorities. Income distribution is not equal in all the areas of China. In China, uniform and nationwide security law is to be established.
The Foreign Invested Enterprises have to provide justification about the employment of an employee from their country. They have to convince the local labor authorities that they could not found any well qualified persons who can fulfill all the requirements of any particular position.
Thus, trade unions in China are working for the welfare of employees and with the new directive, they are provided with some more legal authorities. Foreign Invested Enterprises can start their operations in China but they have to follow the rules and regulations of Chinese Labor Law and approval of local labor unions for recruitment.
Additional Risk
Additional risk prevailing in china aroused due to its withdrawal from the network of economy and social welfare (Ying Ma). This has engendered the country into a stage of massive unrest and unemployment and has developed the situation of political risk. Rate of unemployment in the rural area is 20 percent (Doing business with China, 2007). Occurrence of riots has increased every day in china. A major currency risk of doing operations in China is the difficulty in collecting full payment on required time. Effective steps should be taken to minimize these risks.
Conclusion
Based on the above study, it can be concluded that company can successfully carry its operation in china despite of the risks. Company should take effective steps to mitigate these risks like adequate diligence, experience and proper communication. Apart from this, effective planning and pursuing with the right partners can play a significant role. Realistic decisions should be taken along with the market analysis by using news and media sources.
References
All-China Federation of Trade Unions and Its Work (2002, November 12). Retrieved July 25, 2008, from http://www.china.org.cn/english/2002/Nov/48588.htm
Barron, W. (2006). The China-dominated manufacturing environment. Barrington: KDC & Associates Ltd.
China (2008, July 15). Retrieved July 25, 2008, from http://www.cia.gov/library/publications/the-world-factbook/geos/ch.html
China's inflation at decade high (2008, March 10). Retrieved July 25, 2008, from http://edition.cnn.com/2008/BUSINESS/03/10/china.inflation/index.html
China Unemployment rate (2008). Retrieved July 25, 2008, from http://indexmundi.com/china/unemployment_rate.html
Cultural challenges in South Africa. (2007). Retrieved July 25, 2008 from http://www.expatica.com/hr/story/cultural-challenges-in-africa-29882.html
Cherunilam, F. (2005). International Business: Text and Cases. New Delhi: Prentice Hall of India Pvt. Ltd.
Doing business with China. (2007). Retrieved July 25, 2008 from http://www.canadabusiness.ca/alberta/content/Doing_Business_With_China_2007.pdf
Economic System (2008). Retrieved July 25, 2008, from http://www.china.org.cn/english/features/38200.htm
Economy: South Africa (2008). Retrieved July 25, 2008, from http://www.state.gov/r/pa/ei/bgn/2898.htm#econ
Gupta, C.B. (2007), Human Resource Management (3rd Edition), New Delhi: Sultan Chand and Sons.
Kyoon, S. (2007). Information & Management. An empirical investigation of socio-cultural factors of information sharing in China. University of Rhode. Vol. 44(2).
Kazmi, A. (2002). Business Policy and Strategic Management (2nd Edition). New Delhi: Tata McGraw Hill Publishing Company.
Mathew, M.J. (2003). Fundamentals of Organizational Theory and Behavior (1st Edition). Jaipur: RBSA Publishers
Sharan, V. (2005). International Business: Concept, Environment and Strategy (3rd Revised Edition). New Delhi: Pearson Educational Publishers.
Social Environment. (1999). National State of the Environment Report. Retrieved July 25, 2008 from http://www.ngo.grida.no/soesa/nsoer/issues/social/driver.htm
South Africa (2008, July). Retrieved July 25, 2008, from http://www.state.gov/r/pa/ei/bgn/2898.htm
The Constitution and Legal System (2008). Retrieved July 25, 2008, from http://www.china.org.cn/english/features/38127.htm
Windsor, D & Jones, J. H. (1999). The China Venture: America's Corporate Encounter with the People's Republic of China. The Academy of Management Review, Vol. 15 (3). pp. 553-555.
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...School/Portfolio | The Business School | Course Code/ID | BSMAN3007 | Course Title | International Business Management | Program(s) | Bachelor of Applied Management | Lecturer | Chirs Pan | Author | Wang Lin yu | Email | lynne.lowkey@gmail.com | FIN | G0961866Q | Date | 10 Jan 2013 | 1. Exective summary This case study discusses the business strategies used by Apple, Microsoft and Google in internet industry。Everyone know the Internet has developed into an enormous information infrastructure. This new economy is driven by a relentless force of technological and conceptual innovations stemming from an innumerable number of parties scattered around the globe. Its speed of change and innovation make it to a highly competitive arena. Apple, Microsoft and Google have been the most successful companies within this arena for a long time. Throughout the previous decades, they have internalized the economic laws and technological characteristics of the Internet in their business thinking. Their strategies and competitive moves did not only form the information economy as we know it today, but do also provide showcase examples of how profitable market positions can be achieved in the Internet. Table of content Introduction My report answers some questions: How did Apple, Microsoft and Google successfully navigate and define the competitive arena of the Internet? Which roles did their unique strengths play for their business strategies? ......

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...[pic] MGT 3446 – International Business and Management Final Project Microsoft -Business in China Megan DeMeo August 23, 2013 1. Case Summary Microsoft decided to enter into China back in 1992 and opened its first sales office in Beijng. China has an extremely large market of consumers which is the main reason many, including Microsoft, have been lured into China to start business. China also has a large number of inexpensive laborers that allows for work to be completed on a product and then to be sold at the same price but made for much less. Microsoft was also lured into China by the size of its market and its phenomenal economic growth as well as the Chinese engineering talent that was available. Microsoft has experienced complications over the years while performing business in China which has included piracy of its products. This was a major problem in the beginning, has been a constant issue over the years, and is still troubling Microsoft today. 2. Company Background The Microsoft Corporation is a multinational software company that was created in America and is headquartered in Redmond, Washington. The company was founded in 1975 by Bill Gates and Paul Allen. The company develops, manufactures, licenses, and supports a wide range of products and services related to computers and other electronic devices including video gaming systems. Microsoft operating systems, such as Vista...

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...(1)INTRODUCTION When doing business in an international scale, it is important to understand what international business really means. Therefore according to Rugman & Collinson (2012) international business can be defined as “The study of transactions taking place across national borders for the purpose of satisfying the needs of individuals and organizations. Some of the well known International businesses (MNE’s) are Wal-Mart, Toyota Motors, General Motors and Volkswagen for their performance, moreover annual revenue. Decisions with regard to movement in to global arena should be taken with care as there is certain degree of risk involved.  There should be value in moving to different markets (eg- An organization may lack the skills needed to make use of the potential-Integrate R&D activities or incompatible cultures  The cost of managing complex infrastructure should not –outweigh the benefits of increased scale  Some industries posses’ particular globalization challenges for example companies operating in the manufacturing sector (automobile makers) often faces complexities in integration and particularly vulnerable to economic slowdowns which reduces their ability to expand. (Alexander & Korine, 2008) According to Wall & Rees (2004) the factors to be considered when investing abroad can be classified in to four areas-Supply factors, demand factors, Political factors and others. Under supply factors, production costs, Distribution costs and access to key......

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...Starbucks………………………………………………………………………………………………………………..6 Why Starbucks – TATA will work?....................................................................................................7 Starbucks Competitive Environment…………………………………………………………………………………………………………..8 Starbucks PEST Analysis…………………………………………………………………………………………………………………………9-10 Corporate Strategy of Starbucks……………………………………………………………………………………………………………….10 SWOT Analysis………………………………………………………………………………………………………………………………………….11 Conclusion………………………………………………………………………………………………………………………………………………..12 References………………………………………………………………………………………………..…………………………………………13-14 Introduction Globalisation means growth of a company to global or international boundaries. It is consider being a process where the economic, cultural and social activity of a particular organization is carried to an international level. It helps in the exchange of ideas, goods and services between the people of different nations which overall leads to the expansion of the society of a country. To expand globally, a company has three key questions to answer: “The essential act of entrepreneurship is the new entry. It can be accomplished by entering new or established markets with new or existing goods or services. New entry is the act of launching a new venture, either by a start-up firm, through an existing firm or via internal corporate venturing” (Lumpkin and Dess, 1966) Starbucks a very popular coffee house started back in 1971 where......

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...regions is that they have a larger pool of potential customers. According to the U.S. Small Business Administration, about 96 per cent of consumers and two-thirds of the world's purchasing power reside outside the U.S. Sources of revenue from other countries help businesses survive periods of low domestic sales. Access to labour is another advantage that multinational companies enjoy over other companies. A firm that has operations in many countries can set up its production operations in China or India to take advantage of cheap labour and then sell products in more affluent countries in North America and Europe. Companies that have operations only in the U.S. have difficulty while competing with multinational companies. While multinational companies can take advantage of cheap labour, they might also be subject to higher taxes and have to pay more for other things such as transporting goods. Many countries impose taxes called duties or tariffs on imports and exports, making it more costly to sell goods to consumers in other countries. As well, there are some disadvantages while facing multinational corporate. A potential disadvantage that multinational companies face is that they are subject to more laws and regulations than other companies. Certain countries do not allow a company to run its business the way it operates in other countries, and each country has different labour and business laws. Multinational companies can also face intellectual property issues that......

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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......

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...disadvantages for Tata tea? In microeconomics, economies of scale are the cost advantages that enterprises obtain due to size, output, or scale of operation, with cost per unit of output generally decreasing with increasing scale as fixed costs are spread out over more units of output. The purpose of mergers and acquisitions of Tata Tea is reaching the operational efficiency in the worldwide The restructuring combined with business strategy will bring many benefits for Tata tea brand in the international tea market; to be a global brand, gaining economics of scale, holding more market share and generating higher profits. However, there are not only benefits, Tata Tea have also some challenges from Economics of scale. Benefits * Helping the company easy to raise capital, streamlining operations, reducing costs, making ensure a global professional sourcing, bringing economic advantages of scale and creating conditions for Tata group in enhancing distribution network. * Helping the company have global of scale to compete with the other international company. * Contributing to the global presence of the company, accessible, packaged and sale to many markets and different distribution channels. * Helping the company to manage cost and human resources effectively. * Getting chance to look up a stable input material from tea plantations on around the world, reducing risk relevant to operational varies. Tata is advantage about the source of material by owned......

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...want the ability to opt out of online tracking. Ethical dilemma in this case study is Facebook monitors its subscribers and then sells the information to advertisers and app developers. 2) What is the relationship of privacy to Facebook business model? The relation between user’s privacy and Facebook business model is important because Advertising is the mainly revenue of Facebook. 70% of its five million users log in every day and they all between 18 and 24 that advertisers want to collaborate with Facebook to make profits for both.Talking privacy to Facebook is a bit ironic. Facebook’s entire business model is based on aggregation and sharing user information. They give people a free social media platform to use and in turn sell advertising and insights based on what they learn about user. Facebook has massive capabilities to collect, store and analyze data.This allows Facebook to sell much targeted advertising. Therefore, privacy is the Facebook business model. Facebook states its regulations concerning to the rights and responsibilities derive from the Facebook Principles, and govern the relationship with users and others who interact with Facebook.  3) Describe the weaknesses of Facebook’s privacy policies and features. What management, organization and technology factors have contributed to those weaknesses? The weakness behind Facebook’s privacy issues was a lack of communication between Facebook and its users. Users were not aware that they were able to control......

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...BA356 International Business Management 1) You are the risk manager assigned to a municipal public works team in charge of school construction and operations.  It has become clear that the current elementary schools in your town are inadequate for the number of students that are currently being served; in addition, many of the schools were built in the 1950s and are in serious need of repair.  Project Document: Risk is a powerful force in innovative organizations for the obvious reason that it means the future outcomes of decisions are uncertain and, less obviously, because it can foster decision biases like loss aversion and over-optimism. The construction or retrofitting of a school building is a valuable educational opportunity with the potential to further strengthen community ownership of the school and demonstrate hazard-resilient techniques that can be replicated in homes and other buildings. Every school must be constructed as a safer school and existing unsafe schools must be retrofitted to be disaster resilient. The Education for All will not be achieved without the construction of safer and more disaster resilient education facilities. At a time when the frequency and magnitude of extreme climatic events is rising, a growing number of the world’s school-going children are increasingly exposed to earthquakes, wildfires, floods, cyclones, landslides and other natural hazards. For example: • The Sichuan earthquake (2008) killed more than 7,000......

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...8 Vertical Collaboration in the Supply Chain Sanda Renko Faculty of Economics & Business University of Zagreb Croatia 1. Introduction Supply chain is a research area which has attracted the attention of many researchers for more than 20 years (Mehrjerdi, 2009) due to costs and time involved in managing materials, information and financial flows from the point of origin to the point of consumption. The simplest definition of the supply chain suggests (Waters, 2003) that it consists of series of activities and companies that move materials through on their journey from initial suppliers to final customers. On that journey each company somehow is adding value to the product. However, due to an increasing competition on the market and due to more demanding and more sophisticated customers, the picture of supply chain is getting more complicated. If we take into consideration that many companies have crossed their borders and have included some geographically separate operations into their supply chain, it is very difficult to successfully integrate and to manage all related activities. In the praxis, it is normally that every company is working for its own benefit resulting in duplicating effort and reducing productivity, lowering efficiency, higher costs and decreasing the level of customer services. However, environmental uncertainty expressed through shortening product life cycle, expanding product proliferation, and more demanding customers requires......

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...Course Study Guide 2011–12 International Business Management BUSI 1493 [pic] Contents 1. Welcome 3 2. Introduction to the Course 4 2.1 Aims 4 2.2 Learning Outcomes 4 2.2.1 Knowledge and understanding of: 4 2.2.2 Intellectual Skills: 4 2.2.3 Subject practical skills: 5 2.2.4 Transferable skills: 5 2.3 Learning and teaching activities 5 3. Contact Details 5 4. Course Content 6 4.1 Session Reading 20 5. Assessment Details 21 5.1 Summary of assessment 21 5.2 Detailed description of assessment 21 6. Other Details 23 1. Welcome Welcome to the exciting world of International Business Management! In this era of globalization, there are very few companies that can say that they are not part of a global network. Every firm has to think of itself as a global company, if for no other reason than because it has to meet competition from global companies. This changes the entire strategy of the firm. In the future, we expect that all of you will be involved in managerial decision making that will take you beyond the realms of your geographical territory. This course on International Business Management will have the focus on helping you make better international decisions. Aside from the opportunities offered by globalisation, there are also many risks in entering into the global market. This course will attempt to address, in a structured format, the ways and possibilities of......

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