Unit one Question one Propose an argument for organizations to become multinational. Your response should be at least 200 words in length. The main argument for organizations to become multination is to operate their businesses in different countries so that they can diversify their market beyond the national boundary. Multinational presence will enable the firms to operate their business activities in different countries for acquiring benefits regarding business and technical efficiency (Collins, 2013). This will reduce the cost of the product by obtaining cheap labor, tax advantage, large and untapped market share and technical advancement. For instance, Toyota, a car manufacturing multinational company, operates its different …show more content…
There is a remarkable increase in the form of strategic alliances, merger, and acquisitions, joint venture, takeover, etc. among national and international commercial marketplace. The primary reason for the adoption of collaborations is so as to fill in the remaining gap for an organization to remain competitive over the competitors in its region. The strategic alliance is such type of collaboration, which is used by companies by working together towards achieving their goals and objectives adequately (Volkmann, 2012). For example, Microsoft and Nokia made a strategic alliance for the purpose of developing a quality based Windows mobile phone for acquiring a significant market share in the mobile industry. Similarly, ‘CISCO Systems’ partnered with China’s largest e-commerce company ‘Alibaba’ to deliver exceptional services to their corporate clients. Question three Analyze and compose the significant components of international and domestic finance. International financial system and the local system have various components and which drives the market some of them which have an impact on the system are: Foreign currency, foreign deposits, and investments and foreign assets (Moffet, 2014);. The three top components which we can see are 1) International money There are international markets where the internationally accepted currency is a trade. Such currency is deposited with
There are many businesses that have expanded their business internationally in order to benefit in some sort of way rather it revenue or a better market for their product. In this thesis, I will research a multination company and its international strategy over the last 10 years. I will elaborate on it international orientation and rather it etho-, poly-, or geocentric. I than explain why the company decided on expanding to the chosen locations. Then I will clarify if they had core capability to succeed in those markets, along with its
Partnering with a competitor is becoming more and more common in today 's integrated, technology-based environment. This type of collaboration with a competitor is uniquely described as:
When a certain point is reached regarding a company’s success, a set of different opportunities arise and partnerships may unfold. However, with every possible strategy available, risks and benefits also come into play; without discarding any of them beforehand, every option is a strong candidate until a final decision is made. In this case study we will analyze the current business strategy pertaining
There may be several constraints placed on the business which may obstruct from fulfilling these purposes. Such constraints include, legal restraints, when working in various countries as one business the company will have to deal with different laws in order to function correctly, it may also have to deal with the politics of different countries and factor in any policies which may affect how the business can be run. Language and culture will have an effect on how the business is able to fulfil its purpose, if a multinational company has employees who speak several languages it could be difficult for them to work successfully,
International trading of currency within different countries has some of the same terms with the same meaning. None the less, although each country has a monetary system, problems can still arise whenever the exchange of capital is taking place remotely. Brigham
The business-level strategy end goal is to combine all of the component capabilities necessary to bring a product or service to the market with as many core competencies as possible, with as few weak activities as possible, in search of competitive advantage (South University Online, 2016, para. 4). In order to meet these requirements complementary strategic alliances are the most effective approach. Complementary strategic alliances are used in order for firms to share some of their resources and capabilities in complementary ways in order to create a competitive advantage (Hitt et al., 2015, p.271). This is the best strategy for business- level because these alliances allow firms to minimize risk and market issues. This is done by the firm having more access to supplies through the
The third market is the foreign exchange market or balance of payments. This is where the availability of foreign currency is balanced against the demand for it (Pugel, 2012, p. 564). The term foreign exchange market is used when referring to the exchange rate and the term balance of payment is used when referring to the country’s settlements balance.
Discuss at least two (2) strategies that multinational corporations (MNCs) can undertake in order to make
Part X1 of Giblin (2014) focused on power in organizations. Giblin (2014) described power as an important aspect in an organization. Power can help maintain order and ensure others are being compliant. Others have defined power as being influential, as being a force that influences behavior of another and to bring about outcomes in the organization. All these definitions and descriptions have similar things in common. First, power is hard to study unless you know who holds the power and who experiences it. Second, power is something to be exercised. Third, power is basically the ability to do certain things. Fourth and final, power can be used by others and not just from the one who holds it (Giblin, 2014).
Multinational corporation’s main goals are to improve revenue and profits by keeping the costs down, and to maximize profits for its shareholders.
SDC Platinum Database is used as an initial data source for searching alliances. I searched the alliances specifically in the period of 2011- 2015. However, as Schilling (2008) agrees, some data on SDC are not reported and not relevant. Therefore, when the agreements of alliances are not confirmed on SDC database, I conducted the MDT’s press release and annual report on the website to check the present states of the alliances. In addition, MDT and alliance partners’ websites were reviewed for the company information. Furthermore, theoretical analysis is conducted based on the book Network advantage written by Greve, Rowley and Shipilov, and 10 academic literatures that are selected by the course-coordinator.
History has generated businesses to an age where teams are credited as a critical factor of the business. During my tenure of employment today, most production that performs inside businesses employs a team approach, whereas labor that takes place outside of businesses depend even more profoundly on teamwork. Also in the course of my employment teams are progressively more common in businesses for responding to consumer’s needs to provide a product or assistance. In the three years of employment with my present employer it has been demonstrated that effective teams are reinforced by an obligation to encourage and increased rewards. Empowered teams in my office, is comprise of individuals with balancing skills who are dedicated to a common goal or an array of performance goals for which they deem themselves mutually liable. Ephesians 4:16 asserts, “From whom the whole body, joined and held together by every joint with which it is equipped, when each part is working properly, makes the body grow so that it builds itself up in love” (NKJ). If an individual make a mistake or stumble the rest of the group should assist in meeting the goal of achievement.
Every global fiscal and money related framework needs to depend on at least one universal currency so as to permit financial specialists to interface in the global economy by utilizing such coinage as a method of payment, a unit of record or a store of significant worth. At the point when these global currencies are additionally local ones, the supply of global liquidity comes from at least one "center nations." Furthermore, when the center governments work as a restraining infrastructure or semi-imposing business model, after some time they tend to exploit other countries ' high reliance on their local cash. By misusing this
Multinational organizations have cross-border operations that are primarily decentralized and autonomous. Decentralized organizations give more authority to lower level employees giving them a sense of empowerment. International organizations have a headquarters that retains some decision-making control but the organization is still largely decentralized. International companies build one or a few facilities in another country, in trying to have a competitive edge and lower costs, they become multinational when they build facilities in a number of different countries. An example is the U.S. automakers facilities in Mexico for cheap labor and Eastern Europe for manufacturing and assembly (Noe, Hollenbeck, Gerhart & Wright, 2012).
The objective of MNC to operate in other countries is to gain competitive advantage through several ways. Firstly, MNC is able to take advantage of difference in country-specific circumstances. For example, MNC may choose to locate its productions in less developed country like Vietnam to gain cheap labor cost. Secondly,