Business Management – Manager Memo – Due Fri 10/22 - Human Resource Management
Topic: Identifying Future Opportunities and Markets for Easy Chairs
Format/Length: 2 pages | APA Format | MUST USE AT LEAST 2 COURSE RESOURCES
Due: 12 pm EST – Friday, October 22, 2021
Info: Please see the attached assignment details, case study, and course resources.
Week 1 Brainstorming Discussions
BEFORE STARTING: Review the requirements for the Brainstorming Discussions
Brainstorming is a technique that seeks to collect a myriad of ideas about a problem to
find a unique and often innovative way of handling the solution. It can also be a way of
collecting information about a situation or produce feedback about a particular
topic. Brainstorming works very simply with only three rules: No idea is too farfetched,
all ideas are to be accepted by the group for consideration, and the ideas must focus on
the topic presented for discussion not whether the idea will work or not. Obviously,
many ideas will be discounted later on when constraints like budget or implementation
impossibilities may block its consideration for successful implementation. However, for
the purpose of this discussion focus only on suggesting ideas from the class material and
research which will answer the topic under discussion.
What does it mean to be a manager today?
Assignment: Identifying future opportunities and markets for Easy Chairs
In the past year and a half, Dwight and Ike have expanded Easy Chairs (EC) into the
Asian Marketplace and increased their online presence to be more globally appealing.
They have also sought to keep manufacturing in the USA. Concerns that Dwight and Ike
have about opening manufacturing operations abroad stem from their fear that the
quality of the products they make will be lesser than those produced in the US, the
culture clash may be too hard to overcome, and that the business will become too large.
It is also part of their culture to employ wounded US veterans first. This may be hard to
accomplish abroad. Additionally, EC is a small family firm and expanding abroad would
make it hard for managers and leaders to keep that I belong feel that family embodies.
Dwight and Ike want your thoughts on the subject of expanding manufacturing
operations abroad. They would like to get fresh ideas on the subject. Using a memo
format, create a no more than 2-page memo with an answer which considers the
following:
Use the following template for your memo: Memo Format
Directions:
1. By FRIDAY, complete the following:
o Using the memo template prepare a 2-page memo to Dwight and Ike on
the subject of manufacturing abroad, including:
The future of the business environment, technology, and market
opportunities for ECs products.
(Topics to discuss: cities vs. rural, where are they likely to be
popular? What countries have employees who can work the
https://learn.umgc.edu/d2l/le/617194/discussions/topics/3444518/View
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https://learn.umgc.edu/d2l/common/dialogs/quickLink/quickLink.d2l?ou=617194&type=content&rcode=UMUC-5268175
https://www.instructionalsolutions.com/blog/memo-format
https://www.instructionalsolutions.com/blog/memo-format
machines? Education? Cost of Living? Language etc. wealth
distribution) The class material is a good place to start but
research online will enhance the answer.
Advantages and disadvantages of manufacturing abroad.
The role of managers and leaders in business today.
Support the response with facts, figures, and expert opinions.
Dwight and Ike like to see you have done your homework.
Use course material to support your responses and APA in-text
citations with a reference list.
2. THROUGHOUT THE WEEK, complete the following:
o Respond to your classmates three or more days throughout the week.
Remember you are trying to develop the best answers to the questions as
possible. Your classmates are doing the same so read the posts carefully
looking for the best ideas being presented. The goal is that by the end of
the week the class will come to some consensus as to the best answers
giving you the chance to submit the best ideas in the final post.
o You must use course material to support your responses, but you do not
need to use APA in the brainstorming discussion with the exception of
Fridays initial first impression post.
o Participation is worth 2.5 points each week (20\% of the final grade).
Participation must be reflected in the final post so grades will be affected
by the content portion of the post if participation is not shown. Therefore,
it is important to get in the class often and with the idea of improving your
initial post with the discussion so that the final grade will be the best you
can deliver.
Additional Requirements and How to Prepare the Weekly Attachment Submission
• Follow the instructions carefully if the assignment asks for a memo, email, plan,
report, etc. be sure to follow the format templates provided.
o Submissions should be in proper business writing form.
• APA formatting with in-text citations and a reference list is required.
• Review the grading rubric for the assignment.
• Carefully read all of the instructions to make sure all elements of the assignment
have been covered.
• Third-person writing is required. Third person means that there are no words
such as I, me, my, we, or us (first-person writing), nor is there use of you or
your (second-person writing). If uncertain how to write in the third person,
view this link.
• Contractions are not used in business writing, so the expectation is that students
do not use contractions in assignments.
• Paraphrase and do not use direct quotes. This means you do not use more than
four consecutive words from a source document; put a passage from a source
https://www.quickanddirtytips.com/education/grammar/first-second-and-third-person
document into your own words and attribute the passage to the source
document. Provide the page or paragraph number. Note that a reference within a
reference list cannot exist without an associated in-text citation and vice versa.
• Do not use books as source material.
• Use a variety as well as multiple course readings and research to support ideas,
reasoning, and conclusions.
• Submit the final project into the appropriate assignment submission folder. Once
submitted, the project is eligible for grading and students will not be permitted to
make changes or make another submission.
NOTE: All submitted work is to be your original work. You may not use any work from
another student, the Internet or an online clearinghouse. You are expected to
understand the Academic Dishonesty and Plagiarism Policy and know that it is your
responsibility to learn about instructor and general academic expectations with regard
to proper citation of sources as specified in the APA Publication Manual, 7th Ed.
(Students are held accountable for in-text citations and an associated reference list
only).
Week 1 Brainstorming Discussions
Grading Rubric - Brainstorming Discussions
Criteria Excellent Good Developing Needs Improvement Failing
Point Value 0.5 0.42 0.37 0.32 0
Participation
Content:
Initial Post
and
additional
initial posts
addresses
the
assignment
for the
week.
Initial Post
demonstrates
application of
the week’s
material to the
assignment by
presenting
comprehensive
answers to all
subjects.
Accurate APA
usage of
multiple sources
and supporting
conclusions are
insightful.
(0.45 - 0.50)
Initial Post
demonstrates
application of
the week’s
material to the
assignment with
complete
answers to most
subjects.
Accurate APA
use of at least
three sources
supporting
strong
conclusions.
(0.40 - 0.44)
Does required
work identified
in Good
criterion,
but does
not post by the
due date,
and/or support
for some content
is
underdeveloped.
Uses less than
three sources.
APA has minor
errors. Conclusi
ons drawn are
broad and
therefore
general in
nature.
(0.35 - 0.39)
Completes some
required work
identified in the
Good criteria,
but does not post
by the due date,
content
shows minimal
development of
the material.
Sources are not
used to support
statements or
major errors in
APA are present.
(0.30 - 0.34)
Posts no
assignment or
makes minimal
attempt at
posts.
(0 - 0.29)
Point Value 1.5 1.27 1.02 0.97 0
Participatio
n Content:
Follow-up
Postings
address
classmates
over three
or more
days during
the week
Follow-up
Postings three
days or more,
address a
classmate’s work
by exchanging
innovative ideas
that build upon
the concepts for
the week. Posts
are insightful
and analyze the
responses of
others to include
support from the
course material.
(1.35 - 1.5)
Postings made
at least three
days; most
posts address a
classmate’s
work by
exchanging
innovative ideas
that build upon
the concepts for
the week. Most
but not all posts
analyze the
responses of
others or lack
some support
from the course
material.
(1.20 - 1.34)
Does required
work identified
in Good criteria,
but answers
only two days
and/or support
for some content
is
underdeveloped.
Analysis of
classmates’
posts while
adequate, does
not contribute
with enough
support from the
course material.
(1.05 - 1.19)
Completes some
required work
identified in the
Good criteria,
but posts only
one day, content
shows minimal
development of
the material.
Analysis of
classmates’ posts
does not provide
support from the
course material
(0.90 - 1.04)
Posts no
assignment or
makes minimal
attempt at
posts.
(0 - 0.89)
Points 0.5 0.42 0.37 0.32 0
Presentatio
n
Contributes to
discussion with
clear and concise
comments that is
style appropriate,
rich in
vocabulary and
free of
grammatical &
spelling errors.
(0.45 - 0.50)
Contributes to
discussion with
understandable
comments but
style and
vocabulary is at
time
inconsistent or
imprecise,
and/or has
minor writing
errors.
(0.40 - 0.44)
Contributes to
discussion with
errors in clarity,
style,
vocabulary
selection, and/or
many writing
errors.
(0.35 - 0.39)
No evidence
of proofreading
or attempt at
applying
conventional wri
ting mechanics,
style or
vocabulary.
(0.30 - 0.34)
Little to no use
of the usual
writing
mechanics.
(0 - 0.29)
Final Post Excellent Good Developing Needs Improvement Failing
Points 2.5 2.12 1.81 1.52 0
Content:
All
Assignmen
t elements
found in
the
instructions
are
addressed
using the
class
material,
case study
facts,
research
and
brainstormi
ng ideas
gathered
from the
class
discussions
Final Post
addresses all the
elements of the
instructions with
a highly
accomplished
level of analysis,
synthesis,
evaluation and
reasoning skills
of the case
material, case
study facts,
research, and
class discussions
resulting in
accurate,
insightful,
thorough, and
soundly
reasoned
conclusions.
(2.25 - 2.5)
Post addresses
all elements of
the assignment,
demonstrating
an above
average
competency of
analysis,
synthesis,
evaluation and
reasoning skills.
The use of case
material, case
study facts and
class
discussions
resulted in
accurately
reasoned
conclusions but
underdeveloped
in 1-2 elements.
(2.0 - 2.24)
Post addresses
most elements.
Comments
reflect a
satisfactory
level of analysis,
synthesis,
evaluation and
reasoning of the
case material,
case study facts
and class
discussion
resulting in
partially correct
conclusions that
lack
development or
detail that into
an
understanding of
the reasoning
(1.75 - 1.99)
Post fails to
address all
elements of the
assignment and
or presents an
unsatisfactory
level of analysis,
synthesis,
evaluation and
reasoning of the
case material,
case study facts,
class discussion
resulting in
conclusions that
are
underdeveloped
or lack soundly
reasoned
conclusions.
(1.5 - 1.74)
Post addresses
little to none of
the elements in
the
assignment,
conclusions
drawn showed
poor analysis,
synthesis,
evaluation and
reasoning of
the case
material, case
study facts,
class
discussion
resulting in
conclusions
that are
underdevelope
d or lack
soundly
reasoned
conclusions.
OR
No content
was addressed.
(0 - 1.49)
Points 2.5 2.12 1.81 1.52 0
Applicatio
n of
Concepts
Presents
exceptionally we
ll-supported
arguments or
positions with
evidence from
the
readings/experie
nce; ideas go
beyond the
course material
case study
facts and class
discussion
recognize
implications and
extensions of the
material and
concepts.
Consensus
points from
class brainstormi
ng were evident.
(2.25 - 2.5)
Presents
excellent
arguments or
positions that
are mostly
supported by
evidence from
the readings and
course content
and class
discussion, case
study facts;
ideas presented
demonstrate
understanding
of the material
and concepts.
Consensus
points from
class brainstorm
ing were mostly
evident.
(2.0 - 2.24)
Satisfactory
arguments or
positions are
presented but
there is a mix of
opinion or
unclear view
with supported
arguments using
course readings
and class
discussion. Cas
e study facts are
occasionally
used but
arguments
would be much
stronger with
use of facts or
points obtained
through class
consensus.
(1.75 - 1.99)
Arguments are
frequently
illogical and
unsubstantiated;
Limited use of
facts in case
study and
essential
information
presented
in course
readings. No use
of class
brainstorming
conclusions
(1.5 - 1.74)
Arguments
lack
meaningful
explanation or
support of
ideas. Does
not provide
facts presented
in case study.
(0 - 1.49)
Points 1 0.85 0.75 0.65 0
Attention
to
Instruction
s
Demonstrates
exceptional
understanding of
requirements
responding
completely to
each aspect of
assignment
including minor
aspects of the
assignment such
as using third
person writing,
required use of
course readings,
and assignment
format.
(0.9 - 1.0)
Demonstrates
excellent
understanding
of
requirements;
missed one
minor aspect of
assignment
(0.80 - 0.89)
Demonstrates
satisfactory
understanding of
requirements;
missed a key
element or two
minor aspects of
assignment.
(0.70 - 0.79)
Fails to show a
firm
understanding of
requirements;
missed two key
elements or
several minor
aspects of
assignment.
(0.60 - 0.69)
Fails to show a
firm
understanding
of
requirements;
missed two
key elements
or several
minor aspects
of assignment.
(0 - 0.59)
Points 1 0.85 0.75 0.65 0
Writing
Mechanics
Strictly adheres
to standard usage
rules of written
English,
including but not
limited to
capitalization,
punctuation, run-
on sentences,
missing or extra
words, stylistic
errors, spelling
and grammatical
errors. No errors
found. No
contractions or
jargon used
(0.9 - 1.0)
Excellently
adheres to
standard usage
of mechanics:
conventions of
written English,
including
capitalization,
punctuation,
and spelling.
One to three
errors found.
(0.80 - 0.89)
Satisfactorily
adheres to
standard usage
rules of
mechanics:
conventions of
English,
including
capitalization,
punctuation, and
spelling. Four to
10 errors found.
(0.70 - 0.79)
Minimally
adheres to
standard usage
rules of
mechanics:
conventions of
written English,
including
capitalization,
punctuation, and
spelling. More
than 10 errors
found.
(0.60 - 0.69)
Does not
adhere to
standard usage
rules of
mechanics:
conventions of
written English
largely
incomprehensi
ble; or errors
are too
plentiful to
count.
(0 - 0.59)
Points 0.5 0.42 0.37 0.32 0
APA No APA style or
usage errors;
Proper citation
of source
material is used
throughout
paper; Reference
titles follow
APA with only
the first word,
the first word
after a colon and
proper nouns
capitalized.
(0.45 - 0.50)
Attempts in-text
citations and
reference list
but one or two
APA style
errors noted or
fails to use
APA citations
when
appropriate 1-2
times.
(0.40 - 0.44)
Attempts in-text
citations and
reference lists;
APA style errors
are noted
throughout
document; Fails
to use APA
citations when
appropriate 3
times in
document.
(0.35 - 0.39)
Attempts in-text
citations and
reference lists;
Fails to use APA
citation when
appropriate 4-5
times; or
presents only 1-2
in-text citations
and reference list
in a paper that
requires APA
citations
throughout the
document.
(0.30 - 0.34)
No attempt at
APA style; or
attempts either
in-text
citations or
reference list
but omits the
other.
(0 - 0.29)
Overall
Score
Excellent Good Developing Needs
Improvement
Failing
Points 9 or more 8 or more 7 or more 6 or more 0 or more
Weekly Brainstorming Projects
Easy Chairs Training Program
The Leaders of Easy Chairs (EC), Dwight Rickenbacker and Ike Omar, have decided that they want to
customize their management training program to fit the company both stateside, abroad and online.
They have tasked your group, BMGT 485 Class Consulting Firm, to create a program that features
the top ten skills they believe an Easy Chairs manager should possess in a contemporary business
arena. Rickenbacker and Omar are confident that if their managers have these skills the company will
profit immensely.
Dwight, who is guiding this project, has given you a course outline, the list of skills, and course
material he believes will enhance the managerial candidates in their training. He has also given you
some of the most common examples of the skill in action so that he can see those candidates that
apply the skill well and those who need improvement. He wants your firm to develop the best
answers to these scenarios and present them to him for evaluation. This way he can determine if
the candidates are a good fit for EC and where he can help them to improve going forward.
Dwight envisions the program class to work as follows:
Each week the firm will be given a small project, case study or activity to complete that relates to
one of the skills he deems important to company success.
The firm, and you as a member, will brainstorm the activity answer discussing as a team the best
way the manager can employ the skill to complete the activity.
By 11:59 on Tuesday ET of each week, you will each submit a final post with an attachment that
summarizes the best answer you have concluded from your evaluation of the team discussion
and the course material provided by Dwight.
In addition to the skill activities, the firm has created two quizzes for additional individual
assessments. The team leader of the firm has decided that the firms best use of time would be
for him/her to create the quizzes for you to take. (As a plus this will also help the team leader to
know BMGT485 staff’s managerial skill set better.)
Quiz 1 is taken in Week 2 - Communication Quiz
Quiz 2 is taken in Week 4 - SWOT Quiz
To help the firm better Dwight has supplied a corporate history of Easy Chairs.
Company History
Dwight Rickenbacker and Ike Omar were two American Army Veterans who wanted to make a
difference for their fellow wounded veterans. They decided that they wanted to make semi-
customized wheelchairs. After researching the idea, the two vets agreed that they were going to do
something unique with the wheelchairs. Dwight and Ike decided to make the wheelchairs with 3-D
printing with easily replaceable parts so repairs could be done by someone with basic mechanical
skills. They also agreed that they would only hire veterans as employees.
Dwight and Ike started their business, ECs five years ago in Birmingham, Alabama. Since then, the
business has grown exponentially. Last year gross sales were over $7 million and was projected that
the business will reach $9 million by the end of next year.
A significant part of Easy Chairs success has been through Internet sales. The company website is
geared to the American market. The average cost of a non-motorized chair is $59.00, half of the cost
of a simple product found at Walmart. The battery-operated models average between $500 and $600,
almost a quarter of the traditionally produced models. Prices for parts for the chairs are varied but the
most expensive part is the battery for the mobile units, which is priced at one-fifteenth the price of an
average battery. The company can customize colors, add oxygen container carriers and other features
that improve the wheelchair-bound person’s life for minimal cost because their computer program
allows the chair to be designed to each person’s specifications before manufacturing. Last
year, Rickenbacker decided to sell their products overseas both via the internet and through
licensed distributors. Currently, they have agreements with distributors in Japan and South
Korea. They hope to expand more abroad and are considering adding manufacturing
operations abroad as well.
risk.03.jpg
FORTUNE Magazine
Managing in chaos
The great challenge of our era? Get companies to change quickly enough to survive a world thats
crazier and riskier than ever.
By Geoffrey Colvin, Fortune senior editor-at-large
September 19 2006: 9:25 AM EDT
(Fortune Magazine) -- Bill Ford finally joined the club just before Labor Day weekend. Thats when he
became the latest chief executive of a giant corporation to cop publicly to the most fundamental and
alarming of business problems: His business model doesnt work anymore.
He did it in an e-mail to all of Ford Motors employees, saying, The business model that sustained us
for decades is no longer sufficient to sustain profitability. Give him high marks for candor, because in
corporate life, desperation doesnt get much more naked than that. The chief of one of the worlds
most storied companies, No. 5 on the Fortune 500, is telling the world that the firms way of doing
business doesnt make money, and he doesnt even know what the new way of doing business should
be.
And hes not alone. Fords lament is the signature cry of our age.
Across sectors--retailing, brokerage, software, publishing, computers--
business models that produced profits for decades have shut down. In
most cases managers arent sure what the new model will be, but
theyre absolutely certain it wont have a multidecade lifespan.
The trend seems to be accelerating. Besides Fords (Charts) admission
recent weeks saw Viacom (Charts) chief Sumner Redstone abruptly fire
CEO Tom Freston, complaining that he hadnt done enough to build a
new Net-based business model. Intel (Charts) one of the worlds great
adapters, announced it was firing 10,500 people. Even Dell (Charts) is
having trouble with its formidable direct-selling model, one of the
most successful of the past 20 years.
How often does a model have to change in todays world? Until
recently, very few companies have had to change ... every three to four
years, but now many of them do, says Adrian Slywotzky of Mercer
Management Consulting, co-author of business bestsellers The Profit
Zone and How to Grow When Markets Dont. Every eight to ten years--
thats heaven today.
Greater risk
From inside a company, todays world is a maelstrom of changing
markets, technologies, customers, and products that are whirling so
fast they just cant be ordered in a managers mind. Look at Standard &
Poors ratings of equity risks, which range from A+ for the least risky
companies to D for bankrupt ones. In 1985 about 41\% of companies
earned the least risky ratings, while 35\% were in the high-risk
grouping. By 2006 only 13\% were highly rated, and 73\% were high-risk.
Thats what economists call a secular shift--a big, broad increase in
uncertainty and volatility.
https://archive.fortune.com/magazines/fortune
mailto:[email protected]
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Rethink Your Business
Business models live shorter
lives these days, but there
are ways to get comfortable
with chaos. A sampler:
Tough talk
Force a conversation on how
the company will have to
operate differently to be
successful two years from
now. Otherwise everyone
dwells on todays successful
products.
Yellow flags
Pay close attention to what
your sharpest, most mobile
customers are doing. Theyre
your early warning of
business-model problems.
Remodel early
high_wire_act.gifThe pressure on CEOs and boards is palpable--and executive turnover
is on the rise. When Jim McNerny moved over to run Boeing (Charts)
last year, the previous firm he ran, 3M (Charts), had to scramble for a
replacement; new Ford CEO Alan Mulally departed from Boeings
largest business, returning the favor. Frestons firing has sparked
rumors about Brad Greys future at Viacom subsidiary Paramount.
From Heinz, where investor Nelson Peltz is rattling cages, to Big
Pharma, where Merck, Pfizer, and most recently Bristol Myers Squibb
have seen a changing of the guard, to Dell, where CEO Kevin Rollins is
feeling the heat from recent troubles, no one, it seems, is immune.
Managing amid the chaos has become the central problem for
companies of every kind. It is a predicament that arises from the very
nature of todays economy. And the solution requires a retraining not of
skills but of mindset and assumptions. The biggest challenge has less
to do with corporate strategy or management structures than with the
nature of human beings and our instinctive reactions to change.
Rocking the foundation
Firms that have found ways to survive and thrive in the chaos hold
valuable lessons. Paradoxically, many are meeting chaos with chaos,
loosening controls, sometimes radically, while guiding the company in
innovative ways. Yet even those efforts may lose their effectiveness
over time. Todays fast-moving reality may force a rethinking of just
how long companies can and should survive.
Skeptical about how large a change were experiencing? Is the
business world truly rocking on its foundations? The hard fact: We are
going through a transition that will interest historians centuries from
now. Its partly a result of globalization, partly the digital revolution
and the information-based economy it spawns.
By freeing companies from physical assets, it has made them both
more flexible and more vulnerable to competitors. Microsoft can get
into and out of many businesses--Internet search, online advertising,
mapping, electronic payment--at virtually a moments notice, but so
can anybody else. (Indeed, Microsoft itself is now being disrupted by
Net-based competitors like Yahoo and Google.)
The pattern is old hat by now, yet we still see companies of every kind
totally blind-sided by competitors they never saw coming. eBay and its
PayPal unit are disrupting credit cards; Google is now trying to disrupt
PayPal as well as the whole ad-sales industry. YouTube is disrupting
television, and MySpace may next disrupt music, though if youre
reading this online in 2008 youre probably laughing, because someone
else has undoubtedly disrupted YouTube and MySpace, those Net
phenoms of yore.
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Start changing your
business model when youre
most successful. When
youre in trouble, its too late.
Abandon yesterday
Maintaining what no longer
works draws your most
valuable resources away
from your No. 1 job, creating
tomorrow.
A new, improved story line
Explain the companys
changes within a larger
context. Employees,
investors, customers, and
suppliers are more
comfortable with change
when its presented as part
of a story line.
The digital revolution also makes business more chaotic by shifting
information and power toward customers. And it changes products in
every industry, new or old. Todays cars are essentially computers on
wheels. Some credit cards have chips in them. Some greeting cards
have chips in them. Guess what some duck calls have in them? Now,
what did the makers of any of those things know about computer
chips? Nothing, yet their industries may be transformed by them, and
more industries will be transformed every day as the costs of
computing power, telecommunications, and data storage continue to
plunge.
So the forecast for most companies is continued chaos with a chance
of disaster. The challenge is getting comfortable with it--especially
hard because modern corporations were created explicitly to resist
chaos. The idea was to create structure and rules to resist the forces
buffeting the business, says David Nadler, a Mercer Delta consultant
with long experience counseling organizations on change. It was
great for an era when companies might change every 30 years or
more. But what used to be an asset is now a liability.
Recipe for internal war
Companies that prosper in this frightening environment do so in many ways. Some managers figure
a radically changed business world calls for a radically restructured company. The most extreme
example of meeting chaos with chaos is probably Semco, the celebrated Brazilian outfit where there
are virtually no job titles, a few executives trade the CEO role every six months, and workers set their
own hours and choose their managers by vote.
Maybe your firm cant do all those things (though it might be useful to ask yourself, Why exactly
not?), but decentralization and an anti-control ethos seem to characterize a growing number of
successful businesses. No one at W.L. Gore has a job title, to take an example from Fortunes latest list
of Americas 100 Best Companies to Work For. Another:
Any employee of Whole Foods Market can look up anyone elses salary, which sounds like a recipe for
internal war. Conventional wisdom says such policies will massively distract an organization, yet in
a fast-changing world they seem to have the opposite effect.
Former Royal Dutch Shell exec Arie de Geus studied the worlds longest-lived companies and
concluded that surviving was all about letting things happen in the margin: allowing activities
outside the core business to be set up by not coming down like a ton of bricks on every diversion in
which local people seem to believe fervently.
Starting up a company with this mentality--which is the way W.L. Gore and Whole Foods began--is a
lot simpler than injecting it into an existing enterprise. Consultant David Nadler recalls working with
AT&T back when it first began to realize the challenges it faced in a deregulated digital world.
Executives told me they wanted their people to be entrepreneurs and risk takers, he says. I told
them, Guess what? People like that dont go to work for the phone company. His conclusion: AT&T
should have started changing its DNA years earlier.
Gene therapy
Which brings us to the central issue. Companies arent really structures or machines or collections of
assets. Theyre groups of people. And while business seems to change at the speed of light, humans
in groups havent changed much in 10,000 years.
The most intractable problems of managing in chaos arent those of structuring the organization or
identifying the right model for the future. They are the utterly human problems of getting people in
groups to behave in new ways. Some of the reasons are familiar. All change creates winners and
losers in an organization, and the caveman part of our brains is still wired to defend against loss
above all. So people almost always resist change.
An even more profound problem in companies that make changes: saying goodbye. The late Peter
Drucker identified the key management challenge of the 21st century as leading change, and he
believed the most important policy for doing that was to abandon yesterday. By yesterday he meant
whatever no longer works.
Yet abandoning yesterday is excruciatingly difficult. Yesterday is comfortable, and the fact that it
used to work inspires hope that it will again. By contrast, trying anything new will always produce
problems. So companies nurture yesterday far too long.
Whats especially insidious, Drucker observed, is that maintaining yesterday is difficult and time-
consuming and therefore always commits the institutions scarcest and most valuable resources--
and above all, its ablest people--to nonresults. Which means theyre not available to create tomorrow.
Yet it isnt hopeless; companies can manage this critical job. One of the greatest examples is still
Intels brave decision long ago to bail out of dynamic random access memory, the product on which it
built its early success. More recently, Thomson Financial abandoned newspapers, which had once
made it successful, reasoning that newspapers were the past in the Digital Age.
Against that background, its impossible to avoid an upsetting thought: companies will start dying
younger. Look at the firms that just disappeared: the old AT&T, Gillette, May Department Stores, all
absorbed into other firms. If technologies, products, jobs, and business models are all appearing and
disappearing faster than ever, how could companies be any different?
Weve fully accepted the idea that most jobs dont last long, though that was a traumatic notion 20
years ago. Its time to face a similar reality about companies. In a world where business models
change every three or four years, maybe its foolish to think a company should survive for a century.
Perhaps many industries will conduct themselves on the Hollywood model: the right mix of people
come together for a few months or a few years and move on. The world of private-equity companies
works on this basis today.
The idea that our great business institutions may live shorter lives neednt be troubling. With change
happening more quickly, businesses that arise and disappear more quickly than they used to could
be the best means of serving customers, investors, and employees. If were in a truly revolutionary
business age, it would be crazy to think that more radical change isnt coming. The challenge: finding
the will to embrace it.
Fords new model: Does CEO Mulally have a prayer?
T
From the October 2, 2006 issue
https://archive.fortune.com/2006/09/18/magazines/fortune/fords_newmodel.fortune/index.htm
https://archive.fortune.com/magazines/fortune/fortune_archive/2006/10/02/toc.html
October 21, 2013
The Difference
Between Influence
and Leadership
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Entire industries have developed around the
exertion of influence.
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The lobbying industry tries to influence the
government. Advertisers persuade consumers to
spend their money on certain products or
services. Politicians employ nationwide
telemarketing campaigns to sway last-minute
voters. Parents attend seminars aimed at
influencing the way they influence their children.
Business analysts do market research and hire
focus groups to study what is influencing the
customer. Doctoral students examine the hidden
factors behind change in education, sociology,
history, and many other fields.
It’s all influence.
Dictionary definitions of influence include “a
power indirectly or intangibly affecting a person
or course of events,” and the more vague “to
cause a change in the character, thought, or
action of; to have an effect upon.” I also ran across
this one—“an occult ethereal fluid believed to
flow from the stars and to affect the fate of men.”
I like that last one—influence is someone
affecting us and we’re not exactly sure how.
Let me define it another way, though. Influence is
a person’s ability to shape people and mold
outcomes.
Influence is morally neutral (can be used for good
or evil), but it always involves both relationships
and results.
Difference Between Leadership and Influence
So is influence just a fancy term for leadership?
No. We often put the two together, but they are
two separate entities.
Sure, you have the Abraham Lincolns of the world
who are influential leaders. But for every
Abraham Lincoln, you have a Vincent van Gogh,
Franz Schubert, and Karl Marx—people of
massive influence who had no leadership position
and even died in obscurity.
Summary: You can influence without being a
leader, and you can lead without influencing, but
you can’t be a good leader without influencing.
Leadership comes from a title whereas influence
does not depend on education, position, or
financial situation.
Here are some other distinctions between the
two:
Leadership is visible; influence is out of sight
Leadership is usually conscious; influence is
often unconscious
Leadership is contained; influence crosses
boundaries
Leadership is immediate; influence is long-
term
Leadership is public; influence is often behind
the scenes
Leadership is formulaic; influence is
mysterious
Leadership captivates culture; influence
drives culture
Leadership is the tip of the iceberg; influence
is the mass under the surface
Leaders act on people; influence affects
people and outcomes
Harvard Business Review spotlighted influence and
leadership this summer. In “Connect, Then
Lead,” Amy Cuddy and two others identify the
importance of influence over leadership.
Leadership rises from authority, but influence is
born of connection. If people feel connected, they
open themselves up to the influence of others.
http://hbr.org/2013/07/connect-then-lead/
To influence, you begin with connection. You
connect with people and begin to affect their
actions.
Conclusion
I draw a dotted line between leadership and
influence because there is a lot of overlap
between these two words. More and more people
are recognizing that leaders can wield
tremendous influence but that it is only potential.
The best leaders strive not for leadership (which
is given to them) but for influence (which is
earned).
Ken Blanchard wrote, “The key to successful
leadership today is influence, not authority.”
Michael Hyatt says, “Aspiring leaders would do
well to stop focusing on control and figure out
how to expand their influence.” John Maxwell
puts it plainly— “Leadership is influence.”
In this article, Joseph Grenny describes ways
four keys to influential leadership. I love what he
says about Tim Tassopoulos, the SVP of
Operations of Chick-fil-A.
“Tim…understands that success comes down to
whether one of his 50,000 front-line associates
with a few discretionary minutes decides to lean
against a wall or clean tables. Tim’s success or
failure as a leader does not come down to
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whether he is charismatic, visionary, or
inspirational but to whether people behave in
ways that improve results. Period.”
Influence is about people and results.
Let me put it this way: Leadership and influence
are both needed, but influence is bigger, deeper,
and a more difficult skill to cultivate than
stereotypical leadership. And if I had to choose
between whether I could exert leadership or
influence, I’d pick influence every time.
Share With Friends
October 21, 2013 Steve Graves Leadership Development
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© 2018 | Steve Graves
Leadership
Successful Organizations Need
Leaders At All Levels
Mar 23, 2014, 04:48pm EDT
Roger Trapp Contributor
Anybody who has ever watched interviews with managers or coaches of
professional sports teams will have heard plenty of discussion of the need
for leaders throughout the team. The same thinking is also increasingly a
preoccupation of business people. Indeed, the need for “leaders at all levels”
is one of the 12 critical issues identified in the Global Human Capital Trends
2014 survey published earlier this month by Deloitte University Press, the
publishing arm of the professional services firm’s leadership center.
In a paper examining the findings, Adam Canwell, Vishalli Dongrie, Neil
Neveras and Heather Stockton – who work for Deloitte in a range of
locations – point out that leadership “remains the No. 1 talent issue facing
organizations around the world,” with 86\% of respondents to the survey
rating it “urgent” or “important.” However, the fact that only 13\% say they
do an excellent job of developing leaders at all levels means that this area
has the largest “readiness gap” in the survey.
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Finding good leaders has, of course, always been a crucial issue for all sorts
of organizations. This is why the armed forces, for instance, put so much
effort into training their officers and why business schools and other
providers of executive development have thrived. But the Deloitte team
argues that “21 -century leadership is different”. Canwell and his colleagues
write: “Companies face new leadership challenges, including developing
Millenials and multiple generations of leaders, meeting the demand for
leaders with global fluency and flexibility, building the ability to innovate
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and inspire others to perform, and acquiring new levels of understanding of
rapidly changing technologies and new disciplines and fields.” No wonder
organizations are coming up short.
Almost inevitably, the problem is felt to be especially acute today. This is a
result of the strengthening of the global recovery, the desire on the part of
the companies to expand in new markets and the growing numbers of older
leaders choosing to retire.
A key part of the solution identified by the Deloitte team is for organizations
to develop leadership pipelines at every level. At present, it says, companies
are not only not developing enough leaders, they are also not equipping
those they are creating with the critical capabilities and skills they need to
succeed. “Today’s market environment places a premium on speed,
flexibility and the ability to lead in uncertain situations. At the same time,
the flattening of organizations has created an explosion in demand for
leadership skills at every level.”
It appears that there is no avoiding spending money when it comes to
dealing with this situation. The best performing companies already spend
thousands of dollars each year developing each would-be leader on their
staff, with the figure for senior leaders in the tens of thousands of dollars.
Creating strong leadership programs for leaders at all levels – as advocated
– requires sustained and substantial investment. At the early stages in the
leadership pipeline, potential leaders need to acquire core skills in
supervision and management, with frequent assignments to build on this
base. Later on, they need to understand all the business functions before
becoming executives, when business and product strategy will be central,
along with experience of driving change within large teams. Companies need
to understand that there are no shortcuts to building broad and deep
leadership teams. New leaders typically need 18 months before feeling fully
comfortable in a new role, while for those in the mid-level the period is more
likely to be two to three years.
The paper also calls for companies to be more flexible in terms of leadership
paths. Some leaders will move into senior roles relatively quickly because of
a particular situation, while others will develop more slowly.
Above all, though, organizations need to realize that developing leaders
amounts to more than having a selection of training programs. “Senior
executives should create a culture that broadens the opportunity for leaders
to develop in new ways,” writes the Deloitte team. “This means putting
potential leaders in positions that stretch them beyond their current skill
sets, and continuously coaching and supporting leaders so they can build
their capabilities as rapidly as possible.” This is increasingly well recognised,
say the authors, but it is “simply not widely adopted and practiced”.
Where should companies begin? A few starting points include:
But there is no time to delay. The best-performing organizations are already
on their way.
Also on Forbes:
Engaging top executives to develop leadership strategy and actively
govern leadership development.
Aligning leadership strategies and development with evolving
business goals
Focusing on three aspects of developing leaders – developing leaders
at all levels, developing global leaders locally and developing a
succession mindset
Implementing an effective – and unique – leadership program.
Gallery: What It Takes To
Retain Your Top Talent
11 images
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dating back to the days before newsroom computers I have covered everything from…
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Leadership Strategy
I write about leadership and organizational excellence.
The Future Of Leadership And
Management In The 21st-
Century Organization
Mar 27, 2017, 06:46pm EDT
Brent Gleeson Contributor
TWEET THIS
The leadership and management needs of todays successful companies
have changed. Heres why.
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The leadership and management needs of todays successful companies have
changed. Heres why.
In slower moving and less complex business environments the old
hierarchical model that depended mostly on only a few people at the top for
leadership simply doesnt work anymore. In todays more volatile, uncertain
and ambiguous business battlefield, decentralized controls and leadership
through networks of people at all levels is imperative for success.
One person — or a few people — simply dont have the time or resources to
sift through mounds of data about their company performance, industry,
economic environment or competitors. Nor do they have the time to
disseminate the right data to the right people in real time. Organizations
move too quickly for that model to be effective.
Watch on Forbes:
In a recent article, I wrote about the fundamental difference between
leadership and management as it relates to todays organizations facing the
need for significant change. So what does leadership and management look
like in the successful, growing and innovative 21st century organization?
One easy correlation I can draw is from experiencing the leaner structures
we had in the Navy SEAL teams. When you think military, most would
picture an extremely bureaucratic command and control environment,
which of course does still exist in todays armed forces. In some cases its
absolutely necessary. But in special operations, the pace at which we must
move, learn and even change moves far too quickly for a traditional
hierarchy.
The Naval Special Warfare community, where regular military rank of
course exists, is still a much flatter organization. Senior leaders do the
leading, while most of the important managerial tasks are delegated to the
lower ranks. Junior team members are empowered with great deals of
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responsibility and the autonomy to make decisions. Is it always perfect? Of
course not. But with a culture founded on trust and extreme levels of
accountability, this teamwork mechanism works very well.
The same applies to todays business organizations. Especially in highly
competitive environments. My previous company was a digital marketing
agency. As the company grew rapidly, the industry continued to change due
to technological advancements and the competitive landscape broadened,
we knew our structures would have to evolve as well.
In some of the most successful start-ups and even large organizations that
have evolved, you can visibly see greater levels of delegation and decision
making at all levels. Leaders focus on guiding and communicating the
vision, leading large client projects and finding new ways to develop their
staff. Managers are taking on more leadership responsibilities and pass
increasing amounts of responsibility to junior employees.
So what does this mean for leadership and management development?
Management is more easily taught and learned in my opinion — planning,
budgeting, staffing, quality control, processes, systems, etc. Leadership is a
different beast and very few companies are designed for powerful leadership
development. Their structures arent designed for it, they dont invest in it or
dont see the need to prioritize it. Or all of the above. But if anything I have
mentioned in this article is valid, then how can todays fast-paced
organizations not find better ways to develop their leaders.
Most of us spend the majority of the time we are awake working. Unless of
course you are retired or have actually found a way to be successful working
four hours a week. Personally, I would go nuts. So for the rest of us normal
people, we spend most of our time working - and in large part in some sort
of office environment. Which means that the time we have available to
develop as managers and leaders is limited. Why? Because we are extremely
busy and usually not being measured on some elusive performance metric
related to how well we lead.
So that means that if companies really want to move more quickly, have a
flatter structure and develop emerging leaders from within, a significant
amount of time must be spent teaching team members how to lead.
Unfortunately, just having someone come in a do a keynote presentation on
leadership at the annual sales kick-off meeting isnt sufficient enough to
immediately create an army of leaders who can effectively develop,
communicate and execute a powerful vision — especially a vision for leading
new changes. Nor is a two-day workshop. While these types of investments
are important and should be made, the organizational structure and culture
has to be one that empowers leaders. One that encourages people to take
charge, attempt to lead, make mistakes and constantly learn.
Many newer companies and start-ups arent burdened by the old ways of
thinking and operating like organizations founded fifty years ago. That said,
many companies that have been around a long time have seen the light and
are leading major transformations that improve culture, performance and
leadership structure. The big ego bosses and dictators with an underserved
sense of self-worth are finding it harder to exist in these new environments.
A few 360-degree reviews and peer evaluations can fix that really quickly.
The younger generations in the workplace today arent afraid to share
their opinion. Especially when its anonymous. Trust me!
And frankly, leaders and managers with that mindset arent good for any
organization. During SEAL training, peer reviews are a weekly event. We
have a process called top five, bottom five. Every week you anonymously
rank the top five performers in the class as well as the bottom five. Much of
the time, those landing in the bottom five are star performers — from a
tactical or physical standpoint. But they have character or ego problems.
These classmates are organically purged. This system roots those issues out
before a student ever gets close to graduating. Its one of the many ways we
protect our culture.
Nothing I have seen points to the fact that organizations will revert back to
the old way of doing things — larger than life CEOs who single-handedly
make a company great, thick layers of overpaid middle management, over-
managed and under-led departments, and structures not designed to
develop leaders.
Systems and cultures designed to develop new leaders and truly empower
them is the key to success in any 21st century organization. The upside is
almost endless. More people leading at a lower payroll cost. More people
who feel connected to their work that are inspired by those around them.
More senior leaders actually getting to focus on visionary leadership rather
than management. Easier succession planning because you dont have to
spend months looking for one Superwoman who can allegedly do-it-all.
The list goes on and on.
Does this easily apply to all organizations? Maybe not. But it does to any
company I would want to build or work for.
Check out my website.
Brent Gleeson Follow
Gleeson is the founder and CEO of TakingPoint Leadership, former Navy SEAL, globally
recognized speaker, award-winning entrepreneur and the bestselling author of…
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International Business Management
i
About the Tutorial
International Business is a subject that teaches how to nurture a local business and make
it global. It explains the business practices and strategies required to succeed in
international markets.
In this tutorial, it has been our endeavor to cover the multidimensional aspects of
International Business in an easy-to-understand manner.
Audience
This tutorial is specially designed for the students of Management, Commerce, Human
Resources, Marketing, and Business Law.
Prerequisites
To understand this tutorial, it is advisable to have a foundation level knowledge of business
and management studies. However, general students who wish to get a brief overview
International business may find it quite useful.
Copyright & Disclaimer
© Copyright 2019 by Tutorials Point (I) Pvt. Ltd.
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Pvt. Ltd. The user of this e-book is prohibited to reuse, retain, copy, distribute or republish
any contents or a part of contents of this e-book in any manner without written consent
of the publisher.
We strive to update the contents of our website and tutorials as timely and as precisely as
possible, however, the contents may contain inaccuracies or errors. Tutorials Point (I) Pvt.
Ltd. provides no guarantee regarding the accuracy, timeliness or completeness of our
website or its contents including this tutorial. If you discover any errors on our website or
in this tutorial, please notify us at [email protected]
International Business Management
ii
Table of Contents
About the Tutorial ...................................................................................................................................... i
Audience .................................................................................................................................................... i
Prerequisites .............................................................................................................................................. i
Copyright & Disclaimer ............................................................................................................................... i
Table of Contents ...................................................................................................................................... ii
PART 1: THE INTERNATIONAL BUSINESS ECOSPHERE ............................................................... 1
1. IB – Introduction ....................................................................................................................................... 2
A Global Village ......................................................................................................................................... 2
What is International Business? ................................................................................................................. 2
Internationalization of Business ................................................................................................................. 3
Advantages of Internationalization ............................................................................................................ 3
Globalization ............................................................................................................................................. 4
Factors Causing Globalization of Businesses ............................................................................................... 4
2. IB – Country Attractiveness ....................................................................................................................... 6
Adapting to Changing Needs ...................................................................................................................... 6
Country Attractiveness .............................................................................................................................. 7
Business Environments .............................................................................................................................. 7
3. IB – Protectionism ................................................................................................................................... 10
4. Liberalization .......................................................................................................................................... 12
Liberalization Vs Deregulation ................................................................................................................. 12
Arguments, Counterarguments, and Discussions ...................................................................................... 12
Liberalization, Privatization, and Globalization ......................................................................................... 13
Revolutionary Economic Trends ............................................................................................................... 13
PART 2: INTERNATIONAL TRADE ........................................................................................... 14
5. General Agreements on Tariffs and Trade ............................................................................................... 15
General Agreements on Tariffs and Trade ................................................................................................ 15
GATT – Major Principles ........................................................................................................................... 15
Role of GATT in Promoting International Trade ........................................................................................ 15
6. World Trade Organization ....................................................................................................................... 17
Reasons behind the Formation of WTO .................................................................................................... 17
Role of WTO in Promoting International Trade ......................................................................................... 18
Role of Developing Countries ................................................................................................................... 19
7. Global Trade – Major Challenges ............................................................................................................ 20
8. IB – Modern Theories .............................................................................................................................. 22
The Heckscher and Ohlin Model .............................................................................................................. 22
The Samuelson and Jones Model ............................................................................................................. 22
The Krugman and Obsfeld Model ............................................................................................................. 23
The Michael Porter Model ....................................................................................................................... 23
9. Global Competetiveness ......................................................................................................................... 24
International Business Management
iii
Factors Affecting Global Competitiveness ................................................................................................ 24
10. Regional Trading Blocs ............................................................................................................................ 25
What are Regional Trading Blocs? ............................................................................................................ 25
Regional Trading Blocs – Advantages ....................................................................................................... 25
Regional Trading Blocs – Disadvantages ................................................................................................... 26
11. Major Trade Blocs ................................................................................................................................... 27
ASEAN ..................................................................................................................................................... 27
EU ........................................................................................................................................................... 27
MERCOSUR.............................................................................................................................................. 27
NAFTA ..................................................................................................................................................... 28
PART 3: STRATEGIC APPROACHES ......................................................................................... 29
12. Strategic Compulsions ............................................................................................................................. 30
Areas of Strategic Compulsions ................................................................................................................ 30
Standardization Vs Differentiation ........................................................................................................... 31
Strategic Options ..................................................................................................................................... 31
Factors that Affect Strategic Options........................................................................................................ 32
13. Global Portfolio Management................................................................................................................. 34
Factors Affecting Global Portfolio Investment .......................................................................................... 34
Modes of Global Portfolio Management .................................................................................................. 35
Drawbacks of Global Portfolio Management ............................................................................................ 36
14. IB – Modes of Entry ................................................................................................................................. 37
Exporting ................................................................................................................................................. 37
Licensing ................................................................................................................................................. 37
Franchising .............................................................................................................................................. 38
Turnkey Project ....................................................................................................................................... 38
Mergers & Acquisitions ............................................................................................................................ 38
Joint Venture ........................................................................................................................................... 38
Wholly Owned Subsidiary ........................................................................................................................ 39
15. IB – Organizational Structures ................................................................................................................. 40
Centralization vs. Decentralization ........................................................................................................... 40
Use of Subsidiary Board of Directors ........................................................................................................ 40
Organizational Structures ........................................................................................................................ 40
Mixed Matrix ........................................................................................................................................... 46
16. IB – Control Mechanisms ........................................................................................................................ 48
Objectives of Control ............................................................................................................................... 48
Types of Control Mechanisms .................................................................................................................. 48
Approaches to Control Mechanisms......................................................................................................... 49
Constraints of Control Approaches........................................................................................................... 50
17. IB – Performance Issues .......................................................................................................................... 52
Effective Performance Measurement System ........................................................................................... 53
Performance Evaluation System............................................................................................................... 53
Financial and Non-Financial Measures of Evaluation ................................................................................ 54
Types of Performance Evaluation Systems ............................................................................................... 54
International Business Management
iv
UNIT 4: BUSINESS OPERATIONS ............................................................................................ 55
18. IB – Production Issues ............................................................................................................................. 56
Factors that Affect Production ................................................................................................................. 56
Facility or Location................................................................................................................................... 56
Scale of Operations.................................................................................................................................. 57
Cost of Production ................................................................................................................................... 57
Make-or-Buy Decisions ............................................................................................................................ 57
19. IB – Supply Chain Issues .......................................................................................................................... 59
Globalization and its Effect on Supply Chain ............................................................................................. 59
20. Global Marketing Mix ............................................................................................................................. 60
Global Marketing Mix: Consumer Products .............................................................................................. 60
Global Marketing Mix: Price ..................................................................................................................... 61
Global Marketing Mix: Promotion ............................................................................................................ 62
Global Marketing Mix: Distribution .......................................................................................................... 64
Application of 4 P’s .................................................................................................................................. 65
21. IB – Financial Aspects .............................................................................................................................. 67
Foreign Investment by International Companies ...................................................................................... 67
International Investment Outcomes......................................................................................................... 68
Factors for Investment Decisions ............................................................................................................. 68
Funding the International Business .......................................................................................................... 69
Sources of Funds ..................................................................................................................................... 69
Foreign Exchange Risks ............................................................................................................................ 69
Hedging Forex Risks – Internal Techniques ............................................................................................... 70
Hedging Forex Risks – External Techniques .............................................................................................. 70
22. IB – HRM Issues....................................................................................................................................... 72
Recruitment and Selection ....................................................................................................................... 72
Development & Training .......................................................................................................................... 72
Performance Evaluation .......................................................................................................................... 73
Management of Expatriates ..................................................................................................................... 73
PART 5: MISCELLANEOUS ..................................................................................................... 75
23. IB – Adverse Effects................................................................................................................................. 76
24. IB – Conflict Management ....................................................................................................................... 78
Types of Conflicts .................................................................................................................................... 78
Factors Causing Conflicts ......................................................................................................................... 79
Conflict Management .............................................................................................................................. 79
Five A’s Technique ................................................................................................................................... 81
25. IB – Negotiations..................................................................................................................................... 83
Role of International Agencies in Negotiations ......................................................................................... 84
26. IB – Ethical Issues .................................................................................................................................... 86
Employment Practices and Ethics ............................................................................................................. 86
Human Rights .......................................................................................................................................... 86
Environmental Pollution .......................................................................................................................... 86
Corruption ............................................................................................................................................... 87
International Business Management
v
Moral Obligations .................................................................................................................................... 87
International Business Management
1
Part 1: The International Business Ecosphere
International Business Management
2
A Global Village
The world is fast becoming a global village where there are no boundaries to stop free
trade and communication. Keeping pace with it, the way we do business has changed in
an unprecedented manner. The competition, in the global marketplace, is at its peak where
all companies want to sell their goods to everyone, everywhere on the globe.
Figure: A Global Village without Boundaries
For example, the faucet we see in our bathroom may be from Italy. The towels we use
may be a Brazilian product. The automobile we drive may be a Japanese or German brand.
The air conditioners we use may be from France. It is almost impossible to stay isolated
and be self-sufficient in this day and age. That is why multinational companies are a reality.
What is International Business?
Any business that involves operations in more than one country can be called an
international business. International business is related to the trade and investment
operations done by entities across national borders.
1. IB – INTRODUCTION
International Business Management
3
Firms may assemble, acquire, produce, market, and perform other value-addition-
operations on international scale and scope. Business organizations may also engage in
collaborations with business partners from different countries.
Apart from individual firms, governments and international agencies may also get involved
in international business transactions. Companies and countries may exchange different
types of physical and intellectual assets. These assets can be products, services, capital,
technology, knowledge, or labor.
Note: In this tutorial, we are primarily focusing towards business operations of the
individual firm.
Internationalization of Business
Let’s try to explore the reasons why a business would like to go global. It is important to
note that there are many challenges in the path of internationalization, but we’ll focus on
the positive attributes of the process for the time-being.
There are five major reasons why a business may want to go global:
First-mover Advantage: It refers to getting into a new market and enjoy the
advantages of being first. It is easy to quickly start doing business and get early
adopters by being first.
Opportunity for Growth: Potential for growth is a very common reason of
internationalization. Your market may saturate in your home country and therefore
you may set out on exploring new markets.
Small Local Markets: Start-ups in Finland and Nordics have always looked at
internationalization as a major strategy from the very beginning because their local
market is small.
Increase of Customers: If customers are in short supply, it may hit a company’s
potential for growth. In such a case, companies may look for internationalization.
Discourage Local Competitors: Acquiring a new market may mean discouraging
other players from getting into the same business-space as one company is in.
Advantages of Internationalization
There are multiple advantages of going international. However, the most striking and
impactful ones are the following four.
Product Flexibility
International businesses having products that don’t really sell well enough in their local or
regional market may find a much better customer base in international markets. Hence, a
business house having global presence need not dump the unsold stock of products at
deep discounts in the local market. It can search for some new markets where the products
sell at a higher price.
A business having international operations may also find new products to sell
internationally which they don’t offer in the local markets. International businesses have
a wider audience and thus they can sell a larger range of products or services.
International Business Management
4
Less Competition
Competition can be a local phenomenon. International markets can have less competition
where the businesses can capture a market share quickly. This factor is particularly
advantageous when high-quality and superior products are available. Local companies
may have the same quality products, but the international businesses may have little
competition in a market where an inferior product is available.
Protection from National Trends and Events
Marketing in several countries reduces the vulnerability to events of one country. For
example, the political, social, geographical and religious factors that negatively affect a
country may be offset by marketing the same product in a different country. Moreover,
risks that can disrupt business can be minimized by marketing internationally.
Learning New Methods
Doing business in more than one country offers great insights to learn new ways of
accomplishing things. This new knowledge and experience can pave ways to success in
other markets as well.
Globalization
Although globalization and internationalization are used in the same context, there are
some major differences.
Globalization is a much larger process and often includes the assimilation of the
markets as a whole. Moreover, when we talk about globalization, we take up the
cultural context as well.
Globalization is an intensified process of internationalizing a business. In general
terms, global companies are larger and more widespread than the low-lying
international business organizations.
Globalization means the intensification of cross-country political, cultural, social,
economic, and technological interactions that result in the formation of
transnational business organization. It also refers to the assimilation of economic,
political, and social initiatives on a global scale.
Globalization also refers to the costless cross-border transition of goods and
services, capital, knowledge, and labor.
Factors Causing Globalization of Businesses
There are many factors related to the change of technology, international policies, and
cultural assimilation that initiated the process of globalization. The following are the most
important factors that helped globalization take shape and spread it drastically.
The Reduction and Removal of Trade Barriers
After World War II, the General Agreement on Tariffs and Trade (GATT) and the WTO have
reduced tariffs and various non-tariff barriers to trade. It enabled more countries to
explore their comparative advantage. It has a direct impact on globalization.
International Business Management
5
Trade Negotiations
The Uruguay Round of negotiations (1986–94) can be considered as the real boon for
globalization. It is considerably a large set of measures which was agreed upon exclusively
for liberalized trade. As a result, the world trade volume increased by 50\% in the following
6 years of the Uruguay Round, paving the way for businesses to span their offerings at an
international level.
Transport Costs
Over the last 25 years, sea transport costs have plunged 70\%, and the airfreight costs
have nosedived 3–4\% annually. The result is a boost in international and multi-continental
trade flows that led to Globalization.
Growth of the Internet
Expansion of e-commerce due to the growth of the Internet has enabled businesses to
compete globally. Essentially, due to the availability of the Internet, consumers are
interested to buy products online at a low price after reviewing best deals from multiple
vendors. At the same time, online suppliers are saving a lot of marketing costs.
Growth of Multinational Corporations
Multinational Corporations (MNCs) have characterized the global interdependence. They
encompass a number of countries. Their sales, profits, and the flow of production is reliant
on several countries at once.
The Development of Trading Blocs
The regional trade agreement (RTA) abolished internal barriers to trade and replaced
them with a common external tariff against non-members. Trading blocs actually promote
globalization and interdependence of economies via trade creation.
International Business Management
6
The International business environment includes various factors like social, political,
regulatory, cultural, legal and technological factors that surround a business entity in
various sovereign nations. There are exogenous factors relative to the home
environment of the organization in the international environment. These factors influence
the decision-making process on the use of resources and capabilities. They also make a
nation either more or less attractive to an international business firm.
We will take up the most …
The Business Environment of Today Requires Managers Who Lead
Changes in Business
Todays Global Mindset
Management Versus Leadership
Week 1: The Effective Manager/ Leader of Today
Lesson 1 of 3
Changes in Business
Today’s Business Environment
Today’s business environment can be characterized as frenetic. The rapid changes in
technology and the development of new business opportunities are making traditional
business leaders uncertain as to how to manage and lead change. The face of leadership has
changed from the “Captain of Industry” to the “Team of Change”. Understanding the
landscape of business today and in the future tells us what necessary skills are demanded of
an e�ective manager today and by extension why this class will focus on our study of these
skills.
In this video you will learn about some of the biggest business challenges that leaders are facing
today through an interview with the former CEO of Young & Rubicam.
B U S I N E S S C H A L L E N G E S T H E F U T U R E O F W O R K
today business environment
https://www.youtube.com/watch?v=IThdNheGZkI
In this video you will look at Jacob Morgans vision for how work must change due to di�erent
demographics and advances in technology.
B U S I N E S S C H A L L E N G E S T H E F U T U R E O F W O R K
The Future of Work with Jacob Morgan
https://www.youtube.com/watch?v=65zSO0iLHAo
Review the article, Managing in Chaos, about getting companies
to change quickly in a very chaotic and fast-paced world.
http://archive.fortune.com/magazines/fortune/fortune_archive/2006/10/02/8387417/index.htm
Lesson 2 of 3
Todays Global Mindset
The Global Mindset
Due to many di�erent changes, both in business itself and in the world around us, there has
been an increasing number of businesses that have moved to a more global mindset.
Technology has made it much easier to conduct business internationally, and therefore the
entire economy has sort of shifted into more of a global economy than it ever was before.
Dominic Barton: Five Trends Reshaping the Global Economy
Review the video below where Dominic Barton discusses �ve trends that are reshaping
the global economy and the implications that has on leaders during this time of change.
https://www.youtube.com/watch?v=E4-MyLj-LdE
Now that you have learned a bit more about some of the trends that are shaping the global
economy it is time to switch gears to global/international strategy. In this next video you will
learn a bit more about the strategy of international business and the three questions that
companies need to ask when looking to expand internationally.
The Strategy of International Business
Read pages 1 - 14 of International Business Management, where
you will learn about the international business ecosphere,
https://www.youtube.com/watch?v=wnOj3hP4hlE
https://www.tutorialspoint.com/international_business_management/international_business_management_tutorial.pdf
SU BMI T
including an introduction, country attractiveness, protectionism,
and liberalization.
Check Your Understanding from the Reading:
Match the major reason for a business to go global on the left with its
de�nition on the right.
First-Mover Advantage
Opportunity for Growth
Increase of Customers
Discourage Local
Competitors
It refers to getting into a new
market enjoy the advantages of
being �rst.
Your market may saturate in
your home country and you set
out exploring new markets.
If the customer base is in short
supply, companies may need to
look for a new market.
Not allowing other players to
get into the same business-
space as one company is in.
Lesson 3 of 3
Management Versus Leadership
Management is about arranging and telling. Leadership is about nurturing and
enhancing.”
Tom Peters
“
Until now the coursework has indicated there is a di�erence between managers and leaders.
The mindset of the leader is that of the visionary, big picture, future-oriented, leader of
followers. On the other hand, managers are the business stabilizers, the point person who
seeks to set goals toward the execution of the leader’s vision. But is that the future for
managers?
The breakdown of large business structures into smaller, collaborative, change responsive
organizations with �at structures led by teams puts managers in the unique position of
setting visions and making decisions that formerly would not have been a�orded to them. It
seems to suggest that leaders will be managers and manager’s leaders. Tom Peters would
suggest that there is still a di�erence while other business leaders suggest that managers and
leaders are becoming the same by taking on some of the same skills the other’s role used
exclusively. Understanding how the roles are blending helps to explain the range of skills
today’s manager must have to be e�ective.
The Difference Between In�uence and Leadership –
Read this article that talks about the distinct di�erences between in�uence and leadership. The
authors outline ten di�erences between in�uence and leadership within the article.
https://stephenrgraves.com/articles/read/the-difference-between-influence-and-leadership/
The Future of Leadership and Management in the 21st Century Organization –
Read this article that discusses what it takes to have successful organizations today, including
teamwork, trust, accountability, and decision making at lower levels within the organization.
https://www.forbes.com/sites/brentgleeson/2017/03/27/the-future-of-leadership-and-management-in-the-21st-century-organization/#30b0b601218f
Successful Organizations Need Leaders on all Levels –
Read this article about the importance of having strong leadership throughout all levels of the
organization and the fact that many organizations are still facing a shortfall in their acquisition
of strong leadership talent.
https://www.forbes.com/sites/rogertrapp/2014/03/23/organizations-need-leaders-at-all-levels/#7419ed63ab17
The Fundamental Differences between Leadership and Management –
Read this article about the strengths of leadership and management that are both needed in
order to be successful at organizational change, which is an important part of an
organizations success today.
https://www.forbes.com/sites/brentgleeson/2017/03/12/the-fundamental-differences-between-leadership-and-management/#940fdde53ecb
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For example
The inbound logistics for William Instrument refer to purchase components from various electronic firms. During the purchase process William need to consider the quality and price of the components. In this case
4. A U.S. Supreme Court case known as Furman v. Georgia (1972) is a landmark case that involved Eighth Amendment’s ban of unusual and cruel punishment in death penalty cases (Furman v. Georgia (1972)
With covid coming into place
In my opinion
with
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The ability to view ourselves from an unbiased perspective allows us to critically assess our personal strengths and weaknesses. This is an important step in the process of finding the right resources for our personal learning style. Ego and pride can be
· By Day 1 of this week
While you must form your answers to the questions below from our assigned reading material
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5 The family dynamic is awkward at first since the most outgoing and straight forward person in the family in Linda
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The most important benefit of my statistical analysis would be the accuracy with which I interpret the data. The greatest obstacle
From a similar but larger point of view
4 In order to get the entire family to come back for another session I would suggest coming in on a day the restaurant is not open
When seeking to identify a patient’s health condition
After viewing the you tube videos on prayer
Your paper must be at least two pages in length (not counting the title and reference pages)
The word assimilate is negative to me. I believe everyone should learn about a country that they are going to live in. It doesnt mean that they have to believe that everything in America is better than where they came from. It means that they care enough
Data collection
Single Subject Chris is a social worker in a geriatric case management program located in a midsize Northeastern town. She has an MSW and is part of a team of case managers that likes to continuously improve on its practice. The team is currently using an
I would start off with Linda on repeating her options for the child and going over what she is feeling with each option. I would want to find out what she is afraid of. I would avoid asking her any “why” questions because I want her to be in the here an
Summarize the advantages and disadvantages of using an Internet site as means of collecting data for psychological research (Comp 2.1) 25.0\% Summarization of the advantages and disadvantages of using an Internet site as means of collecting data for psych
Identify the type of research used in a chosen study
Compose a 1
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effect relationship becomes more difficult—as the researcher cannot enact total control of another person even in an experimental environment. Social workers serve clients in highly complex real-world environments. Clients often implement recommended inte
I think knowing more about you will allow you to be able to choose the right resources
Be 4 pages in length
soft MB-920 dumps review and documentation and high-quality listing pdf MB-920 braindumps also recommended and approved by Microsoft experts. The practical test
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One thing you will need to do in college is learn how to find and use references. References support your ideas. College-level work must be supported by research. You are expected to do that for this paper. You will research
Elaborate on any potential confounds or ethical concerns while participating in the psychological study 20.0\% Elaboration on any potential confounds or ethical concerns while participating in the psychological study is missing. Elaboration on any potenti
3 The first thing I would do in the family’s first session is develop a genogram of the family to get an idea of all the individuals who play a major role in Linda’s life. After establishing where each member is in relation to the family
A Health in All Policies approach
Note: The requirements outlined below correspond to the grading criteria in the scoring guide. At a minimum
Chen
Read Connecting Communities and Complexity: A Case Study in Creating the Conditions for Transformational Change
Read Reflections on Cultural Humility
Read A Basic Guide to ABCD Community Organizing
Use the bolded black section and sub-section titles below to organize your paper. For each section
Losinski forwarded the article on a priority basis to Mary Scott
Losinksi wanted details on use of the ED at CGH. He asked the administrative resident