Brett, J., Behfar, K. & Kern, M. (2006) ‘Managing multicultural teams’, Harvard Business Review, 84 (11), pp.84-91, Business Source Premier [online]. http://search.ebscohost.com.ezproxy.liv.ac.uk/login.aspx?direct=true&db=buh&AN=22671287&site=ehost-live. Accessed: 21st March, 2012. Di Stefano, J.J. & Maznevski, M.L. (2000) ‘Creating value with diverse teams in global management’, Organizational Dynamics, Vol.
Supply Chain Digest 2011, ‘Supply Chain News: New Study from Boston Consulting Group on Willocks, B, & Harlad, L 2006, Strategic Issues in Outsourcing, McGraw-Hill, Townsville. Yoman, B 2008, Analysing Hidden cost associated with Outsourcing to China, Routledge, London.
Al-Emadi & Al-Asmakh (2006) and Mishra & Suar (2010) are of the opinion that what is considered normal in one country may be in conflict with another. Consequently, there is diversity and complexity in decision making when expanding to foreign territories. Companies such as XYZ Construction Incorporation which wants to expand to Asian countries will have tough decisions to make. In this paper, a critical review of ethical and social issues that XYZ will have to contend with when expanding to Asia. Social and ethical issues to be considered A plethora of studies have been presented to describe the issues concerned with social ethics in regard to internationalization of business activities.
This essay will examine the possibility of XYZ Constructions, Incorporated expanding into the global market. In particular, the owners believe that Canada, Asia, and Mexico have niche markets and are the front-runners for expansion. Furthermore, the owners believe these markets will ultimately help increase their initial public offering (IPO) number because of the increased market penetration and market diversity associated with these markets. This essay will examine the issues present in the global market as it relates to ethics and social responsibility. In addition, the essay will study the considerations that are required for opening field offices in foreign countries with respect to international management and cultural diversity.
There are several modes of entry that need to be considered and the best mode suited to the market and the product needs to be chosen for best future growth and profitability. These modes of entry are exporting, turnkey projects, licensing or franchising to host nation firms, joint ventures and wholly owned subsidiaries. All these modes have positives and negatives, the magnitude of these are determined by the risks related to previously and the costs associated with doing business. Costs involved As discussed there are many implications to doing business abroad but in saying this, the global market place provides many business opportunities for new entrants. With a strong business plan and research in the above topic “business development in a global market” it would not be an unreasonable expectation to achieve a successful “global” enterprise.
Flexibility is a requirement in globalization, once conducting business with another company or individual in another region or in the international arena, this may be considered to add to globalization. Advance technology and the hypercompetition condition faced by new venture forces, a mandatory flexibility to adjust and adapt. “.. Responsiveness and product adaptation are becoming increasely critical for business success, proximity to foreign customers is an important driver of overseas investment” (Shenkar and Luo, 2007 pp 13). Reference Child, J. (2005) Organization: contemporary principles and practice.
Expanding the organization across the geographical borders is a challenging task for managers (Yaprak, Shichun &Cavusgil, 2011). Expanding to the global market challenges manager capability to handle the international operations effectively and efficiently. Managers required coordinating multiple international teams from several different locations around the global. Essentially, managers need to balance the business operation with market expectations upon the domestic customer demand. An organization must acquire unique resources that create value for customers and gain the position of competitive advantage.
The reason for this is to be able to compete in today’s international market; some of the strong Asian values have to be moderated to be able to grow. And then nurture the homegrown innovation’s which will integrate into the international economy of the Asian countries. With a keep developing the model, it is in my opinion as relevant today. As long as East Asian countries manage to develop it to follow the globalized world we live in, and the international trends. One of the strongest traits of the model after the war was that the governments were able to do this, and develop it too fit the new level of economic prosperities as they were reached.
Retrieved from BusinessDictionary.com Web site: http://www.businessdictionary.com/article/583/impact-of-globalization-on-small-businesses/ Thomas, J. (2007, January). Globalization creating new ethical problems in Asia. Message posted to The Advertiser-Tribune.com: http://www.advertiser-tribune.com/page/content.detail/id/501961/Globalization-creating-new-ethical-problems-in-Asia.html
Organizations face many challenges when considering expanding their business globally. Each country got its own economical and legal rules and regulations that a business needs to conform to. Not only do they need to consider the opportunity cost and benefits that may be comes with operating in an international market, they need to understand the risk as well. It is important for ABC Complete Kitchen Inc. executive team to assess and all economic and legal factors that can influence its new plant, then incorporate economic and legal considerations into its operations plan to avoid any risk of obtaining credit, reliable market conditions, or product liability issues. Economics In order for one to understand economics they need to know the meaning and the type of questions that economists attempt to supply answers too.