International business and Globalisation

    Globalisation refers to the broadening set of interdependent relationships among people from different parts of a world that happens to be divided into nations ,globalisation also refers to the integration of world economies through the reduction of barriers to the movement of trade ,capital ,technology and people.

International business consists of all commercial transactions that take place between or more countries like sales ,investments ,transportation ,etc .And here are some examples of international business :Nestle ,Vodafone ,Exon Mobil ,McDonalds ,General Motors ,Sony ,Unilever ,IBM ,General Electric ,Wal-Mat ,IKEA,etc. Globalisation and international business enable society to access goods and services of more variety ,better quality or lower princes. The forces driving globalisation ,increase in and expansion of technology ,liberalisation of cross-border trade and resource movements ,development of services that support international business ,growing consumer pressure ,increased global competition ,changing political situations and expanded cross-national cooperation .International business are the major and beneficiaries of globalisation and as much attract both approbation and condemnation .

Critics of globalisation claim that :countries lose sovereignty ,the resulting growth hurts the environment ,some people lose both relatively and absolutely (growing income inequality between developed and developing countries). And why companies engage in international business companies go global because they want to create value for their organisation .Let us consider some specific ways in which firms can value by going global :expanding sales .acquiring resources and minimising risk. About models of operation  in international business ,when pursuing international business ,an organisation must decide on a suitable mode of operation from several operating modes:importing and exporting ,tourism and transportation ,licensing and franchising ,management contracts and direct and portfolio investment  (including joint ventures) .Functions of operation in international business ,in addition to choosing a suitable mode of operation ,an international business must also decide on the most appropriate strategy to be used in international markets ,the main areas of focus are marking,global manufacturing and supply-chain management ,accounting ,finance and human resources . Last ,corporate governance ,there are four main points: ethics ,corporate social responsibility ,bribery and corruption and money laundering .

Here is a very famous , popular and succeed business -----McDonalds. Every corner of the world can see McDonalds ,every restaurant has their own characteristic ,every country have their own taste. It is representative of globalization ，and McDonald is one of succeed restaurants in international business .

Organisational Strategy

 

                   Organisational strategy

     Strategy is a high level plan to achieve one or more goals under conditions of uncertainty. Strategy is important because the resources available to achieve these goals are usually limited. And today I will use SWOT to analyze the Apple company . SWOT analysis is a structured planning method used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project or in a business venture. Setting the objective should be done after the SWOT analysis has been performed. This would allow achievable goals or objectives to be set for the organization. Strengths: characteristics of the business or project that give it an advantage over others. Weaknesses: characteristics that place the team at a disadvantage relative to others. Opportunities: elements that the project could exploit to its advantage. Threats: elements in the environment that could cause trouble for the business or project.

      Apple Industry is manufacture Computer hardware, Computer software, Consumer electronics, and Digital distribution. Samsung Electronics Co., Ltd., Amazon.com, Inc., International Business Machines Corporation, Cisco Systems, Inc., Google Inc., Microsoft Corporation, Dell Inc., LG Electronics, Lenovo Group Limited, Hewlett-Packard Company, Sony Corporation and many others are Apple company’s main competitors. Next I will analyze strengths of Apple Inc. , Customer loyalty combined with expanding closed ecosystem, Apple is a leading innovator in mobile device technology, It has strong financial performance . Brand of Apple products are popular and enjoy a high reputation in mobile phone industry . It also has strong marketing and advertising teams. Weaknesses of Apple Inc. is it has high price  ,and the share price is decrease in market , Apple lack new products they need to manufacture more high-tech products . Then Apple Inc. has many opportunities : high demand of iPad mini and iPhone 5 , in China Apple products are very popular therefore there is strong growth of mobile advertising market and growth of tablet and smartphone markets , Apple patents are often infringed by its competitors. Thus, collecting the damages from the companies that do so is a viable opportunity to not only increase the cash reserves but to damage the competitor’s reputation and sales as well. The growth of mobile advertising market is an opportunity which could be further seized upon. There are also many threats of Apple Inc.: Tax increases in USA in 2013 will negatively affect Apple. The companies that breach Apple patents might not be discovered soon and may benefit from it, while weakening Apple at the same time. Samsung has already asked Apple to pay higher price for its application processors. Due to intense competition and no viable substitutes, Apple may be asked to pay even more.

      Apple Inc. is an American multinational corporation, which designs, manufactures and sells personal computers, consumer electronics and software, and provides related services. The business has experienced a tremendous growth from 2001 when it has introduced its iPod mp3 player. Apple Inc. is considered to be the most successful electronics company in the world.

Placing organisations in context- part 2- the macro environment (PESTEL) and stakeholders

           
              PESTEL analysis model, also known as the big environmental analysis is an effective tool for analyzing the macroeconomic environment, not only to analyze the external environment, but also to recognize the role of all has an impact on the organization's strength. It is a method of investigating the impact of factors external to the organization, each letter represents a factor that can be divided into six major factors: political factors , economic factors , social factors , technical factors, environmental factors  and legal factors .Political factors refers to the actual and potential political power has impact on the organization's business activities and related policies, laws and regulations and other factors.Economic factors : refers to the organization of external economic structure, industrial layout, resources, level of economic development and future economic trends and the like.Social factors refers to the members of the organization is located in the historical development of social, cultural traditions, values, customs, education levels and other factors.Technical factors : technical elements of the invention includes not only those caused revolutionary changes, but also includes new technologies and production-related businesses, new technology, the emergence of new materials and the development trends and application prospects.Environmental factors : activities of an organization, product or services that can interact with the environmentLegal factors : Integrated Systems organization outside the laws, regulations, judicial status and legal awareness of citizens composed.PESTEL is coupled with environmental factors on the basis of the PEST analysis and legal factors formation. In the analysis of the context in which an enterprise group, usually through these six factors to analyze the situation faced by business groups.

We did a seminar-group presentation that use PESTEL to analyze the Apple In . And I analyzed the economic factors and environment factors , with the development of economic in China ,mobile-phone is a popular industry ,all ages people are interested in  mobile-phone especially young people .Apple Incorporation manufacture many high-tech products and grasp many customers's requirement .People cost money to buy Apple products .Nowadays ,environmental friendly is the first significant issue ,Apple will manufacture  more high-tech products to cater environmental friendly  like solar car ,energy conservation electronic products . And about shareholder I also through analyzed the Apple Inc ,as we know these two years the share of Apple Inc was reduce in totally ,Tim Cook the CEO of Apple In attended board of directors claimed that he was disappointed that the price of stock was reduce that he and other shareholder will damage ,but he encouraged shareholders that they should be cheer up .Apple Incorporation have confidence to improve the price of share ,Apple will manufacture high-tech products .Therefore ,the more sales volume of Apple products the more profit that shareholders will gain .

Placing organisations in context part 1- internal environment, micro environment

To review the enterprise strategies ,not only should evaluate the enterprise’s current mission, target, strategy  and policy ,but also need to analyze the enterprise environment, to make sure in this point have the pivotal strategy elements. Enterprise environment include external environment and internal environment . The external environment exist in external organization ,usually enterprise senior managements can not control. The internal environment exist in internal organization , usually enterprise senior management could control ,and include the enterprise of organization structure ,culture ,resources specifically.External environment is include political environment outside the enterprise ,social environment, technical environment, economic environment ,act. 

 The development of a enterprise ‘s external environment ,the main competition performance in resource exploitation ,base installations, technological level and legal environment . Here are two features of external environment : the external environment have uniqueness ,and the external environment have variability . External environment as a restrict power,with the mutual function and impact of enterprise formed it’s features. External environment have complexity, the enterprise analyze the external environment should consider the total level of environment factors. In order to the enterprise’s strategy could adapt the features of environment , The enterprise should recognize the degree of turbulence or the stability of external environment .The internal environment is the basic of the internal enterprise’s control, it include the structure of govern ,organization structuring ,distribution of rights ,internal audit , the policy of human resource and enterprise culture. The internal environment is the exist of internal control and the development’s space ,is the soil of the enterprise internal control exist .Control environment is the key factor to decide whether the other factors of control could express benefit function. The board of directors is the core of a enterprise internal control system, is the effective mechanism of restrain the operator behaviors. The structure of organization is to help enterprise to govern more convenience. It indicate the parts of internal environment’s sort order ,contact way and mutual relation . Enterprise should use a written form to explicit , accredit and divide the specific ways of duties to strengthen the whole organization ‘s awareness of control .  

management models through the years

    This week  we learned  the basic management models and theories associated with motivation and leadership. The professional knowledge include the classical management theory, fundamental management priciples ,system theory ,theory of bureaucracy and human relations theory ,etc .And our teacher focused on some well-known early writers on management :Fredrick Winslow Taylor ,Henri Fayol, Max weber ,Henry ford .Fredrick Winslow Taylor :He was in the scientific management school ,his emphases were on efficiency and productivity but he ignored many of human aspects of employment.For the managers ,scientific management required them to set up a suitable organization to take all responsibility from the workers except that of the actual job performance, select and train the workers ,cooperate with them. For the workers scientific management required them to ,give up their idea of wasting and cooperate with the management in developing science .The benefits from this kind of management can be summarized :It enabled employees to be paid by results and to take advantage of incentive payments ,it stimulated management into adopting a more positive role in leadership at shop floor level ,while the scientific management technique has been employed to increase productivity and efficiency both in private and public services ,it has also had the disadvantages of ignoring many of the human aspects of employment . About Fayol gave much of the basic terminology and concepts , which would be elaborated upon by future researchers .such as division of labour . The disadvantage is absence of attention to issues such as individual general interest and equity suggest that Fayol saw the employer as paternalistic and by definition working in the employee’s interest .Theory of Bureaucracy is the rational-legal authority from that exists in most organisations today and this is the form to which Weber ascribed the term “bureaucracy” .The advantage of this model is  appointment ,promotion and authority were dependent on technical competence and reinforced by written rules and rules and procedures of promoting those most able to manage rather than those favoured to manage.

·       The human relations theory where classical theorists were concerned with structure and mechanics of organisations ,the theorists ,the theorists of human relations were understandably ,concerned with the human factors ,the focus of human relations theory is on motivation ,group motivation and leadership . The process of motivation involves choosing between alternative forms of actn in order to achieve some desired end or goal.

It highlighted need for supervisors to be sensitive and cater for social needs of workers within the group .