Structure And Strategic Advantages And Disadvantages Of Global Business Analysis

973 Words2 Pages
bulb-icon

Recommended: Advantages and disadvantages of international trade economics

Running head: GLOBAL BUSINESS ANALYSIS 1

5

GLOBAL BUSINESS ANALYSIS
Dawn M Howarth
Baker College

Global Business Analysis: Structure & Strategic Advantages
This paper offers a global business analysis of ABC Corporation that is a proposed multinational corporation (MNC) in the auto and IT (information technology) sector based in the United States. It looks at issues of business structure approach to be used by the firm for purposes of global expansion and the strategic advantages and disadvantages of the Global Business approach of the company. Also, the paper will review the structure and strategies of other leading MNCs, the Ford Motor Company (FMC), in comparison. It is important to note that the Global Business strategy of MNC is similar to those of other leading MNCs in the global market like McDonald 's, …show more content…

Fundamentally, the company should engage in the practice of International Human Resources Management (IHRM) as a strategic approach over and above technological change management. Undeniably, such results in some advantages for the firm. For instance, diversity at the workplace leads to the formation of stronger teams of workers, with diverse ideas and capabilities of input into the company. Also, other MNCs like Ford and McDonalds engage in such practices that promote globalization of their business approach. Other advantages of the globalization strategy involve the aspect of low cost of business operation, numerous tech-savvy professionals that are well versed in the English language, a 12 hour difference in time from the United States- facilitating provision of 24/7 services, and capability of handling numerous kinds of services from customer support to research and

Show More
Related

  • It Is Unethical To Pay Cheap Wages In Developing Countries

    333 Words  | 1 Pages

    With the continuous development and progress of society, globalization gradually becomes the main trend toward the development within the company. Therefore, correct understanding of a multinational company becomes extremely important. This research will introduce a multinational company in accordance with the three thesis from the perspective of comprehensively and objectively. It is helpful to understand multinational companies

    Read More

  • International Human Resource Management Case Study

    1264 Words  | 3 Pages

    While there are many various global issues that affect the International Human Resource Management to run efficiently, there are two key concepts that play a major role in understanding how to approach them with cohesive and a well coherent strategy; they are the International Human Recourse Management Strategy and Understanding the Cultural Environment. In the International Resource Management strategy, many companies will do their research in finding companies that offer the following:

    Read More

  • Achieving World Class Business Performance

    864 Words  | 2 Pages

    General Motors is knocking on the door to world class business performance. Ohmae’s five stages of global operation support General Motors aspirations. From stage one to stage five there are significant differences to becoming a global organization. For instance, stage one, states that a company supports arm’s length customer export activity by a domestic company that links up with local and distributors to function. This stage represents the entry level global corporation. General Motors is at stage 4 of Ohmae’s five stages of becoming a global corporation, because it has exemplified the following traits: Systems and tools used globally not just at headquarters, R&D, Engineering and other business operations have a global focus, and all support functions are applied globally. (MFGO 601, WK. #2 Lecture Notes) An example of Ohmae’s, stage ...

    Read More

  • Essay On Global Expansion

    603 Words  | 2 Pages

    Investing or venturing into the international market involves critical analysis of the internal and external environment in which the company operates. Usually, a company will decide to venture internationally due to a saturated market or fierce competition in the current country of operation. The demand for a company’s products may have diminished as a result of an economic crisis thus the company will target a foreign market to sustain its sales. In other words, the firms expand internationally to seek new customers for its products. For example, the current Euro zone crisis led to low demand in Europe and many companies extended their businesses to emerging markets where demand was high. A company may also venture in the international market to enhance the cost-effectiveness of its operations especially for manufacturing companies that will benefit from low costs of production in developing world. Global expansion is a long term project as it involves demanding logistics to be successful. Thorough research must be undertaken to ensure that the expansion will create value for share...

    Read More

  • The Impact of Multinational Corporations (MNCs) on Developing Countries

    1004 Words  | 3 Pages

    Gilpin discussed the MNC’s evolution through the lenses of a number of business economic theories. Using Raymond Vernon’s Product Cycle Theory, the overseas expansion of American companies until the 1960s was shown as a means of preempting foreign competition and preserving monopoly positions, which was possible then because of the wealth and technology gaps that existed between the US and the rest of the world (282-83). Following the closing of such gaps, Dunning and the Reading School’s Eclectic Theory explained the next stage of the MNC’s evolution as propelled by the great leaps made in technology and communication, which made internationalized management both possible and viable (283). Michael Porter’s Strategy Theory, meanwhile, asserted that the MNC is now in the era of strategic management, wherein activities and capabilities spanning borders allow it to “tap into the value chain” in the most advantageous positions (285-85). Gilpin made an interesting point, however, that MNCs are oftentimes the result of market imperfections and unique corporate situations. In many instances, the decision to expand a firm’s operations in another country was a means of circumventing protectionist measures and trade barriers, or simply to curry favor with governments, as practiced by IBM (280...

    Read More

  • The Huawei Company and International Business

    2743 Words  | 6 Pages

    Multinational enterprise (MNE) is “a company that is headquartered in one country but has operations in one or more other countries” (Rugman and Collinson 2012, p.38) that has at least one office in different countries but centralised home office. These offices coordinate global management in the context of international business. MNEs have increasingly essential influence on the development of the global economy and coordinate with other companies in different business environments. However, there are many issues involved with how MNEs operate well overseas, especially in emerging markets (EMs) (Cavusgil et al., 2013, p.5).

    Read More

  • International Human Resource Management In Mnc Case Study

    1982 Words  | 4 Pages

    Globalization has changed business scenario, has increased competition among companies and countries. Globalisation has helped industries to grow and also helped in the economic development of many countries. Globalisation stimulated the growth of Multi-National Companies (MNCs) and helped them to spread their operations without any boundaries. This resulted in large number of MNCs, which in turn made Human Resource Management (HRM) as one of the most sought functions in all MNCs.

    Read More

  • Human Resources at Proctor and Gamble

    1821 Words  | 4 Pages

    In today's global business environment, managing diversity in human resources has become a very important and crucial issue. Human resources management has a lot to deal with managing workers/employees from different countries and nationalities. Managing multinational human resources becomes an issue not only in the multinational corporations, having their offices or plants in different countries, but also in the domestic companies, with domestic workforce becoming more and more diverse each day. Creating an HR that has the ability to recruit and select the right people and the ability to effectively socialize and train employees will allow multinational companies to excel in all business aspects.

    Read More

  • Repatriation Essay

    1920 Words  | 4 Pages

    International human resource management (IHRM) refers to “an extension of human resource that relates to having people working in a foreign country.” Peltonen (2006) defines international human resource management (IHRM) as a branch of ...

    Read More

  • National Culture Influences on International Management

    2527 Words  | 6 Pages

    Svensson, G., 2001. 'Globalization' of Business Activities: A 'Global Strategy' Approach, Management Decision, 39(1), pp.6-18.

    Read More

  • Management Problems Facing Multinational Corporations

    1385 Words  | 3 Pages

    Nowadays, business is set in a global environment. Companies not only regard their locations or primary market bases, but also consider the rest of the world. In this context, more and more companies start to run multinational business in various parts of the world. In this essay, companies which run multinational business are to be characterized as ‘multinational companies'. By following the globalization campaign, multinational companies' supply chains can be enriched, high costs work force can be transformed and potential markets can be expanded. Consequentially, competitive advantages of companies can be strengthened in a global market. Otherwise, some problems are met in the changed environments in foreign countries at the same time. The changed environments can be divided into four main aspects, namely, cultural environment, legal environment, economic environment and political system problems. All the changed environments make problems to multinational companies. In particular, problems which are caused by changed culture environment are the most serious aspect of running a multinational business. This essay will discuss these problems and give some suggestions to solve them.

    Read More

  • Examples Of Human Resource Management Interventions

    1357 Words  | 3 Pages

    Human Resources Management (HRM) Interventions relates to the idea of improving an organizations overall performance and efficiency by improving the members (individuals and groups) performances, commitment, and flexibility. According to Beer et al. (1984), this is often a relevant intervention technique when organizations are facing increased international competition. They see the value of HR investments as a way to improve organizations competitive advantages. Further, they establish that HRM policies have long-term consequences and immediate organizational outcomes. These policies should include the overall competence of employees, the commitment of employees, the cost effectiveness of HRM practices,

    Read More

  • History of Multinational Corporations

    2012 Words  | 5 Pages

    However the modern MNC, as it is known today, did not appear until the 19th century. These new entities provide a new level of inter-firm connectedness, a wider division of labor, and a higher level of product integration across countries in which MNCs are growing. Studies have shown that modern MNCs are characterized by a high degree of complexity, and have not followed a linear pattern in their development. In addition, it is crucial to understand the geographical context in which these MNCs were founded. This paper will analyze the development of the multinational corporation (MNC) from the 1870s to the modern day and examine in what ways, and to what degree, it has changed over time.

    Read More

  • Globalization and Human Resource Management

    1375 Words  | 3 Pages

    With the proliferation of the internet international Business transactions are more common today than ever. Globalization is now a key factor when creating a business strategy for most companies whether they are small family own businesses or huge corporations. Globalization however does not just involve selling a product in other countries. There are legal and cultural concerns that must be addressed. The legal aspects are fairly simple because in most places the laws are spelled out. It's the local customs, and regional way of doing things that can be tricky. Research on globalization has shown that it is not an omnipotent, unidirectional force leveling everything in its path. Because a global culture does not exist, any search for it would be futile. It is more fruitful to instead focus on particular aspects of life that are indeed affected by the globalizing process. (1). In this new economy, as it has been in the past, it will be the people not the machines who will determine a company's success. Having an effective Human Resource Management team that effectively analyze your company's current and future personnel needs is key in any business organization.

    Read More

  • Globalization and Technology

    1460 Words  | 3 Pages

    Stonehouse, G., Campbell, D., Hamill, J. & Purdie, T. (2004). Global and Transnational Business (2nd ed.). Chichester: John Wiley & Sons.

    Read More

More about Structure And Strategic Advantages And Disadvantages Of Global Business Analysis

Open Document