Management Consulting/MBA Assignment questions

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Question
Dear Mr.Leo Linham,

Please help me to answer the following questions,

GLOBAL STRATEGIC MANAGEMENT

1.   “Environmental factors play an important role in the formulation of an effective business policy” – Examine the role of developing and developed countries in this regard.

2.   “Strategies for international operations cannot be the same and uniform” – Discuss with respect to global business environment.

INTERNATIONAL TRADE POLICIES AND DOCUMENTATION

3.   “IMF and world bank serve the interests of industrialized nations rather than these of the developing countries.” – Discuss.
   
4.   Discuss the role of Reverse Culture shock in the repatriation process. What can companies do, to avoid these problems? What kinds of skills do managers learn from foreign assignment, and how can the company benefit from them? What is the role of repatriation in the company’s global competitor situation?

Answer
HERE  IS  SOME  SOME  USEFUL MATERIAL.
SOME  ANSWERS  HELD  BACK  DUE TO  SPACE CONSTRAINT.
PLEASE  FORWARD  THESE  BALANCE  QUESTIONS  TO  MY  EMAIL  ID   
leolingham@gmail.com.
I  will send  the balance  asap.
Regards
LEO  LINGHAM   
==========================================






1. “Environmental factors play an important role in the formulation of an effective business policy” – Examine the role of developing and developed countries in this regard.?
Organization’s External Environment
The external organization comprises of all the entities that exist outside its boundary,
but have significant influence on its growth and survival. An organization has little or no
control over its environment but needs to constantly monitor and adapt to these external
changes, a proactive or reactive response leads to significantly different outcome.
The Environmental Domain
The domain consists of all the entities of the environment that interacts with the organization.
Although the domain can be large, it is important to focus on the ones that have the highest
significance. The common external factors that influence the organization are discussed below.
- Competition: It comprises of the related industries with similar products or services, their
geographic locations and markets.
- Related Industries: It is important to know all the competitors, their organizational size
and skills pool, their competitive advantages, their marketing strategies, offshore development
etc.
- Global context: Due to increasingly broad world economy, it is important to watch the
competition across the oceans, competitive products launched from abroad, changing
socio-political situations, and home grown entrepreneurs.
- Customers: They are the end-users of the product and services, the most critical aspect
of the environment.
- Preference changes: Customers likes and dislikes changes rapidly, people live in a tight
social system that create and encourage trends. It is important to anticipate changes in user’s
product requirements, emerging technologies that can change how the products are used etc.
- Demographical changes: These include the social, economical and cultural
changes like population age, ethnicity, education level and economic class. Such changes
affect the customer preference and the mass market trends.
- Resources: An organization depends upon availability of certain external resources for
its operations and productivity.

The rate at which the external domain can possibly change defines the environmental
uncertainty; put differently, it’s a measure of how many factors change during a single
planning period. Not all factors impact the day to day operations and thus needs to be
weighed differently. Higher level of uncertainty entails that organizational leaders have a
complex environment to deal with, it test their visionary and decision making capability in
absence of clear data.
A framework of environmental uncertainty can be formulated by determining the complexity
and stability of the environment.
- Complexity of Environment: It’s a measure of number of domain elements that
influence the organization’s operation. Not all domain factors might have considerable impact,
one company might have very few competitors with little market share while another might be
threatened by new players.
- Stability of Environment: It is the frequency at which the domain elements change
and how predictable are the changes. Domain is considered to be stable if only few elements
change in a predicable fashion. It is considered unstable if the domain elements are dynamic
and shift abruptly, and it is hard to anticipate the changes. Competitors marketing strategies or
alliances, price wars, sudden change in political climate are some unpredictable factors that
add to the domain’s instability.
Environmental Intelligence
Environmental intelligence gathering is a process of constantly scanning the
environmental domain for changes. Its purpose is to detect the changes, gather vital
information, perform methodical analysis and present its reports to the top executives in the
organization. There are two channels of obtaining environmental domain changes that are
mentioned below.
- External Linkage: Organizations are an open system and are tightly bounded to its
external environment. Almost every functional unit has either direct or indirect linkage with the
environment and it receives tips and information about the related changes. Sales & marketing
competition’s new product, road-map and pricing, R&D about
the emerging technologies, HR about skilled resources, laws and regulations. Similarly
procurement dept can detect changes in suppliers and finance about availability of credit,
economic outlook etc. Some organizations create an additional functional unit that acts as a
bridge between other units, it systemically collects and compiles the competitive information
that is used by top executives in strategic planning and decision making.
- External Consultants: Organizations can also use specialized external services in field
of competitive intelligence and strategic planning. These services utilize various tools like
survey & questionnaires, systemic scanning of public information and the web and use various
statistical techniques to analyze the collected data. These consultants work with the internal
functional units as well the external environment to obtain their information, thus can potentially
provide unbiased recommendations which are sometimes hard to obtain internally.
Adapting to External Environment
In order to survive and prosper, the organization has to adapt itself to the ecological system
that surrounds itself. It is important to utilize the environmental intelligence to determine the
uncertainty and take appropriate actions for the well being of the organization.
- Forecasting and Planning: Environmental uncertainty should be used to predict the
future course of the environment and plan appropriately to reduce its adverse impact. A
planned organization is better prepared against the unstable environment and can respond
quickly and coherently.
- Organization Design or Reorganization: The internal design of the organization is
directly influenced by the stability and uncertainty of the external environment .The two structural dimensions,
hierarchical vs. horizontal
are both dependent upon the environmental instability, when the environment is stable,
hierarchical structure provides essential control and efficiency. Since not every functional area
will have similar uncertainty, organizations need to adjust the extent to which they need
coordination vs. control in internal structure of each unit.
- Reduce Resource Dependence: As mentioned earlier, an organization depends upon
external resources, but it can find ways to control some aspect of it. One method is to forge
inter-organizational alliances where it shares the scare resource, collaborate with one another
to control cost and minimize risk while giving up some of its autonomy. Inter-organizational
linkage can be in form of acquisition of similar organization, contracts and joint ventures with
competition. Another approach is to keep extra resources at an additional cost, having more
than necessary workers and raw materials provides a cushioning effect to slight changes and
thereby minimizes risk.

Controlling the External Environment
- Shifting Core Competencies: An Organization can change its core business to an
emerging product and thereby lead the change in the domain for other competitors. By leading
a change, it creates a new customer base, monopolizes the market and keeps the competitors
out. However such drastic step can only be initiated by a visionary leader who has the support
of all the stakeholders, board members and the investors.
- Advertisements: These are effective means of influencing the customer taste and
opinion; and it provides an edge over the competition.
- Political Lobbying: Political lobbying and activities are ways influencing the government
policies and regulations in favor of the organization or sometimes against the competitors.
Lobbying for “Green” legislation is a good strategic advantage over competition for firms that
had anticipated it and have the technology to deliver it.

Political (incl. Legal)   

-Environmental regulations and protection
[what  are  the  government regualtions/ protection laws  that  must be  observed ]

-Tax policies
what tax  hinder the business and what  taxes  incentives  are available]

-International trade regulations and restrictions
[ does  the  government    encourage  exports / with  high tariffs  on  imports]

-Contract enforcement law/Consumer protection
[does  the  government  enforce  on  consumer  protection ]

-Employment laws]
[ is the  government    encouraging  skilled  immigrants  with  temp. permits]

-Government organization / attitude
[ does  the  government  have  a   very  positive  attitude  towards  this   industry]

-Competition regulation
[ are  there   regulation  for  limiting  competition]

-Political Stability
[ politically ,  does the   government    have   a  very   stable  government ]

-Safety regulations
[ has  the  government      adopted  some  of  the  modern  safety regulations]
=================================================================
Economic     

-Economic growth
[  what  is  the economic growth rate  /  what  are  the  reasons ]

-Interest rates & monetary policies
[ are  the  interest  rates    under control /  is there   a  sound  monetary  policies]

-Government spending
[is  government  spending  is  significant   and  is it   under control ]

-Unemployment policy
[what  is  the  employment / unemployment  policies  of the government ]

-Taxation
[  has  the  taxation    encouraged  the  industry ]

-Exchange rates
[ is   there  well  managed   exchange  controls  and  is it  helping  the  industry]

-Inflation rates
[ is  the  inflation  well   under  control ]

-Stage of the business cycle
[ is  your    industry  is  on  the   growth  pattern]

-Consumer confidence
[ is  the  consumer  confidence   is   high/ strong and  if  not, why ]

==================================================
Social  

-Income distribution
[is there   balanced   income  distribution   policy ]

-Demographics, Population growth rates, Age distribution
[ what  is   population   growth  and  why ]

-Labor / social mobility
[ what   are the  labor  policies  and  is  there  labor  mobility]

-Lifestyle changes
[ are  there  significant  lifestyle   changes     taking  place--more  modernization/ why  ]

-Work/career and leisure attitudes
[ are  the  population      career  minded  and  are  seeking  better  lifestyle]

-Education
[ what  are  the  education  policies /  is  it  successful ]

-Fashion, hypes
[are  the   people    becoming  fashion  conscious ]

-Health consciousness & welfare, feelings on safety
[ are  the  people     becoming  health  consciousness]

-Living conditions
[ is the  living  conditions   improving  fast  and  spreading  rapidly]

=========================================================
Technological  

Government research spending
[is  the  government    spending  on research  and  development]

Industry focus on technological effort
[are  the   industries    focused  on  using  improved  technology]

New inventions and development
[ are  new  inventions     being   encouraged  for  developments]

Rate of technology transfer
[ is  the  rate  of  technology  transfer  is  speeding  up ]

(Changes in) Information Technology
[ is  the   information  technology    rapidly  moving  and  is  there  government  support]

(Changes in) Internet
[ is the   internet  usage    rapidly  increasing   and  why]

(Changes in) Mobile Technology
[is  the   Mobile   technology    rapidly developing  and  is there  government  support]
===================================================
#####################################################

ALL   THESE  FACTORS  AFFECT  THE  BUSINESS  ENVIRONMENT

-in various  combinations

-at  different  times

-at  various  emphasis


The Political / Legal / Regulatory Environment can be simply described as the lawsand regulations that business has to follow in order to make sure the businessowners do not get arrested, or have the business fined for noncompliance of someregulation.Laws are made by politicians - who enact these laws based on the likelihood they willget re-elected. The political environment is affected and effected by politicians whoin turn are influenced by changes and challenges in the social - culturalenvironment (languages, ethnicity, immigration etc.), challenges in the economicenvironment (currency exchange rates, corporate activity, unemployment rates) andalso to some extent the geographic environment in terms of how the region is laidout, rivers, mountains, proximity to other countries, weather, seasons etc.PurposeBusiness and corporations have gained the centre stage of economic activity almostall over the world. Even political life and cultural practices of increasingly largernumbers are influenced by the actions of corporations and business practices ingeneral. Hence, there is a need to look beyond the immediate, to understand thedeeper structures involved in the conduct of business.
.


Political (incl. Legal)   [ [Poltical] EST[Environment][Legal] ]

==========================================
-Tax policies
what tax  hinder the business and what  taxes  incentives  are available]

[ if  the  tax  policies are  liberal / incentivated,  businesses  will  add
expansion ]
========================================

-International trade regulations and restrictions
[ does  the  government    encourage  exports / with  high tariffs  on  imports]

[ if  the  exports  policies  are  liberal / incentivated,  businesses  will  add
expansion ]
------------------------------------------------------------------------------------------
[ if  the import  policies  are  liberal / incentivated,  local  mfg. businesses  will  
contract ]
======================================================
-Employment laws]
[ is the  government    encouraging  skilled  immigrants  with  temp. permits]

[if the government  relaxes the  rules on  skilled  migrants]

=======================================================
===================================================
-Interest rates & monetary policies
[ are  the  interest  rates    under control /  is there   a  sound  monetary  policies]

[ if  the  interest  rate  goes down/ the monetary  policies  are liberal,  
as the  demand  goes  up, businesses  will  add
expansion ]
----------------------------------------------------------------------------
[ if  the  interest  rate  goes  up ,  the demand  will  go  down
 businesses   will  downsize / cut cost  ]
===================================================
-Government spending
[is  government  spending  is  significant   and  is it   under control ]

[ if  the  government  increases  the  spending  on  infrastructures etc,
the  demand  goes  up  , businesses  will  add
expansion ]
==================================================
-Unemployment policy
[what  is  the  employment / unemployment  policies  of the government ]
=====================================================
-Taxation
[  has  the  taxation    encouraged  the  industry ]

[ if  the  taxation policies encouraged  the  industry,  businesses  will  add
expansion ]
=======================================================
-Income distribution
[is there   balanced   income  distribution   policy ]

[ as  the  income level  goes  up and  income  distribution  improves,  
demand  for  product/services   will go  up, businesses  will  add
expansion ]
==================================================
-Education
[ what  are  the  education  policies /  is  it  successful ]

[ as  the  education level  goes  up and  income  distribution  improves,  
demand  for  product/services   will go  up, businesses  will  add
expansion ]
=======================================================
Rate of technology transfer
[ is  the  rate  of  technology  transfer  is  speeding  up ]

[ as  the  rate of  technology  transfer  speeds up, more jobs are created,
demand  for  product/services   will go  up, businesses  will  add
expansion ]
=======================================================
(Changes in) Information Technology
[ is  the   information  technology    rapidly  moving  and  is  there  government  support]

[ as  the  IT  usage  increases, more jobs are created,
demand  for  product/services   will go  up, businesses  will  add
expansion ]

I  HAVE  TAKEN  ONE  OF  THESE  --HUMAN  RESOURCE  
AS AN  EXAMPLE.


Political (incl. Legal)  

==========================================
-Tax policies
what tax  hinder the business and what  taxes  incentives  are available]

[ if  the  tax  policies are  liberal / incentivated,  businesses  will  add
expansion ,  which means  the  impact  on   HR  

-MORE RECRUITMENT/ SELECTION
-MORE  INDUCTION / ORIENTATION
-MORE TRAINING
========================================

-International trade regulations and restrictions
[ does  the  government    encourage  exports / with  high tariffs  on  imports]

[ if  the  exports  policies  are  liberal / incentivated,  businesses  will  add
expansion ,  which means  the  impact  on   HR  

-MORE RECRUITMENT/ SELECTION
-MORE  INDUCTION / ORIENTATION
-MORE TRAINING
------------------------------------------------------------------------------------------
[ if  the import  policies  are  liberal / incentivated,  local  mfg. businesses  will  
contract ,  which means  the  impact  on   HR  

-less  RECRUITMENT/ SELECTION
-MORE TRAINING  to improve  efficiency / productivity  

======================================================
-Employment laws]
[ is the  government    encouraging  skilled  immigrants  with  temp. permits]

[if the government  relaxes the  rules on  skilled  migrants,
which  means  the impact  on  HR

-EMPHASIS  WILL  BE   ON FOREIGN   RECRUITMENTS.
-DEVELOPMENT  OF  OVERSEAS  CONTRACTS
-TRAINING  FOR THE  INCOMING  STAFF  ON   LOCAL CULTURE.
-TRAINING  FOR  MANAGERS   TO  MANAGE  DIVERSITY

=======================================================
Economic     

-Economic growth
[  what  is  the economic growth rate  /  what  are  the  reasons ]

[ if  the  economy  is on growth path,  businesses  will  add
expansion ,  which means  the  impact  on   HR  

-MORE RECRUITMENT/ SELECTION
-MORE  INDUCTION / ORIENTATION
-MORE TRAINING
-COMPENSATION  NEEDS  REVISION
--------------------------------------------------------------------------------
[ if  the  economy  contracts/demand  drops,  businesses  will  reduce
volume ,  which means  the  impact  on   HR  

-less  RECRUITMENT/ SELECTION
-MORE TRAINING   TO  IMPROVE  EFFICIENCY/PRODUCTIVITY
-MORE INCENTIVATES   FOR   PRODUCTIVITY  GAIN

===================================================
-Interest rates & monetary policies
[ are  the  interest  rates    under control /  is there   a  sound  monetary  policies]

[ if  the  interest  rate  goes down/ the monetary  policies  are liberal,  
as the  demand  goes  up, businesses  will  add
expansion ,  which means  the  impact  on   HR  

-MORE RECRUITMENT/ SELECTION
-MORE  INDUCTION / ORIENTATION
-MORE TRAINING
----------------------------------------------------------------------------
[ if  the  interest  rate  goes  up ,  the demand  will  go  down
 businesses   will  downsize / cut cost  
 which means  the  impact  on   HR  

-less  RECRUITMENT/ SELECTION
-MORE TRAINING  for   efficiency / productivity  improvements
-EMPHASIS   WILL  BE  FOR  ''PAY  FOR  PERFORMANCE''.

===================================================
-Government spending
[is  government  spending  is  significant   and  is it   under control ]

[ if  the  government  increases  the  spending  on  infrastructures etc,
the  demand  goes  up  , businesses  will  add
expansion ,  which means  the  impact  on   HR  

-MORE RECRUITMENT/ SELECTION
-MORE  INDUCTION / ORIENTATION
-MORE TRAINING
==================================================
-Unemployment policy
[what  is  the  employment / unemployment  policies  of the government ]
=====================================================
-Taxation
[  has  the  taxation    encouraged  the  industry ]

[ if  the  taxation policies encouraged  the  industry,  businesses  will  add
expansion ,  which means  the  impact  on   HR  

-MORE RECRUITMENT/ SELECTION
-MORE  INDUCTION / ORIENTATION
-MORE TRAINING
=======================================================
-Consumer confidence
[ is  the  consumer  confidence   is   high/ strong and  if  not, why ]

[ as  the  consumer  confidence  goes up, more jobs are created,
demand  for  product/services   will go  up, businesses  will  add
expansion ,  which means  the  impact  on   HR  

-MORE RECRUITMENT/ SELECTION
-MORE  INDUCTION / ORIENTATION
-MORE TRAINING
==================================================
Social  

-Income distribution
[is there   balanced   income  distribution   policy ]

[ as  the  income level  goes  up and  income  distribution  improves,  
demand  for  product/services   will go  up, businesses  will  add
expansion ,  which means  the  impact  on   HR  

-MORE RECRUITMENT/ SELECTION
-MORE  INDUCTION / ORIENTATION
-MORE TRAINING
==================================================

-Demographics, Population growth rates, Age distribution
[ what  is   population   growth  and  why ]

[ as  the  population  level  goes  up and  age  distribution  improves,  
demand  for  product/services   will go  up, businesses  will  add
expansion ,  which means  the  impact  on   HR  

-MORE RECRUITMENT/ SELECTION
-MORE  INDUCTION / ORIENTATION
-MORE TRAINING
====================================================

-Lifestyle changes
[ are  there  significant  lifestyle   changes     taking  place--more  modernization/ why  ]

[ as  the  life style   goes  up and  more modernization   improvements,  
demand  for  product/services   will go  up, businesses  will  add
expansion ,  which means  the  impact  on   HR  

-MORE RECRUITMENT/ SELECTION
-MORE  INDUCTION / ORIENTATION
-MORE TRAINING
=========================================================

-Work/career and leisure attitudes
[ are  the  population      career  minded  and  are  seeking  better  lifestyle]

[ as  the  income level  goes  up and   workers  attitudes  changes,  
demand  for  product/services   will go  up, businesses  will  add
expansion ,  which means  the  impact  on   HR  

-MORE RECRUITMENT/ SELECTION
-MORE  INDUCTION / ORIENTATION
-MORE TRAINING
==================================================
-Education
[ what  are  the  education  policies /  is  it  successful ]

[ as  the  education level  goes  up and  income  distribution  improves,  
demand  for  product/services   will go  up, businesses  will  add
expansion ,  which means  the  impact  on   HR  

-MORE RECRUITMENT/ SELECTION
-MORE  INDUCTION / ORIENTATION
-MORE TRAINING
=======================================================

-Living conditions
[ is the  living  conditions   improving  fast  and  spreading  rapidly]

[ as  the  income level  goes  up and  living  conditions  improves,  
demand  for  product/services   will go  up, businesses  will  add
expansion ,  which means  the  impact  on   HR  

-MORE RECRUITMENT/ SELECTION
-MORE  INDUCTION / ORIENTATION
-MORE TRAINING
=========================================================
Technological  

==================================================
New inventions and development
[ are  new  inventions     being   encouraged  for  developments]

[ as  more  inventions are brought  out, more jobs are created,
demand  for  product/services   will go  up, businesses  will  add
expansion ,  which means  the  impact  on   HR  

-MORE RECRUITMENT/ SELECTION
-MORE  INDUCTION / ORIENTATION
-MORE TRAINING
======================================================
Rate of technology transfer
[ is  the  rate  of  technology  transfer  is  speeding  up ]

[ as  the  rate of  technology  transfer  speeds up, more jobs are created,
demand  for  product/services   will go  up, businesses  will  add
expansion ,  which means  the  impact  on   HR  

-MORE RECRUITMENT/ SELECTION
-MORE  INDUCTION / ORIENTATION
-MORE TRAINING
=========================================================
############################

  1. Basic question: How is organizational direction determined? Every organization takes on some direction, in terms of what customers/clients it serves and what functions it performs for these customers. This direction is often called its purpose, Mission or realized strategy. An organization's mission is a set of statements that define the exchange relationship between the organization and its stakeholders or claimants. More specifically a mission defines the population served and the function it fulfills or the need it satisfies for that claimant. This direction, or mission, may be the result of a deliberate planning process or it may emerge as the result of a set of incremental decisions.

THIS  ORGANIZATION   Realized Strategies are the result of a combinations of Purely Deliberate and Purely Emergent Strategies.

1.THIS  ORGANIZATION'S  Deliberate Strategy-

This process starts with an analysis of a company's current mission and strategies. The most popular tool used in this process is the SWOT (Strengths, weaknesses, opportunities, threats) model. The external environment in terms of opportunities and threats, is analyzed by examining threats to the company's current position and new opportunities (new customers, new applications, unfulfilled customers needs, etc.). The analysis proceeds by examining the company's internal environment in terms of its strengths and weakness. A mission and competitive strategy is formulated that matches opportunities with strengths and plans are made to strengthen areas of weakness.

The next step is to develop functional strategies that support the overall business level competitive strategy. Marketing, Human Resource, Financial, Operations, Information Systems, and R & D strategies are developed that support the business unit strategy. Finally, a control system (organizational structure) is designed to insure that operational decisions are made consistent with the business and functional strategies.

        2. Emergent Strategy
- Emergent Strategies are the result of incremental decision making that achieve some degree of consistency over time and launch the organization into a direction. When decisions are made or problems are solved, they have potential strategic impact.



  2. Levels of Strategy
        1. Mission/Domain- Before identification of strategy can occur, one must clearly identify the mission or domain of the organization.  The domain of an organization consists of the population it serves and the functions it performs (satisfies) for that population.  Sometimes the domain is defined in terms of products or services offered (rather than functions performed), but this tends to be more limiting because it defines the mission more in terms of means rather than ends.


        2. Corporate Level Strategy.

         
         1. Market Penetration STRATEGY
- Seeking increased market share for present products through greater marketing efforts

         2. Market Development  STRATEGY
- Introducing present products in new markets
         3. Product Development  STRATEGY
- Seeking increased sales by improving present products          
 
         4. Diversification STRATEGY
         1. Concentric- Adding new or related product lines
         2. Conglomerate- Adding new, but unrelated product lines
         
         
        3. Competitive or Business Level Strategy
- How should we compete in our chosen business(es)? Competitive strategies involve determining the basis of costumer or client decision making.  Generally, they are based on some combination of quality, service, cost, time, and quality of the experience.

         1. Cost Leadership Strategies
- With this strategy you are competing on price. Your various functional strategies all emphasize cost reduction. This is an effective strategy when the market is comprised of many price sensitive buyers, when there are few ways to achieve product differentiation, when buyers do not care much about differences from brand to brand , or when there are a large number of buyers with significant bargaining power.

         2. Differentiation Strategies
- Differentiation strategies rely on some basis of product differentiation such as flexibility, specific features, service, time and availability, low maintenance, etc. as the basis for competition. Product development and market research are generally necessary components of a differentiation strategy. Generally, a successful differentiation strategy allows a firm to charge a higher price for its product. Organizations generally need strong R & D departments with strong coordination between R & D and marketing departments. Human Resource strategies must place emphasis maintaining a competitive skill base and motivating employees toward the basis for differentiation.

         3. Focus or Niche Strategies
- A successful focus strategy depends upon an industry segment that is of sufficient size, has good growth potential, and it not crucial to the success of other major competitors. Focus strategies are pursued in limited markets in conjunction with cost leadership and/or differentiation strategies. Focus strategies are the most effective when consumers have distinctive preferences or requirements and when rival firs are not attempting to specialize in the same target segment.


         
        4. Functional Strategies
- How do organizational functional units contribute to the business level strategies? How can functional strategies be integrated to achieve competitive advantage?

         1. Marketing Strategies- How do we communicate our strengths to the customer? How do we identify customer requirements and changes in customer requirements?
         2. Human Resource Strategies- How do we recruit, train, develop, motivate, compensate, and place employees so that behavior is directed toward the competitive strategy and works to build competitive advantage?
         3. Financial Strategies- How do we secure financial resources necessary to carry our competitive strategy?
         4. Operations Strategies- How do we design our processes to produce products and/or service that meet customer requirements as specified in our strategy?
         5. Information System Strategies- How do we provide decision makers, at all levels, with information necessary to make decisions consistent with strategy?
         6. Technological (R & D) Strategies- How do we develop products consistent with customer requirements as specified in strategy?


Examine the role of developing countries  ON  THE  BUSINESS  PLOICY

The liberalisation of the domestic economy and the increasing integration of India with the global economy have helped step up GDP growth rates, which picked up from 5.6% in 1990-91 to a peak level of 77.8% in 1996-97. Growth rates have slowed down since the country has still bee able to achieve 5-6% growth rate in three of the last six years. Though growth rates has slumped to the lowest level 4.3% in 2002-03 mainly because of the worst droughts in two decades the growth rates are expected to go up close to 70% in 2003-04. A Global comparison shows that India is now the fastest growing just after China.
This is major improvement given that India is growth rate in the 1970's was very low at 3% and GDP growth in countries like Brazil, Indonesia, Korea, and Mexico was more than twice that of India. Though India's average annual growth rate almost doubled in the eighties to 5.9% it was still lower than the growth rate in China, Korea and Indonesia. The pick up in GDP growth has helped improve India's global position. Consequently India's position in the global economy has improved from the 8th position in 1991 to 4th place in 2001. When GDP is calculated on a purchasing power parity basis.
Globalisation and Poverty:
Globalisation in the form of increased integration though trade and investment is an important reason why much progress has been made in reducing poverty and global inequality over recent decades. But it is not the only reason for this often unrecognised progress, good national polices , sound institutions and domestic political stability also matter.
Despite this progress, poverty remains one of the most serious international challenges we face up to 1.2 billion of the developing world 4.8 billion people still live in extreme poverty.
But the proportion of the world population living in poverty has been steadily declining and since 1980 the absolute number of poor people has stopped rising and appears to have fallen in recent years despite strong population growth in poor countries. If the proportion living in poverty had not fallen since 1987 alone a further 215million people would be living in extreme poverty today.
India has to concentrate on five important areas or things to follow to achieve this goal. The areas like technological entrepreneurship, new business openings for small and medium enterprises, importance of quality management, new prospects in rural areas and privatisation of financial institutions. The manufacturing of technology and management of technology are two different significant areas in the country.
There will be new prospects in rural India. The growth of Indian economy very much depends upon rural participation in the global race. After implementing the new economic policy the role of villages got its own significance because of its unique outlook and branding methods. For example food processing and packaging are the one of the area where new entrepreneurs can enter into a big way. It may be organised in a collective way with the help of co-operatives to meet the global demand.
Understanding the current status of globalisation is necessary for setting course for future. For all nations to reap the full benefits of globalisation it is essential to create a level playing field. President Bush's recent proposal to eliminate all tariffs on all manufactured goods by 2015 will do it. In fact it may exacerbate the prevalent inequalities. According to this proposal, tariffs of 5% or less on all manufactured goods will be eliminated by 2005 and higher than 5% will be lowered to 8%. Starting 2010 the 8% tariffs will be lowered each year until they are eliminated by 2015.
GDP Growth rate:
The Indian economy is passing through a difficult phase caused by several unfavourable domestic and external developments; Domestic output and Demand conditions were adversely affected by poor performance in agriculture in the past two years. The global economy experienced an overall deceleration and recorded an output growth of 2.4% during the past year growth in real GDP in 2001-02 was 5.4% as per the Economic Survey in 2000-01. The performance in the first quarter of the financial year is5.8% and second quarter is 6.1%.
Export and Import:
India's Export and Import in the year 2001-02 was to the extent of 32,572 and 38,362 million respectively. Many Indian companies have started becoming respectable players in the International scene. Agriculture exports account for about 13 to 18% of total annual of annual export of the country. In 2000-01 Agricultural products valued at more than US $ 6million were exported from the country 23% of which was contributed by the marine products alone. Marine products in recent years have emerged as the single largest contributor to the total agricultural export from the country accounting for over one fifth of the total agricultural exports. Cereals (mostly basmati rice and non-basmati rice), oil seeds, tea and coffee are the other prominent products each of which accounts fro nearly 5 to 10% of the countries total agricultural exports.
Where does Indian stand in terms of Global Integration?
India clearly lags in globalisation. Number of countries have a clear lead among them China, large part of east and far east Asia and eastern Europe. Lets look at a few indicators how much we lag.
•Over the past decade FDI flows into India have averaged around 0.5% of GDP against 5% for China 5.5% for Brazil. Whereas FDI inflows into China now exceeds US $ 50 billion annually. It is only US $ 4billion in the case of India
•Consider global trade - India's share of world merchandise exports increased from .05% to .07% over the pat 20 years. Over the same period China's share has tripled to almost 4%.
•India's share of global trade is similar to that of the Philippines an economy 6 times smaller according to IMF estimates. India under trades by 70-80% given its size, proximity to markets and labour cost advantages.
•It is interesting to note the remark made last year by Mr. Bimal Jalan, Governor of RBI. Despite all the talk, we are now where ever close being globalised in terms of any commonly used indicator of globalisation. In fact we are one of the least globalised among the major countries - however we look at it.
• India, as a geographical, politico-cultural entity has been interacting with the outside world throughout history and still continues to do so. It has to adapt, assimilate and contribute. This goes without saying even as we move into what is called a globalised world which is distinguished from previous eras from by faster travel and communication, greater trade linkages, denting of political and economic sovereignty and greater acceptance of democracy as a way of life.
Consequences:
The implications of globalisation for a national economy are many. Globalisation has intensified interdependence and competition between economies in the world market. This is reflected in Interdependence in regard to trading in goods and services and in movement of capital. As a result domestic economic developments are not determined entirely by domestic policies and market conditions. Rather, they are influenced by both domestic and international policies and economic conditions. It is thus clear that a globalising economy, while formulating and evaluating its domestic policy cannot afford to ignore the possible actions and reactions of policies and developments in the rest of the world. This constrained the policy option available to the government which implies loss of policy autonomy to some extent, in decision-making at the national level.

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Examine the role of developed countries  ON  THE  BUSINESS  PLOICY
Components of Globalization
The components of globalization include GDP, industrialization and the Human Development Index (HDI). The GDP is the market value of all finished goods and services produced within a country's borders in a year, and serves as a measure of a country's overall economic output. Industrialization is a process which, driven by technological innovation, effectuates social change and economic development by transforming a country into a modernized industrial, or developed nation. The Human Development Index comprises three components: a country's population's life expectancy, knowledge and education measured by the adult literacy, and income.

The degree to which an organization is globalized and diversified has bearing on the strategies that it uses to pursue greater development and investment opportunities.

The Economic Impact on Developed Nations
Globalization compels businesses to adapt to different strategies based on new ideological trends that try to balance rights and interests of both the individual and the community as a whole. This change enables businesses to compete worldwide and also signifies a dramatic change for business leaders, labor and management by legitimately accepting the participation of workers and government in developing and implementing company policies and strategies. Risk reduction via diversification can be accomplished through company involvement with international financial institutions and partnering with both local and multinational businesses.



Globalization brings reorganization at the international, national and sub-national levels. Specifically, it brings the reorganization of production, international trade and the integration of financial markets. This affects capitalist economic and social relations, via multilateralism and microeconomic phenomena, such as business competitiveness, at the global level. The transformation of production systems affects the class structure, the labor process, the application of technology and the structure and organization of capital. Globalization is now seen as marginalizing the less educated and low-skilled workers. Business expansion will no longer automatically imply increased employment. Additionally, it can cause high remuneration of capital, due to its higher mobility compared to labor.
The phenomenon seems to be driven by three major forces: globalization of all product and financial markets, technology and deregulation. Globalization of product and financial markets refers to an increased economic integration in specialization and economies of scale, which will result in greater trade in financial services through both capital flows and cross-border entry activity. The technology factor, specifically telecommunication and information availability, has facilitated remote delivery and provided new access and distribution channels, while revamping industrial structures for financial services by allowing entry of non-bank entities, such as telecoms and utilities.

Deregulation pertains to the liberalization of capital account and financial services in products, markets and geographic locations. It integrates banks by offering a broad array of services, allows entry of new providers, and increases multinational presence in many markets and more cross-border activities.

In a global economy, power is the ability of a company to command both tangible and intangible assets that create customer loyalty, regardless of location. Independent of size or geographic location, a company can meet global standards and tap into global networks, thrive and act as a world class thinker, maker and trader, by using its greatest assets: its concepts, competence and connections.

Beneficial Effects
Some economists have a positive outlook regarding the net effects of globalization on economic growth. These effects have been analyzed over the years by several studies attempting to measure the impact of globalization on various nations' economies using variables such as trade, capital flows and their openness, GDP per capita, foreign direct investment (FDI) and more. These studies examined the effects of several components of globalization on growth using time series cross sectional data on trade, FDI and portfolio investment. Although they provide an analysis of individual components of globalization on economic growth, some of the results are inconclusive or even contradictory. However, overall, the findings of those studies seem to be supportive of the economists' positive position, instead of the one held by the public and non-economist view.

Trade among nations via the use of comparative advantage promotes growth, which is attributed to a strong correlation between the openness to trade flows and the affect on economic growth and economic performance. Additionally there is a strong positive relation between capital flows and their impact on economic growth.

Foreign Direct Investment's impact on economic growth has had a positive growth effect in wealthy countries and an increase in trade and FDI, resulting in higher growth rates. Empirical research examining the effects of several components of globalization on growth, using time series and cross sectional data on trade, FDI and portfolio investment, found that a country tends to have a lower degree of globalization if it generates higher revenues from trade taxes. Further evidence indicates that there is a positive growth-effect in countries that are sufficiently rich, as are most of the developed nations.

The World Bank reports that integration with global capital markets can lead to disastrous effects, without sound domestic financial systems in place. Furthermore, globalized countries have lower increases in government outlays and taxes, and lower levels of corruption in their governments.
One of the potential benefits of globalization is to provide opportunities for reducing macroeconomic volatility on output and consumption via diversification of risk.

Harmful Effects
Non-economists and the wide public expect the costs associated with globalization to outweigh the benefits, especially in the short-run. Less wealthy countries from those among the industrialized nations may not have the same highly-accentuated beneficial effect from globalization as more wealthy countries, measured by GDP per capita etc. Although free trade increases opportunities for international trade, it also increases the risk of failure for smaller companies that cannot compete globally. Additionally, free trade may drive up production and labor costs, including higher wages for more skilled workforce.

Domestic industries in some countries may be endangered due to comparative or absolute advantage of other countries in specific industries. Another possible danger and harmful effect is the overuse and abuse of natural resources to meet new higher demands in the production of goods.


The Bottom Line
One of the major potential benefits of globalization is to provide opportunities for reducing macroeconomic volatility on output and consumption via diversification of risk. The overall evidence of the globalization effect on macroeconomic volatility of output indicates that although direct effects are ambiguous in theoretical models, financial integration helps in a nation's production base diversification, and leads to an increase in specialization of production. However, the specialization of production, based on the concept of comparative advantage, can also lead to higher volatility in specific industries within an economy and society of a nation. As time passes, successful companies, independent of size, will be the ones that are part of the global economy.

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