Analysis using IS-LM model Article Example | Topics and Well Written Essays - 500 words

Analysis using IS-LM model - Article Example These are considered to be the vital ingredients of an economy; therefore, a change in each would lead to an effect in the economy, as either an economic turmoil or a positive encounter. According to the Globe and Mail, China has been on the frontline in making an economic improvement in each subsequent year. The country has been improving in its economy with each passing year, growing to be the second world’s biggest economy. This is a positive approach to the country’s economy, as it has stipulated methods of growth. Since 2009, the country has recorded its ever first lowest decline in economic growth. The country’s economic growth dropped from an average of 8.1% to a low of 7.6%. This was an occurrence that proved that the country’s economic growth would further deteriorate if not approached with the best economic measures. The economy had to encompass economic strategies that would revive its economic growth to a better position, just like the previous years. Therefore, the second biggest world’s economy would have to improve its approach towards economic growth to resuscitate the economic turmoil. The economic redundancy in the china republic could be explained by the IS-LM curve in a number of ways, which are closely related to the economy. First, the economic decline was forced due to the stagnant real estate investments. Many people had acquired investments in real estates, with a focus of making an increase in their investments. In many countries, real estate is considered a highly viable investment. Therefore, many people have been compelled o increase their investments in the sector, including the china economy. However, the supply for real estate escalated, while the demand remained the same. With such a prevalent situation in the market, there were little tradeoffs between the real estate owners and the buyers. This led to a reduction in the interest rates as most of the owners had to

Role of Front OfficeHSBC Case Study Example | Topics and Well Written Essays - 1250 words

Role of Front OfficeHSBC - Case Study Example A cross-currency swap is similar to a vanilla swap while giving each counterparty access to a different foreign currency. That is, one counterparty makes payments in one currency; the other makes payments in a different currency. Because there are two currencies involved (and therefore two nationals) the payments made not only include interest rate payments (on the set payment periods in the relevant currency on the respective principal) but also an exchange of principals at maturity and (optionally) at the start of the swap. In a typical inflation swap, two counterparties agree on a long-term contract based on an agreed inflation rate. If at the end of the contract, prices are higher than originally expected, the seller of inflation makes a payment to the buyer. If prices turn out lower than expected, the buyer pays the seller. An Interest Rate Collar is an instrument that gives you protection against rising rates by guaranteeing that you will never pay above a pre-agreed rate but at the same time sets a downside (floor) rate below which you cannot benefit if rates do fall further. It effectively creates an interest rate range with an upper and lower limit and depending upon where the floor level is set, will reduce or eliminate the requirement for a premium.

SWOT Analysis of Skoda

SWOT Analysis of Skoda Introduction. After began an industrial revolution from England in late 18th century most of Europeans and some other countries socially and economically changed. Such as they shift from home-based hand manufacturing to large-scale factory production. As a result of that people were moved to use of iron and steel, new energy sources, the invention of new machines that increased production. As well as this was mainly caused to continue the transports and communication sectors. Eventually there were certain values in the automobile industry. (Answer.com/03-02-10). That has got a rapid development; Such as land rover, jaguar from England and Audi from Germany were made fast as a result of the great industrial revolution. Two cyclists named Vaclav Klement; Vaclav Lourin started to make their own bicycle industry in the year 1895 whose country was Czechoslovakia from the Eastern Europe. Then they were succeeded to develop their industry by making cars, farm ploughs and air planes. They made a brand name for this multiple industry; â€Å"Skoda† one of the great invent of these cyclists. Nevertheless from 1925 to 1990 they couldnt be successful because of political changes, war, economical depressions. (www.skoda.co.uk/03-02-10) As a matter of fact they decided to merge with Volkswagen AG (VAG) came from Germany which has got the biggest manufacture of Europe for their products included Volkswagen, Audi, Skoda, CEAT, Lamborghini,bently and Bugatti. However in this report I am going to analyse and illustrate about Skoda automobiles case study from â€Å"The Times 100†. 1. According to the case study the key weaknesses that SKODA UK was able to identify through the SWOT analyse can be explained as follows; * Recently Skoda has 1.7 market shares in the world car market. So that its not enough to fit into highly competitive fragmented market. Because Mercedes Benz, Ford, BMW and other high branded products has succeeded in the car market. * Skoda doesnt have a good brand image about their products. Because customers think that their brands are out-dated perceptions as customers think that their products contain poor vehicle quality, assembly, design and materials. 2. Skoda did use enough strength to turn its brands weakness into an opportunity as bellows; * They started to make some products with differentiation according to the market as they have realized what the customer wants. Because they have got to know that there is a gap among their competitors. So that they have created a slogan named â€Å"The manufacturer of happy drivers†. (www.skoda.co.uk/03-02-10). The reason why they have created that slogan; they havent promoted their brand itself like their competitors but they do promote the customer experience what the customer needs. * They have decided to design cars with various ranges for the proper market segments. For instant; The Skoda Fabio is sold as a basic but quality â€Å"city car† The Skoda Superb offers a more luxurious, â€Å"up market appeal† The Skoda Octavia Estate provides a family with fun drive but also a great big boot.  · Considering with other products they introduced quality budget cars when comparing with their competitors. They have a good combination when we considering about their ranges of the car market.  · Their products lifecycles every steps are environmental friendly. This is mainly caused to increase their customer minds brand image and accurate EU legal procedures. For example; Their cars dont make much noise because they have created those with improved sound quality. They used to recycle their products as much as possible. They are using the latest most environmental-friendly manufacturing technologies for their manufacturing process. Their cars dont use much fuel according to the efficiency of those machines. So that the efficiency of those machines are exquisite when we considering about using fuel for them. 3. The Skoda has identified some external threats such as.  · According to the case study the main threat that Skoda facing is market competition come from their competitors. For instant if competitor launching cheaper and good quality products for the market. As an example 50 car makers active in UK car market. 2000 model selections have for the customers. So Skoda should active effectually to wining their market share from others.  · EU legal and environmental regulations also put extra preacher for the Skoda. As a resalt of that they should spend more money for their product life cycle rather than their competitors. Because they using environmental- friendly technologies and facilities are always more costly than others. Not only environmental regulation but also other legal rules also reason to increase production cost. Such as labours minimum wages, welfare, working hours, government taxations etc 4. According to my personal point of view about SWOT analyse, it is an enormously useful tool for any kind of organization. Because it has been facilitated for management to understand and decision- making for all sorts of situations. The SWOT analyses provide very clear pitcher to organizational internal strengths, weaknesses, opportunities, threats for management. Swot analyse is scheduled to know how acts the internal factors for a business. Because internal influences are some factors which preceded a business for the success. As they can obtain competitive advantages. Product differentiation and cost leadership are known as competitive advantages. In the other hand SWOT analyses can be used inside a business in different ways to gain different perspectives. Such as ; (Robson W. /1997) (www.tutor2u. Net/2010). The way how they contribute their sales. Making an unbreakable partnership. Finding an alternative way to change the supplier. Adding some investment opportunities. How to launch for the new market and also how they use their business ideas for the improvement and success of their business. In the view of the above report the SWOT analyses can be explained as a compulsory tool for the modern business world. I said so because this is the unique tool and the only way that helps to create a perfect internal environment. References Answer .com /03-02-10/ Industrial revolution/ [online]Available From http://www.answers.com/topic/industrial-revolution Wendy R. , [1997] Strategic Management Information Systems [secand edition], Financial times, Prentice Hall , London, UK Www.skoda.co.uk/ About Skoda/ [online] Availble From http://www.skoda.co.uk/aboutskoda.aspx www.tutor2u. Net , Strategy- competitive advantage [online], Available From http://tutor2u.net/business/strategy/competitive_advantage.htm Bibliography Quick MBA , [1999-2007], Strategic Management [online] Available From http://www.quickmba.com/strategy/swot/ Rugman A., Collinson S. , [2006], International Business (4th Edition), Financial Times ,Prentice Hall , London ,UK

Basic Discription Of Microbiology :: essays research papers

BASIC DISCRIPTION OF MICROBIOLOGY They’re out there! You can’t see them but they can see you. Right at this very moment they are living on and in your body, and there is nothing you can do about it! This may sound like the beginning of a horror movie, but it isn’t. It is actually a very basic description of a very broad subject: microbiology. Microbiology is a complex subject that spans out into a variety of areas. I am a person who is entering the health care field, and it is inparitive that I know the subject of microbiology and how if effects the world in which we live. Part one of this essay will deal with defining bacteria, viruses, fungi, microbes, and pirons. Part two of the essay will focus on indigenous micro flora that is on and in the body, and part three will describe the structure and replication procedure of viruses. Part one As stated by Prescott, Harley and Klein (1990) microbiology is the study of organisms that are usually too small to be seen with the naked eye. According to Jenson and Wright (1989) a pathogen is a disease-producing organism. They also describe microbes as organisms that are often too small to be seen without the aid of a microscope. Microbes, also known as microorganisms, can be broken down into four classifications that are bacteria, viruses, fungi, and protozoa. Prescott, Harley & Klein (1990) describe bacteria as prokaryotic cells (cells that lack a true membrane enclosed nucleus). Bacteria are both small and simple in structure; they usually are between o.5 and 5cmm yet they have many characteristic shapes and sizes. Some bacteria are circular or oval shaped, they are known as cocci bacteria. Other bacteria are rod-shaped, they are known as bacilli bacteria, and some bacteria are spiral and coil-shaped and it is know as spirilla bacteria. Engelkirk & Burton (1979) state that bacteria can reproduce asexually by simple division of cells and some bacteria reproduce sexually by conjunction. A bacterium is a waste producer of products and secretions. This allows pathogens to invade their hosts to cause disease some of these harmful diseases are Scarlet fever, an acute illness, characterized by a reddish skin rash, which is caused by systematic infection with the bacterium streptococcus. St. Anthony’s Fire is another bacterial disease. â€Å"St. Anthony’s Fire which is an acute superficial form of celluitus involving the dermal lymphatic, usually caused by infection with streptococci and chiefly characterized by a peripherally spreading hot, bright red, oedematous.

A Review and Analysis of Ryanair and Flextronics Operations

It will discuss the four stages In the Hayes and Wheelwright's model of operations contribution. This will take Flatirons as an example. Ryan Ryan is one of Rupee's largest low cost airlines, which operates more than 1,400 flights per day from 44 bases across 27 countries with a fleet of 272 Boeing 737 aircrafts. They operate with a team of 8,000 personnel and have carried around 73. 5 million passengers during 2011 with the average fare of 39 Euros. (Ryan official website) The below chart, figure A, from Ryan official website shows the passenger growth in millions from 1995 to 2007.Operations Strategy In every organization, operation strategy provides a framework to determine how the organization should pretzel and utilize Its resources to achieve Its performance objectives and gain advantage to Its competitors In the pre-defined market place. In another word, once a company defines it's role in business and identifies its performance objectives then it needs a set of framework and guiding principles for decision makers, to ensure that all the objectives are met. These frameworks and guidelines are the principles of what is known as operations strategy.In today's easiness world, operations managers are faced with various challenges regarding development of effective strategies in line with organization's -mission and vision- and to properly implement those strategies. Ryan Operations Strategy As a low cost airline, Ryan overall framework is to provide air travelers the option of flying to vast number of destinations with the minimum fee possible. To attain that In the costly business environment Like the allure business, Ryan needs to carefully adopt operations strategy to malignant It's basic services while lowering the costs as much as possible in different operation areas.It is important to understand Market qualifiers, in order to survive in the market. The terms Order-winning and qualifying objectives will be discussed later. Hence in general the efficien cy of the Ryan operations should support it's market positioning, as a low-cost airline, and the following are some key elements on how RA manages the processes and implements the operational factors to deliver its results. * Keeping turnaround time at minimum.This has been achieved partly due to improved employee productivity, which could be the result of intense staff training and development, and partly because there are no meals and sees luggage to be loaded on to the plane. * Aircraft equipment cost. Using identical aircrafts (Boeing 737) in large quantities helps Ryan to reduce significant cost in repair, services and storage of aircraft parts. It also gives the company the advantage to negotiate the price of purchasing aircrafts and parts coming all from single supplier.Apart from those, using identical aircrafts offer reduction in staff training cost as well as flexibility in the scheduling of crew and equipment. * Airport access cost. Airport landing and services fees are m uch lower in secondary airports and could save the airline a lot of none by diverting flights to these airports. Also diverting passenger traffic to these airports gives Ryan the advantage to negotiate costs with airports by providing high passenger flow. * Customer services costs.Ryan has developed its own Internet booking service facility, which sells tickets directly to the costumers, offering lower prices by cutting travel agency commissions. Using electronic services will give an advantage to management to access a range of data for future planning and service enhancement. Apart from that, Ryan has entered into agreements with third party contractors at certain airports for assenter and aircraft handling, ticketing and other services that can be provided in a more cost efficient way by third parties. Personnel productivity Ryan endeavors to control its labor costs by continually improving the productivity of its already highly productive work force. Compensation for employees e mphasizes productivity-based pay incentives, including commissions for on-board sales of products for flight attendants and payments based on the number of hours flown by pilots and cabin crew personnel, within limits set by industry standards will stem to higher personnel engagement and productivity.Apart from the mentioned bullet points Ryan air's management, reviews the day-to-day experience of the company regularly to modify and refine their strategic decisions in order to abide to the company's policy on customer services. SOOT Analysis Strength Ryan has been known as Rupee's first low cost airline, which is the company's strongest selling point. Adopting low cost strategy helped Ryan to rapidly increase of customers and expansion of their operations. Addressing to the marketing trends by adopting Internet services like booking and ticketing has changed the customer behavior and has provided wide range of clients for them.Last but not least, rapid expansion of flight routes and aircrafts, has provided more frequent flights and destinations to air travelers. Weaknesses weaknesses too. Restricted customer service, deceiving advertisement and low quality services are among those weaknesses, which has lead to bad publicity for the company. Opportunities Ryan, according to its strength, has opportunities to still dominate the European airline industry in term of providing more quality service standards and maintain its positioning as a low cost airline.By determining the latest trends in airline industry and meeting the up to dated demands of customers they are capable of gaining more customers to be the number one airline company in the whole region. Threats Given the competitive nature of airline business, Ryan is faced with the inevitable threat of competition. To tackle that, Ryan needs to constantly provide highly effective and efficient new products with higher quality services comparing to competitors. Strengths: Rupee's first low-cost airline IT Servic es Rapid Expansion Strengths: Weakness: Restricted customer servicesLow quality service Also to maintain the advantage, Ryan needs to increase its destinations to cover more customers by flying to new regions and at the same time increase its customer service to ensure passenger's satisfaction. Opportunities: Providing quality service standards Defining new IT service standards Expansion to more destinations Opportunities: Competition Reduction of passengers in airline market Threats: Figure B: Ryan operations Strategy SOOT Analysis ‘Market qualifiers' and ‘order winners' Qualifying and order-wining factors are ways to distinguish a company from its imitators within the market.Order winning factors are mainly those aspects, which contribute to promote the service or product to the highest level of costumer satisfaction and help the business to stand ahead of other competitors in the market. On the other hand, qualifying factors are those aspects of the service provider, which should be met to attain the consideration from costumers for business. Costumers needs and wants along with competitors market standards define weather a factor is a qualifier or a winner.Market qualifiers and order winners that would apply to a owe-cost airline market are as follow: Qualifying Objectives I Order winning objectives I Low cost fares I Free minimum luggage services I Covering wide destinations I Variety on-board service (food, beverage, pillow, blanket) I Reasonable quality ; comfort I Priority boarding I Safety ; emergency protocols I Free on-board entertainment I Direct booking ; ticketing services I Pre-assigned seats for passengers I High-frequency flights I Ground services on departure (bus services to airport) I In-flight food ; beverage availability with charge I Ground services on arrival (car hire, I Luggage services with charge I More comfortable seating I transportation) I Internet and communication services on board I Flatirons Flatirons is an electr onics manufacturing services provider, which specializes in supply chain services such as packaging and transportation, as well as design, engineering and after sales services within several markets including automotive, computing, consumer, industrial, infrastructure, medical and mobile.Based in Singapore, Flatirons is behind well-known brands like -but not limited to- HP, RIM, Motorola, Microsoft, Dell, Cisco, Sony Ericson and IBM. (Flatirons official Website) Flatirons Operations Strategy As one of the global leaders in design, manufacturing and distribution and after sales market services, Flatirons operations strategy must be designed in a way to address the needs for low-costs, responsive and flexible product and services. To achieve this Flatirons has adopted the following strategies: * Extensive network of design, manufacturing and logistics facilities. These extensive networks are placed in the world's major electronic markets helping Flatirons to address each customer's th at simplify global product development and supply processes.Through his, Flatirons is able to go through the life cycle of the products from its initial design to volume production, test cycles, distribution and post sales services in a more efficient manner. * Integrated industrial parks. These industrial parks are positioned in low cost regions close to the Flatirons costumers and world markets, giving them the advantage of delivering the products and services in a very large scale and as cheap as possible. Also Flatirons encourage its own suppliers to position in these industrial parks for easier access. Through this strategy Flatirons reduce major cost of shipping, handling and storing products.Hayes and Wheelwright's four stage of operation contribution Professor Hayes and Wheelwright developed a four-stage model to evaluate the role and contribution of operations function. These stages are as follow: 1. Internal Neutrality: Lowest level of contribution by operations function. It does not react upon competitive success and the aim is to avoid mistakes. 2. External Neutrality: At one level higher, in this stage the company begins to look outside and compare itself with its competition. The objective may not be to be the best but at least to implement the best practice with regards to other market players. . Internally Supportive: Operations at this stage are among the bests in their market. Developing appropriate operations resources to support company's strategic goals is at the most priority. 4.Externally Supportive: At this stage the operations functions are designed to provide a foundation for competitive success. Adopting a long-term view, considering the future changes in the market and consumer behavior helps the company to be one step ahead of the market. The four-stage model of operation contribution Looking at Flatirons and considering the four stages of operations contribution, it is Lear that the operations function of Flatirons is a very good example of stage 4 â€Å"externally supportive† Operations. As mentioned earlier, through an extensive network of design, manufacturing and after-sale services, Flatirons can deliver its services at the most appropriate locations, which shows in depth knowledge of costumer behavior understanding.

Food Product or Ingredient Development Scientist Essay

Develop tastier, healthier, less expensive, and more convenient foods and ingredients. Blend the science of food with the culinary arts to satisfy consumers and your own creativity. Food Microbiologist or Food Safety Expert Investigate the source of the latest food-borne illness outbreak, create a new rapid test for pathogens, develop a better food processing method. Or work as fermentation scientist, helping optimize and control beer-making, cheese-making, and other food fermentations. Food Chemist Design and apply methods to analyze the chemical nature of foods. Maybe your specialty would be natural food colors or flavor chemistry. Maybe you would manage a lab testing the nutrient content of foods. Your company needs to measure sulfites in wine or antioxidants in tea – and they need you to help them do it! Perform research for structural upgradation and upkeep of food packages in storage room. Analyze and develop new sources of compounds like proteins or sugar substitutes through efficient research. Inspect various factors which generally influence flavor and texture and food items. Perform analysis and design new processing methods for food package and develop safer food products. Coordinate with technicians, scientists and experts to complete work efficiently and within timeframe. Review raw ingredients for maturity of food processing and ensure safe preservation of high quality products. Prepare all production specifications and ensure fixation of processing  operation. Evaluate all processes and storage upkeep in factories plus maintain good performance record in coordination with engineers. Prepare test samples of food products and supervise exceptional quality maintenance in food processing department. Maintain product quality and standards of healthcare service inclusive of improvement to quality of products. [State the Name of Career Researched] Overview of Career: [Provide a description, in your own words, of this career. The 2-3 paragraph overview does not need to be comprehensive, but must include sufficient detail and so explain the career. You must write the overview using your own words, do not copy and paste from another source.] Typical Duties or Activities: [Briefly describe the types of activities someone holding this career will perform on a daily (or routine) basis.] Work Conditions: [1. Describe the physical environment where a person in this career typically works; 2. Describe the physical expectations on the employee; 3. Describe a typical Work Schedule.] Types of Positions Available / Specializations Within Career: [Provide a list of the common types of positions a person in this career may hold. Be sure to list any typical starting positions.] Types of Degrees, Certifications, Licenses, or Training Required: [Provide a list of any minimum required degrees, certifications, or licenses a person must hold before entering this career field; list any common degrees, certifications, or licenses typically required for advancement.] Special Skills (or Qualities) Needed: [List any of the skills or traits a person needs to be successful in this career.] Job Outlook (Growth): [Provide a description of the Job Outlook / Growth Potential for this career field.] Salary Range / Potential: [List at least the entry and average wage for someone in this career. You may wish to compare the local ranges to a regional or national average.] Advancement Potential: [List any advancement potential or other areas of future promotion and, if known, how much experience or additional education may be required.] Professional Associations: [List any Professional Associations, Unions, or Organizations that support this career or that someone working in this career may wish to consider joining.] Similar Occupations: [List 3-4 careers/jobs that are similar or related to this career.] Additional Research Topics: [Use this space to list any additional information about this career that you found and feel will be helpful to you going forward or that you wish to find out more information regarding to help you decide if this is the correct career field for you.] Why This Career? [Provide an explanation, in your own words, of why you choose this career. The 2-3 paragraph explanation needs enough detail to describe your interest in this career and why you think it is a good option for you based on the information in your Career Interest Survey and this Career Profile. You must write the overview using your own words, do not copy and paste from another source.] References: [List any and all references (websites, publications ) used in this Profile. References must be cited using MLA or APA formats.]

Analyzing Toyota Motor Corporation using Nadler Tushmans Model

Analyzing Toyota Motor Corporation using Nadler Tushmans Model The Nadler Tushman’s model is a model that is used to analyze an organization in terms of its inputs, outputs as well as throughputs. This model was developed with consistency to the open systems theory. Nadler Tushman’s model was developed in such a way that it gives more specific details, thus it is more favourable in analyzing an organization compared to the open system theory.Advertising We will write a custom essay sample on Analyzing Toyota Motor Corporation using Nadler Tushman’s Model specifically for you for only $16.05 $11/page Learn More The model was developed in the 1980s by two men namely, M. L. Tushman and David A. Nadler. This model gives specifications on the critical inputs required by an organization, the critical outputs, as well as any transformational processes that may be required and that characterize the running of an organization (Nadler and Tushman 37). The principle under which this model was developed stat es that the performance of an organization is determined by four elements. The four elements are: culture, people, structure, and task. The four elements need to be compatible with each other to ensure better organizational performance. When the compatibility is high, the performance of the organization is also greater. Source: Mind Tools Ltd (para. 6) This model emphasizes more on the transformational processes that have the ability to improve the performance of an organization. Change is very critical for any organization, especially in the current business environment. Competition has been at the highest level more than any other time in the past. These act as stimuli to initiate changes in the way organizations do their businesses. For the best change to be implemented, it is important to first understand the critical organizational inputs and the critical outputs. It is important to note that the critical inputs and outputs determine the performance of the organization. Once t he organization has the right inputs, it is more likely to have better outputs and register better performance.Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More When analyzing an organization using the Nadler Tushman’s congruence model it is important to consider the key individuals who are involved in running the organization, the components of the environment, the strategies that the organization follows, as well as both formal and informal systems. These determine the output of an organization. This essay will analyze Toyota using the Nadler Tushman’s congruence model. The Environment Each organization exists and operates in an environment. There are both internal and external environments that influence the performance of an organization. While the managers and leaders of an organization have the ability to control the internal environment, the external environm ent is beyond their control despite the fact that it also has major impacts on the organizational performance. Among the factors that impact the running of an organization and that are external include institutions, groups, events, as well as individuals. Legal aspects, economic and social factors also make up the external environment. It is important to note that customers also play a key role in the external environment of any business organization. If the customers are few, then the organization is likely to have a poor overall performance. Therefore, it is the responsibility of the managers and leaders to ensure that they put in place strategies that have the ability to attract a large number of customers to increase the level of sales and income simultaneously (Nadler and Tushman 40).One of the ways to assess the performance of an organization is its profitability. Other environmental factors that should also be considered include, but are not limited to technology, competitors and labour unions. Toyota is a motor vehicle producing company that is based in Japan. The company was founded by a man known as Kiichiro Toyoda in the year 1937. Toyota is among the largest companies in the world, ranking 11th in terms of revenue. Toyota ranks third, after General Motors (GM) and Volkswagen Group (Toyota Motor Sales para 1). The company’s performance is influenced by a number of environmental factors, both internal and external. For instance, there is a lot of competition in the automobile industry in the world today. Companies that deal in automobiles are emerging at a high rate, while the existing ones are continually coming up with ways of improving their business. Competitors have the ability to impact the performance of the organization. When the competition is very high, the performance of Toyota is likely to go down and vice versa. Competition might call for implementation of a transformation process in order to maintain the performance. Toyota is a multinational company, thus it has many competitors and it should be on toes strategizing how to deal with the competition. Among the competitors include General Motors, Ford, Volkswagen, KIA, Chrysler, Honda, Daimler and Mercedes. It is important to note that the competitors could either be a group of subsidiaries or individual companies.Advertising We will write a custom essay sample on Analyzing Toyota Motor Corporation using Nadler Tushman’s Model specifically for you for only $16.05 $11/page Learn More Events that happen outside the company are also likely to affect its performance and the desired outcomes. Events such as promotions from competitors are likely to pull customers away and negatively affect the performance. There are other risky events that are likely to affect the company’s business. For instance, the earthquake that happened in Japan in the year 2011 had significant effects on the general company’s economy. This ea rthquake contributed to the suspension of operations by Toyota as a result of the damages that it caused to the country’s infrastructure, transport systems and energy supply. The tsunami and the nuclear power plant accidents, among other events, are also likely to affect Toyota’s business. Such events are not predictable, yet they have very significant effects on any business organization. Economic and social environments also have the ability to affect the ability to affect the business of Toyota. The economic environment affects the business in a way, whether the economic environment is favourable or unfavourable. Toyota is affected by both the economic situation in its home country Japan and in the international market. Among the factors that affect the economy include taxation rules, trends in the international trade and markets, the disposable income of the citizens, as well as the market forces of demand and supply. The exchange rates and inflation rates also aff ect Toyota’s business since they influence its income (Müller 54). The world has been in a state of economic growth slowdown over the last couple of years. Toyota is among the companies that pillar the world’s economy. Therefore, its performance highly influences other industries such as the steel business, plastic industry, as well as the glass industry. The slow growth of the economy affected the Toyota business and the related industries. This led to changes in HR policies of Toyota in order to cope up with the economic situation. Among the policy changes that were implemented include recruitment policies where the company started recruiting staffs that have the ability to help it perform well in such economic situations, layoffs due to difficulties in paying too many personnel owing to the reduced income earned, and relocation of staffs among other changes. Technological factors are also part of an organization’s environment. There has been rapid technol ogical development that has emerged over the last few decades. This has facilitated innovation in industries and companies. Technological development has a significant effect on the transformation process of an organization.Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Toyota has made huge investments in technology. This has been a key factor that has contributed to the company’s global success. The company has always pioneered technology in the automobile industry. Toyota is known for its dedication in technology, having been associated with numerous innovation initiatives, funding research projects, as well as initiating replacement mechanisms. The technology trends that go on in other companies that deal in automobiles have the ability to impact the transformation process of Toyota (Müller 55). For instance, competitors are likely to take competitive advantage over Toyota if they come up with a new innovative strategy. As a consequence, Toyota will lose some of its customers and revenues. For it to avoid such losses, Toyota will have to develop a transformation strategy that will help it maintain its position in the market, or even better its current position. Companies should implement transformational strategies that will help them cope with the fast hanging technological environment. Toyota might be required to implement some HR policy changes in order to deal with the technological changes. The management will be required to hire people who have the ability to transform the organization in a manner that the company will keep up with the trends in technology. Strategy As mentioned earlier in this article, Toyota is one of the largest companies in the world in terms of revenue and size. Toyota has been able to penetrate most markets globally. It is never easy for a multinational organization to make it in the international market, especially if it does not have a good strategy. The success of Toyota in the international market is an indication that the company has a good strategy that has helped in boosting its business and markets its products. It is worth noting that the strategies that a multinational organization applies in its business vary from country to country since each of the countries in which it operates has its own culture and needs. Therefore, the organizational success in the global market will highly depend on the company’s ability to lay out the best strategy in each of the various countries in which it operates. This calls for leaders and managers who are highly knowledgeable and skilful. Toyota Motor Corporation has able leaders who have been able to align its strategy with its business objectives. Toyota’s goal is to pursue a harmonious growth and ensure that its profitability grows consistently. All strategies are developed to address the company’s goal, while all employees as well as managers pursue their duties in line with the achievement of this objective. The mission statement of an organization is important in developing its strategy. Any strategy that is put in place should be guided by the company’s mission statement (Nadler and Tushman 40). The mission statement for Toyota is to develop and provide innovative, safe and outstandi ng high quality products and services that meet a wide variety of customers demands to enrich the lives of people around the world† (Toyota Motor Sales para 1). Therefore, the strategies that the company develops should embrace innovation and ensure that the products are of high quality. Every customer wishes to get the best value for the money they pay. In order for Toyota to maximize consumer satisfaction, it has to come up with strategies on how to produce products that are innovative and of high quality. Cost is crucial; therefore, the strategies developed try to minimize cost as much as possible. Consumer satisfaction is higher when customers get the best quality at relatively low price. Toyota came up with a principle that is popularly known as ‘the Toyota way’ that was aimed at making the values and beliefs of the company clear of all employees. All employees are supposed to act in a manner that they embrace these values that are also the principles that gu ide Toyota. Knowledge is vital for innovation to take place. As a result, Toyota employees knowledgeable personnel as one of its strategies to ensure that it produces high quality goods that are innovative and that maximize consumer satisfaction. The Toyota Motors Corporation prioritizes North America and then Japan at second, although recently China has become one of the top priorities in developing Toyota’s global strategy. China is considered not to be a very mature automobile market, but it is starting to thrive. Toyota has come up with a three stage strategy that it will use to penetrate the China market. The first step will be to establish a network of sales in China and promote its brands. This is a strategy that is aimed at making the potential customers aware of Toyota brand and its products. Customers are known to buy most products that they are aware of. Therefore, establishing sales networks and promotion will be important in making the brand known to locals. The next step would be to establish bases where the company will manufacture auto parts. This will help in reducing the costs of operation and ensuring effective supply chains. An effective supply chain gives the company competitive advantage and enhances marketing (Müller 57). The third and final strategy that the company is to apply in China is to form joint ventures with the local companies that deal in automobile production. This will enable Toyota to market itself easily. It will also reduce the cost that will be spent for marketing the company. It is easier for Toyota to win the loyalty of Chinese customers by forming joint ventures with local organizations. One of the general strategies that Toyota applies in its business is that it has a management system that is involved in making marketing and other decisions. The management system is also aimed at ensuring that the company’s operations run as expected to facilitate the achievement of its goals and objectives. Leade rship is crucial in the success of any organization. Leaders facilitate transformational processes, as well as any other change that can improve the performance of an organization. Toyota’s use of a management system that facilitates its decision making processes is a strategy that helps it improve on its performance and facilitates transformational process (Müller 54). Good decision making is an input that can positively impact an organization. The output of good decisions will be success. The other strategy that the company applies is that it has a system that establishes a problem solving platform that gives the best solution to problems that are likely to affect its business. This system also develops measures to prevent any problem that is likely to affect the company’s business. When a problem is detected, it is flagged to the relevant department or individuals for a solution to be found. The departments come with the best solution to the problem. This keeps the Toyota Motor Corporation in the competition. Tasks This refers to the various duties that the organization and its parts are required to perform in order to facilitate transformational process and the success of the organization. An organization is made up different parts, each of which has its own rules that it is supposed to execute. Proper execution of tasks will lead to success of the organization, while poor task performance will negatively impact transformational processes. Tasks are aimed at continually improving the organization in general and improving the quality, as well. It is important to ensure that each individual is assigned the task he or she can best perform in order to execute tasks accordingly (Nadler and Tushman 40). The issues of division of labour and specialization best apply here. Labour duties are divided according to specialization of different employees, departments and parts of an organization. Toyota Motor Corporation is a company that has various o perational parts, all of which are aimed at achieving the same objective. The objective is to constantly ensure growth of the company and consistent increase in profitability. Automobile manufacture is an industry that has to coordinate the various parts for its success. For instance, different parts of a vehicle are manufactured differently and then assembled to make up the moving vehicle. Once the vehicle is completed, it has to go through the supply chain and then to the marketing department. All these departments are expected to perform their tasks with a similar objective (Toyota Motor Sales para 2). In performing their tasks, employees of Toyota Motor Corporation are guided by the principle of: â€Å"The Toyota Way†. Each employee is aware of the tasks that they are supposed to play in order to ensure that they adhere to this guiding principle (Müller 53). Employees are made to understand the values and beliefs of the company. They are, therefore, expected to embrac e these beliefs in performing their duties. It is imperative to note that all tasks at Toyota are standardized under this principle. Every member of the organization is aware of the duties they are supposed to carry out, in spite of the country in which they operate. As a result, an engineer of the Toyota Company, for example, will find identical processes in whichever company he or she walks in throughout the world. The company produces products that are of similar design, in additional to the similar processes. The manufacturing equipment that is used is also similar. It can, therefore, be said that this principle influences the transformational processes of the company. It is an important part of the organizational input. The tasks that are performed under the principle are the inputs that have made Toyota what it is today. It is because of these tasks that the company has become among the best in the world. Formal systems These refer to the structures, as well as the methods and processes that an organization uses in order to ensure that each department and each individual performs their duties accordingly in order to achieve the required goals (Nadler and Tushman 40). The strategies are usually written down, and each employee and member organization is aware of what they are supposed to do. There is a formal structure that everyone is expected to understand at Toyota. The employees follow the structure in performing their duties. The structure determines the tasks that each individual is supposed to carry out. In addition, the formal system defines the way each objective should be achieved. The key individuals People form a very important part of an organization. The success of an organization depends on the key individuals and their knowledge and ability to produce results. Work has to be done for an organization to succeed and it is the people who do that work (Nadler and Tushman 45). Therefore, there is no work that can be done without the people and n o success for the organization can be achieved. At the same, time no transformational process can take place. There are some activities that are critical to the organization and which have major effects on its performance. One should know the type of people who performs such tasks. In addition, it is important to ensure that such critical tasks are performed by people who have the right skills and knowledge. For instance, decision making is a very major task for any organization. A wrong decision will have devastating results for the organization, while a good decision will deliver the required output. Therefore, decision makers should be able people who will reduce or eradicate the risks associated with decisions through making the right decisions. One should first know the people who they interact with when evaluating the people in an organization in order to perform a certain task. Then it is important to know the skills possessed by the different personnel. Demographics and empl oyee preferences are also an important factor to consider (Mind Tools Ltd para 10). People are the key to the organizational success at Toyota. Innovation is vital in the automobile industry, and only the people can guarantee innovation. Employees at Toyota operate in an environment where they come across a lot of challenges (Müller 53). The employees are required to constantly develop new ideas to make the organization better each day. The company believes that the employees hold the key to its success and they are considered as key individuals. Employees are not viewed as just hands for doing the jobs, but they are viewed as sources of knowledge and wisdom. As a result, Toyota invests heavily in people. The key leaders who are responsible for the running of the company are: the president, the vice president, the chairman, and the board members, as well as various managers and directors. All these people together with the rest of the employees have to interact to produce Toyota ’s output. This is what facilitates the company’s success. Issues that the organization should address Toyota ranks as one of the best companies in the world in terms of performance. The company has been able to address most of the issues that might hinder its success. The company has able leaders and employees who constantly come up with innovative ideas that have kept the company going for a long time. However, there is one issue that needs to be addressed to maintain the company’s competitiveness. The automobile industry is very competitive with different companies, all striving to get a large share of the market. This is an issue that Toyota needs to focus on since it might lead to loss of customers to competitors. The issue of competition holds a significant impact on the company’s success. Technology is increasingly becoming important for the competitiveness of automobile companies. It is important to note that other companies are working tirelessly to improve their technology and become the best, despite the fact that Toyota is a leader in technology and innovation. Toyota should, therefore, step up its innovation in order not to lose its competitive advantage. Aspects that have difficulty understanding Toyota is a multinational company with operations in different countries across the world. Managing a multinational is one of the most challenging tasks since the company has to operate in different culture. In spite of this, the company is still expected to produce results. Different cultures have different preferences and different buying behaviors. Therefore, it was difficult to understand how vastly Toyota manages to implement its principle of â€Å"The Toyota Way† in all the nations where it operates, despite these destinations having different cultures. This principle gives a standardized way of performing tasks in all Toyota companies across the world. One might need to access the company physically to conduct an interview to help in this analysis. Alternatively, accessing the finest details in the company website might also be helpful, although it is not easy to get all the details through this method. Mind Tools Ltd. â€Å"The Congruence Model: Aligning the Drivers of High Performance.† Mind Tools. 2013. Web. https://www.mindtools.com/pages/article/newSTR_95.htm Müller, Christoph. Case Study and Comparative Strategic Analysis of Toyota and Ryanair: The Key Differences in the Operations Strategy of Manufacturers and Service Firms in Terms of Process Design, Supply Chain, Human Resources, Capacity, Innovation and Quality Management. München: GRIN Verlag GmbH, 2011. Print. Nadler, David and Tushman Michael. â€Å"A Model for Diagnosing Organizational Behavior.† Organizational Dynamics 1980. 9 (2), 35-51. Print. Toyota Motor Sales. Explore Toyota. 2013. Web. https://www.toyota.com/

Discuss how Carol Ann Duffy and Sheenagh Pugh explore Essay Example

Discuss how Carol Ann Duffy and Sheenagh Pugh explore Essay Example Discuss how Carol Ann Duffy and Sheenagh Pugh explore Paper Discuss how Carol Ann Duffy and Sheenagh Pugh explore Paper Essay Topic: Carol ann Duffy Poems The concept of journey is one which pervades much of both Carol Ann Duffys and Sheenagh Pughs poetry, in literal and allegorical terms. Various devices and imagery are used in order to convey this concept, having varying effects on the reader, which will be analysed in the subsequent paragraphs.  The theme of travelling is present in Originally by Duffy, in which physical translocation (specifically emigration) is depicted through such nouns as country, emigration, and accent, and such verbs as rushed back, fell through, and leaving you standing. The latter phrase features two present continuous verbs, suggesting a sense of progression which contradicts the actual meaning of the verb standing, which functions as an adjective, communicating a lack of movement. This dichotomy reflects Duffys own unease regarding her own relocation during her childhood, in which she moved from Glasgow, Scotland to Stafford, England when she was six years old. This had a profound effect on her poetry, with references to travel palpable not only in the current poem but also in others like In Mrs Tilschers Class (You ran through the gates, impatient to be grown), Who Loves You (travelling in those mystical machines,) River (At the turn of the river the language changes), The Way My Mother Speaks (The train this slow evening / goes down England), and In Your Mind (The other country). Moreover, enjambment is utilised throughout the poem; for example,  Do I only / think / I lost a river, culture, speech in order to visually represent flow, reflecting the physical sense of movement in a journey. However, use of enjambment (often followed by caesura) also interrupts the meaning of the lines since the words are not contained on one line therefore their meanings are spread across multiple lines, forming another dichotomy like the aforementioned one. These two dualities convey to the reader that there are two sides to every journey: the positivity and optimism of a new journey, and the negativity and regret of leaving ones past behind. The reader responds to this by perceiving the emotional qualities of the concept of journey and perhaps relate Duffys experiences onto their own, thus they begin to identify more with Duffys poetic explorations of journey; because, as has been stated, Duffy features journey in her work often, the readers identification with the concept makes her considerably more accessible, and so her non-journey-related social commentaries are more likely to be read and explored by the reader. There are several references to travelling in In Mrs. Tilschers Class, including  You could travel up the Blue Nile, which features the modal verb could to demonstrate the vast array of possibilities individuals have appertaining travel in the modern world. This builds an aura of wonder and mental fantasy as the reader imagines where they could travel, reflecting the wonder children experience whilst learning in school. Proper nouns, namely, Tana. Ethiopia. Khartoum. Aswan also convey this sense of endless potential voyages. However, as is often the case with her work, Duffy intentionally limits this effect by only referring to locations in Africa, since Tana is in Ethiopia, Khartoum in Sudan, and Aswan in Egypt. This makes the reader reconsider whether travel is really worthwhile; this is of course poignant bearing in mind Duffys own experience with travel, because, at such a young age, moving miles away from home is an anxious event, thus Duffy is warning readers to truly evaluate relocation due to its potential psychologically traumatic effects. A somewhat inverted sentiment is expressed in Pughs Birmingham Navigation graffiti, in which she includes adjectives like smoke-blackened, lurid, jaundiced and gangrenous to depict the dilapidated state of Birmingham. Pugh does so to communicate her disdain for Birmingham, where she grew up but later moved away from. Unlike Duffy who warns against relocation, Pugh is positive that she moved away from her birthplace; for example, the fact that the noun graffiti is in lower-case is intended to chastise the overly prominent visual pollution, which no doubt galvanised Pughs strong dislike for big cities. While Duffy expresses a rather mono-faceted opinion of travel, Pughs is more ambiguous; she is in favour of counter-urban (that is, rural) travel, but not urban travel. In the second stanza, You see precedes space, followed by a new line, suggesting that visitors to Birmingham struggle to find anything aesthetically worthwhile to comment on. Pugh then completes the sentence, with towns backsides which portrays the view of industrialised towns highly negatively, since the noun backside is usually associated with faeces. This evocative imagery makes the reader picture the forsaken state of the city, so they are more likely to align with Pughs disdainful view. The concept of physical journey is typical in many of Pughs poems, for example she includes Scandanavian proper nouns often in the collection, What a Place to Grow Flowers in the titles of such poems as Men growing flowers: Hveragerdi, Ingthor the chanter, The flute-playing at Skalholt and Going back to Hlidarendi and also refers to travel in the Earth Studies collection in such poems as After I came back from Iceland (When I got back to Heathrow) and Harbours (over the glittering road you should have gone to your true harbour). Disillusion with the aesthetically disappointing state of Britain during the highly-industrialised, Thatcher-run 80s influenced Pugh to travel abroad and write about the liberating effects of foreign journey, and her evocative language and simile such as how breathing was like drinking cold water encourages readers to travel abroad to enjoy these experiences. In In Mrs. Tilschers Class the number of travel-related ideas diminishes as the poem progresses, conveying, in her eyes, the lack of imagination and exploration the children in the poem face as they grow up. This links strongly to the theme of maturity.  Running parallel to the theme of physical journey is that of journey from innocence and youth to knowledge and maturity, which is explored in Religion 1, wherein the transition from nescience to knowledge is depicted through the subtle sexual reference of,  some thing / well-shaped; uncommon; fashioned to their liking. Needless to say, this is a reference to temptation in the Garden of Eden in the Genesis story of Adam and Eve, and the use of the nonspecific adverb some suggests lack of knowledge, which is antithetical to the subsequent knowledge they experience; the verb know (present in the subsequent poem in Selected Poems, History 1) can mean, in a Biblical sense, copulate, thus this is a subtle reference to sexual maturity a nd discovery. Unlike in many of her earlier works, predominantly those in Standing Female Nude such as Oppenheims Cup and Saucer and Girlfriends, Duffy similarly uses subtle references to sexual maturity in In Mrs. Tilschers Class in which she mentions inky tadpoles which can be interpreted as a metaphor for sperm cells, which resemble tadpoles. This symbolism conveys the growing childrens sexual maturity, and in the context of the poem which intends to paint a picture of every readers experience of growing up and school-life through use of the generic second-person pronoun, you, how sexual maturity is an integral part of growing up. Dissimilar to in Originally, this poem uses less enjambment and more full-stops and commas at the ends of lines; this is significant since the former poem is primarily about a literal journey, and the latter a figurative journey, therefore the diminished presence of enjambment suggests that growing up is a less smooth-flowing journey than relocation. This makes reader more likely to identify with this poem because everyone experiences adolescence but not everyone relocation, so Duffys work is more appreciated and, as has been mentioned, her social messages are reached by a wider audience.

An Evaluation of the reasons why a multinational enterprise undertakes FDI

While it is often argued that MNCs ship capital to where it is scarce, transfer technology and management expertise from one country to another, and promote the efficient allocation of resources in the global economy, it is important to note that inspite of this, the ultimate goal of the corporation is to increase profit and improve share value for its owners and shareholders (Barris and Cabra, 2002). It is believed that while FDI helps the country at the receiving end it also benefits the organisation because FDI by their nature has multiple benefits and can offer quick growth for any organisation if carefully undertaken. According to the International Monetary Fund (2002) FDI refers to an investment made to acquire lasting or long-term interest in enterprises operating outside of the economy of the investor. It plays an important role in global business especially in an everly increasingly competitive world marked by competition and globalisation. FDI can also provide a firm with new opportunities, distribution channels, markets and cheaper production capacities including, skills, technology and financing (IMF, 2002). In the work of Zarsky (2002) he points out that MNCs who invests in other countries often tend to benefit from lower costs and higher productive efficiency amongst several other benefits, therefore for firms seeking to achieve better performance, FDI is always undertaken as a strategic decision to achieve such objective. The aim of this paper is to discuss the importance of FDI to multinational organisations and evaluate some of the most important reasons why a MNC would undertake foreign direct investment abroad. The paper looks at the varying benefits of FDI and how it particularly benefits the firm undertaking such investment. Understanding FDI UNCTAD estimates that there are over 76,000 multinational corporations with affiliates and subsidiaries running to about 770,000 worldwide (UNCTAD, 2007). In 2005, FDI was estimated to have reached over $1.5 trillion with MNCs responsible for 12% of the world’s GDP while employing over 55 million people across the world (OECD, 2007). The OECD also estimates that 100 of the largest MNCs in the world account for over 15% of foreign assets with them accounting for 1/3 of global trade. In total over 70% of MNCs are based in advanced industrial countries with increasing stake in the developing world. The increasing surge of MNCs in emerging markets over the past decade especially attests to the fact they are increasingly undertaking FDI through market expansion to diversify their portfolios and increase their presence. Some of the few examples are: Vodaphone in India, Ford in Turkey, Microsoft in the UK and Coca cola in African countries. As is inherent in some of these examples, F DI can either take the form of merger, acquisition, the development of a new firm and or joint venture participation with existing firms (OECD, 2007). According to Thomsen (2000) FDI is important in so many ways for both the host country and the firm making the FDI because it holds various advantages in the long term for both. However, while its benefit for the firm is the focus of this paper, it is important to state that FDI can stimulate competition so long as there are proper policies in the host economy. Therefore FDI investment is not only important to the multinational firm but also the host economy for which it has so many spill over effects which is enjoyed in the long term. Generally, there is outward FDI and inward FDI. Outward FDI is the type of foreign direct investment which typically leaves a country while inward FDI is one which is received by a host country (Ekholm, 2004). MNCs participate in both forms of FDI and benefits from both at the same time through their activities. While outward FDI is generally not in favour of the host economy, it is said to benefit the MNC because it offers the opportunity for reinvest ment or as profits for the owners or shareholders. Inward FDI on the other hand benefits the host economy as it creates jobs and generates tax for the government while also benefiting the multinational company in several ways. Why MNCs undertake FDI In the old economics textbook, various reasons were adduced to the motive behind MNCs undertaking of FDI in other countries. One of the main explanations is that ‘Market disequilibrium and distortions’ give MNCs the impetus to undertake foreign investment (See e.g. Knickerbocker, 1973; p. 21). In a sense, it is believed that government imposed distortions as well as temporary disequilibria for example causes the need for firms to look outside their domestic market for opportunities in other countries (Ibid). Another explanation often put forward for MNCs motive for undertaking FDI is that market imperfection drives MNCs to look outward because imperfection in a market creates opportunities and economies of scale therefore it offers the MNC a perfect opportunity to increase its profits by investing its stake (See: Ekholm, 2004). While some of these explanations are still true to some extent as to why MNCs undertake FDI, the current and most important reasons indeed surpas es what is documented in the old textbooks of economics as explained earlier. Today, MNCs undertake foreign direct investment for various reasons and one of such is the increasing pressure wielded by competition through the forces of globalisation on the MNC making the rate of risk higher as to sustain long term operation in domestic markets (Nunnenkamp, 2002). Indeed through the modern process of globalisation, competition has taken a new dimension as forces outside a country can compete with a firm irrespective of its dominance in its local market, its brand awareness or strenghth, with the power of increasing competition therefore, survival today is about thinking ahead of the game, organisational thinking through innovation, collaboration, expansion and increased presence in other markets. This can be said to be one of the main impetus for MNCs motive for undertaking FDI abroad as such investment would enable the firm to achieve its objectives of improving profits and enhancing productivity theough cost cutting. Another motive behind MNCs undertaking of foreign direct investment is to diversify risks in their markets and portfolios. As noted by (Johnson, 2005) increasingly the macro business environment is becoming characterized with operational risks as the rate of unceratinty is increasing and markets are failing. The recent recession is an example of such risks existing in the external operating environment, since the recession which first started in 2007, several well known brands have collapsed while many are still suffering from the ruins of the recession. Indeed, many organisations operating in single markets and with limited product and market portfolios were exposed to market failures and increased risks in the last recession which consequently marked major decline in their share value and profit margin. Consequently, as a result of the threats associated with the risks of operating in one single market or product, MNCs are undetaking FDI abroad in other to diversify the risks in th eir primary market. Risk for a MNC can come in various faces. It could be operational risk, market risk, product risk, and several other. Undertaking FDI therefore offers the MNC the opportunity to mitigate such risks by diversifying into other markets or products through FDI. In the recent work of Davis (2009) he suggests that by undertaking foreign direct investment the MNC is able to lower production costs while also able to avoid trade restrictions. More so, the increasing labour cost and the cost of production in industrialised economies has given more impetus to MNCs to undertake FDI in a way that would allow them to lower production costs and enjoy cheaper labour costs (Barros and Cabral 2000). Ford motors is a typical example; Since the cost of production of Ford motors has increased in the UK, the company has decided to conduct its operations from other markets like Turkey for example where the cost of labour and production is relatively low. In addition to aiming to reduce labour and production costs, MNCs also undertake FDI to take up opportunity in profitable markets (Johnson, 2005) and this especially has to do with markets where there are better opportunities for the MNC to compete and make profit while at the same time increasing its brand v alue and identity (Ibid). Most of large oil and gas firms in the industrialised countries are typical examples of this development. Most big western oil firms such as Shell, Chevron, Mobil, BP, Texaco, etc have increased their presence in oil producing nations such as Russia, Angola, Brazil, Nigeria, Qatar, etc because the oil market in such countries require huge investment and infrastructure which they can undertake through FDI yet the market is such that there is little competition and therefore when they enter such markets they are able to use their market power and experience to increase their profit and become better at what they do. Shell like many other oil firms operating in the oil industry of many countries around the world have been able to avail itself of more opportunities in the general oil and gas market as well as other related industry through FDI than it can do in its primary and domestic markets. Similarly, the oil producing companies generally have been able to learn more about the intricacies of downstream and upstream operations as well as able to diversify into other related markets while at the same time able to contribute to the development of their host communities, although there are issues concerning corporate social responsibility and the environmental degradation caused by oil companies to their local communities, however the opportunistic and growth aspect of participating in other markets which FDI offers has been the main motive of MNCs. A similar development can be seen in other industries too, like the beverages industry for example where Coca cola is a prime example, Coca cola have been able to enter over 200 countries mainly to take advantage of the gaps and opportunities in those markets for the purpose of maximising its own profits while at the same time increasing its enhancing productivity and creating edge against its competition. The question to ask indeed is why MNCs are addicted to profit making and the taking up of opportunities everywhere there isIn response to such question: Kugler (2001) suggest that large firms over the past twenty years have been operating in a tougher and competitive world where their market power is challenged by small firms and the power of globalisation, it is this which gives them the motivation to invest abroad with the aim of challenging their competitors and taking to their advantage the benefit inherent in other markets to increase their profits and stay ahead of the game. Several MNCs also take opportunities abroad through FDI with the aim to vertically integrate their operations back and forward so as to sustain their operations and maintain healthy profits. It is at this juncture that the role of greed in their motive to undertake FDI can also be located. While little research exists in the literature on greed and why MNCs undertake FDI abroad, the 2007 global financial crisis has sparked academic debates about the role of greed in the operations and investment motives of MNCs abroad. In the work of Gultung (2009) for example looking at the case of some oil firms, financial institutions and industrialised apparel firms’, he talks about grievance, greed and opportunism in the way MNCs engage in FDI. The author explores the exploitation and the activities of many multinational corporations; How they exploit local firms, resources and labour in the foreign markets in which they operate. He cited the case of Shell in Nigeria and how the firm has over the year’s completely overtaken and forsaken local communities in which they exploit natural resources. As a consequence of such exploitation – Gultung suggests that many f armers have ceased operations while many fishermen are not able to feed their families and survive because their lands and firms have been taken over by oil activities and in many cases devastated and contaminated, yet Shell announce billions of dollars in its after profit tax every year. A similar example was cited of the apparel industry and the activities of company like Primark which has over the years undertaken foreign direct investment in India and many developing countries but to take advantage of labour and other local factors. Exploitation according to the author is defined as a â€Å"means through which one party gets much more out of a deal than the other-measured by the sum of internalities and externalities†. Sadly, most MNCs always get much more out the deals they strike than others. It is in this definition that it can be further argued that many MNCs as it is across many industries in the world mostly exploit other parties with whom they engage in FDI, theref ore it can be assumed that MNCs often undertake FDI in order to improve their profits with the motive to exploit others resources and take advantage of the opportunities in such markets. Finally, MNCs undertake FDI as a result of what Gorg and Strobl (2001) describe as the Product Life Cycle effect which occurs as a result of products reaching their maturity. For example a FDI takes place when product maturity hits and cost becomes an increasingly important consideration for the MNC. Conclusions This paper has explored the foreign investment activities of MNCs and the main reasons why they undertake FDI; it has presented various motives and factors underlying MNCs quest for investment abroad and as discussed above; one of such reasons is to increase profit, diversify risks and increase their competitiveness. The motive to undertake FDI to improve competitiveness has particularly become important for many MNCs given that in the current business environment, competition has become the order of the day and irrespective of size or location, small firms are able to compete in the same market with the multinationals. For the multinationals therefore, competitiveness has been the key and that includes aggressive expansion, constant innovation, acquisition and investing in markets abroad through various means. In view of the reasons mentioned in the paper, the reasons why MNCs undertake FDI can be said to be numerous and dependent on specific factors having to do with individual MNC s. For example some MNCs would make FDI decision to avail themselves of opportunities abroad, while other would take such decision to diversify risks, or vertically integrate their operations. References Barros. P.P. and L. Cabral (2000). Competing for Foreign Direct Investment., Review of International Economics, 8, 360-371. Ekholm, K. (2004). Multinational Enterprises and their Effect on Labour Markets, in Sodersten, B. (ed.), Globalization and the Welfare State, New York: Palgrave Macmillan. OECD (2007). Global Competition and the top ten investment destination, Paris: Organisation for Economic Cooperation and Development Gorg, H. and E. Strobl (2001) .Multinational Companies, Technology Spillovers, and Plant Survival: Evidence from Irish Manufacturing., EIJS Working Paper 131, Stockholm School of Economics. Glass, A. and Saggi, K. (2002). Multinational Firms and Technology Transfer, Scandinavian Journal of Economics, 104(3), 495-514. Galtung, J. (2009) Peace by peaceful means peace and conflict, development and civilisation. London, Sage publications International Monetary Fund (2002). FDI statistics. Johnson, A. (2005). Host Country Effects of Foreign Direct Investment: The Case of Developing and Transition Economies, Jonkoping, Singapore: Jonkoping International Business School Dissertation Series No. 031 Knickerbocker, F. T. (1973) Oligopolistic Reaction and Multinational Enterprise. Division of Research Graduate School of Business Administration, Harvard University: Cambridge, MA Nunnenkamp, P. (2002). Determinants of FDI in Developing Countries: Has Globalization Changed the Rules of the GameKiel, Germany: Kiel Institute for World Economics working paper No. 1122 Thomsen, S. (2000). Investment Patterns in a Longer-Term Perspective, OECD Working Paper on International Development, Number 2000/2 UNCTAD (2009). FDI statistics for multinational and Transnational’s, Geneva: United Nations Conference on Trade and Development Zarsky, L. (2002). Foreign Direct Investment: No Miracle Drug [online]. Ultimate Field Guide to the US Economy, Available: http://www.fguide.org/Bulletin/fdinodrug.htm An Evaluation of the reasons why a multinational enterprise undertakes FDI While it is often argued that MNCs ship capital to where it is scarce, transfer technology and management expertise from one country to another, and promote the efficient allocation of resources in the global economy, it is important to note that inspite of this, the ultimate goal of the corporation is to increase profit and improve share value for its owners and shareholders (Barris and Cabra, 2002). It is believed that while FDI helps the country at the receiving end it also benefits the organisation because FDI by their nature has multiple benefits and can offer quick growth for any organisation if carefully undertaken. According to the International Monetary Fund (2002) FDI refers to an investment made to acquire lasting or long-term interest in enterprises operating outside of the economy of the investor. It plays an important role in global business especially in an everly increasingly competitive world marked by competition and globalisation. FDI can also provide a firm with new opportunities, distribution channels, markets and cheaper production capacities including, skills, technology and financing (IMF, 2002). In the work of Zarsky (2002) he points out that MNCs who invests in other countries often tend to benefit from lower costs and higher productive efficiency amongst several other benefits, therefore for firms seeking to achieve better performance, FDI is always undertaken as a strategic decision to achieve such objective. The aim of this paper is to discuss the importance of FDI to multinational organisations and evaluate some of the most important reasons why a MNC would undertake foreign direct investment abroad. The paper looks at the varying benefits of FDI and how it particularly benefits the firm undertaking such investment. Understanding FDI UNCTAD estimates that there are over 76,000 multinational corporations with affiliates and subsidiaries running to about 770,000 worldwide (UNCTAD, 2007). In 2005, FDI was estimated to have reached over $1.5 trillion with MNCs responsible for 12% of the world’s GDP while employing over 55 million people across the world (OECD, 2007). The OECD also estimates that 100 of the largest MNCs in the world account for over 15% of foreign assets with them accounting for 1/3 of global trade. In total over 70% of MNCs are based in advanced industrial countries with increasing stake in the developing world. The increasing surge of MNCs in emerging markets over the past decade especially attests to the fact they are increasingly undertaking FDI through market expansion to diversify their portfolios and increase their presence. Some of the few examples are: Vodaphone in India, Ford in Turkey, Microsoft in the UK and Coca cola in African countries. As is inherent in some of these examples, F DI can either take the form of merger, acquisition, the development of a new firm and or joint venture participation with existing firms (OECD, 2007). According to Thomsen (2000) FDI is important in so many ways for both the host country and the firm making the FDI because it holds various advantages in the long term for both. However, while its benefit for the firm is the focus of this paper, it is important to state that FDI can stimulate competition so long as there are proper policies in the host economy. Therefore FDI investment is not only important to the multinational firm but also the host economy for which it has so many spill over effects which is enjoyed in the long term. Generally, there is outward FDI and inward FDI. Outward FDI is the type of foreign direct investment which typically leaves a country while inward FDI is one which is received by a host country (Ekholm, 2004). MNCs participate in both forms of FDI and benefits from both at the same time through their activities. While outward FDI is generally not in favour of the host economy, it is said to benefit the MNC because it offers the opportunity for reinvest ment or as profits for the owners or shareholders. Inward FDI on the other hand benefits the host economy as it creates jobs and generates tax for the government while also benefiting the multinational company in several ways. Why MNCs undertake FDI In the old economics textbook, various reasons were adduced to the motive behind MNCs undertaking of FDI in other countries. One of the main explanations is that ‘Market disequilibrium and distortions’ give MNCs the impetus to undertake foreign investment (See e.g. Knickerbocker, 1973; p. 21). In a sense, it is believed that government imposed distortions as well as temporary disequilibria for example causes the need for firms to look outside their domestic market for opportunities in other countries (Ibid). Another explanation often put forward for MNCs motive for undertaking FDI is that market imperfection drives MNCs to look outward because imperfection in a market creates opportunities and economies of scale therefore it offers the MNC a perfect opportunity to increase its profits by investing its stake (See: Ekholm, 2004). While some of these explanations are still true to some extent as to why MNCs undertake FDI, the current and most important reasons indeed surpas es what is documented in the old textbooks of economics as explained earlier. Today, MNCs undertake foreign direct investment for various reasons and one of such is the increasing pressure wielded by competition through the forces of globalisation on the MNC making the rate of risk higher as to sustain long term operation in domestic markets (Nunnenkamp, 2002). Indeed through the modern process of globalisation, competition has taken a new dimension as forces outside a country can compete with a firm irrespective of its dominance in its local market, its brand awareness or strenghth, with the power of increasing competition therefore, survival today is about thinking ahead of the game, organisational thinking through innovation, collaboration, expansion and increased presence in other markets. This can be said to be one of the main impetus for MNCs motive for undertaking FDI abroad as such investment would enable the firm to achieve its objectives of improving profits and enhancing productivity theough cost cutting. Another motive behind MNCs undertaking of foreign direct investment is to diversify risks in their markets and portfolios. As noted by (Johnson, 2005) increasingly the macro business environment is becoming characterized with operational risks as the rate of unceratinty is increasing and markets are failing. The recent recession is an example of such risks existing in the external operating environment, since the recession which first started in 2007, several well known brands have collapsed while many are still suffering from the ruins of the recession. Indeed, many organisations operating in single markets and with limited product and market portfolios were exposed to market failures and increased risks in the last recession which consequently marked major decline in their share value and profit margin. Consequently, as a result of the threats associated with the risks of operating in one single market or product, MNCs are undetaking FDI abroad in other to diversify the risks in th eir primary market. Risk for a MNC can come in various faces. It could be operational risk, market risk, product risk, and several other. Undertaking FDI therefore offers the MNC the opportunity to mitigate such risks by diversifying into other markets or products through FDI. In the recent work of Davis (2009) he suggests that by undertaking foreign direct investment the MNC is able to lower production costs while also able to avoid trade restrictions. More so, the increasing labour cost and the cost of production in industrialised economies has given more impetus to MNCs to undertake FDI in a way that would allow them to lower production costs and enjoy cheaper labour costs (Barros and Cabral 2000). Ford motors is a typical example; Since the cost of production of Ford motors has increased in the UK, the company has decided to conduct its operations from other markets like Turkey for example where the cost of labour and production is relatively low. In addition to aiming to reduce labour and production costs, MNCs also undertake FDI to take up opportunity in profitable markets (Johnson, 2005) and this especially has to do with markets where there are better opportunities for the MNC to compete and make profit while at the same time increasing its brand v alue and identity (Ibid). Most of large oil and gas firms in the industrialised countries are typical examples of this development. Most big western oil firms such as Shell, Chevron, Mobil, BP, Texaco, etc have increased their presence in oil producing nations such as Russia, Angola, Brazil, Nigeria, Qatar, etc because the oil market in such countries require huge investment and infrastructure which they can undertake through FDI yet the market is such that there is little competition and therefore when they enter such markets they are able to use their market power and experience to increase their profit and become better at what they do. Shell like many other oil firms operating in the oil industry of many countries around the world have been able to avail itself of more opportunities in the general oil and gas market as well as other related industry through FDI than it can do in its primary and domestic markets. Similarly, the oil producing companies generally have been able to learn more about the intricacies of downstream and upstream operations as well as able to diversify into other related markets while at the same time able to contribute to the development of their host communities, although there are issues concerning corporate social responsibility and the environmental degradation caused by oil companies to their local communities, however the opportunistic and growth aspect of participating in other markets which FDI offers has been the main motive of MNCs. A similar development can be seen in other industries too, like the beverages industry for example where Coca cola is a prime example, Coca cola have been able to enter over 200 countries mainly to take advantage of the gaps and opportunities in those markets for the purpose of maximising its own profits while at the same time increasing its enhancing productivity and creating edge against its competition. The question to ask indeed is why MNCs are addicted to profit making and the taking up of opportunities everywhere there isIn response to such question: Kugler (2001) suggest that large firms over the past twenty years have been operating in a tougher and competitive world where their market power is challenged by small firms and the power of globalisation, it is this which gives them the motivation to invest abroad with the aim of challenging their competitors and taking to their advantage the benefit inherent in other markets to increase their profits and stay ahead of the game. Several MNCs also take opportunities abroad through FDI with the aim to vertically integrate their operations back and forward so as to sustain their operations and maintain healthy profits. It is at this juncture that the role of greed in their motive to undertake FDI can also be located. While little research exists in the literature on greed and why MNCs undertake FDI abroad, the 2007 global financial crisis has sparked academic debates about the role of greed in the operations and investment motives of MNCs abroad. In the work of Gultung (2009) for example looking at the case of some oil firms, financial institutions and industrialised apparel firms’, he talks about grievance, greed and opportunism in the way MNCs engage in FDI. The author explores the exploitation and the activities of many multinational corporations; How they exploit local firms, resources and labour in the foreign markets in which they operate. He cited the case of Shell in Nigeria and how the firm has over the year’s completely overtaken and forsaken local communities in which they exploit natural resources. As a consequence of such exploitation – Gultung suggests that many f armers have ceased operations while many fishermen are not able to feed their families and survive because their lands and firms have been taken over by oil activities and in many cases devastated and contaminated, yet Shell announce billions of dollars in its after profit tax every year. A similar example was cited of the apparel industry and the activities of company like Primark which has over the years undertaken foreign direct investment in India and many developing countries but to take advantage of labour and other local factors. Exploitation according to the author is defined as a â€Å"means through which one party gets much more out of a deal than the other-measured by the sum of internalities and externalities†. Sadly, most MNCs always get much more out the deals they strike than others. It is in this definition that it can be further argued that many MNCs as it is across many industries in the world mostly exploit other parties with whom they engage in FDI, theref ore it can be assumed that MNCs often undertake FDI in order to improve their profits with the motive to exploit others resources and take advantage of the opportunities in such markets. Finally, MNCs undertake FDI as a result of what Gorg and Strobl (2001) describe as the Product Life Cycle effect which occurs as a result of products reaching their maturity. For example a FDI takes place when product maturity hits and cost becomes an increasingly important consideration for the MNC. Conclusions This paper has explored the foreign investment activities of MNCs and the main reasons why they undertake FDI; it has presented various motives and factors underlying MNCs quest for investment abroad and as discussed above; one of such reasons is to increase profit, diversify risks and increase their competitiveness. The motive to undertake FDI to improve competitiveness has particularly become important for many MNCs given that in the current business environment, competition has become the order of the day and irrespective of size or location, small firms are able to compete in the same market with the multinationals. For the multinationals therefore, competitiveness has been the key and that includes aggressive expansion, constant innovation, acquisition and investing in markets abroad through various means. In view of the reasons mentioned in the paper, the reasons why MNCs undertake FDI can be said to be numerous and dependent on specific factors having to do with individual MNC s. For example some MNCs would make FDI decision to avail themselves of opportunities abroad, while other would take such decision to diversify risks, or vertically integrate their operations. References Barros. P.P. and L. Cabral (2000). Competing for Foreign Direct Investment., Review of International Economics, 8, 360-371. Ekholm, K. (2004). Multinational Enterprises and their Effect on Labour Markets, in Sodersten, B. (ed.), Globalization and the Welfare State, New York: Palgrave Macmillan. OECD (2007). Global Competition and the top ten investment destination, Paris: Organisation for Economic Cooperation and Development Gorg, H. and E. Strobl (2001) .Multinational Companies, Technology Spillovers, and Plant Survival: Evidence from Irish Manufacturing., EIJS Working Paper 131, Stockholm School of Economics. Glass, A. and Saggi, K. (2002). Multinational Firms and Technology Transfer, Scandinavian Journal of Economics, 104(3), 495-514. Galtung, J. (2009) Peace by peaceful means peace and conflict, development and civilisation. London, Sage publications International Monetary Fund (2002). FDI statistics. Johnson, A. (2005). Host Country Effects of Foreign Direct Investment: The Case of Developing and Transition Economies, Jonkoping, Singapore: Jonkoping International Business School Dissertation Series No. 031 Knickerbocker, F. T. (1973) Oligopolistic Reaction and Multinational Enterprise. Division of Research Graduate School of Business Administration, Harvard University: Cambridge, MA Nunnenkamp, P. (2002). Determinants of FDI in Developing Countries: Has Globalization Changed the Rules of the GameKiel, Germany: Kiel Institute for World Economics working paper No. 1122 Thomsen, S. (2000). Investment Patterns in a Longer-Term Perspective, OECD Working Paper on International Development, Number 2000/2 UNCTAD (2009). FDI statistics for multinational and Transnational’s, Geneva: United Nations Conference on Trade and Development Zarsky, L. (2002). Foreign Direct Investment: No Miracle Drug [online]. Ultimate Field Guide to the US Economy, Available: http://www.fguide.org/Bulletin/fdinodrug.htm

History response 17 Assignment Example | Topics and Well Written Essays - 250 words

History response 17 - Assignment Example Family, on the other hand, is the basic unit of society. The concept of family is important in understanding socialization since it is one of the most important agents of socialization that every one person is subjected to; in fact, it is the basis through which one is introduced to the values, norms, beliefs, interpersonal relationships, and opinions. From the TED Talk; I gathered that education and technology, which are important tenets of culture, play a critical role in socialization. The social realities that people are faced with, taught or experience, usually shape their understanding of their cultures. It is true that people always interpret their social actions through morals, norms, sentiments, and values, as the essence of social life (Grusec and Hastings 83). Family socialization alone cannot influence the upbringing of a child, social institutions and formal education also plays a major role in the shaping of the life of a person. It is worth, reiterating that socialization is that process through which people acculturate, people learn about their society’s norms, values, and beliefs. It is through socialization that a person can bear resemblance to another person; this is why a person is usually defined as being normal on the basis of the beliefs, standards and norms of the society that he is in (Grusec and Hastings 102). People are indirectly and directly influenced by the education they acquire from school, the family, church, media, as well as peer groups. Family, as a unit of socialization imparts beliefs, sociological or otherwise in on children through its acceptance, biases or approval of certain beliefs, values, or ideologies. The fundamental scope of socialization, however, remains embedded in culturalization; it is a lifelong happening (Grusec and Hastings 112). The culturalization of persons is achieved through a myriad of social institutions in the society, of which the family, church, and school are part of. Thus,

Business to Business Marketing-SPSL Case Study Essay

Business to Business Marketing-SPSL Case Study - Essay Example Yet at the same time, personal selling is expensive. It costs a company much more to make a face-to-face sales call than it does to contact customers through a call centre or the web (Zoltners, Sinha & Lorimer, 2009.p.6). Consequently a sales force is most appropriately deployed to select customers, products and selling activities; specifically, those for which the benefit is worth the cost. When deployed to the right opportunities, an effective sales force is an invaluable asset for a B2B company; a powerful customer-facing force that can be a source of considerable competitive advantage. In Saxons case, the sales force will be by far the most relied upon department within the organization. This is mainly because they are required to deal directly with the customers and every other department within the organization relies on them to bring in the business. Typically, they are the only department which brings in money; everything else generates costs (Blythe & Zimmerman, 2005.p.252). It has been observed that a very good sales force, one that has talented salespeople who engage in the right selling activities produces at least 10 percent more revenues in the short term than an average sales force of the same force. In the long term, the revenue impact can be much greater: 50 percent or more. However, it is not a guarantee that everything will go well with Saxon once a sales force in place. Due to the criticalness and power of the sales force they become difficult to control, direct and manage. The fact that they are dominated by motivated people who bring in capabilities and values it also means that they bring egos and the need for security and meaning (Lilien & Grewal, 2012.p.522). Unlike advertising, salespeople cannot be turned on and off. Unlike a...Because the purchase is for the company; rather that for own use, the value presented in the merchandise must be seen as actual and functional as opposed to conceptual and representative (Wright, 2006.p.455). N ot all benefits associated with the brand name are emotional benefits and B2B buyers will be interested in corporate branding as this can be a sign of reliance and worth, service and extensive value when associating with a respectable and established organisation. Lastly, there is the issue of competition. In most B2B markets competition is as intense as is in B2C markets but, because consumers want different benefits than business buyers, it tends to be of a different kind, Competition in B2C markets is just as likely to be on the product and service brands as it is on price, while in B2B it is more likely to be on functional benefits offered and after-sales-service as it is on the brand or the price (Davis, 2010.p.8). Although price is important in the latter market, functionality and reliability can be crucial as a dysfunction in some way would be catastrophic in terms of lost production or disrupted services. Rivalry in B2B markets emanate from comparatively small number of organizations and organisational behaviour will be founded on such aspects as key partnerships. On the other hand, rivalry in B2C markets will emanate from multiple retailers and a variety of diverse merchandise and brands based on the consumer’s continuously var ying demands.