Global_Operations_Management

WHAT ARE SOME OF THE ISSUES THE HOST FOREIGN COUNTRY COULD FACE AS A RESULT OF THE EXPANSION' Some of the issues that a country might face as a result of expansion could be massive. These many issues affecting the nation’s rate of utilization and absorption of technologies would consist of both internal and external ones. These internal factors involve physical and human resources, the country’s infrastructure and its growth rate and state of development the host foreign cost comprised Internal factors are comprised of the obtainable human and physical resources, the country's infrastructure, and its growth rate and state of development the host country should have to make readily available. On the other hand, the external aspects should embrace the readiness of business to carry trade in the country, and the convenience and amount of global support intended to transfer such technologies (Sadowsky, 1996). The preparation of a considerable communications network is imperative. Adequate intercontinental and domestic links might not be dependable or readily available; equipment and machinery might not be easy to get hold of, maintain and refurbish; electrical power also might not be reliable. Also computers and consistent peripherals needed may be scarce, or even out of supply. Additionally, communication and transportation links may be very weak and postpone progress. Upgrading in the host foreign country may be considered necessary, prior to an expansion of an MNE (Sadowsky, 1996). Operating an international company will require necessary skills to set up. Characteristics of the cultural surroundings inside the host country will be important in devising a plan on how worker skills are generated and made the most of. Openness to educational prospects, work ethics, policies and attitudes towards accomplishment, manufacturing, employment, and efficiency all are crucial in a productive expansion - all of which falls on the host country to supply (Sadowsky, 1996). Normally in not so developed countries, concentration in learning or education is slim to none. Usually there is considerable rivalry for the limited, more capable individuals within the public and the private sectors. Migration to better markets set off an exhaustion of resources vital to expand a multinational enterprise (MNE). The majority of underdeveloped countries is monetarily poor in relation to developed nations and is suffering from lower levels of national income and financial assets. These countries’ economies are put through widespread performance fluctuations, beyond their control. Some of these countries are not possible for continuing developmental aid. The host countries that are involved with multinational enterprise may possess substantial benefits; guidelines which support national funds the same as profit and taxation repatriation encouragement may be able to influence further MNE's to enter local markets, have the funds for repayment to the host country. Additionally, MNE's convey considerable flows of information and opportunity for training in order to host foreign countries (Sadowsky, 1996). EXPLAIN WHAT CULTURAL BARRIERS AND DIVERSITY ISSUES ARE COMMONLY ENCOUNTERED BY INTERNATIONAL/MULTINATIONAL (MNC) AND GLOBAL ORGANIZATIONS. Managers would be required to be educated on all sides of international business in which usually this is not the case of most domestic managers. Looking at the broader scale, all factors would consist of being knowledgeable of other countries' business practices, communications and foreign trade activity. As well, international managers would be required to be educated concerning international exchange rates, legal, political and socio-cultural qualities of other countries (Deresky, 1997). Such as, if there is the issue of ethics in international business. Managers have to know when they are confronted with the intricacy of legal and illegal payments. For instance in some countries, money is given as bribes or things of value are given to influential people. So is blackmail, rather money paid for protection of a business who has been threatened by termination of a business venture. In such cases, international managers may be torn between United States bylaws and foreign culture. Nonetheless, there are a few American laws that offer direction in cases such as these (Deresky, 1997). Socio-cultural components are of equal importance to most international managers. The socio-cultural constituents consist of beliefs, behaviors, attitudes, values and demographic trends of a host country. Therefore, by learning these things often would require a good deal of self- attentiveness in order to recognize and control culturally specific behaviors in one's self and in others. International managers need now how to relate to and motivate foreign workers, since motivational techniques are different in every country. These managers need to recognize how occupational responsibilities and opinions are different (Schneider & Barsoux, 1997). Such as, limitations and responsibilities of employment from time to time contain slight differences across cultures, even if they have the same names and knowledgeable provisions Managers need to be familiar to such cultural tones in order to operate efficiently. So to speak, managers should maintain a good outlook on cultural differences as soon as they are recognized and must not give into the myth that every person in a foreign culture believes and acts the same (Schneider & Barsoux, 1997). WHY HAS DIVERSITY BECOME SUCH AN IMPORTANT TOPIC IN THE INTERNATIONAL ARENA' Cultural diversity is “The common heritage of humanity”, and that “culture takes diverse forms across time and space" (“Office of Human Rights”). Such diversity is personified in the uniqueness and numerous identities of groups and societies that make up the human race. Around 70% of every global establishment will have personnel that will be a mixture of diverse religions, cultures, and races. In these circumstances, it is crucial to promote gender related, ethnic, cultural and social diversity in the workplace. The plus of diversity is that it increases productivity and efficiency of the workforce and also helps endorse a business, and creates possibility to advance to a worldwide level (S, 2010). It involves what is said, what is not said and what should not be said. WHAT CAN OCCUR WHEN ISSUES RELATED TO MULTICULTURALISM AND DIVERSITY ARE IGNORED IN AN INTERNATIONAL COMPANY' When issues related to multiculturalism and diversity is ignored in international companies, problems take place such as no socialization among employees, high rate of turnover, low morale, low production, low job satisfaction and bottom line is that companies lose their edge on all things and suffer direct bottom line benefits (Council, 2001). DESCRIBE AT LEAST 2 POLITICAL AND 2 ECONOMIC ISSUES THAT MAY ARISE DURING GLOBAL EXPANSION AND PROPOSED METHODS OF ADDRESSING THEM. Economic Factors Increased opportunities go hand in hand with globalization. What's more, globalization channels the formation of the worldwide consumer, who would be someone familiar with the brand and look forward to the same advantage of merchandise and service in spite of their location. Next, the exchange rate may impact financing and cash flow which will cause companies to take risks, based on the variable rates. Additionally, agility in corporate spending, deflation or inflation or a global recession might possibly affect demand which would create negative influence investments and profit margins. PPQ Parts would be required to examine the economic factors that directly concern their company and develop strategies in order to put a stop to any economic issues which may very well have a direct affect on their organization (Smith & Doyle, 2002). Political Factors Political instability may have an unfavorable effect on PPQ Parts. Political insecurity among particular markets will be found to be demanding. In order to manage federal, state and local legislation while operating international dispersed workers could pose a threat to PPQ Parts. Moreover terrorist attacks and political instability might also pessimistically manipulate investments and profit margins. PPQ Parts would be subjected to at home and at broad competition, hijackings, laws and regulations. Once more PPQ Parts would be required to get stratagem in place to handle the management of political factors; in addition, they would need a crisis management team in place in the event of political explosiveness or terrorist attacks (Smith & Doyle, 2002). EXPLAIN THE IMPORTANCE OF AND THE IMPLICATIONS OF EACH OF THESE ITEMS IN PPQ PARTS' EXPANSION PLANS TO GERMANY AND JAPAN. The most important implication of going global with expansion in Germany and Japan, is with economical improvement which can be discovered through the scale of economies, first-mover advantage, equipped flexibility, cross-subsidization among nations, diversification of macroeconomic risks, brand recognition, consumption of strategic resources, consumers approval of globalization, global competitors having a cost advantage over local competition and comparative advantage to name a few (QuickMBA, 2010).   References: S. Charlie, (2010). Importance of Diversity. Retrieved from http://www.buzzle.com/articles/importance-of-diversity.html Council, P. (2001). Managing Multiculturalism: Valuing Diversity in the Workplace. Journal of Property Management. Retrieved from http://www.allbusiness.com/legal/laws-government-regulations-employment/825855-1.html Office of the United Nations High Commissioner for Human Rights (n.d.). Universal Declaration on Cultural Diversity. Retrieved from http://www2.ohchr.org/english/law/diversity.htm Deresky, H. International Management: Managing Across Borders and Cultures. (5th Edition). Upper Saddle River, NJ: Prentice Hall, 2005. Quick MBA (2010). Global Management. Retrieved from http://www.quickmba.com/strategy/global/ Sadowsky, G. (1996). The Internet Society and Developing Countries. Retrieved from http://www.isoc.org/oti/articles/1196/sadowsky.html Schneider, S & Barsoux, J. L. (2003). Managing Across Cultures. London: Prentice Hall. http://the-manuals.com/schneider,-s.-and-barsoux,-j-l.-(2003)-managing-across-cultures,-prentice-hall.-london-manual/ Smith, M. K. and Doyle M. (2002). 'Globalization' the encyclopedia of informal education. www.infed.org/biblio/globalization.htm