Monday, July 6, 2020
Critically analyze the role of strategic marketing planning in relation to an organizations decision to enter new markets in a global marketing environment. Justify your choice of strategies with examples to support where possible. Introduction A critical issue in international market entry strategy is the selection of an appropriate entry mode. Although some important studies have analyzed entry mode choice in the service context (see, e.g., Agarwal and Ramaswami 1992; Bouquet, HÃ ©bert, and Delios 2004; Erramilli and Rao 1993; Li and Guisinger 1992), they analyze specific service sectors and thus fail to address the heterogeneity problem of the service sector as a whole. In the current dynamic and competitive environment, entry mode choice is a decision based not only on efficiency (transaction cost minimization) and value based (development of capabilities) considerations but also on other aspects, such as strategic motives of internationalization or the firms competitive position in the global environment (Aulakh and Kotabe 1997; Harzing 2002; Hill, Hwang, and Kim 1990). In addition, the high costs of integration that economic theories stipulate may not be strictly true for many service firms. For example, professional services are characterized by low capital intensity (Erramilli and Rao 1993). For many service firms, the switching costs may be comparatively small because valuable assets rest more on human capital than on physical assets; thus, investment patterns observed in the manufacturing sector could be different in the service sector (Carman and Langeard 1980). The key issue in entry mode choice is the compatibility between the firms existing capabilities and those it needs to be successful in a particular market (Johanson and Vahlne 1977). As Madhok (1997) proposes, an operation seeking the development of capabilities to create future value will result in a greater proclivity toward collaborative ventures. Firm-specific capabilities, such as firm size, international experience, and tacit know-how, may also play a role. Larger and more experienced firms typically favour full control modes. Furthermore, the tacitness of know-how that is involved in the market entry may limit its transferability to another firm without loss of value (Kogut and Zander 1993). These circumstances increase the efficiency of resource utilization and the effectiveness of its in-house transfer (Madhok 1997). The strategic motivations and competitive pressures underlying market entry and the particular nature of services may be relevant for the entry decision. Firms tend to use higher control modes to coordinate more effectively strategies in a multinational network (Hill, Hwang, and Kim 1990), to extend market power by entering new markets, and to exploit market knowledge when following domestic clients or competitors to foreign countries (Li and Guisinger 1992). Strategic motivations, such as setting up a strategic outpost for future expansion, setting up a global sourcing site, and achieving economies of scale by concentrating the important activities in a limited number of locations, may also lead firms to rely on full control entry modes (Harzing 2002). Consistent with the work of Dunning (1993), we argue that the introduction of strategic dimensions into the analysis of entry mode choice is essential in a world characterized by increasing globalization and the proliferation of cross-border collaborative alliances. Firms are increasingly competing in global rather than national markets. Furthermore, researchers have claimed that entry mode options for manufactured goods cannot be transferred to services because of service firms idiosyncrasies (Erramilli 1990). First, services are largely intangible and cannot be touched, transported, or stored. Second, services tend to be inseparable, so production usually cannot be separated from consumption. Third, services are perishable and thus must usually be consumed at the time of production. Finally, services are heterogeneous, so each service encounter is unique and highly customized (Zeithaml, Parasuraman, and Berry 1985). When entering new markets, foreign investors must cope with the unpredictability of an investment in a politically, economically, and culturally different environment. To mitigate this uncertainty within a TCA framework, firms have been advised to retain flexibility and avoid high levels of ownership (Williamson 1975). Firms should reduce their ownership levels, seek locally based assets, and solicit the participation of local partners (Anderson and Gatignon 1986; Hennart 1991; Hill, Hwang, and Kim 1990). One major source of uncertainty is cultural distance. Perceptions of significant cultural distance between the country of origin and the target country in terms of culture, economic systems, and business practices have been found to support the use of modes that involve smaller resource commitment (Johanson and Vahlne 1977). Setting up in an environment with a culture that is different and unfamiliar to the investor increases the difficulty. Another factor of uncertainty is host-country risk. Hostcountry risk reflects uncer tainty about the continuation of current economic and political conditions and government policies that are deemed to be critical to the survival and profitability of a firms operations in that country (Agarwal and Ramaswami 1992). A highly volatile environment will result in firms that want to minimize exposure to risk through entry methods that offer the necessary flexibility in the face of environmental variability (Erramilli and DSouza 1995; Kim and Hwang 1992). Find out how our expert essay writers can help you with your work By reducing resource commitment in risky environments, firms minimize their financial exposure in cases in which they can be adversely affected or forced to cease their activity by unforeseen events (Hill, Hwang, and Kim 1990). Therefore, in countries with unstable political and economic conditions, firms should avoid full-control modes and seek shared-control modes. Marketing Intensity Under TCA assumptions, the risk of undesired dissemination of a firms specific advantage or proprietary asset is an important transaction cost. These expropriation hazards can limit the potential rent an investor may obtain for the exploitation of its specific assets in a foreign investment (Lu and Hebert 2005). Brand name, reputation, marketing skills, and the firms strength in sales are key specific assets for international firms. These assets are especially vulnerable to problems related to divulging information to or the misuse of information by third parties. Brand development and sales strength are established over many years and are rooted in a firms culture, systems, and routines. The less control the firm exercises, the more exposed it will be to its partners possible hostile or opportunistic actions. Given that the process of creation and maintenance of product differentiation requires time, the undesired dissemination of commercial capabilities to third parties c ould become the subject of possible misuse and could damage a Size. The establishment of wholly owned subsidiaries abroad entails significantly higher resource commitments and carries greater risk than other options. Consequently, larger firms have a greater ability to expend resources and absorb risks than small and medium-sized ones and thus are more likely to select high-control and resource commitment modes (Agarwal and Ramaswami 1992). Firms can obtain the necessary resources for investments internally through their own cash flow or externally from financial markets. International activities are time consuming and demanding of managers, and small firms are not always able to sustain the high information costs that are required. Thus, consistent with OCP logic, limits on the availability of financial, managerial, and political resources implies the need for small and medium-sized firms to engage in entry modes on the basis of risk and commitment minimization. Therefo re, we expect the following relationship: Type of International Strategy. Regarding the pursuit of international opportunities, we can distinguish between two broad types of strategies: a global strategy and a multi-domestic strategy. In a global strategy, firms typically attempt to take advantage of the homogeneity of tastes and preferences of customers across countries through a standardized product or service offering. Interconnections among markets also enable these firms to seek substantial integration and economies of scale on a global level. In general, these characteristics reflect a firms ethnocentric orientation (Pelmutter 1969), which implies (1) The development of international operations in the same way as in the market of origin, (2) The transmission of information and knowledge from the parent company to affiliated companies, and (3) The maintenance of a national identity by having people from the country of origin fill management posts in internationa l operations. Thus, service firms that employ a global strategy prefer full-control entry modes to achieve a high level of coordination, synergy, and asset transfer among units. In turn, firms that adopt a multi-domestic international strategy compete mainly at the local level, adapting products and business policies to local markets. Local subsidiaries typically enjoy considerable autonomy with their own commercial and production infrastructures. Such firms are comfortable with shared-control modes, such as joint ventures, which allow greater flexibility (Hill, Hwang, and Kim 1990; Tallman and Shenkar 1994). Their organization is often poly- The Impact of Strategic Factors Strategic Variables That Influence Entry Mode Choice 75 centric (Pelmutter 1969). Because international operations are viewed as a group of independent companies, control and evaluation methods are determined at a local level, and communications between the parent company and the subsidiaries are limited . In conclusion, service firms with a multi-domestic strategy are more likely to rely on shared-control modes than firms with a global strategy. Therefore, we propose the following hypothesis: One of the most important strategic decisions managers of multinational corporations have to make is the selection of entry mode into a foreign market. How firms enter foreign markets has been a topic of interest for many researchers in international business and marketing (Agarwal and Ramaswami 1992; Caves and Mehra 1986; Gatignon and Anderson 1988; Stopford and Wells 1972). The growing globalization of markets during the past two decades has become one of the most crucial issues in business today, representing numerous challenges and opportunities for domestic and international markets (Klein, Ettenson and Morris 1998; Darling and Arnold 1988). As national boundaries continue to disappear, more businesses seek opportunities abroad (Klein et al. 1998). Ettenson and Gaeth (1991) sug gest that to compete successfully in this global market, managers need to have a thorough understanding of what consumers in different countries and cultures prefer. Although the knowledge of what consumers prefer in terms of foreign products and services is an important one, we argue that understanding the level of animosity (war, economic, cultural and religious) of the intended host country is as important and could lead to the success or failure of multinational corporations. Entry Mode Selection The firms international experience and product diversification play an important role in entry mode selection (Stopford and Wells 1972). Woodcock, Beamish and Makino (1994) argue that cultural and other national differences between the host and home countries appear to influence entry mode selection. Caves and Mehra (1986) found entry mode selection to be influenced by several industries and firm-specific factors such firm size, advertising intensity, research intensity, indust ry growth and industry concentration. All types of entry modes are contingently influenced by locational, ownership and internationalization advantages (Kim and Hwang 1992; Agarwal and Ramaswami 1992). Animosity and Entry Mode An extensive survey of the literature indicates that one of the main areas neglected in strategy research is the impact of animosity (war, economic, cultural and religious) on entry modes. As the opening quote indicates, the clash of civilizations will only increase because differences among civilizations are not only real, they are basic. Huntington (1993) argues that differences in history, language, culture, tradition and, most importantly, religion will be the driving forces for conflict and history is full of examples of wars that have been fought based on religious and cultural differences. If religious and cultural differences can lead to armed conflict and atrocities, it is plausible that religious and/or cultural animosity toward a nation o r culture might also affect how entry of foreign businesses is viewed and evaluated. Hofstede (1983) points out the role that cultural differences play by stating: The national and regional differences are not disappearing; they are here to stay. In fact, these differences may become one of the most crucial problems for management in particular for the management of multinational, multi-cultural organizations, whether public or private (p. 75). The impact of national culture of the host and the home country has been investigated by a number of researchers (Hennart and Larimo 1998; Erramilli 1996; Barkema and Bell 1996; Shane 1994; Kogut and Singh 1988). Hennart and Larimo (1998) stated that there are two ways through which culture can influence ownership policies: 1) the countrys national cultural characteristics, such as its power distance and uncertainty avoidance can affect the preference of multinational corporation strategy or entry mode and 2) the cultural distance be tween the home base of the multinational and the target market can influence MNCs entry mode. Hennart and Larimo (1998) found that the lower the power distance and the uncertainty avoidance indices of the home base of the investing firm, the greater the likelihood that it will enter the United States with shared-equity ventures. They also found that the greater the cultural distance between the home base of the investors and the United States, the more likely that they will enter the United States through shared-equity ventures. Erramillis research (1996) revealed that the greater the power distance characterizing the firms home country culture, the greater the likelihood that the firm will seek majority ownership in foreign subsidiaries and the greater the uncertainty avoidance characterizing the firms home country culture, the greater the likelihood that the firm will seek majority ownership in foreign subsidiaries. Kogut and Singh (1988b) found greater cultural dist ance between the home country and the host country to increase the probability that Greenfield joint ventures would be preferred to wholly owned Greenfields and to controlling acquisitions. Additionally the greater the level of uncertainty (avoidance in the home country of the investor), the greater the preference for partly or wholly owned Greenfield investments over acquisitions (Kogut and Singh 1988b). The longevity of foreign ventures was found by Barkema, et al. (1996) to be negatively related to the cultural distance between the home and host country. More recent studies like Arora and Fosfuri (2000) found that cultural distance reduces the propensity of a firm to set up a wholly owned subsidiary rather than using licensing to exploit technological competencies in a foreign country. Although these studies provided a wealth of information regarding certain elements of culture and its impact on foreign entry modes, none of them address the issue of cultural and religious differences that may lead to the civilization clash described by Huntington (1993). This paper attempts to fill this gap by providing a theoretical argument regarding the impact of war, economic, cultural and religious animosity on entry modes. War, Economic, Cultural and Religious Animosity Klein et al. (1998) conducted a study in China to investigate the impact of animosity on intention to purchase foreign goods. Kleins model, which developed scales to measure war and economic animosity (defined as remnants of antipathy related to previous or ongoing military, political or economic events), demonstrated the negative impact of these constructs on Chinese purchase intentions related to products from the source of this animosity. From that study Klein et al. proposed the construct of animosity between nations and concluded that consumers who harbour war or economic animosity toward a specific country are likely to choose not to purchase products manu- Marketing Managemen t Journal, Fall 2005 factured in that hated country. They also found that consumers who are unwilling to buy products from the hated country may find it perfectly acceptable to buy products from friendly countries and showed how the animosity construct is different from the ethnocentrism construct. Kalliny and Hausman (2004) extended the Klein et al. animosity model by adding cultural and religious animosity constructs. Religious animosity is defined as ones intolerance of and antipathy toward another person, country or nation because of religious differences while cultural animosity is defined as ones intolerance of and antipathy toward another person, country or nation because of cultural differences. Kalliny and Hausman (2004) found that cultural and religious animosity impact consumers purchase decision in regard to foreign products. Those who harbour cultural or religious animosity toward a country are more likely not to purchase products fi-om that hated country. Nijs sen and Douglas (1999) tested the animosity model in The Netherlands and found support for the theory. They also found that those who are more willing to travel to foreign countries to have a more positive attitude toward foreign products. Shin (2001) tested the animosity model in Korea and found support for it as well. Country Risk Root (1987) identified four types of risks that play a significant role in MNCs entry decision. These risks include political risk (instability of political system as in some African countries), ownership/control risks (expropriation), operations risk (local content requirement), and transfer risk (remittance control). These risks usually play a significant role in determining the amount of resources that MNCs commit in a foreign market. For example, when these risks increase, MNCs may choose to commit the smallest amount of resources to increase their ability to exit quickly when needed. This argument may suggest that licensing or exporting may be the most desirable entry. Companies usually choose the entry mode based on risk/return or cost/control trade off effects (Goodnow 1985; Root 1987). The level of risk can be moderated by the type of control attained (Kwon and Konopa 1992) and although several authors suggested that these risks can be substantially reduced by limiting ownership in a foreign venture (Brandley 1977; Korbin 1983; Vemon 1983), the situation gets more complicated when we talk about war, economic, cultural and religious animosity. These animosities complicate the issue because if consumers who harbour any of these animosities are not willing to purchase products made in the hated country, then the multinational firm may be forced to consider other options to overcome the animosity problem. Kwon and Konopa (1992) provided the following comparison between exporting and foreign production in regard to risk: 1. Foreign production requires relatively more resource commitment (initial investment , operating costs) than exporting, 2. Foreign production entails relatively greater risk exposure than exporting, 3. Foreign production provides relatively greater control of market than exporting, and 4. Foreign production provides an expectation of a relatively higher rate of return than exporting. International Entry Modes and Propositions Tse, Pan and Au (1997) argue that most past studies on foreign entry mode strategies of MNCs have adopted one of two theoretical approaches, the transaction cost approach or eclectic framework approach proposed by Dunning (1980, 1988). The transaction cost approach is based on the economic rationale that firms will minimize all costs associated with the entire value-added chain. This approach stresses the importance of firm-specific variables (Agarwal and Ramaswami 1992; Erramilli and Rao 1993; Gatignon and Anderson 1988; Kogut and Singh 1988). Dunnings (1980) eclectic framework integrates several strands of international busine ss theories on cross-border business activities. Dunning (1980) argues that international business activities are influenced by three types of factors: host country-specific factors, ownership specific factors, and intemalization factors. The host country-specific factors deal with country risks and location familiarity (Hill, Hwang and Kim 1990), while ownership-specific and internalization factors focus on the industry-specific and firm-specific variables. Of interest in this paper are the four primary international entry modes of joint venture, wholly owned subsidiaries, exporting and licensing. Researchers investigated the choice of entry modes of multinational corporations in regard to control and resource commitment. Several authors suggested that each of these entry modes is consistent with a different level of control (Calvetl984; Caves 1982; Davidson 1982; and Root 1987). Control is defined as the authority that the investing corporation has over operation and st rategic decision making. Resource commitment is defined as dedicated assets that cannot be redeployed to alternative uses without loss of value. Hill, Hwang and Kim (1990) argue that while wholly owned subsidiaries can be characterized by a relatively high level of control and resource commitments, the opposite can be said of licensing agreements. With respect to joint ventures, the levels of control and resource commitments vary with the nature of the ownership split. Alliances For purposes of this paper, joint ventures and strategic alliances are treated equally. The formation of alliances is a crucial one because a firm can enter a foreign market by itself or by forming an alliance with another firm to reduce investment risks and enhance its competitive advantage. Kogut (1988, p. 319) defines joint venture as, a joint venture occurs when two or more firms pool a portion of their resources within a common legal organization. Tse et al. (1997) argue that firms are motivate d to form alliances with other firms to reduce investment risks, share technology, improve efficiency, enhance global mobility, and strengthen global competitiveness. Find out how our expert essay writers can help you with your work According to Pan and Tse (1996) foreign firms form an alliance with Subsidiary There is no doubt that globalization has increased competition and moved it from the domestic level to the global level. Due to this new level of competition, MNCs have found it necessary to look for the least expensive resources of production to stay competitive. This has forced some MNCs to look for cheaper resources outside the home country. To take full advantage of cheap labour and raw materials, MNCs may choose to set a subsidiary in a desired host country. Birkinshaw (1997) defines Before You Go, You Should Know: Kalliny and LeMaster subsidiary as any operational unit controlled by the MNC and situated outside the home country. The subsidiary ownership dec ision could be a very complex function of several factors including country characteristics, industry characteristics, product characteristics and firm characteristics (Erramilli 1996). The initiative for setting up a subsidiary lies in the identification of an opportunity to use or expand the MNCs resources (Birkinshaw 1997). The theory of internationalization argues that firms expand globally to realize the value of intangible assets (Buckley and Casson 1976). Subsidiaries often have unique capabilities and critical links vwth local customers and suppliers and in such situations the ability of the subsidiary to pursue local opportunities and subsequently to exploit them on a global scale is an important capability (Bartlett and Ghoshal 1986; Harrigan 1983; Hedlund 1986). On the other hand, problems encountered by the new subsidiary can affect the entire corporation (Newbould, Buckley and Thurwell 1978). U.S. multinationals were found to have a predominant preference for w holly owned subsidiaries (Stopford and Wells 1972). Weinstein (1974) found that 62 percent of the subsidiaries were either fully- or majority owned. Gatignon and Anderson (1988) observed that American multinationals had an intrinsic tendency to prefer wholly owned subsidiaries. Although American companies prefer subsidiaries, setting up a subsidiary is more risky than other forms of entry (Yip 1982). For example, when setting up a subsidiary, the entire cost is absorbed by the MNC. In addition, the subsidiary may lack information necessary for success in a particular environment or culture. History is full of examples where companies lost their business to expropriation, confiscation or destruction especially during time of conflict. Consider what happened to the Jews businesses in Egypt when the national government was established in 1952. Many American companies lost their investment when communist regimes were established in countries like Cuba and others. We argue tha t during times of conflict, the hated country will be more likely to be targeted by citizens and governments. 23 Wild, Wild and Han (2003) argued that the events of September 11, 2001 have literally changed the world. They base their argument on a study that was conducted in the United States and nine Muslim countries where it was found that the majority of U.S. citizens feel that the Muslim world does not respect the American culture and vice versa. There is a sense of animosity and we think that this sense of animosity will play a role in the foreign entry mode selection. It is plausible to think that companies will take into consideration the level of animosity in the host country and devise their entry strategy accordingly. Based on this argument we propose: Proposition 2: Other things being equal, in countries where war, economic, religious and cultural animosity is low, country risk will be low and multinational companies will be more likely to prefer committing a hig h amount of resources and therefore a subsidiary mode of entry would be preferred. Exporting is the marketing and direct sale of domestically produced goods in another country. There are several reasons as to why companies may choose to export. For example, exporting does not require that goods be produced in the target country so no investment in foreign production facilities is required. Exporting allows companies to increase their samples by targeting and selling in foreign markets. Moreover, exporting helps companies diversify their markets, reduce their vulnerability to lags in domestic demand, extending product life cycles, using idle capacity, and reducing unit costs through economies of scale. Exports also help sharpen competitiveness, broaden contacts, and enhance understanding of global markets and cultures. In addition, the nation benefits from exporting because increased exports create jobs, spur economic growth, bring in tax revenues, and improve the balance of payments (Food Export USA). Marketing Management Journal, Fall 2005 Before You Go, You Should Know: Kalliny and LeMaster Although exporting has many advantages and may seem very appealing to companies especially those that are faced with a saturated home market, exporting has several disadvantages. One of the main issues exporting companies face is the decision of adaptation versus standardization. When companies are faced with a situation that calls for adaptation, this may increase the cost of the product. Exporting companies may have to develop new promotional materials which may add to the cost of the product and companies that are engaged in exporting may incur added administrative costs. Moreover companies may have to wait longer for payments and finally, exporting companies may have to obtain special export licenses (Food Export USA 2004). As can be seen from the above points, exporting can be a complicated process and may not be easy. The situation gets even m ore complicated when cultural and religious animosities are added to the equation. As discussed above these animosities do impact consumer preference and purchasing intentions. Kwon and Konopa (1992) argue that the foreign entry mode choice depends not only on the characteristics of the firm but also on the characteristics of the foreign market. Goodnow (1985) and Root (1987) viewed the characteristics of the firm and the product as internal factors and the characteristics of the foreign market as external factors. We argue that the level of cultural and religious animosities would fall under the external factors because they are part of the foreign market characteristics. Moreover, we argue that these animosities will play a role in the decision of the exporting country as to where to export and what to export to which country. For example, Saudi Arabia and Kuwait banned Barbie toys from their markets calling them a threat to morality and complaining that the revealing clo thes of the Jewish toy are offensive to Islam (CBS News 2003; Gulf Marketing Review 1996). The banning of the Barbie toy reveals the cultural and religious animosity between the West and the Arab countries and shows their impact on purchasing intentions. Our rationale is based on the reasoning that companies engaged in producing products that may be viewed negatively by the foreign consumer should find a local element to help in decreasing the negative aspects that is caused by animosity. Thus we propose: Proposition 3: Other things being equal, the level of cultural and religious animosity will play a role in determining how the foreign product is perceived by foreign customers. Proposition 4: Other things being equal, in countries where war, economic, religious and cultural animosities are high, exporting will not be the preferred entry mode. Licensing is the process by which the right to use intangible intellectual property is granted by one party (licensor) to another (t he licensee). Licensing permits a company in the target country to use the property of the licensor and such property usually is intangible (e.g., copyrights, patents, trademarks, and so forth). The licensee pays a fee in exchange for the rights to use the intangible property and possibly for technical assistance needed. There are a number of advantages for using licensing for the licensor and the licensee. Licensing allows many businesses to enter international markets through creative use of intellectual property rights in partnership with other companies. The low level of risk taken by the licensor for licensing requires little investment on the part of the licensor. Licensing allows companies to maximize income by expanding market opportunities without large capital expenses. A benefit to the licensee may include rapid entry into a market using technology developed and tested by others (Food Export USA 2004). Although licensing may have a number of advantages, it also poses certain risks to the licensor. When an MNC grants a license to a foreign enterprise to use firm specific know-how to manufacture a product or market a product, it runs the risk of the licensee disseminating that know-how, or using it for purposes other rch into the efficacy of formalised marketing planning (Thompson 1962; Leighton 1966; Kollatt et al. 1972; Ansoff 1977; McDonald 1984; Greenley 1984; Piercy 1997; Smith 2003) has shown that marketing planning can make a significant contribution to commercial success. What is agreed, however, is that strategic marketing planning presents a useful process by which an organization formulates its strategies, providing it is adapted to the organization and its environment. Indeed, Smiths PhD thesis (2003) proved a direct link between organisational success and marketing strategies that conform to what previous scholars have agreed constitutes strategy quality, which was shown to be independent of variables such as size, se ctor, market conditions and so on Most managers accept that some kind of procedure for marketing planning is necessary. Accordingly they need a system which will help them to think in a structured way and also make explicit their intuitive economic models of the business. The choice of entry mode is an important part of a firms new business development strategy. A diversifying entrant is not only concerned about what markets to enter, but also how to enter. One to fill resource gaps inside a firms primary business domain and the other to redeploy excess resources in exploring new markets outside. Because a firm always retains the option of entering a market via internal development as the default mode, our objective is to analyze the conditions under which a firm would choose to enter a market via acquisition rather than through organic growth. Empirical Puzzle in the Relationship between Entry Mode and Relatedness The resource-based view posits that a firms entry into ne w markets results from excess capacity in valuable resources that may be applicable outside a firms existing business activities, and from the potential for economies of scope offered by different resource combinations (Penrose, 1959; Teece, 1980, 1982). Concerned about how the redeployment of excess resources can reduce the costs of entering and operating in a new market, researchers make a distinction between related and unrelated diversifications. Yip (1982) argues that the relatedness between a firm and the new market entered significantly reduces the costs of entry when a firm enters via internal development. In contrast, the relatedness does not reduce the costs of entry when a firm enters via acquisition since the price of the acquiree is set by the market for corporate control. As such, a firm is expected to enter related markets via internal development while entering unrelated markets via acquisition. Extending Yips model, Chatterjee (1990) argues that the related ness leads to more reduction in operating costs because the firms resources are more applicable. Since the prospect of reducing operating costs provides a strong incentive for a firm to use its own underutilized resources, as opposed to acquiring resources from external sources, a firm is expected to enter related markets via internal development. This hypothesis of a simple link between entry mode and relatedness has failed, however, to receive empirical support. Culture is embedded deeply in everyday life and can be defined as a combination of values, perceptions, attitudes, motivations and learning experiences. (Wilkins, 2004) Despite globalization, cross-cultural differences remain a potential minefield for any company wanting to do business overseas. The success of international business deals rests as much on external factors like politics, economics, and technology as on the understanding of culture. In the course of international expansion, organizations encounte r factors such as government regulations, legal and financial systems, and cultures, languages, and greater distances, new modes of transport and currency exchange rates. Cultural factors are cited as one of the biggest barriers to successful global business strategies. Often the force a company has to deal with may not necessarily be another competitor but the cultural traditions of the country (Wilkins, 2003). Managerial attitudes, values, behaviours, and efficacy differ across national cultures and Ã¢â¬Ëone size fits all philosophy is no longer valid (Adler,2003). The success of international business deals rests as much on external factors like politics, economics, and technology as on the understanding of culture. Despite globalization, cross-cultural differences remain a potential minefield for any company wanting to do business in China. Chinese culture is different and learning the subtlety of these differences can smooth the way forward for business looking to expand in the Chinese market (Chatman et al., 2004). Chinese cultural fit constitutes a key factor and should be given the necessary attention at all stages of business development. Any organization looking to expand in China should develop a deep appreciation for the culture and history of China. Find out how our expert essay writers can help you with your work Business management has to be congruent with Chinese culture and management. Furthermore, this study improves upon prior ones by identifying entry events and their mode of entry with a higher precision previously unachieved. Specifically, we identify entry via acquisition under a strict condition that an acquirers new product code in the year of entry can be traced to an acquirees product listing in the year prior to the acquirers entry event. The detailed tracing is possible because the product classification system we use is much more fine-grained than the SIC system. In comparison, some studies suffer from a n Ã¢â¬Å"all or nothingÃ¢â¬ bias where all diversification moves under one SIC code are assigned to either acquisition or internal expansion arbitrarily (Chatterjee, 1990). Others suffer from another type of aggregation bias where the entry mode is measured as a continuous variable indicating the dominance of one mode in sales contribution over an arbitrary time period, as opposed to the mode of entry specific at the firm-market level (Chatterjee and Singh, 1999). Our findings show that the dynamics of firm-market relevance affect the choice of entry mode in subtle ways that prior studies have not considered. By separating entries inside from those outside, we not only turn the degree of relevance into a significant predictor for the use of acquisition as entry mode, but also reveal two contradicting relationships. For the entries inside, the use of acquisition increases with the degree of relevance. Quite the opposite, for the entries inside, the use of acquisition de creases with the degree of relevance. Therefore, in addition to finding empirical support for the acquisition-unrelatedness link for which prior studies show mixed results, we uncover the conditions under which the commonly-asserted relationship would hold. Moreover, we find the trajectory and the duration of relevance to be significant predictors for the use of acquisition as entry mode. For the entries outside, the greater the improvement in relevance, the more likely a firm will use acquisition as entry mode. That is, firms that have been moving closer toward the new market are more likely to choose acquisition over internal development. This pattern is consistent with the idea that firms use acquisitions to move into new markets along a trajectory of exploration outside the primary business domain. In contrast, for the entries inside, the longer the duration of relevance, the more likely a firm will use acquisition as entry mode. That is, firms, which have been close to the new market for a longer period of time but have not entered yet, are more likely to choose acquisition over internal development. This pattern is consistent with the idea that firms use acquisitions to fill gaps in their product portfolios that have been persistent over time, perhaps because the firm has lacked the resources and capabilities needed to fill the gap organically (Helfat and Lieberman, 2002). Conclusions In sum, this paper makes three contributions to the literature. First, we clarify two conceptually distinct aspects of relatedness. Second, we capture the dynamics of firm-market relationship with three novel conceptualization and measures of relevance. Third, we validate the conditions under which acquisition is more likely to be used as entry mode for new business development. By making these advancements, we demonstrate the use of entry mode as different mechanisms for reconfiguring a firms resources and capabilities, and help to resolve the ambiguity in prior work on choices of entry mode. Sarkar Cavusgil (1996) have examined the most central issues within this particular field of research together with the relationships between the themes such as 1) Product-Market Factors, 2) Firm-Foreign Specific Factors, 3) Host Market Factors, 4) Cultural Factors, 5) Home- Market Factors, 6) Global Industry Structure, 7) Global Strategic Motivations, 8) Globa l Corporate Objectives, 9) Firms Entry Mode Choice, 10) Political Negotiated Entry, 11) Relational Dimensions of Interfirm Collaborations, 12) Firms Bargaining Power With Respect to Foreign Governments, 13) Performance. The research has primarily focused on the examination of coherence between the product, the foreign market, and specific factors relating to the enterprise in question and finally the most efficient entry mode for any given enterprise in relation to these parameters. Find out how our expert essay writers can help you with your work The manufacturing sector has been in focus at the expense of the service sector (Erramilli Rao 1993; Ekeledo Sivakumar 1998, 2004; Domke-Damonte 2000) and emphasis has primarily been given to making predictions regarding accumulated levels of entry modes (Aulakh Kotabe 1997). Taking Benito and Welch (1997) as the starting point a classification of the theories is taken into an Ã¢â¬Å"economic perspectiveÃ¢â¬ and a Ã¢â¬Å"process perspectiveÃ¢â¬ because it then becomes possible to compare and evaluate some central economic theories which have not been developed specifically to cover the entry mode problematic, but nevertheless contains methods, sub areas, variables, etc. which can be used in the further development. The process-perspective puts particular importance to behavioural factors as drivers of company internationalisation and penetration is thus an important aspect in this theory formulation. The following criteria determined the selection of theories within the two classifications: they must represent the subject field of business economics with both present and potential value for considerations and decisions regarding the entry of international markets they are frequently referred to in the relevant literature they reflect and cover the meta-dimensions of the reference framework. Communication plays a key role and the highest hurdles for buyers looking to work with suppliers in China as language is one of the major issues for external companies looking to enter the Chinese market. An example which clearly depicts the impact of communication and culture relates to the fact that most Chinese companies and workers dont explicitly say Ã¢â¬Ëno. A US manufacturing firm was not aware of this as this was in direct contrast to US culture. After a meeting with some Chinese delegates on a deal, the US suppliers thought that the Chinese agreed to the deal as they didnt say Ã¢â¬ËNo, but in reality, it was later found out that the deal was not approved by the Chinese. Due to cultural and communications barriers, researchers have suggested that its better to write than to speak to Chinese business people and exude clarity without leaving anything for interpretation. Other traits of Chinese communication practices are avoidance of aggression tactics during meetings and discussions. It is believed that the Chinese dont respond well to tactic s like shouting, threats or ultimatums. All this means, that there is an increasing need for firms not only to market appropriately developed products but also to design and promote in a culturally sensitive way. Chinese believe in long term outlook because it forms the basic element of Confucian ethics. The combination of long-term orientation and collectivism results in family ties, long term thinking and things like filial piety and paternalism (Mahoney, 2001). External audit Internal audit Business and economic environment Economic political, fiscal, legal, social, cultural Technological Intra-company The market Total market, size, growth and trends(value volume) Market characteristics, developments and trends; products, prices, physical distribution, channels, customers, consumers, communication, industry practices Competition Major competitors Size Market share coverage Market standing and reputation Production capabilities Distribution policies Marketing methods E xtent of diversification Personnel issues International links Profitability Conclusions In order to be realistic, it must take into account the organizations existing competitive position, where it wants to be in the future, its capabilities and the competitive environment it faces. This means that the marketing planner must learn to use the various available processes and techniques which help to make sense of external trends, and to understand the organizations traditional ways of responding to these. Where marketing planning has failed, it has generally been because companies have placed too much emphasis on the procedures themselves and the resulting forecasts, rather than on generating information useful to and consumable by management. But more about reasons for failure later. For now, let us look at the marketing planning process in more detail, starting with the mission statement. References Aaker,D (2004) Strategic Marketing Managment: John Wiley Sons Baker,M (2000) Marketing Strategy and Management; Macmillan Business Beamism, K Ashford,R (2005) Marketing Planning; Butterworth- Heinemann Bradley,F (2003) Strategic Marketing in the customer driven organisation, Wiley Brennan,R, Baines,P and Garneau, P(2003) Contemporary Strategic Marketing , Palgrave Capon, C Hulbert, J M (2001) Marketing Management in the 21st Century; Prentice Hall Cooper, J Lane P (1997) Practical Marketing Planning; Macmillan Doole, I Lowe P (2005) Strategic Marketing Decisions in Global Markets; Butterworth- Heinemann Doyle,P (2003) Marketing Management and Strategy. Prentice Hall Europe Drummond, G Ensor, J (2001) Strategic Marketing : Planning and Control; Butterworth- Heinemann Fifield,P (2000) Strategic Marketing Management: Planning and Control; Butterworth- Heinemann Gilligan C, Wilson, R. S (2004) Strategic Marketing Planning Find out more from UK Essays here: https://www.ukessays.com/services/example-essays/marketing/strategic-marketing-planning.php#ixzz3EF3yuxUb
Tuesday, May 19, 2020
According to WebsterÃ¢â¬â¢s, leadership is a position as a leader of a group, organization, etc.; the time when a person holds the position of leader; the power or ability to lead other people. We are living in a world where our achievements and failures are either accredited or confounded to the leaders of organizations, religion, political leaders just to name a few. We should be observing leadership in an unconventional viewpoint since all of us are leaders in one way or the other; in our personal life, families, careers, or organizational positions. Wherever we are somebody is watching and will be influenced by our lifestyle whether be good or bad. Good leaders are made not born. If a person has the desire and willpower, he or she can become an effective leader. In my opinion, good leaders develop through a never ending process of self-study, training, experience, and education. To inspire workers into higher levels of teamwork, there are certain things a leader is required to know and do. Sometimes they come naturally but for some, they are acquired through continual work and study. Superior leaders are continually working and studying to enhance their leadership expertise; they are not resting on their achievements. A good leader always looks out for the welfare of their people. Ã¢â¬Å"Early studies identified three different styles: autocratic, democratic, and laissez-faire. The issue in these three leadership styles is the degree and location of control. The authoritarian, orShow MoreRelatedLeadership Is Effective And Ineffective1322 Words Ã |Ã 6 PagesNotes: Explain what leadership is, when leaders are effective and ineffective, and the sources of power that enable managers to be effective leaders Leadership is effective positive influence by inspiring, motivating and directing other effectively. To achieve the goals of the organization and their personal goal. Effective leadership is the process by which leaders increase the organizations ability to eliminate barriers and enhance engagements. According to our text, Leaders are influential byRead MoreEmotional Intelligence Of Leaders By Daniel Goleman1322 Words Ã |Ã 6 Pages In Daniel GolemanÃ¢â¬â¢s article, Ã¢â¬Å"The emotional intelligence of leaders,Ã¢â¬ he asserts that emotional intelligence not rational intelligence is what distinguishes exceptional leaders from average leaders. Biologically speaking, feelings and emotions developed in the limbic system before the development of rational thought in the cerebral cortex. Emotional intelligence involves the balance and synergy between the emotional and rational centers of the human brain. Goleman, a psychologist who has writtenRead MoreThe Difference between a Leader and a Manager885 Words Ã |Ã 4 Pageshallmark of a genuine leader. This relates tour understanding of leadership as a verb; something we do as opposed to what we are. This narrow definition however, misses the point that leadership is not necessarily the function or role of only a leader rather, leadership as a concept represent the coming together of many component including organization hierarchy, strategy and those prepared to fo llow and enact. It is not simply enough therefore to consider the actions of a leader in isolation of processRead MoreCharacteristics Of A Good Leader1655 Words Ã |Ã 7 Pagesbehavior of individuals within these organizations in order to have the ability for further development. Individuals are all defined by certain behaviors and characteristics. Specifically from a management standpoint, it is important to understand these behaviors and characteristics so that the manager can demonstrate a certain leadership style that will work best within their own organization. There is a common saying within most organizations, stating that all leaders should be managers, but not allRead MoreLeadership, Leadership And Leadership Development915 Words Ã |Ã 4 PagesThere are two kinds of people in this world, followers and leaders. Followers are the people that never take a leadership role in any activity. They are more valued by followers and have higher performing teams. (Cherry 2014) Ho wever, leaders are the ones that use their leadership skills to make a difference in this world, such as presidents, teachers, or even college graduates. Leadership is not something you can learn from a book, but you have to gain this skill through experiences such asRead MoreLeadership Behavior From An Administrator Essay1379 Words Ã |Ã 6 Pagesto public administration need proper leadership behavior from an administrator. Public sectors maintain an upward form of hierarchy, so the command authority is needed from the leader to ensure efficiency of the public organization. In order to achieve organizational goals, the process of influencing followers and sub-ordinates is called leadership in administration. A leader influences his/her followers through power influence and traits as a leader. A leader can influence the followers using his/herRead MoreTransformational. Transformational Leaders Strive For Furthering1745 Words Ã |Ã 7 PagesTransformational leaders strive for furthering the vision and mission of the organization, following the rules and values of the organization, yet still promote engagement and innovative revisions to improve the organization. Any successful changes that happen within an organization are heavily dependent on the effectiveness of the leadership of the organization. Additionally, this style fosters a growth for new and upcoming leaders in the individuals within the organization. Transformational leadership is aRead MoreContemporary Views Of Leadership And Leadership1513 Words Ã |Ã 7 PagesViews of Leadership Leadership encompasses all areas of our lives. Everyone performs a leadership role in their household one way or the other. Parents perform leadership roles every day in their homes. In schools, leadership roles are being performed on a daily basis by students and teachers. In churches, there are pastors, deacons, elders, etc. perform leadership roles. At your jobs, leadership roles come into play each and every day. As you can see leadership is a veryRead MoreThe Socio Centric Mindset : A Cultural Mindset And Communicate Effectively Over A Diverse Group Of Employees1037 Words Ã |Ã 5 Pagesthe ability for organizations to expand globally. As organizations seek to expand globally, they must develop and implement a cultural mindset among a diverse global group of employees. Global organizations must seek out integrating perspectives that will lead to success, develop negotiation strategies to craft a common cultural mindset and communicate effectively over a diverse group of employees. Integrating Perspectives Different leadership mindsets will affect organizations differently; in someRead MoreThe Definition Of Leadership And The Importance Of Leadership875 Words Ã |Ã 4 PagesLeadership Reflection Essay The purpose of this essay is to ruminate on the definition of leadership and the importance of leadership in an organization. The commitment to lead, guide, and inspire other people has an impact on the organization, but, what is leadership? Leadership can be defined and applied in various ways. A leader must have a vision which guides the team to succeed in meeting a goal. A leader must be flexible to adjust to the different variables and treat each individual using
Wednesday, May 6, 2020
Hidden Ghost In William ShakespeareÃ¢â¬â¢s Hamlet, King Hamlet is killed by Claudius, Prince HamletÃ¢â¬â¢s uncle. The late king returns as what is suspected to be a ghost or spirit and gives Prince Hamlet orders to seek revenge on Claudius and murder him. This causes Hamlet to intensely consider whether honor or logic is more important. Although Shakespeare only directly refers to one ghost, there are many more ghosts behind the scenes. In the tragedy by Shakespeare, Hamlet as well as all the characters have their own underlying ghosts and subconsciouses of anxiety, insanity, and dependency that result in death. Hamlet, the most intelligent character created by Shakespeare, is consumed by a ghost of insanity. When his late father returns by spirit and orders Hamlet to kill Claudius, Hamlet becomes insane. In the book Shakespeare A to Z by Charles Boyce, he states, Ã¢â¬Å"The Ghost pushes Hamlet to face the trauma of his fatherÃ¢â¬â¢s murderÃ¢â¬ (214). The relationship between Prince Hamlet and King Hamlet was a very strong relationship for that time period and in royalty. Therefore, when the spirit who appeared to be Prince HamletÃ¢â¬â¢s father told him to murder Claudius. He wanted follow his orders because he wanted to honor his father and obey his commands. Prince Hamlet also tried to think logically in his way. He realized that by killing Claudius that would be considered murder, and HamletÃ¢â¬â¢s religious views shun murder as cruel and morally wrong. He knew that if another king was to die then theShow MoreRelatedWilliam Shakespeares Hamlet981 Words Ã |Ã 4 PagesWilliam Sha kespeare is a historic writer that is well known and wrote many plays in his lifetime. In most of his plays, if not all, he has incorporated hidden meanings and messages. The majority of his hidden meanings are controversial topics of his time period. In ShakespeareÃ¢â¬â¢s play, Hamlet, the controversial topic that is throughout the play is religion and the afterlife. Afterlife plays a big role in Hamlet and is discussed throughout the play. Multiple authors have written on the topic of afterlifeRead MoreHamlets Fatal Flaw Essay688 Words Ã |Ã 3 Pagesis an interesting play in many ways. The character Hamlet is particularly intriguing in regards to his fatal flaw. HamletÃ¢â¬â¢s fatal flaw is a specific trait that forces him to postpone killing the king and it is this trait that drives Hamlet mad (Shakespeare 1.4.23-38). This Shakespearean tragedy is open to many interpretations of HamletÃ¢â¬â¢s fatal flaw. Two recent film productions of the play, Kenneth BranaughÃ¢â¬â¢s H amlet and the ZeffirelliÃ¢â¬â¢s Hamlet, each show a different fatal flaw in Hamlet. BranaughRead More Imagery of Disease and Decay in Hamlet Essays1069 Words Ã |Ã 5 PagesImagery of Disease and Decay in HamletÃ Ã Ã Ã Ã William Shakespeare found that imagery was a useful tool to give his works greater impact and hidden meaning. In Hamlet, Shakespeare used imagery to present ideas about the atmosphere, Hamlets character, and the major theme of the play. He used imagery of decay to give the reader a feel of the changing atmosphere. He used imagery of disease to hint how some of the different characters perceived Hamlet as he put on his antic disposition. And finallyRead MoreShakespeares Hamlet Symbolism Essay1814 Words Ã |Ã 8 Pages William Shakespeare uses a multitude of major well-hidden symbols in his famous play, Hamlet. One of the first symbols to be uncovered early in the play is Hamlets father returning as an apparition. His fatherÃ¢â¬â¢s ghost reveals the plot of the play to the reader by telling Hamlet that Claudius, his uncle murdered him in cold blood and Hamlet must avenge him ultimately symbolizing death. Another a major yet well-hidden symbol within the play is the flowers that Ophelia hands out to her brother LaertesRead More The Works of William Shakespeare Essay1429 Words Ã |Ã 6 PagesThe Works of William Shakespeare William Shakespeare is customary regarded to be the finest dramatist the world has ever seen and the greatest poet who has created his plays in the English language. Besides, Shakespeare has been the worldÃ¢â¬â¢s most famous author. No other writerÃ¢â¬â¢s works have been published so many times or read so broadly in so many places. Shakespeare knew human nature as few other writers have. He could notice in a particular dramatic case the qualities that refer to all humanRead More Disease and Death in Hamlet Essay992 Words Ã |Ã 4 PagesDeath in HamletÃ Ã Ã Ã Ã In Shakespeares time, Denmark was a horrible, rotting, poisoned land due to its hidden deceit. In Hamlet, Shakespeare makes many references to this as a means of clarifying relationships in the story. Writers often use imagery to provide detail and development, which help us understand ideas within and the atmosphere of the play. Hamlet, Horatio, and the ghost are the characters who allude to Denmarks state of decay. Shakespeares frequent references to death and diseaseRead MoreEssay on Crawling Inside the Mind of Shakespeares Hamlet1712 Words Ã |Ã 7 PagesHamlets character--for ambiguous and complicated speech is a distinctive element of the mind with which Shakespeare has endowed his hero--this characteristic operates on various levels. We soon see that in private he continues to use wordplay as a disguise in which to taunt and trick both adversaries and friends, so that he is not fully understood and they are encouraged to disclose hidden thoughts: Pol. Do you know me, my lord? Ham. Excellent well. You are a fishmonger. Pol. Not I, my lordRead More Insanity in Hamlet1565 Words Ã |Ã 7 Pagesthe murder of his father. For hundreds of years, William Shakespeare has captured the hearts of many theatre fanatics and critics as well as writers all alike. The Play entitled Hamlet is no exception. Hamlet is a play about a princes journey through the perils of his own mind, as he is brought to light of certain circumstances regarding his father?s tragic death, with which brings him to certain conclusions that demand action. Shakespeare planned out the play so that it would smoothly shiftRead MoreHamlet s Downfall Of William Shakespeare s Hamlet1701 Words Ã |Ã 7 PagesHamletÃ¢â¬â¢s Downfall William ShakespeareÃ¢â¬â¢s Hamlet is perhaps the most significant tragedy ever written in literature to date. Hamlet is a reflection of everyday life at some point. Revenge against one another is commonly used in comparison Hamlet to modern life. ShakespeareÃ¢â¬â¢s Hamlet eloquently uses foreshadowing and other literary techniques to portray the insanity of Hamlet, which lead to his downfall. Ã¢â¬Å"HamletÃ¢â¬â¢s test assumes that a criminal, when confronted with his deeds, confesses his guilt throughRead MoreWilliam Shakespeares The Tragedy of Macbeth1576 Words Ã |Ã 7 PagesIn the suspenseful drama The Tragedy of Macbeth, William Shakespeare tells a tale of an overly ambitious noblemanÃ¢â¬â¢s sinful rise to power and his dreadful, deadly downfall. Macbeth, the main character and antagonist, begins the drama as a loyal captain. Duncan, the King of Scotland, praises Macbeth, declaring him as a Ã¢â¬Å"worthy gentlemanÃ¢â¬ (I.ii.24). Later, three unnamed witches appear to Macbeth and his loyal friend Banquo, and the witches prophetically greet Macbeth as Thane of Glamis, Thane of Cawdor
Question: Discuss about theStrategic Influence for Employees and Customers. Answer: Introduction Strategic influence refers to the art of planning and developing an influence on the public, employees and customers. It is essential for sustaining advantageous competitiveness in contemporary organisations. It is engendered by strategic leaders by the organisation's strategic direction (Hughes, Beatty, Dinwoodie, 2014). Through strategic thinking, leaders establish paths to pursue and strategically act through their courage despite the uncertainties faced. However, they cannot achieve the desired success by themselves but require other employees good ideas and committed efforts. The following are how one can strategically influence a firm to maximise its benefits: Build and maintain an influence that is strategic: The ability to influence other members in an organisation requires one to be part of the efforts to the strategy formulation and implementation (Hughes, Beatty, Dinwoodie, 2014). Strategically influence may be exerted to achieve a significant shift from the way resources are invested or deployed to that which complies with strategic intent and to get people working on common goals towards a long-term strategic direction. Furthermore, through strategic influence, one can build trust in others by taking every idea to be valid for a strategic venture for a sincere commitment. However, influence is built over time on a robust platform of impacting others positively on their beliefs and building relationships. Being lovable and building trust to others: Leaders working with others that dont like them may get frustrated with whatever they do and even mistrusted (Kazmia Naaranojab, 2015). Therefore, it is essential for leaders who work towards a strategic change to examine their relationships with other employees in the organisation and build trust for them. Trust can as well be established through effective communication. Besides, people should see them as credible and competent enough for their roles. This creates a strong influence even to the public and customers hence enabling them to maximise their service delivery for maximised benefits. Being clear about passions and convictions: This makes leaders to be perceived as more authentic because clarity is depicted from their actions. For example, clarity helps to choose some challenges to tackle and leave others without questions. Passion enables perseverance during adversity (Kazmia Naaranojab, 2015). When others see this dedication, they may be affected hence devote themselves to their duties. This promotes an efficient organisational operation. Ability to manage the political landscape: Bringing about change to an organisation, for instance, the way resources are being invested, is associated with power. Ideally, a shift in strategy is the same as a shift in power and thus may arouse conflicts due to different political landscapes (Lussier Achua, 2013). However proper conflict management may encourage the employees to work in harmony to satisfy the organisational goals. Involving others: People may have different perspectives towards a project. Involvement ensures that an overall strategy is better compared to when it is developed by the leader in isolation (Ireland, Hoskisson, Hitt, 2013). Also, the parties involved in the idea generation will be more committed to the final product and have a shared understanding of the entire process. Furthermore, involvement encourages consensus development towards the chosen direction to enable the group work together and instils a sense of value to others since their inputs and perspectives are considered in the process. In a nutshell, one can strategically influence an organisation to maximise on its goals through employee involvement, managing the political landscape, being clear about passions and convictions, being lovable and building trust in others and building and maintaining an influence that is strategic. References Hughes, R. L., Beatty, K. C., Dinwoodie, D. (2014). Becoming a Strategic Leader: Your Role in Your Organization's Enduring Success (2nd ed.). San Francisco: CA: Jossey-Bass. Ireland, R. D., Hoskisson, R. E., Hitt, M. A. (2013). The Management of Strategy: Concepts and Cases, Mason: OH: South-Western Cengage Learning. Kazmia, S. A., Naaranojab, M. (2015). Cultivating strategic thinking in organisational leaders by designing supportive work environment. Procedia- Social and Behavioural Sciences, 181, 43-52. Lussier, R. N., Achua, C. F. (2013). Effective Leadership. Mason: OH: South-Western Cengage Learning.
Tuesday, April 21, 2020
MedImmune is dedicated to helping patients live better lives through advances in science and medicine. Hundreds of thousands of patients have benefited from their products, which are designed to treat or prevent infectious diseases, cancer and inflammatory diseases (Wikipedia, 2012). Their extensive research and development efforts are focused on these same areas. MedImmune acquired FluMist when it purchased Aviron in 2002. FluMist is AvironÃ¢â¬â¢s lead product for development and commercialization, itÃ¢â¬â¢s a live virus vaccine delivered to the patient as a nasal mist for the prevention of influenza (Wikipedia, 2012). Key Issues The board of MedImmune believed that Aviron was a good strategic fit but didnÃ¢â¬â¢t know what to offer. We need to see all the advantages and disadvantages to come to the conclusion. With other vaccines and cancer treatment products, MedImmune wants to get larger market shares and become the leader in vaccines discovery, development, manufacture, and marketing. From the background we can see Aviron is also a biopharmaceutical company. We will write a custom essay sample on Medimmune Case or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Its lead product, FluMist, is also a live vaccine. There is a huge overlap in their researches, which can provide MedImmune a good scale of economy and cost efficiency. For Example, Synagis, as MedImmuneÃ¢â¬â¢s main product, is the first monoclonal antibody successfully developed to combat infectious disease, and is indicated for the prevention of serious lower respiratory tract disease caused by respiratory syncytial virus (RSV) in pediatric patients at high risk of RSV disease. AvironÃ¢â¬â¢s PIV-3 is a common childhood respiratory virus (Wikipedia, 2012). By purchasing Aviron, MedImmune will achieve all complete products and undergoing clinical trials including the tax credits up to 50% attached. Risk First of all, what need to be concerned is that even though FluMist helped Aviron generate $11. 7 million in revenue for the first nine months of 2001, it reported a net loss of $89. 2 million for the same period (Sullivan, J. D. , 2004). This leaves a dangerous situation for MedImmune to value Aviron with negative earnings. The problems can be grouped into two categories: problems with estimating cash flows and problems with estimating discount rates. How long will it take to get a positive earning? What number should the discount rate be? Secondly, although the company took a long time before the introduction of the vaccine FluMist, the nasal spray flu virus has been unable to obtain FDA approval for the vaccination of young children and the elderly. FluMist also exists the problem of poor sales and difficult storage. MedImmune paid $ 1. 5 billion in 2001 after the acquisition of California Aviron in launching of FluMist. At that time, MedImmune predicted that FluMist would become a blockbuster drugs. But in fact, FluMist is quite poor performance on the market. Poor estimation on potential customers and market growth should be the main reasons for the failure. Recommendation The MedImmune Company expected that the transaction will be completed in the first quarter of 2002. The transaction will write off the companys 2002 earnings levels and reach breakeven point in 2003; then the level of its cash surplus will significantly grow (MedImmune, 2001). But from both MedImmune and AvironsÃ¢â¬â¢ statement of operations we can see that huge gap of negative earning will not be covered in 2003. From the news afterwards we know that according to the agreement reached by the two companies, MedImmune used 1. 75 shares of outstanding stock in exchange of one AvironÃ¢â¬â¢s share, total payment of $170 billion (MedImmune, 2001). If I was MedImmuneÃ¢â¬â¢s board member I would not approve this merger. MedImmune should not ignore the huge loss and expect too much on FluMist. When facing the negative cash flow, MedImmune could value Aviron based on asset value or earning power. In asset value part, they could look into its balance sheet and focus on cur rent asset number or total asset number, and then they need to deduct liabilities to reach the net asset.
Monday, March 16, 2020
Louis Vuitton Moet Hennessy Example Louis Vuitton Moet Hennessy Ã¢â¬â Case Study Example Louis Vuitton Moet Hennessy (LVMH) Case The key drivers of performance in luxury goods business include brand power and heritage. Furthermore, the intense competition generates remarkable strategies that sustain the business of luxury brands and encourage key players to participate in a more competitive manner. The success recipe in this industry looks like having the vital ability to hit the button and that is to target the segment for high net-worth individuals together with aggressive expansion to potential multiple regions by offering them diversified portfolio of luxury brands, which obviously are among of the excellent moves that LVMH performs. To nurture its leadership position, LVMH adheres to the value of excellence by employing talent, audacity and thoroughness as published in its annual report (Ramaswamy 6). In other words, it is not just only about providing competitive brands and successful retailing strategy, but employing the combined management of skills and resource s as the potential reasons why LVMH nurtures its leadership position. Creativity and innovation, and partnership and acquisition on the part of LVMH clearly resulted to employing more talented human resources, acquiring abundant resources and promoting successful quality distribution of actual product offerings, which lead further to the companyÃ¢â¬â¢s competitive advantage in its industry. LVMH businesses include wines and spirits, fashion and leather goods, fragrances and cosmetics, watches and jewelry and selective retailing. The quality of this portfolio can be characterized under the level of successfully highlighting brand power and heritage, which is an action that also has become the potential source of synergy. LVMH is having an ambitious plan to double its sales and profits in the next five years. Concerning this, one important strategy is to first undergo a more thorough customer analysis that will lead to discovering potential market segments that remain unexplored a s of today. This will most probably lead to potential increase of LVMHÃ¢â¬â¢s market share in the long run.Work CitedRamaswamy, Kannan. Ã¢â¬Å"Louis Vuitton Moet Hennessy: In Search of Synergies in the Global Luxury Industry.Ã¢â¬ Thunderbird: School of Global Management (2003): 1-15. Print.
Saturday, February 29, 2020
Political Science 1, w question paper on the president and congress of the US - Essay Example This brief, yet concise, essay now turns to an overview of the history of the Presidency of the United States. From George Washington to Barack Obama, the Presidency of the United States of America remains the highest office in the land. As head of state as well as head of government, the President of the United States of America leads the federal government as well as the Executive branch of government. Although the election of the President is indirect in the United States and is accomplished through the Electoral College, the democratic election of the President is a traditional which dates back to the establishment of a free republic on the shores of the Americas. The Second Continental Congress following the American Revolution established a confederation system of government in which the office of a President as well as the body of Congress were created. Following the Constitutional Convention in the wake of revolution, the executive branch as created and established a series of checks and balances on the authority of the executive. Accordingly, the American system of political governa nce is predicated on the belief that there is a balance of power between the three major branches of government. Thus, in an effort to ensure that each branch is counterbalanced by the others, the Executive, Congress and the Judiciary work to ensure the smooth functioning of the legislative process in the United States. The multitude of roles played by the President have evolved and developed in tandem with the history of the United States. As commander-in-chief of the Armed Forces, the President of the United States plays the important role commanding the most important army in the history of the world. As commander-in-chief, the President can direct the armed forces but cannot declare war without the authorization of Congress. This is an important