Decision Making Leadership Development

Decision Making, Leadership Development and Business Ethics at Boeing

Title: Decision Making Leadership Development. The Boeing Company is an American organisation which has been manufacturing aircraft, rockets and satellite for a considerable period of time. In the early 21^st century, it had faced several problems regarding its ethical policy. With reference to the case i.e. Boeing: How Low Can They Flow? It has been ascertained that at the end of 2003, the board of directors sacked its chief financial officer Michel Sears and Vice President Darleen Druyun for their unethical approaches towards the organization. Accordingly, the study intends to comprehensively explore the case in terms of certain crucial parameters including effect of the issues faced by Boeing on its stakeholders along with offering optimal solution to address the situation among others.

With regard to discrepancies ascertained, the department of justice accused Michel Sears and Darleen Druyun on the basis of unauthorized discussion with a supplier during the contract review process about employment opportunity. Specifically, it had happened during the contract between Boeing and United States’ Air Force during the deal of 767 airborne refueling tankers. As per the investigation, it has been revealed that Druyun had lobbied with the political parties for competing Airbus’s bid for a military tanker contract.

After exposing the scandal, Druyun admitted that she had considered this high priced tanker deal as a gift before she started working with them. Apart from this, it was also exposed that Sears and Druyun had interconnections in between their family. The entire set of information had been exposed through the memo which had been written by the Air force e general counsel. After exposing the evidence in front of Boeing’s management, Sears and Druyun had tried to cover-up their unethical activities’ clue. On the other hand, Boeing had started reinvestigation about them thoroughly. After conspiracy both of them had been penalized financially and also sent to prison for rehabilitation. Moreover, the chairman of Boeing Philip Condit had mentioned that the responsibility of the organization was to prevent the unethical operations.

At the same time, a former executive of Boeing Larry Satchell had also been charged earlier during 1999s due to the conspiracy to violate United State (US) procurement laws. It also happened during the Condit’s period. During his tenure, several issues that occurred had enforced Boeing to become highlighted in front of media. Difference between the male and the female employees’ salaries had been one of the key incidents among them. As a result, The Office of Federal Contract Compliance Program (OFCCP) under the U.S. Labour Department had charged Boeing and Condit had paid to settle that issue. In addition, in terms of airplanes cost recovering purpose, it had also come into focus. Even in case of personnel issues such as marriage and relationship, Condit had created conflict in Boeing. During the end of 2003, he had resigned from the post of chairman of Boeing. During his era, several personalities had complimented Boeing organization inversely.

After him, Harry Stonecipher had taken the responsibility of Boeing. During his period, Boeing had come up with couple of ethical programs to ensure the organizational discipline. The new chairman Lewis Platt had declared the zero tolerance policy for unethical behaviour. During that period in 2004, Stonecipher had taken extra responsibility for his employees at Boeing. Subsequently, in the year 2005, he had resigned from the post of Chief Executive Officer (CEO). Platt, the chairman of Boeing, stated that Stonecipher was having an extramarital affair with a Boeing female employee. Besides, he had also criticized about Stonecipher. In the middle of 2005, James McNerney had been appointed as the CEO of Boeing. After his joining, firstly McNerney had settled the Lockheed Martin’s stolen paper issue, due to which U.S. Air Force had suspended Boeing. McNerney through this settlement wanted to ensure the protection of unethical behaviour at Boeing. After a long time, in 2008, Boeing had attempted to enter into a large deal with Air Force to build refuelling tanker, but it was not successful. At that stage, U.S. Air Force had made an alliance with Northrop Grumman. Finally, it was observed that in the year 2011, U.S. Air Force confirmed the deal with Boeing, as it was lucrative one than that of Airbus.

Discussion of the Stakeholders Affected

According to the analysis of Boeing’s ethical conduct of its employees, it has been found that there were certain complexities that emerged for the stakeholders. The decisions of the stakeholders can affect an organization in both ways. Consequently, it can be also asserted that good practice in case of decision making in an organization can influence the work environment in a positive manner. In accordance with French Philosopher-mathematician Blaise Pascal (1623-62), the ethical decision making is related with the six steps. Those are mentioned below:

Perception
Analysis
Synthesis
Choice
Action
Learning

These are the factors that can be deemed as best practices through which the stakeholders can protect the ethical conduct of an organization. In this case, aircraft manufacturing company Boeing’s stakeholders’ such as employees, suppliers and consumers among others had been affected in several ways. In order to find those reasons, first of all, it was observed that there was an unauthorized discussion about employment opportunity. Besides, it has been also observed that during 1999s when Boeing had differentiated the salary of its male and female employees’, they were also noticeably affected. Moreover, the unethical approaches of the former CEOs Condit and Stonecipher with the internal organizational employees’ of Boeing can be termed as a key factor affecting the vital stakeholders of the company i.e. employees at large. Furthermore, due to the Lockheed Martin’s stolen paper issue, key stakeholders had been also affected in a bigger way and in order to settle that issue the organization had paid a substantial amount.

How the Company or Individual Should Prioritize Stakeholders

For maintaining the goodwill of the organization and good crisis management, prioritizing the key stakeholders is needed mostly. In order to find the stakeholders prioritizing process, it has been observed that it can be ethically maintained through BSR five steps approaches. This approach is emphasised below:

Engagement Strategy. In order to prioritize key stakeholders such as employees, suppliers and consumers among others first of all Boeing needs to set its vision. In addition, it needs to define the criteria for engagement mechanism and it must have to keep focus on short and long term goals. Moreover, it should also ensure the equality of stakeholders. Furthermore, identifying the opportunity to achieve the goals and planning for the future engagement ought to be key facets.

Stakeholder Mapping. It is a collaborative process, through research, debate and discussion, it helps to determine the key list of stakeholders. It can be segmented into four divisions. These include identifying, analyzing, mapping and prioritizing.

Preparation. It brings knowledge to fulfillment of a plan or project. It helps to ensure the engagement with stakeholders which in turn facilitates to conduct the entire process successfully.

Engagement. After the preparation in case of Boeing for its stakeholders, it needs to thoroughly work through the planning stages. This is the moment when facilitation truly counts.

Action Plan. In case of engagement failure, it will help to avoid the pitfall. This step helps to develop a plan whose aim is to find the engagement with the stakeholders through communication.

This is the process through which Boeing can ensure the priority of stakeholders (Morris and Baddache, “Back to Basics: How to Make Stakeholder Engagement Meaningful for Your Company”).

What Is The Optimal Solution?

According to the analysis, it has been observed that there were multiple difficulties faced by Boeing. Even it has been also seen that within 18 months Boeing had appointed the third CEO for its unethical activities inside the organization. In order to prevent the ethical indiscipline, organisational decision-makers need to prioritize all challenging values and standards of organization behaviour. A common set of ethical standards can be developed to guide decisions when conﬂicting obligations, cost-beneﬁt trade-offs, and challenging value choices are to be seen. These aspects are illustrated below:

Problem Awerness
Problem Definition
Decision Making
Action Plan Implementation
Follow Through

These are the optimum solutions which can prevent Boeing from unethical conduct and ensure leadership development in case of decision making (McGraw-Hill, “Ethical Problem-solving and Decision Making”).

Figure 1: The Rational Problem Solving Process/ Optimal Solution

Source: (Mcgraw-Hill, “Ethical Problem-Solving And Decision Making”).

An Optimal Solution?

This optimal solution can help Boeing to resolve the lingering multifaceted problems and eliminate the discrepancy between actual and desired outcomes. The prime responsibility of the decision making authority is to identify the actual problems and in order to do that gathering problem awareness is required. Through communication and monitoring process, it can be done. It will be useful because after identifying the issue trust needs to be established for assuring that the causes of disputes can be resolved. Clarifying the objective can also help to understand the problem otherwise it will be difficult to identify the core issues. Evaluating the current turbulent situation is also helpful for Boeing to identify the problem, because comparing the predetermined performance and earlier performance will enable to directly define the difference. Moreover, it can be asserted that identifying the problem can facilitate to understand the entire viewpoint.

On the other hand, through problem definition, problems can be analysed and it will also help to determine whether Boeing has agreed to solve the problem or not. However, decision making is also a very crucial task. It can help to establish a decision depending upon the situation. Besides, it can also aid Boeing to decide a way from various alternatives by evaluating those alternatives. Finally, it can facilitate to choose a better alternative plan.

Even action plan implementation is very essential for a firm as in initial phase it helps to assign the tasks and responsibilities in keeping with short-term objectives. During this process, it will also facilitate to schedule those tasks in an organized manner. This approach related to Boeing can directly and indirectly enable to fortify the organizational situation along with ensuring the level of commitment of key organisational stakeholders. Furthermore, it can also help to active the plan of resurrection of Boeing from the faced difficulties perfectly.

Consequently, the conclusive part in this solution approach is follow-through. It can help Boeing to evaluate its own decision making system. Through determining the actual performance and measuring the results, Boeing can take desired actions. It is almost like a feedback process through which Boeing can review its own leadership policies and ethical conducts for future period.

How Are the Various Stakeholders Effected and Why?

From the analysis of The Boeing Company’s case, it has been apparently observed that, various stakeholders are affected due to a number of key reasons. In order to discuss those unethical issues, first of all, it has been found that Boeing had suffered because its former CEO Sears and Vice President (VP) Druyun had been engaged in an unauthorized discussion about employment opportunity and during that time Druyun had lobbied with the political parties for competing Airbus’s bid for a military tanker contract.

Moreover, during Condit’s leadership, conflict had been raised in terms of male and female salaries discrepancy. Consequently, U.S. Labour Department had charged Boeing. In addition, he had also involved with an unethical issue for engaging in a relationship with the female employee of Boeing. As an effect, both of them i.e. Condit and the female employee involved had been fired from the organization.

Even after Condit’s period, the unethical approaches had continued in Boeing. Stonecipher had joined with several promises but he was unsuccessful to accomplish them. Within a short span, it had been exposed that Stonecipher was having an extramarital affair with a Boeing’s female employee. This kind of undesirable conduct by an organisation head affected different stakeholders of Boeing including its other employees as the image of the company got tarnished by a considerable extent. Moreover, Lockheed Martin’s stolen paper issue had been also happened at the same time; due to which U.S. Air Force had suspended Boeing from any short of business deals. This factor was a major setback for the company and its key stakeholders such as suppliers as they were deprived of placing their prominence in a competitive market.

Proactive Steps The Company Could Take To Avoid Similar Issues In The Future

With regard to avoiding these kinds of unethical conducts in the future, Boeing should take few precautions. Firstly, it should choose the right person as a leader who always intends to uphold strong ethical conduct as his/her main priority. Prior leadership experience should be provided greater emphasis to lead the organisation through complex and uncertain business environment. Besides, Boeing has to be stricter about its ethical conducts in terms of business dealings. In case of business deals with the suppliers or clients, Boeing should not only rely on one person instead it should give the responsibility to the top management council, where the decision will be taken by the discussion of the council members. Consequently, in case of employee selection, Boeing should follow the approaches laid down by best practices. Additionally, in case of women related scandals, it should react strictly to settle the issues and set examples for future ensuring zero tolerance. These are the key precautions Boeing should consider for future conducts to avoid the unethical scenarios in case of leadership development.

Works Cited

“Ethical Problem-Solving and Decision Making.” McGraw-Hill. n.d. Web. 22 Apr. 2014.

Morris, Jonathan, and Farid Baddache. Back to Basics: How to Make Stakeholder Engagement Meaningful for Your Company. 2012. Web. 22 Apr. 2014.

Standardization versus Adaptation International Marketing

Standardization versus Adaptation Debate in International Marketing

In the international business market field, standardization versus adaptation debate is not new, where thus far researchers have not agreed on which strategy is effective to be adopted in international market. Taking a business into international market and successfully selling its products and services can attract a range of challenges. For many years, many multinational corporations make costly mistakes when trying to sell to the global consumers or audience. Such mistakes are mainly described by a lack of awareness of the role and contributions of adaptation and standardization in international markets. This paper seeks to analyse the issues of adaptation (customization) and standardization (global strategy) within international marketing strategies and proposes specific approaches that can help companies compete efficiently and effectively within these global setting.

Available Evidence

Since the start of the 1980s, globalization issue has developed significantly and critical to modern businesses. Globalization has helped in reducing the differences between countries. Both international of businesses and an increasing level of globalization have had a significant impact on how businesses plan and view their global marketing strategy (Wang & Yang, 2011). As a result, various research studies have been done on whether companies need to standardize or adapt certain behaviours in international market. As these multinational businesses start to market their products and services in foreign markets, one important strategic decision is whether to change the marketing strategies and mix to match the unique aspects of each local market or whether to adopt a standardized marketing mix (people, promotion, place, price, product, process management, and physical evidence) and a single marketing strategy in all international markets (Vrontis & Thrassou, 2007)

One consideration shows that markets are becoming more integrated, increasingly more global and similar and consider that the main element to business survival is its capability to standardize. In contrast, the other consideration identifies the challenges in adopting a standardized strategy, and thus, supports market adaptation or customization. Nevertheless, evidence proposes that following adaptation or standardization strategies depends on the positioning and dimensions present in respective international market.

Standardization versus Adaptation

Based on some studies, followers of standardization consider that there is an integration of cultures with the same customer demand and environmental demands across the world. They also state that trade barriers are being reduced and advancements in technology, where multinational companies reveal global integration in their strategies. Under standardization, providing a single strategy for the international market, along with standardizing the marketing mix components, can enable constancy with customers and also reduce costs. Brei, et al (2011) state that businesses managed effectively have shifted away from customizing their products to serving internationally standardized items that are low priced, reliable, functional, and advanced. Brei, et al (2011) further state that businesses can attain long-term success through focusing on what customers need instead of being afraid of the particulars of what customers think they might need.

In contrast, followers of international adaptation strategy focus on the significance of customization. The key base of the adaptation strategy is that when a business enters an international market, it needs to reflect on all environmental aspects, constraints, and factors, such as societies, cultures, different laws, taste, education, occupations, race, climate, and language (Akgün, et al., 2014). Nonetheless, studies have reported significant source of constraints that may be challenging to measure, for example, customs, manners, attitudes, values, religion, aesthetics, education, and cultural variations originated in history, along with variations in legal systems, economics, wants, and needs. Vrontis and Thrassou (2007) stated that multinational corporations need to realize how they should alter their whole marketing strategy and include how they order, distribute, and sell to match the new international or local market demands. It is also very vital to adjust the marketing strategy and mix to fit local preferences and tastes, customer non-equivalent requirements, and special market needs.

Advantages and Disadvantages of Standardization

Global uniformity and standardization have various benefits. First, customers can anticipate similar quality level of any particular brand in all outlets across the globe. Moreover, Hise and Choi (2013) posit that standardization facilitates positive consumer perceptions towards certain product. If companies that have a strong reputation and brand identity decide to follow the standardized approach, they will certainly gain success. In a global setting, positive word-of-mouth can imply an improvement in sales. Another benefit embraces cost reduction that provides the economies of scale (Hise & Choi, 2013). Selling huge amounts of non-adapted, same product and purchasing certain constituents in bulk may help in reducing the cost-per-unit.

Other benefits linked to economies of scale consist of reduced investment costs, marketing operational costs, and enhanced research and development. Additionally, standardization is a rational strategy in an era in which trade barriers are diminishing. Adopting a standardized approach assists multinational businesses to direct their emphasis on a uniformed marketing mix particularly concentrating on one single product or service, enabling adequate space for quality improvement. By focusing on one single uniformed product, employees will be trained to improve the product quality, which enables manufacturers to make equipment and technological investment that can protect the quality of the standardized product being served.

Nevertheless, standardization poses a range of shortcomings. Aforementioned, different international markets mean different consumer’s preferences. As a result, selling or offering one unified item poses lack of uniqueness. This enables competition to acquire bigger market share through adjusting their products to fit the need of a certain segment or market. Given that different markets have varied tastes and needs, by adopting the standardized strategy, businesses can become more at risk. One company example is Walmart’s failure when it entered international markets (Kim, 2008). Walmart encountered various challenges when it entered foreign markets such as Japan, South Korea, Brazil, and Germany as it realized that its recipe for success in the US (a huge set of merchandise, inventory control, and low prices) did not actually activate the same level of success in foreign markets with shoppers with varied habits and own discount chains. The key problem for the retail giant was that the company tried to inflict its values globally. Particularly, Walmart’s incident is Germany, where the company lost large sum of dollar as of 1998, has become an example or reference point for how not to expand internationally.

Another disadvantage is that it relies mainly on economies of scale. In nature, companies that are global often engage in manufacturing in various countries. This may also pose a great problem because some countries adopt trade barriers such as the EU and the US (Dimitrova & Rosenbloom, 2010). For such a case, adaptation is predetermined. However, even though the standardization strategy is more used, its adoption is not absolute. Standardization approach raises the performance of a firm. Nevertheless, this is only true for businesses where competition occurs in a global range, such as perfumes, luxury goods, fashion, electronics, consumer durables, among others. In such cases, similar product may be sold across all markets. In contrast, there are other sectors where this same action does not apply and thus, this needs to be considered.

standardization versus adaptation of international advertising strategies

Moreover, consumer non-durables, such as food products, are highly responsive to variations in national habits and tastes, making the companies to consider some adjustments to fit different markets. For instance, Unilever realized a greater opportunity among Indian low-income consumers who intended to purchase personal care products and high-end detergents, but might not afford them. To respond to this, Unilever produced a low-cost packaging product and various other alternatives that enabled it to provide radically cheaper alternatives. According to Theodosiou and Leonidou (2003), such a flexibility not only increase a new market for the business, but enabled also it to produce brand loyalty that customers benefit from it when their income increased and might afford higher-end products from similar manufacturer.

There are some questions which most businesses in the international market expansion need to answer: what products do we aim to standardize? And do we standardize distribution channels, pricing, marketing communications, product support and customer service? The answer to such questions need to either all adapted or all standardized.

Advantages and Disadvantages of Adaptation

Customization is also commonly considered an adaptation. Moreover, product adaptation is more applicable in the case in which: (1) there is an intense competition, compelling differentiation of products; (2) there is a considerable variations in consumer wants and needs; and (3) to meet essential host country requirements, including legal, technical, and packaging issues. These are also essential reasons for product adaptation and modification; literacy, customer lifestyle, and consumer’s income level.

The key arguments towards implementing adaptation approach is that it entails the individual approach as it enables the company to be aware of the preferences, wants, and needs of each market or consumer. Followers of adaptation strategy credibly support the idea that there is a considerable variation in consumer’s lifestyle, political system, regulations and rules, economic condition, culture, and consumer belief and values across the globe. Such elements need to be reflected on for the success of the company (Hussain & Khan, 2013). The application of adaptation marketing strategy supports the companies to gain an increased competitive advantage. In addition, the ultimate aim of a business needs not to be the cost reduction using standardization, but the actual long-term corporate profitability through improved sales attributable to the enhanced use of the differing consumer needs globally.

Poturak & Duman( 2014) assert that the followers of standardization does not possess the conventional knowledge of contemporary marketing. Irrespective of various arguments of improved consumer homogeneity, various studies have reported that consumers are becoming progressively more complex or diverse and do not essentially intend to substitute quality over price. Moreover, product modification or adaptation approach will results in a boost in sales volume of the company in international market; by highly meeting the wants and needs of the consumers, but reflecting on the competing companies; and by also retention of the current customers through frequently updating the product.

There are also certain drawbacks of product adaptation or modification of different marketing strategy, including duplication of the practices across the company and additional cost needed for the promotional practices. In this strategy, the company will need extra resources for research and development. The increased costs are attributable to defender fights and developments, which are also more risky. Moreover, companies may lack knowledge and experience regarding the technical elements of the different products and understanding on how to market a product (Hossain & Yazdanifard, 2015). This strategy also promotes decentralization of management.

Most Appropriate Strategy

These two strategies emerge to be coherent, logical, and rational, outlining the benefits that a company intending to expand internationally can acquire through implementing either strategy. When an international company puts forth all its efforts of the extreme side of either strategy, it normally becomes incoherent and unfeasible. The point is that marketing for international companies is not based on either of the two opposite strategies, since both strategies are probably to coexist, even in similar multinational company, brand, and product line (Rocha & Silva, 2011).

Vrontis and Thrassou (2007) stated that standardizing some components of the marketing mix, while adapting other components to differing market conditions is required. Adaptation and standardization should not be considered an ‘all or nothing’ proposal; rather it should be considered a matter of degree. For instance, diversity across various countries and markets does not enable whole standardization. Nevertheless, Schilke, et al. (2009) opines that higher cost associated to adaptation can limit the application of adaptation strategy. Wei and Yazdanifard (2014) focus on three factors to analyse adaptation and standardization practices: transferability of competitive advantage; homogeneity of various consumers’ reponse towards the marketing mix; and similarities in the level of economic freedom.

Schilke, et al. (2009) point out that even in markets or countries with the same cultures, such as across the EU, there are variations in customer wants and needs. In addition, they state that standardization will be effective when the customer response homogeneity and the level of sameness in economic freedom are higher, with easily transferable competitive advantages. Components of both strategies need to be integrated so that it can enable international companies to achieve desirable success. Acquiring the benefits of both strategies needs various firms to not only standardize different components of marketing strategies and marketing mix, but to implement also adaptation when needed with the aim of meeting the evident market needs (Batraga & Pūķe, 2015).

McDonald’s Case Study

An example of a major corporation that has been able to demonstrate the benefits of both adaptation and standardization strategy is McDonald’s. With around 35,000 restaurants in around 120 countries globally, McDonald’s competently manages its franchise system, providing an outstandingly reliable branding and customer experience, while also enabling for locally appropriate service and menu differentiations in segments or markets globally. Moreover, all advertisements are provided in twelve different languages, characterizing the tailored products organized to each region or market (Vignali, 2001). McDonald’s launched the McArabia (a flatbread sandwich product) in 2003, to its outlets in the Middle East. In addition, in India, it launched the McVeggie, while introducing EBI-Fillet-O shrimp in Japanese markets.

The company also selects convenient locations for its franchises, which include local neighbourhoods, airports, and malls. Such marketing strategies have proven to be efficient, showed by the company’s 8% increase in profit margins within the last five years. Nonetheless, McDonald’s has placed various efforts to improve them using the latest marketing practices in regards to the 7Ps. The company has started to modernize its eateries, shifting from a plastic-appearance to a more wood and brick design with the aim of sustaining a modern image (Yeu, et al., 2012). McDonald’s has also chosen to “re-image” its business operations in their advertisements through integrating a hip-hop theme with young generation icons such as Lee Hom and Justin Timberlake in China as a way of attracting young people. Moreover, this company has started to serve healthier foods (e.g. oatmeal), provided consumers are highly health conscious.

Conclusion on Standardization versus Adaptation

The regular topic in international marketing is whether multinational firms need to plan for adapted or standardized marketing strategy is immensely debated in scholarly setting and is a major issue to all multinational firms and marketing individuals. Followers of standardized strategy state that the international market has become homogenized and thus, these firms can market their commodities similarly across the globe. Using similar approaches will lead to higher margins and reduced costs. On the contrast, followers of the adaptation strategy focus on the evident differences between the markets of various countries and markets, particularly those for consumer goods, and favour adopting global differentiated marketing initiatives

This paper listed some advantages and disadvantages of every strategy, suggesting that the solution to an effective market strategy lies between these two extreme strategies. Firms can promote a strong international marketing strategy with the relevant structure, attitude, and operating behaviours that attain an effective and efficient balance between standardization versus adaptation approaches. Companies intending to expand internationally need not to treat the world as one singular market. Rather, they should initiate market research and establish their customers, and their wants and needs.

References

Akgün, A. E., Keskin, H., & Ayar, H. 2014. Standardization versus Adaptation of International Marketing Mix Activities: A Case Study. Procedia – Social and Behavioral Sciences, 150(15), pp.609–618.

Batraga, A., & Pūķe, I. 2015. Integrating Standardization versus Adaptation in International Marketing Strategies: Companies in Latvia. Proceedings of the 2015 International Conference, pp.27-36.

Brei, V., D’Avila, L., Camargo, L., & Engels, J. 2011. The Influence of Adaptation and Standardization of the Marketing Mix on Performance: a Meta-Analysis. BAR, Curitiba, 8(3), pp.266-287.

Dimitrova, B., & Rosenbloom, B. 2010. Standardization Versus Adaptation in Global Markets: Is Channel Strategy Different? Journal of Marketing Channels, 17(2), pp. 157-176.

Hise, R., & Choi, Y.-T. 2013. Are US companies employing standardization versus adaptation strategies in their international markets? Journal of International Business and Cultural Studies, 1-29.

Hossain, A., & Yazdanifard, R. 2015. Which One of Standardization or Customization Works the Best When It Comes to Online Marketing? American Journal of Industrial and Business Management, 5, pp.45-52.

Hussain, A., & Khan, S. 2013. International Marketing Strategy: Standardization versus Adaptation. Management and Administrative Sciences Review, 2(4), pp.353-359.

Kim, R. 2008. Wal-Mart Korea: Challenges of Entering a Foreign Market. Journal of Asia-Pacific Business, 9(4), pp.344-357.

Poturak, M., & Duman, T. 2014. The Role of Marketing Standardization versus Adaptation Strategies on Managers’ Satisfaction with Export Performance: Proposal of a Conceptual Framework. European Journal of Economic Studies, 10(4), pp. 252-262.

Rocha, T. V., & Silva, S. C. 2011. The Standardization versus Adaptation Dilemma: The Case of an American Company in Brazil. Internext – Revista Eletrônica de Negócios Internacionais da ESPM, 6(1), pp.63-83.

Schilke, O., Reimann, M., & Thomas, J. 2009. When Does International Marketing Standardization Matter to Firm Performance? Journal of International Marketing, 17(4), pp. 24–46.

Theodosiou, M., & Leonidou, L. 2003. Standardization versus adaptation of international marketing strategy: an integrative assessment of the empirical research. International Business Review, 12, pp.141–171.

Vignali, C. 2001. McDonald’s: “think global, act local” – the marketing mix. British Food Journal, 103(2), pp.97 -111.

Vrontis, D., & Thrassou, A. 2007. Adaptation versus standardization in international marketing – the country-of-origin effect. Innovative Marketing, 2(3), pp.7-20.

Wang, X., & Yang, Z. 2011. Standardization or Adaptation in International Advertising Strategies: The Roles of Brand Personality and Country-Of-Origin Image. Asian Journal of Business Research, 1(2), pp.25-36.

Wei, S., & Yazdanifard, R. 2014. Comparison on the Impact of Standardization and Adaptation on International Marketing. Journal of Research in Marketing, 3(1), pp. 250-259.

Yeu, C., Leong, K., & Tong, L. 2012. A Comparative Study on International Marketing Mix in China and India: The Case of McDonald’s. Procedia – Social and Behavioral Sciences, 65, pp.1054–1059.

Problem Solving Decision Making Supply Demand

Problem Solving and Decision Making – Establishing a price for a new product using the law of supply and demand

Scientific methods are very important and help in problem solving and decision making process. Having good problem solving skills is essential and takes an organization to another level. Scientific methods assist in decision making process and are widely used in many businesses to increase productivity. The success of any business depends on effective decision-making and problem solving techniques. Businesses are faced with several problems and challenges including reduction in supply and demand. It is crucial for organizations to make appropriate decision without compromising the terms and condition of the business. The law of supply and demands plays a significant role in micro-economics and businesses. The law of supply states that quantity of a product supplied increases with decrease in prices (Gale, 2015). The cost of a products falls with an increase in supply or high demand. Contrary, the law of demand argues that the quantity of a product decreases as the prices increases. Businesses are limited by the law of supply and demand making forcing them to establish equilibrium. Market-clearing price helps firms to find a long-lasting equilibrium that balances both supply and demand. Proper problem solving and decision-making process using scientific evidence has a significant impact on businesses when establishing new prices utilizing the law of supply and demand.

Problem solving and decision making using the scientific method

It is fundamental for companies and businesses to have good decision-making skills and problem solving techniques. Businesses are required to make the appropriate decision when faced with complex issues. It is also important to establish a good approach that can solve a problem (Doctor, 2011). For instance, the law of supply and demand affects most businesses. The determination of prices should be done using scientific models. Appropriate problem solving and decision-making techniques need the application of critical thinking (“Systematic problem solving and decision-making”, 2016). Whenever a business is faced with numerous issues such as reduction in sales, it is crucial to make an appropriate decision. The law of supply and demand may cause the decline in sales. Solving a problem requires some pragmatics and logical reasoning. Problem –solving has been defined as a cognitive and behavioral process that individuals and organizations use to identify, discover and invent effective means of coping with the problem faced.

There are four main steps used to identify a problem namely: problem definition, generating alternatives, evaluation, and selection of alternatives and implementation of the solutions. Defining a problem is the first step in problem solving (Gale, 2015). The business should start by identifying the issue causing the sales to reduce. It is important to diagnose the actual situation facing the company by analyzing and defining the causes. Generation of alternatives to solve the problem is the next stage. It is necessary to propose several alternatives that will increase the sales. Brainstorming the alternative helps to evaluate the alternatives (Doctor, 2011). Multiple alternatives enhance the value of the final decision. It is advised to generate the alternatives before making a final decision including evaluation and selection of the best alternative. Selection of best alternative is critical in the decision-making process. The best alternative should have minimal impacts compared to the rest. The last step in problem solving is the implementation of the best alternative.

Stabling the price of a new product depends on many factors including the law of supply and demand. The cost of production and demand should be used to determine the prices. The company should decide on the prices based on the demand curve and production cost. The cost of production should be minimal to ensure high returns (Doctor, 2011). It is essential to establish a suitable price that is affordable to customers. The product should meet the needs of the customers. If the demand is higher than production, the cost of the product should be elevated to sustain the supply chain. The company should make a decision using the best model.

Making appropriate decision on the prices of a new product is done systematically. The first step is identifying the problem facing the company. The process involve gathering of information, evaluating alternatives and implementing the final decision. Identification of a decision is the first step in the process. It is important to clearly define the decision and state it down. Gathering relevant information is vital and should be done before identifying alternatives (“Systematic problem solving and decision-making”, 2016). The information can be gathered through research and development. The company should involve customers by asking them what they think in relation to the new product prices. Both internal and external information is needed to improve the sales. Identification of alternatives is necessary. There is need to have many costs and choose one with minimal impacts. Weighing the evidences is also crucial. The alternatives should be considered using scientific evidence and methods. The profit margin and production cost is determined using scientific evidence. Choosing the best alternative is important and is done after weighing the evidence (Doctor, 2011). Taking action and making the best decision is the last stage. The prices of the new product should be determined by taking into consideration the law of supply and demand. Reviewing the decision and identifying its impacts on the sales is necessary.

Conclusion

The law of supply and demand is important to all businesses. It limits the companies from exploiting customers. The decision on prices of a new product must be made using the scientific method. The company should identify the problem and use best techniques to solve. The demand for the product directly affects the prices. Prices increase with an increase in demand thereby affecting the supply chain. It is vital for the businesses to establish the best prices after reviewing all the alternatives. The decision should have minimal impact on the business with equilibrium consideration between customer satisfaction and profit margin.

References

Doctor, R. (2011). Problem Solving and the Decision-Making Process. Physical Therapy, 51(7), 816-818.

Gale, D. (2015). The law of supply and demand. Mathematica Scandinavica, 3, 155

Systematic problem solving and decision-making. (2016). Long Range Planning, 23(6), 129

Emerging Markets FDI China Dissertation

Competitive Dynamics in Emerging Markets: Case of China’s FDI Inflows

Emerging Markets: Foreign direct investment (FDI) constitutes one of the main modes of market entry which has been used by a growing number of multinational enterprises (MNEs) to achieve growth. Through FDI firms engage in a special form of capital flows which involves the relocation of capitals, as well as intangible assets such as management skills and production know-how.

As underscored in extant literature on international trade, the benefits of FDI are experienced by both the foreign firm and host country. Put differently, FDI results into a mutually beneficial relationship in which case the foreign firm benefits from a larger market for its products and access to important inputs while the host nation benefits from increased trade and a multiplier effect. While licensing and export provide less risky paths to foreign market entry, research based on the market failure theory attributes the growing preference for FDI to the need by firms to make full gains from their capital.

Traditionally, FDI flows have been from developed countries to other developed countries. Countries such as the United States, United Kingdom and Japan have in particular been major players in inward and outward FDI. In year 2000, US received 22% of the world’s FDI while countries in the EU cumulatively received an estimated 49% of the FDI. This trend marked by the flow of FDI from developed to developed countries is however changing. The last decade has in particular been marked by a trend in which FDI flows are from developed countries to emerging countries such as the BRIC (Brazil, Russia, India and China).

In terms of competitiveness in FDI and international trade in general, emerging countries have for long been considered as uncompetitive. Developed nations have traditionally crowded out developing countries in international trade due to several barriers. As an example, it is until recently that developing countries have become more open to international trade and their exports have mainly comprised of primary products. They also face a host of barriers revolving around national policy, credit constraints and technological limitations among others.

Despite these barriers emerging countries have in the last decade emerged as equally competitive players at the international front. Academics have even pointed out that emerging markets are in the current times more competitive than developed markets. The researchers justify this assertion by pointing out that an analysis of corporate profitability in both economies shows significantly different results. In the developing world, the dynamics of competition are such that both the short-term and long-term persistence in profitability of organisations is lower than that of the developed world. To a large extent, this is a clear indicator that competition in the developing world is more intense. While focusing on inward FDI, the present research determines why China has become one of the most competitive emerging markets in this form of international trade.

Dissertation Objectives

To determine the level of competitiveness in attracting FDI among emerging markets
To investigate the specific factors influencing China’s competitiveness in attracting FDI
To examine the extent to which factors influencing China’s competitiveness in attracting FDI can be maintained in the long term
To highlight the various ways through which competitiveness of China’s FDI can be measured

Dissertation Contents

1 – Introduction
Study background
Research problem
Research question
Research objectives
Significance of the study
Overview of research methodology
Structure of the study

2 – Literature Review
Factors influencing competitiveness in inward FDI among emerging economies
Theoretical perspectives on determinants of FDI
Specific factors in emerging countries that increase a country’s competitiveness in attracting FDI inflows
Challenges in effectively competing for FDI in emerging markets

3 – Research Methodology
Data source and Research design
Research approach
Research strategy
Data collection techniques and process
Data analysis techniques
Quality of the study findings
Ethical considerations and limitations

4 – Results, Findings and Discussions
Factors influencing China’s competitiveness in attracting FDI
Sustainability of China’s FDI attractiveness
Discussion of study findings

5 – Conclusions and Recommendations
Competitiveness of emerging markets in attracting FDI
Factors influencing China’s competitiveness in attracting FDI
The sustainability of factors influencing China’s competitiveness in attracting FDI
Study recommendations

References

View This Dissertation Here: FDI China Dissertation

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Apple Company International Law Globalization

International Law and Globalization

Apple Company is a US base incorporation incorporated in the US in the year 1976 by Steve jobs. Ever since then Apple Company has witnessed huge milestones in its production, distribution, and marketing of its electronic device majorly the apple phones (Johnson, Phan, Singer & Trinh, 2012). Currently, Apple Company is one of the largest us based companies listed on the stock exchange contributing significantly to the US GDP. Its forms one of the largest multinational companies offering the highest job opportunities both locally and internationally. The company has offered more than 60,000 jobs globally for both full time and part time.

International roles of Apple Company

Customarily, business is expected to deliver or play some roles in the economy. Some of the roles may be economical or social functions. Companies are to structure their overall operation to ensure that the end product of it all defines their contribution to the international business globally. Consequently, Apple Company is not an exceptions or immune to this role. It has to ensure that its functions in the international business by involving herself in various activities that benefit the global trade through its interplay with various economic factors. The discussed under are some of the roles of Apple Company in the international business.

Export promotion. Apple Company has expanded exports to many countries in which it has established its production processes. The apple come has established its production in many countries especially those countries from Asia. The key player comes from Irish and China. Reports and researches assessing the contribution of this on exports of these countries are astounding. It indicates that, for instance, China has mostly benefited from exports of apple products contributing to at least 8% on China’s GDP.

The same spill overs have passed on to other countries in which Apple have established its main production activities. This forms one of the primary roles of the company to support the trade activities of those countries in which they are operating in. In this way, Apple Company has played a major role in international business through export promotion.

Job creation. Apple Company is one of the largest giant multinational companies which have massively created thousands of job opportunities. Apple Company has over 700 production operations across the world. Statistics shows that the company has offered over 60,000 job opportunities globally either directly and indirectly. These jobs are provided either through their factory outlets or through their middlemen and intermediaries who are strategically situated in the various countries.

Revenue creation. Apple Company has largely contributed revenue generation of many countries. When companies operate in the international arena, they are subject to tax payment and other reparation laws which ensure that a certain percentage of revenues generated in those countries are retained and locally promote local activities. Apple has paid millions of taxes to these countries which have helped local people to enhance their lives through productive activities. (Hutt 2017)

Cultivation and promotion of innovation. This is one of the key roles they the company has played in the international business. When it comes to innovation, Apple Company stands conspicuous from the rest of other electronic or mobile phones producers. The company has the culture of developing and promoting innovations throughout its production process. This has led the company to win many global trophies as a leader of global innovation. Studies indicated that the company is strategically studying the markets niche and satisfactory innovating products which satisfy those needs. This innovation is not constrained in their key factory outlets, but it has diffused globally contributing to more innovation into the global business.

Enhance improvement in global supply chains. Apple Company has come up with one of the best supply chains in their marketing strategies. Customary, Apple Company does outsource their raw materials from many countries outside us. This means that they need to have proper supply and delivery channel that ensures that raw material is moved on time to production sites.

In the same way, such channels should ensure that products are moved and delivered to customers on time. In facts, Apple boost of the most efficient supply channels in the international business which other companies globally have adapted to in their supply chains.

Environmental protection role. Apple has had significant role in the international business environment. The company has come up with major policies that ensure the sustainability of the environment. This has involved low carbon emission policies that have ensured the company uses low carbon means like solar power plant to run their factories.

Effects of international laws on apple company operation

Globalization comes with the internationalization of business. Consequently, when businesses start trading internationally, they operate in different countries with varying jurisdiction and laws. In this way they are to ensure that they abide by those laws fully and in case they violate them, they are prosecuted, and sometimes their operations are shutdown. International laws have the ability to promote or totally dismantle business operations of a company which violates them. The discussed below are some of the effects of international laws effects on the operation of the apple company (Chan, Pun, & Selden, 2013).

International Taxation laws and effects on Apple performance. In the year 2016, the European Court ordered Apple Company to pay close to $14.5billion of tax the penalty to Irish government (Hunt 2017) The court held that the Irish government violated international tax law by meddling tax laws to favour Apple Company which resulted to the company pay less tax to Irish government (Heckemeyer & Overesch, 2013).

Also, the court ruled that Apple Company had not paid the entire required tax amount and other revenues from sales they had made in 20-14 and 2003. Such tax laws are just reducing the Apple’s operations in the international business as it has ended up suffering one of the largest financial losses ever. International tax laws have the ability to limit Apple operating activities. Apple has had in past major corrosive effects that resulted from tax avoidance in the United States.

This leads the company to pay in millions of money as the Senate ruling indicated that the company had strategically formulated strategies that they use to avoid tax. This too has affected the profitability margin of Apple Company. Responding to the Europeans Commission ruling in taxes, the chief executive officer of Apple Company warned that were likely to reduce their operations in Ireland risking over 1.5 million jobs in entire Europe. The effects of such international laws are simply just to reduce business operations.

International labour laws and the effects on Apple Company business. These are laws that are internationally accepted by all countries and which ensures employees’ rights are protected, and their work environment is safe. Occasionally, Apple Company has found itself in conflict with such laws when engaging with employees. In the year 2012, apple industry outlet located in China, Foxconn, was reported to have engaged minors as workers (Duhigg & Barboza 2012).

The company employed children and students in their factories which are against international labor laws. Several other employee cases have been lodged in the courts on claims of proper working conditions as well as employees being forced to work overtime. Violation of such international laws directly damages the reputation of a giant company like Apple (Sandoval 2013).

In 2014, Apple, Google, and Intel were fined $324 million in laws suits. Frequent labor laws have negative effects of damaging Apple reputation and stakeholders too. Regular penalties only have hindering effects on the performance of the Apple Company (Hunt 2017).

Approaches to global politics – Realistic approach

The approach is based on the premise that each country is seen to be in fight for its position in global arena while each is advancing its interests. In this way, a country will consequently reign supremacy over its borders and population. The states are seen as seemingly guarded against invertible threats against the freedom of its people and encroachment of potential threats on its borders (Gilpin 2011).

Under this approach, the attainment of economics, as well as the mobilization of economic power, is viewed as marshalling power over its borders. The main facets of realism include mercantilism, ethno nationalism, colonialism, and neo-colonialism. Colonialism is viewed as a major precursor to globalization while mercantilism is the smooth approach that promotes establishment of industries through subsidizing them and protecting them from international competition (Gilpin 2011).

Mercantilists advocates for free trade to enhance the realization of an end to political struggle. Realists presume of an international state structure as progressively more revolutionary, and they assume that all countries work in attaining their parochial interest. The approach characterizes international politics as being power centered focusing on power balance, and eventually, that war is unavoidable in the international states system (Baylis, Smith & Owens, 2013). The main advantage of realism is that it prioritized state political supremacy over an individual and that state should be the key player

Liberalism approach

Primarily, the liberalism approach to global politics seeks spreading of democratic as well as economic power to necessities the true picture of globalization. The approach also advocates for an economic path for a true realization of one economic and cultural global political order. Liberals fall out that a great room exists for collaboration and gain for all countries in international state politics. Also, liberalism unmoving believes that countries can still work from mutual benefits and avoid international politics (Baylis, Smith & Owens, 2013).

Liberalism can be traced about 200 hundred years ago to economic philosophers Adam Smith and David Ricardo. Liberalism has thrived in fame in the aftermath of World War 1 and world war 11. Even though limits have resulted in the incapability of liberalism to put up with the fruit that it so dynamically argued. Liberals’ mainly important role is based on the notion asserting that all accomplices in an organization of free trade markets are beneficiary (Baylis, Smith & Owens, 2013).

The main advantage of liberal is the advocacy of free trade in international political arena. They argue that little political restriction will automatically cause the trading parties to gain mutually. The second aspect here is that realism advocate and strongly prefers an individual to state politics. In global world, protectionism is necessary; this forms one as the major advantage of liberal as it vehemently fights against protectionism.

Use of globalization at Apple Company

Global outsourcing. Apple has applied outsourcing significantly to enhance its production. The company has its head office in the United States which is a nonmanufacturing office. Productions are located in Europe and Asia. The company does outsource it critical production raw, materials from many countries to their assembling plant globally. This is one of the key utilization of globalization by the apple company. Employees and innovators have also been outsourced globally as a result of globalization in trade laws and practices. Aided by globalization, Apple Company has been able to cut the high cost of production in the United States by strategically setting their operations in countries where production cost is low (Borrus & Zysman, 1997).

Apple has used the effects of globalization to establish one of the best online retail shops. Their customers can purchase company’s product all over the world with no limitation to geographical distance and be delivered to them on time. These online stores and websites can be translated into different languages for everybody who wishes to transact with the company.

The company has also structured its production process to move in line with globalization. The supply chains and value chains developed have been used to ensure that The Company remains competitive in global market. Globalization has also been used to do market segmentation and various market strategies by Apple Company. Through globalization, Apple Company can easily now segment international market for profitable returns and consistently shy away from those markets with low profits or markets which are risky.

Conclusion

It is clear crystal that Apple Company has grown over the years to be one of the world’s giants businesses globally. The company has set up its operational internationally in many strategic countries. By going international, Apple Company has been forced to operate within international trade laws which prescribed the nature of and ways in which accompany ought to conduct business at international levels. Such laws which have affected apples international business include tax laws, labor rational laws as well environmental laws. The major roles of Apple Company in international business include export promotion, job creation, and revenue generation among many others. Strategically, Apple Company has been affected by global business in areas such as outsourcing, redesign of supply chains, and establishment of online business among many others.

References

Baylis, J., Smith, S. and Owens, P., 2013. The globalization of world politics: an introduction to international relations. Oxford University Press.

Gilpin, R., 2011. Global political economy: Understanding the international economic order. Princeton University Press.

Sandoval, M., 2013. Foxconned Labour as the Dark Side of the Information Age: Working Conditions at Apple’s Contract Manufacturers in China.

Johnson, K., Li, Y., Phan, H., Singer, J. and Trinh, H., 2012. The Innovative Success that is Apple, Inc.

Duhigg, C. and Barboza, D., 2012. In China, human costs are built into an iPad. New York Times, 25.

Linden, G., Dedrick, J. and Kraemer, K.L., 2011. Innovation and job creation in a global economy: the case of Apple’s iPod. Journal of International Commerce and Economics, 3(1), pp.223-239.

Licht, Tine R., Max Hansen, Anders Bergström, Morten Poulsen, Britta N. Krath, Jaroslaw Markowski, Lars O. Dragsted, and Andrea Wilcks. “Effects of apples and specific apple components on the cecal environment of conventional rats: role of apple pectin.” BMC microbiology 10, no. 1 (2010): 13.

Heckemeyer, J. and Overesch, M., 2013. Multinationals’ profit response to tax differentials: Effect size and shifting channels.

Smith, J., 2012. The GDP illusion: value added versus value capture. Monthly Review, 64(3), p.86.

Chan, J., Pun, N. and Selden, M., 2013. The politics of global production: Apple, Foxconn and China’s new working class. New Technology, Work and Employment, 28(2), pp.100-115.

Borrus, M. and Zysman, J., 1997. Globalization with borders: The rise of Wintelism as the future of global competition. Industry and innovation, 4(2), pp.141-166.

Hunt, Elle. “Apple Paid No Tax In New Zealand For At Least A Decade, Reports Say”. The Guardian. N.p., 2017. Web. 29 Mar. 2017.