Global Business That Seeks to Create a Better World for All Countries - Assignment Example

Business Name Date Question 1: Globalisation This discussion focuses on global business that seeks to create a better world for all countries especially those countries that do not benefit from globalisation. Globalisation can be taken to stand for the continuous political, economic and social processes that seek to enhance associations and expands interdependencies internationally in terms of governments, organisations, firms and people. Parties of two or more countries in a globalised business context, being governmental or private, can engage in commercial transactions. Small, medium or large firms are affected in one way, or another by global events and competition (Melnikas 2014, p31). The domestic environment of business is less complex than the international environment. The focus of this discussion considers how various traits like openness, inclusion, and openness can be adopted by a business in the development of a meaningful environment that is conducive for all globally. The effect of globalisation triggers a need of having an expanded scope of knowledge. There are very many differences that can be attributed to cultures and countries across the world. There is, therefore, a need to have the most optimal approach that will enhance harmony in many sectors across the world. It can be noted that there are varying needs that are identifiable across various countries and sectors. What is considered as the best policy in one area is not necessarily the best in another. This may be attributed to differences that are in existence in the economic, political and social platforms. With this knowledge in mind, the focus is not necessarily in having a global policy or intervention that wins a universal acceptance. However, the direction is in on developing the most inclusive program that can have a high percentage of beneficial coverage. (Aggarwal 2011, p57) Having a goal of developing the global economy in mind will ensure that opportunity is created for all parties. In the developing countries, for example, there is a high need to have more attention towards development of capital. There are some these countries that are heavily endowed with resources. However, due to various constraints, they are unable to obtain the benefits. These constraints, for example, may include having an underdeveloped manufacturing sector. This makes them export raw materials that earn them low foreign exchange. If these countries had been helped to develop their raw materials into finished products for export, a lot of success might have resulted. The approach of global business could, therefore, be in the empowerment of such countries (Voegtlin, Patzer & Scherer 2012, p13). This empowerment can be, for instance, in ensuring that the human resource in the country is developed to such a level that can be globally competitive. This approach is helpful in that it grants an opportunity that would otherwise have been difficult to obtain, especially by the countries that have various limitations. Various international locations and operations are directed towards ensuring that there is creation, exploitation and transfer of competencies in such a way that enhance competitive advantage on a global scale. This is possible through ensuring that the unnecessary barriers and limitations that are used as corporate strategies are relaxed or removed (Awuah & Amal 2011, p127). The policy makers in both business and politics are to ensure that there is sustainable transferability of capabilities and resources across the industries and countries. The business models, supply chains, resources of a global business should be directed towards having linkages and complementariness in the global net of operations. Nokia, for example, is a leading brand for mobile headsets that have been able to expand its scope globally through ensuring that its global operations are widened in scope as to having a universal coverage. This restructuring of operations has proved to bear fruits to a great degree (Moncada, Vivarelli & Voigt 2011, p597). One of the reason this has been so lies in the ability to have competitive prices that are diversified for each category of the brand or according to the tastes and preferences. Having such a broad base caters for the various groups internationally. A business that operates at a global stage ensures that there are competencies that can be benchmarked by the domestic enterprises. The countries that do not participate in globalisation will, therefore, benefit from such business in that they can see the best practices that are being adopted and the success that they are yielding (Hamilton & Webster, 2012). In the gaming industry, for example, Oculus have been able to develop itself greatly in a way that have been benchmarked by the other players. The recent development of the Oculus Rift, which is a virtual reality technology in the computer video games have triggered a global impact in the industry. The incumbents and new entrants have been empowered by the open nature of the development. The former ideologies that such experiences are mainly for the youth and the children are absorbed by the enhanced competitive advantages created for a broader coverage. Such acts of businesses that revolutionise countries and industries are paramount when sought to be integrated with the global framework. (Lee, Shin & Park, 2012, p837) A global business also stands to gain from having an extensive impact that is not only to other beneficiaries, but also to itself. This mutual benefit should the motivation that enhances proper progress. Having global customers requires a network of distribution that is global in nature. This is because the multiple sites are in need of a constant supply in response of particular demands of the place or country in focus. Catering for the needs of the customers and ensuring that there is a good flow of activities is enhanced through a global knowledge management. The operations need creation and sharing of human capital and databases as a global knowledge pool. From this pool, competencies, experience and knowledge needed for innovations will be enhanced (Ueda 2012, p14). When a global business has a services blueprint as a result of enabled innovation, for example, the flow of activities are explicitly displayed. Due to the notable success of the business, the various categories that seek knowledge on the competitive means employed for success of the company will benefit as they adopt it. Research and development (R&D) is a very important component of a successful business. A business that seek to be of global relevance must be at a position to extend the scope of research done in all the aspects of its existence. The existence and success of the business need to be specifically directed to a harmonised atmosphere of operation. Research ensures that the business is supported by a well calculated strategy that is a result of a well identified and formulated solution (Rubalcaba, 2011). This systematic method is done with a problem or policy goal in mind. Research ensures that there is a scientific explanation that is accorded to a particular phenomenon. Complementary data that constitutes the information that is accurate, timely and reasonable, ensures that a global relevance goal is achieved. Considering the need for a successful global integration, the high costs that are involved with such extensive researches can be justified (Wild & Han, 2014). This research needs technical skills and proper judgement to ensure that it remains relevant to the global concerns. A research, for instance, may conclude that greater economies of scale will be attained by supplying multiple national markets. A global business will thus be expected to ensure that there is a good network in product development, production and distribution. As this discussion has asserted, the aspect of globalisation can be adopted successfully in such a way that will ensure that there is a better world for all countries especially for those countries that do not benefit from globalisation. Developing a direction of thought that is inclined towards openness, opportunity and hope rather than limitation, suspicion and grievance is the way to go for a business seeking to be relevant and successful on a global scale. In addition, the inclusion strategies will expand the base for all countries that will ensure a large scale benefit to the parties involved. It can, therefore, be noted that such benefits that accrue from efficient globalisation enhancement are of mutual benefit to the business that fosters them and also to the countries that are covered. References Aggarwal, R 2011 Developing a global mindset: Integrating demographics, sustainability, technology, and globalization Journal of Teaching in International Business, 221, 51-69. Awuah, G B, & Amal, M 2011 Impact of globalization: The ability of less developed countries'LDCs' firms to cope with opportunities and challengesEuropean Business Review, 231, 120-132. Hamilton, L, & Webster, P 2012 The international business environment Oxford University Press. Lee, Y, Shin, J, & Park, Y 2012 The changing pattern of SME's innovativeness through business model globalization Technological Forecasting and Social Change, 795, 832-842. Melnikas, B 2014 Transformations in Business & Economics Networks,131, 31. Moncada-Paternò-Castello, P, Vivarelli, M, & Voigt, P 2011 Drivers and impacts in the globalization of corporate R&D: an introduction based on the European experience Industrial and Corporate Change, 202, 585-603. Rubalcaba, L 2011 Business services in European economic growthStrategic Direction, 281. Ueda, K 2012 Banking globalization and international business cycles: Cross-border chained credit contracts and financial accelerators Journal of international Economics, 861, 1-16. Voegtlin, C, Patzer, M, & Scherer, A G 2012 Responsible leadership in global business: A new approach to leadership and its multi-level outcomesJournal of business ethics, 1051, 1-16. Wild, J, Wild, K L, & Han, J C 2014 International business Pearson Education Limited. Question 2: Excellence The Toyota Motor Corporation has had a successful development and has revealed its sustainability throughout the years. It is a Japanese automotive manufacturer founded in 1933 which has its headquarters in Aichi, Japan. It is one of the world’s greatest and most innovative automobile manufacturers in the world. It has three manufacturing companies in twenty-seven countries and has its sales in more than 170 region and countries. Using the seven key elements in the McKinsey &s model, which is a tool of analysing the design of an organisation, Toyota’s effectiveness and achievement of its objectives can be analysed. These seven internal elements of the model are: strategy; structure; systems; shared values; style; staff and skills (Hanafizadeh & Ravasan 2011, p34). Taking into account, all the seven factors will ensure that there is an implementation of the strategies of the company in an exhaustive manner. There is a sense of interdependence in the factors. This means that not paying the necessary attention to one of the factors may cause an imbalance to the whole system. The seven areas of an organisation, as defined in the McKinsey model contain ‘hard’ and ‘soft’ areas. The soft areas are considerably harder to manage. A sustainable competitive advantage is achievable when they are put to focus as they form the foundation of an organisation. They are style, staff, skills and shared values. On the other hand, systems, structure and strategy form the hard parts which can be easily managed and identified in comparison to the soft elements. (Qi-gang 2011, p58) McKinsey 7s model Considering strategy, Toyota has set its values, mission and vision in a way that links to the whole structure of an operation giving it a great competitive advantage. The alignment of the strategy of the company in such a way that ensures a successful flow of the company is the direction that is sought after. The strategy is reinforced by a long-term perspective which allows to ensure sustainability of the company throughout the years. The integration of the adopted strategies is ensured through having policies that have been well taken through a good research and development stage. Toyota Company has invested a lot in the area of research in an effort to employ the strategies that have a global standing (Marksberry 2012, p283). The strategy seeks to develop a global coverage through ensuring that emphasis is not laid on one objective at the expense of another. The goal of profit making, for example, is not allowed to overshadow the corporate social responsibilities which are also a great commitment of the Company. The structure consideration in the model relates to the units and divisions of the company. It describes the accountability structure of the company. In Toyota, the organisational chart has been explicitly set out. This is expressed in the service blueprint in the organisation which reveals the way that the company is run. Various branches of the company have their unique structures. However, there is a structure that governs the global branches. These structures are bound to change in order to be aligned to the specific demands of the various stakeholders of the business. The general structure, however, has some sense of sustainability. This can be attributed partly to the organisation’s culture which have been followed over time. Toyota’s division and unit have, nevertheless, been very responsive to the changing nature in the market especially as technology advances. Being, one of the most innovative companies, a structure that describe the details of operations and the flow of activities according to the responsibilities of each level is well detailed in its service blueprint. (Ward, Liker, Cristiano & Sobek 2012) The making of decisions and the daily activities of the company are revealed in the system factor of the model. The procedures and the process that the company engages in are hereby developed and described in detail (Alshaher, 2013). When there is a change being effected in particular areas of the organisation, the system becomes the main focus. The commitment to the achievement of the mission, vision and values of the company is addressed mainly in the daily operations of the company. The direction of the company is instructed by the daily operations in an aggregate view. As such, there are explicit procedures and processes that are set out in various departments of the company. This ensures that there is no duplication of tasks as well as ensuring that there is no activity that is left out without being sufficiently handled. (Monden, 2011) Toyota has a great plan in the development of the human resource described by the aspect of skill in the model. The goal is in having a very well refined human capital base that can respond to the changing nature of the environment in which the business operates in. Being an automobile company, there is a heavy reliance on having a well-structured flow in skills that deals with the particular shocks that may occur (Naipinit, Kojchavivong, Kowittayakorn & Sakolnakorn 2014, p35). The global financial crisis of 2007-08, for example, did not affect the company severely in comparison with the other companies. This may be partly attributed to the well-developed skills that had a strong foundation in contingency plans to ensure that adverse shocks are responded to very appropriately. In the development of a new strategy or structure, there is a heavy reliance on appropriate skills that ensures that the company is taken through the transition. The element of the staff concerns itself with the organisation’s employees in terms of their number and the type (Qi-gang 2011, p58). In 2013, this multinational corporation consisted of 333,498 employees globally. Being able to handle such a big number of employees has demanded very explicit plans in terms of aspects like recruitment, training, motivation and rewarding. There are various levels of services that are required in the company. This includes the technical need in the manufacturing sector and other areas such as marketing, sales and customer care services. All these categories demand a very high level of skill that calls for an integrated system. The development of a particular project in the company, for example, demands a harmonised team. It is required that the project team should consist members of different departments. This has ensured that there is an inclusion throughout the company. The chances of conflict developments, for instance, in issues of contradicting departmental policies is solved. (Andrews, Simon, Tian & Zhao 2011, p1073) The consideration of style as an element of the model relates to the management of the company by those who are at the top level. The issues in consideration here is their symbolic value, their actions and their interactions (Peters, 2011, p7). The management style of the company leaders is directed towards having a global inclusion. This is particularly so in having absorption strategies that ensure that the particulars for success in the company are obtained from the respective environment that these various branches exist. In addition, there is an emphasis from the leadership on maintaining the culture of the company throughout its global presence. This has ensured that there is a distinctiveness in the company. The core of the McKinsey 7s model is the shared values element. This forms the foundation of the organisation (Jing-xin & Wei 2010, p5). Toyota company have four core values: continuous innovation and improvement; international focus; respect for people; and customer first. This has been able to be followed in such a way that had ensured that there are integrity and quality of a high degree. The relevance in the international market has been developed through abiding to the norms and the standards guiding the actions of the company and the behaviour of the employee. As it has been identified, the adoption of the McKinsey 7s model in describing the excellence path of an organisation is very appropriate. This has been so particularly in consideration of Toyota in the light of the elements of the model. These aspects have been identified as being interdependent. A proper balance, therefore, lies in the exhaustive consideration of each of the element. Both the soft and the hard areas are important, and they are complementary in nature. The competitiveness of Toyota in the marketplace have been depicted with the aid of the model as a tool of analysis. References Hanafizadeh, P, & Ravasan, A Z 2011 A McKinsey 7S model-based framework for ERP readiness assessment International Journal of Enterprise Information Systems IJEIS, 74, 23-63. Peters, T 2011 McKinsey 7S model: It continues to benefit leadersLeadership Excellence, 7. Qi-gang, L I 2011 The Analysis on Strengthening the Core Competence of Sci-tech Periodicals——Based on Mckinsey 7S Model Sci-Tech Information Development & Economy, 14, 058. Naipinit, T, Kojchavivong, S, Kowittayakorn, V, & Sakolnakorn, T P N 2014 McKinsey 7S Model for Supply Chain Management of Local SMEs Construction Business in Upper Northeast Region of Thailand Asian Social Science, 108, p35. Alshaher, A A F 2013 THE MCKINSEY 7S MODEL FRAMEWORK FOR ELearning SYSTEM READINESS ASSESSMENT International Journal of Advances in Engineering & Technology, 65. Ward, A, Liker, J K, Cristiano, J J, & Sobek II, D K 2012 The second Toyota paradox: how delaying decisions can make better cars faster Sloan management review. Marksberry, P 2012 Investigating “The Way” for Toyota suppliers: A quantitative outlook on Toyota's replicating efforts for supplier developmentBenchmarking: An International Journal, 192, 277-298. Andrews, A P, Simon, J, Tian, F, & Zhao, J 2011 The Toyota crisis: an economic, operational and strategic analysis of the massive recallManagement Research Review, 3410, 1064-1077. Monden, Y 2011 Toyota production system: an integrated approach to just-in-time CRC Press. Jing-xin, C, & Wei, L 2010, August Research on Operational Risk Management Framework for Commercial Banks in Internet World-Based on McKinsey 7S Model In Internet Technology and Applications, 2010 International Conference on pp 1-6 IEEE. Question Six: Disruptive innovation- The Internet of things There are new ways of creating value that arise in the enhancements of good business models. Different industries have adopted various technologies in an effort to ensure that there is added business value and sustainability. The consideration that is to be one here concerns the gaming industry. This is a very highly ranked industry in the entertainment sector in terms of popularity and revenue. The industry had various milestones in the technological advancements (Li, Zhang & Kuhl 2014, p93). One of the most recent technological advancement is the adoption of the virtual reality technology in its endeavours. The effects of this recent developments are already profound. The impact that this technological change to the gaming industry is analysed, and the analysis projected to the next five years. The gaming industry has started to see a massive change in its structure and operations that has resulted from the recent development of the usage of the virtual reality (VR) technology. Virtual reality makes use of a head-mounted display (HMD). This technology makes use of the computer generated environment. The technology operates on the basis of tracking head motions. This has revolutionised the gaming industry completely. The expectation is that the technology will continually diffuse in the industry globally at a very rapid rate. Already, the technology has attracted a very huge level of attention. Oculus Company is the organisation that spearheaded the development of the VR technology in its project, the Oculus Rift. Sony has also been followed closely by the development of the ‘Project Morpheus’ which also makes use of the virtual technology. Other companies like IBM, Valve and Steam, are quickly adopting the technology as well. (Blaha & Gupta 2014, p163) . Virtual Reality technology using the HMD. The idea behind the technology is ensuring that the customers experience is very well enhanced through ensuring that the HMD are used to provide a 3-Dimension view. The atmosphere that is created is very immersive making the player of the game have an experience that is seemingly realistic. The incorporation of graphic, sound and technology into the video game input technology has seen a progressive alteration to the culture of the industry. There are convincing results that the technology has started to achieve which has helped in breaking the reluctance to change in the industry (Seibert, 2014). One of the milestones to the technology is in the innovation standards it has been able to meet. This has allowed for a total change in the industry, both to the incumbents and the new entrants. There is, therefore, a revolutionised approach in the industry. This extends globally with adjustments in the markets where the gaming industry is established as well as in the emerging ones. (Beer & Guez 2013, p16) The global gaming revenue has been on its rise to an expected $81.4 billion in 2014 from $70.4 billion in 2012. This is a great growth. It is projected to be more than $100billion by 2017. The expectation is that the growth will continue as the mobile devices that are connected to the internet services progressively gain popularity in the emerging markets in places like Eastern Europe, Asia, Middle East and Latin America. The number of gamers in the next five years is, therefore, expected to have experienced an exponential growth. In addition, the developed markets in the gaming industry like the U.S and the Great Britain will also receive a dynamic revolution (Reiners et al., 2013). This is because the expectation is that they will have to change their developments in such a way that incorporates the new technology completely. The casual web games, mid-core PC games and the multiple online games have been some of the highly ranking games in terms of popularity. There is much to be anticipated as more research and development (R&D) is directed towards the betterment of the technology. The competitive design of the technology that has triggered a shift to a new mode of operation will have to be sustained through constant improvement. This is particularly so as far as the goal to have a great level of addition to the business value as well as ensuring that there is sustainability of the technology. This technology has so far been effected only by a few companies. An important explanation is that it is a relatively new technology and is arguably the most recent developments in the industry. Oculus Company has the Oculus Rift that makes use of the technology. The company is the pioneer of the technology. Sony has been working on the ‘Project Morpheus’ which has the technology in the core of its development. (Bolas, Iliff, Hoberman, Burba, Phan, McDowall & Krum 2013, p183) Just as it is the case with any new development, as the technology progressively take root, there will be a higher level of competition. Facebook has sought to acquire the Oculus Rift for $2billion (Bastiaens, Wood & Reiners, 2014). This reveals the competitive level that the technology has already been able to acquire within its very short time of existence. There is a shift of perception in what the gaming industry is. Apart from the entertainment part of it, it is progressively being considered as a very great income generator as its revenue grows with time. A forthcoming transformation as the technology expands in the market share is, therefore, assured. Companies like Valve; Steam and IBM have adjusted their operations and developments in a way that allows the new technology to take root (Guttentag 2010, p649). As such, in the next five years, there already will be a fully enhanced atmosphere as a total adoption of the technology reveals its effect. The need for extensively harnessed contingency plans that caters for risks in the industry is needed. As with any successful plan, it is expected that the incorporation of risk factors in the projection of the effect that the new technology is to have should be ensured. The VR technology can, therefore, not be said to be risk-free. Identification of the risk factors and taking the necessary steps that ensure that the industry is not affected negatively by any resulting shock is of key importance. More research and formulation of policies that goes along with the technology is expected. An analysis of the market performance of the technology will be successful as real and relevant data is obtained. The impact that the risk factors have or are expected to have are measured against the current and the expected returns of the technology to the industry. (Bideau, Kulpa, Vignais, Brault, Multon & Craig 2010, p17) There is an expected shift in the tastes and preferences as the customers are more exposed to the new technology. Speaking on extreme terms, the other technologies that have been used will become obsolete. This is partly because having an expanded experience will maximise the utility level of the customer. It will, therefore, shift their demand patterns in a rational manner. It is a general expectation that a customer will go for the best product when offered a choice, holding other factors constant. The ease with which the technology will be adopted by the various players in the industry will dictate the ease with which the technology will have a global expansion. The base of operation will also be motivated by the revenue levels. The cost of production and installation of the company may significantly add to the costs of the companies that are involved. However, having the costs offset by the expected returns will be a great motivating factor to the technology adoption (Van Krevelen & Poelman, 2010). Making of high profits is within the main objectives of many companies. Following this concern, any development that enhances this is highly encouraged. It can, therefore, be said that the virtual reality technology will add significantly to the business value as well as ensure high sustainability levels. The gaming industry has already been experiencing a great transformation. The technology will change both the incumbents and the new entrants. The companies that do not respond appropriately to the new technology will, most likely, not be able to have a competitive advantage that is required for sustainability in the industry in the next five years. Those players that can respond quickly to the new technology will most likely benefit greatly. References Bastiaens, T, Wood, L, & Reiners, T 2014 New landscapes and new eyes: The role of virtual world design for supply chain education. Beer, S, & Guez, J 2013, March Ideas about VR&AR as a new genre in fine arts In Proceedings of the Virtual Reality International Conference: Laval Virtual p 16 ACM. Bideau, B, Kulpa, R, Vignais, N, Brault, S, Multon, F, & Craig, C 2010 Using virtual reality to analyze sports performance Computer graphics and applications, IEEE, 302, 14-21. Blaha, J, & Gupta, M 2014, March Diplopia: A virtual reality game designed to help amblyopics In Virtual Reality VR, 2014 iEEE pp 163-164 IEEE. Bolas, M, Iliff, J, Hoberman, P, Burba, N, Phan, T, McDowall, I, & Krum, D M 2013, March Open virtual reality In Virtual Reality VR, 2013 IEEE pp 183-184 IEEE Guttentag, D A 2010 Virtual reality: Applications and implications for tourismTourism Management, 315, 637-651. Li, B, Zhang, R, & Kuhl, S 2014, August Minication affects action-based distance judgments in oculus rift HMDs In Proceedings of the ACM Symposium on Applied Perception pp 91-94 ACM. Reiners, T, Wood, L C, Gregory, S, Petter, N, Teräs, H, Gütl, C,..& Herrington, J 2013 nDiVE: the story of how logistics and supply chain management could be taught. Seibert, J 2014 An exploratory study on virtual reality head mounted displays and their impact on player presence Doctoral dissertation. Van Krevelen, D W F, & Poelman, R 2010 A survey of augmented reality technologies, applications and limitations International Journal of Virtual Reality, 92, 1. Read More