Transforming EHG Corporation Ltd from Domestic to International Company - Case Study Example

Transforming EHG Corporation Ltd from Domestic to International Company Name: Tutor: Course: Date: Transforming EHG Corporation Ltd from domestic to international company Introduction EHG Corporation Ltd is an Australian enterprise dealing with computer hardware and software solutions. The company is based in Sydney, New South Wales. EHG Corporation Limited was initially called Ellect Holdings Limited. The entity engages in the distribution and development of payment products electronically. The company is planning to diversify from a domestic to an international company. Before it diversifies, it has to meet minimum requirements as discussed below; Environment and sustainability Business environmental sustainability demands that globalizing firms comply with sustainable development principles. EHG Corporation Ltd has to provide industrially and environmentally sustainable products and services by addressing critical issues at the macro level like social equity, economic efficiency, and environmental accountability. This will address specific issues like innovation, productivity, poverty, human rights, land use, biodiversity, and climate change. It has to develop best practices that promote business sustainability, and help the firm from being a laggard to a leader. These practices should include: stakeholder engagement through learning from the surrounding community, customers, and employees. Engagement is about involving stakeholders, understanding opposition, finding a shared ground in mutual decision-making. Environmental management systems provide processes and structures that bolster environmental efficiency into the culture of the firm. Reporting and disclosure is by collecting and collating information, and being transparent with outsiders. Life cycle analysis helps the firm to take a large forward leap of analyzing the social and environmental impact of IT products used and produced. When the firms becomes sustainable it will attract and retain employees so easily hence experiencing minimal reputation and financial risk. It will also be adaptive and innovative to its environment. Global Opportunity There are major expectations for growth in the global enterprises. Global economy in the last few years has favored emerging markets making them the favorite talking chamber of C-suite executives and suitors of financial press worldwide. Emerging markets are promising markets in their own right since they are attractive for source of cheap labor, natural resources and low-cost manufacturing. The world is experiencing sustained economic development, rapid population growth, and a middle class that is consistently growing making many companies to regard emerging markets in an entirely new dimension. Companies grow with the rise of emerging markets. Some companies which had posed no competitive threat before are now scaring multinational corporations. The emergence of these leaders in the market represent shows a bigger shift in the world competitive landscape. This trend strengthens with growth in size, seeks new opportunities and establishes dominance that goes beyond their traditional near-shore and domestic markets. Entrepreneurs in developing markets Lack of capital and financial innovation are the most obvious factors affecting entrepreneurship in developing countries today. Majority of people in these countries suffer the essential capital to begin their own business due to limited personal savings. Entrepreneurs in these countries have resorted to external financing where they become vulnerable to high interest rates owing to the high risky status of fresh business projects. The financial markets are still underdeveloped with costly borrowing rates. It means that entrepreneurs in emerging economies will have to use informal finance sources to begin their businesses. Many entrepreneurs in emerging economies have resorted to generating income from businesses or multiple jobs. In developing countries, the wide-ranging business nature is commonplace. It has allowed entrepreneurs to eliminate successfully  the high levels of adverse market risks as they attempt a portfolio strategy that is diversified. Leadership and management style The firm needs to understand the frameworks, tools, concepts, and models essential to quickly understand, share and effectively work on principal functional areas of finance, operations, strategy, marketing, and branding. Global leaders steadily learn the appropriate leadership skills required to make the right decisions with the correct risk levels. This influences the multi-cultural environments through utility of appropriate power. Leaders and managers should understand cultural differences, professional behaviors and skills, west and east management styles that thrive profitably in a global organization. The firm has to develop the behaviors and insights required to craft big ideas and solve sophisticated challenges in a global environment by innovative and creative thinking. When engaging global markets, managers should be cognizant of societal factors that affect relationships in business. It is known that people are likely to be more trusting and open in societies in which corrupt practices are reproved and contracts protected. The reason for Singapore developing quite rapidly is in good remuneration of officials and strict punishment corruption. If people lose trust in the government, tribal or religious identities will become more pronounced. Experts from United States and Europe often stay together instead of making an effort to socialize to develop trust with local managers from emerging markets. This has resulted in resentment, particularly when local managers feel unfairly and disrespected compensated in contrast to experts. To engender productive collaboration, EHG Corporation managers ought to make efforts of socializing with locals and give details of the reasoning behind their HR practices. Risk management Risk management is not merely risk avoidance but controlled decision making. Balancing reward and risk is ever more essential but reward cannot come without risk. In emerging markets, risk management concerns primarily the risks experienced by long-term investors who invest their money in real assets and not financial entities like stock market investments. It is obvious that everyone concerned in emerging markets will gain greater value in understanding risk management. It will aid in opening managers' eyes to real and imagined risks and also giving solutions to the challenges. How this impact on risk is accounts on the differences among emerging markets. Global Intelligence Global Business Intelligence is essential through proprietary research and consortium surrounding global trade. This is achieved by obtaining information from senior executives from various industries like global transportation and logistic firms, banks, importers, exporters, software vendors, and credit insurers interested in global issues on supply chain. This combines the detailed and perspective knowledge of global trade with the contact of senior executives to probe and know what is happening. There is a desire to leverage on world-class, deep, and rich base of intellectual experts on business capital who are knowledgeable on specific trade issues. This data comes in the form of interviews of senior people. Getting information does not necessarily rely on internet surveys for insights. There are real-time analytics who are informed in making sound decision. The aspect of essential business metrics are always measurable and visible in real-time throughout all business operations, advanced by way of responsibility-based dashboards, searches and reports. The capabilities of Global Business Intelligence requires local support to regional and worldwide metrics throughout the business in real-time. The aspect of currency conversion happens as required at each category of the subsidiary hierarchy in management. There is need to obtain the correct information at the right time.  Global consolidated data and responsibility-based dashboards are vital in improving decision-making by allowing every employee and manager the information required for effective performance in their jobs. There is also need for individualized reporting especially in real- time. Regional managers and executives are able to set their Key Performance Indicators (KPIs) for every individual subsidiary or region so as to have a complete transactional drilled-down to the specific. Financial officers will get an easy time in analyzing the overall ledger transactions impact on the domestic, regional or world level. The sales staff can also have the opportunity to analyze sales, quota, commissions, and forecast at any sales hierarchy level. Global law and finance International Finance and law provides comprehensive, concise coverage and business news regarding international financing and legislations regarding money laundering, cyber crime, due diligence and global banks. The top-level financial reporting is often from around the world and specifically in the United States. International law and finance allows the company to be alert on regulatory and key policy developments in the host country and abroad. This affects both local and global financial and business environments. The countries can monitor the initiatives and actions of nongovernmental organizations, government agencies, standard-setting and global regulatory bodies. The company can save on effort and time through sourcing information and news out of diverse fields in a single resource daily. This should involve capital market, monetary policy, central bank actions, commerce, debt reduction, support and export policies, global economic trends, protection of intellectual property, global investment practices; labor practices; lending; mergers and acquisitions and international Monetary Fund. This should also concern patents, trademarks, securities, exchange commission; subsidies; monopolies and mergers; US Export-Import Bank and the World Bank. Human resources The company resourcing and selection policies should prioritize on recruiting talent and manpower, attraction, selection and training by looking into the culture, legal issues, and local laws of host country. The HR policies will have to be localized through building global teams and intercultural competence. The function needs to provide reports on anything needed to be understood on the ground. Entering a new market will demand preparedness and readiness to subdue the challenges of the new market. Some countries and markets have diverse economic, political, and socio-cultural outfits that force companies to downsize business operations or exit the market. In this occasion, HR takes on a crucial role. A company with desire to succeed needs to plan on loss minimization and how to keep morale and synergy high. The strategies to help EHG Corporation maintain its focus on short term and longer term strategy is through an HR strategy that maximizes on talent development and management, analysis of employee engagement, job evaluation and analysis, reward strategy, identification of practices and HR policies, design and execution of performance management systems, planning and structuring of a learning and development strategy. Developing and assessing potential of people, leadership and helping key stakeholders in developing synergy, values, objectives and common goals. Evolving entrepreneurship Entrepreneurial activity becomes one of the basic drivers of industrial dynamism, growth and economic development. This discourse on entrepreneurship is fairly recent and quickly evolving. Entrepreneurship has emerged through sub-fields across various disciplines fundamentally sociology, economics, business/management administration, business history, marketing, psychology, geography, economic and cultural anthropology, finance, strategy assuming a variety of research perspectives, traditions, and techniques. Several initiatives have emerged to highlight this new research area like research in Global Award for Entrepreneurship which has since evolved into a highly prestigious prize in this vein of business. The role of entrepreneurship is amazing the works of scientific scholars who have appreciated it as an outstanding quality and significance, hence providing a great contribution to theory-building regarding small business development and entrepreneurship. The purpose and significance of new firm creation is epitomized in the role of Small and Medium sized Enterprises in economic development.” Global corruption Global corruption has shown that at least one in every four people have received or paid a bribe when using institutions and public services in the last twelve months. This was done through a survey involving more than 100 countries by Transparency International. Corruption kills entrepreneurship since wealth acquisition is not gained through real enterprise. The figures are higher among African nations as opposed to such countries as Australia, Finland, Denmark, and Japan. It is also relatively lower in the US. Despite this the rate of bribery remains high in the world. Though people believe they can fight corruption, the number of abusing power, engaging in underhand dealings and bribery is huge. It is a norm that institutions tasked with fighting corruption are engaging in the same vice with police and judiciary being depicted as the most corrupt institution in many countries. Exit strategies The struggle of launching their businesses is the reason that allows entrepreneurs to live. A factor that is often ignored is the power of making decisions. Decisions made on a single day may have huge implications on the business. The exit strategy for forward-thinking business owners of EHG Corporation can be to simply to run the firm dry on day by day. They can reward themselves huge bonus irrespective of actual firm performance. Enough is enough can be a lifestyle entrepreneurs decision. One cannot overlook the exit strategy of simply calling it quits by closing the business doors. Selling the Corporation to a friendly buyer is an option where interested parties may happen to be employees, customers, or employee family members. Acquisition can happen by selling the business. 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