International Business Theory - Coursework Example

International theory helps business units to understand the business world better. International theories provide the business units a better understanding. This helps the local and global business units to develop their strategies accordingly. With borders disappearing and countries entering into treaties international theories are making it easy for business units to understand the way business should function. This makes it easy for to get acclimatized to the way to perform when competition is at the highest level. Understanding the international theory and way business is done at a global level helps to prepare for it. This will help the local business units to “buy and sell goods in market which are profitable, distribute those in the best countries which favour them, produce at the lowest cost, get a global outlook and achieve economies of scale”. Understanding the international theory will help to achieve the above factors and face competition. This will give companies a motivation to improve. International theory will also help to understand the culture that will help to achieve wonders. This will help the business world to understand the need to be “flexible so that they can grasp the strategic options which might arise due to environmental changes”. This will be possible by understanding the way international companies work. Understanding this will help them to make their path easy and help them grow. It will also reflect on the employees’ morale. Understanding the way international business works will also help to draft the correct strategy. When an understanding is created for the employees’ morale on the global level better methods can be devised for the local business units. This will also ensure that the company profits increases. Understanding the international theory will help business units to get comparative advantage. By replicating the success models and ways of working local business units can be ahead of competitors. This will also help business units as the comparative advantage by being a differentiator can be used. This will help to get more customers. International business theory will also help business units understand the factor efficiency has. It helps business units to work towards that. This will give them an edge. They will be able to know utilize their learning. It will thereby ensure that global conditions are replicated. This will give them a global look in the local environment. This will help to get more customers and ensure that business units build their strategies and helps in capacity creation and proper utilization of that capacity. International theory thus helps to build long term strategies. The business units can foresight and understanding those they can be ahead and ensure that when they become global they are successful. The formula which has worked for other companies might be worthwhile. Thus international business theory helps to understand the business world. International theory helps to understand business better as it helps to “understand condition such as culture, caste, religion and prevalent customs”. It helps to understand the different customs. It throws light on the important things business units should do. This also helps to understand the factors which need to be worked on. It therefore helps to develop all round strategy. International business theories also give a direction to perform. It shows that to be successful business needs to work on their core efficiency. This helps business units to learn that business units who were able to work on them were successful. International theory thus helps to understand customs and how it can be useful for business units. International business can help a local unit like suppose it is going to operate in the Middle East. The region is dominated by followers of Islam. So the local business units can understand the way international companies work and develop ways that goes along with the custom of that country helps to build relations. This will make it easy to market them. International business theory will also help business units to understand places where strategies backfire. A miscalculation or interpretation might result in ruining their name. This would put a stop for the company to grow in countries which are similar as they loose reputation. Thus business units who learn from the international theory won’t replicate this. This will help them grow. International business theory deals with things at a global level. It has in it the ingredients of the local conditions as well. Properly adapting those and learning the positives is beneficial for the business units. It throws light on the way business should work. It helps to create an atmosphere where work is better. International business theory also helps to understand the HRM condition prevalent globally. Business units can learn from them. It will help to create a balance as to when a company should hire. This will also teach the business units to look into factors which are important globally. It will be a step in the forward direction. International business theory helps to understand the changes that business units encounter and how they come up with those changes. It can be seen from case of McDonalds in India. The company by changing its strategy was able “to capture a good chunk of the Indian market”. There reasons were on the basis that India being a culture sensitive country and high on religious favour companies which have these fundamentals. McDonalds used oil which contained animal fats. The religious custom didn’t allow those. The company understood the culture and came again with a variant. They launched the vegetarian variety and removed beef from its menu. It even stopped using oil which contained animal fat. This resulted in the company gaining market share. Consumers started liking the product. Thus there is a lesson for business units to learn from here. This helps to learn the changes that business units encounter everyday. It teaches that business units need to be ready for this. Changing thus helps business units as it presents them differently. International business working thus helps business units to realize the importance of bringing fundamental changes. International business theory helps to understand business better as it helps to realize the importance of market orientation. This helps business units to realize that they need to be oriented to be able to capture the market. It helps the business units to realize that to be successful understanding this factor is vital. International business theories help to understand business better as it teaches the trap present. This leads the company to manage their finance properly. Business units aware of the traps can look for alternatives. This will ensure that they don’t fall into financial crisis. The business units can also learn the ways to come out of this trap. This thus helps companies to get a good chunk of the market. International business units help to understand business units better as it teaches the different models. It helps to find ways in which different companies work on. For example, pharmaceutical companies who work on similar ways. International business working methods help to realize that this company’s produce locally according to the requirements but research is carried globally. Thus it helps to understand places where integration is required for business units. International business theory also helps to learn the international laws in relation to the labour. Business units can learn how different countries work. For example, “US multinationals tend to be centralised in their decision making process”. This can be used by business units when they plan accordingly. It helps to prepare oneself beforehand. It also ensures that business units have information about it and they don’t lack behind. International business units’ helps to understand business units better as it helps to find places where a particular product can be sold. Business units can identify how different places bring new avenues. It also helps to find the places which can be cheap. This can be used buy business units in their development. International business theory thus gives things a global perspective. This helps business units to use those and work in such a way that it develops them. International business theory teaches business units to adapt them. Like business units can learn that “US business system is shaped by anti-unionism but the US local subsidiaries are shaped in the UK by the conditions there”. This will help the units to grow. International business theories help to understand business better as it helps to learn the different marketing mechanism. It will help business to focus on areas where they can market more. It will ensure that the efforts are not wasted. It will thus give the workforce a boost and help them to take a path where they are able to nurture their understanding. The environment as a result would improve. It will also help to understand business unit to understand the importance of matching the local requirements. This helps to understand the importance of restructuring the basic framework to work thereby creating a new and subtle image. This will help to understand and help the company in the future as they can enter with a new product and acceptability becomes easier. This theory thus helps to understand the importance that working on the self built factors can develop them. It also helps business units to understand the importance of training. Business units can learn from international business units the value they will get for trained personnel. This will make business units to pursue this strategy. Their hiring process will thus fall in line. It will match to the international requirements. This will help business units to grow from size zero. International business theory will also help business units learn the importance of first mover. This will help business units to take steps in that direction. This will help business units to improve accessibility and develop the local talent which could fit in the scheme of things for the organisation. This will thus help business units to increase their chain and slowly expand. International business theory will also help business units understand the importance of technology. The understanding for business units will improve and they can grow using it. This will make them take steps. It will therefore bring about a change in their working. This will help business units to be more competitive. International business theory will also helps business units’ ways to tackle competition. Business units will understand that when companies are able to face competition globally then it is easier to face it locally. It will also prepare them to fact such in future. It will also teach business units to realize the importance of developing area where they can falter. International business theory thus will help business units to understand the total scenario from a different angle. It will help business units to know areas of concern. Business units can look into areas and ways this international units work. This will help them pursue those in their business models. Business units can also learn from international units the way they deal with new situations. This will improve their understanding and make functioning better. It will also make the business units the importance of going to other countries. Since, international units deals with varied circumstances so business units using them as a model will help multiple areas to work on. International business theories thus will help business units get useful insights. It will help the business units to find some core areas. It will also help business units to understand how the different international units in the same line of business project to the customers. The business can be improved. This international theory also throws light on the different functioning methods used. Business units thus can be better managed with the help of these international business theories. Using the different models and learning’s business units can devise the best ways. There are few chances that this might fail as it will consider a lot many factors which might have not been otherwise considered. International business theories thus are vital as it helps to understand the business better and using the different tools and theories a better functioning can be created. This will help business units to grow and ensure that steps are taken in a positive direction. This will thus help business units to grow. Read More