Drivers For Internationalization In Aerospace Management Essay

Drivers For Internationalization In Aerospace Management Essay The papers in this portfolio are all related to the strategic decisions that corporate organizations make in order to expand their share of the ever-growing global market, while ensuring that their competitors are not able to replicate their formula for success. Three of the papers discuss specific companies-Tesco, Rolls-Royce, Carrefour and Wal-Mart-thus giving the impression of a mini case study on how these global players strategize their way into market domination and superior firm performance. The third and final paper is a general discussion on George Yips model on internationalization drivers as these are applied in the civil aerospace engine manufacturing and the global grocery retailing industries. Students, scholars and practitioners alike will benefit from the lessons and analyses made in these papers because they show a thoughtful and realistic look into the workings of different corporate organizations while utilizing different business concepts. At the end of the day, this portfolio is designed to show the students ability to comprehend and analyze practical business dilemmas in light of existing theory. Drivers for internationalization George Yip proposed his model of the drivers for the growth of international strategy among corporate organizations. He introduced four main categories of drivers that were key in determining the extent of globalization within a particular industry. These are: Market globalization drivers Cost globalization drivers Government globalization drivers Competitive globalization drivers A company that exhibits less of these drivers is characterized as being local in nature, and conversely a company with a higher number of the drivers are becoming more global both in outlook and in operation. These drivers are not stand-alone, however, because they in fact influence on another in a cycle that determines a corporate organizations readiness to join the ranks of global companies. Stated otherwise, these internationalization drivers are governed by four different factors: technology, social and demographic considerations, politics and legislation, and economic and political considerations. All in all, should a company wish to transform its operations from that of a local industry to an international one, it should pay attention to the different factors that can make or break its ability to participate actively in the global market. While there are of course other factors that may influence a companys eventual success in going global, Yips model gives us a simplified and practical view of what it would take for a company to launch itself into the global playing field and claim its share of global consumers. Different industries and different corporate organizations vary greatly in their capacity for globalization, especially because the nature of the products/services they offer as well as the consumers who avail of them are vastly distinct from one another. Let us compare the global grocery retailing industry and the civil aerospace engine manufacturing industry as an example. We can compare the two in this manner: Global grocery retailing industry Civil aerospace engine manufacturing industry Market driver High Low Cost driver High High Government High Low Competitive High High Countries that have the most advantageous combination of as many drivers as possible are preferred by global companies, as a market for their products/services, as a home base or both. As we can see from the table above, the global retail industry actually has better potential for pushing a global strategy. This is evidenced by the relatively recent entry of new global grocery retailing brands such as Wal-Mart into previously untapped markets like China. Because of the high tendency for globalization, other retail companies are also beginning to look in to the possibility of expanding their business overseas in order to benefit from a bigger customer base. Carrefour, Wal-Mart and the Chinese market The entry of big international players in the Chinese local market in recent years has shown that China is the new gold rush for global companies looking to expand their share of the market. The global grocery retailing industry is just one of the many business sectors that have come to China to make the most out of the millions of consumers who will avail of their products and services. The bid to make China the next biggest market for the global retail industry started in 1992 when the country opened up its retail industry to foreign investors like Carrefour and Wal-Mart. Carrefour entered the market three years later by opening a partnership with a Chinese management consulting firm, creating an entity called Jia Chuang. While other companies treated the Chinese market as one big bloc of consumers, Carrefour looked considered it to be composed of many smaller markets. It opted to create regional offices which were in charge of the expansion programs for different areas of the country, instead of having a centralized national operations network. Carrefour continues to carry out its expansion strategy by depending on local distributors, who supervise the delivery of their products straight to the stores from the regional centres. The company believes that flexibility is a priority consideration especially when operating in a relatively new market. The cost of development is lower because Carrefour is able to build its network store by store while keeping issues about uniformity of service and quality control in check. As for Wal-Mart, they see the challenges of the Chinese retail market differently. Unlike Carrefour, Wal-Mart is putting its investments on a centralized distribution system that is headquartered in Kengzian. The new centre boasts of a 40,000 square meter facility that has been created to handle simultaneous deliveries with up to 70 bays. But like Carrefour, Wal-Mart has also entered the Chinese domestic market by partnering with a local firm, a Taiwanese retail firm named Trust-Mart. Wal-Marts emphasis on back-end operations is almost the exact opposite of Carrefours customer-first strategy, although the latter seems to be on the upper hand in terms of actual market share and profitability. However, at some point Carrefour will also need to pay attention to its back-end to maximize the strong dynamics among its stores. Its current strategy is working well for Chinas market environment but new developments will have to be introduced in the future. No global retailer has yet launched an all-out expansion into China without creating a joint venture with a local company, which is a strategy that enables them to ease slowly but surely into the market instead of going in without a clue as to how the market actually works from the inside. However, it would be more disadvantageous for a global company not to try breaking into the Chinese business scene. The market is rich with millions and millions of consumers who are only too willing to try new the products and services that have suddenly become available to them thanks to the opening up of the market. Care must be made in making these new foreign financial investments work in order to ensure that the companies will see good returns on their investments. Companies must not be deluded by the promise of a huge new market and fall behind their usual standards for doing business. Tescos core strategies and VMO Tesco is one of the leaders in the global retailing industry. The company started in the United Kingdom in the late 1920s and has since grown to be one of the most robust and successful supermarket companies in the world today. Tescos core strategy is founded on their desire to attract and maintain customers who will become their lifetime partners. The company espouses the belief that their corporate success is dependent on their ability to meet the demands of people-both the people who work for them and the people who shop with them. Tescos two-pronged approach misses out on no opportunity to improve not only their service and products, but also their international relationship with their staff. This is reflective of the current thinking among corporate organizations today that a companys human capital is more than just another factor of production-they are in fact the backbone of a company and they make it possible for the corporate strategies to be carried out effectively. Paauwe and Boselie (2002) point out that the emergence of such a breed of HR management has been brought about by the fact that human capital is now seen as a source of competitive advantage. As for Tescos commitment to their customers, the company is firmly rooted in the belief that going the extra mile to satisfy their shoppers needs and requirements will go a long way towards ensuring their loyalty to Tesco. Loyalty is key to maintaining and expanding Tescos share in the retail market. If Tesco can give a customer superior service, then there are higher chances that that customer will keep shopping only at Tesco. But before Tesco can be first to meet their customers needs, they embark on a focused and in-depth study of their shoppers in order to anticipate what they require. Tesco employs what they call the Every Little Bit Helps strategy to ensure that they know exactly what their shoppers and their employees want. Tesco has designed five core business purposes: Be a successful international retailer Grow the core UK business Be equally strong in the food and non-food sectors Develop competitive retailing services Put the community at the core of all business activities. The Every Little Bit Helps strategy is Tescos way of translating these core objectives into actual strategies to help the company achieve its organizational goals. Without the concurrence of both strategy and purpose to guide a corporate organization, especially a global one like Tesco, there will be little chance for the company to have a clear direction of where it wants to go and how to go there. The core strategy and core purposes of Tesco are a way for the company to articulate what it wants to achieve within a given timeframe, as well as crafting the necessary steps to accomplish the goals that it had set for itself. As for Tesco, the company is imbued with the lesson that no organization will progress without considering the needs of its customers and its employees, so their approach is always to seek what is best for both in order to make the company number one. Strategic alliances and Rolls-Royce No man is an island-and even in businesses, this clichà © rings true today. Some organizations, particularly small-scale ones or those that have only just started doing business, may be better off finding their own niche in todays complex market, but there may come a time when they will have to form significant partnerships with other businesses in order to flourish and achieve sustained growth. The current state of the global business landscape today has forced organizations to come up with more creative ways of surviving and keeping ahead of their competitors. Some of the more important aspects that most companies today are focusing on to improve their overall performance are enhancing their brand identity, connecting with customers and attracting competent and highly-skilled workers (Isidro, 2000). Moreover, todays corporate managers are also facing a highly competitive environment that is increasingly complex, globally cantered, and technologically uncertain where there is a critical need for dynamic, flexible, and proactive responses (Miles, Preece, and Baetz, 1999). It is no longer enough to emphasize on creating and opportunities on their own, because independence also has its drawbacks. As a result of the various pressures that companies are facing, there is now an increased tendency among them to favour forging strategic partnerships and alliances as a viable business option. Elmut and Kathawala (2001) are also of the opinion that strategic alliances among corporate organizations are one of the most recent trends in the business community that have made it possible for companies to stay afloat despite serious drawbacks and difficulties. In the case of Rolls-Royce, the company has entered into almost 30 separate partnerships with different firms all over the world to help expand its share of the global market and build on its knowledge and technology base. Of the four reasons that Elmut and Kathawala (2001) outlined for the emergence of strategic alliances, it appears that there are two primary reasons for why Rolls-Royce has chosen to partner with different firms. For one thing, the company stands to gain from such partnership in terms of entering new markets with which it is unfamiliar. Brokering a deal with local corporations allows Rolls-Royce to expand its market while at the same time benefiting from the expertise of an old-timer in the market. Secondly, Rolls-Royce is also into strategic partnerships in order to obtain new technology and best quality at the cheapest cost. The company has four business divisions, all of which need intense research and development funding. Instead of going through their own R and D cycle, Rolls-Royce can share their knowledge and technology with their strategic partners at a much lower cost, thus ensuring that each division is well-maintained but is not draining the companys resources for continuous R and D. While Rolls-Royce can actually provide the funding for its own R and D, it is more cost-efficient for the company to trade information with its partners and make the product or service immediately available in the market. It must be noted, however, that it is not just Rolls-Royce who stands to reap all the wonderful benefits from the strategic alliance. Their partners also take advantage of the Rolls-Royce brand name and the companys existing network of contacts, suppliers and customers, giving the other partner a fair competitive advantage over its competitors in the local market. Strategic alliances are all about creating good working relationships with other companies in the industry and pooling together resources for the mutual benefit of the partners.

Compensation Consultants Essay

Compensation consultants are now becoming a popular tool to assist company in managing their compensation program and corporate governance strategies. However, there are both pros and cons in using compensation consultants. On one hand, there are some clear benefits; firstly, compensation consultants can provide expert knowledge, for example, insight and advice on trends in executive compensation, an assessment of executive compensation relative to executive performance; and insight and advice on the level and mix of pay and benefits (Conyon, 2007). Although, compensation consultants are viewed as external third parties providing solutions of optimal efficient managerial compensation contracts to align the benefits of both the employee and employer in the most fair and unbiased way. They have the ability to help the firm maximize shareholder’s value by designing compensation schemes that more closely align the interests of managers with shareholders since they can bring breadth and depth of experienced from handling similar problems and benchmarking comparable (peer group) firms especially when there is high information asymmetry between different parties. Other benefits include cost reduction in recruiting/rewarding process and efficient allocation of resources by taking the tasks away from human resource, compensation committee and shareholders who may not have the knowledge and experience in determining senior executive pay package. On the other hand, there are some drawbacks in hiring compensation consultants. Firstly, compensation consultants face potential conflicts of interest that can lead to higher recommended levels of CEO pay, including the desires to cross-sell services and to secure repeat business. Evidence shows that US CEOs receive about 18% more total compensation, and Canadian CEOs receive about 33% more, when their executive compensation consultant also provides other services to the firm (Murphy & Sandino, 2010). They are more likely to help executives by pushing for higher compensations in hope of being rewarded with more consultants services with the company as such firms that hire compensation consultants are more likely to have higher CEO compensation levels than those that have not hired a consultant (Voulgaris, et al. 2010) (Goh & Gupta, 2010). However, contrary to the study of Murphy & Sandino 2010, some scholars found that the potential conflict of interest between the firm and consultant is not a primary driver of excessive CEO pay. Their explanation is that opposing incentives to maintain consultants’ credibility or safeguards put in place by compensation committees limit actions taken with regard to cross-selling incentives (Cadman, et al. , 2010). Secondly, consultant fees can be substantial; thus, the company should weigh the costs/benefits to determine whether hiring a consultant is appropriate. Thus, in my view, compensation consultants may not be part of agency problems but rather a solution to the problem of designing an optimal executive pay contract that aligns the interests of both the employee and employer if the firm can strengthen and promote transparency in its hiring process to maximize shareholder’s values.

Social Stratification - Free Essay Example

Sample details Pages: 4 Words: 1163 Downloads: 4 Date added: 2017/09/15 Category Advertising Essay Did you like this example? Q1A. The question of the inevitability of social stratification is one of the fundamental bases of the theories of Kingsley Davis and Wilbert Moore. Davis and Moore (1945) argue that as long as there is division of labor in the society, and that there are variability in the roles with varying degrees of importance, stratification will occur. Don’t waste time! Our writers will create an original "Social Stratification" essay for you Create order There is a significant difference in the wages of CEO’s and a minimum wage earner because according to the theory, there is a functional necessity of providing different rewards for different positions in the society in accordance to an individual’s abilities. Because not everyone is qualified for specific positions or roles set by the society, there is a need to fill them by making sure that the right people are motivated enough to find ways by which they can fill these certain positions. The theory established by Davis and Moore shows that social stratification, aside from being inevitable, is highly functional in nature. Stratification is an instrument that the society utilizes to attract the right people for the right roles set by the society. The situation regarding the increasing wage gap between the CEO and the minimum wage earners can be explained by the functional needs to get the right people motivated to do to right job through stratification. Q1B. There is empirical evidence showing that women earn significantly less than men. Davis and Moore would probably look at this situation emphasizing that gender is a central aspect in the social stratification. It is functional in a sense that men are physically more competent than women, and therefore giving them more incentives to perform these positions would result to the improvement of productivity. Society has set different roles for different genders and usually, the roles that are assigned to women are those that would allow them in work inside the house taking care of children for instance. Though this may also be considered as a full time job, there is no monetary equivalence to this kind of occupation. In contrast to this, men are expected to earn the income for their family to continue subsistence. The main function of inequality is due to the very fact that not all roles in the society have the same extent of difficulty. Because there is a societal notion that the responsibility assigned to men and women are not the same, social stratification according to gender exists, hence the difference in wage rates. Q2A Melvin Tulmin made a response to the theory created by Davis and Moore. He claims that there are several loopholes that the functional theories of Davis and Moore were not able to address, such defining the term â€Å"functionally important†. The situation involving the wage gap between the CEO and the minimum wage earner can be explained by Tulmin’s criticism to the theories of the previous sociologists. For Tulmin, the system of social stratification does not function as the motivating force to attract the right people to the right positions but to force the acceptance of ideologies that govern the society. The increasing gap between the earnings of the CEO and the minimum wage earners can be explained by the fact that there is indeed an existing barrier between the two types of people mentioned above. This would lead the society to accept the ideology that the former is indeed superior as compared to the latter. Social stratification systems functions to maintain the status quo in the society. Because of the existing social stratification, a large segment of the society are not even given the opportunity to undergo the training so the selective function of social stratification systems as argued by Davis and Moore is defeated. Q2B In the points of criticism of Tulmin out against the functional theory of Davis and Moore, it was highlighted that systems of social stratification has the function to regulate the discovery of the full potential of talents available in the society. In this case, we can say that the women are not given enough opportunities as compared to their male counterparts because of the limited resources that are provided to them, which would lead the society to accept the ideology that women are certainly inferior to men. Social stratification systems serve as a tool to distribute positive self images of individual in the certain category concerned. The wage gap between male and female could be explained by Tulmin’s thesis that â€Å"Social stratification systems function to provide the elite with the political power necessary to procure acceptance and dominance of an ideology which rationalizes the status quo, whatever it may be, as logical, natural and morally right. (Tulmin, 1953) This means that there is a prevailing status quo that has to be preserved in order for the society to function according to preference of the dominant stratum, which in this case is the male. Q3A Karl Marx is one of the most influential political thinkers of the nineteenth century, who claimed that exploitation is an inherent characteristic of the capitalist system. If he were to look at the situation involving the CEO and the minimum wage earners, he would probably conclude that this phenomenon is brought about b y the capitalist society prevailing the United States. He would associate the CEO to the â€Å"bourgeoisie,† the class who own the means of production, while the minimum wage earners are the â€Å"proletariat† the group of individuals who sell their labor but do not possess the means of production. In a capitalist system, profit is earned by paying the workers less than the full value of their output. The identity of each social class is a function of their contribution to the means of production. In each social class, there exists an ideology and consciousness among the members of the society that is shaped by the material conditions and their relationship to the means of production. Using Karl Marx’s theory, we can conclude that this situation is an effect of the capitalist system. Q3B The difference in the wage earned by male and female represents a power relation between the genders favoring the former. Women are oppressed in the society due to the notion of private property which then leads to economic inequality, and ultimately social relations between the two genders. The capitalist system prevails in a patriarchal society. According to a socialist Azizah Al-Hibri, capitalism is an advanced form of patriarchy. Roberts, 1998) In this Marxist-Feminist point of view, we can conclude that the significant difference between the wages of men and women is a tool for the patriarchal society to stay in power, since social classes is ultimately defined by its material conditions. Gender inequality exists because it serves the interest of the capital or the ruling class. Reference List Rhonda F. Levine, ed. (1998) Social Class and Stratification: Classical Stat ements and Theoretical Debates. New York: Rowman and Littlefield Roberts, Carey. (1998) Karl Marx and the Gender Wage Gap. Retrieved June 21, 2008 from iFeminist. com. Available online at:

Benefits Of Using The Arts - 896 Words

Benefits of Using the Arts in the K-12 Grade Curriculum Author s Name Institutional Affiliation The study of the arts belongs in every K-12 classroom. Participation in the arts is correlated with increases in cognitive capacity, reading, mathematics, critical thinking, and verbal skill (Lynch, n.d.). Artwork learning can additionally enhance focus, motivation, trust, and teamwork. Arts programming in schools helps close a gap that s left many a youngster behind and acts as an equalizer of sorts. Children of wealthy parents are exposed to the arts whereas the children from low-income families do not have the same exposure. The research behind this paper will show that art belongs in the K-12 curricula in schools since education is fundamental to a child’s development. Almost everyone loves music, whether by playing an instrument, singing, or listening to it. Schools really make a mistake when they cut theirs arts budget dues to financial restraints. The study of art is equally as valuable. Take music for instance; instrumental training, musical training, creates long lasting changes in brain structure and motor skills. The earlier a child begins instrumental training, the more powerful the link involving the left and right hemispheres of the mind (Boyd, 2014). These transforms last into adulthood and therefore are proven to affect the ability convey and to listen as an adult. Music education prepares students to understand academic subjects in school. MusicShow MoreRelatedChelsie Vogel. Assignment: Sentence Outline. Trs 3312 Sec1049 Words   |  5 PagesChelsie Vogel ASSIGNMENT: Sentence Outline TRS 3312 SEC 700 Title: Art Healing: How Art Therapy Benefits Children of Trauma Topic: Using art to heal children who have experienced trauma Specific Purpose: To help children of trauma express, communicate, and benefit from art integrated activities and therapy. 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