Business Internalization Assignment Exploring Strategies Businesses Have Used To Expand In To The International Market
Task: On this business internalization assignment, you are the new Managing Director, a Swedish company providing telecommunication services. You are a little disturbed with the operations which are being blocked and supported through some unavoidable measures in some countries.
(a) Discuss FOUR (4) different types of questionable payment as they are practiced ¡n three different countries in the world. Discuss the common dilemma faced by many multinational companies regarding this issue.
(b) As the new Managing Director, should companies participate in paying bribes especially in countries where such practices are common and acceptable Explain your stand using FOUR (4) main arguments.
business internalization assignment Personal Reflections on learning
In 200-300 words, reflect on the impact of this assignment on your understanding of the industry competition, highlighting the key role of strategic leadership in sustaining organic growth through value creation.
Key Drivers (Principles &values) & business expansion explored on this business internalization assignment There are some conditions to be followed for the international companies to expand their businesses. It is more viable and feasible for the larger companies to maintain their cash-flow, sales and brand value. Considering the local situation and abiding by the rules is one vital drive(Ameen & Ahmad, 2017). The companies have to prioritize the socio-cultural sides of local customers. The managers and the employees have to be skilled enough to efficiently handle the risk-factors. The organizational structure needs to be flexible. Last but not the least; the financial resources have to be strong.
Political & legal Environment
The international companies covered on this business internalization assignment have to abide by the political regulations and policies of the respective countries. The basic contract with the governments of the countries needs to be fairly fixed. If they can manage some funds or back up from the governments, running the company becomes easier(Bonini & Alkan, 2012). Before establishing a branch in a country, the companies need to be aware of the legal procedures and the policies. If the policies mention any financial deal, the companies have to be able to agree with them. Else, other consequences may arise.
Considering the local situation is the best way to build a flexible and comfortable workplace. The international companies will definitely have employees from various socio-cultural backgrounds(Dechawatanapaisal, 2018). The highly inclusive as well as comfortable relationship with the colleagues and the managing or administrative body will be a good way to form a flexible organizational culture. The Workplaces cannot have any bias towards religion, race or creed. They have to respect each other’s position, language, designation and etcetera. There shall not be any gender stereotype.
Competitive environment & marketplace (direct & indirect)
The big international companies have many competitors as identified on this business internalization assignment. They are bound to be competitive in the market to survive(Douglas & Wind, 1987). There will be the risk of the new entrants, who may grab the market. The frequent innovative products or services may help the companies. They have to keep up with the brand value. Prioritizing the customers is the foremost responsibility to reach this goal. The companies need to be updated regarding the process or works of the other existing companies to hold on to the market.
2. Corruption Vs Strategic Decision-Making (Porter 5 forces- focus on supplier bargaining power)
Corruption in a company is harmful for the stakeholders’ interests. The administration, decision and policy-makers, employees and the managing body may fail to understand the impact of the situation. The decisions may not work or the impacts may not be understood in such cases. The suppliers bargaining force can be applied to overcome such situation(Fabbri & Klapper, 2016). Or it may provide with a decision that identifies the impact of the decisions the companies make. The bargaining power helps to understand the level of pressure that the supplier can put on the companies. Then the decision-making process shall become easier for the multinational companies.
3. Strategy context within which companies operates—Leadership Characteristics determines on firm’s performance
Skilled and efficient leaders are able to influence the strategic decisions of the company. It is also possible for them to get hold on the organizational activities. The cognitive development of the managers makes them strategic as well as empathetic leaders. The managers or leaders who are able to motivate the employees and set a perfect vision are the good leaders. It helps the companies to excel in their work(Harrigan, 2017). The good managers are also efficient in client-dealing. Following the strategies as well as convincing the clients with that is quite a skillful task. Their perception and evaluation of the subjects are tending to be highly effective. The most vital skill is the communication skill. A good leader is the one who can get the job done by communicating. It can be with the clients or the employees. A good communication platform makes the work environment flexible and inclusive.
4. Four Different Types of questionable Payments (America, China, India)
a. Joint Ventures
When two or more parties start a business, it is called a joint venture. They agree to combine their resources to achieve a common target. It could be just a project activity or an entire business. The investors are equally responsible for the loss or the profits of the company. If they have different amounts of investments, their profit will depend on that(Kwak, et al., 2019). There has to be a mutual contract among all of the owners of the company. Joint ventures can make partnership between small and large companies. It is profitable for both the parties in all the ways. It helps the smaller companies to take up the big deals. These ventures also lead to corruption due to various market issues and rivalry among the industries. The legal structures are to be strictly followed in this case to save the company from any political, social or economic issue.
b. Political Donations
Involving the political parties into the business may not be a good thing. It can result in many negative ways. The political donations involve the basic amount of money from the public wallet. Using public money in the corporate or multinational industries isn’t a fair deal. It can come with various demands which may affect the company goal(Lin, et al., 2017). On the opposite side, involving political power can raise the position of the certain designation holders within the company. The power-game leads to high corruptions most of the times. In these cases the political parties will have various demands from the company and may want to reform which is not a good sign for the companies(Padli, et al., 2019). Influential political parties can also impact negatively by dividing the internal members of the company through different strategies. If a company accepts or asks for donations from the political parties, the risk of corruption remains in that.
c. Excessive hospitality and gifting
The hospitality and gift giving is definitely a good strategy to maintain business relationships. Free gifts with the products or serving meal to the suppliers are good strategies. It builds a good reputation in the market as well as in the minds of the customers. This can be a good marketing strategy of the organizations. But the excess hospitality is not always good for the health of the organizations(Pizzetti, et al., 2019). The fine line between the bribe and the gift as identified on this business internalization assignment is not always visible for the receiving parties. Understanding the point of the gift is very necessary to evaluate the strategy behind the gift. If there is a favor related to the gift, it is not a gift. If the stakeholders understand the difference between a gift and bribe, the company reputation could be ruined for life.
Employment Contracts (Nepotism)
The international companies should not encourage nepotism in order to proceed with the employment contracts. It is not always successful either. The skills and experience should be prioritizing while recruiting an employee(Reddy, 1991). Evaluating the influential background of the employees is not a fair deal. It may affect the company protocols and goals. It can also hamper the reputation in the market.
5. Recommendations/ Best practices
Diversity in the management team- Multi-racial, ethnicity, genders equality
An effective and skillful management team is necessary for the international companies to survive in the global market. The international companies generally have people belonging to the different socio-cultural background. Sharing respect and empathy between each other is the most important aspect of the organizational culture. Showing respect towards all the communities and their languages can make a good management team and a flexible workplace.
Transparency & Fairness—Online bidding systems
The leaders of the large international companies have to be transparent and honest to their employees. They have to be gender neutral as well as fair with their deals for any decision within the company(Saenz & Brown, 2018). All the employees should be treated equally and neutrally. Bias towards anything can hamper the flexible organizational structure.
Singapore—role model for the East
Singapore is economic and social hub in Asia. The country has numbers of industries and multinational companies. It maintains fair relationships with the other countries and share good deals in the organizations. The inclusive and multi-cultural work environment has brought this height of success in the country.
This part of this business internalization assignment discusses the different problematic payment methods in the multinational companies. It focuses on globalization and its characteristics. The effective leadership and strategy –making is also discussed in the assignment.
B. 1. Global Business Sustainability & Firm’s Performance
The relationship between the international corporate performances and sustainability of the globalization of companies involves the type of potential operations involving various benefits. The global business sustainability enhances the performance of the firm by initiating an international economic market of compliances(Achtenhagen, et al., 2017). The international market of the companies performs high level of standardization over their strengths for facing a hard time in reducing the possible concerns of multiple regulations or the issues of coordination in various countries. The performance ratings are formulated on the basis of social index factor and financial criteria of the globalized market of economy of the international companies.
2. Strategic Leadership, Brand, Reputation, Perception & Ethics
In order to develop in all terms, the company must incorporate a strategic leadership within the management body in channelizing its resources among the organizational structures properly. The appropriate leadership supported by a strategic management planning will eventually bring out an overall productivity and expansion of the business growth(Adams, 2020). It will lead to the brand image of the company to flourish along with its reputation. More customers or clients will get enticed by such strategically planning of the corporate organizations leading to the growth of the brands promoted by the company. In doing so, the company must have an ethical perception or some regulations falling under the ethical code of conduct creating certain norms and principles(Khan, et al., 2017). The sustainability of the economy as well as the environment must be maintained by the strategically leadership within the company’s management team for avoiding any kind of harm to the people belonging to the greater environmental aspects.
3. (Business growth & change—learning as an entrepreneur)
An entrepreneur must adapt to certain changes for improving the company’s business processes towards a positive change. The changes implemented by the entrepreneur indicate business growth in terms of better abilities of problem-solving. It ensures a systematic and technical strategic planning for the operation processes that are required to go on within the managements system of the company or organization. More customers or clients will get enticed by such strategically planning of the corporate organizations leading to the growth of the brands promoted by the company(Cusumano, et al., 2019). It emphasizes selection of new opportunities and introducing the risk management factor.
The entrepreneurs should consider the globalization of their company in terms of international market of economy along with a strategic planning of leadership by ensuring customer satisfaction as well as employee satisfaction(Hou, et al., 2017). It also includes an ethical maintenance of the business performances enhancing the sustainable and positive changes. It also ensures proper establishment of relationships with their investors and suppliers.
4. Should companies participate in paying bribes in countries where such practices are common and acceptable
a. I believe we should not participate in any questionable payments.
Argument #1 Competitive Advantage with R&D and disruptive innovation
The central driving force of the business processes are innovation. It enables growth and sustainable development in both the periods of long and short run. The unique product changing of today's business processes, bring out future success in terms of the outcome(Trubnikov & Trubnikova, 2019). The competition must change by bringing in necessary requirements to find a new way of establishing business growth and profitability. The sustainable revenue in terms of organic profit growth within corporate organizations improves continuously by the margins. Innovation is not something only to be dealt by the department of R&D but it drives the business processes through key stakeholders, decision making and appropriate leadership abilities of the organization. Innovation is not chaotic. It is creative. The systematic way for transforming into commercialized approaches of business influences the critical goal of choices. Some critical goals establish transparency in emphasizing strategy and winning alignment for overall good of people.
Argument #2 Company collapses due to corruption
Corporate companies may collapse due to corruption. People must get alarmed by corporate choices of wrong actions as it became an occurrence following the routine. Functioning of capitalism is impossible with lacking trust. The financial parades are accused of booting from the suite of executive, misdeeds, occasional jail trips, and undermining of essential components. Corruption and fraudulent behavior are not easy to measure in a precise way(Veleva, 2018). The perpetrators hide their crime in a very efficient way so that they do not come in front of the eyes of the public. The wrongdoing in corporate structure runs in a cyclical manner. Lucrative fraudulent behavior is easy to hide away within the economic prosperity of general booms. The rule bending temptation is higher than the upswing of economy. Executives in such rank possess better creativity for keeping the profit oriented streams to get into the business processes.
Argument #3 Corruption kills the nation’s growth and economy
Where the principal follows high corruption of the elites, it introduces lack of concern regarding the rest of the population within the country. Moreover corruption takes place as the power is abused for individual benefits and it works against the good of public. This business internalizationassignment also identified that Corruption interrupts the link between the decision making of groups and power of people in influencing those decisions. The system undergoes the voting and democratic participation within the market economy of business(UNG, et al., 2016). High corruption level introduces a complex structure of political misjudgment. With the fear of suspicion, the elites invest into the popular system of voting within a civil society for promoting participation in the debates of public for the crumbling of the cultural democratic structure. Argument #4 Strong Organization system translates into great brand values.
Fair state of integrity, play, objectivity, and transparency in planning and actions,the success of the organization lies in the curbing of corruption in order to achieve an overall development in terms of sustainability. There are mechanisms for operating the integrated culture representing a corruption in a blackslide of a previous incident(Yenidoan & encan, 2017). The factors of overseeing and monitoring in terms of positive reinforcement of integrity and holding of professionalism account violation of the ethical choices within a corporate organization or company. In order to create successful ethical base within an organization, the management must function to demand accountability from the privatized sectors.
5. Difference between Facilitating payments and bribes
The differences between the facilitating payments and bribes include the proper definitions of the two terms and their proper incorporation within the company. The bribes are defined as the money that is given as a gift to some person of company for changing their performance activities and behaviors as a service or act that is not a part of the company’s authorized or legal actions(Mirza & Kanwal, 2017). Whereas on the other side, facilitating payments are those flow of money that are used for speeding up the task processes within the normal range of the authority structure of the company or the organization.
The research paper introduces several techniques and strategic methods of planning that are to be implemented by a particular corporate organization for establishing their market expansion by large amount of productivity and profit maximization. The reading provides a base for further research studies following the orientation of the particular topic and accumulates the idea on business growth and expansion.
The research paper focuses on the various strategic methods of planning within the management functioning of the corporate organizations in order to establish a proper sustainable growth of the business processes. It emphasizes on the expansion of the operational processes through incorporating various factors of development within the company or organization.
Self-reflective on the impact of the assignment. The key role of strategic leadership.
This business internalization assignment emphasizes on the various strategic methods of the business management structure. It discusses the strategic methods of planning within the management functioning of the corporate organizations in order to establish a proper sustainable growth of the business processes. It emphasizes the expression of the operational process in effective and efficient business structure. Considering the local situation and abiding by the rules is one vital drive. The companies have to prioritize the socio-cultural sides of local customers. The managers and the employees have to be skilled enough to efficiently handle the risk-. The managers or leaders who are able to motivate the employees and set a perfect vision are the good leaders. It helps the companies to excel in their work.
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