Solved Assignment July Dec 2016

MS-97 (Sample Copy)

Course Code
Course Title
Assignment Code
Assignment Coverage

MS - 97
International Business
97/TMA/SEM - II/2016
All Blocks

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Note: Attempt all the questions and submit this assignment on or before 31st October, 2016 to the
coordinator of your study centre. Students registered for the Course MS-97 for July 2015 should attempt
questions from Part-I and those registered for July 2016 should attempt questions from part II.

Part - II
1. Explain the benefits and importance of International Business. Identify the challenges in International
Business giving examples.
Todays global markets offer even the smallest of businesses the opportunity to sell internationally. This changes the risk
landscape for small businesses, --------------------------------------------------------------------------------------------------------------------------- if a local market falters. You can position your small business for success by adapting to the global marketplace.
If you have products that dont sell well --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------you market globally.
Following are the benefits of international business:
1.

Earning valuable -----------------: A country is able to earn ----------------------------------------------------------------------------------------- its goods to other countries.

2.

Division of labor: International -----------------------------------------------------------------------------------------------------------------------------------, quality goods for which it has maximum advantage.

3.

Optimum utilization of available resources: International business reduces waste of national resources. It helps
each country to make ------------------------------------------------------------------------- it has maximum advantage.

4.

Increase in the standard of living of people: Sale of surplus production of one country to another country leads to
increase in the ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------- of living of the people of the exporting country.

5.

Benefits to consumers: Consumers are also benefited from international business. A variety of goods of better
quality is --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- as they have a good scope of choice of products.

6.

Encouragement to industrialization: Exchange of technological know-how enables underdeveloped and

developing countries to establish new industries with the assistance of foreign aid. Thus, international business
helps in the development of industry.

7.

International peace and harmony: International business removes rivalry between different countries and
promotes international --------------------------------------------------------------------------------------- and good faith.

8.

Cultural development: International ------------------------------------------------------------------------------------------------ greater diversities. A better way of life, dress, food, etc. can be adopted form other countries.

1.

Economies of large-scale production: International ---------------------------------------------------------------------------- extensive demand. All the countries of the world can obtain the advantages of large-scale production.

2.

Stability in prices of products: International ------------------------------------------------------------------------------------------------- to stabilization of prices of products throughout the world.

3.

Widening the market for products: ---------------------------------------------------------------------------------. With the

increase in the scale of operation, the profit of the business increases.

4.

Advantageous in emergencies: -----------------------------------------------------------------------------. In case of natural

calamity, goods can be imported to meet necessaries.

5.

Creating employment opportunities: International business boosts employment opportunities in an export------------------------------------------------------------------------------------------------------------------ business.

6.

Increase in Government revenue: The Government imposes import and export duties for this trade. Thus,
Government is able to earn a great deal of revenue from international business.

7.

Protection From National Trends and Events

When you market to several countries, you are not as vulnerable to events in any one country. For example----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------by focusing your sales efforts in another part of the world.
8.

Learning New Methods

When you do business in another country, you learn new ways of doing things. You can apply this new knowledge to
other markets. For example, --------------------------------------------------------------------------------------------------------------------- -- or "hard" -- water. This product can now be marketed to parts of the U.S. that have similar water problems.
9.

Other advantages:

Effective -------------------------------------------------------------

Improvement --------------------------------------------------- systems.

Elimination -----------------------------------------------------------, etc.

A flowchart given below will give at a glance idea about advantages of international business.

ExampleAmerican multinational corporations have been in the forefront of developing international brands that cut across local
cultural differences. Companies such as -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------emerging markets become more important to international marketing, campaigns targeted to specific cultures will
appear more frequently.

Case ExampleGoogle is a company that provides numerous services for consumers and businesses. It is most often recognized as a search
engine. It incorporates a number of online ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

--------------------------------------------------------------------------------------------------------------------------------The speed and relevancy

of the Google search engine and its results are both additional reasons for its overwhelming success.
Google has been in business since 1998. It was founded by two Stanford graduate students who originally named the search
engine BackRub. They started the company in Menlo Park, CA out of a garage. In its first year it was labeled as one of the
"Top 100 Web sites and Search Engines for 1998" by PC Magazine.
The company differs from its competition in search results, tools and features, and design. Unlike other search engine
companies, Google also engages heavily in -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------Chrome laptops. Another
famous Google product, which also contributes to the company's success, is the Android operating system. Android powers a
large percentage of the tablet computers on the market, and more cell phones around the world than Apple's iPhone. Google
has also acquired several businesses such as Zagat and Motorola Mobility.
Case Example 2Coca-Cola
The original Coca Cola was invented in 1886 by a pharmacist named John Pemberton. The company was not incorporated,
however, until 1892 by another pharmacist named -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------drinks. In fact, in
addition to Coca-Cola, there are also 500 additional brands, including Sprite, Tab, Nestea, Minute Maid, Dasani water, and
Powerade, that fall beneath the umbrella of the Coca-Cola brand.
The company's success is largely due to branding and -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------,

the

highly

successful marketing of the Coca-Cola brand is the main factor which makes it stand apart from other beverage companies.

2. Explain the various trade blocs and discuss some of the major trade blocks in the world.
A trade bloc is a type of inter governmental agreement, often part of a regional intergovernmental organization, where
regional barriers to trade, (tariffs and non-tariff barriers) are reduced or eliminated among the participating states.
Historic economic blocs include the ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------more than 50% of all world commerce was conducted within regional trade blocs.
Economist Jeffrey J. Scott of the Peterson Institute for International Economics notes that members of successful trade blocs
usually share four common traits: similar levels -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

--------------------level of economic integration, trade blocs can fall into different categories, such as: preferential trading
areas, free trade areas, customs unions, common markets and economic and monetary unions.
The world is increasingly dividing into trade blocs. ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------nations, have also sought to create looser trade groupings to foster their interests.
The formation of free trade zones and trade blocs is one of the major issues facing the world trading system - whether it will
lead to increased protectionism, or whether the trade blocs will promote trade liberalization. A number of the main trade
blocs are described below.
The European Union
Trade Flow: exports $813bn, imports $801bn
The EU has become the most powerful trading ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------in agriculture which limits agricultural exports from the other countries.

-------------------

Greece

-----------------

Belgium

-------------

Portugal

--------------------

Italy

----------------

Finland

-------------------

Sweden

-----------------

Netherlands

---------------------

North American Free Trade Agreement (NAFTA)

Trade Flow: exports $1,017bn, imports $1,277bn
The United States has linked with ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------and investment, but US unions and environmental groups argue that the safeguards are too weak.
Members: Canada, Mexico, United States
The Cairns Group
Trade Flow: exports $577bn, imports $549bn
The Cairns group of agricultural exporting nations was -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------, Brazil and Argentina are other leading members.
Members

Argentina
Australia
Brazil
Canada
Chile

Columbia
Fiji
Indonesia
Malaysia
New Zealand

Paraguay
Philippines
South Africa
Thailand
Uruguay

 Asia-Pacific Economic Cooperation forum (APEC)

Trade Flow: exports $2,592bn, imports $2,581bn
The Asia-Pacific Economic Cooperation -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------Korea and Indonesia.
Members

---------------Brunei
Canada
---------------China
----------------

-----------------Japan
---------------Malaysia
Mexico
-----------------

Papua New Guinea

Peru
----------------------------Singapore
---------------

-------------United States
--------------

European Free Trade Association (EFTA)

It was established by the Stockholm Convention in 1960. ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------and Liechtenstein. As the EU expands its likely that the number of EFTA members will continue
to fall.
European Economic Area (EEA)
Created by the signing of a treaty in Oporto in ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------are relations with other countries (trading and development), fiscal policy, economic and monetary union
(EMU) and the common agricultural policy (CAP).

Other regional trade blocks, regional economic partnerships and free trade associations include the
following:
ANDEAN (Andean Community Countries) ------------------------------------------, and Peru.
Associate Members: ---------------------------------------------------, and Uruguay.
Observer Countries: Mexico and ---------------------------------------------

BSEC (Organization of the Black Sea Economic Cooperation) -------------------------------------------, Georgia, Hellenic
Republic, Moldova, ------------------------------------------------------- Serbia, Turkey, -----------------------------------.

CARICOM (Caribbean Community) -------------------------------------------, Barbados, Belize, Dominica, Grenada,

Guyana, Haiti, ----------------------------------------, Saint Lucia, Saint Vincent & -------------------------------- & Tobago.
---------------------------: Anguilla, Bermuda, --------------------------------------, and Turks & Caicos Islands.

CIS (-------------------------------------------- States)

Armenia, --------------------------------------, Kyrgyz, Moldova, --------------------------------------------, Ukraine, and
---------------------------.

COMESA (------------------------------------------ and Southern Africa)

Burundi, Comoros, --------------------------------------------, Egypt, Eritrea, -------------------------------- Libya,
Madagascar, Malawi, ------------------------------------------, Sudan, Swaziland, Uganda, ----------------------------------ECOWAS (Economic ------------------------------------------------- States)
Benin, Burkina -------------------, Guinea, Guinea Bissau, Ivory ------------------------ Nigeria, Senegal, ----------------- Togo.

Eurasian Economic Union - --------------------------------, Belarus, and Armenia.

EFTA (---------------------------------e Association) Iceland, Liechtenstein, ------------------------------------------.

GAFTA (Greater Arab Free Trade Area) Algeria-----------------------------, Kuwait, ----------------------------------Libya,

Morocco, ----------------------------------------------------, Syria, Tunisia, United ---------------------------------------------- and
Yemen. (No official Website found.)

GCC (Gulf Cooperation Council for the Arab States of the Gulf) ------------------------------------------------, Saudi
Arabia, and the ---------------------------------------- (UAE).

Pacific Community comprised of the 22 Pacific island countries and territories of American Samoa, Cook
Islands, Fiji Islands----------------------------------, Marshall Islands, ------------------------------------------------------Niue, ------------------------------- Palau, Papua New -------------------------------------, Samoa, Solomon Islands, Tokelau,
Tonga, Tuvalu, Vanuatu, ----------------------------------- countries of Australia, France, -------------------------------------the United States of America.

--------------------------------------------- for Regional Cooperation)

Afghanistan, ---------------------------------------------------, Pakistan, and Sri Lanka.

SADC (Southern Africa Development Community)

Angola, --------------------------------------------------------------, Madagascar, Malawi, Mauritius, Mozambique,
Namibia, Seychelles, South Africa, ----------------------------------------------------------- Zimbabwe.

3. Describe the concept of and need for Strategic Alliances. Discuss the comprehensive model of Strategic
Alliances and Networks.
Concept of and need for Strategic AlliancesA strategic alliance (also see strategic partnership) is an ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------desire to achieve long-term win benefits and innovation based on mutually desired outcomes.

This form of cooperation lies between mergers and acquisitions and organic growth. Strategic alliances occurs when two or
more organizations join together to pursue mutual benefits.
Partners may provide ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- (access to
knowledge and expertise), economic specialization, shared expenses and shared risk.
Strategic alliances have emerged to solve many company ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------strategic supplier relationships.
BENEFITS
For companies there are many reasons to enter a Strategic Alliance:

Shared risk: The ---------------------------------------------------------------------------------------------. Strategic Alliances

probably work best if the companies portfolio complement each other, but do not directly compete.

--------------------------------------: Sharing skills (distribution, marketing, management), brands, market knowledge,

technical know-how and assets leads -------------------------------------------------------------------------------------------------------------------------- than the separated single resources in the particular company.

Opportunities ----------------------: Using the partners distribution networks in combination with taking advantage
of a good brand image can help a -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------a company, that means
that a firm often cannot grow and extend itself fast enough without expertise and support from partners

Speed to market: ------------------------------------------------ and the right partner can help to distinctly improve this.

Complexity: As complexity increases, it --------------------------------------------------------------------------------------------------------- company has to face, so pooling of expertise and knowledge can help to best serve customers.

Innovation: The parties in an alliance can jointly determine their mutual desired outcomes and craft a
collaborative contract ------------------------------------------------------------------------------.

Costs: ------------------------------------------------------------------------------------- like research & development.

----------------------------------------------: Partners in a Strategic Alliance can help each other by giving access to
resources, (personnel, finances, technology) which enable the partner to produce its products in a higher quality or more
cost efficient way.

Access to target markets: ---------------------------------------------------------------------------------------------------------------------------- resources are exploited, which makes it hard for foreign companies to enter these markets alone.

Economies of Scale: When companies --------------------------------------------------------------------------- Cooperating

with appropriate strategies also allows smaller enterprises to work together and to compete against large competitors.

Comprehensive model of Strategic Alliances and NetworksTypologySome types of strategic alliances include:

Horizontal strategic alliances, which are formed ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------exploitable". This includes extending common transportation networks, their warehouse infrastructure and the
ability to provide more complex service packages by combining resources. On the other hand, they can "access
intangible resources, which are not directly exploitable". This includes know-how and information and, in turn,
innovativeness.

Vertical strategic alliances, which describe ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------product design and distribution decisions. An example would be the close relation between car manufacturers and their
suppliers.

Intersectional alliances are partnerships where the involved firms are neither connected by a vertical chain, nor
work in the same business area, which means that they normally would not get in touch with each other and have totally
different markets and know-how.

Joint ventures, in which two or more ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------long-term

business relationship, while control, revenues and risks are shared according to their capital contribution.

Equity alliances, which are formed when one ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------which leads to the fact that the will to competition between these firms is reduced. In addition this makes take-overs by
other companies more difficult.

Non-equity strategic alliances, which ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------alliance which is not

contractually designated, which appears mostly among smaller enterprises, or the alliance can be set by a contract.

Michael Porter and Mark Fuller, founding members of the Monitor Group (now Monitor Deloitte), draw a distinction among
types of strategic alliances according to their purposes:

Technology development alliances, --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------joint development agreements.

Operations and logistics alliances, where partners either share the costs of implementing new manufacturing or
production facilities, or utilize ------------------------------------------------------------------------- company.

Marketing, sales and service strategic alliances, in which companies take advantage of the existing marketing ---------------------------------------------------------------------------------------------- to provide easier access to these markets.

Multiple activity alliance, which connect several of the described types of alliances. Marketing alliances most
often operate as single -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- can be combined in a multiple activity alliance.

Hierarchical relations: through ---------------------------------------------------------------------------------------------------------------------------------------------------- coordinates actions by the ownership rights mechanism.

Subcontractor networks: inter-linked firms where a subcontractor negotiates its suppliers long-term prices,
production runs, and delivery schedules.

JOINT VENTURE-BASED STRATEGIC ALLIANCES.

A strategic alliance is often, but not always--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------be in equal or unequal shares, and may provide for changes in ownership of shares.
The most common kind is the joint venture through a subsidiary. In such an instance, two entities create a third separate
entity with its own legal existence. For example, --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Beijing Jeep.
Another is the joint venture by acquisition. It is created when one business purchases all or part of the shares of another.
For example, in the 1990s, the Lear Corp. acquired interior components producer Masland Corp.
A third is the joint venture by merger. This ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------A and B are dissolved. It should be noted, however, that this legal mechanism is seldom used for
international joint ventures.
STRATEGIC ALLIANCES NOT BASED ON JOINT VENTURES.

In general, a strategic alliance that is not in the form of a joint venture is ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ and they terminated the agreement.
LINKAGES THAT ARE NOT STRATEGIC ALLIANCES.

It is important to note that not all linkages between national or international businesses are strategic alliances. Examples of
arrangements that do not create strategic alliances include licensing, exporting, franchising, and foreign direct investment
agreements.
In strategic alliances based on -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------requires a high degree of cooperation.
A second mechanism is through assignment of management to one party. In such arrangements, the responsibility is usually
assigned to the partner that owns the majority of the stock in the joint venture.
A third mechanism is through -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------. The firms that own the joint venture
do not get involved in day-to-day operations.

4. Discuss the strategic issues in International Operations Management.

International operations management is -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------or

new developments in

technology, consumer tastes and preferences, pricing levels, competitive threats, and so forth.
The Strategic Context of International Operations Management: International operations management must be closely
associated with a firm's strategy. In fact, the way in which a firm structures and manages its operations function is influenced
by its strategy. A firm's strategy drives several operations management activities including location, facility design, and how
logistics are managed.
International operations management is a -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------management

function.

Additionally, the firm must make a number of location-related decisions such as where to build a plant or sales office. In
addition, a firm must make decisions regarding transportation choices and inventory levels.
International operations management decisions, processes, and issues involving the creation of intangible services is referred
to as service operations management.
Issues of International Operations Management:
Operations management is continually evolving. Operations management is the set of activities that create value in the form
of goods and services by transforming inputs into outputs. Market globalization, technological development, the overcoming
of international trade barriers and the boom in some undeveloped economies are modifying the economic structure of many
countries and pushing companies to change their ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- internationalization
processes are not limiting country-specific aspects but rather emphasising them. There are many country-specific cultural,
legislative and infrastructural aspects that can influence future choices.
Production management: There are four issues related to this process, they are as follows:
Supply Chain Management and Vertical Integration.
Supply chain management is an array of processes and steps a firm uses to acquire the various resources it needs to create its
products and services. Supply chain management is usually seen as a strategic issue because of its implications for product
cost, product quality, and internal demands for capital. Vertical integration is extent to which a firm either delivers its own
resources or obtains them from other sources.

In order to enter a foreign market, a --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

------------------------------------------------------------------------------------------------------------------------, or other resources into a foreign

country' (Root, 1987). There are several theoretical streams dealing with this choice, such as economic factors analysis,
transaction cost analysis, the OLI model and behavioural theory.
To summarize, International Operations Management is primarily a transformation-related activities of an international firm.
Language
Linguistic differences affect the way of ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------the same linguistic challenges in local communities where the majority of the population is, for example, Hispanic,
Chinese or Polish.
Culture
Culture determines the habits, holidays, ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------holiday. Cultural differences may also show up in local levels for small businesses.
Business Attitude
Information and knowledge about the ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------companies in their domestic market.
Technical Development
Differences among the technical development ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------or local community uses the Web as its primary source of information.

Other IssuesAs an organization develops plans and strategies to deal with the opportunities and challenges that arise in its particular
operating environment, it should design a system that is capable of producing quality services and goods in demanded
quantities in acceptable time frames.
DESIGNING THE SYSTEM Designing the ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

----------------------------------------------------------------------------------------------------------------------------------------------------------------------said Thomas S. Bateman and Carl P. Zeithaml in Management: Function and Strategy."This decision
addresses the question 'How will the product be made?' " Product development should be a cross-functional decisionmaking
process that relies on teamwork and communication to install the marketing, financial, and operating plans needed to
successfully launch a product.
Product design is a critical task because it ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------product quality and lower costs.
Process design describes how the product will be made. The process design decision has two major components: a technical
(or engineering) component and a scale economy (or business) component. The technical component includes selecting
equipment and selecting a sequence for various phases of operational production.
The scale economy or business component involves ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------support a dedicated production facility.
Facility design involves determining the capacity, location, and layout for the production acility. Capacity is a measure of an
organization's ability to provide the demanded services or goods in the quantity requested by the customer in a timely
manner. Capacity planning involves estimating demand, determining the capacity of facilities, and deciding how to change
the organization's capacity to respond to demand.
Facility location is the placement of a facility with ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------be taken under consideration.
Facility layout is the arrangement of the work space within a facility. It considers which departments or work areas should be
adjacent to one another so that the flow of product, information, and people can move quickly and efficiently through the
production system.
PLANNING THE SYSTEM Planning the system describes how management expects to utilize the existing resource base
created as a result of the production system design. One of the outcomes of this planning process may be to change the
system design to cope with environmental changes. For example, management may decide to increase or decrease capacity
to cope with changing demand, or rearrange layout to enhance efficiency.
Decisions made by production planners ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------on the other hand, is concerned with production planning for specific job orders (who will do the work, what
equipment will be used, which materials will be consumed, when the work will begin and end, and what mode of
transportation will be used to deliver the product when the order is completed).

MANAGING THE SYSTEM Managing the system involves working with people to encourage participation and improve
organizational performance. Participative management and teamwork are an essential part of successful operations, as are
leadership, training, and culture. In addition, material management and quality are two key areas of concern.
Material management includes ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------qualities of various suppliers.

5. What is the role of corporate philanthropy in corporate governance? Discuss citing examples.
Corporate philanthropy ranges from financial contributions to employees volunteering time on the clock. While philanthropy
costs the company, it also provides benefits for the company, community and employees. Understanding the significance of
corporate philanthropy helps your company justify the expense to upper management and investors.
Role of corporate philanthropy are as follows (With Examples)Companies engage in corporate philanthropy -------------------------------------------------------------------------------------------------------------------------------------------------- corporate giving decisions based on self-interest. This report provides practical
recommendations to companies and boards for ensuring the legitimacy of their corporate giving programs.

Through corporate philanthropy, organization --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------in any community, organizations can also use their business's name recognition to spearhead fundraising
efforts to support worthy causes.

Some companies just get it. ------------------------------------------------------------------------------------------------- so they

institute corporate giving programs that provide more funds, in more ways, to more organizations.
Two popular ----------------------------------------------------------------------- donate to nonprofits are:

1.

Matching gift programs ----------------------------------------------------------, thus doubling or tripling donations.

2.

Volunteer grant programs ------------------------------------------- for employee efforts at those nonprofits.

Like Tom Brady with a football, some companies make corporate giving look easy, and they accomplish great feats as if
doing so is simply in their nature. Below are five companies that deserve an MVP trophy for corporate philanthropy.

1. Apple
CEO Tim Cook became Apples head ------------------------------------------------------------------------------------------------------------------------ program to match employee donations. In the time since, Apple has matched over $25 million worth of
employee donations, resulting in more than $50 million for charities around the world.
In October 2014, Apple informed employees that it will expand its corporate giving program to include all countries in
which it has a ---------------------------------------------------------------------------------- in other nations. Apple also announced
that its volunteer grant program will give employees $25 per hour for their respective organizations.
Silicon Valley companies have been criticized for a ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------organizations or equivalent organizations are eligible to receive matching gifts.

2. Google
Normal companies dont offer ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------million in employee donations to over 9,000 organizations worldwide.
Googles community programs include:
1.

Bay Area Giving: Proud ----------------------------------------------------------------------------------------------------------has given over $60 million to Bay Area nonprofits over the past three years.

2.

Code for America: In an effort to provide better technological support for governments that are slow to embrace
technology, ------------------------------------------------------------------------------------- technological solutions.

3.

Roberta: Google ---------------------------------------------------------------------------------------------------------------------------------------, so they funded Germanys -----------------------------------------------------Analysis and Information

Systems to help them develop technology to program and control robots using a smartphone app.

4.

Programming Education Gathering: Google ------------------------------------------------------------------------------------------------- to provide a computer science education to more than 25,000 Japanese children.

5.

Raspberry Pi: A $1 million Google grant --------------------------------------------------------------------------------------------------------------------------. children who show exceptional enthusiasm for computer science.

3. Microsoft
In 1983, 200 Microsoft -------------------------------------------------------------------------------------------------------------------------------------------------- since donated over $1 billion to charitable organizations. Thats a lot of computers.
But maybe its not a lot of computers, because Microsoft saves nonprofits from having to spend too much on technology
through product donations. ----------------------------------------------------------------------------------------------------------------------------------- to software to refurbished hardware in an effort to affordably bring nonprofits into the 21st century.

Microsoft also offers a volunteer match program, which began in 2005. Nonprofits receive $25 per hour when Microsoft
employees volunteer for at least four hours.
For regular matching gifts, ------------------------------------------------------------------------------------------------------------------------------------ per year, which is one reason Microsoft is consistently included in the listing of top matching gift programs.

4. PepsiCo
Pepsi is a food and beverage powerhouse, which is why its philanthropy prioritizes related causes, including:

Healthy ------------------------------------

---------------------------------------- nutrition

Access ----------------------------- water

-----------------------------------------agriculture

Job -------------------------------------

Empowering women

Pepsi offers to match gifts up to -------------------------------------------------------------------------------------------------------------------------------- volunteers more than 50 hours with a single organization. Otherwise, Pepsi matches 1:1.
Pepsi employees strive to improve communities through a number of programs including:
1.

PepsiCorps: This skill--------------------------------------------------------------------------------------------------- Ghana, to

India, to New Mexico, to aid with projects that relate to Pepsis corporate giving initiatives.

2.

Mother Water Cellar Project in Greater China Region: Pepsi volunteers helped to construct a water purification
tower ----------------------------------------------------------------------------------------------------- China.

3.

Food for Good: Started by -------------------------------------------- free, nutritious meals to inner-city children.

Pepsi also prides itself on strategic grants, through which it donates about $25 million per year. The company loves to
support water sanitation ----------------------------------------------------------- to deliver potable water to millions of people.

5. Shell
Like Pepsi, Shell also supports the community in a big way.
Through a long-standing ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------to
research, but nearly half a million dollars will support UT students and programs.
To empower employees, Shell offers a matching gift program. The company matches employee donations between $25 and
$5,500 at a 1:1 ratio.
Matching gifts --------------------------------------------------------------------------------------------------------------------------------------------------------------------- jobs, saved 6.2 million metric tons of CO2, and raised $5 billion for organizations in four
continents.

In 2013, -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- its good to see that

some of the worlds largest companies believe in philanthropy and lead by example.
The five above companies are some of the most successful companies in the world. And charitable giving as a core
value benefits their bottom line in more ways than just community appreciation.

6. Write short notes on the following:

a) Effects of Globalisation
Globalization refers to the overall development as ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------of achieving globalization. Without wasting much time, let us take a look at some of the positives as well
as negatives of globalization.

Positives of Globalization
1.

Due to increased globalization in developed countries, there is more scope for developing countries to benefit from
it. This way they ------------------------------------------------------------------------------------------- of living as well.

2.

Globalization also boosts the ongoing competition between countries all over the world as well as within any
particular country; --------------------------------. This is a great chance for all end- users to procure goods at low rates.

3.

Thanks to the reach and -------------------------------------------------------------- attention towards those parts of the
world where human rights are violated for the benefit of the rich and powerful. This leads to improvement in human rights.

4.

When -----------------------------------------------------------------------------------------------------------------------------------------------------clothing, culture, etc. This is a great way of forming closer bonds with the rest of the world.

5.

Globalization in one --------------------------------------------------------------------------------------------------------------helping in keeping the prices of commodities under check during all times.

6.

All developing --------------------------------------------------------------------------------------------------------------------------------------------- the stress of developing any particular technology.

7.

Globalization helps in bringing different governments together so that they can work together towards achieving
common goals; which is a great way of spreading global awareness regarding common concerns and issues.

Negatives of Globalization
1.

The most common drawback of globalization is that it is widening the gap between the rich and poor; where rich
people are becoming richer and poor are becoming poorer.

2.

As a result of outsourcing, globalization may deprive an entire country of its jobs and resources. This is because
globalization -------------------------------------------------------------------- without the opportunities that they deserve.

3.

Although ------------------------------------------------------- with each other, it causes a loss in tradition and values.

4.

As species are deprived ------------------------------------------------------------------------------------------------------------------------------------------------------------ diseases and disrupting other natural ecosystems and their native species.
It is very important to strike balance between the positives and negatives of globalization so that balance can be restored in
nature and its living species.

The Effects of Economic Globalization on Developing Countries

Financial and industrial -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------effects
for those countries.

Increased Standard of Living

Economic ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------, and social services, the standard of living in the country increases. If the money is
used only selectively, however, not all citizens will participate in the benefits.
Access to New Markets
Globalization leads to freer trade between countries. This is one of its largest benefits to developing nations. Homegrown
industries -------------------------------------------------------------------------------------------------------------------------------------------------------- this generates allows companies to develop new technologies and produce new products and services.
Widening Disparity in Incomes
While an influx of foreign companies and -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------in the short term, some of the poor will become poorer. Not everyone will participate in an elevation of living
standards.
Decreased Employment
The influx of foreign companies into -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------for the globalized economy, social services in the country may become strained trying to care for the new underclass.

For example, the experience of ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------gap with industrialized countries. Generally, economies that globalize have higher growth rates than non-globalizers.

Also, the role of developing country ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------"brain drain" because skilled workers may choose to remain in their home country rather than having to migrate to an
industrialized country to find work.

Further, some of the allegations made by critics of ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------. Transnational corporations may also help the environment by exporting higher standards and best
practices to less industrialized countries.

b) Legal Environment
The government, in every country, regulates the business according to its defined priorities. Legal system of a country is
framed by the government. -------------------------------------------------------------------------------------------------------------------------------

-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------operations are decided by regulatory

environment & this is also called legal environment.

Legal environment in a country has -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------& punishment & therefore every

organization must follow all these regulations.

Following are some of the government Acts & government policies relating to legal or regulatory environment for business
operations:-

The -----------------------------------------, 1930.

Indian Companies ---------------------------.

Income -----------------------------------------.

The ------------------------------------------, 1986.

---------------------------------------- Act, 1958.

Environment Protection Act, 1986.

Agricultural -----------------------------------

Industrial ----------------------------------

Foreign --------------------------------Policy.

Monetary Policy.

The -------------------------------, 1948.

The Minimum Wages act, 1948.

This was all about the legal environment as explained above.

The legal environment of international business
The legal environment facing ----------------------------------------------------------------------------------------------------------------------------- derived from multiple sources, and enforced by bodies with fragmented and overlapping jurisdictions.
Research in the Department of Commercial Law in these areas currently encompasses:

Private trade law

For example, types of ------------------------------------------------------------------------------------------------------------------------------------------, the insurance of goods in transit, conflicts between the laws of different trading countries, contracts for the
international carriage of goods by sea, and dispute resolution.

International trade and investment law

The national -------------------------------------------------------------------------------------------------------------------------------------------------- the World Trade Organization and regional and bilateral trade and investment agreements.

International competition law

Analysis of the legal ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ mergers in international markets.

International ---------------------------------------------------------------- regulation

The global governance of ------------------------------------------------------------------------------------------------------------------------------------ strategies open to, the New Zealand legislature.

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