NAME : Pankhuri Sharma

COURSE : MBA

SEMESTER : Two

BOOK CODE: MBA-301

BOOK NAME : international business management

DATE OF SUBMISSION: 27-04-2018

Q.1 Discuss about the importance of Information in international business.

Ans.1 Today, business is acknowledged to be international and there is a general expectation
that this will continue for the foreseeable future. International business may be simply defined
as business transactions that take place across national borders. This broad definition includes
the very small firm that exports a small quantity to only one country, as well as the very large
global firm that integrated operations and strategic alliances around the world. Within this
broad array, distinctions are often made among different types of international firms, and these
distinctions are helpful in understanding a firm’s strategy, organization and functional
decisions. One distinction that can be helpful is the distinction between multi domestic
operations, with independent subsidiaries which act essentially as domestic firms, and global
operations, with integrated subsidiaries which are closely related and interconnected. These
may be thought of as the two ends of a continuum, with many possibilities in between. Firms
are unlikely to be at one end of the continuum, though, as they often combine aspects of multi
domestic operations with aspects of global operations.

International business grew over the last half of the 20th century partly because of liberalization
of both trade and investment, and partly because doing business internationally had become
easier. In terms of liberalization, the General Agreement on Tariffs and Trade (GATT)
negotiation rounds resulted in trade liberalization, and this was continued with the formation
of the World Trade Organization (WTO) in 1995. At the same time, worldwide capital
movements were liberalized by most governments, particularly with the advent of electronic
funds transfers. In addition, the introduction of a New European monetary unit, the euro, into
circulation in January 2002 has impacted international business economically. The euro is the
currency of the European Union, membership in March 2005 of 25 countries, and the euro
replaced each country’s previous currency. As of early 2005, the United States dollar continues
to struggle against the euro and the impacts are being felt across industries worldwide.
Management Information Systems (MIS) is about applying information technology to manage
and analyze operations and solve business problems. Knowledge of information technology is
essential to modern management, and majoring in MIS will provide the capability to manage
information systems or to assist senior management in its information technology strategy.

In management information systems, courses you will learn about business processes and
analyze how to improve processes using IT. In taking this major you should also develop
expertise in at least one other area of business, such as accounting, marketing, human
resources, finance or operations management. IT employees are prized by all organizations-but
even more valuable are employees who know how to use IT to solve business problems. The
major prepares you to become a manager overseeing IT infrastructure and technical strategy.
Potential roles include business analysts, strategic technology planners, database
administrators, and others, that can eventually lead to the position of Chief Information Officer
(CIO).

Until the 1990s, before the widespread adoption of personal computers and the Internet,
companies were using information systems to manage data processing and record-keeping
activities associated with business transactions like maintaining the general ledger (book
keeping), payroll, billing, inventory management, etc. The focus was mainly on maintaining files
and databases related to day-to-day operations. Communications, both internal and external,
relied on paper, telephone, faxes and other analog media. Information systems have evolved
over the last 40 years, including the move from the mainframe computer of the 1970s to
personal computers becoming an integral part of the tracking and organizational process in the
1980s.

In the past when a company received a customer order, whether it was for a service requested
or for a product purchased, the order needed to go through a process of paper-based workflow
that was passed along to different departments, inbox to inbox. Throughout this process, the
order often had to be re-typed as it passed through various departments, increasing the
potential for human error. There was no accurate account or order status because there was no
official tracking device to alert each department. In order to retrieve order status information,
customers were frequently directed to contact the company’s warehouse for manual research.

Today, companies have eliminated the inaccuracy of paper-based tracking by implementing ERP
systems. In a recent study conducted by Panorama Consulting Solutions, 63 percent of
companies used their ERP software to eliminate inefficiencies in processes such as order
tracking. Instead of standalone computer systems, ERP uses a unified program that links various
functional departments such as finance, HR, manufacturing, warehouse, planning, purchasing,
inventory, sales, and marketing.
Q.2 What should be the qualities for international leadership and management.
Ans.2 the success of any business concern depends upon the quality of its leadership. Good
leadership gives good industrial organisation and its successful operation. Leadership is a
human characteristic that lift’s a man’s vision to higher sights, arises a man’s performance to
higher standards and builds a man’s personality beyond its normal limitation.

Leadership is an important ingredient in managing. Truely speaking, all assets of the business
have decreased in their value with the passage of time such as depreciation of plant and
machinery, building and amortisation of goodwill and preliminary expenses. But, human being
in a business is that asset whose value increases with the passage of time. Human resources are
important and dynamic part of the organisation. Effective and adequate utilisation of the
resources in the organisation depends upon the management. There are two ways by which a
management can get the results from the people. First, management can get the work done by
the people in the organisation by exercising its authority vested in it. Second, by winning the
support of employees in the organisation. Out of these methods, the second way is better
because it has lasting effect over the people’s motivation and morale. It is only possible when a
manger can become a leader in real sense. He is in a position to mould them in a direction he
likes. Managers acts as a leader at all levels. It is only the leadership in the organisation that
guides, inspires and directs the subordinates in the business organisation to strive willingly
towards the planned goals. The dynamic and effective leadership is an essential part for the
success of an organisation.

If seen in a big perspective, the old concept of leadership is different from its new concept.
According to old concept of leadership, the leader through his effective personality is able to
work by his followers as according to his will. Followers work for his leader without any
questioning. The, generally, do not argue, suggest or criticise his leader.

And, according to modern concept of leadership, leader get the work done through his follower
by mutual feeling considering each one’s ideas, suggestions and criticisms. Leadership is a
mutual relationship wherein leader affects his follower’s behaviour and achieves defined aims
by mutual considerations and co-operations.

Qualities

1. Cultural Cognizance: When corporations open up manufacturing plants or distribution

centres in foreign countries, company leadership needs to take the areas cultural
practices and regional values into account. Organizational culture, for example, differs
from culture to culture. In countries that traditionally emphasize social hierarchy and
 classes, a business executive should in still a clearly defined pecking order where formal
respect of those in positions of authority is expected of lower ranked employees.

2. Flexible approach: The ability to communicate ideas and directives in a clear and
concise manner while still taking cultural variations into account can make or break an
executive. An effective leader needs to be flexible and shift his or her tactics and
approach while continuing to command a room and guiding the business in the right
direction. Adapting to a wide range of business challenges quickly is instrumental in
leading a global organization.

3. Broadened Networks: The importance of networking with people in other departments

or even in other businesses cannot be overstated. An effective leader is a well-
networked leader. Networking at the global executive level means that instead of
managing in a vertical sense, from subordinate to superior, a global leader concentrates
on collaboration in every direction, horizontal and vertical.

4. Inclusiveness: Fostering an inclusive, collaborative environment can strengthen

leadership with innovations. The alternative is to leave the majority of decision-making
in the hands of a select few leaders, which closes off external influence and feedback.
An inclusive leader cherishes feedback and ideas, especially from those who hold a
variety of points of view different from his or her own.

5. Expanded Horizons: Concentrating on expanding knowledge, learning the duties of your

peers and superiors, and thinking in term of what’s best for everyone involved are what
set true global leaders apart from the pack. In addition to expanding one’s skill set and
responsibility, Zhu also focuses on transition areas, which include evolving from problem
solver to agenda setter, or from tactician to strategist. In the scenarios she describes,
employees, leaders, and managers can learn to expand their horizons and step naturally
into a leadership mentality.

Q.3 What is the feature of international marketing function?

Ans.3 International Marketing should be considered as a component of the whole system of
knowledge in the marketing industry. Its genetic basis are the factors of spatial and
geographical order, which are connected with activity of enterprises on the markets of the
other countries, if it complements the national government at home marketing.
International Marketing can be defined as marketing on foreign markets. All the work of
marketing, focused on the foreign interests of the firm belongs to it sector. International
marketing is the marketing of goods and services outside the country where the company is
located.

The concept of international marketing should be distinguished from the concept of export.
Traditional export is that domestic producers are limited to the supply of their products to the
firms to another country, i.e., importers. Suppliers are not concerned or a little concerned that
their production occurs, as satisfied consumers. But if we are talking about international
marketing, it involves systematic, planned and active handling of international markets at
different stages of advancement to the buyer.

International marketing expresses the magnitude of foreign firm activity. It can be bilateral in
nature, when the enterprise which has mastered the market of your own country, enters the
market of own state. However, it is often used multilateral system actions. They are quite
flexible and are characterized by the fact that the company, which is present on one pr many
markets, is looking to bring on one market or several.

Availability of advanced communication and transportation facilities has reduced the physical
distance among the nations of the world, and has made the world as a global village. Countries
of the world are nearing to participate in the global market opportunities. Customer’s needs
and wants are not limited to the products produced and marketed within the boundary of
country.

Features of International Marketing Function

1. Large Scale Operation: International marketing is always conducted on a large scale. It is

done on a whole sale basis and not on retail basis, to get the advantage of large scale
operations regarding transportation, handling and warehousing.

2. International Restrictions: In domestic marketing, there are no restrictions. In

international marketing, there are various trade restrictions due to protective policies
followed by different countries. Trade barriers are adopted practically by all countries.

3. Three-faced competition: Suppliers have to face competition from three angles in

international marketing. They have to face competition from the other suppliers of the
exporters country, from the local producers of importing country and from the
exporters of competing nation.
 4. International forums: International trade is regulated by international forums like WTO
and UNCTAD. International marketers should have a deep knowledge of the forums
rules and regulations.

5. International Marketing Research: In international market, it is required to know about

customers, dealers and competitors. In international marketing, marketing research is a
must due to different social, cultural, economic and political environment of farr off
markets.

6. Sensitive and flexible: International marketing is very sensitive and flexible in character.
Due to political and economical reasons, a product may suddenly become unpopular or
market may come down quickly. The sale at the international level may be affected by
competitors or due to the introduction of a new product by a competitor.

Q.4 What must be characteristics of human resources at international level?

Ans.4 International business must procure, motivate, retain and effectively utilize services of
people both at the corporate office and at the foreign plant. The process of procuring,
allocation, effectively utilizing human resources in an international business is called
International Human Resource Management.

IHRM can be defined as set of activities aimed managing organizational human resources at
international level at achieve organizational objectives and achieve competitive advantage over
competitors at national and international level.

Human Resource Management (HRM), as a part of strategic operations, is frequently discussed

nowadays amongst business professionals. Since 1970, HRM grew from administrative tasks
into something new called people management. Together with an expansion of tasks and
responsibilities, the role of human resource department became more important.

History of HRM is as old and complex as the history of work and organization. HR is the most
important asset possessed by any organization. The strategists talk about sustainable
competitive advantage. It is the HR which helps to hold the advantage. HRM is the process and
philosophy of acquisition, development, utilization and maintenance of competent human
force to achieve goals of an organization in an efficient and effective manner.

Concept of HRM contains two versions – the hard version and the soft version. The hard version
or variant emphasizes the need to manage people in ways that will obtain added value from
them and thus achieve competitive advantage.
Characteristics of human resource at international level

1. It is an art and science: The art and science of HRM is indeed very complex. HRM is both
the art of managing people by recourse to creative and innovative approaches; it is a
science as well because of the precision and rigorous application of theory that is
required.

2. It is pervasive: Development of HRM covers all levels and all categories of people, and
management and operational staff. No discrimination is made between any levels or
categories. All those who are managers have to perform HRM.

3. HRM is a service function: HRM is not a profit centre. It serves all other functional
departments. But the basic responsibility always lies with the line managers. HRM is a
staff function –a facilitator. The HR manager has line authority only within his own
department, but has staff authority as far as other departments are concerned.

4. HRM must be regulation-friendly: The HRM function has to be discharged in a manner

that legal dictates