Renco is certified according to ISO 9001:2008 and ISO 14001:2004 standards and OHSAS 18001:2007. It allows Renco continuously expand its activities and today Renco provides its clients a wide range of quality services, ranging from technical assistance and consulting work to full turn-key projects (Renco SpA - Certificates (n.d.)). Weaknesses: 1. Economic results and profitability of the Renco depend greatly on the development and distribution of dividends of the other Group companies and therefore, ultimately, it reflects the economic trend and investment policies (Admission Document, 2014). Negative results recorded by other Group companies could influence negatively to the economic situation and financial position of the Renco and the Group.
Situations that may occur is the expansion of the activity of the corporation, entry mode, and selecting the placement of company manufacturing locations. Another implication posed is their interest in the corporation against a country that consists of the benefits to be obtained, the cost of which will be issued as well as the risks to be acceptable corporation (Hill, 1994). One approach is a global shift in geoeconomics (Susanto, 2012). Global shift forward the control of the network and access to capital, both human and non human capital. Human capital will generally be maintained as possible to support the passage of the flow of capital
303). In the diamond model, the advanced factors are most noteworthy for competitive advantage. These are usually the result of investment made by businesses and government as they aim to provide research, training and innovation. In order to maintain and improve the competitive advantage, the company or government should invest in its factor conditions on a regular basis. Another concept of the model would be demand conditions which refers to aspects such as the home demand and the size, growth and complexity of the market.
Based on four attributes, first one is Factor endowments that focus on basic factors natural resources, climate, location, demographics second one is advanced factors such as communication infrastructure, sophisticated and skilled labour, research facilities, and technological know-how. Third one will be advanced factors are a product of investment by individuals, companies, and governments. Porter argues that advanced factors are the most significant for competitive advantage. Lastly demand conditions that look at customer need or the demand on which is being produced, companies will have to produce innovative, high quality products early, which lead to competitive advantage. Relating and supporting industries, if suppliers or related industries exist in the home countries that are themselves internationally competitive, this can result in competitive advantage in the new industry, firm strategy, structure, and rivalry.
Such competitiveness among organisations level namely rivalry among competitors, bargaining power of suppliers, threat of substitute products, threat of potential entrants, bargaining power of buyers,. These factors they argue will play a role in EMNCs internationalisation process. In a high competitive environment, the organisation will constantly search for innovative and competitive advantage which may force the multinationals to internationalisation abroad. The type of internationalisation activities by multinationals may be sector
According to Porter (1990), Porter 's diamond is a model which explain the competition 's benefits for the countries. Moreover, it is a model that helps to analyze and improve the country 's performance in international market. This model has four main elements which are factor endowments, demand conditions, relating and supporting industries and firm strategy, structure, and rivalry. In this report, we are going to apply the Porter 's diamond with mining industry in South Africa which is the important contributor to their economy, and moreover South Africa is a world leader in mining. • Factor Endowment According to Porter, factor endowments is defined as a country 's position in term of production, such as skilled labour or infrastructure.
Dunning’s OLI paradigm and Vernon’s Product Life Cycle can help us to understand this in a well organized and systematic manner. In Dunning’s OLI paradigm, “OLI” stands for ownership, location and internalization which are the main sources of advantage that consist of a firm’s verdict to become a multinational. Furthermore, it pays attention to the factors that enables the multinational companies to diversify their operations in emerging markets. Three factors have been explained below:- • Ownership Advantage: This explains the question of why not all the firms go abroad. The advantage here refers to the entrepreneur skills, trademark, production techniques and returns to scale.
Firms attempt universal operations for different reasons (Lam & White, 1999). A few firms internationalize because of the way that their rivals or clients have been globalized (Ohmae, 1990); while others are pushed by the thought of multinationalization as an image of achievement and growth. Its likewise has been demonstrated that expanded internationalization results in enhanced productivity and profitability (Gerlinger et al., 1989). The neo-exemplary point of view underscores reasonability as the chief drivers of internationalization assume that supervisors carry on sanely and base their choices on financial productivity (Forsgren, 1989). Both the mixed worldview (Dunning, 1980; 1988) and the exchange cost hypothesis (Rugman & Erminio, 1996) suggest that the result of an activity is the after effect of an objective Foreordained arrangement (Forsgren,
When a firm successfully formulates and implement value-creating strategy, by put the commitments on action so that it increases the range of opportunities for firms to compete in the market. At this area, globalization happen when the resources and the capabilities found in the home country or the headquarters allow the firms to pursue the strategy into market located in other countries. Based on Michael Porter’s model, four factors that contributed to the firm in a dominant global industry are factor of production which is land, labour, capital. The second dimension is demand conditions where the nature and size of buyers need. Third dimension is a related and supporting industry and lastly the firm strategy, structure and rivalry.
Question 2 To answer this question we have to take a closer look at Porter’s framework that is based as a diamond shape. This frame work was designed to help individuals understand their position of course when I’m talking about position I mean the competitive position within the global competitors. Porter’s model also suggests why there are some nations that are more competitive than other nations and also where this model determines the national advantage of the country. (https://www.google.jo/url?sa=t&rct=j&q=&esrc=s&source=web&cd=11&cad=rja&uact=8&ved=0CFQQFjAK&url=http%3A%2F%2Fwww.ajol.info%2Findex.php%2Fsabr%2Farticle%2FviewFile%2F76358%2F66817&ei=15KAVOyaLcLW7AaDzIHwCQ&usg=AFQjCNH0MObi-q2jFGWBbLZsutQGesUfEQ&bvm=bv.80642063,d.bGQ) According