The strategy of acquiring new businesses helps to improve manufacturing processes in order to get high-volume and low cost product. It can create corporate advantages in the industry. Newell strategy is that “merchandise a multi-product offering of brand-name staple
This department is responsible for generating revenues and profits. The sales department determines the way to sell the products and it is crucial for the company that products get into the hands of the customers in order to generate revenue. The other important functional area should be the administration department. The administrative department is responsible for managing the business, decision-making, and communication between
In the business world, the benefits of globalization are not just limited to profit maximization, but also provide other advantages equipping business to carve a niche for itself in today’s highly competitive market. The most significant benefits of globalization on business could be increases in competitive advantage, global collaboration, foreign trade and outsourcing. One of the benefits of globalization on business is the rise in competitiveness of a business firm. Every business, in order to survive and maintain its market share, must have a competitive lead apart from other firms. An increase in competitiveness boosts the efficiency level of the business as they can produce their masterpiece goods or render services that are well known.
Benefit 5: Business Incentives FTA opens markets and offers business incentives and protections. Global investment allows for greater diversification and risk sharing. Also because FTA includes member countries’ commitments to protect intellectual property rights and labor rights, there are great business
Overreactions due to panic and herding led to the plunging of asset prices and foreign exchange rates. Political regimes in East Asia were pushing corporates to ensure and sustain high economic growth rates by encouraging increased investment. Governments offered credits with subsidized interest rates and even promised to bail out those corporates that incurred losses while implementing government policies. Such provisions encouraged massive investments by corporates with little regard for risk and cost assessment. In most cases, returns from the new investments were low and loan repayment was a problem.
External expansion strategies are now hitherto an integral part of the globalization and internationalization movement by enterprises. Foreign markets are now contributing to significant growth paths of businesses in terms of their bottom line. Innovation and best practices are now easier to capitalize or access through simply acquiring foreign operations of relevant companies to their business. There are two ways in which a company can growth namely organic and inorganic. Organic growth is a strategy where an enterprise develops by making use of its current business base and leverage.
A direct relationship and based on the trust of suppliers is a strength in business growth. Starting from timely receipt of orders and payment methods, the connection with suppliers can make a difference in a competitive economy, influenced by globalization. Finally, the company must follow closely the connection with other categories of stakeholders (government, community and environment), so direct follow up between the company and related parties will lead to increasing profitability. The link between corporate performance, value for shareholders and stakeholders may be declared by Figure 2. We propose a model for tracing the company 's performance taking into account the various types of
Economic diversification has been regarded as a major tool and source of sustainable economic growth and development in developed, emerging and developing economies through direct effect on the GDP by increasing economic activities and indirectly through multiplier effect, backward and forward linkages among the various sectors of the economy (Anyaehie&Areji, 2015; Akpan, 2009;Gachino, 2007). Classical and neo-classical economics theory projected convergence between poor developing countries and the developed countries in the longrun largely due to transfer of technology and capital from the developed countries to the developing countries. One of the way capital and technology are transferred from developed countries to developing countries is through the inflow of foreign direct investment that can only be possible through economic diversification (Solow, 1956; Romer, 1990; Noko, 2016b). Lewis (1954) argued that what is happening in the modern sector of the economy (industrial and modernized agriculture sector) determines how labour and capital flow from the traditional sector (primitive framing practice) to the modern sector (Timms, 2008). Economic diversification therefore becomes a necessity for sustained growth in developing countries that are largely dependent on the production, utilization and export of one particular type of product over time.
There are a large number of MNCs such as Coca Cola, Unilever, Samsung, Nike, and so on founded branches in Vietnam with the huge investment. Moreover, they contribute to create jobs, increase domestic revenues, as well as contribute to raise the level science and technology, and management capabilities of developing countries. Through their activities, MNCs help Vietnam to change the structure of the economy, expand exporting system and integrate into the global
The research and development part is very important in every firm’s activities or businesses. It is because, from that it will helps them to improve their businesses and gained many profits from that. In a firm or company, research and development is something that is a must as they can create new thing like products, services and so on. Those thing need to be research well before it can be developed. It is because error might occurred if the firms or companies directly build the new develop products before making the research first.