One of the biggest obstacles to effectiveness for executives working outside their native culture is a lack of tolerance from the “locals.” However, mere tolerance of differences is just the beginning. Real adaptation requires executives to generate diversity local conditions. People think they might know a great deal about foreignness, strategic fit, and differences in host cultures, but there is something about the role of the country environment in the global transfer of corporation assets that is missing (Matustic, 2001). As this case study on the globalization of Hong Kong Disneyland will reveal, globalization theory helps fill this gap. Disney experienced unanticipated success in Japan but an equally unanticipated lack of success in Hong Kong, even though both places are in East Asia.
A logo might carry some weight, but the fact is that not even the most powerful brands can be secure in a courageous product migration by investing trust in the brand alone. The phenomenon of “brand migration” is relatively recent and has been quickened by the globalization in which the world economy is immersed. Academic literature still does not reflect this phenomenon as an isolated fact in business. However, there is extensive literature on brand-related issues, such as brand values, architecture, and extensions. The migration process exists because the brand has a value; otherwise, it would not need to migrate.
In contrast, Legrain has the opposite opinion to the transnational corporation. In chapter 5, he states that use a huge company to compare with a country is unreasonable. Companies are not powerful as a country. I agree with Legrain’s opinion, companies will try their best to attract consumers, but they can not force them to purchase their products. But the country can make a law to manage those companies and people, like tariffs.
Also, culture was influential when deciding which market to target and whether to target a specific market. Furthermore, for both Ariterm and Wapro, business practices had been perceived as somewhat constricting as other business practices could take longer and be more complicated. However, industrial development was also mentioned, out of context, as somewhat influential but it was not outlined as a barrier specifically. Markets lacking the necessary industrial development were simply not considered by the companies. The degree of education was not mentioned at all as this was not seen as a determinant for the success of their operations.
Verma and Elman (2007) understand that not all governments and companies desire strict labor standards as they can be hindrances to competitiveness. If the labor standards are too extensive, strict, and expensive, buying companies will go somewhere else and the industry in that country will decline. Nonetheless, Verma and Elman (2007) argued that labor standards are beneficial to all because they can boost standards of living and national economic growth (p. 57). To support the design of effective labor standards, they examined the pros and cons of hard and soft models where hard models are legislation-based and soft counterparts are largely voluntary and pressure-based. Findings showed that consensus is vital to the creation of legitimate labor standards (Verma & Elman, 2007).
Additionally the project bidding process creates little incentive for quality awareness, since it is mainly focused on price value rather than quality value. A change in order to shift the focus on quality criteria would require radical changes in the project awarding system to avoid price competition. Apart from the characteristics of the industry itself, cultural related reasons might have an impact too. TQM can only work on an environment where team work, constructive discussions and collaboration are part of the overall company policy. A lot of the Chinese traditional social structures do not include some of the modern approaches to improve team work between employees.
However, PFS is still vulnerable to their supplier (the carriers), this is due to the fact they (the carriers) will have final say on what could be brought into their vessels. Although PFS might be slightly immune to Porter’s Five Forces they don’t fare to well under PESTEL. Being a freight forwarders there are plenty of political sanctions and legal requirement that needs to be adhere to as the penalty are stiff. Apart from this, they are also very vulnerable to the economic outlook of the oil and gas industry. When oil and gas companies have little or no projects, than PFS will find themselves with no
Numerous theories about how to foster individual knowledge sharing in global teams by means of different information technologies or management styles has been developed (McDonough et al., 2001). Furthermore, organizations have invested large economic amounts to ensure a collaborative environment but nevertheless companies still fail to ensure individual knowledge exchange (Babcock, 2004). This failure may be partially due to a lack of consideration about how and which individual characteristics influence knowledge sharing (Carter & Scarbrough, 2001). Only limited research has considered the influence of individual differences, i.e. personality traits on knowledge sharing (Matzler et al., 2008) although personality traits represent robust predictors of workplace behaviors (Barrick & Mount, 1991).
To date, African countries have not been successful in attracting signiﬁcant FDI ﬂows, reﬂecting largely the combined effects of political and macroeconomic instability, weak infrastructure, poor governance, inhospitable regulatory environments, intensiﬁcation of competition for FDI ﬂows due to globalization, and poor marketing strategies. There is the need to reverse the declining FDI trend in the region. This requires concerted efforts at the national, regional, and international level. It also requires a new and more effective approach to investment promotion. For such reasons, this essay does not believe we can consider Africa, as a continent,
If SMEs cannot spend their budget strategically, SMEs will lose their own competitiveness. Entrepreneurship Fourth constraint is lack of innovative entrepreneurship. According to the Joseph Schumpeter, “Entrepreneurs are innovators who use a process of shattering the status quo of the existing products and services, to set up new products, new services” (Joseph Schumpeter 1934). However, People in the Singapore usually want to establish business that is very stable and less risked, which is not innovative. If entrepreneurs try different sort of things, but if the business fails, it will bring huge financial difficulties and frustration to the entrepreneurs economically.