TITLE GLOBAL BUSINESS AND THE MULTINATIONAL FIRM

TITLE Global Business and the Multinational FirmMODULE CODE

Global Business and the Multinational Firm

1.Identify and analyse the key factors driving business toward global operations and the implications for managerial practices and organisational change.

Ans. Today managers and executives commonly focus on business needs such as raising capital, procuring equipment, establishing operational plans, and providing technical training, the cultural issues that influence the joint venture's day-to-day operations are often overlooked. In a global business environment The potential demand for the country will be materialized if population forecasts are correct and if the PPP GDP per capita equalizes with developed markets GDP per capita. The second element of the formula, they argue is important because above certain threshold income levels, one may expect disproportionately large increases in the demand especially if consumer credit is available. This assumption is more difficult to accept in many cases in the developing world. (Lettl, C. 2007 " pp.53-54) The following are the key factors driving business toward global operations:

Enhancement of the customer experience by focusing on customers' needs.

The provision of cost reductions

This approach will also result in a reduction of operational costs which should reduce prices for customers. It is also expected that this strategy will lead to improvements in customer satisfaction which the organisation currently regards as being at an uncompetitive level.

The provision of a new portfolio of products and services to be delivered via the new converged network. This strategy forms the basis of how the organisation is developing a new product portfolio.

A reduction in the time to market for new products and services. This is expected to be achieved by creating a group of re-useable common capabilities. These are non-hierarchical blocks of functionality which are used to provide a template design for a consistent, intuitive and branded user experience. (Attaran, M. 2003 pp.440-45)

2.Assess the development of critical perspectives and analytical skills to question the assumptions underpinning globalisation, international trade, international finance, international competitiveness, and exchange rate issues.

Ans. As free trade opens local markets up to foreign competition, organizations are embarking on extensive global operations. Such efforts often require joint ventures between multinational organizations. In general, these partners offer strategic benefits like new technologies, stable international finance, local market expertise, and availability of human resources.

While managers and executives commonly focus on business needs such as raising capital, procuring equipment, establishing operational plans, and providing technical training, the cultural issues To be able to support the more dynamic nature of business operations, managers expect systems and technology that are flexible and able to support the enablement of business process redesign. (Pellegrinelli, S., Bowman, C. 1994 " pp.125-127)

Organisations also expect these systems to be able to help support the operations of the organisation, especially as relates to the offering of novel products, incentives and services. Business transformation involves the bringing of radical changes to organisations by radically changing their structure, processes, attitudes, beliefs and behaviours. Of particular importance in its effective management and implementation is ...