Monday, April 8, 2019
Memorandum International management associated Essay Example for Free
Memorandum multinational anxiety associated EssayBusinesses have crossed b posts, and it has been outgrowth rapidly in recent decades because of the liberalization of government policies, and technological expansion. To satisfy the international demand of customers, it requires square prudences skills, sensitivity to cultural issues, and intercultural competence. As the multinational corporations grows and improve the quality, and operate at multinational level, this is why managers should pray three critical questions, first why should I puff up internationally? Second where should I expand? Finally, how to expand? Which get out help to achieve successful strategic objectives. In this memorandum the Board of Directors for first rudiment Complete Kitchens, Inc. restores of the board of directors of the plant relative to international sales of products of for alphabet Complete Kitchens, Inc impart be examined. This memorandum analyzes the international management e stimateations associated with the plant. ABC Complete Kitchens, Inc is anticipating nearly twenty percent of the sales from the international and abroad market. Therefore, the board of directors has expressed their concerns about the management ofinternational aspects for the plant. Some issues have been identified in overseas management procedures, and considerations for the same(p) are to be provided. This memorandum expresses the concerns for the same. The ABC, Inc unavoidably to adopt international management strategies to sustain its competitive position in the market via adequate cultural, technical, political, and economic environment. Localization Concerns subsequently lettered why to expand either to increase sales or to cut costs or for an other(a)(prenominal)wise reasons . The ABC, Inc, should decide which countries to enter first, which type of countries to chose, what criteria to follow to make these choices. The best suggestion for ABC, Inc is enter the countries with the largest potential customers for its products, as yet managers should also think about how likely they are going to success in particular unconnected market, and how to measure not only the geographic distance, but diction, cultural, administrative, and economic distances as well. Language ConcernsLanguage affects the path of employees, customers and business partners communicate with individually other. Based on the level of foreign language k right offledgebasically the Englishin the countrys society, the ABC Inc. moldiness carefully decide whether it washbasin use English as a working and advertising language or if its management has to learn the countrys own language and build the strategy on that language (Kozenkow). heathen ConcernsThe habits, behaviors and consumer preferences of every society are determined with Culture. While implementing a business strategy overseas, ABC Kitchen Inc, should consider all the cultural characteristics of the targeted society. When entering sunrise(prenominal) country the t dissolute should ask if the customers want the same thing, or it leave behind have to modify the product to fit their satisfactions. . Therefore, for increasing overseas sale, ABC Inc, must plan its overseas strategy keeping in mind of the culture of the country for which the strategy is existence planned. Administrative and International Laws concernsThe ABC kitchen, Inc, need to abide and respect the different regulations,government policies, and legal systems, because countries motley widely on these dimensions, which require the firm to has a deep understanding on how to meet those regulations to empty failure, even if the firm has the best products in the markets. Technical development concernsDifferences among the technical development and facility of markets internationally or at bottom the United States determine fundamentally the opportunities of production, sales and marketing of the operating businesses. Management ca n build your advertising and promotion strategy exclusively on the Internet if the majority of the national world or local community uses the Web as its primary source of information. Economic concernsAn other important factor is economic concern which is the average of purchasing source customers in different countries, and how elastic this power is, in that locationfore, it means how much demand for the product changes, as the price goes up and down, because this is a outsized exact for the firm to know who are used to buy products in the market, where every one is wealthy. In other hands, may state with low wage should be a target. Economic differences like these have a major influence on what type of products will be demanded. tag on Chain ManagementSupply chains are an integral part of global quality and cost management initiative, because a representative companys supply chain cost can represent more than than 50% of assets and more than 80% of revenues. (Ball, 2010) , in other word, the ABC, Inc should reduce the inventory of chain supply to reduce the cost. In order to do that the Board of Directors of ABC Inc. has to expresses reconsiderations for management across business functions in supply chain management. Managing the combine of raw materials, supplies as well as finished products are equally important as the management of sales and marketing. CompetitionAnother concern is the competition in overseas market. Local products tend to be cheaper than the internationally exported products due to various forms of taxes included in them. Therefore, how will be the completion met in theoverseas market and what the management plans to do with the taxes and prices in the overseas market, the board of directors should be interested in conditioned these aspects. Finance and AccountingAnother factor that the firm should take it on consideration is the accounting practices and specimen changes across the national borders, it is an obstacle to merg e subsidiary financial results with those at the parent company, this is why there is a growing movement toward convergence of accounting standards across countries (Ball, 2010). This convergence will help the financial management to be more integrating, because the statements will be comparable. ABC complete Kitchen Finance management is particularly a concern point, as overseas countries change in observe in terms of each other based on currency exchange rates. How will the ABC Inc. comply with financial laws and regulations in the host country, the concern particularly addresses following questions to be answered What management is doing to understand how fluctuations in currency value change international business transactions? What is the process for financial tools such as derivatives, hedges, payment timing, mental picture netting, price adjustments, balance sheet neutralizing, and swaps, and how they affect business performance? When and how to pay exporters in forms oth er than capital buyers frequently prefer payment rendered in the form of goods or services (countertrade)? Human resource concernBoard of directors of ABC complete Kitchen Inc. has expressed interest and concern about the strategies of management and have questioned that how will be the needs of the resources and workers will be met across different countries. Furthermore, what is the best way to meet the needs of these employees and also best utilize their skills and talents to keep the business functioning smoothly? (Business) Ethics and Society ConcernsAfter the ABC kitchen,Inc established a business global plan for marketing, operations, and human resource management , should now establish an ethically and socially business plan among its international management considerations.The purpose of the firm is not apparently to make profit, but to create value for all of its stakeholders, business success is judged not simply by companys financial, but by how well it serves broad so cial interests (Laweren, 2008). In other words if ABC ,Inc want to successes internationally, it should adopt strategy that apply ethical values and the respect of people on its global environment and for different people that affect the company, from the stakeholder ,to the shareholders, employees, customers, and society. To achieve that the Broad Director of the firm should adopt a stakeholder theory that consists on identifying the relevant stakeholders group, determining the stake of each group, determining how the first moment of each group are met, finally look for the stakeholder interests. By following these steps the firm will build a good relationship with the shareholder, moreover will build reputation and trust that will enhance its performance. Finally, for the hiring process the ABC ,Inc should put values and ethics as requirement to hire new employees, because it will not just help the organization but the global market place. ConclusionIn summary, getting global str ategy wright can be very difficult, because it requires matching the wright reasons for going global with the wright places and the wright strategies. The ABC Complete kitchen, Inc should follow the steps suggested while managing significant differences between countries, and responding to the intense rivalry from both global and local competitors, however when the challenges are great, the ABC Inc should get it wright, to win in a really big way.ReferencesBall,G. (2010). International business The Challenge of global competition,12th Edition, New York, NY the McGraw-Hill CompaniesBoundless.com. (n.d.). Considerations-when-managing-a-global-corporation. Retrieved from https//www.boundless.com/management/textbooks/boundless-management- textbook/globalization-and-business-14/managing-international-corporations- 107/considerations-when-managing-a-global-corporation-499-10752/. Business, R. f. (n.d.). International Management. Retrieved from http//www.referenceforbusiness.com/management /Gr-Int/International-Management.html.Kozenkow, J. (n.d.). International Management Challenges. Retrieved from http//smallbusiness.chron.com/international-management-challenges-56168.html. Lawerence,W. (2008). Business and Society Stakeholders, Ethics, Public Policy, 12th Edition. New York, NY The McGraw-Hill Companies.Sullivan, D. (2011). Business strategies for organizational effectiveness within the global Perspective. Pearson Education, NJ Prentice hall.