Environmental Analysis and Long-term objectives Essay Example for Free

Environmental Analysis and Long-term objectives Essay The organization selected for this paper to discuss the environmental analysis and long-term objectives is Dunkin Donuts. The main focus will be on the forces and trends operating in the environment which have a considerable effect on the running of the organization. The paper will first discuss these forces and trends in detail and then provide an insight to how these forces effect the organization and align themselves with the vision and values of the organization. The trends selected are: 1. Social responsibility 2. Environment 3. Fuel Social Responsibility One of the environmental trends is social responsibility which adds to the credibility of an organization. Social responsibility basically refers to the responsibility or the duties of an organization, government or even an individual towards the society in which it functions. Every organization has a responsibility to keep their actions and practices in the best interests of the people living in the society so that it does not endanger them in any way. Instead organizations should work to provide comfort and help to the society as a whole. This is a part of their corporate social responsibility. The company can also be involved in eradication of unethical practices and behavior taking place in the society so that the lives of the people could be made easier. For example, some companies take initiative in planting trees or constructing gardens in an area which serve a place for community people to come together and meet each other (Kotler and Lee, 2004). Social responsibility at Dunkin Donuts has actually helped the organization in a considerable manner. The restaurant holds a respectable position in the society due to its charity and community involvement programs. The company as well as their employees contributes for the community service organization in order to make the lives of the people better. Moreover, they are extremely committed to the environmental responsibility. The restaurant follows the environment regulations and promotes cleanliness. The restaurant itself is very clean and tidy with a proper system to discard the garbage. The company supports charitable programs and takes initiatives for supporting and participating in the welfare of the community people. They even sponsor educational programs in local community schools and provide funds for different events like Special Olympics, AYSO soccer teams etc. Recently Dunkin’ Donuts has entered into a relationship with a non-profit organization ‘Coffee Kids’ for supporting families in the coffee-producing regions of Mexico and Central America. On 22 May, 2008, the company went ‘green’ by initiating its first LEED (Leadership in energy and environmental design) restaurant which is a part of their corporate social responsibility commitment. This way the company hopes to improve the quality of life of the community people by making the area clean and green (Kotler and Lee, 2004). The trend operating in the environment must be aligned with the mission, vision and values of the organization for it to work in the best possible way. At Dunkin’ Donuts, there are seven core values and one of them is responsibility towards the environment and the community in which they are functioning. They are committed for improving the people’s quality of live. The first LEED being built up by the company is an effort towards promoting a healthy life for the people and improving their quality of life. The social responsibility practices of the company reinforce their mission, vision and values which are focused on making the ‘world a better place live and work’ (David, 2006). Environment The second force the paper talks about is the physical environment in which the organization is functioning. The trends in the environment have a much larger impact on the organization; here we are discussing the physical environment. Changes happen in the physical environment without any notice which might result in shock or disaster or even opportunities. Organizations need to have a contingency plan to deal with such contingencies resulting from the physical environment (Shaffer, 2000). In the physical environment outside the Dunkin’ Donuts Company and restaurant, variable changes can take place which can sometimes help the organization or hinder its processes at some other instances. The environment can provide opportunities as well as threats to the company. Since Dunkin’ Donuts has now essentially become a beverages company so it can specialize in different kinds of beverages and become a market leader. Moreover, the increasing number of suppliers in the industry can also result in new opportunities. Threat comes mainly from the substitutes and the new entrants. The company faces tough competition from Starbucks and their success becomes a threat for the company plus the industry doesn’t offers high barriers for the new entrants so more beverages company can be set up thus giving rise to the competition. Apart from this, the physical environment also includes the threat from natural disasters which can cause huge losses to the company so the company needs to have contingency plans for dealing with them. Thus, the physical environment can both help and hinder Dunkin’ Donuts depending on the situation (Reeve, 2002). The organization strives to accommodate any changes emerging in the physical environment in its strategy. The company was essentially based on donuts first but now it has developed into a beverages company. This was because it saw greater opportunities for itself in serving the beverages market. It saw the changing taste of people towards coffee and decided to establish a strategy based on a coffee company. Today Dunkin’ Donuts is known as the no. 1 retailer in hot and ice regular coffee. Thus, this shows the organization’s strategic adaptability towards the changing forces resulting in the environment (David, 2006). Rising Fuel Costs The burning issue facing the organizations today in their environment is the rising fuel prices. Companies have to face rising costs due to this shooting up in fuel prices which have almost doubled this year. As the costs are increasing so the companies have to raise the prices of their products and services which decreases their sales. This way many companies are facing problems due rising fuel costs which in turn decreases their average sales. Therefore, the third issue is of fuel which this paper will examine (Reeve, 2002). The rising cost of fuel is a trend in the environment which hinders the company by raising the costs of doing business and thus, decreasing the sales and profits. Since electricity is produced through fuel so increase in fuel costs also increases the electricity cost. At Dunkin’ Donuts restaurants, the food including the donuts and beverages is prepared to sophisticated machines which run on electricity. They have to pay higher for electricity which increases the cost of inputs and simultaneously, the cost of doing business. The company has raised the prices of its products worldwide recently but that has caused the sales to decrease and thus, it earns lower profits. This way fuel is actually a hindrance towards high profits for the company and simultaneously, its long-term objectives. Since rising fuel costs are hindering the company’s sales and profits, Dunkin’ Donuts is trying to find out ways of producing the products efficiently so that they involve low costs and the profits of the company could be increased. The company tries to specialize in certain beverages which can be produced with hands so that machine use could be limited thus, saving up the electricity. The company tried to adjust for these rising costs so that it can acquire an increasing number of customers to boost up its sales as well as profits (Shaffer, 2000). Conclusion The paper has discussed in detail the environmental analysis pertaining to social responsibility, environment and fuel. It first discussed what these forces actually mean and then identified their relevance with the organization and how organization adapts to these forces operating in the environment. Social responsibility at Dunkin’ Donuts is aimed at winning the hearts of the masses through charity and community involvement activities. The mission of the company is to improve the quality of life and this is effectively done through their social involvement programs. The company also takes immediate action to the changing environment which may involve rising incomes or changing tastes of the people and tries to accommodate the change in its strategy as it did from shifting to beverages industry from donuts industry. Finally, the company is also trying to cope up with the rising costs of fuel through cost efficient methods and increasing the prices since the income of a common man has also increased. All these forces or trends help or hinder the organization and its strategy in their own way. Thus, it can be said the Dunkin’ Donuts is a very capable organization who has effectively dealt with difficult times and has become the no. 1 retailer in coffee throughout United States (David, 2006). References David, F. R. (2006). Strategic Management: Concepts and Cases. Prentice Hall. Kotler, P. , Lee, N. (2004). Corporate Social Responsibility: Doing the Most Good for Your Company and Your Cause . Wiley. Reeve, R. N. (2002). Introduction to Environmental Analysis. Wiley. Shaffer, J. (2000). The Leadership Solution. New York: McGraw-Hill

Motives of internalization and strategic advantages and traits

Motives of internalization and strategic advantages and traits Internationalization can be defined as the desire to be a member of the international society by satisfying a certain standard, or strengthening the influence of a nation on other nations. It becomes the process where multinational enterprise (MNE) engaging, it is very important for these companies to penetrate international market if they want to be accepted and remain successful. (Sreenivasan Jayashree and Sahal Ali Al-Marwai). The internationalization process helps MNEs in maturate their operation in foreign market and enhance their competitive position abroad. According to Hedman (1993), three main alternatives for distributing the enterprises product exist, that is, indirect export, direct export and alternatives to export. When distributing indirectly, the different distribution activities are assigned to one or several intermediaries in the home market. When distributing directly, the producer itself conducts the distribution activities, such as distribution to a foreign importer, which in his turn forward the products to another intermediary or the end customer. (Molnar, 1990) the third alternative, alternatives to export, can take place through, for instance, own production in the target country, or licensing (Hedman, 1993). The rapid changes in todays business world call for new models of internationalization (Fillis, 2001; Meyer and Gelbuda, 2006), especially to be able to capture the early phase of internationalization in a better manner than the traditional models (Johanson and Vahlne, 2003). In contemporary research, Coviello and McAuley (1999), in line with Leonidou and Katsikeas (1996), have pointed at three theory directions that are preferable for studying internationalization, namely Foreign Direct Investment (FDI)-theories (a.k.a., the theory of the Multinational Firm), Stage models and Network theory. Even though these are different theory directions, they are seen to be complementary views where a combination of views is preferred since it is difficult to capture the internationalization concept using only one theoretical framework (Bell et al., 2003; Bjà ¶rkman and Forsgren, 2000; Coviello and Munro, 1997; Meyer and Skak, 2002). Network theory is increasingly being combined with stage theo ry in order to understand and explain the rapid internationalization of the firm (in Bell et al., 2003; Johanson and Vahlne, 1990, 2003; Meyer and Skak, 2002). The process of internationalization has been the subject of widespread theoretical and empirical research (for example, Johanson and Wiedersheim-Paul 1975; Johanson and Vahlne 1977; Bilkey 1978; Cavusgil 1980; Turnbull 1987; Welch and Loustarinen 1988) and finds a general acceptance in the literature (Bradley 1991; Buckley and Ghauri 1993; Leonidou and Katsikeas 1996). The internationalization process is described as a gradual development taking place in distinct stages (Melin 1992). Internationalization processes in emerging markets, as in international markets in general, take place in a stepwise manner (Jansson, 2007). Companies commit themselves through a gradual learning process. Learning is incremental and takes place by doing. Firms learn about doing business abroad, for example, learning about the conditions in particular markets. Companies tend first to establish themselves in geographically and culturally proximate markets and increase their commitment, starting with agents, and passing through sales companies to manufacturing companies (Johanson and Vahlne, 1977; Johanson and Wiedersheim-Paul, 1975). Within the last decades, the business world has changed drastically through globalization and internationalization -creating a new and fierce business environment for companies. We can now see a third wave of internationalization of firms in which companies domiciled in mature Western markets establish themselves on a large scale in emerging markets such as Central and Eastern Europe (CEE), Russia, China and India (Jansson, 2007). A recent phenomena of firm from Asian capital exporting countries were internationalizing and multinationalizing their business activities and have emerged or are emerging as Asian multinational enterprises (World Bank, 1993). They started the internationalizing activities and investing and setting up operation in other countries since mid-1980. Research interest which focus on these Asian enterprises and their direct investment activities arise in recent years (Ting, 1985; Ulagado et al., 1994; Yeung 1994, 1997). Foreign direct investment (FDI) started on the early 1980s. According to studies done by Lall, 1983;Well, 1983; Kumar and McLeod, 1981; Khan, 1986; Monkiewicz, 1986; Aggarwal and Agmon,1990; Tolentino, 1993, FDI of Third World multinational enterprises (TWMNEs), slightly different with the traditional MNEs from the western developed countries in term of their characteristic. The growth of East Asia (World Bank, 1993) in late 1980 and early 1990, has increased intra-regional direct investment. The directed investment process from Japan , followed by Korea, Taiwan, Hong Kong and Singapore and the activities transferring from one level of economies to another in Malaysia, Indonesia and Thailand has been depicted as wild flying geese pattern. (Toh and Low,1994; Guisinger, 1991). As a result, these Asian capital exporting countries firm internationalizing and multinationalizing their business activities and have emerged or are emerging as Asian multinational enterprises (World Bank, 1993). Problem Statement During these extremely competitive times, the international business environment is one that is normally full of immense uncertainty, volatility as well as a high rate of failure when it comes to international expansion The research on the nature, organization and operations of these emerging Asian international and multinational enterprises are limited. This is because research in international business and trade has been dependent largely upon economistic and western-centric theories developed predominantly in industrial and institutional economics (Buckley and Casson, 1985; Dunning, 1988, 1993). A study shown internationalization is the crucial factor for a firm to grow and develop economically and technologically (Syed Zamberi Ahmad and Fariza Hashim, 2007). Hence, it is very important for multinational companies to conduct a comprehensive examination of the various important factors that could influence the type of strategy that is to be selected for international market entry. 1.3 Objectives This research is dedicated to all local Malaysian companies who are looking at ways and means to internationalize their operations to a foreign market and would be of tremendous assistance to them in determining the correct strategic path and improve the understanding of the Asian MNEs characteristic. 1.4 Research Question According to the problem statement above, the author has formulated some question to meet the research objective. The question are : What are the key characteristics and success of their foreign ventures? What are the motives for internationalization? What are the entry strategies? What are the strategic advantages and traits? Research Contribution Government: Through this study, government can carry out some government policy to lead more firm success in their international proses in expanding their business. Firms: This study provides information to provide better understand characteristic and strategy for the purpose of internationalization which can increase the net profit of the firm. Economic: This study enable economist to better understand how development of economic on a country can help MNEs in their internationalization process. 1.6 Summary This study proposal consists 3 chapters. Chapter 1 provides the overview of the recent phenomena of internationalization, the problem statement, objectives, and question. Chapter 2 displays literature review by past research, followed by concept and theories, and research framework. Chapter 3 describes the research methodology, sampling technique, data collection, data analysis and research planning that use to analysis the finding in Chapter 4. CHAPTER 2 LITERATURE REVIEW 2.1 Introduction This chapter reviews the past studies about the concept and theory which included internationalization process, entry notes and process, eclectic explanation, foreign direct investment, regional and global internationalization processes, Uppsala model and Asian context. After that it follows by the research framework. 2.2 Concept and Theory 2.2.1 Internationalization processes Internationalization processes in emerging markets, as in international markets in general, take place in a stepwise manner (Jansson, 2007). Companies commit themselves through a gradual learning process. Learning is incremental and takes place by doing. Firms learn about doing business abroad, for example, learning about the conditions in particular markets. Companies tend first to establish themselves in geographically and culturally proximate markets and increase their commitment, starting with agents, and passing through sales companies to manufacturing companies (Johanson and Vahlne, 1977; Johanson and Wiedersheim-Paul, 1975). Research on the exports of mainly North American companies has reached similar results (Bilkey, 1978; Cavusgil, 1980; Czinkota, 1982; Reid, 1981). Such process theories are highly useful especially when studying international 66 H. Jansson, S. Sandberg / Journal of International Management 14 (2008) 65-77 business in CEE. Learning processes are essential s ince the company needs to adapt to an emerging and different business context, such as exists in the CEE (Meyer and Gelbuda, 2006). As noted by Sharma and Blomstermo (2003b) a basic assumption in internationalization process theory is that knowledge accumulation is continuous and dependent upon the duration of foreign operations. The longer firms have been involved in foreign operations, the more knowledge they accumulate about such operations. There is a relationship between knowledge accumulation and risk so that the more knowledge a firm has, the less uncertain they perceive the foreign market to be. Firms that lack knowledge about foreign markets even tend to overestimate risks. This corresponds to what Jansson (1989) found concerning establishment processes in a regional perspective, namely that the pace of investments in Southeast Asian countries accelerated, the more experienced the firms became in an area. Johanson and Vahlne (1990) stated that Uppsala model of internationalization indicated firms reveal an evolutionary process in internationalizing through a series of evolutionary stage. 2.2.2 Entry nodes and entry processes Firms entering emerging markets face several barriers according to Meyer (2001). These barriers include a lack of information, unclear regulations and corruption. According to traditional research on internationalization processes, market entries either take place through intermediaries such as agents or distributors or through a firms own representative in the exporting/importing country, mainly a subsidiary. In terms of research in this area, scholars have found that relationships are at the core of the internationalization process (Axelsson and Johanson, 1992; Ford, 2002; Hà ¥kansson, 1982; Hà ¥kansson and Snehota, 1995; Hammarkvist et al., 1982; Jansson, 1994, 2007; Johanson and Vahlne, 2003; Majkgà ¥rd and Sharma, 1998). According to the network approach to internationalization, entries into local market networks take place through establishing relationships. The international marketing and purchasing of products and know-how through a direct exporter/importer network means that a vertical network in the exporting region (e.g. a suppliers supplier network) is indirectly connected to another vertical network in the importing region (e.g. a buyers buyer network). This large vertical network will, in turn, be embedded in other regional and national networks, such as a financial network (Jansson, 2006, 2007). From a network perspective, establishment points in foreign market networks are defined as entry nodes. There are various routes into these networks, or nodes by which a firm can enter a network. Entries through trade either take place H. Jansson, S. Sandberg / Journal of International Management 14 (2008) 65-77 67 directly with customers or indirectly through intermediaries. Direct relationships, dyads, can be established between buyer and seller in the respective countries. Indirect relationships, triads, involve an outside party or other type of entry node, usually an intermediary such as an agent, dealer or distributor. Dyads can also be established through the entry mode FDI (a subsidiary in the importing country). Entry processes take place by building relationships to form networks in foreign markets. Irrespective of entry node, the development of international buyer/seller relationships tends to follow a five stage pattern (Ford, 1980, 2002; Ford et al., 1998). Each stage of the entry process can be described by a number of relationship factors, such as how the experience, commitment and adaptations of the parties increase across the stages and how the distance and uncertainty between them are reduced across the stages. The first stage includes the taking-up of marketing/purchasing activities before a formal relationship begins. The next three stages show how direct buyer-seller relationships within networks are established: from their beginning and to their deepening. Experience indicates the amount of experience the respective parties have with each other. They will gauge their partners commitment to the relationship, e.g. by the willingness to make adaptations. Distance is multifaceted and it can be split into social, cultural, technological, time and geographic distance. Uncertainty deals with the fact that at the initial stages, it is difficult to assess the potential rewards and costs of the relationship. In the fifth and final stage, the relationship is extensively institutionalized and habitual, with commitment being taken for granted. Based on Terpstra and Sarathy, 1991; and Baek, 2003, joint ventures with host governments and local partners in the host country were among the preferred entry strategies for international operational operation. Petronas in South Africa entered into a commercial alliance with Engen in 1996 as a strategic partner. The acquisition was to enable both companies to implement a shared growth strategy in Africa and the Indian Ocean Rim, while allowing the development of potential operational synergies between the two business entities (Padayachee and Valodia, 2002). 2.2.3 Eclectic Explanation Eclectic Paradigm is a proverbial known explanation of international production. Dunnings (1977, 1988, 1993, 1995). Eclectic Paradigm stated that the extent and pattern of international production is determined by: 1) Ownership advantages (for example, proprietary technology, products, expertise and skill) 2) Internalization advantages (for example, transaction costs reduction, maximize economic return), and 3) Location advantages of host and home countries These OLI (Ownership Location Internalization) variables listed above explain the reason internationalization occurs but overlook the dynamic process of internationalization. The Eclectic paradigm is provided by the Investment Development Path (Dunning, 1981, 1986) with a dynamic dimension, and relates the net outward investment of a country to its stage of economic development. Five stages of IDP ( Investment Development Path) Stage 1: At low level of economic development, there is little inward or outward investments. Stage 2: Inward investment becomes attractive, especially in import substitution projects as the country develops. Some outward investment may take place in neighborly countries which at lower stages of development. Most developing countries with some outward investments are at this stage. Stage 3: With economic development move forward, net inward investment declines while outward investment increases (relative to inward investment). Increasing of outward investment may take place in countries at lower IDP stages in order to overcome cost disadvantages in labour intensive industries and also to seek markets or strategic assets. Singapore, Taiwan and South Korea are said to be at this stage. Stage 4: As production being multinationalized, net outward investment becomes positive. Most developed countries are at this stage. Stage 5: The shift from advantages based more on factor endownment to those based on internalizing international market convergent outward and inward investment flows. Empirical research on Third World (including Asian) multinationals has given general support to the IDP concept (Dunning, 1986; Tolentino, 1993; Dunning Narula, 1996; Lall, 1996). Dunning and Narula (1996) acknowledge that country factors may influence the IDP pattern of a country, such as resource endownment, home market size, industrialization strategy, government policy, and the organization of economic activities. TWMNEs were smaller than their counterparts from developed countries and have limited number of overseas operations. The competitive advantages of TWMNEs were based on cost advantages (particularly labour cost) and greater responsiveness to host country needs which is different from western MNEs. They served market niches which were not covered by the traditional MNEs and so were not in direct competition with them. The major motivation for these FDI was protecting export markets rather than exploiting rent from proprietary technological know-how (or other ownership spe cific advantages characteristic of western MNEs) explained in theories, such as the eclectic paradigm of Dunning (1977, 1995). TWMNEs possessed first or second generation labour-intensive technologies and produced standardized products mainly for the domestic host country market which at stage 4 of IDP. Wells (1983) presupposes a pecking order hypothesis to suggest that the TWMNEs technologies could fill the technological gap between the advanced technology of developed country MNEs and the rudimentary technology of less developed countries (LDCs) in a pecking down order. Lall (1983) emphasized the flexibility and adaptability of TWMNEs technologies to be more suitable or appropriate to LDC situations. 2.2.4 Foreign Direct Investment (FDI) It may seem surprising that there is significant number of foreign direct investments by some firms from developing countries because it is usually credited to more developed countries. A number of studies indicate that FDI flows not only from the industrialized or well-developed countries, as well as developing countries. Scholars such as Lecraw (1981, 1993), Wells (1977, 1981), Lall (1983a, and 1983b), Kumar and Lim (1984), Ulgado et. al., (1994) are only some of those who have carried out empirical studies and researched FDI flows from developing country firms in the 1970s and 1980s. Comparisons between the nature of international expansion of firms from developing countries and the nature of those corporations that originated from developed countries are made in most of these studies (Dunning, 1986; Vernon-Wortzel and Wortzel, 1988). In general, it has been depicted that the competitive advantages of MNCs from developed country are derived from advanced proprietary technology or other superior resources (Yeung, 1994). While ability to reduce costs of imported technology through de-scaled manufacturing or smaller scale of production is focus of the competitive advantage from developing country MNCs were derived from their This is a process whereby technologies from industrialised countries are adapted to suit smaller markets by reducing scale, replacing machinery with manual labour, and relying on local inputs (Ramamurti, 2004). Outward direct investment from developing countries started to grow rapidly to a sizeable magnitude during the mid-1980. This became the main tool of developing country multinationals in demanding that their constituent firms prepare for the drastically international competition that they were about to face(Kumar, 1996, 1997). The emergence of new technologies in the late 1980s somehow decreases the interest in outward direct investment from developing countries subsided (Kumar, 1996; Oh et. al., 1998; Pananond and Zeithaml, 1998; van Hoesel, 1999). Pananond and Zeithaml(1998) and van Hoesel(1999) recounted that aggregate analyses of developing country MNEs conducted at the industry level get attention from scholars and yielded interesting results by the early 1990s. They concluded that there were marked differences in characteristics between developing country MNEs in the 1980s and 1990s. Scholars posited that these two groups of MNEs belonged to two different waves of development i n term of their respective historical backgrounds, nature of businesses, extent of the role of government in operations and transactions, geographical direction, and mode of internationalisation activity. MNEs in the 1980s are more concerned with cost competitiveness with their competitors (van Hoesel, 1999). In contrast, developing country MNEs in the 1990s placed greater emphasis on the development and reset business strategies due to the dynamic changing patterns of world business structure brought about by trade liberalisation and economic globalisation (Dunning et al., 1997). Besides this, they put more effort on technological competence as the source of competitive advantage (Pananond and Zeithmal, 1998). They noted that notwithstanding these differences, there existed several significant interrelated points of convergence between the two groups (Dunning et al., 1997; van Hoesel, 1999). 2.1.5 Regional and global internationalization processes In analyzing the early internationalization steps of smaller and less experienced companies, the internationalization process model by Johanson and Vahlne (1977) is regarded as a highly useful tool. In internationalization research, few studies have been conducted on higher level internationalization where companies are established in several countries and have fully-owned businesses (Meyer and Gelbuda, 2006). The more countries in a region a firm exports to, the more extensive is the regional internationalization process. The more regions a firm exports to, the more global is the internationalization process. New stages of internationalization are established when a firm extends its business from one major type of market to another or from one type of foreign environment to another. The main factor behind these stages is experiential knowledge, meaning that firms gradually build a knowledge base through operating in foreign markets. They learn from past experience by transforming this experience to useful knowledge. There are three types of such knowledge (Eriksson et al., 1997). Internationalization knowledge about how to perform international operations is an expression of a firms current stock of knowledge in the form of its resources and capabilities. The more novel the foreign environment, the more difficult it is for the firm to apply its current stock of knowledge to that foreign market. This means that there is a gap between a firms present internationalization knowledge and the knowledge the company has about how to do business in the specific foreign market, i.e. concerning its network experiential knowledge and institutional knowledge (Blomstermo et al., 2004). Based on a firms experiential knowledge process, internationalization processes are often divided into different degrees of internationalization. Johanson and Mattsson (1991) discuss the internationalization process for firms with various degrees of internationalization and propose that the process is mainly valid during the early stages of a firms internationalization: inexperienced firms tend to follow a traditionally slow and gradual pattern, while the internationalization of a more experienced company is less slow and gradual. 2.2.6 Uppsala model The Uppsala model (Johanson Weidersheim-Paul, 1975; Johanson Vahlne, 1977) provides an explanation of the dynamic process of internationalization of individual firms. The Uppsala model emphasize on the importance of gaining knowledge and experience about the characteristics of foreign markets along the internationalisation path, and helps MNEs reduced risks and levels of uncertainty in unfamiliar foreign environments before investing (Wiedersheim-Paul et al., 1978). The successive steps of increasing highly commitment are based on knowledge acquisition. Foreign activities started with export to foreign country through independent representative or agent, after that establish sales subsidiary and finally start production in the host country. The internationalization of the firm across many foreign markets was particularly related to psychic distance which included differences in language, education, business practices, culture and industrial development. Firstly, enter foreign market which closer in term of psychic distance, followed by subsequent entries in markets with greater psychic distances. Same goes to entry mode of foreign market. The incremental expansion of market commitment meant that the initial entry was typically some form of low commitment mode and followed by progressively higher levels of commitment. Obviously, commitment of the level of ownership in different markets was correlated with their psychic distance. The Uppsala model had received general support in empirical research (Welch and Loustarinen, 1988; Davidson, 1980, 1983; Erramilli et al., 1999) and its largely intuitive nature and evolutionary learning perspective made it attractive as an explanatory model. A related view regards learning was that TWMNEs built up their advantages through the accumulation of technology and skills. Lall (1983) emphasized on the localization and adaptation of technology to suit local markets by TWMNEs. Tolentino (1993) focused in term of the accumulation of technological competence in the expansion of firms from developing countries which was consistent with the resource-based view of building competitive advantage in strategic management. The accumulation of knowledge and competence especially its knowledge of developing markets and not so much its technology by the CP Group in Thailand was the key to its internationalization. There are also differences between the CP Group and Western MNEs (Pananond and Zeithaml, 1998). Mathews (2002, 2006) postulated that emerging firms could foster internationalization via leverage of their contractual linkages with other foreign firms to acquire resources and learning new capabilities. He indicated that this explanati on complemented the OLI framework and could be used to explain the rise of such latecomer firms which he dubbed as Dragon multinationals. 2.2.7 Asian Context Yeung (1999); Zutshi Gibbons (1989) portrayed that western theories on internationalization have neglect the active role played by the state and overlooked the institutional or contextual perspective in the internationalization of Asian. Asians state always plays a direct and active role in the internationalization of its MNEs. For example, the Singapore government played a key and direct role in the promotion of outward FDI (e.g., growth triangles, industrial parks in foreign countries), particularly from the early 1990s in its regionalization programs (Pang, 1994; Tan, 1995; ESCAP/UNCTAD, 1997). Incentives and other programs for instance tax incentives, finance schemes, training also provided to foster the rapid development of local entrepreneurship in the regionalization efforts. In Malaysia, the government took a very active role in promoting the internationalization of Malaysian firms. Investment promotion missions abroad were organized and often lead by the Prime Minister. The government provided incentives including tax abatement in 1991 and subsequently full tax exemption in 1995 for income earned overseas and remitted back to Malaysia. An overseas investment guarantee program was instituted. Malaysian government instructed firms to defer non-essential overseas investment in order to reduce the impact of the effects of the 1997 Asian financial crisis. In the Asian context, the state has played a very active and direct role in promoting the internationalization of its national firms. This is much different with the western context, where the role of the state is benign and indirect. 2.3 Summary This chapter first discussed the internationalization process in terms of entry notes and process, eclectic explanation, foreign direct investment, regional and global internationalization processes, Uppsala model and Asian context. The following chapter discusses the research method, survey development, and sample selection CHAPTER 3 METHODOLOGY 3.1 Introduction This chapter provides an overview of the research method. It starts by explaining the appropriateness of the research method. Then discusses the research design which consists of seven steps: questionnaire development, literature review, proposal, data collection, data analysis, discussion and conclusion, and write-up. Next the data collection and sample selection is discussed with reasons for each of the decisions involved. The next section discusses the statistical methods. Lastly, a Gantt chart will be use to estimate the times use in each activity. 3.2 Sampling Technique A case study approach will be using in this paper. It tends to provide in depth information and intimate details about the particular case being studied. This approach was used to collect comprehensive and holistic data (Eisenhardt, 1989; Internationalization Strategies of Emerging Asian MNEs 491 Yin, 1994) about firms that have internationalized their operations over time. The focus here is on MNEs from Malaysia (a fast developing country). Case studies mean that the research investigates few objects in many respects (Wiedersheim-Paul, Eriksson, 1991). Case studies are most suitable if you like to get a detailed understanding about different kinds of process (Lekvall Wahlbin, 1987). The researches may, for instance, choose a line of business and an enterprise, and conduct an in depth investigation (Wiedersheim-Paul, Eriksson, 1991). Yin (1994) states, that when the form of the questions is why and how, the case study strategy is most likely to be appropriate. The research problem I have investigated was how the internationalisation process of a MNEs when entering to foreign market can be characterised , which was divided into four research questions. 3.3 Data Collection 3.3.1 Secondary data Eriksson Wiedersheim-Paul (1997) points out that secondary data is data, which already has been collected by someone else, for another purpose. Statistics, and reports issued by governments , trade associations, and so on, are some sources of secondary data (Chisnall, 1997). The annual report and the enterprises homepage, are another sources of secondary data (Wiedersheim-Paul, Eriksson, 1991). Secondary data research should always be carried out before doing any field survey (Chisnall, 1991). When I had defined the research area, I started to search for relevant literature. The databases that I have used to find relevant literature are EBSCOhost, Science Direct, Libris, ABI/INFORM, and Helecon. The keywords used when searching the databases were international business, Malaysian MNEs, internationalization, strategies, mode of entry. These words were co

relgion 101 papal states :: essays research papers

There were mixed reactions among Arab states to a contentious Jordanian proposal, which aims to revise the long-standing Arab strategy to normalise relations with Israel by sidestepping direct reference to the Jewish state's return of occupied Arab territories. But, Syria is expectedly raising concerns over the Jordanian plan, which drops specific references to Israel's return of Arab land seized during the 1967 Middle East war - including Syria's Golan Heights - as part of any full normalisation with the Arab state. The proposal by Jordanian King Abd Allah II is expected to dominate the two-day Arab League summit starting on Monday as it aims to amend a Saudi Arabian-crafted strategy, which was endorsed by Arab leaders at a 2002 summit in Beirut. The Saudi plan, known as the "Arab initiative," offered Israel full ties with Arab states in return for the handover of Arab territories, including the Palestinian West Bank and Syria's Golan Heights. Reservations Arab foreign ministers convened on Saturday for official talks to finalize the two-day summit's agenda, which Abd Allah's proposal is expected to feature prominently on. Damascus has reservations over Jordan's proposal An Arab delegate, speaking on condition of anonymity, said that 13 of the Arab League's 22 members are showing implicit support for the Jordanian proposal, which some see as a way to compel Israel to meet its requirements under the US-backed road map for regional peace. Nine Arab states, including Syria, have reservations over the current draft. Diplomats have asked the Jordanian and Palestinian foreign ministers to come up with a new drafting for Abd Allah's proposal in an apparent bid to make it acceptable to all sides. Reword Egyptian Foreign Minister Ahmad Abu al-Ghait said on Saturday that Jordan wants to reword, not change, the 2002 Arab initiative to make it more easily understood by the international community. Syria is worried the draft effects their right to the Golan Heights †The Jordanians are saying that through their consultations with the international community they heard them saying that the Arab initiative is too long and has too many details," Abu al-Ghait told The Associated Press. â€Å"This means that many of the international sides couldn't grasp the content of this initiative because of its length and its details.† Abu al-Ghait said any â€Å"rewording of the initiative ... will need a new Arab consensus. We might succeed in this.† The Saudi-crafted Arab initiative calls for the Israeli withdrawal from East Jerusalem, the West Bank, Gaza Strip and Syria's Golan Heights, as well as the creation of a Palestinian state and right of return of refugees.

Common Issues in Romanticism Essay example -- Romanticism Essays

The key figures in Romanticism addressed many of the same issues. Such connectivity is marked in William Blake’s poems â€Å"Infant Sorrow† and â€Å"On Another’s Sorrow†, and Mary Shelley’s Frankenstein. Shelley, like Blake, argues for continual development of innocence to experience, and through the character of Victor Frankenstein’s creation, Mary Shelley suggests the equilibrium of innocence and experience offers insight into the human condition. The shift is distinguished by what Blake states in plate 3, stanza 2 of â€Å"The Marriage of Heaven and Hell†: â€Å"Without contraries is no progression† (112). Any event, idea, or emotion that is contrary to the innocent human conscience is a progression to experience. In Frankenstein, the balance and shift of innocence and experience is evidenced by the creature’s observance of the De Lacey’s, the misfortune that befalls him in his wandering, and finally, the progr ession of experience reaches maturation through murder. A careful analysis of the creature’s initial human interaction shows a steady shift from innocence as the creature experiences the world around him. Frankenstein’s creation is simple and child-like in conscience yet aged and abhorred in appearance. Although a paradox, the creature is akin to an adult child: innocent and naà ¯ve, but forced to experience the world. Blake recognizes this concept in his poem â€Å"Infant Sorrow† in which he states, â€Å"Into the dangerous world I leapt: / Helpless, naked, piping loud, / Like a fiend hid in a cloud† (ll. 2-4). One rarely thinks of a newborn baby as a â€Å"fiend†. It seems more believable to observe the grotesque form of the creature as a fiend. However, both the infant and Frankenstein’s creation entered the world with veiled and â€Å"clouded† eyes, unable ... ... for his actions, likewise, humans continue to, at the least, coexist with their fellow man, abiding by laws and regulations. It is hopeful then that in the world today, the balance of innocence and experience is not entirely overturned. Works Cited Blake, William. â€Å"The Marriage of Heaven and Hell†. The Norton Anthology of English Literature: The Romantic Period. Eighth Edition. New York: W. W. Norton & Company, 2006. (111-120). Blake, William. â€Å"Infant Sorrow†. The Norton Anthology of English Literature: The Romantic Period. Eighth Edition. New York: W. W. Norton & Company, 2006. (95). Blake, William. â€Å"On Another’s Sorrow†. Classical Poetry: Songs of Innocence. Passions in Poetry Foundation: 11 Nov. 2008. . Shelley, Mary. Frankenstein. Second Edition. Boston/New York: Bedford/St. Martin’s, 2000.

Drunken Santa :: essays papers

Drunken Santa Drunken Santa is a work that creates a miracle of equilibrium. What seemed like a clash of an opposite spectrum's colors became the unlikely harmony in this painting. Jaisini's artistic vision here is formed from two components of physical and emotional states of being. Freezing and heating serve as a symbol to a human need for warming up from the chill of solitude by means known to people at all times. The artist pursues his art philosophical quest for worldly knowledge that had left its traces in many of his works. A line of composition literally ignites the painting's surface with the movement. The color of this work is "phosphorescent," and it create the different planes if the subtle color nature. The warm color of purple supports the hot color of Santa's figure and an exotic fish above Santa. This hot color may represent the so-called material universe, the world of the gross senses that can be observed in a sober state. The cold, arctic blue color represents the unknown, the world of a deep state of drunkenness where real is unreal and otherwise. The only hard reality is the self, which never changes in any state. And maybe that is why Jaisini favors the painting's main hero, Santa, to possess the vivacious color of fire. Jaisini chooses this color of fire to manifest the self and the cold cerulean, cobalt and ultramarine to renounce self as a mortal entity surrounded by the eternal unknown. While Santa drinks his feelings of frigid loneliness vanish. And so, he gets a company of some almost hallucinatory nature. A shark, a ghostly image, a profile of another prototypical drunk who is not accidentally situated in a horizontal position. An amalgam of the several female figures that consists of a woman in stockings, a nun, a big-breasted silhouette that create a shadow between. A heat can be sensed around the hot colored Santa who has lost his beard and is holding a glass of red wine. He shows his thumb that may be just a polite substitution for the middle finger sign. The colors of the work are balanced by a virtuoso composition of a cubist character. The picture's space is divided endlessly. More images start to appear. The world of "

Joining the Military Essay

Joining the military can be a great experience for some people, but for others it can be a terrible mistake. People enlist in the military for a variety of reasons. Some soldiers enlist to serve their country, just for the challenge and adventure, to see parts of the country or world that they wouldn’t have otherwise gotten the chance to see, to stay out of trouble, to pay for a college education, or simply because it is a steady income in a hard economy. Joining the military for me was both a great experience and a terrible mistake. I first enlisted in the Army National Guard when I was junior in high school. I joined because I thought that it would be a great way to pay for my education and still experience all the adventure of the military while serving my country at the same time. I went to Oklahoma and Virginia for training, got to see Iceland, an island in Portugal, and Germany two times, and ended up stationed at Fort Drum when I went active duty. Getting to meet people from all over and learning the variety of skills needed to be a soldier were some of the greatest experiences that I have ever had. Joining the military can end up being a pretty big mistake for many. When I joined I was really didn’t understand what a person has to give up to be a soldier. My obligations to my state and country prevented me from getting into college when I had originally planned. As a result I ended up not continuing my education for another thirteen years. Realizing that a military family isn’t so much a family unit as it is a single parent home with an occasional helper was the point when I knew that becoming a soldier was a mistake for me. I have learned that the reasons for joining the military may vary but don’t matter. It is more about what each individual person is willing to give up that ultimately determines the experience that one has.

Motivation and Tourism

As it is a man compensate to exhaust a spend, this survey discus the motivating reasons and the appeal f r let onineors why people choose their holidaymaker terminal. The promulgate leave behind start with definitions of tourism and motivation, followed secure a few theories of motivation, and ending with a conclusion. Theses theories be relating to the drudge of man-to-man/s to embark on a pass, and the protract of the tourist destination.Definitions According to the UK touristry beau monde and cited in the BTEC National Travel and touristry book, by Elise James, Joanne Thirla way of smell and Ursula Woodhouse. (2007, pg3) Their defection of tourism is as follows. The temporary, short-term movement of people to destinations immaterial the places where they norm eithery live and work, and their activities during their stay put at these destinations. motivating as defined in the in the book Tourism Principles and Practices. By Cooper, Fletcher, Gilbert, Shepherd and Wanhill, 2nd edition. (1998, pg32) Is Derives from the word set off, which is to rail a person to act in a real way, or to stimulate inte tolerate.Definitions of Tourism and MotivationTherere as many contrastive causas of holidays and tourists destinations, as in that respect atomic number 18 people. Personality traits throw away a plenitude to account for in the decision reservation puzzle erupt, of where we choose to go on holiday. Mr Stanley Plog in 1974 (Holloway 6th ed, 2002) developed a theory, which classified the general US public into both desictive groups. Psycho-centric A tourist that is more bear on with himself or herself, more than often is anxious ab kayoed the security of moveling. They enjoy a resort or group softwargon product style holiday. Would more than likely be a return visitor for the entertain of familiarity. Example of this would be a box style holiday to Spain. Were the tourist has purchased the embark and accommodation as ace product. AllocentricA tourist that seeks excitement, novelty, and most(prenominal)ly likes being out of his or hers comfort zone. They would have no qualms of travelling alone to or from a destination by them selves, or stay out emplacement the resort or hotel environment. Examples of this would be a backpacker, staying at a hunting lodge in Budapest. Not only is it a non-English speaking country, it is also out slope of the European Union. Making it more elicit to the true allocentric.As this is only a theory, one cannot on the nose place any torso into both boxes. So of course in practice, holidaymakers fall aboutwhere in between these to extreme examples as mid-centric. Plogs theories are also discusses in Tourism Principles and Practices (Cooper et al, 1998 pg35) they suggest his theories are hard to follow up inside the tourist industry. Tourist give travel with diametrical motivations on different occasions.They also follow on to suggest, that out of these indivi duals that gravitate more towards the psycho-centric are of a lower incomes. This in turn would desexualize the style or type of holiday they would go on. There motivations wouldnt be different entirely the tourist destination. It would just specify that having a domestic holiday would be more charitable to save money. The family efficiency opt for a low-key holiday like release camping in the Lake District, or to a only whenlins seaside resort.Incomes are one of the major factors in decision do where to travel. As we have briefly discussed a budget holiday and Plogs theories. He would suggest that on the former(a) side of the scale tourists with more expendable money would certainly have different destinations in mind. But with money comes affordability, witch appearance and trends are a by-product of. scarcely like keeping up with the up-to-the-minute cloths fashions, is the appeal of some destination. This would be the chase, and not wanting to stereotype here. But f or or the young generation there leave ceaselessly be the seduction of the foursome Ss. This depart most definitely appeal to most 18 to 35, which are looking to partake in an atm that is more carefree. Escaping to destinations that are away from the judiciousness in their local environment. This trend will device tourist to places like Ibiza, which offers sun, sea, anchor and sex.But like all cloths they go out of fashion and tastes change. As Holloway says, that all products, including tourism will experience a life cycle of growth, maturity, saturation and in conclusion decline. Being young is just one place in the roulette wheel of Life. It is human nature to evolve, to grow in all areas of life and seek transgress things. Wells and Gubar (1966) (TPP 2nded Cooper et al pg 41 1998) cauterised the life cycle of families in the USA, from unmarried man to retired stage as seen in the graph. ( look 3) What was appealing to a young person will certainly change when one ha s more obligations, to their employer and perchance their family. They theorize that as an individual moves through the life cycle there brings and wants as a tourist will change.The tourist postulate are the psychological contracts they are not the essential needs of survival. In explaining these need better Abraham Maslow (1966), came up with a hierarchy of needs. (See Figure 1) The graph shows that if more of the introductory and Safety needs are achieved. Well whence move on to more Social, Esteem, and Self-actualisation needs. These needs are for well being, such as the need to relax, to have fun and to be in love. The need maybe is to turning away their daily route, or to have want better weather.These are like the push factors or the motivators, to take the time to have a holiday. Figure 4 shows a range of other motivators for overseas travels from the UK. As explained in Holloways book (Holloway 6th ed 2002) these Push Factors are the General Motivators that bristl e out of our individual perception, of what will occupy our needs. He also talks nearly general motivators as a large reason to travel, and is the start of the decision making process. Examples of this would be someone seeks change, maybe from urban environment. They mite looking at going away to the rural setting, perhaps a weekend in the Cotswolds, (See Figure 5) or vice versa.Holloway also follows to say that along with General there is a special(prenominal) motivation to travel. The consumer has, in some way got a perception of the destination in mind, will meet their specific needs. The destination in mind might have health befits to the tourist. The friendship to Bath watering place might just be, to have a day of relaxation to rest the body in the warm water. The tourist enjoys Broadway musical, so a trip to Londons West end it could be (See Figure 6). Or there is a certain attraction thats pulling yourself or maybe your family.Like a trip to Disneyland, were the attrac tion is the destination. Places like these are very convenient, as the accommodation is nearby or on site of the attraction. May be it the style of transport that has your attention, like a coach trip on the Glacier Express? What invariably the motivation there is a process to explain it, and it is lustrated in this simple turn tail cart. (See Figure 4) The chart briefly out lines the consumers needs, the attraction of the destination, then ending motivation. coating Just start off by saying that yes it is a human right to travel, and have time off from work. But being a tourist to some people is a luxury they just cant afford. There is always going to be two most important factors of be coming a tourist, thats time and money. If either one of these two things is lacking, it makes it very difficult to involve in any tourist activity. But in saying that one doesnt need to travel far to become a tourist in ones own country. aspect back at plogs theory, It would suggest that one i s more allocentric domestically, than international.The motivations in relation to travel is very diverse, the push to go on holiday is always going to exist. Its the biggest industry in the world node and consumers are only going to increase. The pull of the destination will change as we all move trough our lives. Our life choices, our attitudes, and the perceptions of other destinations will change. Through the media and other people infusions, will shape the type of holidays we choose. The appeal in going to a certain destinations is forever going to up to the individual. And just like the freedom of rest and leisure, we have a freedom of choice.