6965662 lecture 3 internal factors

8/4/2019 6965662 Lecture 3 Internal Factors

1/16

Lecture 3

FACTORS EFFECTING

INTERNATIONAL BUSINESS


2/16

Environment of international business

INTERNALENVIRONMENT

EXTERNALENVIRONMENTINTERNATIONAL BUSINESS


3/16

INTERNATIONAL BUSINESS

INTERNAL ENVIRONMENT

Promoters /Shareholders ValueMissions /objectivesPhysical assets/facilities

Co. image/brand equityHuman resourcesFinancial capabilitiesTechnological capabilitiesMarketing capabilities

EXTERNAL ENVIRONMENT

ECONOMICLEGAL/GOVT.

CULTURE

POLITICAL


4/16

INTERNAL FACTORS

VALUE SYSTEM

MISSIONS AND OBJECTIVES

MANAGEMENT STRUCTURE

HUMAN RESOURCES

COMPANY IMAGE AND BRAND EQUITY

PHYSICAL ASSETS AND FACILITIES

R&D AND TECHNOLOGIALCAPABILITIES

FINANCIAL FACTORS


5/16

Value system A value system refers to how an

individual or a group of individualsorganize their ethical or ideologicalvalues.A well-defined value system is a moralcode.

A personal value system is held by andapplied to one individual only.

A communal value system is held by and

applied to a community/group/society.Some communal value systems can takethe form of legal codes or law.
http://en.wikipedia.org/wiki/Ethicalhttp://en.wikipedia.org/wiki/Ideologicalhttp://en.wikipedia.org/wiki/Valueshttp://en.wikipedia.org/wiki/Moral_codehttp://en.wikipedia.org/wiki/Moral_codehttp://en.wikipedia.org/wiki/Lawhttp://en.wikipedia.org/wiki/Lawhttp://en.wikipedia.org/wiki/Moral_codehttp://en.wikipedia.org/wiki/Moral_codehttp://en.wikipedia.org/wiki/Valueshttp://en.wikipedia.org/wiki/Ideologicalhttp://en.wikipedia.org/wiki/Ethical


6/16

Corporate value systems

Fred Wenstp and Arild Myrmel have proposed astructure for corporate value systems that consists ofthree value categories:

The first value category is Core Values, which prescribe

the attitude and character of an organization, and areoften found in sections on Code of conduct on its webpage.

Protected Values are protected through rules, standardsand certifications. They are often concerned with areassuch as health, environment and safety.

Created Values, is the values that stakeholders,including the shareholders expect in return for theircontributions to the firm. These values are subject totrade-off by decision-makers or bargaining processes.
http://en.wikipedia.org/wiki/Value_systemshttp://en.wikipedia.org/wiki/Code_of_conducthttp://en.wikipedia.org/wiki/Protected_Valueshttp://en.wikipedia.org/wiki/Protected_Valueshttp://en.wikipedia.org/wiki/Code_of_conducthttp://en.wikipedia.org/wiki/Value_systems


7/16

Core values of Tata group

Five core values

The Tata Group has always sought to be a value-driven organisation. Thesevalues continue to direct the Group's growth and businesses. The five coreTata values underpinning the way we do business are:

Integrity: We must conduct our business fairly, with honesty andtransparency. Everything we do must stand the test of public scrutiny.

Understanding: We must be caring, show respect, compassion andhumanity for our colleagues and customers around the world, and always

work for the benefit of the communities we serve. Excellence: We must constantly strive to achieve the highest possible

standards in our day-to-day work and in the quality of the goods andservices we provide.

Unity: We must work cohesively with our colleagues across the Group andwith our customers and partners around the world, building strongrelationships based on tolerance, understanding and mutual cooperation.

Responsibility: We must continue to be responsible, sensitive to thecountries, communities and environments in which we work, alwaysensuring that what comes from the people goes back to the people manytimes over.


8/16

Wipro In the 1970s Wipro defined a core of values and which its

success is built: HUMAN VALUES (concerning employees and customers)

Wipro wont go into businesses that harm people (liketobacco and liquor)

There should be no shouting at each other .

THE LACK OF HIERARCHY

There are no designed parking spaces, so whoevercomes first gets the best parking space .

No one is called Sir by someone else .

The chairman stands as a model all employees, it meansdo what I do instead of do what I say

INNOVATIONS Wipro always tries to improve their products and to develop

new products and better solutions

VALUE FOR MONEY

i.e. good quality of every product and service


9/16

MISSIONS AND OBJECTIVES

Common Operating Objectives ofOrganizations

Profitability

Market share High-quality workforce

Cost efficiency

Product and service quality

Innovativeness

Social responsibility


10/16

Infosys Mission Infosys International Inc. is

dedicated to providing the people,services and solutions our clientsneed to meet their informationtechnology challenges and businessgoals .To do this, we:

Work to understand the needs andrequirements of our clients beforeproposing a solution

Develop responsive proposals thatprovide cost-effective solutions toour clients needs

Deploy the right mix of people andproducts to deliver value-addedservices and solutions to our clients

Follow-up on the quality of ourservices and solutions to our clients

Appreciate the trust that our clientsput in us as we work with them toimprove their business and

information technology.


11/16

The process of identifying and attracting aqualified pool of applicants for vacantpositions.

Current Employees Recent College Graduates

Local Managerial Talent

Process of screening and hiring the best-qualified applicants with the greatestperformance potential.

Human Resources


12/16

Ethnocent

ric

Polycentric

Geocentric

Staffing PolicyThe customary meansby which a company

staffs its offices.

International Staffing Policy

Regiocentric


13/16

COMPANY IMAGE AND BRANDEQUITY

COMPANY IMAGE MATTERS WHILE-

1)RAISING FINANCE

2)FORMING JOINT VENTURES/ALLIANCES

3)LAUNCHING NEW PRODUCT


14/16

TATAS GLOBAL FOOTPRINT

ACQURINGCOMPANY

ACQUIREDCOMPANY

DEAL SIZE

TATA STEEL CORUS $12.1 bn

TATA TEA TETLEY $407 mn

TATA

MOTORS

DAEWOO

COM.VECI.

$102 mn

TATACHEMICALS

BRUNNERMOND

$177 mn

SOURCE-Business World,14,JAN,2008


15/16

Tata NANO


16/16

Building Global Brands
http://en.wikipedia.org/wiki/Image:Famous_brands.png

6965662 lecture 3 internal factors

Documents