The organizations have been focused towards adopting key business approaches and practices that would contribute towards their improved revenue as well as profitability in the marketplace. In order to achieve such strategic goals to revenue and operational growth, it is required by the management to identify and understand the changing market needs, as well as the stakeholder preferences and accordingly the internal business or operational strategies, are to be defined. Considering such need, it can be reflected that in the present marketplace there is a need for the business organization to focus towards the increased social preferences and need towards sustainability and societal development along with that of the business growth. The approach to sustainability ensures that the business organization have a balanced approach towards society, business as well as the environment. Further to strengthen the approach to sustainability international organizations including United Nations (UN) has defined several key sustainable Continue reading
International Business Management
Trade Theory of Independence, Interdependence and Dependence
Independence — Interdependence — Dependence Theory of International Trade tries to read trade patterns and policies of countries based on their degree of independence or dependence or interdependence on rest of the world. See this is a continuum: Independence — Interdependence — Dependence. The polar extremes are Independence at one pole and Dependence at the other. Independence stops trade, while dependence boosts trade. Independence: Independence is being self-reliant. Well one cannot be self-reliant. Yet one country may choose to be independent and the cost of such obstinacy is self-denial of life’s luxuries, comforts and necessities that can be afforded without difficulty. It may be a government policy to remain independent. This austerity could cost the country heavily. Hence governments plan independence sans difficulty for citizens. Few countries in the world maintain a vast reserve of essential minerals and even don’t touch own oil fields, so that in future if foreign Continue reading
Why Marketing Strategies of Global Companies Sometimes Fail
‘The world today is a global village’ it’s a fact. But the global village still has some tribes and it is very important to keep all the tribes happy if we need to have good relationship with all of them. Since the globe is accessible to everyone, it is also vital to design the marketing strategy and develop it in the perspective of variations in the culture, traditions, taste, weather and norms of a country. One of the most striking trends in business has been growing internationalization of the business. Companies are going global but they have to keep their customers satisfied domestically and internationally. The internationalization affected the business strategies and the companies are in the rethinking process to counter the problems in the global marketing strategies. Marketing is no exception to this. Attitude of the customers in this regard is very important for designing the marketing strategy, especially Continue reading
Business Environment Concept – Meaning, Definition, Features and Importance
All living creatures including human beings live within an environment. Apart from the natural environment, environment of humans include family, friends peers and neighbors. It also includes man-made structures such as buildings, furniture, roads and other physical infrastructure. The individuals do not live in a vacuum. They continuously interact with their environment to live their lives. Just like human beings, business also does not function in an isolated vacuum. Businesses function within a whole gambit of relevant environment and have to negotiate their way through it. The extent to which the business thrives depends on the manner in which it interacts with its environment. A business, which continually remains passive to the relevant changes in the environment, is destined to gradually fade-away in oblivion. To be successful business has not only recognize different elements of the environment but also respect, adapt to or have to manage and influence them. The Continue reading
Concept of National Innovation Systems
There is no widely agreed definition of national innovation systems. National innovation systems are built on the assumption that understanding the interconnectedness of the actors engaged in innovation is crucial to enhancing technical performance. Innovation and technological advancement are the outcomes of a multifaceted network of connections between actors who produce, transmit, and consume various types of knowledge. The manners in which these actors interrelate with one another as components of a social system of knowledge consumption and generation, and also the technology they employ, have a significant influence on a country’s creative performance. The most prevalent actors are public research institutions, universities, and commercial enterprises, as well as the individuals who work for them. Equipment acquisitions, cross-patenting, personnel exchanges, joint research, and a number of other methods can be used to establish links. The analysis of national innovation systems emphasis on knowledge flows. The focus of analysis is increasingly Continue reading
Analysis of Porter’s Diamond Model of National Advantage
Michael Porter introduced the diamond model of national competitive advantage (1990) to explain why a number of countries are more competitive than others and why a number of businesses within the countries are more competitive. Porter’s Diamond Model proposes that the national home base of an industry plays an important role in achieving an advantage on a universal scale. This home base contributes the essential factors that will support the organisations in building advantages in global competition. Porter identified four determinants in attaining a national competitive advantage he concludes that a combination of the four determinants within a nation has an enormous influence on the competitive strength of the firms located there. Porter argues that competitive industries take the form of specialized clusters of home based firms. Clusters are correlated through vertical relations such as buyers integrating with suppliers or through horizontal relations through customers, technology, skills, distribution channels etc. Continue reading