Push and Pull Factors in Business

Push and Pull Factors in Business Companies decide to go global and enter international markets for a variety of reasons, and these different objectives at the time of entry should produce different strategies, performance goals, and even forms of market participation. However, companies often follow a standard market entry and development strategy. The most common is sometimes referred to as the â€Å"increasing commitment† method of market development, in which market entry is done via an independent local partner. As business and confidence grows, a switch to a directly controlled subsidiary is often enacted. This internationalization approach results from a desire to build a business in the country-market as quickly as possible and by an initial desire to minimize risk coupled with the need to learn about the country and market from a low base of knowledge. International markets evolve rapidly and very often companies struggle to keep up in terms of their strategy. It is therefore reasonable to deduce that many companies’ international operations will consist of a collage of country market operations that pursue different objectives at any one time. This, in turn, suggests that most companies would adopt different entry modes for different markets. More commonly, however, is for companies to evolve a template that is followed in almost all markets. This usually starts with market entry via an indirect distribution channel, usually a local independent distributor or agent. Factors leading to wide acceptability of international business: The factors leading to the wide acceptability of international business are: Globalization of economics: The policy of liberalization was adopted which led to the globalization of various economics including the former communist countries and socialist pattern of the society. The globalization of economics has been instrumental in the growth of international business. Rapid technological advancement: Many firms have emerged up with innovated products or with improved process technology. With the demand for such products and technology being price-inelastic, these firms have moved abroad in order to reap large profits. The development of information technology has bought different countries closer and has encouraged firms to move abroad with the minimum of difficulties. Establishment of WTO: In today’s highly competitive globalized business environment, WTO is indispensable enables a country to attain the status of MFN clause which is required for scaling the international competitiveness and it implies that any concession given to any nation becomes available to all the member countries. Enlargement of European Union: Since 1991 the membership of EU has increased. It increased from 15 members to 27 members. This has also led to the promotion of internationalization of business. Increase in Competition: With increasing competition, firms have preferred not only to source raw material and intermediate goods from the least-cost country but also to set up their units in different countries, which minimises the cost of operation and reduces financial risk. The growing concept of cost minimization and risk reduction, with a view to surviving in a competitive environment, has led to rapid growth of the internationalization process. Higher growth rate of GDP in developing countries: Higher growth rate of GDP of China, India, South Korea, Singapore, Malaysia, Thailand, Brazil and Mexico and other developing countries has also been one of the significant factors for changing scenario of international business. Increase in business alliance In degree and variety: During last 15 years international business alliances, joint ventures, mergers, amalgamations and takeovers have occurred in the world by the companies of different countries. This has further led to widening of international business. Increase in educational and career orientation opportunities: These factors resulted in enhancement of opportunities for higher value addition in developing countries. The developing countries started attracting multinational companies to establish their businesses in their countries. Why companies engage in international business? There are several drivers of international business. The driving forces that motivate companies to go global can be classified into pull forces and push forces. The pull forces are proactive which pull the business to foreign markets. The push forces on the other hand are reactive forces which promote the companies to go international. Pull/ Proactive Forces- Attractiveness of the Foreign Markets: Profit advantage due to increase in volume: For companies, mostly in the developed countries, which have been operating below their capacities, the developing markets offer immense opportunities to increase their sales and profits. Low wage/ cheap labour attraction: Many multinational companies (MNCs) are locating their subsidiaries in low wage and low cost countries to take advantage of low cost production. Taking advantage of growth opportunities: MNCs are getting increasingly interested in a number of developing countries as the income and population are rapidly rising in these countries. Foreign markets, in both developed country and developing country, provide enormous growth opportunities for the developing country firms too. Growth of regional trading blocs: Regional trading blocs are adding to the pace of globalization. WTO, EU, NAFTA, MERCOSUR and FTAA are major alliances among the countries. Trading blocs seek to promote international business by removing trade and investment barriers. Integration among countries results in efficient allocation of resources throughout the trading area, promoting growth of some business and decline of others, development of new technologies and products, and elimination of old. Declining trade and investment barriers: Declining trade and investment barriers have vastly contributed to globalization. The free trade regime, business across the globe has grown considerably. Goods, services, capital and technology are moving across the nations significantly. Push/ Reactive Forces- Compulsion of the Domestic Market: Saturation of domestic demand: The market for a number of products tends to saturate or decline in the advanced countries. This often happens when the market potential has been almost fully tapped. For example, the fall in the birth rate implies contraction of market for several baby products. Businesses undertake international operations in order to expand sales, acquire resources from foreign countries, or diversify their activities to discover the lucrative opportunities in other countries. Scale economies and technological revolution: Economies of scale are reductions in unit production costs resulting from large-scale operations. The technological advances have increased the size of the optimum scale of operation substantially in many industries making it necessary to- have foreign market, in addition to the domestic market, to take advantage of scale economies. Technological revolution: Revolution is a right word which can best describe the pace at which technology has changed in the recent past and is continuing to change. Significant developments are being witnessed in communication, transportation and information processing, including the emergence of the internet and the World Wide Web. Domestic recession: Domestic recession often provokes companies to explore foreign markets. One of the factors which prompted the Hindustan Machine Ltd. (HMT) to take up exports very seriously was the recession in the home market in the late 1960s. Competition as driving force: Competition may become a driving force behind internationalization. There might be intense competition in the home market but little in certain foreign countries. A protected market does not normally motivate companies to seek business outside the home market. Government policies and regulations: Government policies and regulations may also motivate internationalization. There are both positive and negative factors which could cause internationalization. Many governments offer a number of incentives and other positive support to domestic companies to export and to invest in foreign investment. Improving image of the companies: International business has certain spin-offs too. It may help the company to improve its domestic business; international business helps to improve the image of the company. There may be the ‘white skin’ advantage associated with exporting- when domestic consumers get to know that the company is selling a significant portion of the production abroad, they will be more inclined to buy from such a company. Strategic vision: The systematic and growing internationalisation of many companies is essentially a part of their business policy or dtrategic management. The stimulus for internationalisation comes from the urge to grow, the need to become more competitive, the need to diversify and to gain strategic advantages of internationalisation. Importance of International Business: High living standards: Comparative cost theory indicates that the countries which have the advantage of raw materials, human resources, natural resources and climatic conditions in producing particular goods can produce the products at low cost and also of high quality. Increased Socio-Economic Welfare: International business enhances consumption level, and economic welfare of the people of the trading countries. For example, the people of China are now enjoying a variety of products of various countries than before as China has been actively involved in international business like Coca-Cola, McDonald’s range of products, electronic products of Japan and coffee from Brazil. Wider Market: International business widens the market and increase the market size. Therefore, the companies need not depend on the demand for the product in a single country or customer’s tastes and preferences of a single country. Reduced effect of Business Cycles: The stages of business cycles vary from country to country. Therefore, MNCs shift from the country, experiencing a recession to the country experiencing ‘boom’ conditions. Thus, international business firms can escape from the recessionary conditions. Reduced risks: Both commercial and political risks are reduced for the companies engaged in international business due to spread in different countries. Large scale economies: Multinational companies due to wider and larger markets produce larger quantities, which provide the benefit of large-scale economies like reduced cost of production, availability of expertise, quality, etc. Potential untapped markets: International business provides the chance of exploring and exploiting the potential markets which are untapped so far. These markets provide the opportunity of selling the product at a higher price than in domestic markets. Provides the opportunity for and challenge to domestic business: International business firms provide the opportunities to the domestic companies. These opportunities include technology, management expertise, market intelligence, product developments, etc. Division of labour and specialisation: International business leads to division of labour and specialisation. Brazil specializes in coffee, Kenya in tea, Japan in automobiles and electronics. India in textiles garments, etc. Economic growth of the World: Specialisation, division of labour, enhancement of productivity, posing challenges, development to meet them, innovations and creations to meet the competition lead to overall economic growth of the world nations. Optimum and proper utilisation of World Resources: International business provides for the flow of raw materials, natural resources and human resources from the countries where they are in excess supply to those countries which are in short supply or need most. Cultural Transformation: International business benefits are not purely economical or commercial; they are even social and cultural. It does not mean that the good cultural factors and values of the East are acquired by the West and vice versa. Thus, there is a close cultural transformation and integration. Knitting the World into a Closely Interactive Traditional Village: International business ultimately knits the global economies, societies and countries into a closely interactive and traditional village where one is for all and all are for one.

The Advantages of Global Expansion Essay

Recent interviews of top international executives by the Myrddin Group in San Antonio have revealed they thought they could create value by transferring their business model and American style of product and marketing to foreign markets. Many initially treated foreign markets much like the United States but soon found that this was not the correct approach. Many American products drew big yawns in Europe and Asia where most of the successful products were local. These national differences in customer tastes and preferences require a change in approach to marketing. This requires a redefining of the actions managers can take to compete more effectively as an international business. The Advantages of Global Expansion Expanding globally allows a business to increase its profitability in ways not available to purely domestic businesses. Companies that operate internationally are able to: Expand the market for their product offerings by selling those products in international markets. Achieve location economies of scale by distributing value creation activities around the globe to where they can be performed most efficiently. Earn a higher rate of return by leveraging any expertise developed in overseas operations and shifting it to other parts of the company’s global operations. While this sounds simple, it is constrained by the need to customize products, marketing, and business strategy to each of the different national locations. Most multinationals started out by taking their goods or services and selling them internationally. Companies like Toyota for example found out that the small vehicles that were popular in Japan were not as popular in the US as the larger sized autos. They adjust ed their product strategy to the US market and enjoyed the ensuing growth in market share and profitability. McDonald’s adapted likewise in India where cattle are revered and the typical Big Mac was doomed as a product. Location Economies The same principle holds true for location economies. Due to differences in feature costs, certain countries have a comparative advantage in the  production of certain products. As an example, Japan might excel in the production of automobiles, the United States in the production of computer software, and China in the production of clothing. For a company attempting to prosper in a global market this might mean that it would benefit by basing every value creation activity it needs in the country where economic, political, and cost considerations are most conducive for that activity. For example, if the most productive labor force for assembly operations is in China then any assembly operations should be there. If the best marketers are in the US then the marketing plans should be developed in the US. Companies that use a strategy such as this can realize these location economies and in doing so they can lower the costs of value creation and arrive at a low-cost position. Advantages Faster growth: Firms that have operate internationally tend to develop at a much quicker pace than those operating locally Access to cheaper inputs: Operating internationally may enable the firm to source raw materials or labor at lower prices Increased quality and efficiency: Exposure to foreign competition will encourage increased efficiency. Doing business in the international market allows firms to improve the quality of their product in order to gain a competitive advantage. New market opportunities: International business presents firms with new market opportunities. These new markets provide more opportunities for expansion, growth, and income. A bigger market means more customers, increased revenue, a larger profit margin, and allows the business to realize economies of scale. Diversification: As the firm diversifies its market, it becomes less vulnerable to changes in local demand. This reduces wild swings in a company’s sales and profits. Disadvantages Increased costs: There are increased operating expenses including the establishment of facilities abroad, the hiring of additional staff, traveling of personnel, specialized transport networks, information and communication technology. Foreign regulations and standards: The firm may need to conform to new standards. This may require changes such as in the production process, inputs and packaging, incurring additional costs.  Delays in payments: International trade may cause delays in payments, adversely affecting the firm’s cash flow. Complex organizational structure: International business usually requires changes to the firms operating structure. Training/retraining of management may be necessary to facilitate restructuring.

Objectivity and Subjectivity in History - 1597 Words

According to Benny Morris, historical truth is a ‘truth about a historical event that exists independently of, and can be detached from, the subjectivities of scholars . Hence, is Morris implying that historical truths are objective? If they are indeed objective, why are historians constantly rewriting history books? Although the objectivity of some historical truths is indisputable, one must realise that most truths in history are influenced by the historians biases, limitations and his subjection to external influences. In other words, subjective elements (as mentioned above) undermine the objective interpretations of historical events. Thus, using Morriss definition of historical truth, this essay aims to marshal the argument that to†¦show more content†¦Just like the Indian historians, these Sinhalese historians have been influenced by the anti-Tamil governments in power and thus, having been subject to the influences of such governments, Sinhalese historians continu e to ostracise the Tamils even though there is significant evidence that the Jaffna Tamil Community is not at fault (Spencer, 1990). Thus, with historians being victims to political, social and religious influences, the historical interpretations made by these historians would always be shrouded with subjectivity. In all, historical truths will always be subjective for they are eclipsed by external influences which dominate a historians interpretation towards historical events. Lastly, to echo the views of Edward Hallett Carr, historical truths can never be objective because of ‘the historians need for imaginative understanding of the minds of the people with whom he is dealing, for the thought behind their acts . Historians have always been limited in the sense that unless they imagine as to what went in the minds of historical figures, they will never be able to interpret most, if not all historical events. In all, historical truths can never be objective for as Robin George Collingwood asserts, ‘in historical enquiry, the object to be discovered is not the mere event, but the thought expressed in it For example, nineteenth century historical works (by British historians) on British medieval society areShow MoreRelatedInvestigating the Extent to Which Historians Can Be Objective1137 Words   |  5 PagesObjective ‘You have reckoned that history ought to judge the past and to instruct the contemporary world as to the future. The present attempt does not yield to that high office. It will merely tell you how it really was’ - Leopold Von Ranke ‘There are no facts, only interpretations’ – Nietzsche Here we encounter two diametrically opposed views concerning objectivity. It can be argued that â€Å"true† objectivity cannot exist, as history is more exposed to differing interpretationsRead MoreLiterary Devices Of An Oral Performance Essay1537 Words   |  7 Pagesduring an event or the morality of a decision of which someone had to face consequences for. Books use facts and statistics to formally document. Books also use their own appearance of objectivity as an attraction to the truth it may hold. Griots use explicit subjectivity in contrast to books appearance of objectivity. More specifically, it is known that is in best interest of the griot to tell his truest version of the story because his lineage and patriotism is indelibly intertwined with the truthRead MoreThe Objectivity Of The Social Researcher Is Fatally Compromised When He Or She Takes Sides2469 Words   |  10 PagesTopic: Critically analyse the claim that the objectivity of the social researcher is fatally compromised when he or she takes sides. Introduction: There are different major concepts in sociology for the research purposes including objectivity, subjectivity and value freedom. Social researcher is not allowed to influence his view due to his values in value freedom concept. It is generally accepted idea that the human being has got values but in will be considered that the sociologist has no valuesRead MoreCan History Be Unbiased?770 Words   |  4 Pagestheorists—the lack of objectivity in history books and school textbooks is not hugely problematic. The reason for the previous claim is that, simply, when it comes to historical occurrences, bias and inclinations of perspectives—though can hypothetically be eliminated—are totally inevitable. Historians are human beings, with brains to know, comprehend, and evaluate historical events and consciousnesses to feel and sense the underlying meanings of those events. Similarly, history itself deals withRead MoreThe Beauty Of The Beholder1198 Words   |  5 PagesAn all too familiar phrase â€Å"Beauty is in the eye of the beholder† has been blanketed in the minds of society throughout history. However, how much truth lies in that phrase or belief? If one is to examine the nature of this concept, beauty first and foremost needs a specific definition. Beauty is that which brings enjoyment to the person who observes or contemplates. The answer may seem self-evident when examining different cultures around the world. Ethiopian women for example, wear a lower lipRead More History and Memory Essay example4335 Words   |  18 PagesHistory and Memory ‘Is there such a thing as â€Å"history† which is more objective than memory?’ For many years now there has been a strong debate, as regarding wether or not there is such a thing as ‘history’ that is more objective than memory. Due to memories completely subjective nature, history although also being somewhat subjective, it is a great deal more objective than memory. To discuss such a statement first one must define the terms ‘history’, ‘objective’ and ‘memory’. TheRead MoreThe Importance Of Objective Observation And Socialization944 Words   |  4 Pagessituation or environment is beneficial. Herman states that objective observation and empathy might be valuable cognitive tools in socialization and those tools can be used at Westfield State. Although, the conflict or tension between empathy or objectivity isn’t discussed because it doesn’t seem related to a sharper perception, there’s a conflict between the two cognitive tools of socialization. Is empathizing with another being a subjective process? Herman states that we need to be more objectiveRead MoreObjectivity Of Social Research : Free Of Bias Or Prejudice1643 Words   |  7 PagesObjectivity of Social Research: Free of Bias or Prejudice There is a change of belief of people: some believing that objectivity in social research is possible, others believe it to be not. Five diverse kinds of advices are progressive for Social Research not being objective: 1. Sociological decisions are biased, being painted by researcher’s personal life experiences. 2. All intentions are restricted to their connotation to specific linguistic backgrounds belonging to the similar manner. 3. AllRead More A Taxonomy of Moral Realism Essay1637 Words   |  7 Pagesclearly demonstrated what is involved in moral realist theory. I provide a framework which distinguishes three different versions of the theory while at the same time showing the interrelations between them. I also demonstrate how issues such as objectivity, cognitivism, and truth can be related into the discussion by means of this framework. Since morality exercises a deep influence over the way we live our lives, it is easy to appreciate why the question — whether the subject is, or can be, objectiveRead MorePsychological And Physical Aspects Of Science1683 Words   |  7 Pagesscience today, relating them to the contested notion of objectivity in which they strive for. Feminism in science will be proved significant in the sense of providing a paradigm for exposing human values suppressed within scientific work by demonstrating how assumptions of gender have influenced scientific practice. As science is not and can never be wholly objective, it will be argued that the feminist critique does not undermine the objectivity of science, nor does its contributions make it more objective

Teenage Alcoholism - 1175 Words

Teenage Alcoholism By Austin J. Russell December 14, 2011 Teenage drinking. What is it about drinking that teenagers find so attractive? Social influences? Confidence? Respect from others? The focus of this article is on why the highest percentage of alcohol drinkers is young people and teenagers like me and the reasons behind that percentage. Statistics show that the highest percentage of alcoholics, at least in the United States lies in the younger population. This figure is 31.5% (www.alcoholism.about.com). Further investigation will show the average age teenager’s first drink, along with reasons teenagers begin to drink in the first place. What is known regarding the types of teenage alcoholism, or young adult†¦show more content†¦The next chart (http://www.drugfree.org), shown below, also chosen for this investigation, depicts the age at which teens, who reported drinking, in this survey, had the first alcoholic drink. Shockingly, 25% of the 100 teens had taken their first drink by 12 or younger. Indicated on the chart was the average age, when a teenager had taken his or her first drink. The age indicated, was the age of 14. Roughly by the age of 15  ½ most teenagers have taken their first drink . The smaller percentage of first drinkers being in the 17-19 age range. In an article posted in top news US (Jonathan Sanders, Article published 12/10/11) it was said that â€Å"1.2 million people in the United States were hospitalized due to over drinking last year.† The worst part, about 7, 000 of those were teenagers. Peer pressure has contributed to an increase in teen drinking. Society for teens, looks, at them as an â€Å"outcast† if they do not drink. Very sad to see that society, advertising and friend and/or parent influence has cause a greater part of our younger generation to feel they need alcohol to prove a point or to feel better about themselves. In summary, teenage alcoholism has become increasingly high. American teenagers start drinking at younger ages every year. In fact, the United States, even though the legal drinking age 21, countries like Italy where the legal age is 16, teenagers do not drink as much as AmericanShow MoreRelatedTeenage Alcoholism1078 Words   |  5 Pages1. According to statistics on alcoholism and alcohol abuse statistics, even though alcohol has been used in a number of diverse ways. a. Throughout history these ways can be called useful, however, known thousands of years ago that abusive and excessive drinking led to negative outcomes and adverse alcohol side effects. b. The symptoms associated with this are mostly societal and personal problems. 2. Research studies have shown that teenage alcoholism is correlated to the age at which teensRead MoreThe Dangers Of Teenage Alcoholism863 Words   |  4 PagesAlcoholism is classified as a chronic illness, an addiction that affects the physical condition of a person as well as the mental. With one in every twelve adults living with alcohol abuse, it is a possibility that the children of these people will grow up and follow their parents. In this pattern there is a never ending cycle of alcohol abuse and dependence that has resulted in alcohol being ranked as the third leading cause of behavior related deaths in America (Facts About Alcohol. 2015, July)Read MoreEssay about Teenage Alcoholism1629 Words   |  7 Pages ALCOHOLISM This research paper is on alcoholism and its affect on teenagers and adults. This piece will fully outline alcohol from its origin, and different types of alcohol, all the way to the treatment of alcohol addiction. Reading this paper will hopefully shed some light on the fact that people with an alcohol addiction do not only hurt and affect themselves, but also make the people around them susceptible to the same fate. I.nbsp;nbsp;nbsp;nbsp;nbsp;Ethyl alcohol (also known as drinkingRead MoreEssay about Teenage Alcoholism1759 Words   |  8 PagesTeenage Alcoholism What is alcohol? Alcohol is many things to many people: To little kids, it is a curiosity. To teenagers, it is ?cool?. To responsible drinkers, it is a relaxant. To bartenders, it is a job, their lives. To restaurant owners, it is a moneymaker. To probation officers, it is a frustration. To actively drinking alcoholics, it is heaven. To wives and husbands of drinking alcoholics, it is a waste. To recovering alcoholics, it is a painful old friend. To us, it is somethingRead More Teenage Drinking and Its Effects on the Development of Alcoholism Later1613 Words   |  7 PagesTeenage Drinking and Its Effects on the Development of Alcoholism Later Teenage drinking is something that goes on every day. No matter how many videos you show to kids about drinking they will still drink. Surveys show that the average teen seventeen and up spends $475.00 a year on liquor, mostly beer; thats more than books, soda, coffee, juice and milk combined. Most parents dont know about teenage drinking unless they catch their kids doing it. Parents usually say oh, my my kid would neverRead MoreTeenage Drinking Essay1261 Words   |  6 PagesTeenage Drinking According to Lang nine out of ten high school seniors have used alcohol, one out of twenty use it daily, and one out of three will get drunk during any given weekend (back cover). Teenage drinking is a very serious problem that is growing by the day in our country. I want to know what kids who drink are getting themselves in to when they decide to start in high school or junior high. What types of health and psychological problems will they be facing? What are the chancesRead MoreEssay on Teenage Drinking In America920 Words   |  4 Pagesmany causes of teenage drinking and effects that prove that drinking is an important issue that needs to be dealt with to preserve American teenagers. Teenage drinking will become worse of a problem if it continues unchecked on its current path to destruction. Alcohol abuse among teenagers in the United States is a plague that is destroying the structure of American society. Statistics show that there certainly is a problem with teens and alcohol in America. Half of the teenage deaths in AmericaRead MoreAlcoholism in College Students1558 Words   |  7 Pagesgeneration in high percentages since the beginning of college education. Today in America it is estimated that approximately 29% of college students are regular alcohol abusers. Another recent study by the National Institute of Alcohol Abuse and Alcoholism performed showed that college students suffered 1,400 deaths, 70,000 date rapes and assaults, and 500,000 injuries each year as a result of alcohol. (McDonald) Although binge drinking (5+ drinks in one sitting) is considered a normal part of theRead MoreEssay about A Better Solution to the Underage Drinking Problem759 Words   |  4 PagesA Better Solution to the Underage Drinking Problem Recently, the issue of underage drinking has become a major problem for our society. According to the National Institute on Alcohol Abuse and Alcoholism (2009), about 10.4 million young people between ages 12 and 20 have drank more than â€Å"just a few sips† of alcohol. Moreover, 5,000 people under the age of 21 die each year in alcohol-related deaths including car crashes, homicides, and other injuries such as falls (NIAAA, 2009). When adolescentsRead MoreEffects Of Alcoholism On The American Medical Association1016 Words   |  5 PagesLiterature Review Definition of alcoholism: According to the American medical association alcoholism is a chronic disease with genetic, psychosocial and environmental factors influencing development and manifestations. Alcoholism has had a tremendous impact on the human condition and its relationship to society. The evolution of alcoholism, its behavior and quality of life impact will be addressed; as well as treatments and fiscal impact in the literature review. â€Å"Alcoholism is a complex disorder with