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Competing in a global context ((Finance reporting (Different regulations…
Competing in a global context
Globalisation
Advances in ITC technologies and reduced in trade barriers
"Shrinking world"
Better communications and sharing of knowledge
Greater competition - even those competing only in a local market are against global corporations
Competition
Organisations
Porter's five forces model
Countries
Porter's diamond model
Absolute and comparative advantage
Environmental factors
Micro
Competition
Profit potential
Market size
Market access
Macro
Technological factors
Economic factors
Socio-cultural factors
Political and legal
Trading systems
Ethical consideration
Branding
Identity
Internal formulation of the brand
Content
Connection with consumers outside of the product offering
Equity
Value of the brand
Reputation
External evaluation of the brand
Standardisation vs. Adaptation
"Glocalisation"
Universal approach
Supply chains
Adaptations to processes to suit market environment
Complex supply networks
Vertically integrated supply chains
Disadvantage - loss of economies of scale
Advantage - better control of preformance of final product
Strategies
Home country operations with exports
Multi-domestic operations
Regional operations
Global coordinated operations
Global business environment
Concepts
Convergence
Divergence
Crossvergence
Comparison
Global culture
Compare and contrast with other organisations
Adopting best practices
Globalisation
Opportunity - More diverse workforces and organisations
Greater innovation
Challenge - precarious employment environment
Multinational workforce
"Race to the bottom"
Global inequality
disincentive to innovation
Poor working environments / wages / lack of benefits = ethical issue
Understanding regulations / laws
i.e. immigration
i.e. employment laws
International institutions
IMF
World Bank
International tax rates
Government driven rates
Tax avoidance
Transfer pricing
BEPS
Exchange rates
Affects global business
Importing = poor exchange rate leads to increased costs of goods
Exporting = poor exchange rates makes goods relatively less expensive
Finance reporting
Different regulations in different countries
The contingent model
IFRS standards
Global trade environment
International operations
Global economics
Innovation
HMR
Marketing
