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Mid term exam

Mid term exam

Mid term exam

  • Type of paperQ&A
  • SubjectBusiness
  • Number of pages2
  • Writer levelUniversity
  • Format of citationOther
  • Number of cited resources0

Please respond to the questions on the image uploaded.

Question one

  1. Collapse of Berlin (1989) Wall which tipped the global power towards a free market. The occurrence not only represented the end of the Cold war, it enabled people from other side of the wall to have a hand the economic mainstream
  2. Netscape: Netscape and the Web broadened the audience for the Internet from its roots as a communications medium used primarily by ‘early adopters and geeks’ to something that made the Internet accessible to everyone from five-year-old’s to eighty-five-year old’s. (8/9/1995)
  3. Work Flow Software: This enhanced capacity of machines to cooperate with other machines with no human’s contribution facilitated by the internet this created a system of collaboration worldwide.”
  4. Uploading: Communities uploading and collaborating on the virtual projects. Examples may include open source software, blogs, and Wikipedia. Friedman takes the phenomenon to be “the most disruptive force of all.”
  5. Outsourcing: He argues that outsourcing has allowed companies to divide service and manufacturing activities into parts, with each being performed in the most efficient, cost-effective way.

Question two

He redefines the theory in three terms:1) Adaptation strategy – which seeks to up revenues and market share by transforming one or more parts of a company’s business model to suit local needs or choices. This could be done through variation strategies which involves making changes in products services and policies, externalization strategies which may include alliances, franchising, user adaptation, or networking, innovation, which is characterized by revising the effectiveness of adaptation efforts

2) Aggregation strategy which is about creating economies of scale or scope as a means of addressing the global differences with little impact on local efficiency Arbitrage is a way of exploiting differences, rather than adapting to them or bridging them, and defines the original global strategy: buy low in one market and sell high in another this could be through geographic aggregation.

3 Arbitrage strategy involves exploiting differences, but not adapting to them or addressing them. This taps into the original global strategy: buy low in one market and sell high in another.

Question three

These are as indicated below:

Inter-governmental organizations (IGOs) which are formed by the agreement between the governments in question.

International non-governmental organizations (NGOs. These are private organizations which may include The Red Cross.

Multinational enterprises

Conventional international organization they are independent international governmental and non-governmental affiliations of a non-profit nature

Federations of international organizations: involves all international organizations whether governmental or non-governmental, which bring together at least three other independent non-regional international organization as full members of Universal membership organizations:

Intercontinental membership organizations: includes all international non-profit organizations, whether governmental or non-governmental, whose membership and preoccupations that goes beyond that of a particular continental region.

Question Four

They are as shown below:

Power distance index (PDI): This is “the limit to which the less powerful members of organizations and institutions (like the family) agree to and project that authority is shared unequally.” Here, inequality in authority is detected in the followers. A higher degree of the Index shows that inequality is clearly found and implemented in society, without question or rationale. A lower degree of the Index indicates that people doubt power and try to introduce equality in it.

Individualism vs. collectivism (IDV): This is the “extent to which people in a society are incorporated into groups.” Individualistic societies have loose connections that mostly only ties one to their immediate family. Collectivism, describes a society in which tightly-incorporated relationships relate extended families and others into in-organizations. These show undoubted loyalty and support each other when problems arise.

Uncertainty avoidance index (UAI): This is defined as “a society’s tolerance for equivocality,” where people accept or avert an event of something unforeseen, unknown, or different from the status quo. Societies with high degree in this index chose stiff codes of behavior, guidelines, and regulations and basically depends on absolute Truth which they believe dictates everything and people were privy to it. A lower degree in this index shows more embracement of different ideas.

 

Question five

  1. a) CAGE: Commercial and Government Entity. This is the organization that helps organizations to identify the markets that could be welcoming to change and those that would be too expensive to venture in. It examines Cultural, Administrative (Government), Geographic, and Economic factors which affect how similar markets function differently in various in various countries.

AAA: American Automobile Association. This Provides travel packages and services to the AAA members and non-members for air, car, hotel, tour and cruise bookings to worldwide places of destinations.

c)The Porter Diamond is a model that is made to help comprehend the competitive leverage countries or organizations haves owing to certain factors availed to them, and to expound on how governments can be the facilitators to improve a nation’s position in a globally competitive economic map. The model was designed by Michael Porter and It is a proactive economic mechanism and not one that simply numbers competitive advantages that a country or region may own.

 

Question six

  1. The Social Globalization: With the entrance of homo sapiens on this earth, the Social Globalization seems to have been the First dominant subject matter with the distribution of our forefathers all over the globe.
  2. The Political Globalization. This appears to be the next dominant theme in our history with our ancestors having settled down in minute rural and urban set-ups. The introduction of the community life necessitated the establishments of political entities which looked for expansion across the globe. For example, Alexander the Great piloted political globalization by venturing into the Indian subcontinent

3.The Cultural Globalization: This closely followed the Political Globalization in the name of the Cultural Globalization with respect to diffusion over the whole world of new technologies/inventions and spread of culture in terms of religions, languages, etc. For example, Islam/Christianity and the English language.

  1. The Economic Globalization: After the industrial revolution of 1757, the Economic Globalization became the most crucial theme. Empires were put up and wars were mainly for economic gains but not any political advantage.
  2. The Integrated Globalization: The 21st century is likely to experience the advent of Integrated Globalization whereby no single theme is likely to feature on the top. In fact, the Globalization of all aspects of our lives will continue in an incorporated manner with almost equal importance to each.

Question seven

This could be explained based on five grounds

1) Association: in high context relationships are built slowly and are stable. One can distinguish people outside their circle, things are done based on relations and attention to the groups and one’s identity is rooted in the groups. However, in the low context relations are built fast and die equally fast, things are done based on procedures and goals, one’s identity depends on oneself and exploits.

2) Interaction. In high context communication is mainly nonverbal, the nonverbal communication is implicit, and communication is seen as a way of engaging someone. In the low context communication is mainly verbal with low usage of the nonverbal cues, communication is mainly explicit, communication I a way of engaging ideas, information and opinions.

3) Territoriality. In high context the space is communal where people live close to each other. In low context the space is compartmentalized and privately owned where people live far from each other.

4) Temporality. In high context there is no scheduling for activities and what matters is that the activity is done, change is low as things are conservative and stable, time is a process; it belongs to all and nature. In low context there is perfect scheduling of activities with the bottom line being that they are done efficiently, change is fast and one can make a change and see its implications immediately, time is an asset to be used and saved and it belongs to individuals in equal proportions.

5) Learning. In high context learning is always deductive, learning occurs by apprenticeship, groups are available for learning and problem solving, accuracy is valued in learning. In low context learning is mostly inductive, it occurs by following expressive directions and explanations from others, individuals are preferred for learning and problem solving, speed is valued in learning.

Question eight

Introduction Stage – This stage of the cycle is the costliest for a company having a new product. The market size for the product is limited, which translates to low sales, albeit they will be increasing with time. In addition, the expense of aspects like research and development, consumer testing, and the marketing required to launch the product can be exorbitant more so if it’s in a competitive sector.

Growth Stage – It is essentially punctuated by a strong growth in sales and profits, and because the company could benefit from economies of scale in manufacturing, the profit margins, as well as the entire proportion of profit, will increase; making it possible for businesses to invest even the more in the promotional.

Maturity Stage – Here, the product has been established and the aim for the entrepreneur is now to sustain the market share they came up with. This is the most competitive time for the products and enterprises ought to invest wisely. They also should consider any product changes in the production process which might make the product more competitive.

Decline Stage – Here, the sale for a product will begin to reduce, and this is why it is called the decline stage. This reduction could be due to the fact that all the customers who will buy the product have already acquired it or it could be because the consumers are changing to a different type of product. However, it may still be tenable for enterprises to make profit by switching to less-costly production methods and cheaper markets.

Question nine

The value discipline in business is the process by which a company operates ensuring that they operate optimally, their products are on maximum sale and they meet the customers’ needs satisfactorily. It comes in three main strategies. To start with is the operational excellence. Here the services are free and hassle free. Secondly is the product leadership: it involves passion for the product and a strong product point of view. Lastly is customer intimacy which involves evaluation and control processes and organizational behavior processes i.e. reliability and punctuality.

 

Question ten

Case study on GLOBALISATION:

To start with I have learnt that globalization implies the designing of local and nationalistic perspectives to a wider outlook of an intertwined and interdependent world with unlimited transfer of capital, goods, and services across the nations. However, it excludes unhindered transfer of labor and, as implied by some experts, may negatively affect developing or fragile economies if implemented indiscriminately. Secondly it has happened through various stages: social globalization, economic globalization, cultural globalization, political globalization and integrated. Third, globalization comes with advantages and disadvantages. Advantages may include: Globalization allows Free Trade; it has increased the free trade between countries. Second, it ties the world together; the increased global communication has connected all and sundry worldwide. In addition, it eradicates cultural barriers; countries joining together economically via politics and education have cut on and can even eradicate cultural barriers, and improve the global village effect. Lastly is the elimination of war; Reduction of war between well developed countries has been achieved through the global village effect. It however has three main drawbacks: First is the decrease in environmental integrity: Globalization has decreased the environmental integrity mainly through pollution. Next, the seek for cheap labor increases the transfer of non-skilled and skilled jobs from developing nations to well developed countries as huge corporations seek for cheap labor and the inherent disruption in a single country would affect all countries. Thirdly, it limits cultural expressions by imposing threat to the media being controlled by huge corporations.