Technology impact 3. Human resource impact 4. Distribution impact 5. Supplier market impact Introduction Diversification strategies are used to expand firms' operations by adding markets, products, services, or stages of production to the existing business. The purpose of diversification is to allow the company to enter lines of business that are different from current operations.
Case 1: Globalization of CEMEX 1. What benefits have CEMEX and the other global competitors in cement derived from globalization? 1, Deduction of tariffs connected with exporting. 2, Because of the internationalization of these companies that are able to spread their risk. Thus, if one market is not performing they can rely on the other 3, Across markets with talent 4, Ability to identify new emerging markets and having advantage of an already set up network system 5, Approach to raw materials gives benefits on distribution channel that is already organized by formers.
This paper includes identification of the cultural problems facing multinational organizations and the analysis of commingling differing cultural paradigms within multinational organization. The primary managerial implication is that to leverage cultural differences toward achieving organizational success. The Challenge of Cultural Pluralism: Wal-Mart Stores Inc. The expanding role of multinational corporations in the competitive global economy, managers and global companies face the challenge that involves the concept of pluralities. Prior to the wave of globalization, the term of plurality of cultures represents unique cultural characteristics of specific foreign markets, such as China, India, and European countries that must be accommodated to achieve successful business ventures (Steers, Sánchez-Runde, & Nardon, 2010).
• Other companies looking to acquire Whirpool for consolidating the industry. • Falling margins with increasing competition. • Longer lifespan of products slowing “replacement demand”. Recommendations • Stay focused on consumer needs. • Create new markets & tie-ups to increase sales & revenues.
Controversy at Flex Kendra Torbet MGT 626 Tiffin University New companies have a tremendous burden placed on their shoulders at the time of opening but if the company can introduce themselves at a time when the industry is new and immature it can enhance their overall performance. However, when the industry begins to be overrun with more and more players, it can increase the tensions to perform the competitors over. Many times with increase tensions to perform well, it can drive the company to make risky and sometimes unethical decisions. Corporate governance has an enormous impact on how companies are run, and all companies want to make the best decisions for the stakeholders of the company. However, sometimes the right decision in one person’s mind is far from the best decision to make.
The increasing competitive pressures on Nucor may compel it to become less innovative, reduce duplication of efforts and reduce costs. Greater control over the units will be required to realize economies of scale and gain cost leadership. This is necessary so that Nucor can fight the cost battle and continue to increase its revenues (Bouchard. C, & Koch. J2009).
Product differentiation is a major part of new entrant’s struggle to gain market shares, much because of CC and PC’s strong brand name and consumers brand awareness. Other barriers to entry are also present, such as the incremental efficiency improvements CC and PC has made after being long-time, major market shareowners. Limited access to distribution channels can also keep new entrants from growing, as both CC and PC has built strong relationships with concentrate producers, bottlers, retail channels, and suppliers. Power of Suppliers First, we need to have a look at what the suppliers provide, which in this case is plastic
So just as profits reward producers for making things people want to buy at prices they are willing to pay, losses punish producers for wasting resources and producing things people don’t want at a cost consumers are not willing to cover. Negative profits and business failures serve a productive function in the process of business growth and development. When one business enterprise in a market economy finds a way to lower its costs, competing enterprises have no choice but to scramble to try and do the same. Any change in the economy, such as an increase in demand for a product, requires further changes and adjustments in many aspects. Any kind of change in the output of one product will most likely require changes in other markets, as well, and will start a chain of adjustments.
Activity based costing (ABC) is a dynamic method to determine the costs by assigning them to the major activities performed in an organization. ABC is a powerful tool for organizations to have accurate and effective cost to avoid the misrepresentation of the product’s cost, which can lead to sustainable development and growth required to be competitive in the era of globalization and complex business environment. In today’s global marketplace, firms are facing ever-increasing competition among them. Companies must react rapidly and manufacture low cost, high quality products to be successful in this new environment. Senior managers must have accurate and up-to date costing information to make proper decisions.
If the company is going to continue to expand globally, more distribution centers must be created to align with Zara’s quick response business model. Another obstacle the company must overcome is the increasing labor costs. As Europe continues to deal with an economic crisis, labor costs continue to rise. Increasing labor costs in the European region can reduce profits for the company. Also, Zara takes an unorthodox approach to marketing and advertising.