week 7 revision

Week 7

Business and management will take the exam on 18 of March. I would like to focus on globalization. First of all, I will introduce the definition of globalization. Secondly, I will indicate the business strategic in terms of external and internal. Lastly, I will make a conclusion as well as solve the problem.

Globalization is the international integration of human activities with technology, goods and services due to have positive and negative affect on businesses. Globalization is very important for people who expand the business in another countries. It can greatly increase the standard of living for people.

In order to achieve global success, it must be considered the business strategies in terms of internal and external. As regarding internal strategies, exporting can have positive affect people to sell goods and services to other countries, because it more widely to gain profit from aboard. However, this is no operation to establish. Therefore, It saves more money for expenses such as electronic and wages. But, it also detrimental to economy of our own country, since more people decrease buying goods and services in their own country. That means the supply will be less, if the percentage of demand decrease at the same time. Therefore, it will appear more unemployment rapidly. On the other hand, direct investment can run a business and trade in other country. For instance, some countries build a manufactory in China, because China has cheaper wages for labour, which is benefit for cost of production. So it is good to develop a business. As far as we concern negative, it is likely to create pollution in some countries. If the government solve the problem, they may charge high tax to the industry, which create any pollution. That is one of the financial burdens to go business in the future if people keep paying a fine. In addition, e-commerce is buying goods and services from the Internet. This is a good business, as its convenience to the customer who buys a product at home. It also has cheaper costs to operate a business. For example, it has no cost of services, electronic expensive in the shop. So it saves more money. But, some people may worry about e-commerce; it may have potential negative effect people for safety. Maybe some products are fake or second hand. Moreover, it is hard to return the products as well as money if the customer is not satisfied about it. For external strategies, joint venture is meant two or more companies share the cost of investment in anther country. That is good for people who can share the risk and decision-making. It might be lose less profit. But it will be more opportunity to argue about the profit share. Franchising is a franchisor who agrees franchisee to use the brand name to run business in other countries. It can also help for advertising such as McDonald. But it may damage the reputation if worker has bad attitude. Furthermore, merger is a two or more business amalgamates as a single business. Merger can increase the money from other company of property rights. It can help a domestic business gain access to a market. But, the expenses will be high at the same time, as merger will become bigger company. In order to pay less money, an entrepreneur may reduce a number of employees. So it will increase unemployment. Finally, acquisition is a people takeover a company to manage a business. Actually it is the same advantages as a merger. There is more than one majority stakeholder to gain property rights as well as revenue. But it is badly affect to work efficiency for employee, because they may not adopt a new manager.

To sum up, globalization is significantly effect on business. In order to solve this problem, government ought to charge a high tax to protect the environment. This is not only benefit for society, but also benefit for individual such as fresh air and healthy life. From my perspective, I think this is good for business to increase motivation, because they may improve technology if a government to warn them.

Globalisation week 7

Week 7

Globalization is the human activity, which extend to all parts of the world. Globalization can be influence to economic, financial and trade. However, It also has more opportunity to communicate with all around the world.

Globalization can be positive effect economic for trading. There are considering the positive and negative. In terms of positive, most business is trading from all around the world, such as import and export. That is good to expand the business, since the money came from external. Therefore, the government is likely to gain money from tax. As a result the economic will be positive. As regarding negative of economic, some people will set up the manufactory to the developing countries, it is probably created more pollution as well as competition, such as China and India. It also damages the people’s health. People will spend the person cost to the hospital. So it is not only detrimental to the individual, and also costs to the society.

Culture is the characteristics of particular group of people from language, religion, social habits and so on. Some people like remaining the tradition culture without others. That is a barrier of trade when people come to your country. Homogenization is the culture that all people remain the same. That maybe affects people for positive and negative. Homogenization is benefit for people to run a business, since they don’t have conflict between culture and social habits. Some people may concern about homogenization. It may not ethic for some country such as history. Political is relating to government in its country. This is based on the relationship with different countries, since political may due to lost money if it’s occur civil war. However, Political can also use the communications systems during the international trade. So this is quite convenient.

To sum up, globalization can impact positive and negative for business. Sometime this can expand a business rapidly as well as survive for a long time. But this is essential to consider the negative such as pollution and barrier to run business.

Week 6:

International trade is the exchange goods and services that due to increase the money from aboard. As technological advanced can be positive impact on exports and imports. An export is shipping a goods and services from own country to others. As a result the money can earn from out of a country. An import is a good that people buy from external sources, which is supported by other countries rather than own country. Therefore, International trade is hopefully traded an export more than import, since exportation can gain the financial transaction.

There are several factors to consider the context of international trade, which are political, economic, socio-cultural, technological, legal and environmental. Political is organized control over a human community. Political is very important, if political is unstable, a government may spend the money on extra cost such as medical and civil war. However, economic will be based on the quantity of goods and services, which is the same estimated value to exchange. In addition, socio-culture is the consideration of what the people want commonly. Otherwise, some goods and services are likely to waste the cost as well as profit. Furthermore, technological advanced having positive effect for communicating with different nationality, and also benefit for working efficiency if people make decision. Moreover, Legal is depended on the law of other countries, which is the agreement for trade. For instance, drugs are probably illegal for some countries. So it may become trade barrier. Finally, environment is damaged by human activities. A government is strongly focus on the renewable resource due to have positive for environment, such as solar power. Otherwise, it will pay a fine as well as charge high taxes for using limited resources.

Overall, globalization can expand the international trade rapidly. Despite it will create more pollution as well as resources consumption, a government will take over responsibility to solve this problem such as high taxes. So I totally support with International trade.

Week 5 Organisation and Strategy

Week 5

This week has been advocated an organisation and strategy for business management. Organisation is a person who makes the purpose of administering something. Organisation can be possitive effect for keeping business development. Strategy is the long-term direction of an organisation, according to Johnson and Scholes (2011). In other words, strategy is a plan that people want to achieve in order to bring desired future. This week will be strongly focus on strategy. 

In terms of strategy, there are separate to different levels, which are corporate level, business level and operational level. Corporate level is a overall scope of the organisation that people need for products, markets or businesses. Business level is indicated that how individual business contend with the specific markets, which is a company tends to be activated unable to take advantage of opportunities. Operational level is meant how the organisation present in terms of resources, people and processes. It is due to have less cost of production eventually. In order to develop strategy, people have more flexibility in the plan as well as target. Therefore, it is due to avoid the risk.

As regarding perspective on strategy, this is determines how the company views and solves the important issues. Environment can be predicted, people ought to use renewable energy instead of non-renewable. But something is unpredictable, for example, future. It is because natural disaster can damage the environment. Therefore some companies cannot run business for a long-term such as beach.

SWOT analysis is one of the strategies to consider in terms of Sony’s company, which are strengths, weaknesses, opportunities and threats. Strengths are a business that gives it an advantage over others. Sony is good at produce for electronic products such as television and laptop. However, Weaknesses is a business that a disadvantages relative to others. That means something worse for Sony. Then Sony ought to analysis in order to solve this problem. In addition, Opportunities is an element of the business that would utilize. Opportunity cans positive cause to expand business, since Sony cans try to advertise for different countries. Finally, threats are elements in the environment that would due to be trouble for business such as global warming. The government would charge a lot of money if Sony destroys an environment.

To sum up, I personally think that strategy is very utile for business, since it can analysis how to prevent any problem as well as reduce the cost of production. This is one of the most important factors to have positive effect company to the infinite of profitability.

Week 3 & 4 environment

Business and Management is essential consider the environment in terms of internal, competitive and external. Environment is the surroundings in which a person, animal, plant lives or operates. This is a factor of internal that influences its activities and choices, particularly human resource, which is the behavior of the employees. Factors that are also considered part of the internal environment include the leadership, organizational structure, technology and so on.

Leadership is a one person who can enlist the aid. In a company, leadership can be greatly improved the quality of employees, as human resource is a very difficult to deal with them. For instance, culture and region are probably had productivity barrier. However, it also needs to satisfy for everybody in order to prevent employee to resign a job.

In terms of internal structure, it is necessary to have an organize structure behind the success. This is due to be good communication between top manager and labor. There are two different type of structure, which is tall and flat. Tall is more likely to have less work since they have a lot of manager to cooperate. But it will be detrimental to labor for receiving message from the top manager. It will eventually affect the cost of production. On the other hand, flat is probably elastic for communicating as they have only one manager. So that it is more close relationship to each other. But it will be very hard working if they have no manager. Furthermore, technological advances having a positive effect for business to expand, people start relying on the machines instead of human work. The profitability also greatly increases with the technological improvement.

 Factors of organisation operate that affect its decision-making. These factors include customers, entrants, suppliers, and products. Supplier normally provides the resource from land. Manufactories need to have raw materials and machineries before produce goods and services. However, substitute products are more likely to attract people to buy it, since it is fresh. This is also benefit for environment. For example, bus can be substitute car. As a result people can save more money. Furthermore, we ought to provide the cheaper price in order to keep selling from the customer. This is due to have higher profit, because products are not selling once only for one buyer. Moreover, entrants are a commodity that enters competition with goods and services. If the product cannot distribute, it will be in trouble, because new entrants might not have access to the market. This is due to loss profit.

As regarding macro environment, this is the major of external that influence an organization's decision making. It is involved the PESTEL which is political, economic, sociocultural, technological, environment and legal.

Environmental laws are important to consider from different places, as some countries may have trade barrier such as taxation. However, economic is depending on the general situation, For example, inflation. Inflation is the general level of prices rising for goods and services. So that inflation will badly effect business people for export and import. Socio cultural environment can be defined as a combination of social and cultural factors in a population. Changes in lifestyle are a very good example. The business people ought to know what the local people wants and needs. Then focus on the main products in order to sell more in other countries. Technological can be improved in technical processes that increase productivity. Technological advances having a positive effect for communicating with other countries as well as easy to make decision. Legal is based on the law that people need to follow the rules in a game. Laws can protect society because some people are uncontrolled to use products such as drinking alcohol. Law should not be allowing people who are under 18 years old to drink an alcohol. This is not only detrimental individual health, but also have accident from occurring. As far as we concern that environment is going to be harmful for every body in the whole world, because people are selfish for using un-renewable sources such as oil. So it is significantly damage the environment. So business people should consider the green energy. For example, electronic car can replace a traditional car. This is benefit for society.

To sum up, micro and macro are essential to consider if you want to be a successful business people, because another countries are very complicated. If we know how to prevent this risk, it would possible to have more profit.