borderless world

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The Borderless World, Power and Strategy in the Interlinked Economy

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  • 1. What Borderless World means?

2. A borderless world... refers to an open world which can bring influences upon people. It may bring about changes in their culture, beliefs, traditions and others.Patricia Evangelista 3. Study of borders...-undergone a renaissance during the past decade.-renaissance partly due to the emergence of a counternarrative to the borderless and deterritorializedworld discourse which has accompanied much withglobalization theory-has moved beyond the limited confines of the politicalgeography discourse, crossing its own disciplinaryboundaries-until now-not successful-in creating a commonlanguage or glossary of terms 4. Study of borders...-contemporary study of borders are notions such asborders are institutions-border terminologies focus on the binary distinctionbetween us and them , the included andexcluded-should be studied not only from a top-down perspectivebut also from the bottom up-with a focus on the individual border narratives andexperiences, reflecting the ways in which bordersimpact upon the daily life practices of people living inand around the borderland and transboundarytransition zones. 5. Buisness in a Borderless WorldKenichi Ohmae argues...-borders and nation statesare becoming irrelevantandexplains thatfundamental paradigmshift has occured that ischanging thewaybusinessis beingdone...and is operatingunder the old rules. 6. Buisness in a Borderless WorldGlobalization...is redefiningthe waycompanies dobusiness. 7. Managing in a Borderless World -identifies the purpose for the companies to go abroad and trying to invest in foreign countries regardless of the way to enter it, like joint ventures, wholly owned businesses, licensing but effective global operations require a genuine equidistance of perspectives. But even with the best will in the world, managers find that kind of vision hard to develop and harder to maintain. 8. Managing effectively in this new borderlessenvironment does not mean buildingpyramids of cash flow by focusing on thediscovery of new places to invest, nor does itmean tracking our competitors to their lairand preemptively undercutting them intheir own home market. 9. Most managers in all big companies aretrying to increase their sales and marketshare, but the only way nowadays is tosearch for new market where there are newopportunities (especially in the far east) inorder to expand their businesses. 10. The major purpose to go internationally isdue to the intensive and huge competitionthe companies are facing in their localmarkets, domesticandforeigncompetition. 11. The other factors that lead managers tomanage in a borderless world are thecost factor that all companies careabout because it will identify themarginal profit. 12. Threats that Management ShouldTake Into Considerations1. Economic situation of the country2. The currency rate3. Interests rates4. Inflation rate5. Unemployment rate 13. Kenichi Ohmae view on the speed, thebenefits and methods of dealing withILE/Globalization1. Dispersion even originalequipmentmanufacturerswith captivetechnology arenot immune fromdispersion. 14. Kenichi Ohmae view on the speed, thebenefits and methods of dealing withILE/Globalization2. Partnerships Nothing stays propriety for long and no player can master everything 15. Kenichi Ohmae view on the speed, thebenefits and methods of dealing withILE/Globalization3. Reduce fixed costsTo compete theglobalmarkets, companieshave to incur andshow find a way todefray immensefixed costs. 16. Kenichi Ohmae view on the speed, the benefits and methods of dealing with ILE/Globalization4. Brand You must spend enough money on brand promotion to realize benefits. 17. Kenichi Ohmae view on the speed, thebenefits and methods of dealing withILE/Globalization5. The Governments Role Governments have become the major obstacle for people to have the best and the cheapest from anywhere in the world. 18. Kenichi Ohmae view on the speed, the benefits and methods of dealing with ILE/Globalization6. EquidistanceCompanies that areglobally successful in whitegoods focus on closeinteractions withindividual users; where asthose that prosper withequipment installationfocus on interactions withdesigner, engineer, andtrade unions. 19. Kenichi Ohmae view on the speed, thebenefits and methods of dealing withILE/Globalization7. Customer Oriented Strategies Sometimes getting back to strategy means getting back to a deep understanding of what product is about. 20. Kenichi Ohmae view on the speed, thebenefits and methods of dealing withILE/Globalization8. DemandMaintaining thecustomerrelationshipthrough goodservice is the key tosuccess. 21. The concept of the interlinked economy isobviously now more apparent than it was in the1990s. At the height of globalization, developedcountries in the west were able to export theirproducts thereby increasing their consumer baseand business influences. Today, countries are confronted with theborderless nature of business transactions. Insteadof fighting this reality, those that embrace the shiftare more likely to benefit in globalcompetitiveness. 22. Business in a Borderless World In todays dynamicbusiness battlefield, strategy creates the macro picture; our assets are positioned, we know what the competition is doing and we deliver. Tactics help us to maneuver our way around unexpected roadblocks, without losing sight of our strategic objectives. 23. On Why Size Matter In certain industries, size is very important. It gives an advantage in costs, reach and technology. In other businesses, size matters less. In the natural world, ants account for 10 per cent of all biomass. These small creatures have found ways to be incredibly successful, and can take on even the mighty elephant. The question is, does one want to be an incredibly dynamic and flexible but small ant, or an all-powerful elephant? 24. On Managing Diversity Whether conglomerates are optimal organisation strategists is a hotly debated question today. Research shows that premium conglomerates can create incredible value. One of the best performing companies in the last 20 years has been GE, which is extremely diverse. And there is also a lot of research to suggest that diverse businesses are particularly appropriate to dynamic, emerging markets. 25. On Managing Diversity We have a way of managing diversity that is centredaround a strongbelief in decentralisation.Thecompaniesrun themselves; they are not dependent on the centre. The key to success is taking quick and good decisions, as well as their managements seizing the initiative and taking responsibility. 26. On the challenges of the future Hard work, preparation, research, thinking, gettingthe value proposition right and serving the customerbetter, can take care of the economic challenges. Wehave more high quality people available at a lower costthan most of our competitors in the internationalmarket place. But these advantages will erode as the competitionreplicates them. Besides, the cost base will alsoincrease in the future. What the group would thenneed to do is to move its competitive advantage overtime. 27. On looking ahead One thing that will not change is the values of the group and its desire to serve customers well in the marketplace. So whether the corporate centre looks different, whether it is in one place or distributed, doesnt really matter. What matters is that our soul, embodied in the groups values, will still be the same. And, what is more, we will have successful world-class and larger scale companies. 28. Tax in a borderless world Achieving tax compliance is a challenge facing governments the world over. Action can be taken. Jeffrey Owens OECD Centre for Tax Policy and Administration 29. Tax in a borderless world Globalization brings costs and benefits, even for the tax professional. The move towards a borderless world has opened up new opportunities for taxpayers to minimize their overall tax liabilities. Much of this tax planning is legitimate. 30. Tax in a borderless world Good tax planning is driven by the reality of businesses having to operate with increasingly complex laws, particularly affecting international activities, while at the same time wanting to legally minimise their costs, including tax costs. 31. Tax in a borderless world This same complexity has opened the way torule bending with creative accounting.Worse, a significant number of these taxschemes examined by tax administrationshave been found to be in breach of the law. These practices include deliberatelyconcealing earnings, misreportingtransactions between different parts of thesame firm, and so on. 32. Tax in a borderless world In addition, increasing numbers of individuals andbusinesses have taken advantage of the greaterfreedom of movement across international boundariespresented by globalisation, political integration andadvances in technology to reduce illegally their taxliabilities. This form of non-compliance has been assisted by thepolicies and practices of certain offshore financialcentres that facilitate the concealment of undeclaredincome and assets. 33. Tax in a borderless world Few people are enthusiastic about paying taxes.However, most people understand that taxes providethe funds required for the delivery of essentialcommunity services and the infrastructure thathouseholds and firms rely on, inresearch, healthcare, education, security and more. Non-compliance with tax laws reduces the fundsavailable to government for such services. Also, it isblatantly unfair to the majority of law-abidingtaxpayers who must, as a result, bear more than theirfair share of the tax bill. 34. Tax in a borderless world Non-compliance cuts across all taxpayer segments and takes many different forms. Individuals can conceal taxable assets or income through the use of offshore accounts, trusts or by creating so-called shell companies and locating them in tax havens or other countries that do not provide information for tax purposes. Also, small or closely-held businesses may use these shell companies to shift profits abroad, often using fictitious invoices or over (or under) charging for intra-firm transactions. Another all-too-common practice is for some large corporations to manipulate transfer prices between subsidiaries to artificially shift income into low tax jurisdictions and expenses into high tax jurisdictions. 35. Managing Across Borders: NewStrategic Requirements INTERNATIONAL BUSINESSES FACED NEW STRATEGIC challenges in the 1980s. Corporations that had once succeeded with relatively one- dimensionalstrategies efficiency, responsiveness, or ability to exploit learningwere forced to broaden their outlook. Successful transnational corporations integrated all three of those characteristics. They did so by building on the strengths but accepting the limitationsof their administrative heritages.