business organisations in a global context unit 5
TRANSCRIPT
Diploma in Management - 5.2. Business Organisations in a Global Context
Business Organisations
in a Global Context
Unit 5.2
Simona Chilba
Diploma in Management - 5.2. Business Organisations in a Global Context
Evaluate the strategies employed by organisations operating globally
Section 1.3 of Unit 5.2
Your Learning Outcome:
Understand the key differences between global
business operations
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Diploma in Management - 5.2. Business Organisations in a Global Context
Agenda for Section 1.3 of Unit 5.2
Human resources policy
Environmental strategy
Equal opportunities policy
Ethics policy
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Diploma in Management - 5.2. Business Organisations in a Global Context
Agenda for Section 1.3 of Unit 5.2
Financial plan
International partnering policy
Electronic modes of marketing and
communication
Reliable import and export processes
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Diploma in Management - 5.2. Business Organisations in a Global Context
Human resources policy
Represents a total of formal rules and guidelines put together in place to hire, train, assess, and reward the members of their workforce
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Diploma in Management - 5.2. Business Organisations in a Global Context
Human resources policy
Solves any misunderstandings between employees and employers about their rights and obligations in the business place
Is a part of an employment contract between the employee and the company
Is used to establish clear performance expectations for each employee
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Diploma in Management - 5.2. Business Organisations in a Global Context
Human resources policy
Issues it covers:
Equal Employment Opportunity
Employee classifications
Workdays, paydays, and pay advances
Overtime compensation
Meal periods and break periods
Payroll deductions
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Diploma in Management - 5.2. Business Organisations in a Global Context
Human resources policy
Issues it covers:
Vacation policies
Holidays
Sick days and personal leave
Performance evaluations and salary increases
Performance improvement
Termination policies 8
Diploma in Management - 5.2. Business Organisations in a Global Context
Human resources policy
Other issues to be addressed:
Medical/dental benefits provided to employees;
Use of company equipment/resources (access to Internet, personal use of telephones, etc.);
Sexual harassment;
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Diploma in Management - 5.2. Business Organisations in a Global Context
Human resources policy
Other issues to be addressed:
Substance abuse and/or drug testing; smoking;
Pension and retirement plans;
Reimbursement of employee expenses (for traveling expenses and other expenses associated with conducting company business);
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Diploma in Management - 5.2. Business Organisations in a Global Context
Human resources policy
Other issues to be addressed:
Child or elder care;
Grievance procedures;
Employee privacy;
Dress codes etc.
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Diploma in Management - 5.2. Business Organisations in a Global Context
Environmental strategy
It became a necessity as a result of
population growth, economic development
and rapid urbanisation
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Diploma in Management - 5.2. Business Organisations in a Global Context
Environmental strategy
Set of rules:
Watch closely the global environmental trends and modify the company’s plans accordingly
Minimise environmental impact through improved design of products and processes
Adopt a pro-active approach to ecological challenges
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Diploma in Management - 5.2. Business Organisations in a Global Context
Environmental strategy
Set of rules:
Take advantage of eco-friendly technologies
Reduce costs through energy and resources
conservation
Recycle and manage the waste
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Diploma in Management - 5.2. Business Organisations in a Global Context
Equal opportunities policy
Is a stipulation that all people should be treated similarly, unhampered by artificial barriers, prejudices or preferences
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Diploma in Management - 5.2. Business Organisations in a Global Context
Equal opportunities policy
Should state that:
Is committed not only to its legal obligations, but also to the positive promotion of equality of opportunity in all aspects of employment
The application of recruitment, training, and promotion policies to all individuals will be on the basis of job requirements and the individual's ability and merits
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Diploma in Management - 5.2. Business Organisations in a Global Context
Equal opportunities policy
Should state that:
No job applicant or employee receives less favourable treatment on the grounds of sex, race, marital status, disability, age, part-time or fixed term contract status, sexual orientation or religion, or is disadvantaged by conditions or requirements that cannot be shown to be justifiable
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Diploma in Management - 5.2. Business Organisations in a Global Context
Equal opportunities policy
Should state that:
Will not discriminate on the basis of sex, race, marital status, disability, age, part-time or fixed term contract status, sexual orientation or religion in the allocation of duties between employees employed at any level with comparable job descriptions
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Diploma in Management - 5.2. Business Organisations in a Global Context
Equal opportunities policy
The key principles:
Provide equality for all
Promote an inclusive culture
Respect and value differences of everyone
Prevent discrimination, harassment and victimisation
Promote and foster good relations across the workforce and with partner
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Diploma in Management - 5.2. Business Organisations in a Global Context
Equal opportunities policy
Types of unlawful discrimination:
Direct discrimination
Occupational Requirement
Indirect discrimination
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Diploma in Management - 5.2. Business Organisations in a Global Context
Equal opportunities policy
Types of unlawful discrimination:
Associative discrimination
Perceptive discrimination
Discrimination arising from disability
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Diploma in Management - 5.2. Business Organisations in a Global Context
Equal opportunities policy
Types of unlawful discrimination:
Harassment
Victimisation
Reasonable Adjustments
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Diploma in Management - 5.2. Business Organisations in a Global Context
Equal opportunities policy
Case Study
Nuclear Holocaust
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Diploma in Management - 5.2. Business Organisations in a Global Context
Ethics policy
It represents a written set of guidelines issued by an organization to its workers and management to help them conduct their actions in accordance with its primary values and ethical standards
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Diploma in Management - 5.2. Business Organisations in a Global Context
Ethics policy
The content should specify:
An introduction or preamble
Statement of purposes and values
Specific rules of conduct which may be subdivided in various ways
Implementation of the code, which will define administrative processes, reporting, and sanctions
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Diploma in Management - 5.2. Business Organisations in a Global Context
Ethics policy
Basic elements that will appear in about any code of ethics:
Employees’ interaction during working hours
Confidentiality
Employees’ interaction with suppliers and customers
Possible conflicts of interest
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Diploma in Management - 5.2. Business Organisations in a Global Context
Ethics policy
Case Study
What is ethical?
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Diploma in Management - 5.2. Business Organisations in a Global Context
Financial plan
Is an estimate of the total capital requirements for the company’s future plans
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Diploma in Management - 5.2. Business Organisations in a Global Context
Financial plan
It has 3 major components:
Financial Resources (FR)
Financial Tools (FT)
Financial Goals (FG)
Financial Planning: FR + FT = FG
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Diploma in Management - 5.2. Business Organisations in a Global Context
Financial plan
Helps businesses to:
Manage income more efficiently
Increase cash flow and monitor spending habits and expenses
Build a long term capital-base
Identify investment opportunities
Get a whole new approach to budgeting
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Diploma in Management - 5.2. Business Organisations in a Global Context
Financial plan
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Diploma in Management - 5.2. Business Organisations in a Global Context
Financial plan
Types:
Short-term financial plan
Medium-term financial plan
Long-term financial plan
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Diploma in Management - 5.2. Business Organisations in a Global Context
International partnering policy
Describes a long term win-win relationship based on mutual trust and teamwork and on sharing risks and rewards
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Diploma in Management - 5.2. Business Organisations in a Global Context
International partnering policy
In an international partnership, two or more
parties might create different legal entities
that they co-own, such as:
An equity joint venture
A cooperative joint venture
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Diploma in Management - 5.2. Business Organisations in a Global Context
International partnering policy
Key factors:
Understanding
No time pressure
Good connection
Creation of trust and goodwill
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Diploma in Management - 5.2. Business Organisations in a Global Context
International partnering policy
Key factors:
Ability to meet performance expectations
Clear goals
Partner compatibility
Commitment to long term relationship
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Diploma in Management - 5.2. Business Organisations in a Global Context
International partnering policy
Advantages
get instant market access, or at least speed their entry into a new market
to exploit new opportunities
to increase their sales
to gain new skills and technology
to develop new products at a profit
Disadvantages
weaker management involvement or less equity stake
fear of market insulation due to local partner's presence
less efficient communication
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Diploma in Management - 5.2. Business Organisations in a Global Context
International partnering policy
Advantages
to share fixed costs and resources
to enlarge their distribution channels
to broaden their business and political contact base
to gain greater knowledge of international customs and culture
to enhance their image in a global market
Disadvantages
poor resource allocation
difficult to keep objectives on target in time
loss of control over such important issues as product quality, operating costs, employees
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Diploma in Management - 5.2. Business Organisations in a Global Context
Coke versus Pepsi
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https://www.youtube.com/watch?v=qy4_XKYo0rQ
Diploma in Management - 5.2. Business Organisations in a Global Context
PESTEL analysis
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Diploma in Management - 5.2. Business Organisations in a Global Context
Electronic modes of marketing and communication
Refers to the application of marketing and communication principles through electronic media, especially the Internet
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Diploma in Management - 5.2. Business Organisations in a Global Context
Electronic modes of marketing and communication
Some of them are:
Mobile Devices
Social Networking Media
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Diploma in Management - 5.2. Business Organisations in a Global Context
Electronic modes of marketing and communication
Benefits:
Reach
Scope
Interactivity
Immediacy
Demographics and targeting
Adaptability 43
Diploma in Management - 5.2. Business Organisations in a Global Context
Reliable import and export processes
Exports and imports are helping the national economies grow and expand on the global market
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Diploma in Management - 5.2. Business Organisations in a Global Context
Reliable import and export processes
There are three types of business processes:
Management processes
Operational processes
Supporting processes
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Diploma in Management - 5.2. Business Organisations in a Global Context
Reliable import and export processes
Main characteristics:
Definability
Order
Customer
Value-adding
Belongingness
Cross-functionality
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Diploma in Management - 5.2. Business Organisations in a Global Context
Reliable import and export processes
There are two ways of importing and
exporting goods and services:
Directly
Indirectly
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Diploma in Management - 5.2. Business Organisations in a Global Context
Reliable import and export processes
Reliability and trust in a business relationship
are vital to conduct it in a proper manner
It is a great determinant of success, more
than anything else, including content
excellence
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Diploma in Management - 5.2. Business Organisations in a Global Context
Content Excellence
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https://www.youtube.com/watch?v=nY_VIo5nVXM
Diploma in Management - 5.2. Business Organisations in a Global Context
Reliable import and export processes
Methods to determine and improve reliable
business processes:
The Trust Equation
The Trust Creation Process
The Trust Principles
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Diploma in Management - 5.2. Business Organisations in a Global Context
Reliable import and export processes
The Trust Equation
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Diploma in Management - 5.2. Business Organisations in a Global Context
Reliable import and export processes
The Trust Creation Process
Engage the client in an open discussion about his key issues
Listen to what is important and real to the client
Find out what the real root issue is
Clarify benefits
Show commitment to take actions
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Diploma in Management - 5.2. Business Organisations in a Global Context
Reliable import and export processes
The Trust Principles
A focus on the other
A collaborative approach to relationships
A medium to long term relationship perspective, not a short-term transactional focus
A habit of being transparent in all business processes
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Diploma in Management - 5.2. Business Organisations in a Global Context