Disadvantages Of Porter's Diamond

Diversity must be created and maintained with in organizations. The purpose of this paper is to examine the impacts of diversity onto an organization in addition to explaining the legally mandated and stakeholder driven explanations for mandatory diversity.

Many organizations are beginning to view diversity as an organizational change. This could possibly mean changes in the power dynamics and organizational structure, the way decisions are made, and the way an

Strategies for managing international business consist of marketing management, operations management, finance management, and human resource management.

J., & Ghauri, P. N. (2015). International business strategy: theory and practice. London: Routledge, Taylor & Francis Group.

Michael Porter investigated why nations have a competitive advantage in specific industries his findings saw two basic types of competitive advantage that firms could pose low cost or differentiation. If you combine the two types of competitive advantage and allow room for a way in which firm wish to achieve them this will lead to three generic strategies which will achieve higher average performances in industries: cost leadership, differentiation and focus.

Organizations with wide range of diversity face a lot of challenges. Some of those challenges are:

Organisations are noticing the need and significance of putting diversity into assorted qualities and incorporation as a major aspect of their general ability administration hones and to constantly challenge their associations to make the association between those standards and their corporate execution. Diversity is particularly significant in today's worldwide commercial center, as organisations interface with various societies and customers. The adjustments touch each range of the business by possibly bringing about expanded imagination, expanded profitability, new dispositions, new dialect abilities, worldwide seeing, new procedures, and new answers for troublesome issues. More prominent nimbleness, better market knowledge, more grounded client and group faithfulness, advancement, and enhanced representative enrollment and maintenance. The organizations that neglect to see the significance of Diversity and consideration may get themselves not able to pull in and hold the sorts of clients, workers, and business accomplices that constitute our changing world in 5 to 10 years

Equally, companies based overseas cannot be managed adequately from the United States. In other words, firms who outsource jobs take a major risk that the contracted foreign firm will do its job well. A firm can only assume that the level of service from overseas manufacturers will be the same as the level of service in the United States. There is also the question of a firm's reputation, when outsourcing becomes extremely difficult to monitor. Companies producing overseas will find countries like China, is primarily lacking the standard level of quality control, unless extreme effort and time is implemented. Without proper measures, this can result in harmful products to US consumers. It is also, very difficult, expansive, and most of all expensive to press a lawsuit across borders to correct these problematic

The savings do not tell the whole story, however. Offshoring does have hazards which companies considering the option must

Management must promote the contribution of each diverse perspective as well as to recognize and appreciate wide-ranging cultural differences. Another reason organizations are embracing is the fact that the diversity in their employees has a direct impact on the diversity of their consumers and customer base. However, there are also issues managers must contend with such as a lack of cohesiveness, interpersonal conflicts, difficulties in decision making and communication, and lastly resistant to change (Nelson, 2013, p. 53). Finally, managing and placing value on diversity in the workplace is not as much changing in company policy as it is changing mindsets and attitudes. Diversity should be a corporate value, a top priorityfor managers, and a vital objective for any organization along with becoming a foundation to the organizations strategic blueprint. Diversity does have its advantages; the benefits of diversity include attracting and retaining the best employees, as well as improved marketing efforts, superior problem solving, and enhanced flexibility within the organization along with the obvious creativity and innovation diversity brings (Nelson, 2013, p.

Rugman’s analysis resulted in the “double diamond being creative which is a better tool to analyze the international competitiveness. Rugman’s criticism of Porters diamond appears have to be successful as Porter himself later on admitted that firms can have multiple home bases. For instance, Mexico’s economic future is closely linked to its neighbor the United States of America and also through North America. Hence the double diamond proposed by Rugman proves to be more effective in determining Mexico’s success/ resurgence in various economic sectors.

While most companies strive to beat the prevailing competition globally, the marketplace calls for uniqueness that can only be harnessed through diversity management and leadership. Organizations must figure out various approaches to unlock every potential within the market. In fact, diversity is simply about embracing all types of people in the industry, who firmly stands for diverse things and who represent diverse cultures, ideas, generations and thinking. Through diversity, innovation can be restated as a way of looking at difficult problems and presenting new perspective to be

As the globalization of the world economy and the speed up integration process the international competition is increased, the requirement for international business strategy is rising ever higher. International business strategy plays a vital role in the global economy, it not only to guide a company's development, but also link the global economy. What is strategy? A strategy is the pattern or plan that integrates an organisation's major goals, policies and action sequences into a cohesive whole. (Mintzburg, 1984) Those strategies established long-term objectives and provided the overall guidance for the operational decisions which are

In the article “The Competitive Advantage of Nations” Michael Porter describes a diamond shaped relationship of forces that define a country’s potential for being competitive in a specified industry. The four points on the diamond representing the different forces are: factor conditions; demand conditions; firm strategy, structure and rivalry; and related and supporting industries. According to Porter, the four points apply pressure to each other resulting in a national

Any country should use porter diamond theory of national advantage. It's designed to help understand the competitive advantage nations. It suggests that the national home base of any organizations are playing a supportive role in shaping the size or scoop to which it is likely to achieve advantage on a global scale. This home base provides basic factors, which support organizations from building advantages in international competition. Porter classifies four determinants: Factor Condition, Diamond Condition, Relatives & supporting and Structure, strategy & Rivalry. Egypt government acts to catalysts to improve Egypt position in a globally competitive economic environment. They found that they can create new factors such as skilled labor and high technology (Porter M., 1990). Porter's diamond model suggests threat there are inherent reasons why some nations are more competitive than others on an international market. Another factor that influence in competitive advantages such as the policies that put by government. One of the most influencer policies is (FDI) Foreign direct investment