Social-cultural learning can be illustrated through the examination of businesses operating out of both developed and emerging economies. A close examination of their similarities and differences provides distinctions with their beliefs toward business operations and ethics. This type of examination can lend insight into how companies within emerging economies are able to leverage their resources and capabilities in the development and growth of successful operations. The pervasive thought is emerging economies represents untapped potential (Chiou, 2013). However many companies such as Walmart have undertaken operations within these markets only to come up unsuccessful (Peng, 2014). So why would a US giant such as Walmart face problems …show more content…
Assessment Copycat firms within emerging markets (such as Lenovo, Acer and Tata) can be considered learning firms. Copycats essentially learned how to conduct business from an already successful business model. Their ability to transform learning into a viable business has jettisoned them into positions of power within the world’s economies. Lenovo is currently the leader in PC sales worldwide. Although PC sales in the US continue to decline Lenovo’s ability to capture emerging markets such as China, allows them to continue their profitable growth (Gupta, 2012). Core Resources and Capabilities of Multinationals in Emerging Economies The one constant capability with companies from emerging markets is their willingness and capability to learn. Transforming this learning and the abundance of low cost resources allows these companies to execute a low cost strategy. This low cost strategy has provided the inlets into both emerging and developed markets. Using a strict resource based analysis consisting of value, rarity, imitability and organization (VRIO), suggest such an imitation strategy will lead to parity and average returns. An example of this would be Lenovo’s ability to imitate other successful PC manufactures capabilities. Lenovo model adds value but their resources are not rare which means it can be imitated and exploited by another firm. If this is the case why can Lenovo continue to grow? Institutional factors such as understanding the
Opportunities. The opportunities in Walmart’s future are: expansion in developing countries, improvement in human resource practices, and improvement in quality standards. Walmart’s opportunity to expand in developing countries is based on their high-growth economic condition. As the largest retailer in the world, Walmart is consistently growing economically. This means the company can afford to expand into developing countries and continue its role as largest retailer. Additionally, the opportunities to improve human resource
Within less than 30 years, Wal-Mart had transformed from a small rural retailer in Arkansas into the largest retailer in the U.S. In order to continue this rapid growth, the company had started to pursue international expansion grounded in the belief that the firm’s business model of offering quality products at low prices and great customer service would appeal to consumers everywhere around the world (p.8)[1]. China was of particular interest in going international as Wal-Mart’s top management held the opinion that it was the only market in which the firm’s success story in the U.S. could be repeated (p.2/8). However, in 2005 (nine years after its
While some countries within Asia are still highly focused at getting the most amount of profits, regardless of workers and their human rights or business ethics, others have improved significantly in the past decade. This is in part, because countries with far more advanced business ethics than Asia business ethics demand that Asia gets onboard and do more than just talk about improving business ethics, but actually do so. Events of 2008 sped up the rise of Asian finances and business worlds. While the growing Japanese economic power does pose some challenges at the social and the environmental levels, there is no question that the world necessitates the addition of the Asian business world and the Asian society in order to aid in technological innovation including the design, processes, and concept implementation are key during these challenging times, which include issues such as the eradication of poverty, climate change, and food shortages ("Asia business ethics," 2012).
Ethics must be global, not local. In order to build a truly great global business the leaders need to bring forward a global standard of ethical practices.
Ethics in a global concept is difficult to pinpoint because each country has its own culture. This culture can affect the government and the citizens, which in turn, affects the way businesses are managed. However, this can become a problem when companies become international. On the other hand, there are global common values that many countries possess that can help fair commerce across countries. These shared values come from the fact that many of the world’s religions share the same values. Therefore, “relative prosperity of developed economies seems implicitly to be taken as evidence of a sustainable form of free market capitalism that is supposed to be a universal economic destination” (Michaelson, 2010, p. 239). However, when a country does not share these values, or has a leader that does not it can become a major problem for
This global business, cultural analysis study examines the cross border commerce of Germany’s reformation, and what it takes for business people to be successful in Germany. Cross border commerce is the overall term used for business ventures in this study as it relates to international business, success in Germany, the United States, and other regions. The purpose of this paper is twofold: The first purpose is to review four questions which answer what it takes for business people to be successful in Germany by cross border commerce. Reflecting the individualism of Germany, and the reforming of a global superpower,
As a sociologist, we learned that every perspective we have is rooted from outside influences, familial, educational and the interactions with others in-between. Ethics has been said to be based on the foundation of religion, whether we have one or not. Not only are some raised with a certain belief but our governing laws are rooted from them. This is something we share with all countries; sufficient cultural differences in personal and work-related aspects of society are affected by this. Globalization has shined a light on the diversity of different countries work ethics and beliefs for doing business.
Globally, the world of business has also led to an increase in ethical difficulty and dilemmas for managers of cross border firms. In the article titled, Okpara John O. (2014), “The effects of national culture on managers’ attitudes toward business ethics: implications for organizational change”, Okpara John O argues how the impact of globalization in the world of business evaluates the importance of incorporating cultural differences into ethics research. The article is integral part of the idea that cultural differences exist among managers from different continent. These differences in individuals can be highly contributed to perceptions of power management, readiness to cope with unforeseen circumstances, impact for material goods and quality of life among staff, open-minded to change, and group oriented-related within an organizational environment. These differences definitely affect the ethical attitudes and decision-making abilities of managers, especially those in multicultural environments. Recently, when multinational organizations that are spread across the boundaries of different countries displaying different cultures develop their organizational codes of conduct, they are now taking into account the cultural attributes of their local entities and the people who make those entities into consideration. Therefore, a code of conduct ethics that balances cross-cultural perceptions and values is likely to have a greater chance of acceptance among the managers who are expected to abide by it especially when such managers represent different cultures. Okpara John O.
Conducting ethical business in the United States can be seen as clear cut to us. Although we are a diverse nation, as U.S. citizens, most gain experience in the professional environment where ethics is explained thoroughly enough that one is able to determine what is ethical and what is unethical. When it comes to ethics in the international arena, Thomas Donaldson explained how that structure almost does not exist since ethical culture, practices and the social norm is different in each country. In the article, Donaldson debunked previous theories like cultural relativism and ethical imperialism while coming up with a guideline that can help companies proceed in understanding cultural difference while still being ethical. (Donaldson, 1996, pp. 48-52) As I read through the article, it made me remember past events that had cultural dilemma while helping me find new ways to help my ethical decision making skills.
In order to understand the success and failure of Walmart Stores, Inc. in markets other than the United States, we
These findings suggest that an American company should not assume that it can adapt an ethnocentric approach and operate in a foreign country by its own rules. As shown in the case study and research, complexity of culture and other economic and social factors have a strong impact
This paper will present a Cultural Analysis for doing Business in Ireland. This paper will answer four main questions, while adding additional information and insight to the nation of Ireland. Among reading this paper, the reader should be able to understand Ireland’s culture, how people in Ireland conduct business, how U.S. and Ireland compare in business, and the implications for U.S. businesses that wish to conduct business in Ireland. These research questions were tackled using scholarly articles found through the Internet and Liberty Online Library Database. While conducting this research, a long period was spent reading through the articles to find points of relevance to this paper, while adding some unique attributes to this paper as well. Anyone wishing to conduct business in Ireland, want to find out about Irish people, or have an interest in traveling to Ireland, will learn all they need to know while reading through this paper.
In doing business so many times an organization must think globally. This might be done to increase sales and/or profits or to lower labor costs. In either case problems can occur due to ethical and cultural barriers in global expansion. In this paper I will attempt to show some of what a global organization and a cultural issue that affects their interactions outside the United States by identifying and comparing some of these cultural differences.
Both Dell and HP are two strong players in PC industry which refers to an industry where companies produces PCs (desktops and notebooks), handheld devices (smart phones and tablets), and workstations. However, with growing global expansion, Dell and HP’s performance differs. Dell, once the world’s largest PC maker in 2001, has continually lost its market share to HP and Acer since 2007 (Guglielmo 2009). The cause is rooted in two differences of these companies: company diversifications and core competences. Therefore, how firms can continually survive in the PC business is more of an issue for Dell than for HP.
“If necessity is the mother of invention, then resource shortage is the father of innovation” (Sheth 2011). For that reason, firms operating in emerging markets gain advantage by