International Business Essay Example | Topics and Well Written Essays - 3000 words - 4

International Business - Essay Example Multinationals are powerful companies employing many people and earning a lot of money. Often their location is welcomed by governments around the world because of the benefits of employment and wealth they bring to a country. Multinationals are a source for progress. I agree with the statement because of the fact that it gives way to globalization, international relations and sustainable development. The first multinational corporation in the world was the Dutch East India Company and the first modern multinational company is believed to be East India Company. It was a mega corporation holding immense power and control in the sub-continent by coining money, forming colonies and negotiating treaties. Multinationals have power and control, they can use their huge revenues and control over distribution channels and brand loyalty of consumers to push countries to open their markets and lessen their support for local companies. If we talk about China alone, great amount of foreign invest ment has entered their economy with foreign-funded firms increasing from a number of 470,000 to over 500,000 in just a span of two years, from 2004 to 2006. Multinationals form a major part of this increasing number, employing about 24 million people and representing around hundred of China’s 200 large exporters and monopolize main market segments like soft drinks. With the emergence of multinationals, the world is advancing leaps and bounds due to increasing globalization. Technology and communications have advanced to such a level that it has revolutionized the selling of products all over the world. Multinationals get in touch with new communities in the global market by building production factories in other countries, besides, their home country. Coca-Cola, a huge soft drink manufacturer now sells and manufacturers soft drinks in over 200 countries across the world. Similarly, Microsoft, a computer software company, earns its 27% of annual sales revenue outside of the Un ited States. In many ways the world is becoming one large market than a series of separate national markets. The same goods and services can be found in many countries throughout the world. Globalization is the term now widely used to describe the increased worldwide competition between businesses (Stimpson, 2006). There are several reasons for this increasing global competition. Free trade agreements and economic unions have reduced protection for industries. Consumers can now purchase goods and services from other countries with no import controls. Improved travel links and communications between all parts of the world have made it easier to compare prices and qualities of goods from many countries. This has further developed as the internet has become more widely available worldwide. Many countries which used to have undeveloped manufacturing industries have been building up these businesses very rapidly. Countries in South East Asia and China itself used to import many of the go ods they needed. Now, that their own manufacturing industries are so strong they can export in large quantities. This creates much more world competition. Globalization has led to more choice and lower price for consumers. It has forced firms to look for ways of increasing efficiency. Inefficient producers have gone out of business. Many firms have merged with foreign businesses to make it easier to sell in foreign markets. This is one of the

Technological Changes in Organizations Essay Example | Topics and Well Written Essays - 2000 words

Technological Changes in Organizations - Essay Example Lately, many transactions taking place in businesses have incorporated the use of technology and its devices in form of electronic components. The invention of computer technologies was the hallmark of development in information globally. This resulted in the development of soft wares capable of handling technical business transactions with minimal or no errors at all. To promote business growth, managers have entirely embraced the use of technology in their operations (Deb 2001). This reduces the challenges arising from application of technology compared to using the traditional methods in administration. The technologies mostly available for use by businesses are computer technology and information technology. It is in the digital era that electronic transactions have reduced paperwork by improving on modes of accessing business information. Some businesses have been able to embrace technology while others view it as hindrance to their operations. Technology and management Technolo gy has drastically altered the manner in which businesses are conducted (Deb 2001 P 94). The stakeholders in businesses have received this with mixed reactions. To some it has been a blessing, whereas to others a disgust. Furthermore, it has lead to the opening up of new markets by connecting different regions globally. Efficiency has increased in organizations that have fully embraced the use of technology in their business applications. Modern managers are utilizing information technology in decision making using systems such as decision support systems. Implementing technology comes with its challenges in organizations. In the first place maintaining the technological infrastructure demands a lot in terms of expertise required by the management team. Organizations have to incorporate training on technology in their courses to adjust with the modern trends. Organization will align their policies with technological advancements in order to minimize conflicts that may arise in meeti ng requirements of the law as pertaining technology. Technology requires maintenance in terms of costs for the equipments put in place. Incase of a system breakdown, businesses will realize losses that will affect their staff’s morale negatively. In addition, organizations lose traditional expertise initially used in serving guests. Automated machines have replaced human beings thus denying clients the personal touch in service: such as emotions expressions by the service staff. Technology causes anxiety among employees when they are not sure of what might happen in term of technological advances, thus lack of job security. There has to be training and education of employees to ensure they are aware of the current trends in technology. Finally, setting up technological infrastructures such as purchase of computer for information transactions is not the solution to organizations problems. Organizations with limited resources should sought expertise from professionals when hand ling technical business issues. Technology in management According to (Deb 2001, P 109), organizations intending to use technology should set plans that will guide the application of technologies in businesses. Embracing innovations has to be with a purpose and not just for the sake of profits. It will enable analysis of business data and carrying out research to find out market needs. Consequently,