Business Fundamentals Book

Business Fundamentals Book
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    Business Fundamentals

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    Table of Contents1. 8, The busines 8,s 8, eco-system: 8, Your 8, path 8, to 8, finding 8, the pot 8, of gold 8, at 8, the end 8, of the rain 8,bow!. .8 8,The 8, business 8, eco-system: 8, Your 8, path 8, to 8, finding 8, the 8, pot 8, of 8, gold 8, at 8, the 8, end 8, of 8, the 8, rainbow!..........

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    280,When innovation fa 280,ils: 280, deleting 280, products....................................................................................................28014. 288, International 288, business 288, for 288, the entrepren 288,eur.................................................................

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    1. The business eco-system: Your path to finding the pot of gold at the end of the rainbow!The Business Fundamentals text is designed to introduce students, particularly those in developing economies, to the essential concepts of business and other organizations. It does this by focusing on small...

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    1. The business eco-system: Your path to finding the pot of gold at the end of the rainbow!known as entrepreneurs. Entrepreneurs throughout the world are extremely enthusiastic individuals who devise visionary methods to accomplish their new venture ideas while simultaneously convincing others to...

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    1. The business eco-system: Your path to finding the pot of gold at the end of the rainbow!Exhibit 2: Business eco-system wheelThe Business Eco-system Wheel is reprinted and adapted from the Entrepreneurial Marketing Wheel with permission from Mentorography, Inc. © 2008. All Rights Reserved. Ent...

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    1. The business eco-system: Your path to finding the pot of gold at the end of the rainbow!this customer changing his mind about buying the product or services? What will be the impact of a crisis during an emerging trend?What will it cost to make a sale to this customer? If there is a common pit...

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    1. The business eco-system: Your path to finding the pot of gold at the end of the rainbow!If you encounter any of the four Go Signs when you are assessing market opportunity, don’t take time out to pat yourself on the back. This is because if you look over your shoulder you may see someone els...

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    1. The business eco-system: Your path to finding the pot of gold at the end of the rainbow!• Offering out-sourced from other countries call center services• Providing computer consulting servicesPlaces for inspiration"Kiva actionURI(http://www.kiva.org/):(www.kiva.org) is the world's fir...

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    1. The business eco-system: Your path to finding the pot of gold at the end of the rainbow!• Creating societal wealth means the company you are starting wants to create a product or service that will make the world a better place. The product or service you plan to create will enhance societal ...

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    1. The business eco-system: Your path to finding the pot of gold at the end of the rainbow!What do customers see in the brand that the founders didn’t? 21,”9Source: “Understanding the Essence of Brand Advantages” questions reprinted with permission from Mentorography, Inc. © 2008. All Ri...

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    1. The business eco-system: Your path to finding the pot of gold at the end of the rainbow!Exhibit 8: Mid day (Adapted) Image created by: Taissia Belozerova, Graphic Designer, Artist, MBA Candidate at Pepperdine University Class of 2009Strategic advisors: Advisors are people typically with experi...

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    1. The business eco-system: Your path to finding the pot of gold at the end of the rainbow!Guy Kawasaki called, How to Change the World: A practical blog for impractical people. Check it out: actionURI(http://blog.guykawasaki.com/):http://blog.guykawasaki.com.Social networks: These are websites d...

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    1. The business eco-system: Your path to finding the pot of gold at the end of the rainbow!• If I end up doing something that was unethical what will be my process to correct the situation and to communicate the situation to my stakeholders?• Will I listen to my gut if I have a strange ethica...

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    1. The business eco-system: Your path to finding the pot of gold at the end of the rainbow!generating a growing amount of good will for your venture. And good will is something you can take to the bank! “Goodwill” is the difference between what your company is worth and what you are actually ...

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    1. The business eco-system: Your path to finding the pot of gold at the end of the rainbow!• tasks• person(s) assigned to complete tasks• dates that tasks must be completed by as well as proper task sequence• an area to check off when a task has been effectively completed• a comment sec...

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    1. The business eco-system: Your path to finding the pot of gold at the end of the rainbow!Once you have completed your process log you must repeat the analysis phase. Gather your resident experts as well as some new mentors and outside board members to analyze the firm’s processes. Look for cu...

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    1. The business eco-system: Your path to finding the pot of gold at the end of the rainbow!Have you devised the best forum for the new product launch event? Is the event scheduled during an industry tradeshow where every- one will already be assembled and you can easily fold your event into the b...

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    1. The business eco-system: Your path to finding the pot of gold at the end of the rainbow!Timelines: Successful public relations practitioners are known for keeping long timelines of checklists to make sure events and campaigns are carried out flawlessly in order to achieve the maximum amount of...

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    1. The business eco-system: Your path to finding the pot of gold at the end of the rainbow!metal roof. Her home was also financed through a Gramee 40,n21 40, microcredit home loan. And, best of all, she told us how happy she was and how microcredit changed her life.Although Meera holds the distin...

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    1. The business eco-system: Your path to finding the pot of gold at the end of the rainbow!join the Muslims and Hindus of Bangladesh in the mustard seed of microcredit, the mountain would move much faster 42,.24Jay Milbrandt’s Journal Entries from BangladeshWhat Third World?The man staring at m...

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    1. The business eco-system: Your path to finding the pot of gold at the end of the rainbow!Exhibit 11: Striking gold Image created by: Taissia Belozerova, Graphic Designer, Artist, MBA Candidate at Pepperdine University Class of 2009Early-stage entrepreneurs can rejoice when they invest the time ...

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    2. The mind of the entrepreneur: Your entrepreneurial journey begins by embarking on your own hero’s journey!Opportunistic Nature: Sees the possibilities even before they exist. Can take advantage of an upcoming trend or unite unrelated processes to create a unique business venture...Problem So...

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    2. The mind of the entrepreneur: Your entrepreneurial journey begins by embarking on your own hero’s journey!9) If you were busy with a deadline for work and or school would you miss completing this deadline on time because you gave your own new venture/start up/new product idea a higher priori...

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    2. The mind of the entrepreneur: Your entrepreneurial journey begins by embarking on your own hero’s journey!Worth 1 Point Add 1 Point____faced with failure, great adversity and seemingly insurmountable obstacles. 12) Ask someone who has known you since you were a child how many of the entrepre...

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    2. The mind of the entrepreneur: Your entrepreneurial journey begins by embarking on your own hero’s journey!Reason: This may appear to be a trick question. A values-centered leader would not sacrifice one important commitment for another even if it was to help a social enterprise. Part of star...

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    2. The mind of the entrepreneur: Your entrepreneurial journey begins by embarking on your own hero’s journey!Now you are ready to go out and potentially create your own hero’s journeyChapter summaryIn Chapter 2 titled, “The mind of the entrepreneur”, we reviewed the characteristics of an ...

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    3. Business models and marketing:an overview Osterwalder goes on to say:“For managers and executives this means that they have a whole new range of ways to design their businesses, which results in innovative and competing business models in the same industries. Before it used to be sufficient ...

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    3. Business models and marketing:an overview Exhibit 12: Success = Business model design and implementation If we seek to have a successful test result from a business model it is mandatory to have a clear vision as well as a sound business model design. The rest is a matter of testing and implem...

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    3. Business models and marketing:an overview Consumer marketing modelsThe formal use of marketing concepts is a fairly recent activity in developing economies. In the past, most companies focused on producing products or offering services without much emphasis on customers and wants. Understandin...

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    3. Business models and marketing:an overview • Price: What should be the appropriate price for this product that reflects not only its cost but also its benefits to compete with other products in the same segment or substitute products? • Place: In what markets should the company offer the pr...

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    3. Business models and marketing:an overview In this step, Dorfman proposes prioritizing features and benefits identified by clients, suppliers, and customers. Different qualitative research techniques such as in-depth interviews, ethnographies, and focus group sessions permit the identification ...

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    3. Business models and marketing:an overview the BMW is actually worth 30 per cent more than a comparable automobile from Cadillac or Nissan. An example of a car positioned towards a low cost niche is the Mazda Miata, a two-seat sports car that costs much less than comparable cars. Finally, you c...

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    3. Business models and marketing:an overview may become a dog. So, managers should either invest heavily in order to improve market share, or sell off/invest nothing and generate whatever cash is possible. The McKinsey matrixThe McKinsey matrix is a later and more advanced form of the BCG Matrix....

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    3. Business models and marketing:an overview The New York subsidiary is located in one of the most visited areas of Manhattan. It is housed on three floors, a huge locale focused on selling all type of candies. Every floor has a thematic decoration, characters, and games, depending on the type of...

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    3. Business models and marketing:an overview To illustrate these concepts in a live situation, we have included a discussion of how a market research study was performed to determine the potential market for a new concept for funeral services in Monterrey, Mexico.Market research to determine the ...

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    3. Business models and marketing:an overview Discussion questions➢ Think of an industry with which you are familiar. Discuss the major elements of a business model and apply it to the industry chosen. What features in the model appear to be a standard compared to other industries? ➢ What are ...

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    4. How to organize and lead an entrepreneurial venture• Provide the vision and direction for the company. Owners set the direction for the values of the company, develop its product and service strategies, and set the tone for its relationships with customers. • Develop and refine processes a...

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    4. How to organize and lead an entrepreneurial ventureExhibit 19: A Function-based organizationSales: includes the Sales Manager, the account managers and estimators. Account Managers are assigned by building or a major corporate account. This way everyone in the company, and more importantly the...

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    4. How to organize and lead an entrepreneurial ventureDepartmentation by functionGrouping activities by function is the most widely used form of departmentation. Similar activities are housed in a department or under a single chain of command. For example, sales, advertising, public relations, an...

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    4. How to organize and lead an entrepreneurial ventureDepartmentation by matrixSome firms are organized by using a mix of departmentation types (matrix organization). It is not unusual to see firms that utilize the function and project organization combination. The same is true for process and pr...

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    4. How to organize and lead an entrepreneurial ventureCentralized versus decentralized organizationsCommunication is essential to disseminate information throughout organizations and can take place at many levels. There are two communication models that are utilized—centralized and decentralize...

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    4. How to organize and lead an entrepreneurial venturepersonal liability extends well beyond amounts invested in the business or even beyond assets purchased by the business, this type of operation is considered high risk.The amount of capital required to start a sole proprietorship is generally ...

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    5. Selecting and managing your teamThe evidence on the results of implementing a high-commitment management system is striking and strong. Research has been conducted in many industries, from banking to automotive to semiconductors to service. Some research has focused on one industry while other...

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    5. Selecting and managing your teamemployees influence in the organization (Garvin & Roberto, 2001). Visible action is as important to influence as consideration (Solnik, 2006). Action provides the follow up that allows management to make it apparent to employees that they have influence; it ...

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    5. Selecting and managing your teamDiscrimination-and-fairness • Equal opportunity, fair treatment, recruitment, and compliance with US federal Equal Employment Opportunity requirements • Leaders work towards restructuring the makeup of the organization to reflect more closely that of society...

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    5. Selecting and managing your teamfor the opportunity to prove themselves and have minimum qualifications, such as a college education, that a firm seeks.• Headhunters and recruitment services: These outside services are designed to essentially compile a talent pool for a company; however they...

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    5. Selecting and managing your teamprocess. Having a common set of information about the applicants upon which to compare after all the interviews have been conducted allows hiring managers to avoid prejudices and all interviewees are ensured a fair chance (Smith G.). Many companies choose to use...

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    5. Selecting and managing your teamThe well-trained employee creates an advantage for him or herself. By attending training sessions, employees can deepen their existing skill set, increase their overall skill set and increase their understanding of the organization. Additionally, the trained emp...

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    5. Selecting and managing your teamhave used the system, an ROI analysis and test at the end of the session (Fukami, Strategic Human Resources: Training, 2007).Training in the context of global businessWhen examining the need for and type of training in the context of global/international busines...

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    5. Selecting and managing your teamHymowitz says that managers are not spending adequate time in understanding their team members and providing them with opportunities to learn and grow on the job (When Managers Neglect to Coach Their Talent, 2007). This is leading to employees feeling alienated,...

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    5. Selecting and managing your teamPerforming the appraisalPerforming an appraisal on employees can be nerve racking for both parties if the situation is not handled correctly, and is thus seen as one of the most difficult tasks managers face. There are many acts a manager can perform to make the...

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    5. Selecting and managing your teamunderstanding after giving feedback, ask the person you are communicating with to restate their understanding of the issue being discussed (McGill & Beatty, 1994). When thinking about feedback in an organization, it is likely a person will think of performan...

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    5. Selecting and managing your teamactionURI(http://www.answers.com/topic/ken-blanchard):http://www.blackwell-synergy.com/actionURI(http://www.answers.com/topic/ken-blanchard): doi/actionURI(http://www.answers.com/topic/ken-blanchard): abs/10.1111/j.1744-6570.1996.tb01586.xLink your knowledge:Cli...

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    5. Selecting and managing your teamsurvey). You can also enact a policy of “leading” the market by raising the line, and the policy of “lagging” the market by lowering the line. How do companies decide the pay associated with each job? First, they analyze the content of each job. Second, ...

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    5. Selecting and managing your teamDetriments of benefitsBenefits can provide companies with ways to attract high quality employees and help retain them especially if the benefits offered are significantly different or better than the benefits offered by competitors. However, there are negative s...

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    5. Selecting and managing your teamthey should reveal in their pay systems. Some US companies select to announce salary ranges. For example, for each position American Express posts the market pay ranges so that its employees can compare them with their salaries. Some companies disclose the formu...

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    5. Selecting and managing your teamCreate a standard method for each job.Successfully select and hire proper workers.Effectively train these workersSupport these workers.Hertzberg's Motivation-Hygiene theory attempts to uncover psychological needs of employees and enhance employee satisfaction. I...

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    5. Selecting and managing your teamThere are many factors to take into consideration when terminating an employee. First and foremost, an employer must take into account the nature of the relationship that exists between the organization and the employee in order to assess the legality of the ter...

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    5. Selecting and managing your teamterminations may cause some of the organizations best workers to become less effective or seek new employment for fear of the same treatment. In some cases, it is appropriate for managers to engage in progressive discipline before terminating an under performing...

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    5. Selecting and managing your teamthe first ones to be rehired if business picks back up. Business will always have companies that are growing and companies that are dying, and downsizing and layoffs are a natural part of that cycle. Since downsizing is a normal part of business it can often be ...

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    5. Selecting and managing your team➢ Discuss the four different categories of diversity. Give one reason why each would be important to a company.➢ Discuss the pros and cons of internal and external recruiting. Which one do you prefer, and why?➢ Should tests be used to select employees? Why...

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    5. Selecting and managing your teamEmployee Recruitment: How to Hire the Right People. (1999). Retrieved 14 2007, May, from http://www.truckstoptravelplaza.comEmployment Case Law Headlines. (n.d.). Retrieved May 19, 2007, from EEO News: http://www.eeonews.com/news/adea/index.htmlFalcone, P. (2002...

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    5. Selecting and managing your teamKulik, C. (2004). Human Resources for the Non-HR Manager. New Jersey: Lawrence Erlbaum Associates, Inc.Lashinsky, A. (2007, January 29). Google's Employment Roster. Fortune .Latham, G., & Saari, L. (1984). Do People Do What They Say? More Studies of the Situ...

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    5. Selecting and managing your teamSpreitzer, G. (1995). Psychological Empowerment in the Workplace: Dimensions, Measurement, and Validation. Academy of Managment Journal , 38, 1442-1465.Srohm, O. (2002). Organizational Design and Organizational Development as Preconditions for Good Job Design an...

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    6. Marketing on a global scalefrom non-marketing activities? What activities should one refer to as marketing activities? What institutions should one refer to as marketing institutions? Marketing is advertising to advertising agencies, events to event marketers, knocking on doors to salespeople,...

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    6. Marketing on a global scaleTable 4: Kinds of marketing ClassificationExampleFactorsMacromarketingThe devaluation of the yenEmphasis of studyMicromarketingA pricing strategy for Wal-MartPerspective, receiver of consequencesGoods MarketingNabisco InternationalTangibility, standardization, storag...

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    6. Marketing on a global scalegreatly affect a strategy's outcome. As the US market becomes more and more saturated with US-made products, the continued expansion into foreign markets appears inevitable. Global marketing differs from international marketing in some very definite ways. Whereas int...

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    6. Marketing on a global scaleStandardization and customizationIn 1983, Harvard marketing professor Theodore Levitt wrote an article entitled, "The Globalization of Markets", and nothing about marketing has been the same since 156,.2 156, According to Levitt, a new economic reality-the ...

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    6. Marketing on a global scaleThe stages of going internationalEarlier in our discussion on definitions, we identified several terms that relate to how committed a firm is to being international. Here we expand on these concepts and explain the rationale behind this process. Two points should be ...

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    6. Marketing on a global scaledistributors, agents, and government officials. They also coordinate trade missions and assist with contracts and export and import arrangements. Trade intermediariesSmall manufacturers who are interested in building their foreign sales are turning to trade intermedi...

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    6. Marketing on a global scaleenvironmental factors and resources/capabilities, it also includes a determination of the level of commitment exhibited by the business, as well as possible methods of entry. These last two factors are interrelated in that a company's level of commitment to internati...

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    6. Marketing on a global scalePricingPricing products in foreign nations is complicated by exchange rate fluctuations, tariffs, governmental intervention, and shipping requirements. A common strategy involves a marketer setting a lower price for their products in foreign markets. This strategy is...

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    6. Marketing on a global scalerevolve around another consideration: "What do we want to accomplish? What are our goals?" The discussion should next turn to the methods for achievement of goals and the removal of obstacles to these goals. This step is often skipped or avoided. Usually, w...

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    6. Marketing on a global scaleTimeAmericans seem to be fanatical about time when compared to other cultures. Punctuality and deadlines are routine business practices in the US. However, salespeople who set definite appointments for sales calls in the Middle East and Latin America will have a lot ...

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    6. Marketing on a global scaleAlmost all the countries in the Western hemisphere have entered into one or more regional trade agreements. Such agreements are designed to facilitate trade through the establishment of a free trade area customs union or customs market. Free trade areas and customs u...

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    6. Marketing on a global scalesometimes successfully. When they are successful, their own nation's economy receives a good boost. When they are not successful, the multinational firm often buys them out.Japanese marketers have developed an approach to managing product costs that has given them a ...

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    7. Operations managementThe operations strategy should support the overall organization strategy. For example, JetBlue airlines is a successful airline that has an organization strategy of providing high-value air transportation service to travelers. JetBlue strives to provide fun, comfortable, a...

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    7. Operations managementExhibit 27: Example of typical transformation processThe 3M Company is a good example of the strategic importance of transforming inputs into outputs that provide competitive advantage in the marketplace. 3M manufactures a top-quality adhesive tape called “Magic Tape”....

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    7. Operations managementQuality decisionsThe decision relating to quality is not “how much” quality to have. If asked whether they support high quality in their organization, virtually all managers will respond enthusiastically that they fully support high quality! Rather, the quality of good...

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    7. Operations managementfinancially justified because the high volume of production spreads out the investment cost over more items/customers. A paper mill is a good example of a repetitive process. The manufacturing requirements are well-understood, capital investment in automation is high, and ...

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    7. Operations managementLocation decisions There are many factors that can determine where an organization will locate its facilities. For any given situation, some factors become more important than others in how facility location affects an organization’s efficiency and effectiveness. • Pro...

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    7. Operations managementSimilarly, a car manufacturer who purchases defective tires from a supplier risks incurring high costs of recalls and lawsuits when the defects are discovered.Preventive maintenance is necessary for preventing equipment breakdowns. Many manufacturing companies use sophisti...

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    7. Operations managementin procedures that prevented patients from getting these secondary illnesses, the hospital was able to save USD 40,000 per patient in these cases. • Employee involvement: Employees in a TQM environment have very different roles and responsibilities than in a traditional ...

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    7. Operations managementSpecial topic: supply chain managementSupply chain management is the business function that coordinates and manages all the activities of the supply chain, including suppliers of raw materials, components and services, transportation providers, internal departments, and in...

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    7. Operations management• Rationing and gaming is when a seller attempts to limit order quantities by delivering only a percentage of the order placed by the buyer. The buyer, knowing that the seller is delivering only a fraction of the order placed, attempts to “game” the system by making ...

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    7. Operations managementFor many years, all three suppliers have continued to provide outstanding quality, delivery, and cost performance to Deere. The suppliers benefited by gaining a long-term customer with a large amount of profitable business. Deere realized a 50 per cent drop in production c...

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    7. Operations managementFlexible resourcesThe enemy of JIT is uncertainty. A JIT environment thrives on predictability in customer demand, production processes, suppliers, and workers. Of course, uncertainty cannot be completely eliminated in most organizational environments. The defense against ...

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    8. Securing and managing external relationshipsThis chapter describes the components of external relationships to provide the background needed to understand and form the right relationships for organizations of all sizes. These include the types of common relationships, the phases of relationshi...

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    8. Securing and managing external relationshipsvalues and encourages honesty. Studies have, in fact, shown that telling the truth strengthens team-building efforts and increases morale and productivity (Smith, 2007).• Likeability: Is finding a common, friendly ground between the partners. The r...

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    8. Securing and managing external relationshipswishes to sell as many items as possible. Similarly, the success of this relationship will not make or break the school’s success as an educational institution. This affiliation is established out of convenience. However, if the vendor begins to ha...

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    8. Securing and managing external relationshipsThe key to every successful partnership is communication and, as a result, technology should be used as a means of increasing communication lines. This may mean using e-mail to interact with customers, or in a much more complex manner, using ongoing ...

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    8. Securing and managing external relationshipsphases that explains how they are identified through how the partners become committed to continuous improvement of the relationship. The next section presents these phases of relationship development.Phases of relationship developmentStrategic partn...

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    8. Securing and managing external relationshipsExhibit 37: Movement through a supply chainThe above figure illustrates the movement of products through a supply chain network. The supply chain begins when suppliers send raw materials to a factory. The factory may use the materials in a number of ...

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    8. Securing and managing external relationshipsExhibit 38: PFR Process ModelSource: actionURI(http://www.scdigest.com/images/misc/Original-CPFR-Model.jpg):http://www.scdigest.com/images/misc/Original-CPFR-actionURI(http://www.scdigest.com/images/misc/Original-CPFR-Model.jpg):Model.jpg. Accessed 3...

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    8. Securing and managing external relationshipstheir jobs. There’s a difference between outsourcing and off-shoring. When a vendor in another country performs an outsourced function, off-shoring is the correct terminology for describing the relationship. The jobs being outsourced in an organiza...

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    8. Securing and managing external relationshipsnetworked organization, having similar goals, missions, and similar ways of performing the business processes are vital for the success of the relationship.Chapter summaryThis chapter presents the basics necessary for developing relationships among o...

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    9. Financial and managerial accounting; financing your organization“Financial accountancy (or financial accounting) is the field ofactionURI(http://en.wikipedia.org/wiki/Accountancy): accountancyactionURI(http://en.wikipedia.org/wiki/Accountancy): concerned with the preparation ofactionURI(htt...

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    9. Financial and managerial accounting; financing your organizationdue on short term loans. Long-term liabilities (sometimes called fixed liabilities) are liabilities of a more permanent nature like loans that are not due in the current year (long-term debt), and the like. • Equity accounts: re...

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    9. Financial and managerial accounting; financing your organizationBasic financial statementsLater in this chapter we will discuss some of the other types of reports you will want to be able to produce in order to plan and control your business finances, but for now, let us concentrate on the two...

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    This book is licensed under aactionURI(http://creativecommons.org/licenses/by/3.0/): CreativeactionURI(http://creativecommons.org/licenses/by/3.0/): CommonsactionURI(http://creativecommons.org/licenses/by/3.0/): Attribution 3.0actionURI(http://creativecommons.org/licenses/by/3.0/): LicenseTable 8...

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    9. Financial and managerial accounting; financing your organizationentered into a ledger there must be a debit, a concept created by Florentine merchants and hailed by Goethe as "one of the most beautiful discoveries of the human spirit". “Three traits shared by successful merchants, ...

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    9. Financial and managerial accounting; financing your organizationCustomer Name:Customer Address:Customer City/State:Customer Telephone Number:Customer email address:DateInvoice NumberSales AmountPayment AmountPayment Reference NumberBalanceJune 27, 2009870345980USD 200USD 200.00July 6, 20098703...

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    9. Financial and managerial accounting; financing your organizationTable 9: 2009 Accounting Software Review Product ComparisonsPackage NameOverall RankingPrice in US DollarsPeachtree CompleteExcellent$249.99MYOB Business EssentialsVery Good Plus$99.00Quickbooks ProVery Good$178.95NetSuite Small B...

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    9. Financial and managerial accounting; financing your organizationCash is generated primarily by sales. But in most businesses, not all sales are cash sales. Even if you have a retail business and a large percentage of your sales are cash, it is likely that you offer credit (charge accounts, cha...

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    9. Financial and managerial accounting; financing your organization“The biggest challenge in measuring customer profitability is the assignment of costs to customers. While it is usually clear what revenue each customer generated, it is often not clear at all what costs the firm incurred servin...

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    This book is licensed under aactionURI(http://creativecommons.org/licenses/by/3.0/): CreativeactionURI(http://creativecommons.org/licenses/by/3.0/): CommonsactionURI(http://creativecommons.org/licenses/by/3.0/): Attribution 3.0actionURI(http://creativecommons.org/licenses/by/3.0/): License“A bu...

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    9. Financial and managerial accounting; financing your organizationThe Wall Street Journal had a story recently on how businesses use scenarios for planning purposes. Quoting from it: “Each spring, executives at JDS Uniphase Corp. plan for three potential sales scenarios for the coming fiscal ...

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    9. Financial and managerial accounting; financing your organizationangel investment firm co-founded by Marc Andreessen, of Netscape Communications fame. Named Andreessen Horowitz, the firm’s investors (in addition to Andreessen’s business partner Ben Horowitz) include “prominent tech indust...

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    This book is licensed under aactionURI(http://creativecommons.org/licenses/by/3.0/): CreativeactionURI(http://creativecommons.org/licenses/by/3.0/): CommonsactionURI(http://creativecommons.org/licenses/by/3.0/): Attribution 3.0actionURI(http://creativecommons.org/licenses/by/3.0/): License“Some...

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    9. Financial and managerial accounting; financing your organization➢ Please discuss the advantages and disadvantages of using computer software packages for your accounting system.➢ What sort of difficulty can you imagine the manager of an organization would be in if the organization did not ...

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    10. Leveraging with information technology• Colleagues can collaborate on projects without having to travel great distances. Videoconferencing has reached the point where individuals can meet “face-to-face” over the Internet and have discussions related to a project they are working on toge...

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    10. Leveraging with information technologyinsight here is that the individuals involved in the information system come to it with a set of skills, attitudes, interests, biases, and personal traits that need to be taken into account when the organization designs the information system. Very often,...

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    10. Leveraging with information technologyAll of the options have their advantages and disadvantages and we discuss them later in this chapter.While it is certainly possible for you to hire a programmer and have him or her develop the software programs your organizations need, it is rare when a s...

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    10. Leveraging with information technology• If the technical capabilities of the staff are strong, use of an open-source DBMS in mission-critical environments is possible now.Recommendations:• Open-source DBMS engines can be used today for non-mission-critical applications with reduced risk o...

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    10. Leveraging with information technologyMake your visitors feel confident about choosing your organization as a provider for the product or services for which they are looking.Give your customer a positive experienceKnowing what your customer wants to see on your website is only half the challe...

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    10. Leveraging with information technology• Computer Store: Computer, Hard Disk, CD, Hard Drive, DVD, etc.If you are in a business that does not sell on the Internet, you may want to hold off on paying for this option as local people will go to your site from advertising, word of mouth or local...

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    10. Leveraging with information technologyThe threat of substitute products can usually be reduced by using IS to bind customers more closely to a business and create what is called “switching costs”. This means that the IS systems offered by a business are so appreciated by the customer that...

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    10. Leveraging with information technologyEach of these approaches is discussed in more detail in the following paragraphs.Have the IS department set prioritiesThe person in charge of the IS functions, particularly in larger organizations is called the Chief Information Officer or CIO. The CIO is...

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  • Page 239

    10. Leveraging with information technologyInformation is a key business resource which, in order to be of value, must be correct, relevant and applicable to the business process and delivered in a timely, consistent and usable manner; it must be complete and accurate and provided through via the ...

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  • Page 241

    10. Leveraging with information technologyattackers. Some businesses whose products or services directly or indirectly impact the economy or the health, welfare or safety of the public have begun to use cyber risk insurance programs as a means of transferring risk and providing for business conti...

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    10. Leveraging with information technology(Standish 2009) http://www1.standishgroup.com/newsroom/chaos_2009.php, accessed July 27, 2009(Stille 2009) http://www.qcisolutions.com/dbinfo1.htm(Zoho 2009actionURI(file:///Users/marisadrexel/Desktop/New 03Spaces/BF_today/Downloads/ http://zoho.com/):)ac...

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  • Page 245

    11. Competitive intelligenceadvertising or it may elect to take another competitive action such as a temporary reduction in the price of Coke. How Coke chooses to react to Pepsi will be based on an analysis of how the firms have acted in past situations. The industry’s competitive dynamics is t...

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  • Page 247

    11. Competitive intelligenceCompetition is the effort of two or more firms, acting independently, to obtain the business of a buyer by offering the most favorable benefits. Competitive intelligence is the purposeful and coordinated monitoring of competitors, wherever and whoever they may be, with...

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  • Page 249

    11. Competitive intelligenceFee based companiesFee based companies, such as Hoovers, LexisNexis, and the credit reporting companies are in the business of collecting and compiling information on businesses and individuals. Their revenue is earned through the sale of the information they collect. ...

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    11. Competitive intelligence1. What do customers in my industry want?2. How do successful firms survive the industry’s competitive pressures?Grocery Store KSFCustomerCompetitionCleanlinessBargaining power over suppliersFreshnessNumber of local competitorsSelection, including take-outLocation re...

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  • Page 253

    11. Competitive intelligenceThreat of substitute productsEntrepreneurs often seem unaware of the competitive threat posed by substitute products. One of the reasons entrepreneurs may be unaware of substitute products is that by definition, substitutes come from another industry. Despite all the p...

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    11. Competitive intelligenceKey Success factor 3Key Success factor 4Key Success factor 5Firm’s ageManager’s reputationMarket shareor rankingOther relevantconsiderationsThe entrepreneur should pay particular attention to the management capabilities of his or her own firm and competing firms. T...

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    12. Business ethics in a nutshellPersonal ethics: four ethical approachesFrom the earliest moments of recorded human consciousness, the ethical discipline has entailed four fundamental approaches, often called ethical decision-making frameworks: Utilitarian Ethics (outcome based), Deontological E...

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    12. Business ethics in a nutshellword eudemonia, usually translated by the English word happiness. But happiness does not do Aristotle or his ethics justice. Yes, eudemonia means happiness, but really it means so much more. The problem is not with Aristotle’s Greek word eudemonia, the problem i...

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    12. Business ethics in a nutshellIn the context of teams, the communitarian approach to ethics has much to commend itself. How much of one’s personal agenda is one willing to sacrifice for the overall goal of winning a sailboat race? Under what conditions is one willing to let the values or cul...

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    12. Business ethics in a nutshellThe three characteristics of professionalism cited by Brandeis address detail the nature of the requisite responsibility, and are the crux of why it is still controversial to call business management a profession:• First. A profession is an occupation for which ...

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  • Page 266

    12. Business ethics in a nutshellcrises of our times illustrate. Not only is the priest sworn to care for particular souls, he is also sworn to see to the care of “the people of God”, the moral welfare of the parish, the salvation of the world. Not only is the doctor sworn to put the interest...

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    12. Business ethics in a nutshellCorporate Social ResponsibilityThe legal and historic roots of the modern corporation reach well back into the eighteenth century, but it was in the Industrial Revolution of the nineteenth century that this truly extraordinary form of human organization came into ...

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    This book is licensed under aactionURI(http://creativecommons.org/licenses/by/3.0/): CreativeactionURI(http://creativecommons.org/licenses/by/3.0/): CommonsactionURI(http://creativecommons.org/licenses/by/3.0/): Attribution 3.0actionURI(http://creativecommons.org/licenses/by/3.0/): LicenseCorpora...

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    13. Adding products and servicesthe chapter. In this chapter, we discuss the following topics: (a) Where do innovations come from? (b) product categories; (c) Innovation through business models; (d) Evaluating innovations; (e) When innovation fails: deleting products; and (f) chapter summary. In ...

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    13. Adding products and serviceschemistry, physics, plant biology, and folk healing methods. In some instances, this kind of innovation might result from marketing research, where considerable demand is forecast in the marketplace.Table 10: different sources of innovationSource of InnovationDefin...

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    13. Adding products and servicesBusiness-to-businessGoods bought by individuals or organizations for further processing or for use in doing business.plastics for a car manufacturer, insurance plan for plantsConsumerThe goods individual consumers purchase for personal or family use.Canned soup, me...

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    13. Adding products and servicesfree, why should musicians (Ulrich and McGuinn 2000)?” On the other extreme are people who argue that copyrights are irrational since they deny consumers the right to use creative works and suffocate the creativity of Internet users (Lessig 2004).At first glance,...

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    13. Adding products and servicesHere, we briefly discuss three main alternatives for evaluating new additions to the product line: laboratory tests, expert evaluations, and customer evaluations (Urban and Hauser 1993). With respect to customer evaluations, we distinguish between central-location ...

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    13. Adding products and servicesfrequency identification (RFID) to optimize its logistic processes. RFID is an automatic identification method, relying on storing and remotely retrieving data using devices called RFID tags or transponders. Wal-Mart tries to minimize labor costs by offering minima...

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    13. Adding products and servicesTherefore, the “ten foot rule” was perceived as rather annoying and did not result in a reputation for providing good customer service.Wal-Mart also imported the idea of placing a “greeter” at the entrance to the store. Again, German customers were not used...

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    13. Adding products and servicesdistributing beer in the eastern United States, and you have some interest in your partner’s idea. Describe how you would evaluate this idea of adding of Gulpemer to your product line.➢ A reporter from the New York Times asks you to forecast which method of dis...

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    13. Adding products and servicesSlater, D., Smith, M., Bambauer, D., Gasser, U., and Palfrey, J. (2005, July 7). Content and Control: Assessing the Impact of Policy Choices on Potential Online Business Models in the Music and Film Industries. Retrieved September 1, 2008, from The Berkman Center f...

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    14. International business for the entrepreneur14. International business for the entrepreneurAuthors: Vlad Malamud, Yevgeniy RotenbergEditor: Douglas AllenReviewers: Dean Murray Young (Thompson Rivers University, Canada) Timothy B Folta (Purdue University)Contributing authors: Wesley Scott Cable...

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    14. International business for the entrepreneurincreasing integration of economies around the world, particularly through trade and financial flows and the movement of people and knowledge across international borders (IMF Issue Brief, 2000).Case: United States Domestic Automaker, FordNowhere are...

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    14. International business for the entrepreneurAs a result, for less industrialized countries this means it is more difficult to advance their businesses without the technical system and knowledge in place such as the Internet, data tracking, and technical resources already existing in many indus...

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    14. International business for the entrepreneurGlobalization and the small business entrepreneur As the case in the beginning of this chapter demonstrates there are economic, social, and political factors an entrepreneur faces when establishing their business. This chapter will utilize this case,...

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    14. International business for the entrepreneursuch as social control. Values determine good from bad, and are closely related to the ideals shared by a group. A value in one culture may differ vastly from that of another, and therefore these differences must be studied and taken into considerati...

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    14. International business for the entrepreneurEthical considerations Managers of businesses that conduct operations in an increasingly global environment face a dilemma when selecting and applying ethics to decisions in cross-cultural settings. Although ethical values may be similar across cultu...

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    14. International business for the entrepreneurtime employment and sets out guidelines for their implementation. By incorporating new legal provisions with existing laws from the current PRC labor law, the committee hopes to meet three main objectives: (1) to clarify the employment contract syste...

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    14. International business for the entrepreneurGenerally, all laws in the host country will apply to an entrepreneur’s local business operations. Examples include filing procedures, employment law, environmental law, tax law, and ownership requirements. The World Bank has a rather extensive cou...

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    14. International business for the entrepreneurPackaging Repairs and Support Warranty Accessories and services Price flexibility Price discrimination Place Decisions Distribution Channels Market coverage (inclusive, selective, or exclusive distribution) Inventory Management Warehousing Order proc...

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    14. International business for the entrepreneurInternational currency marketExchange ratesThe price of one country’s currency in units of another country’s currency is known as a foreign currency exchange rate. Exchange rates can be quoted in two ways. One way, known as a direct quote, is to ...

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    14. International business for the entrepreneurExhibit 56: The way the IASB functions actionURI(http://www.iasb.org/):(www.iasb.org)Even though the IASB standards are not enforced internationally at this time, the standards are quickly being processed. Therefore, a company looking to go internati...

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    14. International business for the entrepreneurExhibit 57: A global structureProduct structureA global product structure is often chosen in companies with an array of diverse product lines. Each product line is assigned to its own organization unit so that decision-making is focused on the produc...

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    14. International business for the entrepreneurreports to two individuals: the head of finance and the head of the orange juice group. At the same time, a geographic dimension may require that the function and product heads interact as coequals with any number of country managers or regional head...

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    14. International business for the entrepreneurAdvantages: The geocentric model offers the most employment flexibility and choice to the company. The company can search the entire global workforce to find the most qualified candidate for a certain position. Opportunities for cross-cultural develo...

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    14. International business for the entrepreneurExhibit 61: Corporate Social Responsibility (CSR) is a concept whereby companies integrate ethical, social, environmental, and other global issues into their business operations and in their interaction with their stakeholders (employees, customers, ...

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    14. International business for the entrepreneurconsider and balance short-term goals against long-term societal goals of continued employment, community citizenship and public welfare needs (Czinkota, 2005). The successful multinational enterprises of the coming century will be those that find th...

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    14. International business for the entrepreneurAs evidenced in the case of Tetra Pack Colombia, a company with CSR and sustainable development aligned into its strategy can be effective in working with its community to solve a social problem. In this case, Tetra Pack Colombia was able to utilize ...

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    14. International business for the entrepreneurDe Mooij, Marieke. “Global Marketing and Advertising. Understanding Cultural Paradoxes”. Sage Publication: Second Edition, 2005.Dollar, David. “The Poor Like Globalization.” YaleGlobal, June 23, 2003, available at actionURI(http://yaleglobal....

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    14. International business for the entrepreneurThe Doing Business project provides objective measures of business regulations and their enforcement across 181 economies and selected cities at the subnational and regional level.324

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    15. Growth strategies for start-ups(cf. Sexton/Bowman-Upton 1991, p. 10). Research studies in Germany have also shown that businesses with 50 to 250 employees recorded the greatest increase in employment (cf. Kühlhorn/Wissdorf 2001). International comparative data can be found in the Global Entr...

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    15. Growth strategies for start-upsExhibit 64: The “complexity management” growth modelIndustrial change is often triggered by technological changes, for which there are many examples: the substitution of digital technologies in a whole range of analog products, from office equipment to telep...

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    15. Growth strategies for start-upsStopping growth by selling the firmAn acquisition can be regarded as a growth strategy, but the sale of a company leads to a halt in growth. Such a sale does not necessarily have to be described as a loss, however. On the contrary, a trade sale—when a start-up...

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    15. Growth strategies for start-upsenough attention to marketing. Marketing plans and their extrapolation are a prerequisite for avoiding growth mistakes. If a firm does not conduct market research, identify customer preferences, generate new customer wishes, or segment or capture the market, it ...

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    15. Growth strategies for start-upstherefore ask themselves repeatedly whether these dependencies secure their existence and survival, or whether they are endangering their growth. As long as the firm’s survival is secured by suppliers or customers through strategic dependencies, for instance w...

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    15. Growth strategies for start-upsAbout the chapter editorProfessor Hans Jürgen Drumm is a retired Professor of Business Administration with a focus on Human Resource Management and Organization Theory. He received his doctorate at the Free University of Berlin and his Habilitation at the Unive...