A Research and a recommendation on Career Advice to Potential Clients

            For students looking forward to make considerations on career options choosing a career path is one of the most important steps in life. Students can rely on their college counselors for guidance on academic experiences and career in order to avoid regrets in future. This letter is going to address and provide findings on career outlook in business and finance as one of the occupations listed in the occupation outlook handbook and we are going to specifically look at accounting and auditing profession.

            Job opportunities in business and financial operations are being projected with a growth rate of about 11% from 2014 to 2024. It is rated with the fastest rate compared to other occupations that is; adding around 632,400 new jobs (Bureau of labor statistics, n.p). A stronger environment is driving a need for more accountants and auditors to help in preparation and examining financial documents. The projected annual wage in business and financial occupations was $66,500 in the month of May 2016 and it was the highest annual wage compared to other occupations (Rupert & Kern, 4). The work of the accountants and the auditors is preparation and examination of financial records. They make sure that financial records are accurate, up-to-date and proper payment of taxes by following particular regulatory standards. They also assess the financial operations in an organization and to ensure that the organization runs and operates efficiently. Accountants prepare the following books; income statement, balance sheet and further than this, accountants perform other duties such as bookkeeping, taking track of revenues and expenses, they forecast future profits and cash flows (Occupational Outlook Handbook, 3). An accountant can be permanently employed by the company or even work for a third party hired to perform accounting duties for a company.

            On the other side, auditors come after accountants to verify the work done by the accountants. They inspect the financial statements to ensure that they represent the exact financial position of the company. Auditors make sure that the financial statements as released annually are presented in line the “Generally Accepted Accounting Principles”. This occupation requires at least a bachelor’s degree in order to be in an auspicious position that can make on successful in the labor market (Rupert & Kern, 3). The salary for new accountants and auditors is wide depending on level of education, size of the employer, or the geographic area. In 2015 the salary benchmarks were set by the big four firms and the range was between $ 40,000 and $ 68,000 Occupational (Outlook Handbook, 2009, 3). Thus, for firms that are planning to recruit more accountants and auditors, you must know it that their salary is also being projected to have a higher rise compared to other professions nevertheless, it is negotiable.

            To advise the students, accounting is not just a mere job but a profession that has even emerged the fastest growing. This growth is expected to continue because as the economy continues to grow more workers will be needed more so in this specific profession. Careers in accounting are open to both women and men of every background. This profession offers good income potential and stability that students may admire to have. One of the most necessary skills is that accountants and auditors have to be good with numbers (Rupert & Kern, 4). Implying it does not only rely on the working knowledge of multidimensional calculus but professionals in this field also need to be quick with quantitative analysis. Those who can get confused easily and make constant while working with numbers can find the career frustrating. Accounting profession even nonetheless has a number of job roles that one can specialize in most especially done in big firms, however, in small firms an accountant may perform all accounting tasks. we have bookkeeping accountants and auditors who are specialized in producing records for the company. Budget analysts help organizations manage their finances by preparing budgets reports and monitor how funds are being spent in every allocation. Cost estimators analyze data on how a product will be manufactured, how construction will take place by estimating time, materials, labor and money required. We also have financial analysts, management analysts, financial managers, and many others (Scarpati & Johnson, 14). Therefore, students may specialize in those jobs. Also, a few universities offer specialized programs for accounting and auditing. Students may also seek for more guidance from their specific counselors who may help to prepare them for careers in the profession. Therefore, for any student in this career, it is important that you meet the standards required by the college more so you must have achieved above the minimum grade.

Work cited

Readings:  Lesikar’s Chapter 11, pages 349 – 362  Sample letter Report, pages 360 – 361    Lesikar’s Appendix B, pages 608 – 611 

Bureau of labor statistics. (n.p)http://www.bls.gov/ooh/2

Scarpati, S. & Johnson, P. educationTeaching andAdvising a New

Generation ofAccounting Students.(2012)

Rupert, Timothy J, and Beth B. Kern. Advances in Accounting Education: Teaching and Curriculum Innovations. , 2017. Print.

Occupational Outlook Handbook, 2009. New York: Skyhorse Publishing, 2008. Print.

Leadership and Management

Every organization is needed to make a choice on its own in regard to the records that should be maintained in consideration to the regulatory, legal surrounding, business nature and the continuous need by the corporation for information as well as evidence in regard to how certain operations were carried out. This decision, therefore, necessitates an adequate understanding of the objective of the organization and the respective functions in regard to how all the respective functions are accomplished and how the held record are utilized (Rasmussen, Mylonas, & Beck, 2012).This implies to focusing on analyses as well as investigation of the company’s function in general, the responsibilities of different units of the company and the different programs and incentives that complement each of them. In addition, the organization additionally evaluates how the information is usually utilized by the different units, the record that is generated from all the units and how the acquired record is shared and utilized in all the parts of the corporation. The decision to keep communication record does not have a suitable strategy rather this usually depends on the company’s size and the nature of information. Knowledge regarding the manner and who is utilizing certain communication records is crucial in the development of communication record systems (Rasmussen, Mylonas, & Beck, 2012).

Meeting agenda is the communication strategy that was created in the second task.  In line with the company’s procedures and policies, the communication record for meeting agenda would be recorded to ensure that a safe and a healthy surrounding is achieved. In that, any form of communication taken within the organization should ensure that all the undertaken activities meet the procedures, policies as well as standards of the company. The communication strategy would be recorded in a many that it discourages discrimination by ensuring that everyone clearly understands the approved strategies and the discussed issues (Fulton-Calkins, Rankin & Shumack, 2011). In addition, privacy and respect would additionally be maintained by accounting for all the ideas raised.

Task 4

The two strategies that I would utilize as follow up approaches with the relevant individuals in the workplace communication are monitoring and training. This, therefore, implies observing and analyzing whether the communication is effective and the areas that require some form of improvement and how the development can be achieved. Coaching is a form of continuous development practice that seeks to ensure that efficiency is developed even in the presence of barriers. Effective communication is a necessity within the workplace as it works to ensure that everyone understands what is anticipated from them and the appropriate measures to be employed for success to be acquired (Fulton-Calkins, Rankin & Shumack, 2011). Therefore monitoring is essential in establishing how essential information flows within the organization and whether any kind of distortion occurs and how the audiences respond to it.

Workplace communication processes can best be improved through facilitating consistent improvement where the leaders ensure that the procedures and processes in their responsibility sections are applied properly and understood comprehensively by everyone. Continuous development of the procedures should thus be encouraged via strategies like coaching, monitoring, performance feedback and open communication (Koester, 2010). Consistent development practices are purposed for creating change for more efficiency and this should hold increased ability to support and encourage employees to operate beneficially, to their best capabilities, contribute to decisions and be responsible for individual actions. Communication can be termed as a continuous operation that normally requires a number of adjustments for success to be sustained. Monitoring will, therefore, be accomplished through focusing on the feedback of communication performance via suggestion or responses boxes. This is a form of informal communication which is crucial in encouraging employees to make active participation in continuous development by offering their thoughts (Koester, 2010). The boxes are supposed to be located centrally within all the departments in the organization. In addition as a leader privacy as well as the confidentiality of the respondents should be maintained. A leader is thus expected to encourage any form of thoughts without making any kind of prejudice in regard so that communication can be improved consistently.  In this manner, every individual is bound to get the freedom of releasing all that they feel thus the issues should be debated on regular basis and appropriate actions implemented (Rasmussen, Mylonas, & Beck, 2012).

Task 5: Team Evaluation

1. Team goals and objectives

The evaluation applies to the continuous improvement team. Every member of the team understands clearly the objectives and the goal of the team which is to promote continuous communication development within the organization for efficiency to be achieved. The understanding is achieved through ensuring that thoughts and plans are communicated among all the members in simplified and undistorted manner. The primary responsibility of the leader in the team is to offer support as well as encourage all the team members to operate effectively by being responsible, offering thoughts and participating in decision development so that the practices of the team can be enhanced. The procedures of the team permit every member to work independently and to also ensure that development is promoted always through the use of both formal and casual procedures. Some opportunities that can be identified for improvement ranges from communication channels and encouraging participation.

2. Supporting your team

Support in offered to the team in ensuring that the anticipated outcomes are achieved which includes encouraging effectiveness both by the team and individually via initiatives, participation, and responsibility. This is achieved through the utilization of communication meetings, reports, and forums to increase the potential of everyone to make a contribution in regard to thoughts. This strategy helps in creating a form of focus on the team by establishing the specific sections where the team is performing well and those that needs to be developed consistently. The team members can be supported more through offering more flexible systems that will permit them to exercise their autonomy as well as work in achieving the objective of the team in general.

3. Team member input

Team members are given the opportunities of generally participating in decision making, offering their thoughts as well as creating different initiatives that are required in effective operation. The opportunities that can be established for development includes creating more extensive forums for communication and offering a variety of systems to increase flexibility and efficiency.

4. Accountability

            The members are generally encouraged to acquire their self-actions responsibility by ensuring that they would on developing their own ideas and ensure that they are developed consistently for efficiency to be acquired. The opportunities that can be identified involves taking team’s responsibility in general rather than individually.

5. Peer support

Team members offer support to each other by playing part in explaining different roles and the responsibilities of each member in reference to responsibility. This helps in the creation of efficiency in that roles are understood better. Opportunities that can be established in building support among peers would be essential in building better relation in creating improved productivity.

6. Training and development

The learning, as well as development actions that are provided to teams and persons, involves creating and sharing thoughts with others through communication by providing feedback on how critical responses can be created. Since critical skills are essential in ensuring proactivity as well as increased abilities to solve issues. The records that are maintained includes the kind of activities that have been improved and the action plans that have been created. Development as well as learning in informing the practice in the future through informing members of the necessity for acquiring efficiency in the future.

7. Evaluating team performance

Achievements and efforts of the members are evaluated and rewarded using monitoring and appraisal strategies and poor performance is normally addressed with the use of individual forums where weaknesses are discussed and strategic plans developed. This helps in establishing chances for improved communication among the members.

8. Resolving issues

Issues, as well as concerns, are normally resolved by creating better plans and communicating the issues immediately for immediate action. The part that needs to be developed in regard to issues development involves creating forums and channels that specifically handles any arising matter.

9. Improvement Opportunities and Summary

Some of the improvement opportunities that can be identified include communication channels and forums for resolving team concerns. It is apparent that communication is crucial in achieving efficiency within a team. While undertaking the evaluation team members were consulted which was done directly. The information will be communicated to the members via reports and meeting forums so that the results can be analyzed and recorded as required. This will be useful in ensuring that distortion does not occur.

            References

Fulton-Calkins, P., Rankin, D. S., & Shumack, K. A. (2011). The administrative professional. Mason, OH: South-Western Cengage Learning.

Koester, A. (2010). Workplace discourse. London: Continuum.

Rasmussen, R., Mylonas, A., & Beck, H. (2012). Investigating Business Communication and Technologies. Cambridge, England: Cambridge University Press.

Problem Solving

Introduction

The main problem in the first scenario is the lack of time to be able to execute different tasks. In addition, the requirements are also very high, making it hard for one to be able to think of whether to stay in the current position, or opting for the new position. On the other hand, the issue of salary and allowances are also another significant factor, which makes it hard for one to decide what is actually better between the two positions. The first company offers tuition reimbursement, while the second company does not. Whereas, the second company offers a car allowance, an annual salary increment of $15000. The main problem is consequently choosing what is right, since one might seem better, but it may not be long lasting. Furthermore, another position might seem worse but it may be long lasting.

1. The main issue at hand is the issue of promotion and acquiring more educational knowledge. First and foremost, my main goal is to advance my studies, in order to get a promotion. However, a promotion has presented itself even before completing my Bachelor’s degree. In addition, the holder of the new position is supposed to have a Master’s degree, of which I do not yet have (Isaksen, Stead-Dorval & Treffinger, 2011). I am consequently supposed to complete my Bachelor’s degree before I can actually pursue a Master’s degree. If I take the new position, then this means that I will have to spend my own salary in my studies. Whereas if I hold on to the current position, then I will be able to save the money I would have spent on my education, since the company offers tuition reimbursement. Even though the new position seems better, I do not understand which position is better compared to the other one (Foley, 2013). Even though I will be receiving huge allowances, I do not know if the new position is better than the current position.
2. This problem can be solved through seeking advice from those who have been in such a situation (Elias, 2014). On the other hand, one can also asses the current goals with the current position, to better understand if taking the position will really help in reaching success or not. One of the main issues might also be time, one should consequently evaluate the time taken to work in the new company, and how it might affect social life’s schedule (Isaksen, Stead-Dorval & Treffinger, 2011). Moreover, the cost of paying for the tuition fees should also be compared to the allowances offered in the new position. This is important, so as one may not end up taking the new position, which may not have any difference with the old position. Furthermore, I will have to understand the operations of the new company, hence understanding the relationship between the management of the company and its employees.
3. Seeking advice from a person who has been in such a situation will be very significant, as it will enable me to gain an understanding of the unfolding of events. In addition, I will also gain an experience which will help me to be able to understand how making either of the two decisions may affect my life in general (Foley, 2013). I am focused, and I do not want to end up spending all my salary on my studies, simply because I want a promotion. On the other hand, II will be capable of understanding how I can be able to deal with the consequences of the decision that I will make before I actually decide on each of the two decisions. Assessing my goals, will also help me to understand if the new position will be good for me, since I will be able to understand if the new position will give me enough time to be able to undertake different tasks. For instance, after the completion of my Bachelor’s, I would like to concentrate on building my life, before I can actually pursue my Master’s degree (Elias, 2014). If the new job will not allow me to be able to continue with my life as planned, then I will have to think twice before actually picking on that job.
4. Comparing the cost of tuition fees with the salary, with the allowances will consequently help, in allowing me to be able to understand if the new job will favor my endeavors (Isaksen, Stead-Dorval & Treffinger, 2011). The new position does not offer tuition reimbursement, and this consequently means that I would have to pay the tuition fees using my salary. If the allowances cannot add up to the tuition reimbursement in my current company, then taking the new job will only make me to increase my expenditure. The allowances should be able to add up with the tuition fees, so that I can be able to pay my tuition fees at ease without the fear of running out finances. Finally, understanding the way the new company operates is also very significant, as it will allow me to understand the company’s relationship to its employees. If this relationship is good, then this means that it will be easier for me to work in such a company. On the other hand, if the management of the company does not relate well with the employees, then the company may not good for me (Foley, 2013).
5. The best solution will be to understand the relationship between the management of the company and the employees, and the company’s working culture (Elias, 2014). In addition, understanding if the allowances will be more than the amount of money used to pay tuition fees, will also be a good solution. These solutions will not only allow me to be able to understand if I will take up the new position, but they will enable me to understand the working condition of the new company, and if the allowances will be able to cater for my needs as compared to tuition reimbursement. Furthermore, I do not want to do things hastily, without thinking about the future (Foley, 2013). The relationship between the management of the company and its employees is very significant, as it will enable me to understand if the company is worth working in, so that I might not end up taking the new position, only quit the job later due to management hostility. I strongly believe that these two solutions will enable me to clearly understand wherever I am headed, and if I decide to take up the new position, what the consequences would actually be. Furthermore, these solutions will also give me the reasons for either taking up the new position or not, since they will point out the pros and cons of the new position. I would finally take up the new position.
6. First and foremost, I will have a talk with my former supervisor, whereby I will inquire about the company (Elias, 2014). During the talk, I will ask questions concerning the management of the company, the working culture of the employees and the link between the company’s management and its employees. Secondly, I will also enquire about allowances and the salary increment. After understanding the operations of the company, I will change my plans and see if they can fit according to the operations of the company (Isaksen, Stead-Dorval & Treffinger, 2011). I will compare my current operations with the operations which I would be supposed to undertake. If the operations will be able to work in a similar way, then I will set a new plan whereby I will have to do things according to the operations of the new company.

Conclusion

In order to be able to solve such a problem, one consequently needs to understand the situation of the new company. Failure to understand the operations of the new company, then one may not be able to understand how to easily be able to plan on taking up the new position. In addition, one needs to understand how the monthly budget will be affected, in order to make the right adjustments, hence taking up the new position. My main goal was to get a promotion, and since a promotion has presented itself, and I have analyzed the new position, and I have understood how I am supposed to adapt to the new position, I do not have any other option but to take up the new position.

Reference

Isaksen, S. G., Stead-Dorval, K. B., & Treffinger, D. J. (2011). Creative approaches to problem solving: A framework for innovation and change. Los Angeles: SAGE.

Foley, G. (2013). Membrane filtration: A problem solving approach with MATLAB.

Elias, R. (2014). Digital media: A problem-solving approach for computer graphics.

The Problem Solving Process. Retrieved from: http://www.gdrc.org/decision/problem-solve.html

Human Resources Training Memo

To: CEO

From:

Date: 

Subject: Human Resource Managers Training Evaluation

            Human Resource Management is one of the prime departments in the organization thus it responsible in managing staffs it is additionally responsible for recruiting, retaining and offering training to employees for efficiency to be achieved (Manasa, & Reddy, 2009). Extensive legal knowledge in the HR department is a necessity which requires continuous learning (Choi, & Dickson, 2010). The company has acknowledged this need and engaged the HR managers in law training. Based on the post-tests and pre-tests conducted by the organization creates certainty on the understanding of the law that has been acquired by managers. Since the tests were distributed in three different organization’s regions and the regions are different. Based on the on the results of the tests the corporation’s training compliance can be categorized as compliance.

            Based on the pre-tests and all the post-tests that were performed on the three different regions the first region held the highest rating mean prior to the training which was 13.33 while that of the second region was the least at 5.33. However, after the tests, it has been indicated that the first region held the highest mean in regard to performance which stood at 22.33 while the third region obtained the lowest mean being 10.89. The mean scores prior and post the law knowledge training offers a significant ground in measuring training impact on the manager’s knowledge. This results, therefore, makes it apparent that the training was highly effective for employees within the second region while low effectiveness was achieved in the third and the first region. However, the general program can be categorized as effective in all the three different regions since a significant form of improvement was achieved in general. Generally, the understanding of law among the company’s managers has been increased by the training by approximately 50 percent in every region which demonstrates its ability on accomplishing the intended objective.

            Since the training seems to be performing quite well in one region it should not be withdrawn but additional and mandatory training should be administered for the persons that have only attained a score below the mean. For those that demonstrates some form of improvement in regard to understanding law should undergo an assessment of skills so that they may determine the opportunities areas that require some form of attention. The program has proved to be effective in instilling knowledge in all the employees involved and thus it should be encouraged to continue on a consistent, diverse and mandatory basis for efficiency to be attained.

            Recommendation

            Human resource training is beneficial to an organization as it works to ensure that better skills are acquired while retaining employees with high potential, skills as well as experience that is required in attaining success in the organization. It is therefore important for the corporation to focus on the training needs of the existing employees to grow their skills as well as knowledge which is required in the general wellness of the company. Training should be administered on a mandatory basis to ensure that the knowledge and skills are distributed evenly (Choi, & Dickson, 2010). In addition assessment tests should be applied on regular basis to permit the corporation to establish any form of gain or the need to implement a different kind of action as a way to prepare for the corporation’s future. Through this, the company can thus be able to effectively identify the existing skills thus molding them to fresh and well-equipped personnel. This will ensure that the cost and the time utilized in familiarizing staffs to such basic concepts is saved for better use.

            References

CHOI, Y., & DICKSON, D. R. (2010). A Case Study into the Benefits of Management Training Programs: Impacts on Hotel Employee Turnover and Satisfaction Level. Journal of Human Resources in Hospitality & Tourism, 9(1), 103-116. Doi: 10.1080/15332840903336499

Manasa, K. L., & Reddy, N. (2009). Role of Training in Improving Performance. IUP Journal of Soft Skills, 3(3/4), 72-80.

Agency and Employment Law

After a business is set up, the owner or shareholder must ensure that its operations are efficient and that it is shielded from potential liability. The risk of potential liability is common for both small and large businesses, but such a scenario may be tricky for the smaller businesses with limited resources. The relationship established by the law of agency represents such risks, where a business can be held liable for the wrongful conduct of an employee as an agent. Under the agency principle, an employee can carry out operations or activities on behalf of the business and this happens on a daily basis (Cheeseman, 2016). The agent enters into contracts with customers or suppliers on behalf of the firm, and this means that principle brings about liabilities in case of a wrongful conduct of the employee. This applies where such conduct is carried out within the scope of existing relationship between the agent and the business as the principle. This represents a threat to the organizations that may be forced to bear financial costs due to litigations emerging from the wrongful conduct of agents that may have affected other parties. As long as the agency relationship is created after the business gives assent for the employee to operate on its behalf, the business is bound to bear any cost arising from liabilities incurred in the process (Cheeseman, 2016). The agency relationship can present opportunities to the firm where strong internal procedures and internal policies have been set up. Such measures limit liability by ensuring that employees’ activities are put under check.

The effect of agency-relation may involve how the employees can avert personal responsibilities, where they have to show that took and considered all the appropriate steps to prevent or reduce potential liability to the shareholders.  The problem is that they should prove that the actions taken were expected from a person with sufficient knowledge and skills level and professional experience (McCallum, 2008). Other challenges may emerge from the notion that an employee as the agent is the one with power to influence legal relations between third parties and the principal – business.  This involves legal relations in the reference to liabilities in tort, contractual and proprietary duties and rights. The employee will be cautious so as to absolve him or herself from any liabilities or costs arising from their activities on behalf of the business. 

 The express or implied agency or apparent authority estops an employer from denying liability for the agency relationship that is created with employees. The relationship can only be stopped by Acts of the parties including lapse of time, mutual agreement, occurrence of a certain event or if the intended purpose is achieved.  The other reason for termination includes the operation of the law in case of death, insanity, performance impossibility or bankruptcy (McCallum, 2008). Outside such reasons, the termination of the relationship can be deemed to be discrimination and the employer will be liable. In addition, the apparent authority allows any employee to act in case of an emergency and no time for consultation and therefore providing opportunities everyone at all times. In all the cases the principle has consented, impliedly or expressly that the agent act on their behalf, and that the agent is subject to the control of the principle (Cheeseman, 2016). Therefore, all the employees have the power that is manifested by the principles consent to them to carry out their activities without fear of prejudice or being targeted for the liabilities or costs that may arise. In addition, the employees are granted the apparent authority to influence the legal relationship by those acts they carry out after the consent manifested by the principle. All the employers are granted implied or express authority to do those acts that are ordinarily or naturally done and which are necessary without fear of being of carrying resulting liabilities due to gender, race or disability. As long as the agent or employee is of sound mind and acts naturally or ordinarily, the relationship shields them from discrimination.

There are federal laws and state laws that prohibit discrimination practices at workplaces, based on various aspects such as gender, race, age, national origin, marital status, disability or religion. The state laws are similar in nature to the Federal laws with some additional protections against discrimination (EEOC, n.d).  The federal laws include Title VII - Civil Rights Act of 1964 which make illegal to discriminate against a person due to their color, race, sex, belief or national origin (EEOC, n.d). It prohibit retaliation against someone because of they complained, filed a charge or took part in investigations due to discrimination. The Pregnancy Discrimination Act is prohibits discrimination of women due to pregnancy or issue related to birth.  Others include the the Age Discrimination in Employment Act of 1967, Equal Pay Act established in 1963, and the Americans with Disabilities Act of 1990 (Title I) (EEOC, n.d).  These prohibit discriminating a person due to their age and disabilities while providing equal payment for men and women performing same work at the same place. The Rehabilitation Act of 1973 prohibits discrimination in federal government against a person who is qualified and disabled. The Genetic Information Nondiscrimination Act of 2008 makes it illegal to discriminate a worker or even an applicant due to their genetic information, including information about personal or family member’s genetic tests or information about conditions, disorders or diseases of family members (EEOC, n.d). Across the various states, the laws been adjusted to add various aspects on which discrimination is illegal. 

 Employees are offered protection against discrimination or harassment at the workplace, but such protection is not provided for the independent candidates. The employees are shielded from unlawful discrimination due to various factors like gender, race or age, wrongful termination, compensation for workplace injury, low wage rates and even workplace safety. The employee is allowed to join or form trade unions that can protect their rights (McCallum, 2008). Independent contractors cannot form unions and therefore their protection is founded on some laws. The law gives the contract the responsibility to pay estimate taxes which protects their financial interest, since they pay tax liabilities and file returns. The law provides the contract a right to be paid and own the work. The terms of contract determine the payment (McCallum, 2008).

Reference

Cheeseman, H. R. (2016). Legal environment of business: Online commerce, business ethics, and global issues.

Different Leadership Styles in Culturally Diverse Workplaces

Introduction

Leaders must always uphold dignity and quality control over an organization to make it a success and beneficial. Leaders have to ensure that the work required can be able to deliver the organization's visions more effectively and timely. This can be achieved by the managers or by the workers as dictated by the managers. The delivery of the organization's vision is of importance and the main focus for a successful working environment (Neumann & Neumann, 2013). Overall goals of a company should be the basis to formulate the performance goals which will basically be linked to having successful organizational vision. Respectable leaders have the obligation of managing the change effectively.

Question 1

Leaders have been identified to perform their duties in every way possible in order to improve the output of an organization. Some of these leadership skills have an adverse effect on the employees and generally on the organizational output. Some employees are regarded as special and treated in a different way that the others by the leaders in an organization (Guillaume, Dawson, Otaye‐Ebede, Woods & West, 2015). This kind of leadership will influence some employees to even boycott doing their duties and eventually, the organizational output will be reduced.

Authoritative leadership style is also very common in some organizations where the leaders are so authoritative and show no concern for the employees (Guillaume et al., 2015). When this kind of leadership strategy is applied on some employees, this will create employee fear against those particular individuals who will be viewed as an opponent among the other employees. Work effectively will not be achieved as the employees will start developing hatred and lack of interest in this organization which seems to recognize others in regards to others.

Employee morale will be driven off once there are signs of leaders taking advantage of others. Use of the commanding style of leadership will always establish a rather clear distinction between the employees and the subordinates (Chuang, 2013). The commanding type of leadership allows the leaders to make the crucial decisions on their own without the help of the followers. This basically leads to low employee morale which will affect the employees in their workplace and a reduction in output in the organization. There are a lot of employee absenteeism and also a decrease in employee retention as they will be unsure of what next they can expect from the company. Leaders use this kind of a management strategy during the time of disasters and this generally affects the long-term goals of an organization (Neumann & Neumann, 2013). When leaders change their strategies and use a coaching style of leadership, the long-term goals of an organization will be realized and this will create the employee morale and satisfaction and eventually employee retention.

Leaders in an organization can also apply the use of being participative in an organization. Leaders who are participative in their organizations show concern for the general employees and this influences the effectiveness of an organization (Rosemann & vom Brocke, 2015). To certain followers, the leader can be much of a helper than a leader since they can be free with them. This act influences a big portion of leadership where the employees will be dedicated and focused in their daily routines and this will increase the productivity. Participative type of leaders show a significant improvement in the teams they lead since they learn team building which is a good strategy for an organization. Democratic type of leadership is the best as this will allow the employees to speak up their minds and be productive in their various fields (Chuang, 2013). Democratic type of leaders always encourages the employees and their followers with allowing for feedback and any other suggestions which might bring success to an organization. This ensures that all the employees can be on board if one is willing. Some leaders are fond of giving directions to their preferred members which are seen as discrimination by the others. A good leader will always couch his or her followers to the right direction. Leaders who show concern over others help them identify with almost every other member. In this kind of a leader-follower relationship, the organization can be a success and in an improved state since there is harmony.

   Question 2

In every organization, good leadership is paramount and very essential since it allows for success and more productivity. Successful leaders are always optimistic of how well they can improve the productiveness of the employees by improving on their goals and vision (Rosemann & vom Brocke, 2015). Every person has the capability to lead but it all depends on personal dedication to positive change.

Good leaders always apply transparency in order to lead effectively. This can be achieved through the use of communication, debates, share decisions making and consensus. Leaders who are transparent in their duties allows for the development of the required morale in their followers (Du, Swaen, Lindgreen, & Sen, 2013). This in return allows for the increase in output as the followers will be motivated to be more productive. Sharing information with the diverse cultures among co-workers can help improve the level of transparency within an organization since this will create trust and respect. Leaders who are dictators do not allow for transparency in an organization since they do not share their views for development during decision making (Girma, 2016). This can be improved by allowing discussion during decision making which will involve the different cultures among coworkers. Allowing opinions and new ideas from various followers in the organization during decision-making process will enhance effective co-existence among coworkers and other leaders.

Good leaders must have integrity in order to lead in an effective manner. This allows for a leader to be fair in his or her actions as this will boost follower’s morale and also prevent being termed as a dishonest leader who favors a particular culture. A leader who does not apply integrity faces disrespect from fellow peers and followers. Effective leaders within an organization who upholds integrity will always assist the employees to aim higher thereby improving the status of the workplace due to diversification in cultures (Chuang, 2013). Lack of integrity hinders an organization from being successful as followers will not be motivated to work to their level best.

Favoring a certain cultural group within an organization can reduce the effectively of working since the segmented part of the group will develop resistance towards the organization and the general management. Having an internal competition in an organization is a disadvantage since this creates unwanted tension among the particular group which feels it is being left out (Rosemann & vom Brocke, 2015). Leaders who encourage competition should base it in terms of organizational goals and not in regards to the cultural backgrounds. Focusing on improving the current state of an organization through developing followers’ togetherness can assist in the growth of the organization and follower satisfaction.

Great leaders ensure effective and continuous communication among followers. Effective communication can be achieved through casual talks, rewarding employee’s performance and motivational talks. Effective communication can be achieved through utilizing existing communication tools as well as frequently developing innovative communication channels. Effective communication will help reduce absenteeism cases among co-workers who feel neglected in terms of workplace communication (Guillaume et al., 2015). Good communication within an organization creates awareness among workers, therefore, improving the level of output. Good leaders use communication to enhance the level of understanding among the employees which basically improves the diversification in relation to the different cultural groups. Treating other members with respect and being honest will assist in the creation of new ideas and in this way the organization will be successful. Quality leadership which is not biased with regards to the cultural backgrounds can help improve the organization's goals (Girma, 2016).

Conclusion

Good leadership in an organization increases the morale of the members or the followers and this helps in the realization of the organizational dreams more effectively and timely. In many cases, organizations which are mostly governed by democracy have a lot to celebrate as the cases of layoffs, employee absenteeism, and workplace rivals are less. Certain cultural groups in an organization which is basically a threat to others can have the advantage of control but due to the organization being free and democratic, such cases cannot be experienced. In order to realize the organizational goals, member retention can be regarded since the more the number of the workforce the more the productivity. Basing any particular organizational goals on some members and living out some can influence the lack of productivity.

References

Chuang, S. F. (2013). Essential skills for leadership effectiveness in diverse workplace development. Online Journal for Workforce Education and Development, 6(1), 5.

Du, S., Swaen, V., Lindgreen, A., & Sen, S. (2013). The roles of leadership styles in corporate social responsibility. Journal of business ethics, 114(1), 155-169.

Girma, S. (2016). The relationship between leadership style, job satisfaction and culture of the organization. IJAR, 2(4), 35-45.

Guillaume, Y. R., Dawson, J. F., Otaye‐Ebede, L., Woods, S. A., & West, M. A. (2015). Harnessing demographic differences in organizations: What moderates the effects of workplace diversity?. Journal of Organizational Behavior.

Neumann, Y., & Neumann, E. F. (2013). The president and the college bottom line: The role of strategic leadership styles. Library Consortium Management: An International Journal.

Rosemann, M., & vom Brocke, J. (2015). The six core elements of business process management. In Handbook on business process management 1 (pp. 105-122). Springer Berlin Heidelberg.

Evaluative Performance

Acquiring companies in the European Union is an expensive move since several rules and regulations apply accordingly but have a regulated bigger market than many others so I would acquire a company inside the European Union. There are several procedures that a company has to undergo when acquiring such a company that is within the European Union. These rules will include ensuring that the minimum standard of the company in terms of the annual profit capability (Quaglia, 2014). Joining with a company within the European Union can be challenging even for a multinational company with interest of going into the European Union market. Certain rules such as having a common and predefined system of taxation for the cross-border restructuring, the company being acquired will not be liquidated but will be wind up into the major company. Acquisitions within the European Union are in every sense regulated in order to reduce the effects which might be caused by the company being a monopoly. The European Union must be notified in case the companies which are joining have an annual turnover that exceeds a certain amount of money (Rugraff & Hansen, 2011).  Bringing in new competition in the market is keenly looked into to ensure that there are no monopolies.

Advantages and disadvantages of acquisitions

There are very many reasons as to why a company would chose to acquire another company but in this case in the European Union. Once a company has acquired a company in the European Union, there is tax free trading in between the member states. This is one of the major benefits of joining the European Union market. Basically the cost of commodities between the countries or the companies within the Union is down and at a controllable manner according to the demand in food and goods. Once a company has entered into the European Union market, it opens up bigger opportunities which were never present there before. Movement along the countries in this market is free even for the citizens thereby opening up of new job opportunities and education for the young people. There are less or no conflicts between the member countries (Millett, 2011). The European Union has set standard rules and regulations to govern any issues which might arise in between the market. Rules and regulations are meant to reduce the idea of countries ever fighting over an issue. These rules are strict and need to be followed by every member therefore restricting the countries against having political and or the economic crisis which can interfere with the normal running of businesses in this market.

Disadvantages of being in the European Union market

Different languages present different cultural backgrounds and this creates language barrier making it difficult for the union to communicate effectively with all the citizens in this market. This is a challenge for a United States company to conduct business freely and fairly without these challenges. In the United States, only several languages are understood whereas the others are new to most of them. Growth of the company is assured but the money obtained will only be shared amongst the member countries since the union does not encourage poverty among its member states. Shared wealth is a good way to allow for the development of the members in this way the reduction in poverty level. It is a bad move for the company but beneficial for all. Once a company or a member country has joined the market, it is very difficult to get out of this agreement (Quaglia, 2014). The European Union controls both the market and the governments of the member countries. It is also very difficult for a country that is not in the Europe to join this diverse market.

It is a disadvantage joining the European Union market since the entry point is easy but the exits are far much wider that they actually are in the real sense. Countries like the Britain have been battling up and down trying to leave this market but with no luck since the strict rules put in place cannot allow the cheap exit. The Union has a policy of all the countries promoting other minor countries meaning that even the United States will start getting less of what they want and more of what the European Union wants. This in a way will reduce the capability of the company making more profits like they wish. Dealing now with the euro is very difficult making it very impossible for the dollar to survive in this European market. it is also advantageous to be in business in the European market since the wide market allows for the development of the minor sectors of the economy. Small companies which chose to acquire the companies in the European Union are assured of success in the market as the monopolies experienced in the home country will be much more (Quaglia, 2014). Purchasing an enterprise is the best experience but comes at a cost of not being free from the strict rules outlined during the entry of the market. Readily available market is of benefit since the company will not struggle finding where o sell but will now start enjoying a regulated new updated market.

In most cases, multination companies invest in outside markets with an aim of increasing the profit income for the company. Key benefits include the seeking of a new market which is not available in the home country. Companies have the tendency of jumping into new markets in search of buyers and sellers of their goods and services (Millett, 2011). The executives of certain companies may get the impression that the goods or the services offered by a particular company are way lower in quality that what they offer and that’s an opportunity to strike the market and take over it creating immense competition in that market. Firms may also have the interest of broadening the financial capability and seeking a market outside is the best alternative that will be a success for the company. In the outside market, the multinational company is assured of new technology and improved level of marketing.

There are several reasons as to why financial institutions would chose to offer credits outside their how country. These reasons may include the availability to higher income. Higher incomes are assured once a financial institution has invested abroad since the exchange rate of the currencies is very different. The financial institutions in many ways is trying to market its presence into the country with a view of jumping into the market soon enough (Millett, 2011). Growth and diversification is assured for the financial institution. Some countries are basically rich that other countries and if a financial institution can be able to venture into this market quick enough, then eventually there will be growth. Certain financial institutions which belong to the developed countries offer credits to third world countries in order to fund some developments which will create revenue for the financial institution in the end.

References

 In Wouters, J., In Defraigne, J.-C., & In Burnay, M. (2015). China, the European Union and the developing world: A triangular relationship.

Millett, S. M. (2011). Managing the future: A guide to forecasting and strategic planning in the 21st century. Axminster: Triarchy.

Quaglia, L. (2014). European union and global financial regulation. Oxford [u.a.: Oxford University Press.

Rugraff, E., & Hansen, M. W. (2011). Multinational corporations and local firms in emerging economies. Amsterdam: Amsterdam University Press.   

Executive Performance Report

Summary

The objective of this report is to identify if an acquisition of a company in the European Union is beneficial or will lead to a loss in the market and eventually the downfall of the company after acquisition (Vogt, 2014). Entry into the European Union market means that the company involved will have a readily available market to conduct business.

Process

The process for acquisition of a company under the European market is in accordance with the European Union regulations (Bjarnason, 2010). The process will include making the takeover bid for the European Union Company, acquiring the majority percentage of the shares for that company, buying all the shares eventually after an agreement between the owners, and finally merging with the company immediately to start the business.

Findings

It is very expensive to acquire a company under the European Union since there are rules and regulations to follow which will ultimately see the growth of the company. Some of the rules include providing details about the annual turnovers after the acquisition in order to allow for the European Union to apply rules against the company as a requirement (Vogt, 2014).

Discussions

There are many advantages of being in the European Union market. Product prices are controlled by the European Union; therefore, there is no monopoly. Once the company enters the European Union, the market is one whole where one can sell the products without any hindrances (Bjarnason, 2010). The market is tax-free meaning that the company will not have to pay for the movement of goods and services in any country under the European Union. Challenges include the company will experience difficulties during its exit. The profit sharing is regulated by the European Union and this creates low profits for a business especially after an acquisition.

References

Bjarnason, M. (2010). The political economy of joining the European Union: Iceland's position at the beginning of the 21st century. Amsterdam: Amsterdam University Press.

Vogt, R. (2014). European national identities: Elements, transitions, conflicts.

Building a global strategy

This paper discusses the global strategy through which Apple Inc provides standardized and quality products across markets in different countries and gains competitive advantage in a dynamic and diverse market. As companies expand their operations in the international market, they will face more obstacles and increased global competition.   Due to globalization, competition is no longer a local or domestic market situation, but firms will have to pit against other multinationals some which are distance away. The obstacles that the firms will face include the need to adapt to different business environment and any risks that comes with expansion. In building a global strategy, it is necessary for a firm to understand the kind of expansion that is being experienced, which may results from its resources, capabilities or even the present international position.  To begin with, a firm will first have to consider whether there is variation there is for a brand and the kind brand to undertake. In the global economy, Apple Inc faces a different environment in terms of competition due to new global realities such as reduced time for movement, internet and other connections that ease business operations. In developing global strategy, organizations will have to consider the world to be a large single market and single supply source that has local variations.

The case of Apple Inc shows how a firm can use a global strategy that focuses on beating competition in the industry by use of its internal resources to gain competitive advantage. The firm has been among the largest global company beating its rivals Samsung, IBM and LG by employing intensive growth and generic growth strategies using the internal resources that include human sources, innovations and research and development to gain competitive advantage. In the release of the latest products like iPhone 7, the firm has employed high innovation while putting emphasis in an excellent design of products. This enables the firm to succeed even when it offers products at prices that are relatively high (Black, 2015). The generic strategy has also employed broad differentiation and involves focusing on key features that go a long way in differentiating the firm and its products from its competitors. The strategy is aligned to the Porter’s model, where competitive advantage is derived from broad differentiation of its products so that the company sets itself apart from rivals by various features rather than price. To have a higher bargain power, the firm adopts an effective and elaborate supply chain framework which plays a major role value creation and hence competitive edge.  The framework also utilizes the internal capability of the firm which comprises of human resources and an efficient technology that ensures high sophistication in the retail sector.  This ensures that its inbound logistics provides effectiveness while dealing with suppliers who are located in many parts of the world (Black, 2015). To minimize suppliers bargaining power, the firm adopts the strategy of making different suppliers to compete with one another.

 The global strategy builds looks into three segments that can be followed in developing a strategy. They include an industry competition, institution-based view and resource-based view. Institution based view – firms’ competitive advantage depends on external and internal factors in business environment. Strategic choice is made due to interaction between a firm and formal and informal institutional environment (Peng, Wang, & Jiang, 2008).

Basically building a global strategy starts by an analysis of the market in which the firm is already engaged and looking at the prospects for its services or products around the globe in general terms.  This would require using some basic international data for analyzing different markets to explore the purchasing power of potential customers in the foreign markets. In addition, there are specific areas that a business should look into to determine various international opportunities that can be exploited for improved growth and profitability (Peng, Wang, & Jiang, 2008).  These include demand in the major geographical areas, competitors, the infrastructure both regional and international, economic trends and politics which constitute both internal and external business environmental factors (Peng, Wang, & Jiang, 2008).  The main reason for considering these factors is to determine how to build a global strategy that is based on the premise that competitive advantage will be achieved in a diverse and ever changing global market environment.

Industry- based view

This model involves an examination of the industry environment and specifically on external circumstances in the global market and the possibility of achieving competitive advantage.  Completion is not only between various competing firms certain industry, but goes beyond competitors’ mere behavior (Peng, 2013). It is rooted in economics so that suppliers, customers, potential entrants and possible substitute form part of competitors that are active or prominent depending on a specific industry.

Competition analysis and strategy- Porters model

In the global market, each passing decades comes with new ways of considering the business environment and how to act to remain competitive.  Building a global strategy begins with analyzing a company’s competitive environment. In this model, the various forces that determine success include new entrants, suppliers bargaining power, buyers bargaining power, threats of new substitute services and products and rivalry for the company in the industry (Peng, 2013).  These forces guide the development of a competitive global strategy since they also determine the nature of industry competition. They have to be addressed in the right way if the decision makers in the organization are to develop an effective and competitive strategy.  This strategic tool offers a global over view, instead of just focusing on detailed internal business analysis approach (Peng, 2013). Using this strategy, it helps in reviewing the strength of a given market condition   globally based on the five major forces.

Threat of New Entry:  Where a new business can be established in the organization’s sector easily, this represents a threat. This reality has been made possible in many sectors by the internet, especially in sectors such as retail and publishing. The global strategy to be built will consider the threat of a new business being set up in the sector which can pose competitive risks to the organization.  This includes determining how easy it is to start a business, the existing rules and regulations and finances needed for a startup. This strategy should also consider the kind of barriers that exist and which grants more power to organization against new entrants (Peng, 2013). A competitive global strategy is one that uses the organizational resources and influence to harness power which will in turn present a challenge to potential rivals that may plan to expand to these markets.

Buyer power: In the global market, few buyers of a given commodity or services will have control over the market. The global strategy that is effective will consider the kind of power that buyers have, the number of buyers, whether they can influence a reduction in cost and whether their power can dictate terms.

Threats if new substitute: An effective strategy will consider how to gain and improve a market share in a global market that has substitute products or services. This involves an examination of how easy it is for alternative product and service can be found within the market and whether such can be automated or outsourced. 

Supplier bargaining power: The effective global strategy will consider that where suppliers are view, they retain a bargaining power. Hence, the analysis involves examining the number of suppliers in the market, whether prices are controlled by a few or they are many bringing the prices lower.  An effective strategy will consider whether suppliers hold bargaining power, the ease of switching to other suppliers and related cost.

Competitive rivalry: The effective global strategy will focus on expansion into markets that have few competitors which makes them attractive and then ensuring that they will not be short-lived. Such markets are highly competitive since firms are chasing same customers or same work and this may reduce one’s power in this particular market (Peng, 2013). It will be essential to consider the level of competition in the intended sector and the situation of the competitor.

In this respect, Apple would develop a strategy that provides a tactical advantage to the firm over its competitors in the global market. It will involve various generic strategies that can be pursued to achieve this strategic advantage .The strategy may consider leadership in overall cost , where the decision made focus on coming up with functional policies through an exploitation of experience curve , plant scale, labor and overhead cost and such related aspects . The strategy may also involve differentiation, which will ensure that services and products of the firm in the market will be viewed as distinctive. Differentiation in this case will be derived from various sources including the development of the brand image of the product, distribution networks and customer loyalty. The strategy based on these two approaches will lead to differentiation and low-cost advantages in the industry and this can lead to improved profits and market share. In addition, the strategy can revolve around providing services and products to particular segments in a more effective way than competitors in the global market. It will involve taking advantage of the underperforming or over-performing competition within some segments of the market.

Resource – based view

The resource-based view focuses on internal resources and how they can be utilized to achieve competitive advantage in the international market. The resources of the firm have to be rare, valuable, non-substitutable and imperfectly imitable.  A firm within an industry can be heterogeneous in regard to some resources that it controls and the heterogeneity of the resources can persist over a given time. This is due to the fact that resources used by the firm imperfectly mobile in the industry, in that some these resources are impossible to trade in factor markets and are not easily imitated or accumulated. The uniqueness of these resources is, therefore, necessary for a bundle of the resources to bring about a competitive advantage (Peng, 2013).  On the other hand, if all the organizations in a given industry can access the same resources’ stock, there exists no strategy for a single firm that would not be used by other firms in the sector of the market. Immobility and heterogeneity of the resources do not offer enough conditions that can ensure sustainable advantage. The resource must also be rare, of value and not easily substitutable or imitable for competitive advantage to be sustainable. Porter assertion that competitive advantage will be realized in case of rare and valuable resources is true if the definition of the two terms, competitive advantage and valuable is the same.  The organizations should endeavor to look within firm to found out competitive advantage sources rather than looking seeking it through the competitive advantage (Peng, 2013). It will better to use the existing resources in the firm in exploitation of external opportunities in new ways instead of acquiring skills for every opportunity.

 A resource plays the key role of assisting companies in achieving the set organizational performance in the global market. This applies to both the tangible and intangible resources. Moreover, value will help the firm to improve the value of products or services provided to the customers through an increment in differentiation and a reduction in the production cost (Lin & Wu, 2014).If the resources in the firm do not qualify for this condition, developing strategy is infeasible. Temporary achievement in form of competitive advantage will be possible of the company’s resource are rare and valuable; but they should be costly for a rival to imitate or substitute for competitive advantage that is sustained to be achieved. The strategy must employ organization of the resource so as to value can be captured from them (Peng, 2013). This can also extend to human resources where a workforce can created that can provide a competitive advantage that is sustainable and to achieve this. An environment must be created that allows growth human capital just like any other resource.

In the words of the former Apple’s chairman Steve Jobs, carrying out market research is useless since customers were not aware of what they wanted until it was showed to them. Hence, the firm utilizes internal resources to create valuable bundle of services and products to present to the customers and satisfy their needs. The resource allows the creation of value proposition in research and development, services offered at the Apple’s stores, unique products’ user experience and improved product performance (Apple Inc, 2017). For the company, resources include its tangible and intangible assets or attributes in terms of innovation and reputation and even information. It is the know-how which the firm controls which enables it to develop a strategy that improves efficiency and effectiveness. These are the assets required by Apple in the creation of value proposition for its global customers. The key resources include human, physical and intellectual resources. Physical resources includes manufacturing plants in Huaian, China , and various retail stores that helps in sales location and worldwide sales and even advertisement  such products (Apple Inc, 2017). The human resources include a software development team that is highly skilled and other workers with broad experience, problem solving skills and even knowledge.  Creativity capability is another resource which has been used in the development of products that are easy to use and with software’s that are greatly designed.

 Intellectual resources also form part of the intangible assets and comprises of patents such as touch sensing design and strategic partnerships with other firms like Microsoft (Apple Inc, 2017).  These resources are valuable to the firm and enable management and products’ development teams to carry out their operations successfully. In creation and offering value proposition , the firm is able reach the global markets , gain more market share and maintain good customer relations that lead to improved earned revenues. The retail store design for the firm acts as its face and they are characterized by exclusivity in design, where customers are allowed to interact and test the products (Apple Inc, 2017). The creation of the unique user or customer experience means that the firm uses the internal resources to create value for customer and therefore, gain competitive advantage in a global environment with changing customer needs and specification. The described network of suppliers which makes it possible for the business to work is enabled by sufficient and valuable internal resources. The firm is able to build a supply chain management that cannot easily be copied or imitated by its various competitors in the international market.  The creation of alliances with partners and suppliers results to a business model that ensure risks are reduced and acquisition of key resources, and hence gaining a competitive edge through the distribution channel. The creation of strategic alliance help in extending the companies capabilities so that they are always in the market , acquiring knowledge or even accessing a  wider group of customers in the global market . The key resource acquired through this supply chain framework includes data and voice network which are very essential for the user.

 This discussion shows the resource based view as an effective way of developing a strategy of a company and creating adequate competitive advantage.  If the firm is able to exploit opportunities or even neutralize any threat by use of its resources it will gain an edge over rivals. The competitive advantage will also arise if these resources involve high cost to imitate or copy them.  Apples historical path has involved developing resources, making them hard to imitate through patents and therefore gaining a high end segment of the market that has a higher purchasing power. Combination of an industry based view and resource based view has resulted to development of a generic strategy that is focused on a sustainability of the competitive advantage. The business model has resulted to a brand reputation, first movement of products and customer loyalty. The combination of hardware and software of high quality and user friend has also contributed to the improved performance of the company.  The mixture of the intellectual resources in a way that is socially complex but simple to use and the improved partnership supports the strategy.

Further research on the generic global strategy of the firm should involve the institution based view. Like any other organization, Apple has regulative, cognitive and normative structures and various activities that offer stability and sense to social behavior. Since the firm has its operations in different countries with each having varying institution fabric and such contexts are not adequately addressed through the resource and industry based review.  Other than forces in the market and resources available to the firm, there is need to consider the impact of informal and formal rules in the formation of Apples global strategy. The firm must have considered the formal and informal rules in this game for it to be a winner in the global market.

References

Peng, M. W. (2013). Global strategy. Cengage learning. 64-65

Peng, M. W., Wang, D. Y., & Jiang, Y. (2008). An institution-based view of international business strategy: A focus on emerging economies. Journal of international business studies, 39(5), 920-936.

Lin, Y., & Wu, L. Y. (2014). Exploring the role of dynamic capabilities in firm performance under the resource-based view framework. Journal of business research, 67(3), 407-413.

Apple Inc, (2017). Retrieved from: https://www.apple.com/

Discussion 1

If a business is set as a sole proprietorship, personal loan guarantee means that the owner is liable to pay the loan if the business is unable to repay. The creditor can go after the assets of the owner since he or she is not separate from the business itself. The creditor can go after the owner’s personal bank account, their wages and even foreclose on their house (Steingold, 141).

This case also applies for general partnership, where the personal loan guarantee will impact on all the partners and not only the guarantor.  Every partner in the business bears 100 percent of the loan taken by a single partner. If there are not sufficient funds or even business assets to pay for this loan or debt and the other partners are cannot pay, the personal assets of the partner how guaranteed will be taken to pay for the loan.  It does not only consider only the pro rata share of this loan or debt(Steingold, 141).

For a limited partnership, the personal loan guarantee means that legal liability of a partner may flow from their actual control over the operations of the enterprise. A general partnership is exposed unlimited personal liability if the business is unable to pay the loan. The personal assets of the partner can be sold by the creditor to recover the loan. If the business has more than one general partner, the general partners are severally and jointly responsible to pay the loan if the business is unable to pay (Steingold, 142).

If the business is a limited liability Company, normally the person and this business are separate entities. Signing the personal guarantee means that one has given up the limited liability deliberately and is therefore liable (Steingold, 142).

Reference

Steingold, Fred S. Legal Guide for Starting & Running a Small Business. Nolo, 2017. Print. 141-142

International Trade and Investment

The international trade has consequently increased trade between different countries all over the world. This is mainly because of trade agreements and technological advancements in the world. In the year 1970, the value of world exports was 0.4 trillion dollars, thirty years later, the world exports more than tripled, reaching 10.8 trillion in the year 2004 ((n.w), 2007). Trade agreements have consequently allowed most countries in the world to be able to trade freely, hence increasing trading activities in the world.

Industrialization, which is a very significant factor when it comes to trading, has also helped in the mass production of goods, hence leading to huge exports ((n.w), 2007). In as much as free trade has been able to increase international trade, the proponents of free trade continue to argue that free trade has major disadvantages than advantages. Developed countries, are highly industrialized, thus making them to easily produce manufactured products, which cannot be matched by developing countries, due to poor industrialization. This consequently makes developing countries, to rely on imports of manufactured goods from developing countries.

Developing countries, tend to have more unskilled labor than skilled labor, thus making them to rely on the export of agricultural products. Due to the huge production of industrial products such as sugar by developed countries, developing countries tend to export products such sugar at very cheap prices, leading to the closure of sugar factories in developing countries. Most people consequently lose their jobs, thus making it hard for the developing countries to be able to grow their economies ((n.w), 2007). In short, free trade consequently leads to a trade imbalance, since one of the trading countries tends to suffer, while another one enjoys. Another example is between China and the US, both countries are developed and they may be able to produce similar products. However, products manufactured tend to be cheaper as products manufactured in the US, due to free trade, most people from the US, will tend to buy products from China, thus leading to the closure of manufacturing companies in the US.

Reference

(n.w). 2007. How Beneficial is World Trade? Retrieved from: https://www.youtube.com/watch?v=xRJZWfqWcs0&list=PL37FE6E9923610890

Internationalization of software industry

Introduction

Over the recent years, the research on software business has extended the focus of business networks to include the informal business relationships between customer companies and suppliers and how this effective corporation can be used to bring value to both parties.  Such relationships also relate to software business that has experienced a rapid growth recently. Internationalization as a strategy is in software business is better discussed after understanding how it has been used in research and how the process has been involved in enhancing business networks. This research also focuses on which problems internalization aims at solving in business operations especially among the Small and Medium Size enterprises. Knowledge on network connectedness helps companies to benefit reduced market restrictions and hence, improve creation of relationships to a wide range of companies.

Review

 The article explores the practice of network relations for SMEs and the internalization process in regard to business to business markets. The main factors that enable rapid Internationalization of activities by software firms include an improved communication and transportation infrastructure, and the understanding of technological advancement and internal specific-knowledge performance.  However, a reliance on this scope is likely to hinder SMEs survival in foreign markets over the long-learn.  Absence of market knowledge hinders the possible benefits that could be achieved from existing dyadic partner network connections.  Having this knowledge enables an expansion of the dyadic relationship of company while lack of it hinders the company from learning about networks and understanding the network.  Hence, the paper also examines how the expansion of network in marketing at business level can enable a firm to build its network in U.S as a host country.  An examination of Vincit, a Finnish software developing firm helps the authors to understand how Internationalization of activities through expansion of network abroad can be done.

 Relationship forms the major aspect of business network since they enable connection of resources, operations and actors to other firms. The evolution of such a relationship begins once the parties starts interaction and doing business together and its development involve an investment on time and resources to facilitate interaction between firms.  The present business relationships emerge from previous business operations and interactions but they enable firms to handle the increasing reliance on parties and develop more tailored requirements. The relationship is profitable to both parties and informal, since it involves bilateral decision making and is based on people’s relations in the companies and they are handled according to past interactions’ experience.

 The Uppsala, a business model for internalization, has enabled companies to penetrate international markets and involves formalization of entries through having deals with intermediaries as the first step and later replaces them with their sales representatives and later replaces the sales representatives with manufacturing plants abroad. The Uppsala model shows how casual line is developed from commitment over practical knowledge and then opportunity development. Such processes lead to the creation of relationships, generation of new knowledge through interacting and these results to new business opportunities. A revision of this model involves new ingredients which consider the network approach but still emphasizes how existing relationships affect market penetration by a firm. It also considers that a dyadic relationship between two firms happens in business markets where there is interaction and formation of business networks. A business network involves forming relationship by business units and related network. The involved parties use resources and knowledge develop complex interactions and adaptations between forms.  A company that is expanding in foreign markets must understand the business networks in these markers.   Trust and commitment are important in building networks necessary for internalization lack of which may lead to parties ceasing or reducing relationships. Knowledge in the network context helps in internationalization and hence building of relationships through trust and commitment.

These business networks have been established by software companies have been developed to Software Ecosystems, and the forms in the network are able to create competitive value. The software ecosystem are steered and managed by   coordinating firms which also have control over the underpinning technology that forms the base of the ecosystem.  For Vincit, the services it offers to an expanding B2B customer network are basis of its success since the customers and businesses are satisfied.  The analysis of data on Vincit case study focuses on knowledge and opportunities, relationship and commitment, learning, creation and building trust and network position. Internal knowledge of the firm enriches its experience and which is used in transforming intangible product into customer solutions. Relationship building helps in transiting internal knowledge into products and hence opportunities. Knowing what customer needs and providing solution shows commitment that enable Vincit to build good relationships. Having knowledge about partners and learning emanates from its various working experience and positions in interaction given that there is a good relation with customers. On network position, Vincit has not taken advantage of dyadic relationships to expand beyond them and gain the various benefits that comes with a wider network. Its independent operations in US market have made the firm to lose out on many opportunities and its big trust on its first-hand knowledge and neglect of knowledge from other companies in the network has not helped the situation.

Conclusion

 Internalization of any industry requires the firms to realize the need for building trust and commitment with other businesses that are its customers and hence a strong network position. An Internationalization model that stresses the importance of creating relationships between businesses that depend on each other is expected to serve the software industry right.  Building of such relationships will make it necessary for companies in the software industry to open up opportunities in the international markets and hence growth in their business. However, such relationships are built on knowledge about the importance of corporation in the market between different firms.  With the example of Uppsala business model for internationalization, a local business is able to penetrate in foreign markets by establishing networks with other business in the market a path that will lead to full expansion.

 A dyadic business relationship as the initial step of developing business networks involves the knowledge that companies in the software industry do not carry out their activities in operations. The social exchange between two firms can be used to build business operations that are more connected which can be for a bridge for international expansion. The firms in foreign countries have knowledge about the market which the local market needs. If a firm an act independently like Vincit and only believes in its capabilities, it will miss out on opportunities that come with wide networking.