Economic environment of business case study

The conceptual discussions of these topics are complemented by several country case studies that illustrate the effects of various policy options.

Case Studies

The book does not offer specific policy prescriptions for every conceivable situation a country might face, but the writers give valuable advice based on their experience. Although intended for use in courses and seminars at the EDI and its partner institutes, the study should also be of interest to government officials and policymakers in the developing world who want to have an overview of the various policy issues. See Less -. All language versions and volumes across World Bank Repositories.

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PEST assists macro environment analysis

Relevant data and evidence on the importance of improving the physical environment. I applaud your effort to address the issues surrounding disability in society but I think the study has errors.

Reliance on Statistics Canada information; The issue here is that there are substantial flaws in this data set, these errors are identified by the United Nations Convention most recent report on Canada which noted 2. The Committee is concerned that the State party does not have up-to-date quantitative and qualitative data on the situation of persons with disabilities and the enjoyment of their human rights. Definition of a disability; Although this may not be fully understood, your definition of disability resembles a medical model when it should be identifying the issues using a human rights model.

An example of this is limiting your report to 'physical disabilities' and not being inclusive of intellectual disabilities. Sample size too small and narrow; Your own admission that the age group, education level, and employment status of the sample group did not reflect the averages associated with this population as a whole. Focus on street furniture architecture and physical accessibility; The barriers to employment are far more complex than how you arrange furniture or provide ramps.

CBSE Class 12 Case Studies In Business Studies – Business Environment

Issues such as transportation, housing, and a better understanding of disability issues in the workplace will have a much better ROI and unemployment levels of disabled persons in the workplace. So you enter into a licensing agreement with a Japanese company that allows your licensee to manufacture coffee-flavored popcorn using your special process and to sell it in Japan under your brand name. In exchange, the Japanese licensee would pay you a royalty fee — perhaps a percentage of each sale or a fixed amount per unit.

Another popular way to expand overseas is to sell franchises. Under an international franchise agreement, a company the franchiser grants a foreign company the franchisee the right to use its brand name and to sell its products or services. The franchisee is responsible for all operations but agrees to operate according to a business model established by the franchiser. In turn, the franchiser usually provides advertising, training, and new-product assistance. Because of high domestic labor costs, many U.

This arrangement is called international contract manufacturing , a form of outsourcing. It will, however, retain control of product design and development and put its own label on the finished product. Contract manufacturing is quite common in the U. Thanks to twenty-first-century information technology, nonmanufacturing functions can also be outsourced to nations with lower labor costs.

For years, American insurance companies have processed much of their claims-related paperwork in Ireland. With a large, well-educated population with English language skills, India has become a center for software development and customer-call centers for American companies. In the case of India, as you can see in Figure 5. What if a company wants to do business in a foreign country but lacks the expertise or resources?

In these cases, a firm might enter into a strategic alliance with a local company or even with the government itself. A strategic alliance is an agreement between two companies or a company and a nation to pool resources in order to achieve business goals that benefit both partners. For example, Viacom a leading global media company has a strategic alliance with Beijing Television to produce Chinese-language music and entertainment programming.

Alliances range in scope from informal cooperative agreements to joint ventures — alliances in which the partners fund a separate entity perhaps a partnership or a corporation to manage their joint operation. Magazine publisher Hearst, for example, has joint ventures with companies in several countries. So, young women in Israel can read Cosmo Israel in Hebrew, and Russian women can pick up a Russian-language version of Cosmo that meets their needs.

The U. This approach allows Hearst to sell the magazine in more than fifty countries.


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As markets expand, however, a firm might decide to enhance its competitive advantage by making a direct investment in operations conducted in another country. On the other hand, offshoring occurs when the facilities set up in the foreign country replace U.

Shifting production to low-wage countries is often criticized as it results in the loss of jobs for U. A common form of FDI is the foreign subsidiary : an independent company owned by a foreign firm called the parent. This approach to going international not only gives the parent company full access to local markets but also exempts it from any laws or regulations that may hamper the activities of foreign firms.

The Glo­bal Eco­no­mic Im­pact of No­var­tis

The parent company has tight control over the operations of a subsidiary, but while senior managers from the parent company often oversee operations, many managers and employees are citizens of the host country. Not surprisingly, most very large firms have foreign subsidiaries. FDI goes in the other direction, too, and many companies operating in the United States are in fact subsidiaries of foreign firms.

Where does most FDI capital end up? Figure 5. All these strategies have been employed successfully in global business. But success in international business involves more than finding the best way to reach international markets. Global business is a complex, risky endeavor. Over time, many large companies reach the point of becoming truly multi-national.

A company that operates in many countries is called a multinational corporation MNC. Only two of the top ten MNCs are headquartered in the U. Three others are in the top Chevron, Berkshire Hathaway, and Apple. The others are non-U. Interestingly, of the fifteen top companies, ten are energy suppliers, two are motor vehicle companies, and two are consumer electronics or computer companies.

Economic Factors Important to McDonald’s Corporation

Also interesting is the difference between company revenues and profits: the list would look quite different arranged by profits instead of revenues! Increasingly, MNCs supplement their mainstream product line with products designed for local markets. Coca-Cola, for example, produces coffee and citrus-juice drinks developed specifically for the Japanese market. For example, Nokia introduced a cell phone for the rural Indian consumer that has a dust-resistant keypad, anti-slip grip, and a built-in flashlight. Likewise, many MNCs have made themselves more sensitive to local market conditions by decentralizing their decision making.

While corporate headquarters still maintain a fair amount of control, home-country managers keep a suitable distance by relying on modern telecommunications. Today, fewer managers are dispatched from headquarters; MNCs depend instead on local talent. Not only does decentralized organization speed up and improve decision making, but it also allows an MNC to project the image of a local company. IBM, for instance, has been quite successful in the Japanese market because local customers and suppliers perceive it as a Japanese company.

The global reach of MNCs is a source of criticism as well as praise. Critics argue that they often destroy the livelihoods of home-country workers by moving jobs to developing countries where workers are willing to labor under poor conditions and for less pay.

How to solve case studies - business studies - class 12 -

They also contend that traditional lifestyles and values are being weakened, and even destroyed, as global brands foster a global culture of American movies; fast food; and cheap, mass-produced consumer products. Still others claim that the demand of MNCs for constant economic growth and cheaper access to natural resources do irreversible damage to the physical environment. All these negative consequences, critics maintain, stem from the abuses of international trade—from the policy of placing profits above people, on a global scale. These views surfaced in violent street demonstrations in Seattle in and Genoa, Italy, in , and since then, meetings of the International Monetary Fund IMF and World Bank have regularly been assailed by protestors.

Supporters of MNCs respond that huge corporations deliver better, cheaper products for customers everywhere; create jobs; and raise the standard of living in developing countries. They also argue that globalization increases cross-cultural understanding. Anne O. Kruger, first deputy managing director of the IMF, says the following:.

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Environment Case Studies

Growing incomes give people the ability to spend on things other than basic food and shelter, in particular on things such as education and health. This ability, combined with the sharing among nations of medical and scientific advances, has transformed life in many parts of the developing world. Infant mortality has declined from per 1, births in to 60 per 1, births. Literacy rates have risen from an average of 40 percent in the s to over 70 percent today. World poverty has declined, despite still-high population growth in the developing world.

Some are quite obvious, such as differences in language, currency, and everyday habits say, using chopsticks instead of silverware. But others are subtle, complex, and sometimes even hidden. Success in international business means understanding a wide range of cultural, economic, legal, and political differences between countries. When people from different countries get together, that possibility increases substantially.

Differences in communication styles reflect differences in culture: the system of shared beliefs, values, customs, and behaviors that govern the interactions of members of a society. Cultural differences create challenges to successful international business dealings. English is the international language of business. The natives of such European countries as France and Spain certainly take pride in their own languages and cultures, but nevertheless English is the business language of the European community. Whereas only a few educated Europeans have studied Italian or Norwegian, most have studied English.

Similarly, on the South Asian subcontinent, where hundreds of local languages and dialects are spoken, English is the official language. In most corners of the world, English-only speakers—such as most Americans—have no problem finding competent translators and interpreters.

So why is language an issue for English speakers doing business in the global marketplace? In many countries, only members of the educated classes speak English. The larger population—which is usually the market you want to tap—speaks the local tongue.

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