Topic 9

3/11/2013
-week 12-
Ethics, Corporate Social Responsibility, Environmental Sustainability, And Strategy

What is Business Ethics?
-  Doing business in a good way like honest, responsibility, don't take bribery,punctual in time a so on.
-  In the book, business ethic means the application of general ethical principles to the actions and decisions      of businesses and the conduct of their personnel.


Where do ethical standards come from?
1- The school of ethical universalism holds that the most important conceptions of right and wrong are                universal and apply to members of all societies, all organizations and all businessperson.
2- The school of ethical relativism holds that differing religious, customs, norms, and behavioral  give rise to        multiple sets of standards concerning what is ethically right or wrong.

Example Of challenging ethical dilemmas :
1. The use of underage labor - Lately, many company used underage workers.  It will considered as taboo.       Some activist think that underage worker considered as unethical things.  Underage worker means                 company hired children under the age of 18 as full time worker.  More than 50 countries view children as       potential and necessary workers.  The company will pay the low wages and it will make profit if the               company hired underage workers.  It is considered as unethical because children need education starting       in the early age and they should be care by parents not care about work.

2.  The payment of bribes and kickbacks - In some area, the company will include also the bribes and                kickback for be successful business quickly.  In many Eastern Europe countries, it is usual to pay bribes        to government in order to get government contract, obtain a license or permit, or facilitate an                         administrative ruling.  In some developing  nations, it is difficult to move goods through customs without         paying off low-level officials.  In U.S, there is Foreign Corrupt Practices Act (FCPA) that will prohibited       from paying bribes in other to do business.


Why should  company strategies be ethical?
* because a strategy that is unethical is morally wrong and reflects badly on the character of the company personnel
* because an ethical strategy can be good business and serve the self-interest of shareholders
- companies that involve in unethical conduct will have difficulty in recruiting and retained talented workers, lost revenues, reputation of business will down, creditors will disappeared trustworthiness to the company and so on.  There are also penalties on unethical executives which is they will be 150 years in the prison.  So, every company and individual should prevent from doing unethical behavior in the life.

topic 7

29/10/2013

Week 8

Strategy For Competing in international markets

Why companies decide to enter the foreign market

-         - To get new market segmentation or new customer

-        -  To produce minimize the cost but maximize the profit

-        -  To spread business risk across a wider market base

-       -   To further exploit core competencies

-        -  To gain access to resources and capabilities located in foreign markets

The strategic options for entering and competing in international market

-         - Maintain a national production base and export the goods to foreign markets

-          -License foreign firms to produce and distribute the company’s product abroad

-          -Employ a franchising strategy

-          -Establish a subsidiary in a foreign market via acquisition or internal development

-          -Rely on a strategic alliances or joint ventures with foreign companies

Competing internationally: The three main strategic approach

1.      1.   Multidomestic (think local act local) strategy is one in which a company varies its product offering and competitive approach from country to country in an effort to be responsive to differing buyer preferences and market conditions.

2.  2.    Global strategy (think global act global) is one in which a company employs the same basic competitive approach in all countries where it operate, sells much the same products everywhere, strives to build global brands and coordinates its actions worldwide with strong headquarters control.

3.    3.  Transnational strategy (think global act local) is an approach that incorporates elements of both multidomestic and global strategies.

topic 6

22/10/2013

-week 7-

Chapter 6: Strengthening A Company’s Competitive Position

Blue Ocean

Some program or product that has never be done by other people or other company to gain more profit.  For example government does transformation programs through im4u program.  The other thing is fedex that create delivery in one night. Starbuck coffee is the first restaurant that started drinking coffee with luxury and comfortable space. 

Horizontal Merger and Acquisition

Merger is combining of two or more companies into a single corporate entity with the newly created company by using a new name of company.  But acquisition means purchase of one business or company by another company or other business entity.  Then, horizontal merger and acquisition defined as process of combining the operations of firms within the same product or service.  For example:

                                                                       

    

     

                                                                                                                       

Vertical Integration Strateged firm is one that participates in multiple segments or stages of an industry’s value chain system.  Vertical integration can be dividing into two parts which is forward integration and backward integration.  For example: