Impact of Internationalisation of Business Markets

Impact of Internationalisation of Business Markets This report aims to analyse and discuss the internationalisation of business and global marketing issues. It also analyses the influence of global marketing environment on the marketing activities of the firm. In order to prepare this report, there has been a use of various Academic textbooks and journals. Over the past thirty years, internationalisation of the firm has been the most frequently researched topics in international marketing (Fletcher 2001). It has been used to describe the outward movement or increasing involvement in a firms or larger groupings international operations (Fillis 2000). In general, Internationalisation refers to the increasing importance of international trades, international treaties, international relations, alliances, etc. Firms undertake international operations due to various reasons (Lam and White 1999). Some internationalise due to the fact that their competitors or customers have been globalised (Ohmae, 1990), whereas others are pushed by the idea of multinationalism as a symbol of success and progress (Gerlinger et al. 1989). The firms use a stepwise approach along with an organisational continuum, in order to develop the international operations. The Uppsala School views internationalisation as having four stages while it has also been modelled with five and six. Although the number of incremental steps may differ, there is general agreement that with each subsequent step comes increasing involvement in international operations. However, due to increasing globalisation, chaotic market conditions and technology effects, it is believed that such stepwise advancement is not generally exhibited in SMEs and that alternative modelling of microenterprise behaviour is needed in order to account for emerging modes of behaviour (Fillis 2000). Definition of Internationalisation: There are many possible definitions of Internationalisation, some referring to the whole economy of the home or internationalising, country, some referring to specific sectors of the economy, and some referring to MNEs themselves (Kumar, N 1998). Calof and Beamish (1995: 116) denotes Internationalisation as the process of adapting firms operations (strategy, structure, resources, etc) to international environments. Whereas, Welch and Luostarinen (1988), Rao and Naidu (1992), Easton and Li (1993) and Johanson and Vahlne (1993) has defined internationalisation as a process by which firms increase their involvement in international business activities. From the above-proposed definitions, it can be concluded that Internationalisation is a process in which the firm gradually increases its international involvement. Complexity and challenges in Internationalisation: Internationalisation is a process which is very complex and challenging by nature. There have been various factors which have made internationalisation as a complex process. The most important factors are uncertainty in formats, formula and markets, the high degree of operational flexibility required and there need to be the high rate of formula innovation in order to get a success in internationalisation (Dawson, J. 2003). Uncertainty in Formats, Formula and Markets: As being an international market for the internationalising firm, it is very uncertain. The firm faces huge competition from the local markets. These all factors make internationalising for the firm very challenging. High degree of operational flexibility required: In order to perform a successful internationalisation process, there needs to be a high degree of operational flexibility, which will give an advantage to the internationalising firm over the local firms. Need of high rate of formula innovation: In order to gain an advantage over the local firms, the internationalising firm has to be very active in terms of innovation. As the competition will be high for the internationalising firm there needs to be a rapid innovation of the formula. Uppsala Internationalization Model: The Uppsala Internationalization Model was originally developed by Johanson and Vahlne (1977, 1990). This model, also known as the incremental theory of internationalisation, shows that enterprises gradually increase their international involvement according to the development of their knowledge about foreign markets and operations. Camuffo et al. (2007) enhanced this model by adding technological knowledge and customer-supplier interaction as important determinants of the process, stating that cross-border expansion into a neighbouring country might shorten the time required to accumulate knowledge and to control the facility in the target country (Reiner, G. 2008). The Uppsala model has described the internationalisation of a firm as a process of experiential learning and incremental commitments which lead to an evolutionary development in a foreign market. Johanson and Vahlne formulated this approach in 1977, referring to empirical observations on Swedish manufacturing firms from their studies at the international business department of Uppsala University. One of the basic assumptions of the model is that the lack of knowledge is an important obstacle to the development of international operations (Johanson Vahlne, 1977: 23). Hence, the Uppsala model has dealt fundamentally with knowledge acquisition and learning. It has been observed that the absence of market-specific knowledge has forced the many manufacturing firms to develop their international operations in small steps, undertaking incremental commitment decisions and moving at the beginning to psychically close countries in order to reduce the market uncertainty (Johanson Vahlne, 1977 : 24). Uppsala model is based on four core concepts: market commitment, market knowledge, current activities and commitment decisions. These four concepts are then divided into state aspects and change aspects. The two state aspects are market commitment, which is the resources committed to foreign markets, and market knowledge, which is the knowledge about foreign markets and operations possessed by the firm at a given time. The two change aspects are current activities and commitment decisions. The latter are the decisions to commit resources to foreign operations (Johanson Vahlne, 1990). Drawback of Uppsala Internationalisation model: The Uppsala model has been criticised for being partial and deterministic (Hollensen, S. 2007).The first criticism is based on the fact that Johanson and Vahlne 1977 rely on only one construct- experiential knowledge as one of several constructs, including the decision making process of the firms management. On the other hand, the internationalisation process model does deal with how other factors are handled in the process (Blomstermo, A. 2003). The criticism that the model is deterministic has to do with the incremental development of experiential knowledge and its manifestation in the visible stage model. Researchers provide empirical evidence that shows that firms do not always start with occasional exports and end up with a production company abroad (Newbould, Buckley and Thurwel 1978).It has also been argued that the model does not take into account interdependencies between different country markets (Johanson and Mattson, 1986) Advantages of Uppsala Internationalisation model: After analysing the Uppsala Internationalisation model it was found that there have been very few advantages. The only advantage associated with this model is that it explains the internationalisation process. In comparison to all the other models of internationalisation this has been highly criticised (Madsen, K. 1991). Macro-environment Forces: Whether its an international banking organisation, a university or a manufacturer, no organisation exists within a vacuum. It is very likely competitors, to be subject to international, national and local control, obliged to comply with national or European pollution fluctuations in the fortunes of the global economy (Brooks, I. 2004). Factors that influence a companys or products development but that are outside of the companys control. For example, the macro environment could include competitors, changes in interest rates, changes in cultural tastes, or government regulations etc (Hill, C. 2009). Macro- environmental forces influencing Internationalisation process: The various outside influence on a firms decision to go international are as follows: Export Agents Governments Chamber of commerce Banks etc. Unsolicited international orders are one major factors influence the firm to begin exporting. In United States, such orders have been found to account for more than half of all cases of export initiation by small and medium-sized firms. Another major influencing agent may actually be a competitor. Just as firms respond to competitive pressures from other companies, statements by executives from other competing firms may serve as change agents (Czinkota, M. 2007). Export Agents: Export agents as well as export management firms generally qualify as experts in global marketing. They are already dealing internationally with other exportable products, have overseas contacts and are set up to handle other exportable products, have overseas contacts and are set up to handle other exportable products. Many of these trade intermediaries approach prospective exporters directly if they think that their product have potential markets overseas (Hollensen, S. 2007). Governments: In nearly all countries governments try to stimulate international business through providing global marketing expertise (export assistance programmes). For example, government stimulation measures can have a positive influence not only in terms of any direct financial effects that they may have, but also in relation to the provision of information (Welfens, P. 2001). Chambers of commerce: Chambers of commerce and similar export production organizations are interested in stimulating international business, both exports and imports. These organizations seek to motivate individual companies to get involved in global marketing and provide incentives for them to do so on. These incentives include putting the prospective exporter or importer in touch with overseas business, providing overseas market information, and referring the prospective exporter or importer to financial institutions capable of financing global marketing activity (Hollensen, S. 2007).. Banks: Banks and other financial institutions are often instrumental in getting companies to internationalize. They alert their domestic clients to international opportunities and help them to capitalize on these opportunities. Of course, they look forward to their services being used more extensively as domestic clients expand internationally (Czinkota, M. 2007). Common Customer needs: In general, standardization is less likely with services that with goods. Within services, the potential for standardization is greater the less the provider is involved in the delivery because this increases the extent to which customer needs are likely to have more features in common. Scale Economies: These are driven by the opportunity to spread fixed costs. With services, such economies are more likely to come from standardised processes than from a physical concentration of activities (Blythe, J. 2005). Competition Drivers: These often occur because the service provider finds it necessary to go international in order to protest its position in the domestic market, especially if costs can be lowered. If the service providers do not take this step, then there is an increased risk that firms in the international market may use that market as a base from which to internationalise their operations (Toyne, B. 1989). Information Technology drivers: The ability to centralise information hubs on a global basis is a motive because it strengthens the firms competitive position. For example: Rupert Murdochs involvement in satellite TV in order to monopolise sports coverage (Brown, L. 2004). Apart from the above-mentioned drivers, there are some more drivers of internationalisation such as Revolution in information and communications systems, globalisation of financial markets and also improvements in business travel (Blythe, J. 2005). Conclusion: From the above discussion and findings, it can be concluded that Internationalisation is a process in which the firm gradually increases its international involvement. It has been also found that the internationalisation is very complex by nature. Various models of internationalisation have been proposed till date, out of which the most famous model is Uppsala approach model of internationalisation. However, it was found that there have been various drawbacks in this model such as, being partial and deterministic, not taken into account interdependencies between different country markets etc. From the discussion of the influence of various macro environmental forces on internationalisation, it can be concluded that there is an increasing number of influence on the firms to go for industrialisation.

The Holistic Medicines

In a lot of conditions, medical cures and treatments have proven more harmful than the disease itself. In looking for other options, people all over the world have been turning back to the holistic way of health and healing. Holistic medicine is the art and science of healing the whole person, or in holistic terms, the mind body and spirit. The practice of holistic medicine integrates conventional and alternative therapies to prevent and treat diseases and promote optimal health. This condition of holistic health is defined as the ultimate free flow of life energy force throughout the mind, body, and spirit. As I mentioned before, three parts make up the whole person. Based on a common law of nature, whole parts are made up of independent parts. The body, which is treated and cared for through nutritional medicine, fitness medicine, and environmental medicine. The mind (mental and emotional health) which is basically behavioral medicine. The spirit is treated with spiritual attunement and social health. When one of these three parts isn†t functioning correctly or is impaired for some reason, the other parts of the person are affected. For example, a person growing nervous or anxious about an upcoming exam can literally give themselves a headache or stomachache. Even Socrates, one of the greatest philosophers in history of time said in order for the whole of a person to be well, the individual parts must be well also. This can be achieved by many things. For example, acupuncture is used to identify and treat disease and improve well being. During acupuncture, needles are inserted into the meridian points of the body. Sickness occurs when the flow of blood or â€Å"chi† is blocked at these points. The pressure applied to these points relieves blockage and buildup thus leaving the patient feeling better. Acupuncture can treat anything from allergies, headaches, sinus infections, stress, insomnia and chronic pain. For those people who don†t enjoy needles or wont tolerate needles at all there is colorpuncture. Colorpuncture is basically acupuncture without needles. Meditation is another accepted form of holistic health. Meditation is using different methods of relaxation to calm yourself and make you healthier inside. Candles, salves, oils and incense are all commonly used during meditation. Meditation is an accepted form of recovery and health promotion in the medical field. Eye movement desensitization and reprocessing is yet another form of holistic healing. This helps remove conflict and stress from your life and promote success and happiness. Reflexing and resetting is the vibrating and stimulation of the body†s reflexes. It is most commonly done through the feet and can help with sleep disorders. Biofeedback is recognizing and manipulating the body†s signals. It helps to treat migraines, panic attacks, anxiety, hypertension, and A.D.D. Some of the most common methods of holistic healing are resurfacing just about everywhere. Aromatherapy is therapy using scents to relax the mind, body, and soul. There is a line of products in Wal-Mart now called â€Å"aromatherapy† and even well known companies such as Delia†s manufacture aromatherapy pillows. Chiropractors are a readily accepted form of holistic treatment. Chiropractors manipulate the body†s muscles and bones to relieve pain and stress. Massage and is a big part of holistic life. There are deep tissue massages, Swedish massages etc†¦ All of which help muscular posture, balance, stress reduction, increase of circulation and energy flow. Nutrtiion is also an important part in a holistic lifestyle. Health food stores such as GNC are popping up everywhere. With nutritionists come herbalists who also deal with weight management and vitamins. There is holistic dentistry which is generally mercury free and has less exposure to x-ray†s and harmful chemicals. There is even Holistic Veterinary care which treats pets in the same way as humans. Pets said to be lost cases are sometimes revived by this form of veterinary care. Anything from arthritis, skin infections, and allergies can be cured. Feng Shui is not as common in the US yet. It is Chinese consultancy in arrangement of objects in the home or office to achieve harmony. It is said your outer world is a mirror of your inner world. Lots of water fountains are used. Spiritual Psychics, Astrologists, Child Birth, Tai Chi, Yoga, even health and beauty are all reviving to holistic methods. These different treatments all fall under the six specialized areas of holistic healing 1. Bimolecular Diagnosis and Therapy Basically a holistic lifestyle is trying to unite your body with gravity and your heart with your mind. Once all your parts are in harmony, for example the ying and yang, you can achieve perfect health. In my opinion the holistic way of life is a very interesting way of life that really intrigues me. I would like to acquire the skills and self-control some of these methods call for. Some methods really don†t appeal to me, for example acupuncture, but other methods such as meditation, aromatherapy, reflexology, and feng shui, are all valid forms of the holistic way of life that would definitely be of interest to me. Although some people think that this way of life is crazy etc, I think it is helpful and important in every day life. Just about everyone can practice this lifestyle in the easiest of ways. Although many people do not believe in the holistic way of life, even more people are firm followers of these concepts and it is sure to be an evergrowing idea that lasts for generations to come.

Lab Safety Paragraphs Essay

Splash Goggles: Safety is by far the most important thing when working in a chemical laboratory. There are over thousands of injuries that occur each year that are partially non-preventable, but a great majority are preventable accidents that could have been solved with simple lab safety. One of the most critical pieces of lab safety would have to be wearing eye protection. Eye protection could save your vision and eye protection should be worn at all times regardless if an experiment is being conducted or not. The eye protection worn should also have wide shields in order to protect your ears as well as your neck. There are many types of eye protection: chemical splash goggles face shields, safety glasses, etc. The type of eye protection required is dependable on the chemicals and situation so always understand the experiment first before choosing eye protection and if you do not know, you should always ask your TA. Hand Gloves: Another critical piece of lab safety would be wearing gloves when conduction experiments. They are necessary when your TA requires you to wear them. They will protect you from chemicals, but they do not offer permanent protection from chemicals. Following suit, gloves, like eye protection, come in many different forms, which can include, but are not limited to the following: latex gloves, neoprene gloves, etc. Gloves also come in different lengths depending, once again, on the situation and experiment being conducted. Gloves should not be reused unless they are clean and free of chemicals. Also, gloves should be checked for holes and cracks because the last thing that should happen is having any part of your body coming into contact with  chemicals. Gloves should also be removed before touching other things like your phone or notebooks. Long Pants: Wearing long pants (from hip to foot) while performing any type of experiment in the lab, is another essential safety rule that must be followed. Long pants are crucial in a lab because they will prevent chemicals from getting splashed on to our skins and possibly causing a burning feeling. Only long pants and coats are strictly needed for clothing because other loose clothing such as shorts, skirts, etc. are much more likely to easily catch fire, or be dragged through chemicals, or even tangle up in moving equipment. Closed toe shoes: Many of the labs in chemistry involve dangerous substances that could cause harm to our skin. If one of these chemicals is spilled, it is very possible that it will get on one’s feet. Wearing sandals leaves the toes exposed and prone to be harmed by the spilled chemicals. Also, most of the utensils used in a lab are made of glass. Where there is glass, there is a possibility that it might break. If broken glass pieces get on your exposed feet, there is a high chance of injuries happening. Whereas if one wears closed toe shoes, even if shattered glass fell on our feet, they would be protected. Lab Coat: A lab coat is another essential safety issue when working in the lab. In the chemistry lab we will be working with many substances, many of which are toxic and could easily get on our skin and clothes. A lab coat protects our skin and doesn’t allow substances to get on our clothes. There is also a risk that our clothes might catch on fire. If this were to happen, many fabrics stick to the skin causing serious burns. A lab coat is made of materials that won’t stick to one’s body in case of a fire. Also, a lab coat is much easier to take off than regular clothes, allowing for less time to burn.

Relationship between Entrepreneurship, Innovation and Economic Development Free Essay Example, 1750 words

One of the most significant attributes of Schumpeter s theory is the idea of entrepreneurial profit in the theory of economic development. According to Schumpeter, entrepreneurial profit falls in the purview of temporariness. By applying new aspects of production, entrepreneurs earn the advantage of being the first mover. For example, through the innovation of a more effective production procedure, the entrepreneur will be the only manufacturer to gain the advantage of related lower expenses only for a certain period of time. As information is shared, other organizations will try to compete with the new innovation of the entrepreneur. The gain of an entrepreneur lies in uncertainty because the demand for new innovation or new production procedure is clearly unpredictable. Entrepreneurs are also unacquainted with the period of their risk-taking profit. Thus, Schumpeter had strengthened his refusal of the marginalism in explaining economic development and progress as these factors are incapable to clarify or accommodate the innovation process i. e. how many entrepreneurs can gain from an innovation (Arena, 2002). Entrepreneurship acts as a motivating force for economic development. Schumpeter stated that every person who carries out new inventions is an entrepreneur. We will write a custom essay sample on Relationship between Entrepreneurship, Innovation and Economic Development or any topic specifically for you Only $17.96 $11.86/page