Question

Managing Global Systems topic highlights the many challenges faced by enterprises as they attempt to manage their globally dispersed information systems. The growth of international trade has ushered in many new business models for corporations seeking to compete in these markets. For instance, a Volkswagen car that is built in Germany may have an engine assembled in Hungary and a transmission assembled in Japan. We are entering into an age of complex business interdependencies that span across a global scale. In order for companies to compete and manage the many challenges and opportunities offered by "going global," they need to deploy efficient and scalable information systems. By doing a search of the internet, or by other research methods, find an example of an organization that made a decision to compete on a global scale. (1) Why did this organization decide to compete on a global scale? What were the business drivers? Who are some of the other competitors in these markets? (2) How did they use technology to support their business strategy? What if any new business models did this organization adopt? (3) Describe some of the business and technology challenges posed by operating in these markets and how the organization managed through these challenges. (4) What new opportunities were presented by the organization's deployment of technology? In your estimation, is this company successfully competing in these markets?

Answer 1

(1).Answer

This organization decide to compete on a global scale because of the following reasons :-

1) Be ready to change and innovate

Competing on a global scale means staying on your toes. With increased competition, we have to look for ways to differentiate our products and services. The good news is that tough competition is one of the best motivations to innovate. When companies from around the world are competing in your market, you’re challenged to look for ways to improve your product and processes. Innovation is clearly a positive effect of competition, allowing us to produce more and offer lower prices.

2) Get the right people in place

The workforce of today looks quite different than the workforce of yesterday. Today’s leaders are characterized by agility, language and cultural proficiency, and the ability to function across multiple product lines, markets and national boundaries.

3) Level the playing field

  In order to compete effectively in the global economy, we need a level playing field, with the same access to foreign markets that other countries have here. To do this, the United States not only needs to become a more active participant in the global economy—we also need to play a real leadership role in championing the expansion of trade agreements and foreign investment.

#Business Drivers

Business drivers are the key inputs and activities that drive the operational and financial results of a business.

  Here is a list of common business drivers:-

1. Number of stores or locations

2. Average size (i.e. square feet) per location

3. Number of products sold (volume)

4. Prices of products/services sold

5. Number of salespeople

6. Effectiveness of salespeople

7. Traffic volume to a website

8. Conversion rate of traffic to a website

9. Production rate for manufacturing

# Competitors in these markets

All businesses face competition. Even if you're the only restaurant in town you must compete with cinemas, bars and other businesses where your customers will spend their money instead of with you. With increased use of the Internet to buy goods and services and to find places to go, you are no longer just competing with your immediate neighbours. Indeed, you could find yourself competing with businesses from other countries.Your competitor could be a new business offering a substitute or similar product that makes your own redundant.

(2) Answer

THE ADVANTAGES OF PLANNING FOR TECHNOLOGY :-

1. Increased Output – Better output might mean better sales. Better sales will likely result in many great outcomes. Everything is connected together from the efforts of the employees to customer satisfaction. With managed services, both business owners as well as the employees can work efficiently knowing there is a lifeline to help them be productive at any time.

2. Increased Profitability – A company that achieves efficient work has a good chance at earning more profit. An increase in profitability can be directly connected to how employees work together for the common good. From top-level plans to the day-to-day execution, every step can slow down with poor technology, or poor technology services.

3. Improved Security – Security is a top-level concern for any business owner, and it very well should be. The lack of security can kill just about any strategic initiative in many ways. Making sure that a business’ systems are not just optimized but secure, will allow everyone to focus on what they do best.

4. Increased Teamwork – Internet-based communication and collaboration platforms are now one of the most preferred types of systems for working together. They let employees communicate and share information easily, wherever they are. While technology is not an end-all solution for poor teamwork, it can facilitate the communication, sharing of information, and accountability for team projects.

(3) Answer

Some of the business and technology challenges :-

1. Ethical Business Practices: Arguably the most substantial of the challenges faced by MNCs, ethical business practices in areas such as labor, product safety, environmental stewardship, corruption, and regulatory compliance have historically played a dramatic role in the success or failure of global players. For example, Nike’s brand image was hugely damaged by reports that it utilized sweatshops and low-wage workers in developing countries. In some nations, particularly those without a strong rule of law, bribing public officials (e.g., paying them off with gifts or money) is relatively common by those seeking favorable business terms. Although national and international laws exist to crack down on bribery and corruption, some businesspeople and organizations are pressured to go along with locally accepted practices. Maintaining the highest ethical standards while operating in any nation is an important consideration for all MNCs.

2. Organizational Structure: Another significant hurdle is the ability to efficiently and effectively incorporate new regions within the value chain and corporate structure. International expansion requires enormous capital investments in many cases, along with the development of a specific strategic business unit (SBU) in order to manage these accounts and operations. Finding a way to capture value despite this fixed organizational investment is an important initiative for global corporations.

3. Public Relations: Public image and branding are critical components of most businesses. Building this public relations potential in a new geographic region is an enormous challenge, both in effectively localizing the message and in the capital expenditures necessary to create momentum.

4. Leadership: It can be difficult for businesses to find effective organizational leadership with the appropriate knowledge and skills to approach a given geographic market successfully. For every geography worldwide, unique sets of strategies and approaches apply to language, culture, business networks, management style, and so forth. Attracting talented managers with high intercultural competence is a critical step in developing an effective global strategy.

5. Legal and Regulatory Structure: Every nation has unique laws and regulations governing business. MNCs need access to legal expertise to help them understand in-country laws and comply with applicable regulations. It is important for businesses to understand the legal and regulatory climate for their industry and type of organization before entering a new market, so that this information can be factored into the business case and strategic decisions about where and how to expand globally, as well as strategic and operational planning to ensure profitability.

# The organization managed through these challenges by doing following things :-

1. Workforce Productivity

2. Reducing Operational Costs

3. Increasing Profitability

4. Improving Quality of Products and Processes

5. Increasing Business Growth

6. Managing Uncertainty

7. Attracting and Retaining New Customers

(4) Answer

Opportunities were presented by the organization's deployment of technology by following ways :-

1. Align technology and strategy

Specific technology is often implemented because of the vendor and name recognition (i.e. SAP, Epic, Oracle), and not because it is necessarily the best solution to meet business needs, or achieve strategic goals. When choosing which technology to implement for your business, don’t just weigh the name of the vendor and the price. Take a look at your strategy. Think about how new technology will help you achieve your strategic goals.

2. Communicate for buy-in and engagement

Achieving user adoption for new technology requires communicating with stakeholders early and often. Before you can communicate with stakeholders you need to have all your stakeholder groups identified. The way each currently performs their work, processes, should be documented. The impacts the new technology will have on them needs to be identified and communicated. Ways in which your organization will mitigate any negative impacts for stakeholders also needs to be communicated.

3. Perform a current systems analysis

Technology upgrades or introducing new technologies carries a huge compatibility risk – what if the new systems turn out not to be compatible with those you already have or integration requires more build time than was anticipated. To prevent system integration issues, make sure you review all your current technology systems thoroughly before you consider deploying something new. Don’t just conduct detailed requirements gathering for the new technology, make sure the functionality of your current systems can support and integrate effectively with your new technology. Performing this work upfront will prevent system redundancies, reduce costly build times, and help the budget from ballooning.

#Yes, this company successfully competing in these markets.