Business Organisations in a Global Context Unit 5

Diploma in Management - 5.2. Business Organisations in a Global Context

Business Organisations

in a Global Context

Unit 5.2

Simona Chilba

Evaluate the strategies employed by organisations operating globally

Section 1.3 of Unit 5.2

Your Learning Outcome:

Understand the key differences between global

business operations

Agenda for Section 1.3 of Unit 5.2

Human resources policy

Environmental strategy

Equal opportunities policy

Ethics policy

Agenda for Section 1.3 of Unit 5.2

Financial plan

International partnering policy

Electronic modes of marketing and

communication

Reliable import and export processes

Represents a total of formal rules and guidelines put together in place to hire, train, assess, and reward the members of their workforce

Solves any misunderstandings between employees and employers about their rights and obligations in the business place

Is a part of an employment contract between the employee and the company

Is used to establish clear performance expectations for each employee

Issues it covers:

Equal Employment Opportunity

Employee classifications

Workdays, paydays, and pay advances

Overtime compensation

Meal periods and break periods

Payroll deductions

Issues it covers:

Vacation policies

Holidays

Sick days and personal leave

Performance evaluations and salary increases

Performance improvement

Termination policies 8

Other issues to be addressed:

Medical/dental benefits provided to employees;

Use of company equipment/resources (access to Internet, personal use of telephones, etc.);

Sexual harassment;

Substance abuse and/or drug testing; smoking;

Pension and retirement plans;

Reimbursement of employee expenses (for traveling expenses and other expenses associated with conducting company business);

Child or elder care;

Grievance procedures;

Employee privacy;

Dress codes etc.

It became a necessity as a result of

population growth, economic development

and rapid urbanisation

Set of rules:

Watch closely the global environmental trends and modify the company’s plans accordingly

Minimise environmental impact through improved design of products and processes

Adopt a pro-active approach to ecological challenges

Set of rules:

Take advantage of eco-friendly technologies

Reduce costs through energy and resources

conservation

Recycle and manage the waste

Is a stipulation that all people should be treated similarly, unhampered by artificial barriers, prejudices or preferences

Should state that:

Is committed not only to its legal obligations, but also to the positive promotion of equality of opportunity in all aspects of employment

The application of recruitment, training, and promotion policies to all individuals will be on the basis of job requirements and the individual's ability and merits

Should state that:

No job applicant or employee receives less favourable treatment on the grounds of sex, race, marital status, disability, age, part-time or fixed term contract status, sexual orientation or religion, or is disadvantaged by conditions or requirements that cannot be shown to be justifiable

Should state that:

Will not discriminate on the basis of sex, race, marital status, disability, age, part-time or fixed term contract status, sexual orientation or religion in the allocation of duties between employees employed at any level with comparable job descriptions

The key principles:

Provide equality for all

Promote an inclusive culture

Respect and value differences of everyone

Prevent discrimination, harassment and victimisation

Promote and foster good relations across the workforce and with partner

Types of unlawful discrimination:

Direct discrimination

Occupational Requirement

Indirect discrimination

Associative discrimination

Perceptive discrimination

Discrimination arising from disability

Harassment

Victimisation

Reasonable Adjustments

Case Study

Nuclear Holocaust

Ethics policy

It represents a written set of guidelines issued by an organization to its workers and management to help them conduct their actions in accordance with its primary values and ethical standards

Ethics policy

The content should specify:

An introduction or preamble

Statement of purposes and values

Specific rules of conduct which may be subdivided in various ways

Implementation of the code, which will define administrative processes, reporting, and sanctions

Ethics policy

Basic elements that will appear in about any code of ethics:

Employees’ interaction during working hours

Confidentiality

Employees’ interaction with suppliers and customers

Possible conflicts of interest

Ethics policy

Case Study

What is ethical?

Financial plan

Is an estimate of the total capital requirements for the company’s future plans

Financial plan

It has 3 major components:

Financial Resources (FR)

Financial Tools (FT)

Financial Goals (FG)

Financial Planning: FR + FT = FG

Financial plan

Helps businesses to:

Manage income more efficiently

Increase cash flow and monitor spending habits and expenses

Build a long term capital-base

Identify investment opportunities

Get a whole new approach to budgeting

Financial plan

Types:

Short-term financial plan

Medium-term financial plan

Long-term financial plan

Describes a long term win-win relationship based on mutual trust and teamwork and on sharing risks and rewards

In an international partnership, two or more

parties might create different legal entities

that they co-own, such as:

An equity joint venture

A cooperative joint venture

Key factors:

Understanding

No time pressure

Good connection

Creation of trust and goodwill

Key factors:

Ability to meet performance expectations

Clear goals

Partner compatibility

Commitment to long term relationship

Advantages

get instant market access, or at least speed their entry into a new market

to exploit new opportunities

to increase their sales

to gain new skills and technology

to develop new products at a profit

Disadvantages

weaker management involvement or less equity stake

fear of market insulation due to local partner's presence

less efficient communication

Advantages

to share fixed costs and resources

to enlarge their distribution channels

to broaden their business and political contact base

to gain greater knowledge of international customs and culture

to enhance their image in a global market

Disadvantages

poor resource allocation

difficult to keep objectives on target in time

loss of control over such important issues as product quality, operating costs, employees

Coke versus Pepsi

https://www.youtube.com/watch?v=qy4_XKYo0rQ

PESTEL analysis

Electronic modes of marketing and communication

Refers to the application of marketing and communication principles through electronic media, especially the Internet

Some of them are:

Mobile Devices

Social Networking Media

Benefits:

Interactivity

Immediacy

Demographics and targeting

Adaptability 43

Exports and imports are helping the national economies grow and expand on the global market

There are three types of business processes:

Management processes

Operational processes

Supporting processes

Main characteristics:

Definability

Customer

Value-adding

Belongingness

Cross-functionality

There are two ways of importing and

exporting goods and services:

Directly

Indirectly

Reliability and trust in a business relationship

are vital to conduct it in a proper manner

It is a great determinant of success, more

than anything else, including content

excellence

Content Excellence

https://www.youtube.com/watch?v=nY_VIo5nVXM

Methods to determine and improve reliable

business processes:

The Trust Equation

The Trust Creation Process

The Trust Principles

The Trust Equation

The Trust Creation Process

Engage the client in an open discussion about his key issues

Listen to what is important and real to the client

Find out what the real root issue is

Clarify benefits

Show commitment to take actions

The Trust Principles

A focus on the other

A collaborative approach to relationships

A medium to long term relationship perspective, not a short-term transactional focus

A habit of being transparent in all business processes

tutor@mbs.edu.mt

Business Organisations in a Global Context Unit 5

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