Unit 18: Global Business Environment Sample Assignment

ASSIGNMENT 2 FRONT SHEET
Qualification BTEC Level 5 HND Diploma in Business
Unit number and title Unit 18: Global Business Environment (530)
Submission date December 21, 2020 Date received (1 st submission)
Re-submission date Date received (2 nd submission)
Student name Vu Tran Minh Quang Student ID GBS190821
Class GBS0805_NX Assessor name Nguyen Ngoc Danh
Student declaration
I certify that the assignment submission is entirely my own work and I fully understand the consequences of plagiarism. I understand that
making a false declaration is a form of malpractice.
Student’s signature:
Grading grid
P3 P4 P5 P6 M3 M4 D2

 Summative Feedbacks: Resubmission Feedbacks:
Grade: Assessor Signature: Date:
Internal Verifier’s Comments:

I. Introduction:
This assignment will discuss about the 7S Model of McKinsey and continuo defining the globalization,
how it affects to Meiko company.
II. Main body:
1. Analyzing 7S according to the McKinsey model, how 5S analysis affects the structure and culture
of the business:
The 7S model specifies seven factors that are classified as “hard” and “soft” elements. Hard
elements are simply known and influenced by management, whereas soft elements are fuzzier, more
intangible, and influenced by company culture. The hard elements are include:
 Strategy: The strategy is the plan deployed by a company in order to stay competitive in its industry
and market. An ideal approach is to determine a long-term strategy that aligns with the opposite
components of the model and clearly communicates what the organization’s needs and goals are.
 Structure: The structure of the organization is formed from its company hierarchy, the chain of
command, and divisional makeup that outlines how the operations operate and interconnect. In
effect, it details the management configuration and responsibilities of employees.
 Systems: Systems of the corporate seek advice from the daily procedures, workflow, and selections
that compose the quality operations among the organization.

 Shared values: Shared value are the normally accepted standards and norms among the corporate
that each influence and temper the behavior of the complete employees and management. This
could be detailed in company pointers bestowed to the employees. In practice, shared values relate
to the particular accepted behavior among the workplace.
 Skills: Skills comprise the skills and capabilities of the organization’s employees and management,
which may verify the types of achievements and work the corporate can accomplish. There could
come back a time once an organization assesses its obtainable skills and decides it should build
changes in order to realize the goals set forth in its strategy.
 Style: Style speaks to the example and approach that management takes in leading the corporate,
additionally as how this influences performance, productivity, and company culture.
 Staff: Staff refers to the personnel of the corporate, however massive the workplace is, wherever
their motivations reside, additionally as how they’re trained and ready to accomplish the tasks set
before them.
For Meiko company:
McKinsey 7S model is applicable in a wide variety of situations wherever it’s helpful to know
however the varied elements of a corporation work along. It can be used as a tool to create selections on
future company strategy. The framework is used as a strategic coming up with tool by organizations to
indicate how ostensibly disparate aspects of a company are, in fact, reticulated and dependent upon
each other to attain overall success.
 Strategy is an action attempt to bring the success of the mission as mentioned . Take turns on

 -Group of social responsibility:
+ The waste treatment system with a capability of 800m3 / day designed to treat the wastes after
once every production method could be a obligatory policy of the Vietnamese government for the
corporate to guard the environment.
+Responsibility to the community: Regular payment regimes in line with Vietnam's labor law,
welfare and health insurance policies are enforced, employees have the chance to market with
meaningful works, …
 Human resources are principally focused in technology, advertising, and packaging stages, work is
always carried out for each stage. Workers of every stage must always complete the set "target"
within the time allowed. The management by volume brings high-efficiency jobs, however puts a lot
of pressure on the workers that the monthly leave is sort of high (6 ~ 8%). Whereas taking sick leave,
the staffing arrangement is very difficult. It takes time and money to train, but the company still has
to take risks when workers quit.
 System: Planning department: In the company, the planning department features a fairly broad
perform, production coming up with and output management, however conjointly orders are
created during this department ( materials used for production). Warehouse department: At the warehouse, the storage of the warehouse is allotted out in
separate areas, the finished product area and the raw material area at both ends of the factory.
Storage of finished merchandises for export. Such warehouse design it is quite scientific, the
management and export is straightforward through the warehouse management software.
Sometimes interrupted due to spatial separation. Production management department: Production at the company is a prime priority for any
producing company and Meiko Vietnam is no exception. Input solely raw materials, labor …

In the process of implementing the strategy, Meiko is not always advantageous but often faces many
challenges, possibly from outside and from within the company. This issue forces the strategic manager
to be able to analyze, anticipate challenges, and prepare solutions. Following are some of the basic
challenges encountered in implementing the strategy:
 Ineffective leadership happens once the manager fails to create a decent organizational structure in
the least levels, does not create the linkage and cooperation between individuals once operating
and resolution issues. Senior leaders sometimes underestimate the importance of middle
management but deal directly with junior employees, or exclusive senior management; causing a
lack of connection in the whole system, leading to conflicts and disputes between levels; creating
quite a distance between levels, top managers rarely spend time with subordinates discussing,
consulting, discussing implementation issues. Decisions are followed and implemented by
subordinates. This leads to disagreement among levels, even subordinate employees will show signs
of disagreement, disagreeing, resulting in an impact on the implementation of the overall strategy.
 Lack of resources: Most strategic implementation processes face the pressure of the time it takes to
execute and complete, often more than originally planned. In particular, when the jobs are arranged
according to their unreasonable priority, the lack of time becomes more and more serious, affecting
the work progress. In addition, the lack of skills and quality of the workforce participating in the
strategy implementation also has a significant negative impact. Human resources play a key role,
who are directly involved in working from the beginning to the end. If they do not have the quality
and ability to grasp the nature of the work they are responsible for, it will inevitably slow down the
progress, even damage their own work and that of the whole department or business. (Al-Ghamdi,
1998; Alexander, 1985).
 Communication, ineffective communication: communication, ineffective communication between
departments in Meiko, individuals taking in enforcement cause to the management and

With help from the board of directors, Meiko needed to find the effective organizational design it
wanted to achieve. By defining the desired association, Meiko is able to set her own goals and formulate
action plans much easier. This step is not as simple as identifying the 7 factors currently being arranged
in the organization for several reasons. Meiko first needs to find the best optimal association it is
currently unknown to, so it requires more than answering questions or gathering data. Second, there is
no predefined organizational pattern or design that Meiko can use and the company will have to do a lot
of research or benchmaking to find out how similar organizations are. deal with organizational changes
or which organization design they are using.
2. Definition of globalization in two aspects: ethical and sustainable. Propose policies for businesses
to implement globalization in the two above aspects.
Sustainable globalization represents a breakthrough and a fundamental transformation in how
people approach doing business in a global world in the 21st century. It shifts from a zero-sum, selfish,
win-lose approach to one that fully takes into account the short- and long-term impacts of people’s
actions on the larger ecosystem of which humans are a part recognize and values our use of precious
natural resources, demonstrates respect for all people on the planet, supports local communities in
creating the best possible future for themselves, and builds human, social, and financial capital at the
local, national, and global levels. Sustainable globalization is principle-centered, operating on
foundational values of service, collaboration, and the triple bottom line.
Although globalization means the global reach of modernization, it also implies a great ethical
challenge and a new moral predicament: whether living under the globalized conditions we can find new
ways to reforge the human unity and the solidarity of mankind. The article makes clear that the
continuing uncontrollability of the already global network of mutual dependence and 'mutually assured
vulnerability, which foster the "negative solidarity', do not increase the chance of such unity.

Meiko consider the implications of these activities for the environment, and emphasize the
importance of reducing their impact in terms of prevention of global warming, cyclical use of
resources and prevention of contaminating the ecosystem.
 To implement the Basic Environmental Policy, Meiko has established an ISO environmental
management system, and have appointed a person responsible for controlling the environmental
management system (EMS) at each plant in Japan and overseas. They also strive to protect the
environment through CO2 reduction and zero emissions activities, etc.
 This year, MEIKO Solar Park Fukushima for photovoltaic power generation was completed at the
Fukushima Factory, having started operations on June 10, 2015. This photovoltaic power generation
system consists of 9,772 solar panels set on the land of about 40,000 m2 within the premises of the
Fukushima Factory and generates 2,600 MWh a year, which is equivalent to the annual power
consumption of 720 typical households

new targets. Meiko will continue to improve production efficiency and conduct further energy-
saving initiatives to achieve steady reductions in per production volume.
In short, the company has made sure to create a good environment for employees, to ensure social
responsibility in accordance with the favorable social trend in producing products to foreign markets, is
now a civilized country (Japan).
3. Among the internationalization factors in lesson 1, choose the most important factor and analyze
it in depth .
In Meiko, Government Driver is the most important factor. Government globalization drivers—such
as the presence or absence of favorable trade policies, technical standards, policies and regulations, and
government-operated or subsidized competitors or customers—affect all other elements of a global
strategy and are therefore important in shaping the global competitive environment in industry. In the
past, multinationals almost exclusively relied on governments to negotiate the rules of global
competition.
Meiko Electronics Vietnam Co., Ltd., awarded the investment certificate in Thach That Industrial Park,
Hanoi, signed an agreement to invest in building an electronics factory in Ha Tay with a total investment
of 300 million USD. Implementation of Circular No. 490/1998 TT - BKHCN & MT of the Ministry of Science,
Technology and Environment, issued on April 29, 1998 on guiding the preparation and appraisal of
reports on registration of meeting environmental standards for projects
Pursuant to the 1996 Law on Foreign Investment in Vietnam, the 2000 Law Amending and
Supplementing a Number of Articles of the Law on Foreign Investment in Vietnam and Decree No.
24/200 / ND-CP dated July 31, 2000 government's detailed regulations on foreign investment law

Pursuant to the Prime Minister's Decision No. 870 / TTG of November 18, 1996, defining the
functions, tasks, powers, and organizational structure of the Vietnam-Japan Industrial Park Management
Board; Pursuant to the Minister of Planning and Investment's Decision No. 67 / BKH-KCN of March 17,
1997, on authorizing the Vietnam-Japan Industrial Park Management Board to appraise and grant
investment licenses to foreign investment projects.
4. Use the strategy diamond pattern:
Hambrick and Frederickson (2001) define strategy as a central, integrated, externally oriented
concept of how the organization will achieve its objectives. The mission of the organization may be
aspirational but should try to reflect the fundamental purpose of the organization. As an organization
moves towards goals and objectives it needs to be more precise and should have targets in mind. The
output of strategic analysis should help to articulate the kind of decisions that need to be made in
deciding on the various elements of strategy. Only when these choices have been made and the
organization has a strong idea of how it will achieve its goals and objectives it should start to
substantially develop the supporting organizational arrangements for implementation such as structure,
processes, people, and internal policies.
 Areas. Where will we be active?
Arenas are areas in which a firm will be active. Decisions about a firm’s arenas may encompass its
products, services, distribution channels, market segments, geographic areas, technologies, and even
stages of the value-creation process. Unlike vision statements, which tend to be fairly general, the
identification of arenas must be very specific. It clearly tells managers what the firm should and should
not do. In addition, because firms can contract with outside parties for everything from employees to
manufacturing services, the choice of arenas can be fairly narrowly defined for some firms. Hambrick and

dormitory for employees. Meiko is located at Meiko sells its electrical products through big-box retail
outlets and independent dealers, as well as through independent agents in foreign markets. In addition
to these arena choices, Meiko has entirely outsourced the production of its products to Asian
manufacturers ( Vietnam). This is important in the sense that the strategy diamond also helps the firm be
precise in regard to which activities it will engage itself and which ones it will outsource and where. As
you know, Asia happens to be a low-cost source of high-quality manufactured goods. In outsourcing
shoes and apparel lines, Nike follows a similar strategy in terms of arenas. One key difference, however,
is that Nike, through its Nike Town retail outlets, has also chosen a direct retail presence in addition to its
use of traditional retail distribution channels.
 Vehicles. How do we get there?
The question of “how do we get there?” can be broken down to other questions regarding internal
development, Joint Ventures, licensing/franchising, and acquisitions/outsourcing. Many companies may
design their own products but get other companies to manufacture them. Decisions have to be made
whether to go into a joint venture with someone who has skills, capacity, or capital available that an
organization doesn’t. Failure to say how an organization is going to get where they want to get can result
in delay, and unnecessary cost, or even failure. Meiko has opened a new electronics factory and grown
organically—meaning that it developed factoryy internally as opposed to acquiring stores already based
in the countries it wanted to enter.
 Differentiators. How do we compete or win?
Differentiators are features and attributes of a company’s product or service that help it beat its
competitors in the marketplace. Firms can be successful in the marketplace along with a number of
common dimensions, including image, customization, technical superiority, price, quality, and reliability.
Meiko has done very well by providing effective combinations of differentiators. They sell inexpensive

of it is practical—leading-edge technologies cost money to develop and command higher prices because
of their uniqueness or quality.
 Staging and pacing. What will be the speed and sequence of initiatives?
Staging and pacing refer to the timing and speed, or pace, of strategic moves. Staging choices
typically reflect available resources, including cash, human capital, and knowledge. Staging decisions
should be driven by several factors—resources, urgency, credibility, and the need for early wins. Because
few firms have the resources to do everything they’d like to do immediately, they usually have to match
opportunities with available resources. In addition, not all opportunities to enter new arenas are
permanent; some have only brief windows. In such cases, early wins and the credibility of certain key
stakeholders may be necessary to implement a strategy.
At what point, for example, should Meiko have added international markets to its strategy? Perhaps
if the company had pursued global opportunities earlier, it would have been able to develop a better
sense of foreign market conditions and even spread the cost of entry over a longer period of time.
However, by delaying its international moves, the company was able to focus on the strongly developed
on the Japan market.
 Economic logic. How will we obtain our returns?
The economic logic element reflects how all the pieces tie together in a way that satisfies key
stakeholders. In the private sector, this element of the model essentially refers to the business model,
how profits are made. One type of business model might use economies of scale, scope, and replication.

 Meiko always has high responsibility and is cautious in performing important stages in the contract
such as quality inspection, on-board delivery, customs clearance, ... to ensure good performance of
the contract, from that, enhances the company's reputation.
5. Identify the barriers businesses face when entering the Vietnamese market:
 The barriers to the Meiko company are as follows: Rising labor costs; The legal system is incomplete,
the application of the law is not clear; Complicated tax mechanisms and procedures; Difficult to
source raw materials and components in the host country; Language barriers.
 52.5% of Japanese enterprises in Vietnam said that up to now, labor costs in Vietnam are still
relatively cheap, just behind Bangladesh, the Philippines, Laos, and Pakistan. But this kind of cost is
increasing.
 In 2016, only 58.5% of businesses worried about it, but in 2017 this number had increased to 61.6%.
Vietnamese employees constantly ask for higher salaries and a high job-hopping rate, so the quality
of staff has declined.
 To overcome this problem, Japanese businesses want to produce products with high added value,
but they cannot because it is difficult to manage the quality and difficult to source materials on the
spot.
 Export: The export turnover in the years was lower than the import turnover, still faced with

 Regarding finance: The company's capital for export activities is relatively limited, making the
process of implementing export contracts still quite passive.
 About competitors: Compete in the big market.
The reasons for these limitations are:
 The company has not been proactive in preparing export goods. Import and export staff lack
professional skills in implementing import and export contracts.
 The lack of synchronization in the policies, laws, regulations and regulations of the State on the
management of import and export business activities causes difficulties.
 Exchange rate fluctuations continuously affect the company's payment to foreign customers when
the currency continuously depreciates, the company has to pay large amounts of money.
Reference:
Meiko-elec.com. 2015. [online] Available at: <https://www.meiko-

meiko/?fbclid=IwAR32Nok5_o8isyye3peo6Mb_v1B17VEa_RLWp5k_w_7HRqIRJn-bUO8xjc8> [Accessed
21 December 2020].
123doc.net. n.d. Báo Cáo Thực Tập Khoa Kinh Doanh Qu ốc Tế Tại Công Ty TNHH Điện Tử MEIKO Việt
Nam. [online] Available at: <https://123doc.net/document/6173150-bao-cao-thuc-tap-khoa-kinh-doanh-
quoc-te-tai-cong-ty-tnhh-dien-tu-meiko-viet-
nam.htm?fbclid=IwAR0XBIwF9_NClMgtiVnlkmnjIec2kjLJlkcI1mvob9ayP1k7itO6f_3RWF8> [Accessed 21
December 2020].
World Bank. 2020. Một Quá Trình To àn C ầu H óa B ền V ững Cho M ọi Người. [online] Available at:
<https://www.worldbank.org/vi/news/speech/2007/10/10/an-inclusive-sustainable-
globalization?fbclid=IwAR0nzZ39hK_gxsggb5y9BKFI_LNeaW-ZpeYIDDBWyA3qDpha18yNkoPTdTY>
[Accessed 21 December 2020].
vietnambiz. 2020. Mô Hình 7S C ủa Mckinsey (Mckinsey 7S Model) Là Gì?. [online] Available at:
<https://vietnambiz.vn/mo-hinh-7s-cua-mckinsey-mckinsey-7s-model-la-gi-20191220170711453.htm>
[Accessed 21 December 2020].