Understanding Global Business and Local Perspectives: A Case Study of DynCorp International

This research aims to understand various aspects of global business and the local perspectives that shape a better business environment. The case study focuses on DynCorp International, an American global service provider company, and its operations in countries like Bolivia, Bosnia, and Somalia. The study analyzes the foundations of global business, the global business environment, and the global business strategy and organization of DynCorp. It also discusses the management of global business and the challenges faced by DynCorp in managing its workforce and business orientation.

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Introduction
The aims of this research is to understand various aspects of the global business and the
local perspectives that shapes a better business environment. In this context, choosing DynCorp
International is significantly resembled with the global business practice in present case
scenario. In this regard, there are objectivity of the organisation is also pertinent in course of
discussing the role of a corporate organisation in global business scenario. DynCorp
International is an American global service provider company that mainly provides aviation
services to the global customers (Dyn-intl.com, 2019). Furthermore, the corporation recently
comes up with other services like flight operations support, training and monitoring, international
development, intelligence training and contingency operations. The Headquarter is in Virginia
with a huge range of countries where DynCorp International is operated successfully. Countries
like Bolivia, Bosnia and Somalia are the main clients to get services from DynCorp
International. As a matter of fact, the US military force is also one of the major clients of
DynCorp International. Therefore, it is obvious for the organisation to inculcate a wide
knowledge regarding the cultural diversities, political-social-economic scenario at the initial
phase and carried out further investigation into the commercial exposure of those client countries
in the global business platform.
Foundations of Global Business
This section deals with the business activities of DynCorp International in countries like
Bolivia, Bosnia and Somalia. In this regard, it is essential for the DynCorp to evaluate the scope
of global business in those countries. Therefore, it is important to analyse the link between those
countries with the international economic institutions such as IMF, WTO and World Bank. As

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far as Bosnia is concerned, the country has an active membership at World Bank. Bolivia is also
identified as an active member of the World Bank. Moreover, the World Trade Organisation
(WTO) and the United Nations Conference on Trade and Development (UNCTAD) manage to
formulate a trade policy for Bolivia in order to develop the economy as per global basis
(Agrawal, 2015). It is associated with the international standardisation of tariffs and taxation that
Bolivia is supposed to follow. Besides this, currently IMF has released the second and final
review under the staff monitored program in Somalia for the economic development of the
country. In this regard, financial assistance to Somalia is amounted at SDR 44.20 million for the
economic and financial development within the country (Nölke, ten Brink,, Claar & May, 2015).
As a matter of fact, the political mind-set of those countries are also essential for
DynCorp to make a business deal with those companies. Open forums and healthy discussion
with the neighbouring countries is also an essential part towards developing a stable in
international business relationship. According to State.gov (2019) it also helps a country to build
up potentially effective business environment and increase the foreign direct investment for
economic benefits. In addition to this, the judicial system also provides further assistance to
government intentions in terms of enacting and monitoring business regulations positively. For
an instance, in Bolivia an investment promotion law was enacted in 2014 that entitles to
guarantees the interests of both the domestic and international business firms (Wto.org, 2019). In
case of Bosnia, the potential market opportunity of the country drives America to invest 336.9
million in goods in 2017 (Ahi, Baronchelli, Kuivalainen & Piantoni, 2017). Moreover, Somalia
also witnesses good amount of business with the help of strong judicial existence within the
country. For example, Somalia follows the European Union policies and agenda with a prolong
fiscal and debt policy that helps the country to develop its global business orientation gradually.

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Global Business Environment
Cultural environment
In the cultural environment, Bosnia shares a high power distance with a collectivist
culture that is helpful for the country to bring efficacy into the business environment. Despite of
having a patriarchal society, women in the country are also considered to be a driving force of
change. Religious mind-set with a traditional perception is also a significant feature for the
country and it can be seen in order to making decisions. On the other hand, the power distance
index in Bolivia is moderate that creates moderate development in the economy as well.
Furthermore, collectivist notion is existed in the country effectively in reference to a masculine
culture where the values independence, competitiveness, differential rewards and high
assertiveness are the main facets. In fact, strict laws and rules are also an intricate part of the
Bolivian society the measures the uncertainty avoidance (Hollender, Zapkau & Schwens, 2017).
Furthermore, in case of Somalia the power distance index connotes that the country is willing to
make progress in the economic development with the help of the collectivist approach where the
society intends to perform on the basis of the family oriented activities. In addition to this, the
understanding of uncertainty avoidance proves that the people are highly religious but always
appreciable towards any positive change. Therefore, the impact of globalisation can have a direct
impact on Somalia.
Legal environment
The legal environment is also a significant element in order to establish business
positively. In this regard, the regulatory framework of Somalia paves the way for a freedom in
business with a value of 31.7 (Klingebiel & Joseph, 2016). However, lack of judicial

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effectiveness perturbs the ethical and equal business opportunity in the global market.
Nevertheless, labour freedom and monetary freedom are prevalent in the country which is
beneficial for global business openings.
In the context of Bosnia, the regulatory efficiency creates better opportunity for the
country to develop the business market on the basis of the global dimension. Therefore, the
country provides a business freedom of 49.7 with enough monetary freedom for the business
organisations with a rate of 83.1 (Surdu, Mellahi, Glaister & Nardella, 2018). Due to the
flexibility of the regulation and judicial proceedings it becomes effective for Bosnia to shape the
market extensively.
Bolivia is still in a nutshell to establish global business market. Due to the shortage of
business freedom with limited monetary flexibility it becomes a problem for Bolivia to create
global business exposure for international business organisations. However, the trade freedom
and monetary freedom within the country is highly effective for global business environment and
in this regard the role of the judicial interference plays a significant role.
Political environment
As far as the political stability index in Bolivia is concerned, the average value is -0.47 in
compare to Bosnia where the political stability index is -0.46 and Somalia enjoys -2.69. It proves
that the role of the political stability in Bosnia and Bolivia are way better than Somalia. Besides
this, in the context of the transparency index it is essential to evaluate the Corruption perception
value. In response to this, Bosnia scores 34, Bolivia 28 points and Somalia results 11 points
(theglobaleconomy.com., 2019). As a result of that it can be stated that the Somalia gets a
friendly environment in order to attract global business companies.

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Global Business Strategy and Organization
In order to enter into the markets of Bosnia, Bolivia and Somalia, DynCorp tries to take
several initiatives. First of all for safeguarding the business practice of the company in overseas
domain, DynCorp has purchase insurance from the US Overseas Private Insurance Corporation
(OPIC). According to Williams and Vrabie (2018) it is always of high risk for the multinational
organisations to enter into the developing country market. The economic and regulatory barriers
create huge obstacles for the companies that they are not used to in their home country developed
economy. As a result of that it is important for the business organisation to seek help of the
insurance companies to ensure its business profitability even in loss. In addition to this, Nölke,
ten Brink, Claar and May (2015) advocated that the intellectual property rights are also played
significant role in order to establish a healthy business environment within the developing
country market. Due to having limited knowledge of the new market, it is always seemed to be a
potential threat for the business organisations to enter into the new market without protecting the
patents. Henceforth, it is pertinent for DynCorp to follow the intellectual property protection
procedures.
Based on this, DynCorp puts more emphasis on the risk-return trade-off strategy to enter
into the new market of Bosnia, Bolivia and Somalia. Moreover, DynCorp puts a grave concern
over its long run high return. If possible then considering the short run low return is also an
important aspect of the business risk management strategy of DynCorp. Therefore, the
Greenfield investment strategy is identified as the most suitable measure for the organisation to
encapsulate the market rigorously. As per the Greenfield investment strategy is concerned,

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DynCorp takes more emphasis on the commitment and involvement of the company in order to
set up an ethical and professional business attitude with the respective countries. In fact, Stat-
usa.gov (2019) argued that the Greenfield investment entry method can bring higher return for
DynCorp. Therefore, it will be effective for the aims of the company. In this context, the exit
strategy is also pertinent for DynCorp in order to secure its profitability and reduce risks. The
liquidation strategy is highly effective in this regard that create a better opportunity for DynCorp
can decrease the price points of properties if the company will face huge loss in the new market.
Besides planning strategies for new market penetration and exit, DynCorp also set up an
effective measure by introducing the corporate sustainability framework as a strategic approach.
In this context, procuring corporate mission statement and incorporation of the stakeholders can
provide the corporation strategic advantage in the new market. The organisational structure is
also play a crucial role where DynCorp practices a hierarchical structure encompassing a broad
range of employees from low-level workers to mid-managers and top management. Nonetheless,
a matrix organisational structure will help the organisation to establish business effectively in
new markets.
Managing Global Business
There are two parts in the global business management of DynCorp. The first part is
associated with managing the workforce and the second part is resembled with the business
orientation. The employees working in DynCorp do not have the right to participate in the labour
unions or seeking any collective bargain agreements. One of the major reasons behind such a
restriction on employee activities can be identified as the global business dynamics of the
company. DynCorp is highly concerned about its power to indulge and influence the respective

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national governments so that privacy in the organisation is considered to be one of the major
aspect for the organisation. Furthermore, the firm is also looking for expatriates with the help of
different human resource agencies and renowned institutions in order to maintain the talent
management. In fact, to maintain a diverse workforce the organisation also provides training
facilities (Williams & Vrabie, 2018). In this regard, it can be argued that for a strategic
advantage in the global market, DynCorp introduces internet as a valuable resource to the
company. Internet is used generally for video conferencing and training purposes. Moreover,
collecting data and methods of training are also part of using internet. Promotions are also
identified as an important aspect for DynCorp.
Due to the extensive services, it becomes an important aspect for DynCorp to set a
distribution channel in the international market. Therefore, the company follows the dual
distribution strategy with the purpose to meet up needs of different clients. Furthermore, the wide
infrastructure and knowledge of DynCorp facilitates outsourcing of its products or services with
real world experience and intelligent innovations. Therefore, huge list of products and services
such as aviation, logistic, training and transportation are also an important facet for the
organisation.
Conclusion
Based on the above discussion, it can be stated that DynCorp tries to follow an extensive
set up that incorporates not only the business strategy of the firm but it also puts some focus on
the employee management plan on the basis of the global business perspectives. In addition to
this, the perception of the national market scenario and its global exposure also considered to be
effective enough for DynCorp in order to continue its internalisation of business. Therefore, it

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can be argued that the study rightly understanding the best possible aspects of DynCorp to
highlight the global business perspective.

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