Assignment Globalization and International Standards

Added on - 18 Sep 2019

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In the today’s world, an organisation running in a global platform needs to analyse itscost & benefit of its survival. Survival is the key & projecting in-depth research regardingkey resources devoted, human resource hired blending with operational, finance costs &projecting sales revenue or profits helps us in strategizing a company frame to expand(Purcell, 2007).In the modern context, globalization is integrating dometic company with an internationalstandards. Due to the bilateral trade agreements such as WTO and NAFTA cross-countrytrading, investments & balancing the barriers are possible . This helps in managing thesurging invstments globally & devising a plan to expand on a larger scale be it throughjoint ventures or by merging, acquiring etc. APAC region started making its parts &manufacturing in te western region to gain more acces to latest techonologies & Westerncountries penetrated into the Asian countries to gain access to skilled labour alng withcheap inputs (Ngo, 2008).Tariffs & migration of foreign workers & investment might hamper or result in the boomfor a country which can help in balancing it. But due to balancing countries do learntechonolgies, skills, people management & other important techiniques. Some of the risksdue to the globalisatin which can occur are-:A shifting risk profile-: Globalisation leads to the increased risks for e.g. unstableeconomies, fluctuations in interest and exchange rates etc. Frequently analysing theglobal risks & playing in an unexplored terrain can help a country to capture unleashedopportunities.Regulatory obstacles-:Legally changing hassles & barriers to penetarate in a country anorganisation needs to be adaptive. Devising a suitable contingency plans & making anorganisation to penetrate into market, they should explore all the major challenges. Fore.g. in certin countries legal can be quite strong which do not entertain monopoly or form1
a cartel. Hence a company blending into the new atmosphere must study well thetargeted country before setting up a plant.Cultural differences-:When trade opens up it results in the mixing of two economiesalong with two mindest people whoi come from the different relgion, background,culturally different. For example in certain countries womens are not encouaraged to domarket serices & only male is deployed. In such scenario, a company needs to beadapative in its approach & should integrate as per the country cultural. To cope, thecentral organization must be able to refine portfolio management and create aninfrastructure that maintains the diversity of international teams while also empoweringlocal delivery.Resource constraints-:Due to the high competion which comes in the market there can beshortages of resurces in the form of key people or inputs. To balance it oiut a companyshould always find out an alternative approach in finding new opportunities to streghthenit ties.Problem flexibility -:Exchanging resources & forecasting key requirements to beintegrated into the system needs to be identified & fixed. The alternatives or substitutesshould always be devised & formulated.EPPM Is Essential-:The senior management should be decisive & should be aggressivelyintelligent in approaching a new environment. It should be able to convince & convertbarriers into opportunities.History/IntroWe did in research over the BMW Group, a Germany Company which is governed byGerman Corporate Governance Code & it ethically follows §161 German StockCorporation Act to report once a year. BMW is a strong luxury brand car manufacturersworldwide. BMW premium luxury cars includes 3 series, the 5 series, the 7 series, the Z2
line ,X line, BMW’s “sport activity” ,Rovers, Land Rover .Rolls Royce vehicles etc.High branding & greath protmotional activiites has resulted in a strong image makeover.It has expanded in countries like U.S.A, India, Canada, Australia etc. Across globally,BMW knows its customer globally, bringing uniform services to many local admirers dueto stronger presence worldwide & structuring organization evenly. of BMWBMWAG was formed from the combination of three companies, Rapp Motorenwerkeand Bayerische Flugzeugwerke (BFw) in Bavaria, and Fahrzeugfabrik Eisenach inThuringia. Aircraft engine maker Rapp Motorenwerke became Bayerische Motorenwerkein 1916.BMW Group adheres to corporate governance in all countries it exists. For the interest ofshareholders, BMW Group follows an ambiguity reporting & it requires immensecoordination for a smooth cooperation between the Board of Management and theSupervisory Board. The underlying principle of BMW Group is based on transparency,trust & responsibility.When BMW expands globally , this will only result in generating more revenues, sales,profits & get fair visibility. Strong marketing campaigning, aggressive sales strategiesmore promotional activities has already made BMW a strong brand (Kirton, 2001).Hence when it plans to explore a new terrain whether in developed or developing countryit will be easy for a brand like BMW to identify & penetrate.Globalisation has its pros & cons, after analysing the risks factors if we mix it withcompany like BMW it will be able to convert barriers or risks into big investments &profitability.While expanding globally it has to balance all its pros & cons which BMW has been ableto control & sub dued some of the challenging factors which are-:Expanded Markets3
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