Organizational Culture, Ethics, and Economics in Business

This assignment solution comprehensively addresses key aspects of business development. It begins with an analysis of organizational culture and structure, exploring Hofstede's dimensions, GLOBE dimensions, cultural webs, and talent management. The solution then delves into organizational motivation, examining the gig economy's impact and the application of motivational theories like Maslow's Hierarchy and Vroom's Expectancy Theory. Furthermore, it covers macroeconomic and microeconomic issues, value chain concepts, and integrated supply chains. The assignment also addresses business ethics and corporate governance, defining business ethics, corporate social responsibility, and the shift towards stakeholder focus. Finally, it touches upon business information systems and accounting regulations. The solution provides detailed explanations, including the strategic marketing issues involved in international trade, market entry strategies, and the roles within the supply chain.

Questions

Table of Contents
SECTION A- Organisational culture and structure.........................................................................3
a) Hofstede's Dimension of culture and GLOBE dimensions of societal cultural variation.......3
b) Cultural web and talent management......................................................................................3
SECTION B- Organisation Motivation...........................................................................................4
a) Gig economy in terms of work and organisation along with their positive and negative
effects...........................................................................................................................................4
b) Motivational theories and their implication in the organisation..............................................5
SECTION C- Economics and supply chain.....................................................................................6
a) Issues which macro and micro economics deals with.............................................................6
b) Concept of value chain and integrated supply chain...............................................................6
SECTION D- Business ethics and corporate governance...............................................................7
a) Meaning of business ethics and corporate social responsibility..............................................7
b) Shift in focus to the stakeholders and of shareholders to the multinational enterprises.........8
SECTION E- Business Information system, accounting regulation and taxation...........................8
a) Management information system............................................................................................8
b) Concept of GAAP...................................................................................................................9
Question A.....................................................................................................................................10
Explanation of various terms.....................................................................................................10
Question B.....................................................................................................................................10
Strategic Marketing Issues Involved in international trade and SWOT of international
marketing...................................................................................................................................10
Question C.....................................................................................................................................11
a) Direct and Indirect Export and market entry strategies.........................................................11
b) Role of Freight Forwarder and carrier's liability...................................................................11
REFERENCES................................................................................................................................1

SECTION A- Organisational culture and structure
a) Hofstede's Dimension of culture and GLOBE dimensions of societal cultural variation
Hofstede's Dimension of culture: It is framework which is used for the cross cultural
communication. With the help of this theory the impact of the culture of the society on the values
of the people can be analysed as this guides their behaviour. The employers and the managers
considers various dimensions which can define the culture in the organisation and their impact
on the organisation can be identified which can either be low or high. Various dimensions
includes power distance, collectivism or individualism, femininity vs. masculinity etc. in which
higher influence reflects that their exist individualism, power is important while low dimension
reflects the collectivism, nurture importance. With the help of this the managers can formulate
the strategies for managing the employees at internal level as this brings in the diversity while
the employees can prepare themselves to accommodate in that culture (Beugelsdijk, Maseland
and Van Hoorn, 2015).
GLOBE dimensions of societal cultural variation: The culture in the society vary in
location and among the people due to which it has to be managed effectively. The GLOBE
dimension (Global Leadership and organisational behaviour effectiveness) helps in managing the
cross cultural diversity as it aims to understand the attitude and the perception of the individual.
With the help of this the managers and the employees can effectively manages the diversity
which increases with expansion of the organisation at international level. The leadership
motivates the employees to the adopt the culture by learning various aspects related to the
organisation, by understanding and making the culture comfortable.
b) Cultural web and talent management
The Cultural web is referred to as a tools with which the culture of an organisation can
be mapped and the factors which can influence the culture of the organisation can also be
analysed and understood. With the help of this tool the future aspects which need to introduced
in the culture of the organisation can be determined. This answers the question of how the
culture need to look like on the basis of which the changes are made by the managers.
Talent management is a science which is associated with the strategic planning of the
human resources of the organisation. This helps them to enhance the values of the business by
retaining the workforce and making them effective for achieving the goals and objective (Ma and

Hipel, 2016). The activities which are included in this are recruiting, training and developing the
employees etc.
The culture of the organisation has impact on the strategies and the policies which has
been adopted by them for talent management as the culture has direct influence on the behaviour
and the attitude of the employees. For making an effective talent management system the entire
organisation need to be made part of the system as with this the employees can be made
comfortable with the workplace environment and the changes which take place in the
organisation such as transformational changes etc. As such changes can lead to change in the role
and responsibilities of the employees which can leads to resistance and thus this can be managed
by talent management system.
SECTION B- Organisation Motivation
a) Gig economy in terms of work and organisation along with their positive and negative effects
The gig economy is a market system in which most of the worker are part time workers
or are at the temporary position. This makes the economy flexible for the companies to hire the
independent contractors and the freelancers rather than providing full time employment. Such an
economy is beneficial for both the worker and the organisation as it helps them t cope up with
the trends prevailing in the economy (Stefano, 2015). The positive impacts of the gig economy
are:
 Due to emerging sense of becoming independent among the millennials the gig economy
is boosted and this creates an opportunity for the organisations to use a wide variety of
skills and talent.
 For the businesses this is advantageous as they can recruit people on part time basis and
as freelancers online. With them they can get their work done which reduces their cost.
 Large scale employment opportunities are generated as the people work as freelancer
through online platform which attract more of the organisation in the gig economy.
The negative effect of the gig economy is:
 Various compliances and the issues need to be managed and fulfilled which makes the
execution of the activities complex.

 For an gig worker the contractual rights and the legal definitions vary from country to
country due to which the controversies and legal tussles are faced by both the employees
and the organisation.
 Also there are lesser opportunities for training and development of the employees as they
are not made available with much of the resources.
b) Motivational theories and their implication in the organisation
The leaders and the managers in the organisations play crucial role in motivating the
employees for which they consider various theories such as:
 Maslow's Need Hierarchy theory: With the help of the Maslow need hierarchy theory
the needs of the human can be identified which are arranged in a hierarchical manner
from the lower level needs to the higher order needs of the employees.
Illustration 1: Maslow's Need Hierarchy
This theory suggests that if one need is satisfied then it no longer motivates the person
due to which the higher order need is to be focussed. This helps the managers and the leaders can
determine the needs of the employees and accordingly they can be satisfied.
 Vrooms's Expectancy Theory: This theory is considered to be cognitive theory of
motivation which is based on the notion that if the employees will put more efforts then
it will improve their performance and this will further help them to get the rewards. With
the help of this theory of motivation the leaders and the managers make their employees
believes that the with more and more efforts, performances can be improved and with
which the rewards are linked (Ryan and Deci, 2017).

Illustration 2: Vrooms's Expectancy Model of
Motivation
SECTION C- Economics and supply chain
a) Issues which macro and micro economics deals with
An economy is concerned with managing the well being of all. For this the economy is
been divided as micro and macro. The macro economy considers the entire economy as a whole
due to which it focusses upon various issues such as employment and unemployment, inflation,
trade cycle, growth of the economy and many more. All such issues have to be managed
effectively as they have impact on the stability of the economy which can affect the trade
practices. While a micro economy is concerned with an individual in which the actions of the
workers, businesses and the household are considered (Franco, 2017). Various issues which are
related with the micro economics are problem of externalities, inequality, problem of monopoly
etc.
The globalisation is related with the determinants of the micro and macro economics as
on the basis of these factors various trade agreements are entered into by the organisation at
international level. The problems which are faced by the economy becomes the barriers for trade
which may have influence on the operations such as the situation of the inflation may have affect
the agreement of supply of the raw material which can affect the international business (Giglio,
Kelly and Pruitt, 2016).
b) Concept of value chain and integrated supply chain
Value chain is a continuous process by which the company operates there product in
order to deliver their product in the market. It is a set of collective activities that is perform by
the company in order to increase the value of company and gain the competitive advantage.
These activities include development of product, transformation of raw material, delivery of
product to customer and last the disposal of that product that all include in Value chain. Whereas,

Integrated supply chain defines the planning of business to lead the supply chain management.
The business handles the relationship between the suppliers, and manages all the logistics
activities in a wholesale and retail business. The main prospect of supply chain management is to
apply all the optimization technique in order to effective supply of chain management (Roberts,
Kayande and Stremersch, 2019).
Yes, value chain and integrated supply chain effects the international business as value
chain includes the business management and supply chain includes the operation management.
Supply chain refers the transfer of product from one place to another while value chain refers to
includes the value of product. That helps the business to enter in the new market, and measure
the growth of the business and excess new technologies in the international business as it
includes manufacturing, transportation, delivery of products, logistic management, suppliers all
the activities that is performed in a continuous manner (Copacino, 2019).
SECTION D- Business ethics and corporate governance
a) Meaning of business ethics and corporate social responsibility
Business ethics: It is a analysis of policies, rules and regulation of the company in regard
of controversial subjects. It ensures the relation and trust between the customer and the several
market participants. It spread the awareness about consumer-based society about environmental,
social and corporate responsibility. It also focuses on the different factors by which company
gain the profit by market competition and on legal basis as well.
Corporate social responsibility: It is model that defines the self-regulation of business
that socialise the company in public. It is also known as corporate citizenship, that operate in a
particular manner that enhance the society and environment in a positive way. This can boost the
morale of employee and increase the productivity. There are some benefit of CSR are as reduce
the carbon footprint to change the climate, build positive reputation in the market, enhance
customer loyalty that increase the sales (Yermack, 2017).
Factor effect people ethics at work: There are some factors that effects the employee at
work these are skills, knowledge, values, motivation, etc. These are the factor that directly affect
the mindset of the employee as it is the needed factors of each individual in the company and that
directly affects the performance of the employee. It is important that the company operate
themselves in order to create social responsibility and for that company performs several

activities like focus more on healthy environment by reducing the carbon footprint, Use the
product that is good for the people's health, Donate some amount of profit for the people and
environment welfare. So this is some activities under which CSR is conducted.
b) Shift in focus to the stakeholders and of shareholders to the multinational enterprises
The focus of the businesses has shifted from shareholders towards stakeholders as the
shareholders focusses only upon the short term profits of the company while the stakeholders
considers the overall growth of the organisation considering the interest of all the people
associated with the business. For the businesses to be successful in today's working environment
it is important to create a holistic view of the business and to determine its impact rather than
focusing only upon the financial metrics. This will help them in analysing the opportunities
prevailing in the international market and satisfying all the parties associated with the business.
With the changing perspectives of the businesses at international level the companies need to
shift their focus as the stakeholders have comparatively large scope and intensity in comparison
to the shareholders. This helps them to meet up with the legal, regulatory and social
responsibilities effectively.
With the shift in the focus on the shareholders and the corporate social responsibility the
activities of the multinational organisation changes as the regulatory requirement towards the
CSR and the shareholders vary from nation to nation. The changes in the activities could be in
terms of the way of doing business, the legal and ethical responsibilities towards the society and
the investors whose funds are invested. As per the requirement of various governing acts, the
companies need to follow the implications such as in terms of dividends, creations of reserves,
contribution to the society by way of CSR. All these have direct impact on the operations of the
multinational companies.
SECTION E- Business Information system, accounting regulation and
taxation
a) Management information system
Management information system is a system which comprises of hardware and
software. It has become the backbone of the operations of the businesses as they contain all the
information which are required by them. MIS gathers the data and the information from various
online sources which are then analysed. On the basis of this reports are formulated which helps

the management of the companies in decision making. The types of decision in which MIS
supports includes, the programmed decisions which are related with the repetitive problems and
non-programmed decision whose occurrence depends upon the happening of any event ( Laudon
and Laudon, 2015). Also Management information system helps in taking tactical and
operational decisions as they contains all the data about the routine actions such as the
procurement of the resources orders which are placed by the customers etc.
For designing an effective management information system, various principles need to be
considered by the organisation so that the decisions which are taken by them are also effective.
The principle that are to be considered for designing and effective MIS are:
 the output of MIS must be current so that the decision which are to be taken can be taken
effectively from the reports so formulated.
 the information and the data must be factual as the MIS provides the guidelines and the
operating procedure which helps the organisation to deals with the vendors, clients etc.
 as the technology is getting advanced day by day so it need to be computerised and must
get updated time to time.
 For the effective internal control of the organisation the flow of information is crucial
which is supported by the MIS so the data which is to be included must be valid so that
the operations are effective.
b) Concept of GAAP
GAAP stands for generally accepted accounting principles, which includes all the
commonly used accounting principles and various standards used for financial reporting. These
are generally used in the United States which helps their accountants in compiling the financial
statements. It helps in providing the clarity, comparability and the consistency in the
communication of various financial information ( Kraft, 2015).
With the help of various regulations and the set of rules imposed by the authority the
financial accounting and the reporting can be regulated. In addition to this various rules are
developed by the individual authoritative body which governs the formation and the preparation
of various financial statements. The guidelines and the procedures are provided which the
companies has to follow, this helps the investors and other stakeholders to analyse the statements
effectively as all the statements have the same format.

Corporation tax is the tax which is imposed on the corporate on their income by the
jurisdiction. The quantum of the taxes varies from country to country which can affect the
performance o0f the business as they have to pay them out of their revenues. Such taxes are
imposed on the income earned by the corporations. The organisations are taxed on the basis of
different slabs which are decided by the regulatory bodies. Such funds are used by the
government for various purposes that are related with the welfare of the society.
Question A
Explanation of various terms
a) Incoterms: These are the predefined terms for the trade which are published by the
International chamber of Commerce. Such terms helps in guiding the procurement of the
materials at international level or commercial transactions. Such rules are accepted by the legal
authorities, legal practitioners and government as they establish fair rules that guide the
transaction.
b) Tariffs and Bonded Warehouses: These warehouses are the buildings which are used to
store the dutiable goods and even from this the goods are taken for the manufacturing. Such
warehouses are managed by the organisations governed by the state or by the private
organisation. As and when the goods enter into these warehouses the importer of the goods and
the proprietor enters into bond which incurs liability for them.
c) Barriers to entry: The barriers to entry are the economic barriers which are imposed by the
government of any country with the aim of protecting the interest of the in house producers and
the existing businesses. Example of such barriers is special taxes, requirement of the licenses,
regulatory clearance and many more. Many times these barriers can be natural for example, to
set up plant oil drilling the start-up cost can be the barrier for entry (Johnson, 2015).
Question B
Strategic Marketing Issues Involved in international trade and SWOT of international marketing
When organisations plans to expand their business cross borders they need to consider
various strategic issues related to the marketing. Some of the common issues which are faced by
them include the formation of strategy related to the brand and its promotion. The issues can be
whether to enter the market with single brand or with multi brand and accordingly strategies
need to be decided. Further the decision regarding to enter into the international market with the

existing product or with a new one is also a strategic issue. Another issue which affects the
marketing strategy at international level is competition. Due to changes in the policies of the
competitors the marketing strategies need to be revised and because of this the channel strategy
may get affected. The distribution strategy and the position strategy can also get affected for
example, with changes in the economic condition the suppliers may increase the prices and the
overall prices can increase which can affect the international trade. All this affects the marketing
planning in which various decisions related to the prices, product, place and promotion are also
affected. With the help of SWOT analysis the organisations can determine their strengths and
capabilities with the help of which they can grab the opportunities available in the international
market by effectively managing their weakness. This help in analysing the need of the resources
and the competence which they have to develop in the organisation so that they can effectively
meet up with the challenges so faced by them at international level.
Question C
a) Direct and Indirect Export and market entry strategies
Direct exports are the activity which is undertaken by the manufacturer himself. As the
goods are manufactured, packed, promoted by them only so they enjoy the full control on the
exporting of the goods. While the in indirect exporting an intermediate or any agency is being
hired who facilitates the export. In this the entire control related with the exporting rests with the
intermediaries.
Market entry strategy is the planned strategy for the distribution and delivery of various
products and services to the new target market. Such strategy is considered in case of import and
export of the goods and services and they are generally referred to creation and management of
the contracts in any foreign country. Various factors need to be considered while planning for
these strategy such as price localisation, trade barriers etc. as they have impact on the viability of
the entry.
b) Role of Freight Forwarder and carrier's liability
A freight forwarder is a person who acts as agents for the exporter or the importer and
performs the tasks which has been instructed to them. Their role is to get the services from the
other parties which are engaged in the process such as for packaging, handling, storing the goods
and services etc. also they manage the custom clearance of the goods.

When the goods are imported or exported through the ocean or by air, the carrier are held
liable for all the damages, delays in the delivery, loss of cargo. But they cannot be held liable in
case of the loss arising naturally. The air carrier are made liable only if they are under the
Warsaw convention and the ocean carrier in case they are under Hauge Convention.