Leading and Managing in Global Environment: A Comprehensive Report

This report delves into the multifaceted challenges of leading and managing within a global environment. It examines key concepts such as financialisation, ethics, and global economic analysis, emphasizing their importance for organizational sustainability. The report analyzes several articles, including those discussing financial market dynamics, the impact of financialisation on management and employment, and the role of central bank policies. It also explores the innovative strategies of BRIC nations and the financial performance of companies like Apple and Unilever, highlighting their approaches to ethical considerations and long-term business models. The analysis draws upon examples from various industries and provides a comprehensive understanding of the critical factors influencing leadership and management in today's interconnected world, contributing valuable insights into how businesses can navigate and thrive in the global arena. The report also references the ethical practices of Hasbro Inc., underscoring the significance of ethical considerations in modern business operations.

Leading and Managing in
Global Environment

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
Question 1....................................................................................................................................1
Topic 1.........................................................................................................................................1
Article 1...................................................................................................................................1
Article 2...................................................................................................................................2
Topic 3.........................................................................................................................................3
Article 1...................................................................................................................................3
Article 2...................................................................................................................................4
Topic 5.........................................................................................................................................4
Article 1...................................................................................................................................4
Article 2...................................................................................................................................5
Topic 7.........................................................................................................................................5
Article 1...................................................................................................................................5
Article 2...................................................................................................................................6
Question 2....................................................................................................................................7
REFERNCES.................................................................................................................................10

INTRODUCTION
In present dynamic era, every organisation makes redundant efforts in order to retain the
top position in the marketplace. Leading and managing organisation in global context is
considered to be challenging and crucial task for management. Aspects such as ethics, financial
management, global economic analysis needs to be considered by the management in order to
sustain in global environment. In the present report, an analysis of different articles covering
these aspects will be made in order to enhance the comprehensive understanding. By analysing
different articles related with business and ethics, a critical analysis will be made by referring to
Hasbro Inc. in order to understand the necessity of ethics in contemporary business world. It is a
toy company which headquartered in Pawtucket, Rhode Island, United States. Hasbro is one of
the largest toy manufacturing company in the world and recently awarded as most ethical
company award for 5 years.
MAIN BODY
Question 1
Topic 1
Article 1
Key arguments
Within the General Introduction: Fianacialisation, coupon pool and conjuncture writer
included that financialisation is that concept that covers both its financial implications and
relevant theories linked with global and domestic economy (Batt and Appelbaum, 2013). Under
this module there was arguments made on financial logic that if anyone in countries like that of
USA, Australia and UK want to enjoy their comfortable life after retirement then they must be
saving part of their income. All countries will be having different in their ownership of home
with that of provision of pension which will also be matter of argument based on exceptions and
national peculiarities as well. This word Financialisation was originated in 1990 by Kevin
Phillips who used this term by discriminating between insecurities in USA and new social
division.
Other than these there was also arguments which was based on different concept that of
liberal collectivism of 1930 and agency theory of 1980. This particular line was based on coupon
pool will be having 4 sections and they are focusing on various factors two of them stated above
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rest are like political economist from 1990 and culture economist of 2000. These all four sections
will be having their approach towards mixes of methods and they are also contributing with
durable proposition that includes both merits and arguments. Liberal collectivist arguments
which were of Keynes in 1936 were very much correct as they supported fluctuations of asset
price in boom.
Findings
Under this module there was certain, number of key findings or outcome which was
made like those which provided size of financial markets within household section that too in
relation with real economy. It was found out that there was increase in globalisation, financial
market liberalisation, financial service deregulation and advancement in technology as well. As it
was including that financialisation is the global context which is based on macroeconomic level
like that of:
 Increasing size of household balance sheet which is placing this sector into economic
welfare terms is due to real estate price and financial assets as well.
 There is also increasing size of credit and capital markets which is in financial and real
economy.
Then it was also concluded that financialisation will be one of the most important and
universally accepted effect that is based on prosperity of economy. This phenomenon will be
majorly based on management within big and corporate organisations since the time of 2000 and
then analysing on capital market.
Article 2
Key arguments
Then in another article which is based on The Impact of Financialisation on Management
and Employment Outcome written in 2013 by Batt Rosemary and Eileen Appelbaum (Batt and
Appelbaum, 2013). Under this model discussion was made on how USA companies become
more powerful due to its institutional changes and deregulation. With the effect of
financialisation on both large corporate organisation and those which are taken by private
companies so the area of study was of employment relations and management. So the key
arguments were based on impact if financialisation on management and employment relations
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outcome as well. The main focus of scholars was on labour and product market then variation on
strategies of management outcome.
The key arguments included within this paper was based on certain questions like that of
emergence of financial models within the last three decades; explaining forms of financial
capitalism becoming more important on contemporary world; and factors affecting financial
intermediaries with strategies laid down in non-financial corporation in employment and
management. Then the decline of managerial capitalism will be depending upon stability of
market under securities law and they also have limited speculative behaviour. So this argument
did not include business model into corporation that will be sharing labour and managers within
the conflicts.
Under this model there is also competitive advantage theory that was based on providing
rational based on restricting of organisation according to their target of maximising value of
shareholders. But it also include that firms must be concentrating onto their competencies so this
was an argument based on maximizing interest of shareholders.
Findings
Most of the studies were having same conclusion like this one like pension investment
made were having less amount of returns with respect to other funds like that of real estate. It
was concluded that there is need of regulatory reforms in issues linked to financialisation which
is related to management and employment as well. There was comparison made on private
equity and largely held public subsidiaries which tells that there is different between hedge
funds.
Topic 3
Article 1
Key arguments
The article is based on Dreaming with BRIC’s: Innovating the classificatory regimes of
international finance which is written by Leon Wansleben in 2012 (Ponomarev, 2008). As this
BRIC’s was invented by Goldman Sachs with 5 of the largest emerging economies including
Brazil, Russia, India and China. The main argument based on this article is concept of innovation
within the financial regime including that of cultural constructs. So there are other arguments
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based on this which includes selection of these emerging countries and using of long term
projected growth.
Findings
Within this article there are discussion based on BRIC’s so here economist included
various elements of contemporary society. This particular article concluded that whole set of
cultural strategies are linked with analysis to the structure of investment world and development.
This also showed effect of innovation could not be explained giving intentions of innovator
(Ponomarev, 2008). One of the most emerging innovators in this context was BRIC’s which
provided long term investment and opportunities in business with increase in population.
Article 2
Key arguments
Then in another reading which is based on Story Stock tell tall tales by James Mackintosh
in 2014. The main arguments within in article is based on Wall Street as there are about 33
stocks within S&P 500 valuations that is relaying on financial these all shared will be trading on
more than 10 times above book value and sales of above 20 times (Armstrong, Piercey and
Greene-Hunley, 2015). Other arguments will be based on future of retailing as Biotech is having
fast track regulation and for proper outcomes as well.
Findings
So the findings will be based on that each of the stock that is exposed to the twists of
exposed so this stock is facing threat to strong economy and would be easier in finding to lowest
price (Armstrong, Piercey and Greene-Hunley, 2015).
Topic 5
Article 1
Key arguments
This particular article is based on Central Bank: Negative thinking. Under this included
various negative impact of interest rate so that banks of economies like that of Denmark, Sweden
and Switzerland could be fighting with deflationary forces (Sims, 2016). So the central bank of
Sweden Riksbank was amongst the first bank to experiment with NIRP which was having
negative impact of 0.25% in 2009.
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Findings
This article concluded that Swiss bank imposed most of the charges on depositories but
the general retail bank was having negative impact of interest rates (Sims, 2016). It was also
explained that more the quarter of participants included that they are taking their money out of
saving bank account at time when interest rate were negative.
Article 2
Key arguments
This second article is based on Post Crisis Central bank unconventional policies and
financialised transmission channels (Ertürk, 2016). The argument were made that unemployment
targets are been completely achieved but there is still some serious threats about the quality of
employment or job that is created in this labour markets.
Findings
So it was concluded that there is monetary flow within markets of asset pricing so that
they could deliver proper job and growth opportunities. As it was assumption which was made
that central bank which is delivering easing into policy of implementation. In this criticism was
made on ECB’s view on large scale purchase and data of small channels within USA as there
was no success in outcome allocation (Ertürk, 2016). There are too much lessons to be learnt by
citizen of Eurozone like that of purchasing larger scale assets. There are many large scale article
which are on growing impact of financialised and non-financial behaviour of firms. It was also
included that Mergers and Acquisitions are not generating more number of investment within
creation of job rather they are having negative or opposite reaction.
Topic 7
Article 1
Key arguments
Article based on Business, Society and the future of capitalism by Chief executive of
Unilever Paul Polman written on 2014 is based on why company must make its efforts in
including changes within (Polman, 2014). Argument was made on benefits of long term thinking
which is to remove increased number of problems from organisation. Then the new business
model will be based on development goal of millennium and it is having opportunities in
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eradicating poverty within world. The capitalism is that impact which is helping in expanding
access to health and education so that public and private debts are decreased. Unilever is having
its efforts in making 10 year plan which will be only focus on increasing value to shareholders.
There are also including the short and long term strategic actions which are taken by Unilever
which is helping tov as motivation for their employees. As they are not paying same amount of
salary to their employees as their sector is giving but then also their employees are motivated and
engaged with company.
Findings
The findings were made includes that there is long term model of growth which is not
performing in better way within short term. Like the target will be of creating 5 million new jobs
but it was not achieved (Polman, 2014). This is helping employees to get more motivated with
their financial planning and people are also feeling proud to work with company.
Article 2
Key arguments
The article based on The Financialisation of Apple that was written in 2015. This paper
talk about illustration of the MNC that are making more number of progress so that they could
realise good amount of profits that could be apart from reinvestment made on real economy. This
includes the business model of Apple which is the biggest MNC which is concerning to strategy
and the financial performance of company (The financialisation of Apple, 2017). It is also argued
that return on equity of Apple is one of the most impacting indicator to value their shareholders
and the operating margin is highest as compared to its industry as whole.
Figure 1: Apple’s financial performance
[Sources: The financialisation of Apple, 2017]
Findings
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There was certain findings and conclusions which were made including Apple is having
its more unique and strong developments that are made. as there are number of global workers
who are working within this company who all collectively are making company productive and
profitability as well (The financialisation of Apple, 2017). The key results of this were that of
Apple is having too many reserves that is having company increasing its financial market. It was
concluded that company must be using evaluation of their long term impact within its business
model so that they could having more focus on creation of wealth for shareholders.
Question 2
Business ethics and governance are the provisions established by the organisation in
order to carry out the business activities in effective, harmonious and peaceful manner. These are
the business policies and practices which prevents organisation to engage in controversial issues
like discrimination, bribery, malpractices, etc. In order to sustain in the competitive global
environment, it is essential for the organisation to carry out their business operations in effective
and efficient manner. According to Rhodes (2016), in order to facilitate the expansion of
corporate sovereignty it is essential for the management to follow corporate business ethics in the
global business context. Author critically analysed the case of Volkswagen emission scandal in
2015 where the company was alleged for using unethical practices in order to operate in United
States and other European Countries.
He further stated that the Volkswagen Scandal demonstrates how organisational practices
of corporate business ethics are no longer hurdle to large scale conspiracies which include fraud,
lawlessness, lying and cheating. In the case, researcher found that community which represented
by institutions and individual shows reluctance to such organisational misconducts. In present
era, organisations are expected to 'involve in different types of responsible behaviour' and also
'corporations are proclaiming the virtues of their ethicality on a scale never before seen.' Hasbro
one of the largest toy manufacturing company incorporated in United States is committed to
follow robust ethical practices within the corporate framework in order to maintain the brand
reputation of the firm. With its strong corporate ethical practice and culture, the organisation is
honoured as World's Most Ethical Companies for the fifth consecutive years (Hasbro Named as
a 2016 World's Most Ethical Company by the Ethisphere Institute for Fifth Consecutive Year.
2017). Hasbro corporate governance is strong and committed to conduct corporate social
responsibility in order to enhance sustainability within environment.
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Business and ethics are interdependent with each other as in order to enhance the
effectiveness and brand reputation of the organisation it is essential for the company to work
ethically. According to the report proposed by McKinsey Global Institute stated that since the
global financial crisis of 2008, it becomes difficult for the companies to retain the same position
or increase the revenue due to higher inflation rates and shifts in labour market. People tend to
purchase less and save more in order to sustain in the recession. In the research, researcher
founds that 65 to 70 per cent of income segments in advance economies experienced flat of
falling market incomes in 2005 to 2014 (Dobbs, R. and et.al., 2016). This article shows detail
understanding about the shifts in economic position of young generation as compared to their
parents. Due to rapid transformation in the current business practices and globalisation, the taste
and preferences of younger generation has been changed dramatically. In the article researchers
explicitly mentioned that younger generation tends to spends more money rather than saving. In
order to attract and retain the customers towards the organisation, the management of Hasbro
focuses on the quality of products and services and also ensures that safe and harmless products
are offered to the customers.
This is considered to be good ethical practice which followed by the company. “The
democratization of finance? Promises, outcomes and conditions” proposed by Erturk and et.al.,
(2007) analyses the democratization of finance or the promises that all households can make
money or manage risk by purchasing precise financial service products. This article shows
significant information by investigating the rationale for disagreements between what is
promised and what is delivered. Authors found that in context of United Kingdom and United
States these conditions are not met due to ambiguous policies, lack of calculative competence of
individuals and opaqueness of products. The article explicitly explained the importance of ethical
practices which are meant to be followed by the business organisations in order to sustain in the
marketplace. In present competitive and diverse business scenario big brands like Hasbro must
focus on their commitments they gave it to their customers and provides them the products
which they have promised. The organisation is known for its quality products and services which
the management promise to deliver in the market (Corporate Social Responsibility, 2017). It is
the duty and responsibility of organisation to provide quality products to the customers in order
to retain in the global business environment.
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Hasbro in its corporate social responsibility has clearly stated that the organisation
operates with high ethical standards and with robust Code of Conduct which keeps the company
responsible to stakeholders and keeps them aligned with their core business objectives and
values. In present competitive environment it now becomes difficult for the management of
business organisations to sustain and survive effectively. Those organisations who have robust
governance policies and structure and work ethically can only sustain in the global environment
efficiently. Thus, it can be understood from the above analysis that Hasbro works ethically and
made diligent efforts to enhance its corporate governance structure in order to remain at the apex
position. The management is committed to lead with integrity and carry out corporate social
responsibility initiatives in order to increase its brand image and reputation. The findings
obtained from the articles are significant for the present study as they provide explicit
information regarding the ethical conducts which are mandatory to be followed by the
organisation.
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REFERNCES
Books and Journals:
Armstrong, M.H., Piercey, V.I. and Greene-Hunley, S., 2015. A tale of two stock
markets. Mathematics Teaching in the Middle School. 20(9). pp.522-530.
Batt, R. and Appelbaum, E., 2013. The impact of financialization on management and
employment outcomes.
Dobbs, R. and et.al., 2016. Poorer than their parents? A new perspective on income
inequality. McKinsey Global Institute, 7.
Erturk, I. and et.al., 2007. The democratization of finance? Promises, outcomes and
conditions. Review of International Political Economy. 14(4). pp.553-575.
Ertürk, I., 2016. Post-‐crisis central bank unconventional policies and financialised transmission
channels.
Erturk, I., Froud, J., Johal, S., Leaver, A. and Williams, K., 2008. General introduction:
Financialization, coupon pool and conjuncture. Financialisation at work. pp.1-44.
Polman, P., 2014. Business, society, and the future of capitalism. McKindsey, May.
Ponomarev, D., 2008. Dreaming with BRICs. In Building a Future with BRICs (pp. 87-102).
Springer, Berlin, Heidelberg.
Rhodes, C., 2016. Democratic business ethics: Volkswagen’s emissions scandal and the
disruption of corporate sovereignty. Organization Studies. 37(10). pp.1501-1518.
Sims, C.A., 2016, August. Fiscal policy, monetary policy and central bank independence.
In Kansas Citi Fed Jackson Hole Conference.
Online
Corporate Social Responsibility. 2017. [Online]. Available through:<https://csr.hasbro.com/en-
us/governance/our-approach>
Hasbro Named as a 2016 World's Most Ethical Company by the Ethisphere Institute for Fifth
Consecutive Year. 2017. [Online]. Available
through:<https://www.businesswire.com/news/home/20160307006274/en/Hasbro-Named-
2016-Worlds-Ethical-Company-Ethisphere>
The financialisation of Apple. 2017. [Online]. Available through: <https://www.somo.nl/wp-
content/uploads/2015/10/Rich-corporations-poor-societies.pdf >.
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