Can someone do my Week 5 Discussion plus comments in Strategic Planning for Organizations?

Week 5 Discussion

Adam Levine

YesterdayMay 26 at 4:03am

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Define and discuss the differences between an international corporation and a global corporation

An international corporation is one that develops its product in one country but exports it to another. International corporations are companies that operate in their own country but use foreign distributors or representatives that live and operate in another country to sell their products (Abraham, 2012). A global corporation operates across national boundaries and is organized to meet the needs of numerous countries at the same time. There are two very distinct differences between an international and global corporation. The first difference is that a global corporation has a centralized strategy for all the countries it operates in and produces a standardized product while an international corporation will change its products depending on the country they are selling to (Abraham, 2012). The second difference is that global corporations can operate and manage their business from anywhere which includes purchasing land, manufacturing, and research while an international corporation is limited to their own country (Abraham, 2012).  

Choose two international strategies, define each strategy, then compare and contrast each. Discuss why organizations may choose one strategy over another and the type of industry that is best suited to the strategy.

A joint venture is an example of an international strategy that brings two companies together to form a new entity that is owned by both parties such as Starbucks move into China by forming a joint venture with President’s Coffee (Abraham, 2012). This strategy allows one company to enter a foreign market by leveraging the experience and expertise of another without having to start over from scratch, learn all the rules and regulations of the country, and benefits both companies. This is unlike the acquisition strategy where one company purchases another. The electronics industry which makes standardized and universal products like semiconductors is a great example of a company that could use the acquisition strategy because the materials and products are the same regardless of country.  The acquisition strategy has unique advantages that the joint venture does not such as enhancing the economy of scale when products are similar, allows for easier protection of intellectual property, and is the fastest way to expand internationally (Abraham, 2012). These strategies present two distinct methods for expansion into foreign markets, one which brings two companies together to work towards a common goal and another where one company buys out the other and replaces it in the foreign marketplace. Choosing the best strategy is all about strategic fit which defines how much corporate control the company wants and market factors that will determine whether or acquiring a company or working with them to start a new business makes the most sense (Shao, 2008).

Consider how ethical values and corporate social responsibility (CSR) might challenge the strategic process and the planned outcomes.

Ethics and CSR challenge the strategic process and planned outcomes because when a company sees their planned outcomes of a certain profit are not met, they are likely to find ways to get there. No company wants to fail and not meet planned expectations and when backed into a corner many will break moral and ethical rules to make more money. Following the rules and regulations of different countries is challenging and can restrict profits and growth.

What are the prime ethical considerations for each of the chosen international strategies, and what type of strategic plan must accompany the international strategy to meet the ethical and CSR expectations?

The joint venture must consider the sharing of financial risks when the local company may have a better understanding of laws and how to go around them to take advantage of the partnership (Alliance for Integrity, n.d.). The joint venture can create abuses in power and issues arising from the use of corporate resources depending on how they are allocated in the joint venture. The acquisition strategy creates a large ethical issue related to human resources. When a company acquires another, they must determine what will happen with all the new employees. Will they downsize and lay off workers who rely on the income to survive? These ethical issues must be considered during the strategic planning process. This will help to ensure the company behaves in the most ethical manner possible even if they have to make hard choices about layoffs and the allocation of resources.  

Adam

References:

Abraham, S. (2012). Strategic Management for Organizations. Bridgepoint Education.  https://content.ashford.edu/ (Links to an external site.)

Joint Ventures. (n.d.). https://www.allianceforintegrity.org/en/offer/Business-Risks/Joint-ventures.php.

Shao, G. (2008, February 5). Acquisitions vs. Joint Ventures: The Internet Expansion Strategy of U.S. Media Companies. https://www.globalmediajournal.com/open-access/acquisitions-vs-joint-ventures-the-internet-expansion-strategy-of-us-media-companies.php?aid=35181.