BUS FP4016 Capella University Currency Exchange Discussion

• Competency 1: Analyze cultural communications that affect international business.
  • Describe the cross-cultural communication issues that could result from differences in the social, political, and legal structures and hierarchies of a foreign country and those of the United States.
• Competency 2: Evaluate patterns of global organizational structure and hierarchies.
  • Describe the social, political, and legal structures and hierarchies of a country relevant to market expansion.
  • Compare the social, political, and legal structures and hierarchies of a country to those of the United States.
• Competency 3: Analyze the role of international business culture in the negotiation process.
  • Propose a company management structure suitable for business operations abroad, based on the business culture of the host country.
• Competency 4: Assess the feasibility of business operation in other countries.
  • Assess market potential, considering the market situations of 2–3 competitors.
  • Determine the price for a product in a competitive market.
  • Propose an international business strategy for launching and promoting a product.
  • Identify the key fiscal considerations that might affect profitability.
  • Evaluate potential barriers to entry into a foreign market.
  • Describe the key considerations for conducting production operations abroad.

Competency Map

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Context

On a daily basis, there are articles in the major business publications (for example, the Wall Street Journal) about global production and logistics, and there is a wide range of orientations for those articles. Some will describe companies that have established highly efficient and successful global production and logistics capabilities. Other articles might describe issues (sometimes major issues) businesses face in this context, such as due to the government of one country nationalizing a corporation, or due to some other major country-specific issue (for example, a government being overthrown). Such events can obviously have tremendous impact on businesses with global operations, including potentially shutting down major portions of the company’s production and logistics.SHOW LESSAs but one of many simpler (but significant none-the-less) examples of how global production and logistics can impact a company, there were numerous business media articles in the fall of 2012 about how Apple was experiencing product shortages associated with its otherwise successful iPhone 5 launch. One such shortage was alleged to be due to Apple switching suppliers (within Asia) and the new supplier not being able to meet Apple’s demand (Campbell, 2012).But despite the controversies and challenges, a large number of medium and large companies continue to pursue global production and logistics because of the significant potential benefits. Companies and their customers can benefit from the expertise of other organizations in other parts of the world. There can be government policy benefits as well. There are countries that prohibit selling products within their geographical boundaries unless the product is in some way manufactured or assembled there. BlackBerry has addressed that in certain countries by establishing assembly operations within those countries as part of their global production and logistics, thus enabling them to sell their products in more countries.

Reference

Campbell, M. (2012, September 24). Apple’s lightning connector shortage blamed in supplier change, poor production yield rates. Retrieved from http://appleinsider.com/articles/12/09/24/apples_l…